Document:

Exhibit 10.32

Development Agreement No. 618493

  Atlanta, Georgia

FRANCHISE DEVELOPMENT AGREEMENT

          THIS
FRANCHISE DEVELOPMENT AGREEMENT (“Agreement”)
is made and entered into this ___ day of August, 2006, by and between EL POLLO LOCO, INC., 
a Delaware corporation, with its
principal place of business at 3333 Michelson Drive, Suite 550, Irvine,
California 92612 (referred to herein as “El
Pollo Loco” or “Franchisor”)
and Fiesta Brands, Inc., with its principal place of business at
_____________________________________, Atlanta, Georgia ______ (“Developer”).  

RECITALS

A. Franchisor owns certain proprietary and other property rights and
interests in and to the “El Pollo Loco” trademark and service mark, and such
other trademarks, service marks, logo types, insignias, trade dress designs and
commercial symbols as Franchisor may from time to time authorize or direct
Developer to use in connection with the operation of an “El Pollo Loco”
Restaurant (the “El Pollo Loco® Marks”).  Franchisor has a distinctive plan for the
operation of retail outlets for the sale of flame-broiled food items and
related products, which plan includes but is not limited to the El Pollo Loco®
Marks and the Operations Manual (the “Manual”),
policies, standards, procedures, employee uniforms, signs, menu boards and
related items, and the reputation and goodwill of the El Pollo Loco® chain of
restaurants (collectively, the “El Pollo
Loco® System”).

B. Developer represents that it is experienced in and has independent
knowledge of the nature and specifics of the restaurant business.  Developer represents that in entering into
this Agreement it has relied solely on its personal knowledge and has not
relied on any representations of Franchisor or any of its officers, directors,
employees or agents, except those representations contained in any legally required
disclosure document delivered to Developer.

C. Developer desires to obtain development rights from Franchisor
within a specified geographical area (the “Territory”)
specified in  Exhibit “A” attached hereto and made a part hereof.

D. Franchisor is willing to grant the exclusive right to develop and
open El Pollo Loco® restaurants within the Territory referenced in Exhibit
“A.”  

NOW, THEREFORE, in consideration of the mutual covenants and
obligations herein contained, the parties hereto agree as follows: 

1.  Development Rights in Territory. 

1.1 Franchisor hereby grants to
Developer, subject to the terms and conditions of this Agreement and as long as Developer shall not
be in default of this Agreement or any other development, franchise or other agreement
between Developer and Franchisor, exclusive development rights to obtain
franchises to establish and operate

	
 

	
 

	
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twenty-five (25) franchised restaurants, and to use the El Pollo Loco®
System solely in connection therewith, at specific locations to be designated
in separate franchise agreements (the “Franchise
Agreements”).  Developer expressly acknowledges that the exclusive
rights granted herein are subject to Franchisor’s reserved rights in Section
2.6 below, apply only to the right to develop new restaurants in the Territory,
and no exclusive territory or radius protection for the term of any Franchise
Agreement is granted herein.  The Franchise Agreements executed in
accordance with this Agreement for each restaurant to be developed under this
Agreement shall be in the form currently in use by Franchisor at the time of
final RESAC (defined in Section 2.4 below) approval of each specific restaurant
site by Franchisor.  An Amendment to the
Franchise Agreement in the form attached hereto as Exhibit “C” shall be
executed concurrently with each such Franchise Agreement executed hereunder;
provided, however, that the Section references in brackets (“[]”) shall be
amended, as necessary, to refer to the Sections in the then-current forms of
Franchise Agreement to be entered into pursuant to this Agreement.

Provided that Developer is and has at all times been in compliance with
the terms of this Agreement, Developer shall have the option to develop an
additional twenty-five (25) franchised restaurants in the Territory (the “Option”).
The development schedule for the restaurants that are subject to the
Option is set forth in Exhibit “B” hereto.
Developer may exercise the Option by providing Franchisor on or before
December 31, 2009 with: (a) written notice of Developer’s intent to exercise
the Option; and (b) a payment in the amount of Two Hundred Fifty Thousand
Dollars ($250,000) ($10,000 for each restaurant).  The Option will not be considered exercised until Franchisor has
received full payment from Developer therefor.
If and when the Option is exercised, the Development Schedule under this
Agreement shall be deemed to incorporate the additional restaurants subject to
the Option.

1.2 After the third year of this
Agreement, Developer shall be entitled to relocate up to ten percent (10%) of
the restaurants then operated in the Territory (rounded down to the nearest
whole number) and to move those restaurants to a new location, provided: (a)
Developer is and has during the term of this Agreement been in compliance with
the terms of this Agreement; (b) Developer has opened and is operating at least
sixteen (16) franchised restaurants in the Territory; (c) the combined average
sales of all of Developer’s restaurants in the Territory are at or above the
most recently published El Pollo Loco franchise restaurant chain average AUV’s
(as measured by the six (6) month period preceding Developer’s decision to
relocate); and (d) that each restaurant to be relocated is replaced with a new
restaurant that is located in the same trade area within the time period set
forth in this Section.  Each unit that
Developer chooses to relocate in the Territory must have been open and
operating for at least three (3) years prior to Developer’s relocation
decision.  Developer shall give Franchisor
at least six (6) months advance written notice of its intent to exercise this
relocation right, and Developer shall open each relocated restaurant no later
than thirty (30) days after closing the restaurant to be relocated.  All sites for restaurants in the Territory,
whether a new restaurant or a restaurant to be relocated pursuant to this
Section, shall be subject to the RESAC approval process set forth in Section
2.4 below.  Developer shall be entitled to
transfer

	
 

	
 

	
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the franchise fee paid for the original restaurant to the relocated
unit provided the decision to relocate the restaurant occurs prior to the tenth
(10th) anniversary of the date of this Agreement.  

In addition to Developer’s right to relocate a restaurant as described
above, and provided Developer is exceeding its restaurant development
obligations under the Development Schedule (e.g., has opened a greater
number of restaurants at or before the scheduled opening date than is required
under the Development Schedule), Developer shall have the right to request
Franchisor’s consent to close one or more of Developer’s restaurants, which
consent shall not be unreasonably withheld.
Developer shall not have the right to request the closure of a restaurant(s)
if Developer is not in compliance with the Development Schedule, or if the
requested restaurant(s) closures, if such restaurants are closed, would cause
Developer to not be in compliance with the Development Schedule.  Developer shall not be entitled to close any
restaurant in the Territory without the prior written consent of
Franchisor.  If Franchisor grants
Developer the right to close a restaurant (without the intent to relocate that
restaurant pursuant to this Section 1.2), such restaurant closure shall not
diminish Developer’s right in this Section 1.2 to close and relocate up to ten
percent (10%) of the restaurants it operates in the Territory. 

1.3 Prior to or concurrent with the execution of this Agreement,
Developer shall meet with Franchisor’s development representatives and prepare
a market development plan for the units to be constructed and opened by
Developer in the Territory (identifying specific key areas, key intersections
and trade areas in the Territory) and all development pursuant to this
Agreement shall be in accordance with this plan (the “Market Plan”).  The Market Plan shall include proposed radii
of areas where sites
are to located, ranking and prioritization of site locations and other
information customarily used by market planners in the restaurant industry.  Developer and Franchisor shall jointly
approve the Market Plan.

1.4 The parties hereto recognize that demographics, market economics,
real estate values, competition and other conditions may change in the
Territory over the term of this Agreement and that such changes may impact the
Market Plan.  Therefore, the parties
agree that it is in their respective best interests to review the Market Plan
periodically throughout the term of this Agreement.  On the first anniversary of the approval of the initial Market
Plan and at least once annually thereafter, Developer and Franchisor shall
review the Market Plan and make such revisions as are required to maximize the
successful development of the El Pollo Loco® System in the Territory. 

2.0 Limitation on Development Rights.

2.1 Developer must submit sites for approval, enter into binding leases
or purchase agreements and open to the public the number of El Pollo Loco®
restaurants on such approved sites each calendar year as required on the
Development Schedule, all as set forth on Exhibit “B” attached
hereto and made a part
hereof. 

	
 

	
 

	
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2.2 For purposes of the Development Schedule in Exhibit
“B”, no credit will be given for the
development of El Pollo Loco® restaurants outside the Territory, regardless of
the fact that Developer may, upon proper application, obtain from Franchisor an
El Pollo Loco® Franchise Agreement for any such development.  

2.3 Although this Agreement affords the Developer the right to develop
and open El Pollo Loco® restaurants within the Territory, as set forth on Exhibit
“A”, all restaurants developed under
this Agreement must be duly licensed through individual Franchise
Agreements.  Developer will execute El
Pollo Loco’s then standard Franchise Agreement in use at the time of execution
for each restaurant developed under this Agreement, and agrees to pay
Franchisor the current fees, royalties and other required payments in
accordance with the Uniform Franchise Offering Circular then in effect;
provided, however, that the amendment to the Franchise Agreement attached to
this Agreement as Exhibit “C”
shall apply to each Franchise Agreement entered into in connection with this
Agreement.  Execution
of the appropriate Franchise Agreement and amendment, and payment of the
initial franchise fee and/or any other required fees, must be accomplished
prior to the commencement of construction at any site.

2.4
Developer must satisfy all Franchisor’s financial and operational criteria then
in effect prior to El Pollo Loco’s execution of each standard Franchise Agreement
issued pursuant to this Agreement.
Developer shall provide Franchisor with current information pertaining
to Developer’s financial condition and the financial condition of the majority
and managing members/partners/shareholders and affiliates, including Fiesta
Brands, LLC and Fiesta Realty, Inc., of Developer at any time upon El Pollo
Loco’s request and in no event less than once annually.  Developer acknowledges that, among other
things, it will be required to submit annual financial statements of Developer
and its affiliates, including Fiesta Brands, LLC and Fiesta Realty, Inc., and
financial statements of each of its principal owners and Managing Members to be
eligible for financial approval by El Pollo Loco.  Developer shall also provide Franchisor with binding commitments
and evidence of funding from third party lending/financing sources from time to
time as reasonably requested by Franchisor.
In the event any of the majority owners of Developer shall also be the
Managing Members and/or majority owners of any other entity which is a
franchisee of El Pollo Loco, then each such franchisee entity must be
operationally and financially approved by Franchisor before approval for
expansion will be granted to any one franchisee entity.  “Managing
Members” shall be any individuals or officers or directors of
entities who are designated as the primary decision makers or general managers
of the franchisee entity and those individuals or entities who (individually or
collectively) own at least 51% interest in the franchisee entity.

Developer shall use its best efforts to retain qualified real estate
professionals (including licensed brokers) to locate proposed sites for the
restaurants.  Developer shall submit
proposed sites for each franchise restaurant unit to be developed under this
Agreement for acceptance by Franchisor’s Real Estate Site Approval Committee (“RESAC”), together with such site
information as may be reasonably required by Franchisor to evaluate the
proposed site, no later than the dates set forth in Exhibit “B” as RESAC

	
 

	
 

	
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Submittal Dates, the first of which shall be approximately ninety (90)
days after execution of this Agreement.
Franchisor shall, provided there exists no default by Developer under
this Agreement or any other development, franchise or other agreement between
Franchisor and Developer, evaluate each site proposed for which Developer has
provided all necessary evaluation information, and shall promptly after receipt
of Developer’s proposal, send to Developer written notice of acceptance or
non-acceptance of the site. Developer shall thereafter provide Franchisor with
a copy of a fully executed lease or binding purchase agreement (with all
contingencies to Developer’s obligations waived or satisfied, except permitting
contingencies) for each approved site within approximately sixty (60) days
after RESAC Site Approval, but no later than the dates set forth in Exhibit “B”
(“Site Commitment Dates”).  Each lease submitted shall be for a minimum
term which, with renewal options is not less than the initial term of the
Franchise Agreement and shall contain the provisions required in Section 4.2 of
the Franchise Agreement.

Each subsequent site to be developed pursuant to the Development
Schedule shall be submitted for approval by RESAC by the date set forth in
Exhibit “B.”  Similarly, each fully
executed lease or purchase agreement (with all contingencies to Developer’s
obligations waived or satisfied, except permitting contingencies) relating to each
subsequent site shall be delivered to Franchisor on or before the Site
Commitment Date for each respective restaurant as set forth in Exhibit
“B”.  

Franchisor shall send representatives to evaluate proposed site(s) for
each restaurant to be developed under this Agreement, and Franchisor will do so
at its own expense for the first two (2) proposed sites for each
restaurant.  If Franchisee proposes, and
Franchisor evaluates, more than two (2) sites for each restaurant, then
Franchisee shall reimburse Franchisor for the reasonable costs and expenses
incurred by Franchisor’s representatives in connection with the evaluation of
such additional proposed site(s), including, without limitation, the costs of
lodging, travel and meals.  In addition,
as a condition to reviewing a proposed site for the restaurant, and to
determine the impact a proposed site may have on other existing restaurants
operating under the El Pollo Loco® System, Franchisor may require Franchisee to
pay for a market study conducted by a third party of the proposed site and the
surrounding geographic area. Site approval does not assure that a Franchise
Agreement will be executed.  Execution
of the Franchise Agreement is contingent upon Developer purchasing or leasing
the proposed site within sixty (60) days after approval of the site by the
Franchisor.

2.5 Developer acknowledges that time is of the essence in this
Agreement.  If Developer has not
obtained approval and entered into a binding lease or purchase agreement for
each site for restaurants to be developed under this Agreement by the
applicable Site Commitment Date, Developer shall be in default of its
obligations under the Development Schedule and Franchisor shall be entitled to
exercise its rights and remedies under this Agreement, up to and including
termination of this Agreement.  Without
limiting Franchisor’s rights and remedies under this Agreement, should
Developer fail to meet its obligations under the Development Schedule to
deliver a binding lease or purchase agreement to Franchisor for each restaurant
by the Site

	
 

	
 

	
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Commitment Date, Developer may, among other things, and at Franchisor’s
election and upon written notice by Franchisor as set forth in Section 10.3
below, lose its exclusive rights in the Territory.  

Developer also acknowledges that it is required pursuant to this
Agreement to open restaurants in the future pursuant to dates set forth in the
Development Schedule attached as Exhibit “B”.
If Developer fails to meet the opening date for any restaurant to be
developed under this Agreement, Developer shall be in default and Franchisor
shall be entitled to exercise all rights and remedies available to Franchisor
under this Agreement, including the remedies set forth in Section 10.3 below,
and the forfeiture of all Development Fees paid to Franchisor.  Developer acknowledges that if Developer
fails to open restaurants in a timely manner pursuant to the Development
Schedule, Franchisor will suffer lost revenues, including royalties and other
fees which would be difficult to calculate and which would have received had Developer
met the agreed schedule or had Franchisor had the right to grant development
rights to others in the Territory.  A
default under this Agreement for failure to comply with the Development
Schedule shall not be a default under any Franchise Agreement previously
executed between Developer and Franchisor.

Notwithstanding the foregoing, Franchisor
reserves the right, in its sole discretion, to grant Developer an extension of
six (6) months to the Development Schedule for a particular restaurant (a “Development
Schedule Extension”); provided, however, Developer shall be required
to pay Franchisor a fee in the amount of Five Thousand Dollars ($5,000) (the “Development
Schedule Extension Fee”) for each restaurant that is to be granted a
Development Schedule Extension.  The
Development Schedule Extension Fee shall be non-refundable but applicable to
the initial franchise fee for the next restaurant developed pursuant to the
Development Schedule.  Notwithstanding
the foregoing, Franchisor reserves the right to waive the applicable
Development Schedule Extension Fee, in its discretion, upon a showing by
Developer, to Franchisor’s satisfaction, that (i) Developer has used its best
efforts to comply with the Development Schedule; and (ii) Developer has been unable
to comply with the Development Schedule as a result of conditions or events
outside of Developer’s control, including, but not limited to, acts of force
majeure such as strikes, material shortages, fires, floods, earthquakes and
other acts of God.

Developer acknowledges that the estimated initial investment and
estimated expenses set forth in Items 6 and 7 of our Uniform Franchise Offering
Circular are subject to and likely to increase over time, and that future
restaurants will likely involve a greater initial investment and operating
capital requirements than those stated in the UFOC provided to Developer prior
to the execution of this Agreement.  

2.6
Franchisor shall retain the right to:

a) Open and operate El Pollo Loco® restaurants or franchise others to
open and operate El Pollo Loco® restaurants, at all universities, colleges,
airports, hospitals, municipal facilities, public transportation facilities,
shopping malls (not including 

	
 

	
 

	
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outparcels), stadiums, amusement parks and similar locations of a
“non-standard” nature, regardless of location within the Territory;

b) Open and operate or franchise others to open and operate
non-standard El Pollo Loco® restaurants within the Territory under the El Pollo
Loco® System (e.g., within drug stores, supermarkets, department stores, truck
stops, hotel or motel chains, stadiums, etc.); and

c) Open and operate or franchise others to open and operate El Pollo
Loco® restaurants located within the Territory which have been acquired by El
Pollo Loco® on or after the date of this Agreement.

2.7 The
purpose of this Agreement is to promote orderly incremental growth within the
El Pollo Loco® System. The acquisition of existing El Pollo Loco® restaurants
by Developer does not represent incremental growth and, therefore, does not
satisfy the terms of this Agreement pertaining to development.

3.0 Development Fee.

          Developer
shall pay to Franchisor upon execution of this Agreement a non-refundable
development fee (the “Development Fee”)
equal to Ten Thousand Dollars ($10,000.00), in immediately available funds, for
each restaurant which Developer has at the time of execution agreed to develop
under this Agreement.  As Developer has
committed to develop 25 restaurants under the Development Schedule, the initial
Development Fee shall be Two Hundred Fifty Thousand Dollars ($250,000).  The Development Fee is consideration for
this Agreement, is not consideration for any Franchise Agreement, and is
non-refundable.  The $10,000 portion of
the Development Fee for each restaurant shall be applied against the initial
franchise fee payable upon the execution of the Franchise Agreement applicable
to such restaurant.  The initial
franchise fee for the first Franchise Agreement entered into pursuant to this
Agreement shall be Forty Thousand Dollars ($40,000), and the initial franchise
fee for the second and each subsequent Franchise Agreement entered into
pursuant to this Agreement shall be Thirty Thousand Dollars ($30,000).  If this Agreement is terminated pursuant to
Section 9.0 or 10.0 below, all Development Fees or any unused portion thereof,
shall be forfeited to Franchisor in consideration of the rights granted in the
Territory up to the time of termination.
If Developer exercises the Option set forth in Section 1.1 above, the
Two Hundred Fifty Thousand Dollar ($250,000) fee Developer is required to pay
to Franchisor in order to exercise the Option shall be considered a Development
Fee for the additional restaurants subject to the Option, and shall be subject
to the terms and conditions set forth in this Section 3.0. 

4.0 Term of Development Agreement.

          This
Agreement shall commence on the date specified in Exhibit
“B”. Unless terminated pursuant to Section 9.0 or 10.0
below, it shall expire upon the earlier

	
 

	
 

	
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of the
date specified in Exhibit “B” or upon
the opening of the last restaurant listed in the Development Schedule.

5.0 Territory Conflicts.

5.1
Intentionally omitted.

5.2 During
the term of this Agreement, in the event of a conflict in territorial rights,
whether under a Franchise Agreement or separate territorial or development
agreement, the earlier in time shall prevail. Developer shall be free to
negotiate with any person, corporation or other entity, which claims
territorial rights adverse to the rights granted under this Agreement, for the
assignment of those territorial rights. For this purpose, Franchisor agrees to
approve any such assignment not in conflict with the other terms of this
Agreement, subject to the condition of any Franchise Agreements involved, and
current policies pertaining to assignments, including, but not limited to,
satisfaction of all past due debts owed to Franchisor and the execution of a
General Release.

6.0 Proprietary Rights of El Pollo Loco.

6.1
Developer expressly acknowledges El Pollo Loco’s exclusive right, title, and
interest in an to the trade name, service mark and trademark “El Pollo Loco”,
and such other trade names, service marks, and trademarks which are designated
as part of the El Pollo Loco® System (the “Marks”),
and Developer agrees not to represent in any manner that Developer has any
ownership in El Pollo Loco® Marks. This Agreement is not a Franchise Agreement.
Developer may not open an El Pollo Loco® restaurant or use the El Pollo Loco®
Marks at a particular site until it executes a Franchise Agreement for that
site. Developer’s use of the El Pollo Loco® Marks shall be limited to those
rights granted under each individual Franchise Agreement.  Notwithstanding the foregoing, El Pollo Loco® may authorize Developer in
writing to use the Marks in connection with advertising and marketing
activities in connection with this Agreement.
Developer expressly agrees that such usage is limited to those specific
activities or promotional materials approved by El Pollo Loco’s marketing
department in advance.   Developer
further agrees that its use of the Marks shall not create in its favor any
right, title, or interest in or to El Pollo Loco® Marks, but that all of such
use shall inure to the benefit of El Pollo Loco, and Developer has no rights to
the Marks except to the degree specifically granted by the individual Franchise
Agreements. Building designs and specifications, color schemes and
combinations, sign design specifications, and interior building layouts
(including equipment, equipment specification, equipment layouts, and interior
color schemes and combinations) are acknowledged by Developer to comprise part
of the El Pollo Loco® System. Developer shall have no right to license or
franchise others to use the Marks by virtue of this Agreement.

6.2
Developer acknowledges that, in connection with its execution of this
Agreement, it may receive confidential and proprietary information regarding
the El Pollo Loco® System.  Developer
recognizes the unique value and secondary meaning

	
 

	
 

	
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attached
to the El Pollo Loco® Marks and the El Pollo Loco® System, and Developer agrees
that any noncompliance with the terms of this Agreement or any unauthorized or
improper use will cause irreparable damage to Franchisor and its franchisees.
Developer, therefore, agrees that if it should engage in any such unauthorized
or improper use during, or after, the term of this Agreement, Franchisor shall
be entitled to both seek temporary and permanent injunctive relief from any
court of competent jurisdiction in addition to any other remedies prescribed by
law.

7.0 Insurance and Indemnification.

7.1 During
the term of this Agreement, Developer shall obtain and maintain insurance
coverage for public liability, including products liability, in the amount of
at least One Million Dollars ($1,000,000) combined single limit. Developer also
shall carry such worker’s compensation insurance as may be required by
applicable law. Upon the execution of each Franchise Agreement, Developer also
shall obtain and maintain the insurance coverage’s required under each
Franchise Agreement.

7.2
Franchisor shall be named as an additional insured on all such insurance
policies and shall be provided with certificates of insurance evidencing such
coverage. All public liability and property damage policies shall contain a
provision that El Pollo Loco, although named as an insured, shall nevertheless
be entitled to recover under such policies on any loss incurred by El Pollo
Loco, its affiliates, agents and/or employees, by reason of the negligence of
Developer, its principals, contractors, agents and/or employees. All policies
shall provide Franchisor with at least thirty (30) days notice of cancellation
or termination of coverage.

7.3
Franchisor reserves the right to specify reasonable changes in the types and
amounts of insurance coverage required by this Section 7.0. In the event that
Developer fails or refuses to obtain or maintain the required insurance
coverage from an insurance carrier acceptable to El Pollo Loco, Franchisor may,
in its sole discretion and without any obligations to do so, procure such
coverage for Developer. In such event, Developer agrees to pay the required
premiums or to reimburse such premiums to Franchisor upon written demand.

7.4
Developer agrees to defend at its own cost and to indemnify and hold harmless
El Pollo Loco, its parent corporations, affiliates, shareholders, directors,
officers, employees and agents from and against any and all loss, costs,
expenses (including, without limitation, attorneys’ fees), damages and
liabilities, however caused, resulting directly or indirectly from or
pertaining to the use, condition, construction, equipping, decorating,
maintenance or operation of any and all El Pollo Loco® restaurants developed
and/or operated by Developer, and any labor or other employee related claims of
any kind. Such loss, costs, expenses, damages, liabilities and claims shall
include, without limitation, those arising from the death or injury to any
person, or arising from damage to the property of Developer or El Pollo Loco,
their affiliates, agents or employees, or any third person, firm or
corporation, whether or not such losses, costs, expenses, damages, liabilities
or claims were actually or allegedly

	
 

	
 

	
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caused, in
whole or in part through the negligence of Franchisor or any of its affiliates,
agents or employees, or resulted from any strict liability imposed on
Franchisor or any of its affiliates, agents or employees.

8.0 Transfer of Rights.

8.1 This
Agreement shall inure to the benefit of Franchisor and its successors and
assigns, and is fully assignable by El Pollo Loco.

8.2 The
parties acknowledge that this Agreement is personal in nature with respect to
Developer, being entered into by Franchisor in reliance upon and in
consideration of the personal skills, qualifications and trust and confidence
reposed in Developer and Developer’s present partners, managing members or
officers if Developer is a partnership, a limited liability company or a
corporation.  Therefore, the rights,
privileges and interests of Developer under this Agreement shall not be
assigned, sold, transferred, leased, divided or encumbered, voluntarily or
involuntarily, in whole or in part, by operation of law or otherwise, without
the prior written consent of El Pollo Loco, which consent may be given or
withheld in El Pollo Loco’s sole discretion; provided, however, that (a) the
following may take place, with at least thirty (30) days advance written
notice, but without the need to obtain Franchisor’s prior written consent: (i)
an assignment, sale, or transfer of interests in Developer, or of any entity
with an ownership interest in Developer, among Chris Elliott and Joe Uhl; or
(ii) an assignment, sale, or transfer of interests in Developer, or of any
entity with an ownership interest in Developer, among Trimaran Fund Management
and its affiliates; and (b) an assignment, sale, or transfer of any of Chris
Elliott or Joe Uhl’s interests in Developer, or of any entity with an Interest
in Developer, to Trimaran Fund Management and its affiliates may take
place with at least ninety (90) days advance written notice to Franchisor, but
without the need to obtain Franchisor’s prior written consent, provided, that if such Assignment
would mean the cessation of either Chris Elliott or Joe Uhl’s management
responsibilities, ownership in, or employment, with Developer, Franchisor must
first approve a qualified replacement for Chris Elliott or Joe Uhl, as the case
may be.  For purposes of
this Section, a sale of stock, or any membership or partnership interest in
Developer, or a merger or other combination of Developer shall be considered a
transfer of Developer’s interest prohibited hereunder.

9.0 Termination by Developer; Expiration Date.

          This
Agreement shall terminate immediately upon El Pollo Loco’s receipt of
Developer’s notice to terminate, and any unapplied portion of the Development
Fee shall be forfeited to Franchisor in consideration of the rights granted in
the Territory up to the time of termination.
Notwithstanding any provision to the contrary contained herein, unless
earlier terminated by either party, or unless extended pursuant to the Option
described in Section 1.1 above, this Agreement shall expire on June 30, 2011,
and all rights of Developer herein shall cease and all unapplied or unused
Development Fees paid pursuant to Section 3.0 hereof shall be forfeited to
Franchisor.

	
 

	
 

	
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10.0 Events of Default.

10.1 The
following events shall constitute a default by Developer, which shall result in
El Pollo Loco’s right to declare the immediate termination of this Agreement.

	
 

	
 

	
 

	
a. Failure by
  Developer to meet the requirements of the Development Schedule within the
  time periods specified therein, including failure by Developer to meet the
  Site Commitment Date or Opening Date for each site for a restaurant in a
  timely manner as set forth in Exhibit “B” and Section 2.5 above.

	
 

	
 

	
 

	
b. Any assignment,
  transfer or sublicense of this Agreement by Developer without the prior
  written consent of El Pollo Loco.

	
 

	
 

	
 

	
c. Any violation
  by Developer of any covenant, term, or condition of any note or other
  agreement (including any El Pollo Loco® Franchise Agreement) between
  Developer and Franchisor (or an affiliate of El Pollo Loco), the effect of
  which is to allow Franchisor to terminate (or accelerate the maturity of)
  such agreement before its stated termination (or maturity) date.

	
 

	
 

	
 

	
d. Developer’s
  assignment for the benefit of creditors or admission in writing of its
  inability to pay its debts generally as they become due.

	
 

	
 

	
 

	
e. Any order,
  judgment, or decree entered adjudicating Developer bankrupt or insolvent.

	
 

	
 

	
 

	
f. Any petition,
  or application, by Developer to any tribunal for the appointment of a
  trustee, receiver, or liquidator of Developer (or a substantial part of
  Developer’s assets), or commencement by Developer of any proceedings relating
  to Developer under any bankruptcy, reorganization, compromise, arrangement,
  insolvency, readjustment of debt, dissolution, or liquidation law of any
  jurisdiction, whether now or hereinafter in effect.

	
 

	
 

	
 

	
g. Any filing of a
  petition or application against Developer, or the commencement of such
  proceedings, in which Developer, in any way, indicates its approval thereof,
  consent thereto, or acquiescence therein; or the entry of any order, judgment,
  or decree appointing any trustee, receiver, or liquidator, or approving the
  petition in any such proceedings, where the order, judgment, or decree
  remains unstayed and in effect for more than thirty (30) days.

	
 

	
 

	
 

	
h. Any entry in
  any proceeding against the Developer of any order, judgment, or decree, which
  requires the dissolution of Developer, where 

	
 

	
 

	
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such order,
  judgment, or decree remains unstayed and in effect for more than thirty (30)
  days.

	
 

	
 

	
 

	
i. Developer’s
  voluntary abandonment of any of Developer’s restaurants.

10.2 The
following events shall constitute a default by Developer, which shall result in
El Pollo Loco’s right to declare the termination of this Agreement, if such
default is not cured within thirty (30) days after written notice by Franchisor
to Developer:

	
 

	
 

	
 

	
a. Developer’s
  default in the performance or observance of any covenant, term, or condition
  contained in this Agreement not otherwise specified in Section 10.1 above.

	
 

	
 

	
 

	
b. The creation,
  incurrence, assumption, or sufferance to exist of any lien, encumbrance, or
  option whatsoever upon any of Developer’s property or assets, whether now
  owned or hereafter acquired, the effect of which substantially impairs
  Developer’s ability to perform or observe any covenant, term, or condition of
  this Agreement.

	
 

	
 

	
 

	
c. Any change,
  transfer or conveyance (“Transfer”)
  in the ownership of Developer, which Transfer has not been approved in
  advance by Franchisor.  Franchisor
  reserves the right to approve or disapprove any Transfer in its sole
  discretion.

	
 

	
 

	
 

	
d. If: (i) during
  the first three years of this Agreement, the consolidated aggregate net worth
  (as determined according to generally accepted accounting principles in the
  United States, but excluding any extraordinary non-cash gains or losses (“Net Worth”) of Developer’s parent
company
  (Fiesta Brands, LLC (including its subsidiaries)), or any successor, falls
  below Three Million Dollars ($3,000,000); (ii) during the fourth year of this
  Agreement, the Net Worth of Fiesta Brands, LLC (including its subsidiaries),
  or any successor, falls below Four Million Dollars ($4,000,000); or (iii)
  during the fifth year of this Agreement and each subsequent year of this
  Agreement thereafter, the Net Worth of Fiesta Brands, LLC (including its
  subsidiaries), or any successor, falls below Five Million Dollars
  ($5,000,000).  For this purpose,
  Developer shall provide to Franchisor during the term of this Agreement an
  unaudited financial statement within forty-five (45) days after the end of
  each calendar quarter, and an unaudited financial statement (or if an audited
  financial statement is produced for Fiesta Brands, LLC, then an audited
  financial statement) within one hundred twenty (120) days after the end of
  each calendar year, for Fiesta Brands, LLC (including its subsidiaries) or
  any successor, as applicable, which statements shall include such information
  and data as specified in the financial reporting format set forth in Exhibit
  “G” to the Franchise Agreement.

	
 

	
 

	
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10.3 If Franchisor is entitled to terminate this
Agreement in accordance with Sections 10.1 or 10.2 above, Franchisor shall have
the right, instead of terminating this Agreement, to terminate or modify any
rights that Developer may have with respect to protected exclusive rights in
the Territory, as granted under Section 1.1 above, effective ten (10) days
after delivery of written notice thereof to Franchisee;

If any of such rights are terminated or
modified in accordance with this Section 10.3, such action shall be without
prejudice to Franchisor’s right to terminate this Agreement in accordance with
Sections 10.1 or 10.2 above, and/or to terminate any other rights, options or
arrangements under this Agreement at any time thereafter for the same default
or as a result of any additional defaults of the terms of this Agreement.

11.0 Effect of Termination.

11.1
Immediately upon termination or expiration of this Agreement, for any reason,
all of Developer’s development rights granted pursuant to this Agreement shall
revert to El Pollo Loco. At the time of termination, only restaurants operating
or to be operated under the El Pollo Loco® System by virtue of a fully executed
Franchise Agreement shall be unaffected by the termination of this Agreement,
unless the basis for termination also constitutes a default (as in the case of
Section 10.2(d) above) under such a Franchise Agreement.  Franchisor shall have no duty to execute any
Franchise Agreement with Developer after the termination of this Agreement. The
foregoing remedies are nonexclusive, and nothing stated in this Section 11.0
shall prevent El Pollo Loco’s pursuit of any other remedies available to
Franchisor in law or at equity due to the termination of this Agreement.

11.2
Developer understands and agrees that upon the expiration or termination of
this Agreement (or in the event of an exclusive development agreement, the
failure of Developer to meet the Development Schedule and the resulting loss of
exclusive development rights), Franchisor or its subsidiaries or affiliates, in
their sole discretion, may open and/or operate restaurants in the Territory, or
may authorize or franchise others to do the same, whether it is in competition
with or in any other way affects the sales of Developer at the restaurants.

12.0 Non-Waiver.

El Pollo
Loco’s consent to or approval of any act or conduct of Developer requiring such
consent or approval shall not be deemed to waive or render unnecessary El Pollo
Loco’s consent to or approval of any subsequent act or conduct hereunder.

13.0 Independent Contractor and Indemnification.

13.1 This
Agreement does not constitute Developer an agent, legal representative, joint
venturer, partner, employee or servant of Franchisor for any purpose
whatsoever, and it is understood between the parties hereto that Developer
shall be an independent contractor and is in no way authorized to make any
contract,

	
 

	
 

	
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agreement,
warranty or representation on behalf of El Pollo Loco. The parties agree that
this Agreement does not create a fiduciary relationship between them.

13.2 Under
no circumstances shall Franchisor be liable for any act, omission, contract,
debt, or any other obligation of Developer. Developer shall indemnify and save
Franchisor harmless against any such claim and the cost of defending it arising
directly or indirectly from or as a result of, or in connection with,
Developer’s actions pursuant to this Agreement.

13.3
Developer shall grant no security interest in Developer’s business or any of
its assets, including the furniture, fixtures and equipment located in the
restaurants, unless the secured party agrees that in the event of any default
by Developer under any documents relating to such security interests,
Franchisor shall have the right and option to purchase the rights of the
secured party in any such business, furniture, fixtures, equipment or assets at
the fair market value of such assets.

14.0 Entire Agreement.

          This
Agreement, including Exhibits “A”, “B”, “C”, “D” and “E” attached hereto,
constitutes the entire full and complete agreement between Franchisor and
Developer concerning the subject matter hereof and supersedes any and all prior
written agreements. No other representations have induced Developer to execute
this Agreement, and there are no representations, inducements, promises, or
agreements, oral or otherwise, between the parties, not embodied herein, which
are of any force or effect with reference to this  Agreement or otherwise. No amendment or modification of this
Agreement shall be binding on either party unless written and fully executed.

15.0 Severability.

          Each
section, part, term and/or provision of this Agreement shall be considered
severable, and if, for any reason, any section, part, term and/or provision
herein is determined to be invalid, contrary to, or in conflict with, any existing
or future law or regulation, by any court or agency having valid jurisdiction,
then such shall be deemed not to be a part of this Agreement, but such shall
not impair the operation of, or affect the remaining portions, sections, parts,
terms and/or provisions of this Agreement, which will continue to be given full
force and effect and bind the parties hereto.

16.0 Applicable Law; Waiver of Jury Trial.

          This
Agreement, after review by Developer and El Pollo Loco, was accepted in the
State of California and shall be governed by and construed in accordance with
the laws of such state. The parties hereby waive any right to demand or have
trial by jury in any action relating to this Agreement in which the Franchisor
is a party.  The parties consent to the
exercise of personal jurisdiction over them by such courts and to the propriety
of venue of such courts for the purpose of carrying out the provision, and they
waive any objection that they would otherwise have to the same.  

	
 

	
 

	
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17.0 Document Interpretation.

          All
terms and words used in this Agreement, regardless of the number and gender in
which they are used, shall be deemed and construed to include the singular or
plural tense, and any gender, whether masculine, feminine or neuter, as the
context or sense of this Agreement or any paragraph or clause may require, the
same as if such words had been fully and properly written in the appropriate
number or gender. In the event of a conflict in the language, terms, or
conditions between this Agreement and any Franchise Agreement issued pursuant
to this Agreement, the Franchise Agreement shall control.

18.0 Confidentiality and Covenants Not to Compete.

18.1 To further protect the El Pollo Loco® System while this Agreement
is in effect, Developer, and each officer, director, shareholder, member,
manager, partner and other equity owner of Developer, and all of Developer’s
affiliates, that have access to confidential information pertaining to
Franchisor or Developer, and direct or indirect authority to manage or
influence the day-to-day affairs of Developer (including, without limitation,
Fiesta Brands, Inc. and its officers and directors, Fiesta Realty, Inc. and its
officers and directors, Fiesta Brands, LLC, and Chris Elliott, and Joe Uhl) (a
“Managing Principal”), shall
neither directly nor indirectly own, operate, control or hold any financial
interest in any other business which would constitute a “Competitive Business” (as hereinafter
defined) without the prior written consent of Franchisor.  Upon Franchisor’s request, Developer shall
cause each Managing Principal to enter into the confidentiality and
non-competition covenants attached to this Agreement as Exhibit “D”.  Notwithstanding the foregoing, upon
request of Developer,
Franchisor may, in its reasonable discretion, waive the non-competition
requirements of this Section 18.1 for members of the board of directors of
Developer or its affiliates, provided that (a) the board member seeking the
waiver executes the confidentiality covenants set forth in Exhibit “E”, and (b)
such board member is not an officer or member of the board of directors of a
Competitive Business.  The parties agree
that Franchisor may refuse to grant a waiver where the subject board member has
direct responsibility for day-to-day decision-making of a Competitive
Business.  Developer shall cause each
individual and entity, other than Managing Principals that have already
executed Exhibit D, that may obtain confidential information of Franchisor or
Developer through their relationship with Developer to enter into a
confidentiality covenant attached to this Agreement as Exhibit “E”.  In addition, Developer covenants that,
except as otherwise
approved in writing by the Franchisor, Developer shall not, for a continuous,
uninterrupted period commencing upon the expiration, termination or assignment
of this Agreement, regardless of the cause for termination, and continuing for
two (2) years thereafter, either directly or indirectly, for itself, or through
or on behalf of, or in conjunction with any person, partnership, corporation or
other entity, own, operate, control or have any financial interest in any
Competitive Business which is located or has outlets or restaurant units within
the Territory.  The foregoing shall not
apply to operation of an El Pollo Loco® restaurant by Developer pursuant to a
franchise

	
 

	
 

	
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agreement with Franchisor or the ownership by Developer of less than
five percent (5%) of the issued or outstanding stock of any company whose
shares are listed for trading on any public exchange or on the over-the-counter
market, provided that Developer does not control or become involved in the
operations of any such company.  For
purposes of this Section 18.1, a Competitive Business shall mean a self-service
restaurant or fast-food business which sells chicken or Mexican food products,
which products individually or collectively represent more than twenty-five
percent (25%) of the revenues from such self-service restaurant or fast-food
business operated at any one location during any calendar quarter.  A “Competitive Business” shall not include a
full-service restaurant. 

18.2 In
the event that any provision of Section 18.1 shall be determined by a court of
competent jurisdiction to be invalid or unenforceable, this Agreement shall not
be void, but such provision shall be limited to the extent necessary to make it
valid and enforceable.

19.0 Notice.

          For
the purpose of this Agreement, all notices shall be in writing and sent via
facsimile and registered or certified U. S. Mail. Any time period related to
the notice shall commence to run upon the date said notice is received in the
mail. All notices to El Pollo Loco® shall be addressed as
follows:

	
 

	
 

	
 

	
 

	
 

	
El Pollo Loco,
  Inc.

	
 

	
 

	
Vice President
  Development

	
 

	
 

	
3333 Michelson Drive,
  Suite 550

	
 

	
 

	
Irvine, CA  92612

	
 

	
 

	
(949) 399-2025
  (fax)

	
 

	
 

	
 

	
 

	
With a copy to:

	
 

	
 

	
 

	
 

	
El Pollo Loco,
  Inc. – General Counsel 

	
 

	
 

	
3333 Michelson
  Drive, Suite 550 

	
 

	
 

	
Irvine, CA 92612 

	
 

	
 

	
(949) 251-1703
  (fax)

          All
notices to Developer shall be faxed and mailed to the Developer’s number and
address shown on Exhibit “B”. Either party may from time to time change its
address for the purposes of this Section by giving written notice of such
change to the other party in the manner provided in this Section.

20.0 Section Headings.

          The
section headings appearing in this Agreement are for reference purposes only
and shall not affect, in any way, the meaning or interpretation of this
Agreement.

	
 

	
 

	
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21.0 Acknowledgments.

21.1
Developer acknowledges that it has received a complete copy of this Agreement,
the Franchise Agreement, the attachments thereto, if any, at least ten (10)
business days prior to the date on which this Agreement was executed.

21.2
Developer acknowledges that it has read and understands this Agreement, the
Franchise Agreement, the attachments thereto and the agreements relating
thereto contained in the UFOC received by Developer on July 22, 2006 and that
Franchisor has accorded Developer ample opportunity and has encouraged
Developer to consult with advisors of Developer’s own choosing about the
potential benefits and risks of entering into this Agreement.

	
 

	
 

	
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22.0 Counterparts;
Facsimile Signatures.

          This Agreement may be
executed in
one or more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original but
all of which when taken together shall constitute one and the same
agreement.  Delivery of an executed signature
page to this Agreement by facsimile transmission shall be effective as delivery
of an original counterpart.

          IN WITNESS
WHEREOF, the parties hereto have duly executed, sealed and delivered this
Agreement in duplicate original as of the date and year first written above.

	
 

	
 

	
 

	
 

	
DEVELOPER:

	
 

	
EL POLLO LOCO,
  INC.,

	
FIESTA BRANDS,
  INC.,

	
 

	
a Delaware
  corporation

	
a Delaware
  corporation 

	
 

	
 

	
 

	
 

	
 

	
 

	
By: 

	
/s/ Christopher
  Elliott

	
 

	
/s/ Brian
  Berkhausen 

	
 

	

	
 

	

	
 

	
Christopher Elliott

	
 

	
Brian Berkhausen

	
 

	
 

	
 

	
Sr. Vice
  President, Development

	
 

	
 

	
 

	
 

	
By: 

	
/s/ Joseph M. Uhl

	
 

	
/s/ Pamela R.
  Milner 

	
 

	

	
 

	

	
 

	
Joseph M. Uhl

	
 

	
Pamela R. Milner

	
 

	
 

	
 

	
Senior Vice
  President and General Counsel

	
 

	
 

	
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EXHIBIT “A” TO DEVELOPMENT
AGREEMENT

TERRITORY 

ATLANTA DMA

Comprising of the following counties, unless otherwise designated, within
the State of Georgia:

Banks, Barrow, Bartow, Butts, Carroll,
Chattooga, Cherokee, Clarke, Clay (North Carolina), Clayton, Cleburne
(Alabama), Cobb, Coweta, Dawson, Dekalb, Douglas, Fayette, Floyd, Forsyth,
Fulton, Gilmer, Gordon, Greene, Gwinnett, Habersham, Hall, Haralson, Heard,
Henry, Jackson, Jasper, Lamar, Lumpkin, Madison, Meriweather, Morgan, Newton,
Oconee, Paulding, Pickens, Pike, Polk, Putnam, Rabun, Randolph (Alabama),
Rockdale, Spaulding, Towns, Troup, Union, Upson, Walton, White. 

	
 

	
 

	
Exhibit A to Development Agreement

	
Page 1 of 1

EXHIBIT “B” TO DEVELOPMENT AGREEMENT

DEVELOPMENT SCHEDULE

FRANCHISE NAME: Fiesta Brands, Inc., a
Delaware corporation 

PRINCIPALS: 100% owned by Fiesta Brands, LLC

NOTICE ADDRESS:

FAX NUMBER:
                              (      )

EMAIL:

COMMENCEMENT
DATE:                    August
__, 2006 

EXPIRATION DATE:
                            ______________

DEVELOPMENT FEE (SECTION 3.0):         $250,000

DEVELOPMENT SCHEDULE:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RESTAURANT

	
 

	
DEVELOPMENT

  AGREEMENT *

	
 

	
DATE SITE

  SUBMITTED TO

  RESAC FOR

  APPROVAL *

	
 

	
DATE

  APPROVED BY

  RESAC *

	
 

	
DATE FOR

  DELIVERY OF

  SIGNED LEASES

  OR PURCHASE

  AGREEMENT TO

  EPL *

	
 

	
OPENING DATE

  OF RESTAURANT

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
Site

	
 

	
Execution Date

	
 

	
60 Days

	
 

	
30 Days

	
 

	
60 Days

	
 

	
18 mths/12 mths

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
1,2

	
 

	
08/07/06

	
 

	
10/06/06

	
 

	
11/05/06

	
 

	
01/04/07

	
 

	
02/05/08

	
3,4,5,6,7,8

	
 

	
08/07/06

	
 

	
04/05/08

	
 

	
05/05/08

	
 

	
07/04/08

	
 

	
02/04/09

	
9,10,11,12,13,14,15

	
 

	
08/07/06

	
 

	
04/05/09

	
 

	
05/05/09

	
 

	
07/04/09

	
 

	
02/04/10

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
16,17,18,19,20,21,22,23,24,25

	
 

	
08/07/06

	
 

	
04/05/10

	
 

	
05/05/10

	
 

	
07/04/10

	
 

	
02/04/11

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Restaurants Subject
  to the Option*

	
 

	
26,27,28,29,30,31,32,33,34,35,36,37,38,39

	
 

	
08/07/06

	
 

	
04/05/11

	
 

	
05/05/11

	
 

	
07/04/11

	
 

	
02/04/12

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
40,41,42,43,44,45,46,47,48,49,50

	
 

	
08/07/06

	
 

	
04/04/12

	
 

	
05/04/12

	
 

	
07/03/12

	
 

	
02/03/13

* Development Agreement: Execution date of Development Agreement

* RESAC: Real Estate Site Approval Committee

* EPL: El Pollo Loco, Inc.

*Option Addendum must be exercised by 09/01/09

	
 

	
 

	
Exhibit B to Development Agreement

	
Page 1 of 1

EXHIBIT “C” TO DEVELOPMENT AGREEMENT

FORM OF AMENDMENT TO FRANCHISE AGREEMENT

	
 

	
 

	
Exhibit C to Development Agreement

	
Page 1 of 1

EXHIBIT “D” TO DEVELOPMENT AGREEMENT

CONFIDENTIALITY AND NON-COMPETITION
COVENANTS

In conjunction with your investment in or association with __________
(“Developer”) a ____________ you
(“Individual” or “you”), acknowledge and agree as follows:

	
 

	
 

	
1.

	
Developer is
  required under the Development Agreement with El Pollo Loco, Inc. (“EPL”) dated _______________
(“Development Agreement”) to require
  persons with legal or beneficial ownership interests in Developer under
  certain circumstances to be personally bound by the confidentiality and
  noncompetition covenants contained in the Development Agreement.  All capitalized terms contained herein
  shall have the same meaning set forth in the Development Agreement.

	
 

	
 

	
2.

	
You own or intend
  to own a __% legal or beneficial ownership interest in Developer or are a
  member of the board of directors for an entity that holds an ownership
  interest in Developer, and acknowledge and agree that your execution of this
  agreement is a condition to such ownership interest and that you have
  received good and valuable consideration for executing this Agreement.  EPL may enforce this Agreement directly
  against you and your Owners (as defined below).

	
 

	
 

	
3.

	
If you are a
  corporation, partnership, limited liability company or other entity, all
  persons who have a legal or beneficial interest in you (“Owners”) must also execute this
  Agreement.

	
 

	
 

	
4.

	
You and your
  Owners, if any, may gain access to parts of EPL’s Confidential Information as
  a result of investing in Developer.
  The Confidential Information is proprietary and includes EPL’s trade
  secrets.  You and your Owners hereby
  agree that while you and they have a legal or beneficial ownership interest
  in the Developer, or are a member of the board of directors of an entity that
  has a legal or beneficial ownership interest in the Developer, and at all
  times thereafter, you and they: (a) will not use the Confidential Information
  in any other business or capacity (such use being an unfair method of
  competition); (b) will maintain the confidentiality of the Confidential
  Information; and (c) will not make unauthorized copies of any portion of the
  Confidential Information disclosed in written, electronic or other form.  If you or your Owners cease to have an
  interest in Developer, you and our Owners, if any, must deliver to EPL any
  such Confidential Information in your or their possession.

	
 

	
 

	
5.

	
During the term of
  the Development Agreement and during such time as you and your Owners, if
  any, have any legal or beneficial ownership interest in Developer, or are a
  member of the board of directors of an entity that has a legal or beneficial
  ownership interest in the Developer, you and your Owners, 

	
 

	
 

	
Exhibit D to Development Agreement

	
Page 1 of 3

	
 

	
 

	
 

	
if any, agree that
  you and they will not, without EPL’s consent (which consent may be withheld
  at EPL’s discretion) directly or indirectly (such as through an Affiliate or
  through your or their Immediate Families) own any legal or beneficial
  interest in, or render services or give advice in connection with: (a) any
  Competitive Business located anywhere, or (b) any entity located anywhere
  that grants franchises or licenses interest to others to operate any
  Competitive Business.

	
 

	
 

	
6.

	
You and each of
  your Owners expressly acknowledge the possession of skills and abilities of a
  general nature and the opportunity to exploit such skills in other ways, so
  that enforcement of the covenants contained in Section 5 will not
  deprive any of you of your personal goodwill or ability to earn a
  living.  If any covenant herein, which
  restricts competitive activity, is deemed unenforceable by virtue of its
  scope or in terms of geographic area, type of business activity prohibited
  and/or length of time, but could be rendered enforceable by reducing any part
  of all of it, you and we agree that it will be enforce to the fullest extent
  permissible under applicable law and public policy.  EPL may obtain in any court of competent jurisdiction any
  injunctive relief, including temporary restraining orders and preliminary
  injunctions, against conduct or threatened conduct for which no adequate
  remedy at law may be available or which may cause it irreparable harm.  You and each of your Owners acknowledges
  that any violation of Sections 4 or 5 hereof would result in
  irreparable injury for which no adequate remedy at law may be available.  If EPL, Inc. files a claim to enforce this
  Agreement and prevails in such proceeding, you agree to reimburse EPL, Inc.
  for all its cost and expense, including reasonable attorneys’ fees.

	
 

	
 

	
Exhibit D to Development Agreement

	
Page 2 of 3

IN WITNESS WHEREOF, the undersigned have executed and delivered this
Agreement on the __ day of __________.

INDIVIDUAL

	
 

	
 

	
 

	
 

	
 

	
If a corporation,
  partnership, limited liability company or other legal entity:

	
 

	
 

	
 

	

	
 

	

	
(Signature)

	
 

	
(Name of
  corporation, partnership, limited liability company or other legal entity)

	
 

	
 

	
 

	

	
 

	
 

	
(Print Name)

	
 

	
 

	
 

	
 

	
By: /s/
  Christopher P. Elliott

	
 

	
 

	

	
 

	
 

	
Print Name:
  Christopher P. Elliott

	
 

	
 

	
Title: President

	
 

	
 

	
 

	
 

	
 

	
 

	
OWNERS

	
 

	
 

	
 

	
 

	
 

	
By: /s/
  Christopher P. Elliott

	
 

	
 

	

	
 

	
 

	
Print Name:
  Christopher P. Elliott

	
 

	
 

	
 

	
 

	
 

	
By: /s/ Joseph M.
  Uhl

	
 

	
 

	

	
 

	
 

	
Print Name: Joseph
  M. Uhl

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	
Print Name:

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Exhibit D to Development Agreement

	
Page 3 of 3

EXHIBIT “E” TO DEVELOPMENT AGREEMENT

CONFIDENTIALITY COVENANTS

In conjunction with your association with __________ (“Developer”) a ____________ you
(“Individual” or “you”), acknowledge and agree as follows:

	
 

	
 

	
1.

	
Developer is
  required under the Development Agreement with El Pollo Loco, Inc. (“EPL”) dated _______________
(“Development Agreement”) to require
  certain persons to be bound by the confidentiality covenants contained in the
  Development Agreement.  All
  capitalized terms contained herein shall have the same meaning set forth in
  the Development Agreement.

	
 

	
 

	
2.

	
You acknowledge
  and agree that EPL may enforce this Agreement directly against you. 

	
 

	
 

	
3.

	
You may gain
  access to parts of EPL’s Confidential Information as a result of investing in
  Developer.  The Confidential
  Information is proprietary and includes EPL’s trade secrets.  You hereby agree that at all times you:
  (a) will not use the Confidential Information in any other business or
  capacity (such use being an unfair method of competition); (b) will maintain
  the confidentiality of the Confidential Information; and (c) will not make
  unauthorized copies of any portion of the Confidential Information disclosed
  in written, electronic or other form.
  

	
 

	
 

	
4.

	
EPL may obtain in
  any court of competent jurisdiction any injunctive relief, including
  temporary restraining orders and preliminary injunctions, against conduct or
  threatened conduct for which no adequate remedy at law may be available or
  which may cause it irreparable harm.
  You acknowledge that any violation of Section 3 hereof would
  result in irreparable injury for which no adequate remedy at law may be
  available.  If EPL, Inc. files a claim
  to enforce this Agreement and prevails in such proceeding, you agree to
  reimburse EPL, Inc. for all its cost and expense, including reasonable
  attorneys’ fees.

IN WITNESS WHEREOF, the undersigned have executed and delivered this
Agreement on the 10 day of August.

INDIVIDUAL

	
 

	
 

	
 

	
 

	
 

	
If a corporation,
  partnership, limited liability company or other legal entity:

	
 

	
 

	
 

	
 

	
 

	
Fiesta Brands Inc.

	

	
 

	

	
(Signature)

	
 

	
(Name of
  corporation, partnership, limited liability company or other legal entity)

	
 

	
 

	
 

	

	
 

	
By: /s/
  Christopher P. Elliott

	
(Print Name)

	
 

	

	
 

	
 

	
Print Name:
  Christopher P. Elliott

	
 

	
 

	
Title: President

	
 

	
 

	
Exhibit E to Development Agreement

	
Page 1 of 1Unassociated Document

    
      EXHIBIT
        10.1

EXECUTION
      COPY

FIVE YEAR CREDIT
      AGREEMENT

by and
      among

CVS
      CORPORATION,

THE LENDERS PARTY
      HERETO,

LEHMAN COMMERCIAL
      PAPER INC. and 
WACHOVIA BANK, NATIONAL ASSOCIATION, 
as Co-Syndication
      Agents,

MORGAN STANLEY
      SENIOR
      FUNDING, INC.,
as Documentation Agent,

and

THE BANK OF NEW
      YORK,

as Administrative Agent

    

    Dated as of March
      12,
      2007

    

    BNY CAPITAL MARKETS,
      INC. and BANC OF AMERICA SECURITIES LLC
as Co-Lead Arrangers and Joint
      Bookrunners

    

    
    

    TABLE OF
      CONTENTS

      	1	.	DEFINITIONS
              AND PRINCIPLES OF CONSTRUCTION	 	1
	 	 	1.1	 	Definitions	 	1
	 	 	1.2	 	Principles
              of Construction	 	17
	 	 	 	 	 
	2	.	AMOUNT
              AND TERMS OF LOANS	 	18
	 	 	2.1	 	Revolving
              Credit Loans	 	18
	 	 	2.2	 	Swing
              Line Loans	 	18
	 	 	2.3	 	Notice
              of Borrowing Revolving Credit Loans and Swing Line Loans	 	20
	 	 	2.4	 	Competitive
              Bid Loans and Procedure	 	21
	 	 	2.5	 	Use
              of
              Proceeds	 	23
	 	 	2.6	 	Termination
              or Reduction of Commitments	 	24
	 	 	2.7	 	Prepayments
              of Loans	 	24
	 	 	2.8	 	Letter
              of Credit Sub-facility	 	25
	 	 	2.9	 	Letter
              of Credit Participation	 	26
	 	 	2.10	 	Absolute
              Obligation with respect to Letter of Credit
              Payments	 	27
	 	 	2.11	 	Notes	 	28
	 	 	 	 	 
	3	.	PROCEEDS,
              PAYMENTS, CONVERSIONS, INTEREST, YIELD
              PROTECTION	 	 
	 	 	AND
              FEES	 	28
	 	 	3.1	 	Disbursement
              of the Proceeds of the Loans	 	28
	 	 	3.2	 	Payments	 	29
	 	 	3.3	 	Conversions;
              Other Matters	 	29
	 	 	3.4	 	Interest
              Rates and Payment Dates	 	31
	 	 	3.5	 	Indemnification
              for Loss	 	32
	 	 	3.6	 	Reimbursement
              for Costs, Etc.	 	33
	 	 	3.7	 	Illegality
              of Funding	 	34
	 	 	3.8	 	Option
              to Fund; Substituted Interest Rate	 	34
	 	 	3.9	 	Certificates
              of Payment and Reimbursement	 	35
	 	 	3.10	 	Taxes;
              Net Payments	 	36
	 	 	3.11	 	Fees	 	37
	 	 	3.12	 	Letter
              of Credit Participation Fee	 	38
	 	 	3.13	 	Replacement
              of Lender	 	38
	 	 	 	 	 
	4	.	REPRESENTATIONS
              AND WARRANTIES	 	39
	 	 	4.1	 	Existence
              and Power	 	39
	 	 	4.2	 	Authority	 	39
	 	 	4.3	 	Binding
              Agreement	 	39
	 	 	4.4	 	Litigation	 	39
	 	 	4.5	 	No
              Conflicting Agreements	 	40

    

    ii

    

    
    

    
      	 	 	4.6	 	Taxes	 	40
	 	 	4.7	 	Compliance
              with Applicable Laws; Filings	 	41
	 	 	4.8	 	Governmental
              Regulations	 	41
	 	 	4.9	 	Federal
              Reserve Regulations; Use of Proceeds	 	41
	 	 	4.10	 	No
              Misrepresentation	 	41
	 	 	4.11	 	Plans	 	42
	 	 	4.12	 	Environmental
              Matters	 	42
	 	 	4.13	 	Financial
              Statements	 	43
	 	 	 	 	 
	5	.	CONDITIONS
              OF LENDING - FIRST LOANS AND LETTERS OF CREDIT
              ON	 	 
	 	 	THE
              FIRST BORROWING DATE	 	43
	 	 	5.1	 	Evidence
              of Corporate Action	 	43
	 	 	5.2	 	Notes	 	43
	 	 	5.3	 	Opinion
              of Counsel to the Borrower	 	44
	 	 	 	 	 
	6	.	CONDITIONS
              OF LENDING - ALL LOANS AND LETTERS OF
              CREDIT	 	44
	 	 	6.1	 	Compliance	 	44
	 	 	6.2	 	Requests	 	44
	 	 	6.3	 	Loan
              Closings	 	44
	 	 	 	 	 
	7	.	AFFIRMATIVE
              COVENANTS	 	44
	 	 	7.1	 	Legal
              Existence	 	45
	 	 	7.2	 	Taxes	 	45
	 	 	7.3	 	Insurance	 	45
	 	 	7.4	 	Performance
              of Obligations	 	45
	 	 	7.5	 	Condition
              of Property	 	45
	 	 	7.6	 	Observance
              of Legal Requirements	 	46
	 	 	7.7	 	Financial
              Statements and Other Information	 	46
	 	 	7.8	 	Records	 	47
	 	 	7.9	 	Authorizations	 	47
	 	 	 	 	 
	8	.	NEGATIVE
              COVENANTS	 	48
	 	 	8.1	 	Subsidiary
              Indebtedness	 	48
	 	 	8.2	 	Liens	 	48
	 	 	8.3	 	Dispositions	 	49
	 	 	8.4	 	Merger
              or Consolidation, Etc.	 	49
	 	 	8.5	 	Acquisitions	 	49
	 	 	8.6	 	Restricted
              Payments	 	49
	 	 	8.7	 	Limitation
              on Upstream Dividends by Subsidiaries	 	49
	 	 	8.8	 	Limitation
              on Negative Pledges	 	50
	 	 	8.9	 	Ratio
              of Consolidated Indebtedness to Total Capitalization	 	51
	 	 	8.10	 	Caremark
              Merger	 	51

    

    iii

    

    
    

    
      	9	.	DEFAULT	 	51
	 	 	9.1	 	Events
              of Default	 	51
	 	 	9.2	 	Remedies	 	53
	 	 	 	 	 
	10	.	AGENT	 	54
	 	 	10.1	 	Appointment	 	54
	 	 	10.2	 	Delegation
              of Duties	 	54
	 	 	10.3	 	Exculpatory
              Provisions	 	55
	 	 	10.4	 	Reliance
              by Administrative Agent	 	55
	 	 	10.5	 	Notice
              of Default	 	56
	 	 	10.6	 	Non-Reliance	 	56
	 	 	10.7	 	Administrative
              Agent in Its Individual Capacity	 	56
	 	 	10.8	 	Successor
              Administrative Agent	 	57
	 	 	10.9	 	Co-Syndication
              Agents and Documentation Agent	 	57
	 	 	 	 	 
	11	.	OTHER
              PROVISIONS	 	57
	 	 	11.1	 	Amendments,
              Waivers, Etc.	 	57
	 	 	11.2	 	Notices	 	59
	 	 	11.3	 	No
              Waiver; Cumulative Remedies	 	60
	 	 	11.4	 	Survival
              of Representations and Warranties	 	60
	 	 	11.5	 	Payment
              of Expenses and Taxes; Indemnified Liabilities	 	60
	 	 	11.6	 	Lending
              Offices	 	61
	 	 	11.7	 	Successors
              and Assigns	 	61
	 	 	11.8	 	Counterparts	 	64
	 	 	11.9	 	Set-off
              and Sharing of Payments	 	65
	 	 	11.10	 	Indemnity	 	66
	 	 	11.11	 	Governing
              Law	 	67
	 	 	11.12	 	Severability	 	67
	 	 	11.13	 	Integration	 	67
	 	 	11.14	 	Treatment
              of Certain Information	 	67
	 	 	11.15	 	Acknowledgments	 	68
	 	 	11.16	 	Consent
              to Jurisdiction	 	68
	 	 	11.17	 	Service
              of Process	 	69
	 	 	11.18	 	No
              Limitation on Service or Suit	 	69
	 	 	11.19	 	WAIVER
              OF TRIAL BY JURY	 	69
	 	 	11.20	 	Effective
              Date	 	69
	 	 	11.21	 	Patriot
              Act Notice	 	69

    

    iv

    

    
    

    
      	EXHIBITS	 	 	 	 
	 	 	 	 	 
	Exhibit	 	A	 	List
              of
              Commitments
	Exhibit	 	B	 	Form
              of
              Note
	Exhibit	 	C	 	Form
              of
              Borrowing Request
	Exhibit	 	D-1	 	Form
              of
              Opinion of Counsel to the Borrower
	Exhibit	 	D-2	 	Form
              of
              Opinion of Special Counsel to the Borrower
	Exhibit	 	E	 	Form
              of
              Assignment and Acceptance Agreement
	Exhibit	 	F	 	Form
              of
              Competitive Bid Request
	Exhibit	 	G	 	Form
              of
              Invitation to Bid
	Exhibit	 	H	 	Form
              of
              Competitive Bid
	Exhibit	 	I	 	Form
              of
              Competitive Bid Accept/Reject Letter
	Exhibit	 	J	 	Form
              of
              Letter of Credit Request

    

    v

    

    
    

         FIVE
      YEAR CREDIT
      AGREEMENT, dated as
      of March 12, 2007, by and among CVS CORPORATION,
      a Delaware corporation (the “Borrower”),
      the Lenders party hereto from time to time (each a “Lender”
      and, collectively, the “Lenders”),
      LEHMAN COMMERCIAL
      PAPER INC. and
WACHOVIA
      BANK,
      NATIONAL ASSOCIATION, as co-syndication
      agents (in such capacity, each a “Co-Syndication
      Agent”),
      MORGAN STANLEY
      SENIOR
      FUNDING, INC., as
      documentation agent (in such capacity, the “Documentation
      Agent”),
      and
THE BANK OF
      NEW YORK
      (“BNY”), as
      administrative agent for the Lenders (in such capacity, the “Administrative
      Agent”).

1.    
DEFINITIONS
      AND PRINCIPLES OF
      CONSTRUCTION

     1.1 Definitions

     When used in any
      Loan Document (as defined below), each of the following
      terms shall have the meaning ascribed thereto unless the context otherwise
      specifically requires:

     “ABR Advances”:
      the Revolving Credit Loans (or any portions
      thereof) at such time as they (or such portions) are made or are being
      maintained at a rate of interest based upon the Alternate Base
      Rate.

     “Accumulated
      Funding
      Deficiency”: as defined in
      Section 302 of ERISA.

     “Acquisition”:
      with respect to any Person, the purchase or
      other acquisition by such Person, by any means whatsoever (including by devise,
      bequest, gift, through a dividend or otherwise), of (a) stock of, or other
      equity securities of, any other Person if, immediately thereafter, such other
      Person would be either a consolidated subsidiary of such Person or otherwise
      under the control of such Person, (b) any business, going concern or division
      or
      segment thereof, or (c) the Property of any other Person other than in the
      ordinary course of business, provided
      that (i) no
      acquisition of substantially all of the assets, or any division or segment,
      of
      such other Person shall be deemed to be in the ordinary course of business
      and
      (ii) no redemption, retirement, purchase or acquisition by any Person of the
      stock or other equity securities of such Person shall be deemed to constitute
      an
      Acquisition.

     “Administrative
      Agent”: as defined in the preamble.

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

     “Affected Advance”:
      as defined in Section 3.8(b) .

     “Affiliate”:
      with respect to any Person at any time and
      from time to time, any other Person (other than a wholly-owned subsidiary of
      such Person) which, at such time (a) controls such Person, (b) is controlled
      by
      such Person or (c) is under common control with such Person. The term
“control”,
      as used in this definition with respect to any Person, means the power,
      whether direct or indirect through one or more intermediaries, to direct or
      cause the direction of the management and policies of such Person, whether
      through the ownership of voting securities or other interests, by contract
      or
      otherwise.

    

    
    

         “Aggregate Commitment
      Amount”: at any time, the sum
      of the Commitment
      Amounts of the Lenders at such time under this Agreement.

     “Aggregate Credit
      Exposure”: at any time, the sum
      at such time of (a) the
      aggregate Committed Credit Exposure of the Lenders at such time under this
      Agreement and (b) the aggregate outstanding principal balance of all Competitive
      Bid Loans at such time under this Agreement.

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

     “Alternate Base
      Rate”: for any day, a rate
      per annum equal to the
      greater of (a) the BNY Rate in effect on such day, or (b) 0.50% plus the Federal
      Funds Effective Rate (rounded, if necessary, to the nearest l/100th of 1% or,
      if
there is no nearest 1/100 of 1%, then to the next higher 1/100 of 1%) in effect
      on such day.

     “Applicable
      Margin”: (i) with respect to
      the unpaid principal
      balance of ABR Advances, the applicable percentage set forth below in the column
      entitled “ABR Advances”, (ii) with respect to the unpaid principal balance of
      Eurodollar Advances, the applicable percentage set forth below in the column
      entitled “Eurodollar Advances”, (iii) with respect to the Facility Fee, the
      applicable percentage set forth below in the column entitled “Facility Fee”,
      (iv) with respect to the Letter of Credit Participation Fee, the applicable
      percentage set forth below in the column entitled “Participation Fee”, and (v)
      with respect to the Utilization Fee, the applicable percentage set forth below
      in the column entitled “Utilization Fee”, in each case opposite the applicable
      Pricing Level:

      	Pricing
              Level	ABR
Advances	Eurodollar
Advances	Facility
Fee	Participation
Fee	Utilization
Fee
	Pricing
              Level I	0%	0.150%	0.050%	0.150%	0.050%
	Pricing
              Level II	0%	0.190%	0.060%	0.190%	0.050%
	Pricing
              Level III	0%	0.230%	0.070%	0.230%	0.050%
	Pricing
              Level IV	0%	0.270%	0.080%	0.270%	0.100%
	Pricing
              Level V	0%	0.300%	0.100%	0.300%	0.100%
	Pricing
              Level VI	0%	0.400%	0.150%	0.400%	0.100%

    

    Decreases in the
      Applicable Margin resulting from a change in Pricing Level shall become
      effective upon the delivery by the Borrower to the Administrative Agent of
      a
      notice pursuant to Section 7.7(d) . Increases in the Applicable Margin resulting
      from a change in Pricing Level shall become effective on the effective date
      of
      any downgrade or withdrawal in the rating by Moody’s or S&P of the senior
      unsecured long term debt rating of the Borrower.

2

    

    
    

         “Approved Fund”:
      with respect to any Lender that is a fund
      that invests in commercial loans, any other fund that invests in commercial
      loans and is managed or advised by the same investment advisor as such Lender
      or
      by an Affiliate of such investment advisor.

     “Assignment
      and Acceptance
      Agreement”: an assignment and
      acceptance agreement executed by an assignor and an assignee pursuant to which,
      subject to the terms and conditions hereof and thereof, the assignor assigns
      to
      the assignee all or any portion of such assignor’s Loans, Notes and Commitment,
      substantially in the form of Exhibit E.

     “Benefited Lender”:
      as defined in Section 11.9(b) .

     “BNY”:
      as defined in the preamble.

     “BNY Rate”:
      a rate of interest per annum equal to the
      rate of interest publicly announced in New York City by BNY from time to time
      as
      its prime commercial lending rate, such rate to be adjusted automatically
      (without notice) on the effective date of any change in such publicly announced
      rate.

     “Borrower”:
      as defined in the preamble.

     “Borrowing Date”:
      (i) in respect of Revolving Credit Loans,
      any Domestic Business Day or Eurodollar Business Day, as the case may be, on
      which the Lenders shall make Revolving Credit Loans pursuant to a Borrowing
      Request or pursuant to a Mandatory Borrowing, (ii) in respect of Competitive
      Bid
      Loans, any Domestic Business Day on which a Lender shall make a Competitive
      Bid
      Loan pursuant to a Competitive Bid Request, (iii) in respect of Swing Line
      Loans, any Domestic Business Day on which the Swing Line Lender shall make
      a
      Swing Line Loan pursuant to a Borrowing Request and (iv) in respect of Letters
      of Credit, any Domestic Business Day on which the Issuer shall issue a Letter
      of
      Credit pursuant to a Letter of Credit Request.

     “Borrowing Request”:
      a request for Revolving Credit Loans or
      Swing Line Loans in the form of Exhibit C.

     “Caremark”:
      Caremark Rx, Inc., a Delaware
      corporation.

     “Caremark Merger”:
      the merger of Caremark with and into Twain
      MergerSub Corp., with Twain MergerSub Corp. continuing as the surviving company
      and a wholly owned subsidiary of the Borrower, pursuant to the Caremark Merger
      Agreement.

     “Caremark Merger
      Agreement”: the Agreement and Plan
      of Merger, dated as
      of November 1, 2006, among the Borrower, Caremark and Twain MergerSub Corp.,
      as
      amended as of January 16, 2007 (and as further amended, supplemented or
      otherwise modified from time to time in accordance with Section 8.10)
      .

     “Caremark Merger
      Anticipatory Commercial
      Paper”: commercial paper
      issued by the Borrower under the Commercial Paper Increase prior to and in
      anticipation of the closing of the Caremark Merger to finance in part the
      consideration paid to the Caremark shareholders in connection with the Caremark
      Merger, including any dividends paid to the Caremark shareholders, 

3

    

    
    

    provided
      that (a) such
      commercial paper shall mature no later than 60 days following the initial
      issuance thereof and (b) if the Caremark Merger has not been consummated prior
      to such maturity, the Borrower shall not have rolled over such commercial
      paper.

     “Caremark Merger
      Effective
      Date”: the date on which the
      Caremark Merger shall have become effective pursuant to the Caremark Merger
      Agreement.

     “Change of Control”:
      any of the following:

     (i) any Person
      or group (as such term is used in Section 13(d)(3) of the
      Securities Exchange Act of 1934, as amended), (a) shall have or acquire
      beneficial ownership of securities having 30% or more of the ordinary voting
      power of the Borrower or (b) shall possess, directly or indirectly, the power
      to
      direct or cause the direction of the management and policies of the Borrower,
      whether through the ownership of voting securities, by contract or otherwise;
      or

     (ii) the Continuing
      Directors shall cease for any reason to constitute a
      majority of the board of directors of the Borrower then in office.

     “Commercial
      Paper Increase”: the increase, to the
      extent in excess of
      $2.75 billion, in the Borrower’s commercial paper program for the purpose, among
      other things, of providing for the short term financing of the Caremark
      Merger.

     “Commitment”:
      in respect of any Lender, such Lender’s
      undertaking to make Revolving Credit Loans, subject to the terms and conditions
      hereof, in an aggregate outstanding principal amount not to exceed the
      Commitment Amount of such Lender.

     “Commitment
      Amount”: at any time and with
      respect to any Lender,
      the amount set forth adjacent to such Lender’s name under the heading
“Commitment
      Amount”
      in Exhibit A at such time or, in the event that such Lender is not
      listed on Exhibit A, the “Commitment
      Amount”
      which such Lender shall have assumed from
      another Lender in accordance with Section 11.7 on or prior to such time, as
      the
      same may be adjusted from time to time pursuant to Sections 2.6 and 11.7(c)
      .

     “Commitment
      Percentage”: at any time and with
      respect to any Lender,
      a fraction the numerator of which is such Lender’s Commitment Amount at such
      time, and the denominator of which is the Aggregate Commitment Amount at such
      time.

     “Commitment
      Period”: the period commencing
      on the Effective Date
      and ending on the Commitment Termination Date, or on such earlier date as all
      of
      the Commitments shall have been terminated in accordance with the terms
      hereof.

     “Commitment
      Termination Date”: the earliest of (i)
      November 1, 2007, in the
      event that the Caremark Merger Effective Date has not occurred on or before
      November 1, 2007, (ii) March 12, 2012 and (iii) the date on which the Loans
      shall become due and payable, whether by acceleration, notice of intention
      to
      prepay or otherwise.

4

    

    
    

         “Committed Credit
      Exposure”: with respect to any
      Lender at any time, the
      sum at such time of (a) the outstanding principal balance of such Lender’s
      Revolving Credit Loans, (b) the Swing Line Exposure of such Lender and (c)
      the
      Letter of Credit Exposure of such Lender.

     “Compensatory
      Interest
      Payment”: as defined in
      Section 3.4(c) .

     “Competitive
      Bid”: an offer by a Lender,
      in the form of Exhibit
      H, to make one or more Competitive Bid Loans.

     “Competitive
      Bid Accept/Reject
      Letter”: a notification made
      by the Borrower pursuant to Section 2.4(d) in the form of Exhibit
      I.

     “Competitive
      Bid Loan”: as defined in Section
      2.4(a) .

     “Competitive
      Bid Rate”: as to any Competitive
      Bid made by a Lender
      pursuant to Section 2.4(b), the fixed rate of interest (which shall be expressed
      in the form of a decimal to no more than four decimal places) offered by such
      Lender and accepted by the Borrower.

     “Competitive
      Bid Request”: a request by the Borrower,
      in the form of
      Exhibit F, for Competitive Bids.

     “Competitive
      Interest Period”: as to any Competitive
      Bid Loan, the period
      commencing on the date of such Competitive Bid Loan and ending on the date
      requested in the Competitive Bid Request with respect thereto, which shall
      not
      be earlier than 3 days after the date of such Competitive Bid Loan or later
      than
      180 days after the date of such Competitive Bid Loan, provided that
      if any Competitive Interest Period would
      end on a day other than a Domestic Business Day, such Interest Period shall
      be
      extended to the next succeeding Domestic Business Day, unless such next
      succeeding Domestic Business Day would be a date on or after the Commitment
      Termination Date, in which case such Competitive Interest Period shall end
      on
      the next preceding Domestic Business Day. Interest shall accrue from and
      including the first day of a Competitive Interest Period to but excluding the
      last day of such Competitive Interest Period.

     “Consolidated”:
      the Borrower and the Subsidiaries on a
      consolidated basis in accordance with GAAP.

     “Contingent
      Obligation”: as to any Person (the
“secondary
      obligor”),
      any obligation of
      such secondary obligor (a) guaranteeing or in effect guaranteeing any return
      on
      any investment made by another Person, or (b) guaranteeing or in effect
      guaranteeing any Indebtedness, lease, dividend or other obligation
      (“primary
      obligation”)
      of any other Person (the “primary
      obligor”)
      in any manner, whether directly or
      indirectly, including any obligation of such secondary obligor, whether or
      not
      contingent, (i) to purchase any such primary obligation or any Property
      constituting direct or indirect security therefor, (ii) to advance or supply
      funds (A) for the purchase or payment of any such primary obligation or (B)
      to
      maintain working capital or equity capital of the primary obligor or otherwise
      to maintain the net worth or solvency of the primary obligor, (iii) to purchase
      Property, securities or services primarily for the purpose of assuring the
      beneficiary of any such primary obligation of the ability of the primary obligor
      to make payment of such primary obligation, (iv) otherwise to assure or hold
      harmless the beneficiary of such primary obligation 

5

    

    
    

    against loss in
      respect
      thereof, and (v) in respect of the Indebtedness of any partnership in which
      such
      secondary obligor is a general partner, except to the extent that such
      Indebtedness of such partnership is nonrecourse to such secondary obligor and
      its separate Property, provided that
      the term
“Contingent
      Obligation”
      shall not include the indorsement of instruments for deposit or
      collection in the ordinary course of business.

     “Continuing
      Director”: any member of the board
      of directors of the
      Borrower who (i) is a member of that board of directors on the Effective Date
      or
      (ii) was nominated for election by the board of directors a majority of whom
      were directors on the Effective Date or whose election or nomination for
      election was previously approved by one or more of such directors.

     “Control Person”:
      as defined in Section 3.6.

     “Convert”,
“Conversion”
      and
“Converted”:
      each, a reference to a conversion pursuant
      to Section 3.3 of one Type of Revolving Credit Loan into another Type of
      Revolving Credit Loan.

     “Costs”:
      as defined in Section 3.6.

     “Co-Syndication
      Agents”: as defined in the preamble.

     “Credit Exposure”:
      with respect to any Lender at any time, the
      sum at such time of (a) the Committed Credit Exposure of such Lender at such
      time under this Agreement and (b) the outstanding principal balance of all
      Competitive Bid Loans of such Lender at such time under this
      Agreement.

     “Credit Parties”
      means the Administrative Agent, the
      Co-Syndication Agents, the Documentation Agent, the Swing Line Lender, the
      Issuer and the Lenders.

     “Default”:
      any of the events specified in Section 9.1,
      whether any requirement for the giving of notice, the lapse of time, or both,
      or
      any other condition, has been satisfied.

     “Disposition”:
      with respect to any Person, any sale,
      assignment, transfer or other disposition by such Person by any means,
      of:

     (a) the Stock of,
      or other equity interests of, any other
      Person,

     (b) any business,
      operating entity, division or segment thereof,
      or

     (c) any other Property
      of such Person, other than (i) the sale of
      inventory (other than in connection with bulk transfers), (ii) the disposition
      of equipment and (iii) the sale of cash investments.

     “Dividend Restrictions”:
      as defined in Section 8.7.

     “Documentation
      Agent”: as defined in the preamble.

     “Dollar” or “$”:
      lawful currency of the United States of
      America.

6

    

    
    

         “Domestic Business
      Day”: any day (other than
      a Saturday, Sunday or
      legal holiday in the State of New York) on which banks are open for business
      in
      New York City.

     “Effective Date”:
      as defined in Section 11.20.

     “Eligible Assignee”:
      (i) any commercial bank, investment bank,
      trust company, banking association, financial institution, mutual fund, pension
      fund or any Approved Fund or (ii) any Lender or any Affiliate or any Approved
      Fund of such Lender.

     “Eligible
      SPC”: a special purpose
      corporation that (i) is organized under the laws of the United States or any
      state thereof, (ii) is engaged in making, purchasing or otherwise investing
      in
      commercial loans in the ordinary course of its business and (iii) issues (or
      the
      parent of which issues) commercial paper rated at least A-1 or the equivalent
      thereof by S&P or at least P-1 or the equivalent thereof by
      Moody’s.

     “Employee Benefit
      Plan”: an employee benefit
      plan, within the meaning
      of Section 3(3) of ERISA, maintained, sponsored or contributed to by the
      Borrower, any Subsidiary or any ERISA Affiliate.

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

     “Environmental
      Liability”: as to any Person, any
      liability, contingent
      or otherwise (including any liability for damages, costs of environmental
      remediation, fines, penalties or indemnities), of such Person directly or
      indirectly resulting from or based upon (i) violation of any Environmental
      Law,
      (ii) the generation, use, handling, transportation, storage, treatment or
      disposal of any Hazardous Materials, (iii) exposure to any Hazardous Materials,
      (iv) the release or threatened release of any Hazardous Materials into the
      environment or (v) any contract, agreement or other consensual arrangement
      pursuant to which liability is assumed or imposed with respect to any of the
      foregoing.

     “ERISA”:
      the Employee Retirement Income Security Act
      of 1974, as amended from time to time, or any successor thereto, and the rules
      and regulations issued thereunder, as from time to time in effect.

     “ERISA Affiliate”:
      when used with respect to an Employee
      Benefit Plan, ERISA, the PBGC or a provision of the Internal Revenue Code
      pertaining to employee benefit plans, any Person that is a member of any group
      of organizations within the meaning of Sections 414(b) or (c) of the Internal
      Revenue Code or, solely with respect to the applicable provisions of the
      Internal Revenue Code, Sections 414(m) or (o) of the Internal Revenue Code,
      of
      which the Borrower or any Subsidiary is a member.

     “ESOP Guaranty”:
      the guaranty of the 8.52% ESOP Note maturing
      2008 in the aggregate unpaid principal amount, as of December 30, 2006, of
      $82,100,000.

7

    

    
    

         “Eurodollar
      Advance”: a portion of the Revolving
      Credit Loans
      selected by the Borrower to bear interest during a Eurodollar Interest Period
      selected by the Borrower at a rate per annum based upon a Eurodollar Rate
      determined with reference to such Interest Period, all pursuant to and in
      accordance with Section 2.1 or 3.3.

     “Eurodollar
      Business Day”: any Domestic Business
      Day, other than a
      Domestic Business Day on which banks are not open for dealings in Dollar
      deposits in the interbank eurodollar market.

     “Eurodollar
      Interest Period”: the period commencing
      on any Eurodollar
      Business Day selected by the Borrower in accordance with Section 2.3 or Section
      3.3 and ending one, two, three or six months thereafter, as selected by the
      Borrower in accordance with either such Sections, subject to the
      following:

     (i) if any Eurodollar
      Interest Period would otherwise end on a day which
      is not a Eurodollar Business Day, such Interest Period shall be extended to
      the
      immediately succeeding Eurodollar Business Day unless the result of such
      extension would be to carry the end of such Interest Period into another
      calendar month, in which event such Interest Period shall end on the Eurodollar
      Business Day immediately preceding such day; and

     (ii) if any Eurodollar
      Interest Period shall begin on the last Eurodollar
      Business Day of a calendar month (or on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest Period),
      such Interest Period shall end on the last Eurodollar Business Day of such
      latter calendar month.

     “Eurodollar
      Rate”: with respect to each
      Eurodollar Advance and
      as determined by the Administrative Agent, the rate of interest per annum
      (rounded, if necessary, to the nearest 1/100 of 1% or, if there is no nearest
      1/100 of 1%, then to the next higher 1/100 of 1%) equal to a fraction, the
      numerator of which is the rate per annum quoted by BNY at approximately 11:00
      A.M. (or as soon thereafter as practicable) two Eurodollar Business Days prior
      to the first day of such Interest Period to leading banks in the interbank
      eurodollar market as the rate at which BNY is offering Dollar deposits in an
      amount approximately equal to its Commitment Percentage of such Eurodollar
      Advance and having a period to maturity approximately equal to the Interest
      Period applicable to such Eurodollar Advance, and the denominator of which
      is an
      amount equal to 1.00 minus
the
      aggregate of the then
      stated maximum rates during such Interest Period of all reserve requirements
      (including marginal, emergency, supplemental and special reserves), expressed
      as
      a decimal, established by the Board of Governors of the Federal Reserve System
      and any other banking authority to which BNY and other major United States
      money
      center banks are subject, in respect of eurocurrency liabilities.

     “Event of Default”:
      any of the events specified in Section 9.1,
provided
      that any requirement for the giving of
      notice, the lapse of time, or both, or any other condition has been
      satisfied.

     “Existing 2004
      Five Year Credit
      Agreement”: the Five Year
      Credit Agreement, dated as of June 11, 2004, by and among the Borrower, the
      lenders party thereto, Bank of America, N.A., Credit Suisse First Boston, and
      Wachovia Securities, Inc., as co-syndication agents, ABN AMRO 

8

    

    
    

    Bank N.V., as
      documentation agent, and BNY, as administrative agent, as the same may be
      amended, supplemented, replaced or otherwise modified from time to
      time.

     “Existing 2005
      Five Year Credit
      Agreement”: the Five Year
      Credit Agreement, dated as of June 3, 2005, by and among the Borrower, the
      lenders party thereto, Bank of America, N.A., Credit Suisse First Boston, and
      Wachovia Bank, National Association, as co-syndication agents, SunTrust Bank,
      as
      documentation agent, and BNY, as administrative agent, as the same may be
      amended, supplemented, replaced or otherwise modified from time to
      time.

     “Existing 2006
      Five Year Credit
      Agreement”: the Five Year
      Credit Agreement, dated as of May 12, 2006, by and among the Borrower, the
      lenders party thereto, Bank of America, N.A., Lehman Brothers Inc. and Wachovia
      Bank, National Association, as co-syndication agents, KeyBank National
      Association, as documentation agent, and BNY, as administrative agent, as the
      same may be amended, supplemented, replaced or otherwise modified from time
      to
      time.

     “Expiration
      Date”: the first date, occurring
      on or after the
      date the Commitments shall have terminated or been terminated in accordance
      herewith, upon which there shall be no Loans or Letters of Credit
      outstanding.

     “Facility Fee”:
      as defined in Section 3.11(a) .

     “Federal Funds
      Effective Rate”: for any period, a fluctuating
      interest rate
      per annum equal for each day during such period to the weighted average of
      the
      rates on overnight Federal funds transactions with members of the Federal
      Reserve System arranged by Federal funds brokers, as published for such day
      (or,
      if such day is not a Domestic Business Day, for the next preceding Domestic
      Business Day) by the Federal Reserve Bank of New York, or, if such rate is
      not
      so published for any day which is a Domestic Business Day, the average (rounded,
      if necessary, to the nearest 1/100 of 1% or, if there is no nearest 1/100 of
      1%,
      then to the next higher 1/100 of 1%) of the quotations for such day on such
      transactions received by the Administrative Agent from three Federal funds
      brokers of recognized standing selected by the Administrative
      Agent.

     “Fees”:
      as defined in Section 3.2(a) .

     “Financial Statements”:
      as defined in Section 4.13.

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

     “GAAP”:
      generally accepted accounting principles set
      forth in the opinions and pronouncements of the Accounting Principles Board
      and
      the American Institute of Certified Public Accountants and statements and
      pronouncements of the Financial Accounting Standards Board or such other
      principles as may be approved by a significant segment of the accounting
      profession, which are applicable to the circumstances as of the date of
      determination, consistently applied.

9

    

    
    

         “Governmental
      Authority”: any foreign, federal,
      state, municipal or
      other government, or any department, commission, board, bureau, agency, public
      authority or instrumentality thereof, or any court or arbitrator.

     “Granting Lender”:
      as defined in Section 11.7(h) .

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

     “Highest Lawful
      Rate”: as to any Lender, the
      maximum rate of
      interest, if any, which at any time or from time to time may be contracted
      for,
      taken, charged or received on the Loans or the Notes or which may be owing
      to
      such Lender pursuant to this Agreement under the laws applicable to such Lender
      and this Agreement.

     “Indebtedness”:
      as to any Person at a particular time, all
      items of such Person which constitute, without duplication, (a) indebtedness
      for
      borrowed money or the deferred purchase price of Property (other than trade
      payables and accrued expenses incurred in the ordinary course of business),
      (b)
      indebtedness evidenced by notes, bonds, debentures or similar instruments,
      (c)
      indebtedness with respect to any conditional sale or other title retention
      agreement, (d) indebtedness arising under acceptance facilities and the amount
      available to be drawn under all letters of credit (excluding for purposes of
      Sections 8.1 and 8.9 letters of credit obtained in the ordinary course of
      business by the Borrower or any Subsidiary) issued for the account of such
      Person and, without duplication, all drafts drawn thereunder to the extent
      such
      Person shall not have reimbursed the issuer in respect of the issuer’s payment
      of such drafts, (e) that portion of any obligation of such Person, as lessee,
      which in accordance with GAAP is required to be capitalized on a balance sheet
      of such Person, (f) all indebtedness described in (a) - (e) above secured by
      any
      Lien on any Property owned by such Person even though such Person shall not
      have
      assumed or otherwise become liable for the payment thereof (other than
      carriers’, warehousemen’s, mechanics’, repairmen’s or other like non-consensual
      Liens arising in the ordinary course of business), and (g) Contingent
      Obligations in respect of any indebtedness described in items (a) - (f) above,
      provided that,
      for purposes of this definition,
      Indebtedness shall not include Intercompany Debt and obligations in respect
      of
      interest rate caps, collars, exchanges, swaps or other, similar
      agreements.

     “Indemnified
      Liabilities”: as defined in Section
      11.5.

     “Indemnified
      Person”: as defined in Section
      11.10.

     “Intercompany
      Debt”: (i) Indebtedness of
      the Borrower to one or
      more of the Subsidiaries of the Borrower and (ii) demand Indebtedness of one
      or
      more of the Subsidiaries of the Borrower to the Borrower or any one or more
      of
      the other Subsidiaries of the Borrower.

     “Intercompany
      Disposition”: a Disposition by the
      Borrower or any of the
      Subsidiaries of the Borrower to the Borrower or to any of the other Subsidiaries
      of the Borrower.

10

    

    
    

         “Interest Payment
      Date”: (i) as to any ABR Advance,
      the last day of
      each March, June, September and December, commencing on the first of such days
      to occur after such ABR Advance is made or any Eurodollar Advance is converted
      to an ABR Advance, (ii) as to any Swing Line Loan, the day on which the
      outstanding principal balance of such Swing Line Loan shall become due and
      payable in accordance with Section 2.2(a), (iii) as to any Eurodollar Advance
      in
      respect of which the Borrower has selected a Eurodollar Interest Period of
      one,
      two or three months, the last day of such Eurodollar Interest Period, (iv)
      as to
      any Competitive Bid Loan in respect of which the Borrower has selected a
      Competitive Interest Period of 90 days or less the last day of such Competitive
      Interest Period and (v) as to any Eurodollar Advance or Competitive Bid Loan
      in
      respect of which the Borrower has selected an Interest Period greater than
      three
      months or 90 days, as the case may be, the last day of the third month or the
      90th day, as the case may be, of such Interest Period and the last day of such
      Interest Period.

     “Interest Period”:
      a Eurodollar Interest Period, a Swing Line
      Interest Period or a Competitive Interest Period, as the case may
      be.

     “Internal Revenue
      Code”: the Internal Revenue
      Code of 1986, as
      amended from time to time, or any successor thereto, and the rules and
      regulations issued thereunder, as from time to time in effect.

     “Invitation
      to Bid”: an invitation by the
      Administrative Agent to
      the Lenders to make Competitive Bids in the form of Exhibit G.

     “issue” or “issuance”:
      when used with respect to a Letter of
      Credit, shall be deemed to include any increase in the amount of such Letter
      of
      Credit.

     “Issuer”:
      BNY.

     “Lender”:
      as defined in the preamble; such term to
      also include the Swing Line Lender and the Issuer where the context hereof
      requires or permits such inclusion.

     “Letter of Credit”:
      as defined in Section 2.8.

     “Letter of Credit
      Commitment”: the commitment of the
      Issuer to issue
      Letters of Credit in accordance with the terms hereof in an aggregate
      outstanding face amount not exceeding $150,000,000 (or, if less, the Aggregate
      Commitment Amount) at any time, as the same may be reduced pursuant to Section
      2.6.

     “Letter of Credit
      Exposure”: at any time, (a) in
      respect of all Lenders,
      the sum, without duplication, of (i) the maximum aggregate amount which may
      be
      drawn under all unexpired Letters of Credit at such time (whether the conditions
      for drawing thereunder have or may be satisfied), (ii) the aggregate amount,
      at
      such time, of all unpaid drafts (which have not been dishonored) drawn under
      all
      Letters of Credit, and (iii) the aggregate unpaid principal amount of the
      Reimbursement Obligations at such time, and (b) in respect of any Lender, an
      amount equal to such Lender’s Commitment Percentage at such time multiplied by
      the amount determined under clause (a) of this definition.

11

    

    
    

         “Letter of Credit
      Participation”: with respect
      to each Lender, its obligations to the Issuer under Section 2.9.

     “Letter of Credit
      Participation
      Fee”: as defined in Section
      3.12.

     “Letter of Credit
      Request”: a request in the form
      of Exhibit
      J.

     “Lien”:
      any mortgage, pledge, hypothecation,
      assignment, lien, deposit arrangement, charge, encumbrance or other security
      arrangement or security interest of any kind, or the interest of a vendor or
      lessor under any conditional sale agreement, capital lease or other title
      retention agreement.

     “Loan”:
      a Revolving Credit Loan, a Competitive Bid
      Loan or a Swing Line Loan, as the case may be.

     “Loan Documents”:
      this Agreement and, upon the execution and
      delivery thereof, the Notes, if any, and the Reimbursement
      Agreements.

     “Loans”:
      the Revolving Credit Loans, the Competitive
      Bid Loans and the Swing Line Loans.

     “Mandatory Borrowing”:
      as defined in Section 2.2(b) .

     “Margin Stock”:
      any “margin
      stock”,
      as said term is
      defined in Regulation U of the Board of Governors of the Federal Reserve System,
      as the same may be amended or supplemented from time to time.

     “Material Adverse”:
      with respect to any change or effect, a
      material adverse change in, or effect on, as the case may be, (i) the financial
      condition, operations, business, or Property of the Borrower and the
      Subsidiaries taken as a whole, (ii) the ability of the Borrower to perform
      its
      obligations under the Loan Documents, or (iii) the ability of the Administrative
      Agent, the Issuer or any Lender to enforce the Loan Documents.

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

     “Multiemployer
      Plan”: a Pension Plan which
      is a multiemployer plan
      as defined in Section 4001(a)(3) of ERISA.

     “Negotiated
      Rate”: with respect to each
      Swing Line Loan, the
      rate per annum agreed to in writing by the Borrower and the Swing Line Lender
      as
      the interest rate which such Swing Line Loan shall bear.

     “Net Worth”:
      at any date of determination, the sum of all
      amounts which would be included under shareholders’ equity on a Consolidated
      balance sheet of the Borrower and the Subsidiaries determined in accordance
      with
      GAAP as at such date.

12

    

    
    

         “Note”:
      with respect to each Lender that has
      requested one, a promissory note evidencing such Lender’s Loans payable to the
      order of such Lender (or, if required by such Lender, to such Lender and its
      registered assigns), substantially in the form of Exhibit B.

     “Participant”:
      as defined in Section 11.7(e) .

     “Patriot Act”:
      as defined in Section 11.22.

     “PBGC”:
      the Pension Benefit Guaranty Corporation
      established pursuant to Subtitle A of Title IV of ERISA, or any Governmental
      Authority succeeding to the functions thereof.

     “Pension Plan”:
      at any time, any Employee Benefit Plan
      (including a Multiemployer Plan) subject to Section 302 of ERISA or Section
      412
      of the Internal Revenue Code, the funding requirements of which are, or at
      any
      time within the six years immediately preceding the time in question, were
      in
      whole or in part, the responsibility of the Borrower, any Subsidiary or an
      ERISA
      Affiliate.

     “Person”:
      any individual, firm, partnership, limited
      liability company, joint venture, corporation, association, business trust,
      joint stock company, unincorporated association, trust, Governmental Authority
      or any other entity, whether acting in an individual, fiduciary, or other
      capacity, and for the purpose of the definition of “ERISA
      Affiliate”,
      a trade or
      business.

     “Pricing Level”:
      Pricing Level I, Pricing Level II, Pricing
      Level III, Pricing Level IV, Pricing Level V or Pricing Level VI, as the case
      may be.

     “Pricing Level
      I”: any time when the senior
      unsecured long term
      debt rating of the Borrower by (x) S&P is A+ or higher or (y) Moody’s is A1
      or higher.

     “Pricing Level
      II”: any time when (i) the
      senior unsecured long
      term debt rating of the Borrower by (x) S&P is A or higher or (y) Moody’s is
      A2 or higher and (ii) Pricing Level I does not apply.

     “Pricing Level
      III”: any time when (i) the
      senior unsecured long
      term debt rating of the Borrower by (x) S&P is A- or higher or (y) Moody’s
      is A3 or higher and (ii) neither Pricing Level I nor II applies.

     “Pricing Level
      IV”: any time when (i) the
      senior unsecured long
      term debt rating of the Borrower by (x) S&P is BBB+ or higher or (y) Moody’s
      is Baa1 or higher and (ii) none of Pricing Level I, II or III
      applies.

     “Pricing Level
      V”: any time when (i) the
      senior unsecured long
      term debt rating of the Borrower by (x) S&P is BBB or higher or (y) Moody’s
      is Baa2 or higher and (ii) none of Pricing Level I, II, III or IV
      applies.

     “Pricing Level
      VI”: any time when none
      of Pricing Level I, II,
      III, IV or V applies.

13

    

    
    

         Notwithstanding
      each definition of Pricing Level set forth above, if at
      any time the senior unsecured long term debt ratings of the Borrower by S&P
      and Moody’s differ by more than one equivalent rating level, then the applicable
      Pricing Level shall be determined based upon the lower such rating adjusted
      upwards to the next higher rating level.

     “Principal Office”:
      from time to time, the principal office of
      BNY, located on the date hereof in New York, New York.

     “Prohibited
      Transaction”: a transaction that
      is prohibited under
      Section 4975 of the Internal Revenue Code or Section 406 of ERISA and not exempt
      under Section 4975 of the Internal Revenue Code or Section 408 of
      ERISA.

     “Property”:
      in respect of any Person, all types of real,
      personal or mixed property and all types of tangible or intangible property
      owned or leased by such Person.

     “Regulatory
      Change”: (a) the introduction
      or phasing in of any
      law, rule or regulation after the date hereof, (b) the issuance or promulgation
      after the date hereof of any directive, guideline or request from any central
      bank or United States or foreign Governmental Authority (whether or not having
      the force of law), or (c) any change after the date hereof in the interpretation
      of any existing law, rule, regulation, directive, guideline or request by any
      central bank or United States or foreign Governmental Authority charged with
      the
      administration thereof, in each case applicable to the transactions contemplated
      by this Agreement.

     “Reimbursement
      Agreement”: as defined in Section
      2.8(b) .

     “Reimbursement
      Obligations”: all obligations and
      liabilities of the
      Borrower due and to become due (a) under the Reimbursement Agreements and (b)
      hereunder in respect of Letters of Credit.

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

     “Replaced Lender”:
      as defined in Section 3.13.

     “Replacement
      Lender”: as defined in Section
      3.13.

     “Reportable
      Event”: with respect to any
      Pension Plan, (a) any
      event set forth in Sections 4043(c) (other than a Reportable Event as to which
      the 30 day notice requirement is waived by the PBGC under applicable
      regulations), 4062(e) or 4063(a) of ERISA, or the regulations thereunder, (b)
      an
      event requiring the Borrower, any Subsidiary or any ERISA Affiliate to provide
      security to a Pension Plan under Section 401(a)(29) of the Internal Revenue
      Code, or (c) the failure to make any payment required by Section 412(m) of
      the
      Internal Revenue Code.

     “Required Lenders”:
      (a) at any time prior to the Commitment
      Termination Date or such earlier date as all of the Commitments shall have
      terminated or been terminated in accordance herewith, Lenders having Commitment
      Amounts equal to or more than 51% of the Aggregate 

14

    

    
    

    Commitment Amount,
      and
      (b) at all other times, Lenders having Credit Exposure equal to or more than
      51%
      of the Aggregate Credit Exposure.

     “Restricted
      Payment”: with respect to any
      Person, any of the
      following, whether direct or indirect: (a) the declaration or payment by such
      Person of any dividend or distribution on any class of Stock of such Person,
      other than a dividend payable solely in shares of that class of Stock to the
      holders of such class, (b) the declaration or payment by such Person of any
      distribution on any other type or class of equity interest or equity investment
      in such Person, and (c) any redemption, retirement, purchase or acquisition
      of,
      or sinking fund or other similar payment in respect of, any class of Stock
      of,
      or other type or class of equity interest or equity investment in, such
      Person.

     “Restrictive
      Agreement”: as defined in Section
      8.7.

     “Revolving Credit
      Loans”: as defined in Section
      2.1(a) .

     “S&P”:
      Standard & Poor’s, a division of The
      McGraw-Hill Companies, Inc.

     “Solvent”:
      with respect to any Person on a particular
      date, the condition that on such date, (i) the fair value of the Property of
      such Person is greater than the total amount of liabilities, including, without
      limitation, contingent liabilities, of such Person, (ii) the present fair
      salable value of the assets 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, (iii) 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 (iv) such Person is not engaged
      in
      business or a transaction, and is not about to engage in business or a
      transaction, for which such Person’s Property would constitute an unreasonably
      small amount of capital. For purposes of this definition, the amount of any
      contingent liability at any time shall be computed as the amount that, in light
      of all the facts and circumstances existing at such time, represents the amount
      that can reasonably be expected to become an actual or matured liability after
      taking into account probable payments by co-obligors.

     “Special Counsel”:
      such counsel as the Administrative Agent may
      engage from time to time.

     “Subsidiary”:
      at any time and from time to time, any
      corporation, association, partnership, limited liability company, joint venture
      or other business entity of which the Borrower and/or any Subsidiary of the
      Borrower, directly or indirectly at such time, either (a) in respect of a
      corporation, owns or controls more than 50% of the outstanding stock having
      ordinary voting power to elect a majority of the board of directors or similar
      managing body, irrespective of whether a class or classes shall or might have
      voting power by reason of the happening of any contingency, or (b) in respect
      of
      an association, partnership, limited liability company, joint venture or other
      business entity, is entitled to share in more than 50% of the profits and
      losses, however determined.

     “Swing Line
      Commitment”: the commitment of the
      Swing Line Lender to
      make Swing Line Loans in accordance with the terms hereof in an aggregate
      outstanding principal amount not 

15

    

    
    

    exceeding $100,000,000
      (or, if less, the Aggregate Commitment Amount) at any time, as the same may
      be
      reduced pursuant to Section 2.6.

     “Swing Line
      Commitment Period”: the period from the
      Effective Date to, but
      excluding, the Swing Line Termination Date.

     “Swing Line
      Exposure”: at any time, in respect
      of any Lender, an
      amount equal to the aggregate principal balance of Swing Line Loans at such
      time
      multiplied by such Lender’s Commitment Percentage at such time.

     “Swing Line
      Interest Period”: as to any Swing Line
      Loan, the period
      commencing on the date of such Swing Line loan and ending on the date set forth
      by the Borrower in the Borrowing Request with respect to such Swing Line Loan,
      provided that
      the last day of any Swing Line Interest
      Period shall not be earlier than one day after the date of such Swing Line
      Loan
      or later than 7 days after the date of such Swing Line Loan and in no event
      later than the Swing Line Termination Date, and provided further that
      if any Swing Line Interest Period would
      end on a day other than a Domestic Business Day, such Interest Period shall
      be
      extended to the next succeeding Domestic Business Day.

     “Swing Line
      Lender”: BNY.

     “Swing Line
      Loan” and “Swing
      Line Loans”: as defined in Section
      2.2(a) .

     “Swing Line
      Maturity Date”: as defined in Section
      2.2(a) .

     “Swing Line
      Participation
      Amount”: as defined in
      Section 2.2(c) .

     “Swing Line
      Termination Date”: the date which is 7
      Domestic Business Days
      prior to the Commitment Termination Date.

     “Tangible Net
      Worth”: at any date of determination,
      Net Worth less
      all assets of the Borrower and its Subsidiaries included in such Net Worth,
      determined on a Consolidated basis at such date, that would be classified as
      intangible assets in accordance with GAAP.

     “Termination
      Event”: with respect to any
      Pension Plan, (a) a
      Reportable Event, (b) the termination of a Pension Plan under Section 4041(c)
      of
      ERISA, or the filing of a notice of intent to terminate a Pension Plan under
      Section 4041(c) of ERISA, or the treatment of a Pension Plan amendment as a
      termination under Section 4041(e) of ERISA (except an amendment made after
      such
      Pension Plan satisfies the requirement for a standard termination under Section
      4041(b) of ERISA), (c) the institution of proceedings by the PBGC to terminate
      a
      Pension Plan under Section 4042 of ERISA, or (d) the appointment of a trustee
      to
      administer any Pension Plan under Section 4042 of ERISA.

     “Total Capitalization”:
      at any date, the sum of the Borrower’s
      Consolidated Indebtedness and shareholders’ equity on such date, determined in
      accordance with GAAP.

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         “2007 Bridge
      Credit Agreement”: the 364 Day Credit
      Agreement, dated as of
      March, 2007, by and among the Borrower, the lenders party thereto, Morgan
      Stanley Senior Funding, Inc., as syndication agent, and Lehman Commercial Paper
      Inc., as administrative agent, as the same may be amended, supplemented,
      replaced or otherwise modified from time to time.

     “2007 364 Day
      Credit
      Agreement”: the 364 Day
      Credit Agreement, dated as of March 12, 2007, by and among the Borrower, the
      lenders party thereto, Lehman Commercial Paper Inc. and Wachovia Bank, National
      Association, as co-syndication agents, and The Bank of New York, as
      administrative agent, as the same may be amended, supplemented, replaced or
      otherwise modified from time to time.

     “Type”:
      with respect to any Revolving Credit Loan,
      the characteristic of such Loan as an ABR Advance or a Eurodollar Advance,
      each
      of which constitutes a Type of Revolving Credit Loan.

     “Unqualified
      Amount”: as defined in Section
      3.4(c). 

     “Upstream Dividends”:
      as defined in Section 8.7. 

     “Utilization
      Fee”: as defined in Section
      3.11(b). 

     1.2 Principles
      of
      Construction

          (a) All capitalized
      terms defined in this
      Agreement shall have the meanings given such capitalized terms herein when
      used
      in the other Loan Documents or in any certificate, opinion or other document
      made or delivered pursuant hereto or thereto, unless otherwise expressly
      provided therein.

          (b) Unless otherwise
      expressly provided
      herein, the word “fiscal”
      when used
      herein shall refer to the relevant fiscal period of the Borrower. As used in
      the
      Loan Documents and in any certificate, opinion or other document made or
      delivered pursuant thereto, accounting terms not defined in Section 1.1, and
      accounting terms partly defined in Section 1.1, to the extent not defined,
      shall
      have the respective meanings given to them under GAAP.

          (c) The words “hereof”,
“herein”,
      “hereto”
      and “hereunder”
      and similar words when used in each Loan
      Document shall refer to such Loan Document as a whole and not to any particular
      provision of such Loan Document, and Section, schedule and exhibit references
      contained therein shall refer to Sections thereof or schedules or exhibits
      thereto unless otherwise expressly provided therein.

          (d) All references
      herein to a time of day
      shall mean the then applicable time in New York, New York, unless otherwise
      expressly provided herein.

          (e) Section headings
      have been inserted in the
      Loan Documents for convenience only and shall not be construed to be a part
      thereof. Unless the context otherwise requires, words in the singular number
      include the plural, and words in the plural include the singular.

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              (f) Whenever in
      any Loan Document or in any
      certificate or other document made or delivered pursuant thereto, the terms
      thereof require that a Person sign or execute the same or refer to the same
      as
      having been so signed or executed, such terms shall mean that the same shall
      be,
      or was, duly signed or executed by (i) in respect of any Person that is a
      corporation, any duly authorized officer thereof, and (ii) in respect of any
      other Person (other than an individual), any analogous counterpart
      thereof.

          (g) The words “include”
      and “including”,
      when used in each Loan Document, shall mean
      that the same shall be included “without
      limitation”,
      unless otherwise specifically
      provided.

2.    AMOUNT
      AND TERMS OF
      LOANS

     2.1 Revolving Credit
      Loans

          (a) Subject to
      the terms and conditions
      hereof, each Lender severally (and not jointly) agrees to make loans under
      this
      Agreement (each a “Revolving
      Credit Loan” and,
      collectively with each other Revolving Credit Loan of such Lender and/or with
      each Revolving Credit Loan of each other Lender, the “Revolving Credit Loans”)
      to the Borrower from time to time during the
      Commitment Period, during which period the Borrower may borrow, prepay and
      reborrow in accordance with the provisions hereof. Immediately after making
      each
      Revolving Credit Loan and after giving effect to all Swing Line Loans and
      Competitive Bid Loans repaid and all Reimbursement Obligations paid on the
      same
      date, the Aggregate Credit Exposure will not exceed the Aggregate Commitment
      Amount. With respect to each Lender, at the time of the making of any Revolving
      Credit Loan, the sum of (I) the principal amount of such Lender’s Revolving
      Credit Loan constituting a part of the Revolving Credit Loans to be made, (II)
      the aggregate principal balance of all other Revolving Credit Loans (exclusive
      of Revolving Credit Loans which are repaid with the proceeds of, and
      simultaneously with the incidence of, the Revolving Credit Loans to be made)
      then outstanding from such Lender and (III) the product of (A) such Lender’s
      Commitment Percentage and (B) the sum of (1) the aggregate principal balance
      of
      all Swing Line Loans (exclusive of Swing Line Loans which are repaid with the
      proceeds of, and simultaneously with the incurrence of, the Revolving Credit
      Loans to be made) then outstanding and (2) the Letter of Credit Exposure of
      all
      Lenders, will not exceed the Commitment of such Lender at such time. At the
      option of the Borrower, indicated in a Borrowing Request, Revolving Credit
      Loans
      may be made as ABR Advances or Eurodollar Advances.

          (b) The aggregate
      outstanding principal
      balance of all Revolving Credit Loans shall be due and payable on the Commitment
      Termination Date or on such earlier date upon which all of the Commitments
      shall
      have been terminated in accordance with Section 2.6.

     2.2 Swing
      Line
      Loans

          (a) Subject to
      the terms and conditions
      hereof, the Swing Line Lender agrees to make loans under this Agreement (each
      a
“Swing Line
      Loan” and, collectively, the
      “Swing Line
      Loans”) to the Borrower from
      time to time during the Swing Line Commitment Period.

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    Swing Line Loans
      (i) may
      be repaid and reborrowed in accordance with the provisions hereof, (ii) shall
      not, immediately after giving effect thereto, result in the Aggregate Credit
      Exposure exceeding the Aggregate Commitment Amount, and (iii) shall not,
      immediately after giving effect thereto, result in the aggregate outstanding
      principal balance of all Swing Line Loans exceeding the Swing Line Commitment.
      The Swing Line Lender shall not be obligated to make any Swing Line Loan at
      a
      time when any Lender shall be in default of its obligations under this Agreement
      unless the Swing Line Lender has entered into arrangements satisfactory to
      it
      and the Borrower to eliminate the Swing Line Lender’s risk with respect to such
      defaulting Lender’s participation in such Swing Line Loan. The Swing Line Lender
      will not make a Swing Line Loan if the Administrative Agent, or any Lender
      by
      notice to the Swing Line Lender and the Borrower no later than one Domestic
      Business Day prior to the Borrowing Date with respect to such Swing Line Loan,
      shall have determined that the conditions set forth in Sections 5 and/or 6,
      as
      applicable, have not been satisfied and such conditions remain unsatisfied
      as of
      the requested time of the making of such Loan. Each Swing Line Loan shall be
      due
      and payable on the day (the “Swing Line Maturity Date”)
      being the earliest of the last day of the Swing Line Interest Period
      applicable thereto, the date on which the Swing Line Commitment shall have
      been
      terminated in accordance with Section 2.6, and the date on which the Loans
      shall
      become due and payable pursuant to the provisions hereof, whether by
      acceleration or otherwise. Each Swing Line Loan shall bear interest at the
      Negotiated Rate applicable thereto. The Swing Line Lender shall disburse the
      proceeds of Swing Line Loans at its office designated in Section 11.2 by
      crediting such proceeds to an account of the Borrower maintained with the Swing
      Line Lender.

          (b) On any Domestic
      Business Day, the Swing
      Line Lender may, in its sole discretion, give notice to the Lenders and the
      Borrower that such outstanding Swing Line Loan shall be funded with a borrowing
      of Revolving Credit Loans (provided
      that such
      notice shall be deemed to have been automatically given upon the occurrence
      of a
      Default or an Event of Default under Sections 9.1(h), (i) or (j)), in which
      case
      a borrowing of Revolving Credit Loans made as ABR Advances (each such borrowing,
      a “Mandatory
      Borrowing”), shall be made by
      all Lenders pro
      rata based on each such
      Lender’s Commitment Percentage on the Domestic Business Day immediately
      succeeding the giving of such notice. The proceeds of each Mandatory Borrowing
      shall be remitted directly to the Swing Line Lender to repay such outstanding
      Swing Line Loan. Each Lender irrevocably agrees to make a Revolving Credit
      Loan
      pursuant to each Mandatory Borrowing in the amount and in the manner specified
      in the preceding sentence and on the date specified in writing by the Swing
      Line
      Lender notwithstanding: (i) whether the amount of such Mandatory Borrowing
      complies with the minimum amount for Loans otherwise required hereunder, (ii)
      whether any condition specified in Section 6 is then unsatisfied, (iii) whether
      a Default or an Event of Default then exists, (iv) the Borrowing Date of such
      Mandatory Borrowing, (v) the aggregate principal amount of all Loans then
      outstanding, (vi) the Aggregate Credit Exposure at such time and (vii) the
      amount of the Commitments at such time.

          (c) Upon each receipt
      by a Lender of notice
      from the Administrative Agent, such Lender shall purchase unconditionally,
      irrevocably, and severally (and not jointly) from the Swing Line Lender a
      participation in the outstanding Swing Line Loans (including accrued interest
      thereon) in an amount equal to the product of its Commitment Percentage and
      the
      outstanding balance of the Swing Line Loans (each, a “Swing Line Participation
      Amount”).

19

    

    
    

    Each Lender shall
      also
      be liable for an amount equal to the product of its Commitment Percentage and
      any amounts paid by the Borrower pursuant to this Section that are subsequently
      rescinded or avoided, or must otherwise be restored or returned. Such
      liabilities shall be unconditional and without regard to the occurrence of
      any
      Default or Event of Default or the compliance by the Borrower with any of its
      obligations under the Loan Documents.

          (d) In furtherance
      of Section 2.2(c), upon
      each receipt by a Lender of notice from the Administrative Agent, such Lender
      shall promptly make available to the Administrative Agent for the account of
      the
      Swing Line Lender its Swing Line Participation Amount at the office of the
      Administrative Agent specified in Section 11.2, in lawful money of the United
      States and in immediately available funds. The Administrative Agent shall
      deliver the payments made by each Lender pursuant to the immediately preceding
      sentence to the Swing Line Lender promptly upon receipt thereof in like funds
      as
      received. Each Lender hereby indemnifies and agrees to hold harmless the
      Administrative Agent and the Swing Line Lender from and against any and all
      losses, liabilities (including liabilities for penalties), actions, suits,
      judgments, demands, costs and expenses resulting from any failure on the part
      of
      such Lender to pay, or from any delay in paying, the Administrative Agent any
      amount such Lender is required by notice from the Administrative Agent to pay
      in
      accordance with this Section (except in respect of losses, liabilities or other
      obligations suffered by the Administrative Agent or the Swing Line Lender,
      as
      the case may be, resulting from the gross negligence or willful misconduct
      of
      the Administrative Agent or the Swing Line Lender, as the case may be), and
      such
      Lender shall pay interest to the Administrative Agent for the account of the
      Swing Line Lender from the date such amount was due until paid in full, on
      the
      unpaid portion thereof, at a rate of interest per annum, whether before or
      after
      judgment, equal to (i) from the date such amount was due until the third day
      therefrom, the Federal Funds Effective Rate, and (ii) thereafter, the Federal
      Funds Effective Rate plus
      2%, payable upon
      demand by the Swing Line Lender. The Administrative Agent shall distribute
      such
      interest payments to the Swing Line Lender upon receipt thereof in like funds
      as
      received.

          (e) Whenever the
      Administrative Agent is
      reimbursed by the Borrower for the account of the Swing Line Lender for any
      payment in connection with Swing Line Loans and such payment relates to an
      amount previously paid by a Lender pursuant to this Section, the Administrative
      Agent will promptly remit such payment to such Lender.

     2.3 Notice
      of Borrowing
      Revolving Credit Loans and Swing Line Loans

          The Borrower agrees
      to notify the
      Administrative Agent (and with respect to a Swing Line Loan, the Swing Line
      Lender), which notification shall be irrevocable, no later than (a) 12:00 Noon
      on the proposed Borrowing Date in the case of Swing Line Loans, (b) 10:00 A.M.
      on the proposed Borrowing Date in the case of Revolving Credit Loans to consist
      of ABR Advances and (c) 10:00 A.M. at least two Eurodollar Business Days prior
      to the proposed Borrowing Date in the case of Revolving Credit Loans to consist
      of Eurodollar Advances. Each such notice shall specify (i) the aggregate amount
      requested to be borrowed under the Commitments or the Swing Line Commitment,
      (ii) the proposed Borrowing Date, (iii) whether a borrowing of Revolving Credit
      Loans is to be of ABR Advances or Eurodollar Advances, and the amount of each
      thereof (iv) the Eurodollar Interest Period for such Eurodollar Advances and
      (v)

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    the Swing Line
      Interest
      Period for, and the amount of, each Swing Line Loan. Each such notice shall
      be
      promptly confirmed by delivery to the Administrative Agent (and, with respect
      to
      a Swing Line Loan, the Swing Line Lender) of a Borrowing Request. Each
      Eurodollar Advance to be made on a Borrowing Date, when aggregated with all
      amounts to be Converted to Eurodollar Advances on such date and having the
      same
      Interest Period as such Eurodollar Advance, shall equal no less than
      $10,000,000, or an integral multiple of $1,000,000 in excess thereof. Each
      ABR
      Advance made on each Borrowing Date shall equal no less than $5,000,000 or
      an
      integral multiple of $500,000 in excess thereof. Each Swing Line Loan made
      on
      each Borrowing Date shall equal no less than $1,000,000 or an integral multiple
      of $500,000 in excess thereof. The Administrative Agent shall promptly notify
      each Lender (by telephone or otherwise, such notification to be confirmed by
      fax
      or other writing) of each such Borrowing Request. Subject to its receipt of
      each
      such notice from the Administrative Agent and subject to the terms and
      conditions hereof, (A) each Lender shall make immediately available funds
      available to the Administrative Agent at the address therefor set forth in
      Section 11.2 not later than 1:00 P.M. on each Borrowing Date in an amount equal
      to such Lender’s Commitment Percentage of the Revolving Credit Loans requested
      by the Borrower on such Borrowing Date and/or (B) the Swing Line Lender shall
      make immediately available funds available to the Borrower on such Borrowing
      Date in an amount equal to the Swing Line Loan requested by the
      Borrower.

     2.4 Competitive
      Bid
      Loans and Procedure

          (a) Subject to
      the terms and conditions
      hereof, the Borrower may request competitive bid loans under this Agreement
      (each a “Competitive Bid
      Loan”) during the Commitment
      Period. In order to request Competitive Bids, the Borrower shall deliver by
      hand
      or fax to the Administrative Agent a duly completed Competitive Bid Request
      not
      later than 11:00 A.M., one Domestic Business Day before the proposed Borrowing
      Date therefor. A Competitive Bid Request that does not conform substantially
      to
      the format of Exhibit F may be rejected by the Administrative Agent in the
      Administrative Agent’s reasonable discretion, and the Administrative Agent shall
      promptly notify the Borrower of such rejection by fax and telephone. Each
      Competitive Bid Request shall specify (x) the proposed Borrowing Date for the
      Competitive Bid Loans then being requested (which shall be a Domestic Business
      Day) and the aggregate principal amount thereof and (y) the Competitive Interest
      Period or Interest Periods (which shall not exceed ten different Interest
      Periods in a single Competitive Bid Request), with respect thereto (which may
      not end after the Domestic Business Day immediately preceding the Commitment
      Termination Date). Promptly after its receipt of each Competitive Bid Request
      that is not rejected as aforesaid, the Administrative Agent shall invite by
      fax
      (in the form of Exhibit G) the Lenders to bid, on the terms and conditions
      of
      this Agreement, to make Competitive Bid Loans pursuant to such Competitive
      Bid
      Request.

          (b) Each Lender,
      in its sole and absolute
      discretion, may make one or more Competitive Bids to the Borrower responsive
      to
      a Competitive Bid Request. Each Competitive Bid by a Lender must be received
      by
      the Administrative Agent not later than 10:00 A.M. on the proposed Borrowing
      Date for the relevant Competitive Bid Loan. Multiple bids will be accepted
      by
      the Administrative Agent. Bids to make Competitive Bid Loans that do not conform
      substantially to the format of Exhibit H may be rejected by the Administrative
      Agent after conferring with, and upon the instruction of, the Borrower, and
      the
      Administrative Agent shall 

21

    

    
    

    notify the Lender
      making
      such nonconforming bid of such rejection as soon as practicable. Each
      Competitive Bid shall be irrevocable and shall specify (x) the principal amount
      (which (1) shall be in a minimum principal amount of $5,000,000 or an integral
      multiple of $1,000,000 in excess thereof, and (2) may equal the entire principal
      amount requested by the Borrower) of the Competitive Bid Loan or Competitive
      Bid
      Loans that the Lender is willing to make to the Borrower, (y) the Competitive
      Bid Rate or Rates at which the Lender is prepared to make such Competitive
      Bid
      Loan or Competitive Bid Loans, and (z) the Competitive Interest Period with
      respect to each such Competitive Bid Loan and the last day thereof. If any
      Lender shall elect not to make a Competitive Bid, such Lender shall so notify
      the Administrative Agent by fax not later than 10:00 A.M. on the proposed
      Borrowing Date therefor, provided that
      the
      failure by any Lender to give any such notice shall not obligate such Lender
      to
      make any Competitive Bid Loan in connection with the relevant Competitive Bid
      Request.

          (c) With respect
      to each Competitive Bid
      Request, the Administrative Agent shall (i) notify the Borrower by fax by 11:00
      A.M. on the proposed Borrowing Date with respect thereto of each Competitive
      Bid
      made, the Competitive Bid Rate applicable thereto and the identity of the Lender
      that made such Competitive Bid, and (ii) send a list of all Competitive Bids
      to
      the Borrower for its records as soon as practicable after completion of the
      bidding process. Each notice and list sent by the Administrative Agent pursuant
      to this Section 2.4(c) shall list the Competitive Bids in ascending yield
      order.

          (d) The Borrower
      may in its sole and absolute
      discretion, subject only to the provisions of this Section 2.4(d), accept or
      reject any Competitive Bid made in accordance with the procedures set forth
      in
      this Section 2.4, and the Borrower shall notify the Administrative Agent by
      telephone, confirmed by fax in the form of a Competitive Bid Accept/Reject
      Letter, whether and to what extent it has decided to accept or reject any or
      all
      of such Competitive Bids not later than 12:00 Noon on the proposed Borrowing
      Date therefor, provided
      that the
      failure by the Borrower to give such notice shall be deemed to be a rejection
      of
      all such Competitive Bids. In connection with each acceptance of one or more
      Competitive Bids by the Borrower:

               (1) the Borrower
      shall not accept a
      Competitive Bid made at a particular Competitive Bid Rate if the Borrower has
      decided to reject a Competitive Bid made at a lower Competitive Bid Rate unless
      the acceptance of such lower Competitive Bid would subject the Borrower to
      any
      requirement to withhold any taxes or deduct any amount from any amounts payable
      under the Loan Documents, in which case the Borrower may reject such lower
      Competitive Bid,

               (2) the aggregate
      amount of the Competitive
      Bids accepted by the Borrower shall not exceed the principal amount specified
      in
      the Competitive Bid Request therefor,

               (3) if the Borrower
      shall desire to accept a
      Competitive Bid made at a particular Competitive Bid Rate, it must accept all
      other Competitive Bids at such Competitive Bid Rate, except for any such
      Competitive Bid the acceptance of which would subject the Borrower to any
      requirement to withhold any taxes or deduct any amount from any amounts payable
      under the Loan Documents, provided
      that if the
      acceptance of all such other Competitive 

22

    

    
    

    Bids would cause
      the
      aggregate amount of all such accepted Competitive Bids to exceed the amount
      requested, then such acceptance shall be made pro rata in accordance with the
      amount of each such Competitive Bid at such Competitive Bid Rate,

               (4) except pursuant
      to clause (3) above, no
      Competitive Bid shall be accepted unless the Competitive Bid Loan with respect
      thereto shall be in a minimum principal amount of $5,000,000 or an integral
      multiple of $1,000,000 in excess thereof, and

               (5) no Competitive
      Bid shall be accepted and
      no Competitive Bid Loan shall be made, if immediately after giving effect
      thereto, the Aggregate Credit Exposure would exceed the Aggregate Commitment
      Amount.

          (e) The Administrative
      Agent shall promptly
      fax to each bidding Lender (with a copy to the Borrower) a Competitive Bid
      Accept/Reject Letter advising such Lender whether its Competitive Bid has been
      accepted (and if accepted, in what amount and at what Competitive Bid Rate),
      and
      each successful bidder so notified will thereupon become bound, subject to
      the
      other applicable conditions hereof, to make the Competitive Bid Loan in respect
      of which each of its Competitive Bids has been accepted by making immediately
      available funds available to the Administrative Agent at its address set forth
      in Section 11.2 not later than 1:00 P.M. on the Borrowing Date for such
      Competitive Bid Loan in the amount thereof.

          (f) Anything herein
      to the contrary
      notwithstanding, if the Administrative Agent shall elect to submit a Competitive
      Bid in its capacity as a Lender, it shall submit such bid directly to the
      Borrower not later than 9:30 A.M. on the relevant proposed Borrowing
      Date.

          (g) All notices
      required by this Section shall
      be given in accordance with Section 11.2.

          (h) Each Competitive
      Bid Loan shall be due and
      payable on the last day of the Interest Period applicable thereto or on such
      earlier date upon which the Loans shall become due and payable pursuant to
      the
      provisions hereof, whether by acceleration or otherwise.

     2.5 Use
      of
      Proceeds

          The Borrower agrees
      that the proceeds of the
      Loans and Letters of Credit shall be used solely for its general corporate
      purposes not inconsistent with the provisions hereof, including as a backup
      for
      commercial paper issued by the Borrower and to finance in part the consideration
      paid to the Caremark shareholders in connection with the Caremark Merger,
      including any dividends paid to the Caremark shareholders, provided
      that prior to the consummation of the
      Caremark Merger, the Borrower shall not be permitted to borrow hereunder except
      in anticipation of the proposed direct or indirect financing in part of the
      consideration paid or to be paid to the Caremark shareholders in connection
      with
      the Caremark Merger, including any dividends paid or to be paid to the Caremark
      shareholders (which may include a borrowing for the purpose of refunding
      Caremark Merger Anticipatory Commercial Paper). Notwithstanding anything to
      the
      contrary contained in any Loan Document, the Borrower further agrees that no
      part of the proceeds of any Loan or Letter of Credit will be used, directly
      or

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    indirectly, and
      whether
      immediately, incidentally or ultimately (i) for a purpose which violates any
      law, rule or regulation of any Governmental Authority, including the provisions
      of Regulations U or X of the Board of Governors of the Federal Reserve System,
      as amended or any provision of this Agreement, including, without limitation,
      the provisions of Section 4.9 and (ii) to make a loan to any director or
      executive officer of the Borrower or any Subsidiary.

     2.6 Termination
      or
      Reduction of Commitments

          (a) Voluntary
      Termination or Reductions. At the Borrower’s option and upon at
      least
      three Domestic Business Days’ prior irrevocable notice to the Administrative
      Agent, the Borrower may (i) terminate the Commitments, the Swing Line Commitment
      and the Letter of Credit Commitment, at any time, or (ii) permanently reduce
      the
      Aggregate Commitment Amount, the Swing Line Commitment or the Letter of Credit
      Commitment, in part at any time and from time to time, provided
      that (1) each such partial reduction shall be
      in an amount equal to at least (A) in the case of the Aggregate Commitment
      Amount $10,000,000 or an integral multiple of $1,000,000 in excess thereof,
      (B)
      in the case of the Swing Line Commitment, $1,000,000, or an integral multiple
      of
      $1,000,000 in excess thereof, and (C) in the case of the Letter of Credit
      Commitment, $1,000,000, or an integral multiple of $1,000,000 in excess thereof,
      and (2) immediately after giving effect to each such reduction, (A) the
      Aggregate Commitment Amount shall equal or exceed the Aggregate Credit Exposure,
      (B) the Swing Line Commitment shall equal or exceed the aggregate outstanding
      principal balance of all Swing Line Loans and (C) the Letter of Credit
      Commitment shall equal or exceed the Letter of Credit Exposure of all Lenders,
      and provided
      further that a notice of
      termination of the Commitments, the Swing Line Commitment and the Letter of
      Credit Commitment delivered by the Borrower may state that such notice is
      conditioned upon the effectiveness of other credit facilities (such notice
      to
      specify the proposed effective date), in which case such notice may be revoked
      by the Borrower (by notice to the Administrative Agent on or prior to such
      specified effective date) if such condition is not satisfied and the Borrower
      shall indemnify the Lenders in accordance with Section 3.5.

          (b) Mandatory
      Termination or Reductions. If for any reason the
      Caremark Merger
      Effective Date has not occurred on or before November 1, 2007, the Commitments,
      the Swing Line Commitment and the Letter of Credit Commitment shall be
      automatically terminated and the Aggregate Commitment Amount shall be reduced
      to
      zero on November 1, 2007.

          (c) In
      General. Each
      reduction of the Aggregate Commitment Amount shall be made by reducing each
      Lender’s Commitment Amount by a sum equal to such Lender’s Commitment Percentage
      of the amount of such reduction.

     2.7 Prepayments
      of
      Loans

          (a) Voluntary
      Prepayments.
      The Borrower may prepay Revolving Credit Loans, Competitive Bid Loans and Swing
      Line Loans, in whole or in part, without premium or penalty, but subject to
      Section 3.5 at any time and from time to time, by notifying the Administrative
      Agent, which notification shall be irrevocable, at least two Eurodollar Business
      Days, in the case of a prepayment of Eurodollar Advances, two Domestic Business
      Days, in the 

24

    

    
    

    case of Competitive
      Bid
      Loans, or one Domestic Business Day, in the case of a prepayment of Swing Line
      Loans and ABR Advances, prior to the proposed prepayment date specifying (i)
      the
      Loans to be prepaid, (ii) the amount to be prepaid, and (iii) the date of
      prepayment. Upon receipt of each such notice, the Administrative Agent shall
      promptly notify each Lender thereof. Each such notice given by the Borrower
      pursuant to this Section shall be irrevocable, provided
      that, if a notice of prepayment is given in
      connection with a conditional notice of termination of the Commitments, the
      Swing Line Commitment and the Letter of Credit Commitment as contemplated by
      Section 2.6, then such notice of prepayment may be revoked if such notice of
      termination is revoked in accordance with Section 2.6, and the Borrower shall
      indemnify the Lenders in accordance with Section 3.5. Each partial prepayment
      under this Section shall be in a minimum amount of $1,000,000 ($500,000 in
      the
      case of ABR Advances and Swing Line Loans) or an integral multiple of $1,000,000
      ($100,000 in the case of ABR Advances and Swing Line Loans) in excess
      thereof.

          (b) Caremark
      Merger Prepayment. In the event that the
      Borrower borrows Loans hereunder in anticipation
      of the proposed direct or indirect financing in part of the consideration paid
      or to be paid to the Caremark shareholders in connection with the Caremark
      Merger, including any dividends paid or to be paid to the Caremark shareholders
      (which may include a borrowing for the purpose of refunding Caremark Merger
      Anticipatory Commercial Paper), and the closing of the Caremark Merger does
      not
      occur within four Business Days after such borrowing, then the Borrower shall
      prepay such Loans in full no later than the fifth Business Day following such
      borrowing.

          (c) In
      General.
      Simultaneously with each prepayment hereunder, the Borrower shall prepay all
      accrued interest on the amount prepaid through the date of prepayment and
      indemnify the Lenders in accordance with Section 3.5.

     2.8 Letter
      of Credit
      Sub-facility

          (a) Subject to
      the terms and conditions hereof
      and the payment by the Borrower to the Issuer of such fees as the Borrower
      and
      the Issuer shall have agreed in writing, the Issuer agrees, in reliance on
      the
      agreement of the other Lenders set forth in Section 2.9, to issue standby
      letters of credit (each a “Letter of Credit”
      and, collectively, the “Letters of Credit”)
      during the Commitment Period for the account of the Borrower, provided
      that immediately after the issuance of each
      Letter of Credit (i) the Letter of Credit Exposure of all Lenders shall not
      exceed the Letter of Credit Commitment, and (ii) the Aggregate Credit Exposure
      shall not exceed the Aggregate Commitment Amount. Each Letter of Credit shall
      have an expiration date which shall be not later than the earlier to occur
      of
      one year from the date of issuance thereof or 5 days prior to the Commitment
      Termination Date. No Letter of Credit shall be issued if the Administrative
      Agent, or any Lender by notice to the Administrative Agent and the Issuer no
      later than 3:00 P.M. one Domestic Business Day prior to the requested date
      of
      issuance of such Letter of Credit, shall have determined that the conditions
      set
      forth in Sections 5 and/or 6, as applicable have not been
      satisfied.

          (b) Each Letter
      of Credit shall be issued for
      the account of the Borrower in support of an obligation of the Borrower in
      favor
      of a beneficiary who has requested the Issuance 

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    of such Letter
      of Credit
      as a condition to a transaction entered into in connection with the Borrower’s
      ordinary course of business. The Borrower shall give the Administrative Agent
      a
      Letter of Credit Request for the issuance of each Letter of Credit by 12:00
      Noon
      at least two Domestic Business Days prior to the requested date of issuance.
      Such Letter of Credit Request shall be accompanied by the Issuer’s standard
      Application and Agreement for Standby Letter of Credit (each a “Reimbursement Agreement”)
      executed by the Borrower, and shall specify
      (i) the beneficiary of such Letter of Credit and the obligations of the Borrower
      in respect of which such Letter of Credit is to be issued, (ii) the Borrower’s
      proposal as to the conditions under which a drawing may be made under such
      Letter of Credit and the documentation to be required in respect thereof, (iii)
      the maximum amount to be available under such Letter of Credit, and (iv) the
      requested date of issuance. Upon receipt of such Letter of Credit Request from
      the Borrower, the Administrative Agent shall promptly notify the Issuer and
      each
      other Lender thereof. The Issuer shall, on the proposed date of issuance and
      subject to the other terms and conditions of this Agreement, issue the requested
      Letter of Credit. Each Letter of Credit shall be in form and substance
      reasonably satisfactory to the Issuer, with such provisions with respect to
      the
      conditions under which a drawing may be made thereunder and the documentation
      required in respect of such drawing as the Issuer shall reasonably require.
      Each
      Letter of Credit shall be used solely for the purposes described
      therein.

          (c) Each payment
      by the Issuer of a draft
      drawn under a Letter of Credit shall give rise to the obligation of the Borrower
      to immediately reimburse the Issuer for the amount thereof. The Issuer shall
      promptly notify the Borrower of such payment by the Issuer of a draft drawn
      under a Letter of Credit, but any failure to so notify shall not in any manner
      affect the obligation of the Borrower to make reimbursement when due. In lieu
      of
      such notice, if the Borrower has not made reimbursement prior to the end of
      the
      Domestic Business Day when due, the Borrower hereby authorizes the Issuer to
      deduct the amount of any such reimbursement from such account(s) as the Borrower
      may from time to time designate in writing to the Issuer, upon which the Issuer
      shall apply the amount of such deduction to such reimbursement. If all or any
      portion of any reimbursement obligation in respect of a Letter of Credit shall
      not be paid when due (whether at the stated maturity thereof, by acceleration
      or
      otherwise), such overdue amount shall bear interest, payable upon demand, at
      a
      rate per annum equal to the Alternate Base Rate plus
      the Applicable Margin applicable to ABR
      Advances plus
      2%, from the date of such nonpayment until
      paid in full (whether before or after the entry of a judgment
      thereon).

     2.9 Letter
      of Credit
      Participation

          (a) Each Lender
      hereby unconditionally and
      irrevocably, severally (and not jointly) takes an undivided participating
      interest in the obligations of the Issuer under and in connection with each
      Letter of Credit in an amount equal to such Lender’s Commitment Percentage of
      the amount of such Letter of Credit. Each Lender shall be liable to the Issuer
      for its Commitment Percentage of the unreimbursed amount of any draft drawn
      and
      honored under each Letter of Credit. Each Lender shall also be liable for an
      amount equal to the product of its Commitment Percentage and any amounts paid
      by
      the Borrower pursuant to Sections 2.8 and 2.10 that are subsequently rescinded
      or avoided, or must otherwise be restored or returned. Such liabilities shall
      be
      unconditional and without regard to the occurrence of any Default or Event
      of

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    Default or the
      compliance by the Borrower with any of its obligations under the Loan
      Documents.

          (b) The Issuer
      shall promptly notify the
      Administrative Agent, and the Administrative Agent shall promptly notify each
      Lender (which notice shall be promptly confirmed in writing), of the date and
      the amount of each draft paid under each Letter of Credit with respect to which
      full reimbursement payment shall not have been made by the Borrower as provided
      in Section 2.8(c), and forthwith upon receipt of such notice, such Lender shall
      promptly make available to the Administrative Agent for the account of the
      Issuer its Commitment Percentage of the amount of such unreimbursed draft at
      the
      office of the Administrative Agent specified in Section 11.2 in lawful money
      of
      the United States and in immediately available funds. The Administrative Agent
      shall distribute the payments made by each Lender pursuant to the immediately
      preceding sentence to the Issuer promptly upon receipt thereof in like funds
      as
      received. Each Lender shall indemnify and hold harmless the Administrative
      Agent
      and the Issuer from and against any and all losses, liabilities (including
      liabilities for penalties), actions, suits, judgments, demands, costs and
      expenses (including, without limitation, reasonable attorneys’ fees and
      expenses) resulting from any failure on the part of such Lender to provide,
      or
      from any delay in providing, the Administrative Agent with such Lender’s
      Commitment Percentage of the amount of any payment made by the Issuer under
      a
      Letter of Credit in accordance with this clause (b) above (except in respect
      of
      losses, liabilities or other obligations suffered by the Administrative Agent
      or
      the Issuer, as the case may be, resulting from the gross negligence or willful
      misconduct of the Administrative Agent or the Issuer, as the case may be).
      If a
      Lender does not make available to the Administrative Agent when due such
      Lender’s Commitment Percentage of any unreimbursed payment made by the Issuer
      under a Letter of Credit, such Lender shall be required to pay interest to
      the
      Administrative Agent for the account of the Issuer on such Lender’s Commitment
      Percentage of such payment at a rate of interest per annum equal to (i) from
      the
      date such Lender should have made such amount available until the third day
      therefrom, the Federal Funds Effective Rate, and (ii) thereafter, the Federal
      Funds Effective Rate plus
      2%, in each case
      payable upon demand by the Issuer. The Administrative Agent shall distribute
      such interest payments to the Issuer upon receipt thereof in like funds as
      received.

          (c) Whenever the
      Administrative Agent is
      reimbursed by the Borrower, for the account of the Issuer, for any payment
      under
      a Letter of Credit and such payment relates to an amount previously paid by
      a
      Lender in respect of its Commitment Percentage of the amount of such payment
      under such Letter of Credit, the Administrative Agent (or the Issuer, if such
      payment by a Lender was paid by the Administrative Agent to the Issuer) will
      promptly pay over such payment to such Lender.

     2.10 Absolute
      Obligation with respect to Letter of Credit Payments

     The Borrower’s obligation to
      reimburse the Administrative Agent for the
      account of the Issuer for each payment under or in respect of each Letter of
      Credit shall be absolute and unconditional under any and all circumstances
      and
      irrespective of any set-off, counterclaim or defense to payment which the
      Borrower may have or have had against the beneficiary of such Letter of Credit,
      the Administrative Agent, the Issuer, the Swing Line Lender, any Lender or
      any
      other 

27

    

    
    

    Person, including,
      without limitation, any defense based on the failure of any drawing to conform
      to the terms of such Letter of Credit, any drawing document proving to be
      forged, fraudulent or invalid, or the legality, validity, regularity or
      enforceability of such Letter of Credit, provided that,
      with respect to any Letter of Credit,
      the foregoing shall not relieve the Issuer of any liability it may have to
      the
      Borrower for any actual damages sustained by the Borrower arising from a
      wrongful payment (or failure to pay) under such Letter of Credit made as a
      result of the Issuer’s gross negligence or willful misconduct.

     2.11 Notes

     Any Lender may
      request that the Loans made by it be evidenced by a Note.
      In such event, the Borrower shall prepare, execute and deliver to such Lender
      a
      Note payable to the order of such Person or, if requested by such Person, such
      Person and its registered assigns. Thereafter, all Loans evidenced by such
      Note
      and interest thereon shall at all times (including after assignment pursuant
      to
      Section 11.7) be represented by a Note in like form payable to the order of
      the
      payee named therein and its registered assigns.

3.
   PROCEEDS,
      PAYMENTS, CONVERSIONS, INTEREST, YIELD PROTECTION AND FEES

     3.1 Disbursement
      of the
      Proceeds of the Loans

          The Administrative
      Agent shall disburse the
      proceeds of the Loans (other than the Swing Line Loans) at its office specified
      in Section 11.2 by crediting to the Borrower’s general deposit account with the
      Administrative Agent the funds received from each Lender. Unless the
      Administrative Agent shall have received prior notice from a Lender (by
      telephone or otherwise, such notice to be confirmed by fax or other writing)
      that such Lender will not make available to the Administrative Agent such
      Lender’s Commitment Percentage of the Revolving Credit Loans, or the amount of
      any Competitive Bid Loan, to be made by it on a Borrowing Date, the
      Administrative Agent may assume that such Lender has made such amount available
      to the Administrative Agent on such Borrowing Date in accordance with this
      Section, provided
      that, in the
      case of a Revolving Credit Loan, such Lender received notice thereof from the
      Administrative Agent in accordance with the terms hereof, and the Administrative
      Agent may, in reliance upon such assumption, make available to the Borrower
      on
      such Borrowing Date a corresponding amount. If and to the extent such Lender
      shall not have so made such amount available to the Administrative Agent, such
      Lender and the Borrower severally agree to pay to the Administrative Agent,
      forthwith on demand, such corresponding amount (to the extent not previously
      paid by the other), together with interest thereon for each day from the date
      such amount is made available to the Borrower until the date such amount is
      paid
      to the Administrative Agent, at a rate per annum equal to, in the case of the
      Borrower, the applicable interest rate set forth in Section 3.4(a) and, in
      the
      case of such Lender, the Federal Funds Effective Rate from the date such payment
      is due until the third day after such date and, thereafter, at the Federal
      Funds
      Effective Rate plus
      2%. Any such
      payment by the Borrower shall be without prejudice to its rights against such
      Lender. If such Lender shall pay to the Administrative Agent such corresponding
      amount, such amount so paid shall constitute such Lender’s Loan as part of such
      Loans for purposes of this Agreement, which Loan shall be deemed to have been
      made by such Lender on the Borrowing Date applicable to such Loans.

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         3.2 Payments

          (a) Each payment,
      including each prepayment,
      of principal and interest on the Loans and of the Facility Fee, the Utilization
      Fee and the Letter of Credit Participation Fee (collectively, together with
      all
      of the other fees to be paid to the Administrative Agent, the Lenders, the
      Issuer and the Swing Line Lender in connection with the Loan Documents, the
      “Fees”),
      and of all of the other amounts to be paid
      to the Administrative Agent and the Lenders in connection with the Loan
      Documents shall be made by the Borrower to the Administrative Agent at its
      office specified in Section 11.2 without setoff, deduction or counterclaim
      in
      funds immediately available in New York by 3:00 P.M. on the due date for such
      payment. The failure of the Borrower to make any such payment by such time
      shall
      not constitute a default hereunder, provided
      that such
      payment is made on such due date, but any such payment made after 3:00 P.M.
      on
      such due date shall be deemed to have been made on the next Domestic Business
      Day or Eurodollar Business Day, as the case may be, for the purpose of
      calculating interest on amounts outstanding on the Loans. If the Borrower has
      not made any such payment prior to 3:00 P.M., the Borrower hereby authorizes
      the
      Administrative Agent to deduct the amount of any such payment from such
      account(s) as the Borrower may from time to time designate in writing to the
      Administrative Agent, upon which the Administrative Agent shall apply the amount
      of such deduction to such payment. Promptly upon receipt thereof by the
      Administrative Agent, each payment of principal and interest on the: (i)
      Revolving Credit Loans shall be remitted by the Administrative Agent in like
      funds as received to each Lender (a) first, pro rata according to the amount
      of
      interest which is then due and payable to the Lenders, and (b) second, pro
      rata
      according to the amount of principal which is then due and payable to the
      Lenders, (ii) Competitive Bid Loans shall be remitted by the Administrative
      Agent in like funds as received to each applicable Lender and (iii) Swing Line
      Loans shall be remitted by the Administrative Agent in like funds as received
      to
      the Swing Line Lender. Each payment of the Facility Fee and the Letter of Credit
      Participation Fee payable to the Lenders shall be promptly transmitted by the
      Administrative Agent in like funds as received to each Lender pro rata according
      to such Lender’s Commitment Amount or, if the Commitments shall have terminated
      or been terminated, according to the outstanding principal amount of such
      Lender’s Revolving Credit Loans. Each payment of the Utilization Fee payable to
      the Lenders shall be promptly transmitted by the Administrative Agent in like
      funds as received to each Lender in accordance with Section 3.11(b)
      .

          (b) If any payment
      hereunder or under the
      Loans shall be due and payable on a day which is not a Domestic Business Day
      or
      Eurodollar Business Day, as the case may be, the due date thereof (except as
      otherwise provided in the definition of Eurodollar Interest Period or
      Competitive Interest Period) shall be extended to the next Domestic Business
      Day
      or Eurodollar Business Day, as the case may be, and (except with respect to
      payments in respect of the Facility Fee, the Utilization Fee and the Letter
      of
      Credit Participation Fee) interest shall be payable at the applicable rate
      specified herein during such extension.

     3.3 Conversions;
      Other
      Matters

          (a) The Borrower
      may elect at any time and
      from time to time to Convert one or more Eurodollar Advances to an ABR Advance
      by giving the Administrative Agent at least 

29

    

    
    

    one Domestic Business
      Day’s prior irrevocable notice of such election, specifying the amount to be so
      Converted. In addition, the Borrower may elect at any time and from time to
      time
      to Convert an ABR Advance to any one or more new Eurodollar Advances or to
      Convert any one or more existing Eurodollar Advances to any one or more new
      Eurodollar Advances by giving the Administrative Agent no later than 10:00
      a.m.
      at least two Eurodollar Business Days’ prior irrevocable notice, in the case of
      a Conversion to Eurodollar Advances, of such election, specifying the amount
      to
      be so Converted and the initial Interest Period relating thereto,
provided that
      any Conversion of an ABR Advance to
      Eurodollar Advances shall only be made on a Eurodollar Business Day. The
      Administrative Agent shall promptly provide the Lenders with notice of each
      such
      election. Each Conversion of Loans from one Type to another shall be made pro
      rata according to the outstanding principal amount of the Loans of each Lender.
      ABR Advances and Eurodollar Advances may be Converted pursuant to this Section
      in whole or in part, provided
      that the
      amount to be Converted to each Eurodollar Advance, when aggregated with any
      Eurodollar Advance to be made on such date in accordance with Section 2.1 and
      having the same Interest Period as such first Eurodollar Advance, shall equal
      no
      less than $10,000,000 or an integral multiple of $1,000,000 in excess
      thereof.

          (b) Notwithstanding
      anything in this Agreement
      to the contrary, upon the occurrence and during the continuance of a Default
      or
      an Event of Default, the Borrower shall have no right to elect to Convert any
      existing ABR Advance to a new Eurodollar Advance or to Convert any existing
      Eurodollar Advance to a new Eurodollar Advance. In such event, such ABR Advance
      shall be automatically continued as an ABR Advance or such Eurodollar Advance
      shall be automatically Converted to an ABR Advance on the last day of the
      Interest Period applicable to such Eurodollar Advance. The foregoing shall
      not
      affect any other rights or remedies that the Administrative Agent or any Lender
      may have under this Agreement or any other Loan Document.

          (c) Each Conversion
      shall be effected by each
      Lender by applying the proceeds of each new ABR Advance or Eurodollar Advance,
      as the case may be, to the existing Advance (or portion thereof) being Converted
      (it being understood that such Conversion shall not constitute a borrowing
      for
      purposes of Sections 4, 5 or 6).

          (d) Notwithstanding
      any other provision of any
      Loan Document:

               (i) if the Borrower
      shall have failed to elect
      a Eurodollar Advance under Section 2.3 or this Section 3.3, as the case may
      be,
      in connection with any borrowing of new Revolving Credit Loans or expiration
      of
      an Interest Period with respect to any existing Eurodollar Advance, the amount
      of the Revolving Credit Loans subject to such borrowing or such existing
      Eurodollar Advance shall thereafter be an ABR Advance until such time, if any,
      as the Borrower shall elect a new Eurodollar Advance pursuant to this Section
      3.3,

               (ii) the Borrower
      shall not be permitted to
      select a Eurodollar Advance the Interest Period in respect of which ends later
      than the Commitment Termination Date or such earlier date upon which all of
      the
      Commitments shall have been terminated in accordance with Section 2.6,
      and

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                   (iii) the Borrower
      shall not be permitted to
      have more than 15 Eurodollar Advances and Competitive Bid Loans, in the
      aggregate, outstanding at any one time, it being understood and agreed that
      each
      borrowing of Eurodollar Advances or Competitive Bid Loans pursuant to a single
      Borrowing Request or Competitive Bid Request, as the case may be, shall
      constitute the making of one Eurodollar Advance or Competitive Bid Loan for
      the
      purpose of calculating such limitation.

     3.4 Interest
      Rates and
      Payment Dates

          (a) Prior
      to Maturity.
      Except as otherwise provided in Sections 3.4(b) and 3.4(c), the Loans shall
      bear
      interest on the unpaid principal balance thereof at the applicable interest
      rate
      or rates per annum set forth below:

      	LOANS	RATE
	Revolving
              Credit Loans constituting ABR Advances	Alternate
              Base Rate applicable thereto plus the
              Applicable Margin.
	Revolving
              Credit Loans constituting Eurodollar Advances	Eurodollar
              Rate applicable thereto plus the
              Applicable Margin.
	Competitive
              Bid Loans	Fixed
              rate of interest applicable thereto accepted by the Borrower pursuant
              to
              Section 2.4(d).
	Swing
              Line Loans	Negotiated
              Rate applicable thereto as provided in Section
              2.2(a).

    

          (b) After
      Maturity, Late Payment Rate. After maturity, whether
      by acceleration,
      notice of intention to prepay or otherwise, the outstanding principal balance
      of
      the Loans shall bear interest at the Alternate Base Rate plus
      2% per annum until paid (whether before or
      after the entry of any judgment thereon). Any payment of principal, interest
      or
      any Fees not paid on the date when due and payable shall bear interest at the
      Alternate Base Rate plus
      2% per annum from
      the due date thereof until the date such payment is made (whether before or
      after the entry of any judgment thereon).

          (c) Highest
      Lawful Rate.
      Notwithstanding anything to the contrary contained in this Agreement, at no
      time
      shall the interest rate payable to any Lender on any of its Loans, together
      with
      the Fees and all other amounts payable hereunder to such Lender to the extent
      the same constitute or are deemed to constitute interest, exceed the Highest
      Lawful Rate. If in respect of any period during the term of this Agreement,
      any
      amount paid to any Lender hereunder, to the extent the same shall (but for
      the
      provisions of this Section 3.4) constitute or be deemed to constitute interest,
      would exceed the maximum amount of interest permitted by the Highest Lawful
      Rate
      during such period (such amount being hereinafter referred to as an
“Unqualified
      Amount”), then (i) such
      Unqualified Amount shall be applied or shall be deemed to have been applied
      as a
      prepayment of the Loans of such Lender, and (ii) if, in any subsequent

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    period during the
      term
      of this Agreement, all amounts payable hereunder to such Lender in respect
      of
      such period which constitute or shall be deemed to constitute interest shall
      be
      less than the maximum amount of interest permitted by the Highest Lawful Rate
      during such period, then the Borrower shall pay to such Lender in respect of
      such period an amount (each a “Compensatory Interest
      Payment”) equal to the lesser
      of (x) a sum which, when
      added to all such amounts, would equal the maximum amount of interest permitted
      by the Highest Lawful Rate during such period, and (y) an amount equal to the
      aggregate sum of all Unqualified Amounts less
      all other Compensatory Interest
      Payments.

          (d) General.
      Interest
      shall be payable in arrears on each Interest Payment Date, on the Commitment
      Termination Date and, to the extent provided in Section 2.7(c), upon each
      prepayment of the Loans. Any change in the interest rate on the Loans resulting
      from an increase or a decrease in the Alternate Base Rate or any reserve
      requirement shall become effective as of the opening of business on the day
      on
      which such change shall become effective. The Administrative Agent shall, as
      soon as practicable, notify the Borrower and the Lenders of the effective date
      and the amount of each change in the BNY Rate, but any failure to so notify
      shall not in any manner affect the obligation of the Borrower to pay interest
      on
      the Loans in the amounts and on the dates set forth herein. Each determination
      by the Administrative Agent of the Alternate Base Rate, the Eurodollar Rate
      and
      the Competitive Rate pursuant to this Agreement shall be conclusive and binding
      on the Borrower absent manifest error. The Borrower acknowledges that to the
      extent interest payable on the Loans is based on the Alternate Base Rate, such
      rate is only one of the bases for computing interest on loans made by the
      Lenders, and by basing interest payable on ABR Advances on the Alternate Base
      Rate, the Lenders have not committed to charge, and the Borrower has not in
      any
      way bargained for, interest based on a lower or the lowest rate at which the
      Lenders may now or in the future make extensions of credit to other Persons. All
      interest (other than interest calculated with reference to the BNY Rate) shall
      be calculated on the basis of a 360-day year for the actual number of days
      elapsed, and all interest determined with reference to the BNY Rate shall be
      calculated on the basis of a 365/366-day year for the actual number of days
      elapsed.

     3.5 Indemnification
      for
      Loss

     Notwithstanding
      anything contained herein to the contrary, if: (i) the
      Borrower shall fail to borrow a Eurodollar Advance or if the Borrower shall
      fail
      to Convert a Eurodollar Advance after it shall have given notice to do so in
      which it shall have requested a Eurodollar Advance pursuant to Section 2.3
      or
      3.3, as the case may be, (ii) the Borrower shall fail to borrow a Competitive
      Bid Loan after it shall have accepted any offer with respect thereto in
      accordance with Section 2.4 or a Swing Line Loan after it shall have agreed
      to a
      Negotiated Rate with respect thereto in accordance with Section 2.2(a), (iii)
      a
      Eurodollar Advance, Competitive Bid Loan or Swing Line Loan shall be terminated
      for any reason prior to the last day of the Interest Period applicable thereto
      (other than the termination of a Swing Line Loan resulting from a Mandatory
      Borrowing at a time when no Default or Event of Default shall exist), (iv)
      any
      repayment or prepayment of the principal amount of a Eurodollar Advance,
      Competitive Bid Loan or Swing Line Loan is made for any reason on a date which
      is prior to the last day of the Interest Period applicable thereto (other than
      the repayment or prepayment of a Swing Line Loan resulting from a Mandatory
      Borrowing at a time when no Default or Event of Default shall exist), or (v)
      the
      Borrower shall have revoked a 

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    notice of prepayment
      or
      notice of termination of the Commitments, the Swing Line Commitment and the
      Letter of Credit Commitment that was conditioned upon the effectiveness of
      other
      credit facilities pursuant to Section 2.6 or 2.7, the Borrower agrees to
      indemnify each Lender against, and to pay on demand directly to such Lender
      the
      amount (calculated by such Lender using any method chosen by such Lender which
      is customarily used by such Lender for such purpose) equal to any loss or
      expense suffered by such Lender as a result of such failure to borrow or
      Convert, or such termination, repayment, prepayment or revocation, including
      any
      loss, cost or expense suffered by such Lender in liquidating or employing
      deposits acquired to fund or maintain the funding of such Eurodollar Advance,
      Competitive Bid Loan or Swing Line Loan, as the case may be, or redeploying
      funds prepaid or repaid, in amounts which correspond to such Eurodollar Advance,
      Competitive Bid Loan or Swing Line Loan, as the case may be, and any reasonable
      internal processing charge customarily charged by such Lender in connection
      therewith.

     3.6 Reimbursement
      for
      Costs, Etc.

          If at any time
      or from time to time there
      shall occur a Regulatory Change and the Issuer or any Lender shall have
      reasonably determined that such Regulatory Change (i) shall have had or will
      thereafter have the effect of reducing (A) the rate of return on the Issuer’s or
      such Lender’s capital or the capital of any Person directly or indirectly owning
      or controlling the Issuer or such Lender (each a “Control Person”),
      or (B) the asset value (for capital
      purposes) to the Issuer, such Lender or such Control Person, as applicable,
      of
      the Reimbursement Obligations, or any participation therein, or the Loans,
      or
      any participation therein, in any case to a level below that which the Issuer,
      such Lender or such Control Person could have achieved or would thereafter
      be
      able to achieve but for such Regulatory Change (after taking into account the
      Issuer’s, such Lender’s or such Control Person’s policies regarding capital),
      (ii) will impose, modify or deem applicable any reserve, asset, special deposit
      or special assessment requirements on deposits obtained in the interbank
      eurodollar market in connection with the Loan Documents (excluding, with respect
      to any Eurodollar Advance, any such requirement which is included in the
      determination of the rate applicable thereto), (iii) will subject the Issuer,
      such Lender or such Control Person, as applicable, to any tax (documentary,
      stamp or otherwise) with respect to this Agreement, any Note, or any
      Reimbursement Agreement, or (iv) will change the basis of taxation of payments
      to the Issuer, such Lender or such Control Person, as applicable, of principal,
      interest or fees payable under the Loan Documents (except, in the case of
      clauses (iii) and (iv) above, for any tax or changes in the rate of tax on
      the
      Issuer’s, such Lender’s or such Control Person’s net income) then, in each such
      case, within ten days after demand by the Issuer or such Lender, as applicable,
      the Borrower shall pay to the Issuer, such Lender or such Control Person, as
      the
      case may be, such additional amount or amounts as shall be sufficient to
      compensate the Issuer, such Lender or such Control Person, as the case may
      be,
      for any such reduction, reserve or other requirement, tax, loss, cost or expense
      (excluding general administrative and overhead costs) (collectively,
“Costs”)
      attributable to the Issuer’s, such Lender’s
      or such Control Person’s compliance during the term hereof with such Regulatory
      Change. The Issuer and each Lender may make multiple requests for compensation
      under this Section.

          Notwithstanding
      the foregoing, the Borrower
      will not be required to compensate any Lender for any Costs under this Section
      3.6 arising prior to 45 days preceding the date of demand, unless the applicable
      Regulatory Change giving rise to such Costs is imposed retroactively. In the
      

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    case of retroactivity,
      such notice shall be provided to the Borrower not later than 45 days from the
      date that such Lender learned of such Regulatory Change. The Borrower’s
      obligation to compensate such Lender shall be contingent upon the provision
      of
      such timely notice (but any failure by such Lender to provide such timely notice
      shall not affect the Borrower’s obligations with respect to (i) Costs incurred
      from the date as of which such Regulatory Change became effective to the date
      that is 45 days after the date such Lender reasonably should have learned of
      such Regulatory Change and (ii) Costs incurred following the provision of such
      notice).

     3.7 Illegality
      of
      Funding

          Notwithstanding
      any other provision hereof, if
      any Lender shall reasonably determine that any law, regulation, treaty or
      directive, or any change therein or in the interpretation or application
      thereof, shall make it unlawful for such Lender to make or maintain any
      Eurodollar Advance as contemplated by this Agreement, such Lender shall promptly
      notify the Borrower and the Administrative Agent thereof, and (a) the commitment
      of such Lender to make such Eurodollar Advances or Convert ABR Advances to
      such
      Eurodollar Advances shall forthwith be suspended, (b) such Lender shall fund
      its
      portion of each requested Eurodollar Advance as an ABR Advance and (c) such
      Lender’s Loans then outstanding as such Eurodollar Advances, if any, shall be
      Converted automatically to an ABR Advance on the last day of the then current
      Interest Period applicable thereto or at such earlier time as may be required.
      If the commitment of any Lender with respect to Eurodollar Advances is suspended
      pursuant to this Section and such Lender shall have obtained actual knowledge
      that it is once again legal for such Lender to make or maintain Eurodollar
      Advances, such Lender shall promptly notify the Administrative Agent and the
      Borrower thereof and, upon receipt of such notice by each of the Administrative
      Agent and the Borrower, such Lender’s commitment to make or maintain Eurodollar
      Advances shall be reinstated. If the commitment of any Lender with respect
      to
      Eurodollar Advances is suspended pursuant to this Section, such suspension
      shall
      not otherwise affect such Lender’s Commitment.

     3.8 Option
      to Fund;
      Substituted Interest Rate

          (a) Each Lender
      has indicated that, if the
      Borrower requests a Swing Line Loan, a Eurodollar Advance or a Competitive
      Bid
      Loan, such Lender may wish to purchase one or more deposits in order to fund
      or
      maintain its funding of its Commitment Percentage of such Eurodollar Advance
      or
      its Swing Line Loan or Competitive Bid Loan during the Interest Period with
      respect thereto; it being understood that the provisions of this Agreement
      relating to such funding are included only for the purpose of determining the
      rate of interest to be paid in respect of such Swing Line Loan, Eurodollar
      Advance or Competitive Bid Loan and any amounts owing under Sections 3.5 and
      3.6. The Swing Line Lender and each Lender shall be entitled to fund and
      maintain its funding of all or any part of each Swing Line Loan, Eurodollar
      Advance and Competitive Bid Loan in any manner it sees fit, but all such
      determinations hereunder shall be made as if such Lender had actually funded
      and
      maintained its Commitment Percentage of each Eurodollar Advance or its Swing
      Line Loan or Competitive Bid Loan, as the case may be, during the applicable
      Interest Period through the purchase of deposits in an amount equal to the
      amount of its Commitment Percentage of such Eurodollar Advance or the amount
      of
      such Swing Line Loan or Competitive Bid Loan, as the case may be, and having
      a
      maturity corresponding to such 

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    Interest Period.
      Each
      Lender may fund its Loans from or for the account of any branch or office of
      such Lender as such Lender may choose from time to time, subject to Section
      3.10.

          (b) In the event
      that (i) the Administrative
      Agent shall have determined in good faith (which determination shall be
      conclusive and binding upon the Borrower) that by reason of circumstances
      affecting the interbank eurodollar market either adequate and reasonable means
      do not exist for ascertaining the Eurodollar Rate applicable pursuant to Section
      2.3 or Section 3.3, or (ii) the Required Lenders shall have notified the
      Administrative Agent that they have in good faith determined (which
      determination shall be conclusive and binding on the Borrower) that the
      applicable Eurodollar Rate will not adequately and fairly reflect the cost
      to
      such Lenders of maintaining or funding loans bearing interest based on such
      Eurodollar Rate with respect to any portion of the Loans that the Borrower
      has
      requested be made as Eurodollar Advances or any Eurodollar Advance that will
      result from the requested conversion of any portion of the Loans into Eurodollar
      Advances (each, an “Affected
      Advance”), the Administrative
      Agent shall promptly notify the Borrower and the Lenders (by telephone or
      otherwise, to be promptly confirmed in writing) of such determination on or,
      to
      the extent practicable, prior to the requested Borrowing Date or conversion
      date
      for such Affected Advances. If the Administrative Agent shall give such notice,
      (A) any Affected Advances shall be made as ABR Advances (or, subject to the
      terms and conditions hereof, Competitive Bid Loans), (B) the Loans (or any
      portion thereof) that were to have been Converted to Affected Advances shall
      be
      Converted to or continued as ABR Advances (or, subject to the terms and
      conditions hereof, Competitive Bid Loans), and (C) any outstanding Affected
      Advances shall be Converted, on the last day of the then current Interest Period
      with respect thereto, to ABR Advances (or, subject to the terms and conditions
      hereof, Competitive Bid Loans). Until any notice under clauses (i) or (ii),
      as
      the case may be, of this Section 3.8(b) has been withdrawn by the Administrative
      Agent (by notice to the Borrower) promptly upon either (x) the Administrative
      Agent having determined that such circumstances affecting the relevant market
      no
      longer exist and that adequate and reasonable means do exist for determining
      the
      Eurodollar Rate pursuant to Section 2.3 or Section 3.3, or (y) the
      Administrative Agent having been notified by such Required Lenders that
      circumstances no longer render the Loans (or any portion thereof) Affected
      Advances, no further Eurodollar Advances shall be required to be made by the
      Lenders nor shall the Borrower have the right to Convert all or any portion
      of
      the Loans to Eurodollar Advances.

     3.9 Certificates
      of
      Payment and Reimbursement

          Each Issuer and
      each Lender agrees, in
      connection with any request by it for payment or reimbursement pursuant to
      Section 3.5 or 3.6, to provide the Borrower with a certificate, signed by an
      officer of the Issuer or such Lender, as the case may be, setting forth a
      description in reasonable detail of any such payment or reimbursement. Each
      determination by the Issuer and each Lender of such payment or reimbursement
      shall be conclusive absent manifest error.

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         3.10 Taxes;
      Net
      Payments

          (a) All payments
      made by the Borrower under
      the Loan Documents shall be made free and clear of, and without reduction for
      or
      on account of, any taxes required by law to be withheld from any amounts payable
      under the Loan Documents. In the event that the Borrower is prohibited by law
      from making such payments free of deductions or withholdings, then the Borrower
      shall pay such additional amounts to the Administrative Agent, for the benefit
      of the Issuer and the Lenders, as may be necessary in order that the actual
      amounts received by the Issuer and the Lenders in respect of interest and any
      other amounts payable under the Loan Documents after deduction or withholding
      (and after payment of any additional taxes or other charges due as a consequence
      of the payment of such additional amounts) shall equal the amount that would
      have been received if such deduction or withholding were not required. In the
      event that any such deduction or withholding can be reduced or nullified as
      a
      result of the application of any relevant double taxation convention, the
      Lenders, the Issuer and the Administrative Agent will, at the expense of the
      Borrower, cooperate with the Borrower in making application to the relevant
      taxing authorities seeking to obtain such reduction or nullification,
provided
      that the Lenders, the Issuer and the
      Administrative Agent shall have no obligation to (i) engage in any litigation,
      hearing or proceeding with respect thereto or (ii) disclose any tax return
      or
      other confidential information. If the Borrower shall make any payment under
      this Section or shall make any deduction or withholding from amounts paid under
      any Loan Document, the Borrower shall forthwith forward to the Administrative
      Agent original or certified copies of official receipts or other evidence
      acceptable to the Administrative Agent establishing each such payment, deduction
      or withholding, as the case may be, and the Administrative Agent in turn shall
      distribute copies thereof to the Issuer and each Lender. If any payment to
      the
      Issuer or any Lender under any Loan Document is or becomes subject to any
      withholding, the Issuer or such Lender, as the case may be, shall (unless
      otherwise required by a Governmental Authority or as a result of any law, rule,
      regulation, order or similar directive applicable to the Issuer or such Lender,
      as the case may be) designate a different office or branch to which such payment
      is to be made from that initially selected thereby, if such designation would
      avoid such withholding and would not be otherwise disadvantageous to the Issuer
      or such Lender, as the case may be, in any respect. In the event that the Issuer
      or any Lender determines that it received a refund or credit for taxes paid
      by
      the Borrower under this Section, the Issuer or such Lender, as the case may
      be,
      shall promptly notify the Administrative Agent and the Borrower of such fact
      and
      shall remit to the Borrower the amount of such refund or credit applicable
      to
      the payments made by the Borrower in respect of the Issuer or such Lender,
      as
      the case may be, under this Section.

          (b) Any Foreign
      Lender that is entitled to an
      exemption from or reduction of withholding tax under the law of the jurisdiction
      in which the Borrower is located, or any treaty to which such jurisdiction
      is a
      party, with respect to payments under the Loan Documents shall deliver to the
      Borrower (with a copy to the Administrative Agent), at the time or times
      prescribed by applicable law, such properly completed and executed documentation
      prescribed by applicable law or reasonably requested by the Borrower as will
      permit such payments to be made without withholding or at a reduced rate.
      Notwithstanding any provision herein to the contrary, the Borrower shall have
      no
      obligation to pay to any Lender any amount which the Borrower is liable to
      withhold due to the failure of such Lender to file any statement of exemption
      required by the Internal Revenue Code. 

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         3.11 Fees

          (a) Facility
      Fee. The
      Borrower agrees to pay to the Administrative Agent for the pro rata account
      of
      each Lender a fee (the “Facility Fee”)
      during
      the period commencing on the earlier to occur of the Caremark Merger Effective
      Date and July 31, 2007 and ending on the Expiration Date, payable quarterly
      in
      arrears on the last day of each March, June, September and December of each
      year, commencing on the last day of the calendar quarter during which the
      Facility Fee shall commence to accrue, and on the Expiration Date, at a rate
      per
      annum equal to the Applicable Margin of (a) prior to the Commitment Termination
      Date or such earlier date upon which all of the Commitments shall have been
      terminated in accordance with Section 2.6, the Commitment Amount of such Lender
      (whether used or unused), and (b) thereafter, the sum of (i) the outstanding
      principal balance of all Revolving Credit Loans of such Lender, (ii) such
      Lender’s Swing Line Exposure and (iii) such Lender’s Letter of Credit Exposure.
      Notwithstanding anything to the contrary contained in this Section, on and
      after
      the Commitment Termination Date, the Facility Fee shall be payable upon demand.
      In addition, upon each reduction of the Aggregate Commitment Amount, the
      Borrower shall pay the Facility Fee accrued on the amount of such reduction
      through the date of such reduction. The Facility Fee shall be computed on the
      basis of a 360-day year for the actual number of days elapsed.

          (b) Utilization
      Fee. The
      Borrower agrees to pay to the Administrative Agent for the account of each
      Lender a fee (the “Utilization
      Fee”) for each day during
      the
      period commencing on the Effective Date and ending on the Expiration Date (or,
      if later, the date when the Committed Credit Exposure of such Lender is $0)
      that
      the sum of (i) the Aggregate Credit Exposure, (ii) the Aggregate Credit Exposure
      (as defined in the Existing 2004 Five Year Credit Agreement), (iii) the
      Aggregate Credit Exposure (as defined in the Existing 2005 Five Year Credit
      Agreement) and (iv) the Aggregate Credit Exposure (as defined in the Existing
      2006 Five Year Credit Agreement) on such date exceeds 50% of the sum of (i)
      the
      Aggregate Commitment Amount, (ii) the Aggregate Commitment Amount (as defined
      in
      the Existing 2004 Five Year Credit Agreement), (iii) the Aggregate Commitment
      Amount (as defined in the Existing 2005 Five Year Credit Agreement) and (iv)
      the
      Aggregate Commitment Amount (as defined in the Existing 2006 Five Year Credit
      Agreement) on such date, payable on each Interest Payment Date (other than
      an
      Interest Payment Date applicable solely to Competitive Bid Loans) or if Letters
      of Credit are outstanding, but no Revolving Credit Loans or Swing Line Loans
      are
      outstanding, payable on each date that the Letter of Credit Participation Fee
      is
      payable, at a rate per annum equal to the Applicable Margin of the sum of (i)
      the Committed Credit Exposure of such Lender, (ii) the Committed Credit Exposure
      (as defined in the Existing 2004 Five Year Credit Agreement) of such Lender,
      (iii) the Committed Credit Exposure (as defined in the Existing 2005 Five Year
      Credit Agreement) of such Lender and (iv) the Committed Credit Exposure (as
      defined in the Existing 2006 Five Year Credit Agreement) of such Lender on
      such
      date, less
      the sum of (i) the Utilization Fee (as
      defined in the Existing 2004 Five Year Credit Agreement), (ii) the Utilization
      Fee (as defined in the Existing 2005 Five Year Credit Agreement) and (iii)
      the
      Utilization Fee (as defined in the Existing 2006 Five Year Credit Agreement),
      in
      each case payable to such Lender for such day. Notwithstanding anything to
      the
      contrary contained in this Section, on and after the Commitment Termination
      Date, the Utilization Fee shall be payable upon demand. The Utilization Fee
      shall be computed on the basis of a 360-day year for the actual number of days
      elapsed.

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         3.12 Letter
      of Credit
      Participation Fee

          The Borrower agrees
      to pay to the
      Administrative Agent for the pro rata account of each Lender a fee (the
“Letter of Credit
      Participation Fee”) with
      respect to the Letters of Credit during the period commencing on the Effective
      Date and ending on the Commitment Termination Date or, if later, the date when
      the Letter of Credit Exposure of all Lenders is $0, payable quarterly in arrears
      on the last day of each March, June, September and December of each year,
      commencing on the last day of the calendar quarter in which the Effective Date
      shall have occurred, and on the last date of such period, at a rate per annum
      equal to the Applicable Margin of the average daily aggregate amount which
      may
      be drawn under the Letters of Credit during such period (whether or not the
      conditions for drawing thereunder have or may be satisfied) multiplied by such
      Lender’s Commitment Percentage. The Letter of Credit Participation Fee shall be
      computed on the basis of a 360-day year for the actual number of days
      elapsed.

     3.13 Replacement
      of
      Lender

          If the Borrower
      is obligated to pay to any
      Lender any amount under Section 3.6 or 3.10, the Borrower shall have the right
      within 90 days thereafter, in accordance with the requirements of Section
      11.7(b), if no Default or Event of Default shall exist, to replace such Lender
      (the “Replaced
      Lender”) with one or more
      other assignees (each a “Replacement Lender”),
      reasonably acceptable to the Swing Line Lender and the Issuer, provided
      that (i) at the time of any replacement
      pursuant to this Section, the Replacement Lender shall enter into one or more
      Assignment and Acceptance Agreements pursuant to Section 11.7(b) (with the
      processing and recordation fee referred to in Section 11.7(b) payable pursuant
      to said Section 11.7(b) to be paid by the Replacement Lender) pursuant to which
      the Replacement Lender shall acquire the Commitment, the outstanding Loans,
      the
      Swing Line Exposure and the Letter of Credit Exposure of the Replaced Lender
      and, in connection therewith, shall pay the following: (a) to the Replaced
      Lender, an amount equal to the sum of (A) an amount equal to the principal
      of,
      and all accrued interest on, all outstanding Loans and Swing Line Participation
      Amounts of the Replaced Lender, (B) an amount equal to all drawings on all
      Letters of Credit that have been funded by (and not reimbursed to) such Replaced
      Lender, together with all then unpaid interest with respect thereto at such
      time, and (C) an amount equal to all accrued, but unpaid, fees owing to the
      Replaced Lender, (b) to the Issuer, an amount equal to such Replaced Lender’s
      Commitment Percentage of all drawings (which at such time remain unpaid
      drawings) to the extent such amount was not funded by such Replaced Lender,
      (c)
      to the Swing Line Lender, an amount equal to such Replaced Lender’s Commitment
      Percentage of any Mandatory Borrowing to the extent such amount was not funded
      by such Replaced Lender, and (d) to the Administrative Agent an amount equal
      to
      all amounts owed by such Replaced Lender to the Administrative Agent under
      this
      Agreement, including, without limitation, an amount equal to the principal
      of,
      and all accrued interest on, all outstanding Loans of the Replaced Lender,
      a
      corresponding amount of which was made available by the Administrative Agent
      to
      the Borrower pursuant to Section 3.1 and which has not been repaid to the
      Administrative Agent by such Replaced Lender or the Borrower, and (ii) all
      obligations of the Borrower owing to the Replaced Lender (other than those
      specifically described in clause (i) above in respect of which the assignment
      purchase price has been, or is concurrently being, paid) shall be paid in full
      to such Replaced Lender concurrently with such replacement. Upon the execution
      of the respective Assignment and Acceptance Agreements and the payment of
      amounts referred to in 

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    clauses (i) and
      (ii) of
      this Section 3.13, the Replacement Lender shall become a Lender hereunder and
      the Replaced Lender shall cease to constitute a Lender hereunder, except with
      respect to indemnification provisions under this Agreement that are intended
      to
      survive the termination of the Commitments and the repayment of the
      Loans.

4.    REPRESENTATIONS
      AND
      WARRANTIES

          
In order to induce
      the Administrative
      Agent, the Lenders and the Issuer to enter into this Agreement, the Lenders
      to
      make the Loans and the Issuer to issue Letters of Credit, the Borrower hereby
      makes the following representations and warranties to the Administrative Agent,
      the Lenders and the Issuer:

     4.1 Existence
      and
      Power

          Each of the Borrower
      and the Subsidiaries is
      duly organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or formation (except, in the case of the
      Subsidiaries, where the failure to be in such good standing could not reasonably
      be expected to have a Material Adverse effect), has all requisite corporate
      power and authority to own its Property and to carry on its business as now
      conducted, and is qualified to do business as a foreign corporation and is
      in
      good standing in each jurisdiction in which it owns or leases real Property
      or
      in which the nature of its business requires it to be so qualified (except
      those
      jurisdictions where the failure to be so qualified or to be in good standing
      could not reasonably be expected to have a Material Adverse
      effect).

     4.2 Authority

          The Borrower has
      full corporate power and
      authority to enter into, execute, deliver and perform the terms of the Loan
      Documents, all of which have been duly authorized by all proper and necessary
      corporate action and are not in contravention of any applicable law or the
      terms
      of its Certificate of Incorporation and By-Laws. No consent or approval of,
      or
      other action by, shareholders of the Borrower, any Governmental Authority,
      or
      any other Person (which has not already been obtained) is required to authorize
      in respect of the Borrower, or is required in connection with the execution,
      delivery, and performance by the Borrower of the Loan Documents or is required
      as a condition to the enforceability of the Loan Documents against the
      Borrower.

     4.3 Binding
      Agreement

          The Loan Documents
      constitute the valid and
      legally binding obligations of the Borrower, enforceable in accordance with
      their respective terms, except as such enforceability may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting the enforcement of creditors’ rights generally and by equitable
      principles relating to the availability of specific performance as a
      remedy.

     4.4 Litigation

          As at February
      2, 2007, there were no actions,
      suits, arbitration proceedings or claims (whether purportedly on behalf of
      the
      Borrower, any Subsidiary or otherwise) pending or, 

39

    

    
    

    to the knowledge
      of the
      Borrower, threatened against the Borrower or any Subsidiary or any of their
      respective Properties, or maintained by the Borrower or any Subsidiary, at
      law
      or in equity, before any Governmental Authority which could reasonably be
      expected to have a Material Adverse effect. There are no proceedings pending
      or,
      to the knowledge of the Borrower, threatened against the Borrower or any
      Subsidiary (a) which call into question the validity or enforceability of any
      Loan Document, or otherwise seek to invalidate, any Loan Document, or (b) which
      might, individually or in the aggregate, materially and adversely affect any
      of
      the transactions contemplated by any Loan Document (it being understood that
      the
      Caremark Merger is not a transaction contemplated by any Loan Document for
      purposes of this clause (b)).

     4.5 No
      Conflicting
      Agreements

          (a) Neither the
      Borrower nor any Subsidiary is
      in default under any agreement to which it is a party or by which it or any
      of
      its Property is bound the effect of which could reasonably be expected to have
      a
      Material Adverse effect. No notice to, or filing with, any Governmental
      Authority is required for the due execution, delivery and performance by the
      Borrower of the Loan Documents.

          (b) No provision
      of any existing material
      mortgage, material indenture, material contract or material agreement or of
      any
      existing statute, rule, regulation, judgment, decree or order binding on the
      Borrower or any Subsidiary or affecting the Property of the Borrower or any
      Subsidiary conflicts with, or requires any consent which has not already been
      obtained under, or would in any way prevent the execution, delivery or
      performance by the Borrower of the terms of, any Loan Document. The execution,
      delivery or performance by the Borrower of the terms of each Loan Document
      will
      not constitute a default under, or result in the creation or imposition of,
      or
      obligation to create, any Lien upon the Property of the Borrower or any
      Subsidiary pursuant to the terms of any such mortgage, indenture, contract
      or
      agreement.

     4.6 Taxes

          The Borrower and
      each Subsidiary has filed or
      caused to be filed all tax returns, and has paid, or has made adequate provision
      for the payment of, all taxes shown to be due and payable on said returns or
      in
      any assessments made against them, the failure of which to file or pay could
      reasonably be expected to have a Material Adverse effect, and no tax Liens
      (other than Liens permitted under Section 8.2) have been filed against the
      Borrower or any Subsidiary and no claims are being asserted with respect to
      such
      taxes which are required by GAAP to be reflected in the Financial Statements
      and
      are not so reflected, except for taxes which have been assessed but which are
      not yet due and payable. The charges, accruals and reserves on the books of
      the
      Borrower and each Subsidiary with respect to all federal, state, local and
      other
      taxes are considered by the management of the Borrower to be adequate, and
      the
      Borrower knows of no unpaid assessment which (a) could reasonably be expected
      to
      have a Material Adverse effect, or (b) is or might be due and payable against
      it
      or any Subsidiary or any Property of the Borrower or any Subsidiary, except
      such
      thereof as are being contested in good faith and by appropriate proceedings
      diligently conducted, and for which adequate reserves have been set aside in
      accordance with GAAP or which have been assessed but are not yet due and
      payable.

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         4.7 Compliance
      with
      Applicable Laws; Filings

          Neither the Borrower
      nor any Subsidiary is in
      default with respect to any judgment, order, writ, injunction, decree or
      decision of any Governmental Authority which default could reasonably be
      expected to have a Material Adverse effect. The Borrower and each Subsidiary
      is
      complying with all applicable statutes, rules and regulations of all
      Governmental Authorities, a violation of which could reasonably be expected
      to
      have a Material Adverse effect. The Borrower and each Subsidiary has filed
      or
      caused to be filed with all Governmental Authorities all reports, applications,
      documents, instruments and information required to be filed pursuant to all
      applicable laws, rules, regulations and requests which, if not so filed, could
      reasonably be expected to have a Material Adverse effect.

     4.8 Governmental
      Regulations

          Neither the Borrower
      nor any Subsidiary nor
      any corporation controlling the Borrower or any Subsidiary or under common
      control with the Borrower or any Subsidiary is subject to regulation under
      the
      Investment Company Act of 1940, as amended, or is subject to any statute or
      regulation which regulates the incurrence of Indebtedness.

     4.9 Federal
      Reserve
      Regulations; Use of Proceeds

          The Borrower is
      not engaged principally, or as
      one of its important activities, in the business of extending credit for the
      purpose of purchasing or carrying any margin stock within the meaning of
      Regulation U of the Board of Governors of the Federal Reserve System, as
      amended. No part of the proceeds of the Loans or the Letters of Credit has
      been
      or will be used, directly or indirectly, and whether immediately, incidentally
      or ultimately, for a purpose which violates any law, rule or regulation of
      any
      Governmental Authority, including, without limitation, the provisions of
      Regulations T, U or X of the Board of Governors of the Federal Reserve System,
      as amended. Anything in this Agreement to the contrary notwithstanding, neither
      the Issuer nor any Lender shall be obligated to extend credit to or on behalf
      of
      the Borrower in violation of any limitation or prohibition provided by any
      applicable law, regulation or statute, including said Regulation U. Following
      application of the proceeds of each Loan and the issuance of each Letter of
      Credit, not more than 25% (or such greater or lesser percentage as is provided
      in the exclusions from the definition of “Indirectly
      Secured”
      contained in said
      Regulation U as in effect at the time of the making of such Loan or issuance
      of
      such Letter of Credit) of the value of the assets of the Borrower and the
      Subsidiaries on a Consolidated basis that are subject to Section 8.2 will be
      Margin Stock. In addition, no part of the proceeds of any Loan or Letter of
      Credit will be used, whether directly or indirectly, and whether immediately,
      incidentally or ultimately, to make a loan to any director or executive officer
      of the Borrower or any Subsidiary.

     4.10 No
      Misrepresentation

          No representation
      or warranty contained in any
      Loan Document and no certificate or written report furnished by the Borrower
      to
      the Administrative Agent or any Lender pursuant to any Loan Document contains
      or
      will contain, as of its date, a misstatement of material fact, or omits or
      will
      omit to state, as of its date, a material fact required to be stated in order
      to
      make the statements 

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    therein contained
      not
      misleading in the light of the circumstances under which made (it being
      understood that the Borrower makes no representation or warranty hereunder
      with
      respect to any projections or other forward looking information).

     4.11 Plans

          Each Employee Benefit
      Plan of the Borrower,
      each Subsidiary and each ERISA Affiliate is in compliance with ERISA and the
      Internal Revenue Code, where applicable, except where the failure to so comply
      would not be material. The Borrower, each Subsidiary and each ERISA Affiliate
      have complied with the material requirements of Section 515 of ERISA with
      respect to each Pension Plan which is a Multiemployer Plan, except where the
      failure to so comply would not be material. The Borrower, each Subsidiary and
      each ERISA Affiliate has, as of the date hereof, made all contributions or
      payments to or under each Pension Plan required by law or the terms of such
      Pension Plan or any contract or agreement. No liability to the PBGC has been,
      or
      is reasonably expected by the Borrower, any Subsidiary or any ERISA Affiliate
      to
      be, incurred by the Borrower, any Subsidiary or any ERISA Affiliate. Liability,
      as referred to in this Section 4.11, includes any joint and several liability,
      but excludes any current or, to the extent it represents future liability in
      the
      ordinary course, any future liability for premiums under Section 4007 of ERISA.
      Each Employee Benefit Plan which is a group health plan within the meaning
      of
      Section 5000(b)(1) of the Internal Revenue Code is in material compliance with
      the continuation of health care coverage requirements of Section 4980B of the
      Internal Revenue Code and with the portability, nondiscrimination and other
      requirements of Sections 9801, 9802, 9803, 9811 and 9812 of the Internal Revenue
      Code.

     4.12 Environmental
      Matters

          Neither the Borrower
      nor any Subsidiary (a)
      has received written notice or otherwise learned of any claim, demand, action,
      event, condition, report or investigation indicating or concerning any potential
      or actual liability which individually or in the aggregate could reasonably
      be
      expected to have a Material Adverse effect, arising in connection with (i)
      any
      non-compliance with or violation of the requirements of any applicable federal,
      state or local environmental health or safety statute or regulation, or (ii)
      the
      release or threatened release of any toxic or hazardous waste, substance or
      constituent, or other substance into the environment, (b) to the best knowledge
      of the Borrower, has any threatened or actual liability in connection with
      the
      release or threatened release of any toxic or hazardous waste, substance or
      constituent, or other substance into the environment which individually or
      in
      the aggregate could reasonably be expected to have a Material Adverse effect,
      (c) has received notice of any federal or state investigation evaluating whether
      any remedial action is needed to respond to a release or threatened release
      of
      any toxic or hazardous waste, substance or constituent or other substance into
      the environment for which the Borrower or any Subsidiary is or would be liable,
      which liability would reasonably be expected to have a Material Adverse effect,
      or (d) has received notice that the Borrower or any Subsidiary is or may be
      liable to any Person under the Comprehensive Environmental Response,
      Compensation and Liability Act, as amended, 42 U.S.C. Section 9601
et seq.,
      or any analogous state law, which liability
      would reasonably be expected to have a Material Adverse effect. The Borrower
      and
      each Subsidiary is in compliance with the financial responsibility requirements
      of federal and state environmental laws to the extent applicable, including
      those contained in 40 C.F.R., parts 264 and 

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    265, subpart H,
      and any
      analogous state law, except in those cases in which the failure so to comply
      would not reasonably be expected to have a Material Adverse effect.

     4.13 Financial
      Statements

          The Borrower has
      heretofore delivered to the
      Lenders through the Administrative Agent copies of the audited Consolidated
      Balance Sheet of the Borrower and its Subsidiaries as of December 30, 2006,
      and
      the related Consolidated Statements of Operations, Shareholders’ Equity and Cash
      Flows for the fiscal year then ended. The financial statements referred to
      immediately above, including all related notes and schedules, are herein
      referred to collectively as the “Financial Statements”.
      The Financial Statements fairly present the Consolidated financial
      condition and results of the operations of the Borrower and the Subsidiaries
      as
      of the dates and for the periods indicated therein and, except as noted therein,
      have been prepared in conformity with GAAP as then in effect. Neither the
      Borrower nor any of the Subsidiaries has any obligation or liability of any
      kind
      (whether fixed, accrued, contingent, unmatured or otherwise) which, in
      accordance with GAAP as then in effect, should have been disclosed in the
      Financial Statements and was not. During the period from December 30, 2006
      to
      and including February 2, 2007 there was no Material Adverse change, including
      as a result of any change in law, in the consolidated financial condition,
      operations, business or Property of the Borrower and the Subsidiaries taken
      as a
      whole.

5. CONDITIONS
      OF LENDING - FIRST LOANS AND
      LETTERS OF CREDIT ON THE FIRST BORROWING DATE

          In addition to
      the requirements set forth in
      Section 6, the obligation of each Lender on the first Borrowing Date to make
      one
      or more Revolving Credit Loans, the Swing Line Lender to make one or more Swing
      Line Loans, the Issuer to issue one or more Letters of Credit and any Lender
      to
      make a Competitive Bid Loan are subject to the fulfillment of the following
      conditions precedent prior to or simultaneously with the Effective
      Date:

     5.1 Evidence
      of
      Corporate Action

          The Administrative
      Agent shall have received a
      certificate, dated the Effective Date, of the Secretary or an Assistant
      Secretary of the Borrower (i) attaching a true and complete copy of the
      resolutions of its Board of Directors and of all documents evidencing all other
      necessary corporate action (in form and substance reasonably satisfactory to
      the
      Administrative Agent) taken by the Borrower to authorize the Loan Documents
      and
      the transactions contemplated thereby, (ii) attaching a true and complete copy
      of its Certificate of Incorporation and By-Laws, (iii) setting forth the
      incumbency of the officer or officers of the Borrower who may sign the Loan
      Documents and any other certificates, requests, notices or other documents
      now
      or in the future required thereunder, and (iv) attaching a certificate of good
      standing of the Secretary of State of the State of Delaware.

     5.2 Notes

          The Administrative
      Agent shall have received a
      Note for each Lender that shall have requested one, executed by the
      Borrower.

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         5.3 Opinion
      of Counsel
      to the Borrower

          The Administrative
      Agent shall have
      received:

          (a) an opinion
      of Zenon Lankowsky, counsel to
      the Borrower, dated the Effective Date, and in the form of Exhibit D-1;
      and

          (b) an opinion
      of Davis Polk & Wardwell,
      special counsel to the Borrower, dated the Effective Date, and in the form
      of
      Exhibit D-2.

6. CONDITIONS
      OF LENDING - ALL LOANS AND LETTERS
      OF CREDIT

     The obligation
      of each Lender on any Borrowing Date to make each
      Revolving Credit Loan (other than a Revolving Credit Loan constituting a
      Mandatory Borrowing), the Swing Line Lender to make each Swing Line Loan, the
      Issuer to issue each Letter of Credit and any Lender to make a Competitive
      Bid
      Loan are subject to the fulfillment of the following conditions
      precedent:

     6.1 Compliance

          On each Borrowing
      Date, and after giving
      effect to the Loans to be made or the Letters of Credit to be issued on such
      Borrowing Date, (a) there shall exist no Default or Event of Default, and (b)
      the representations and warranties contained in this Agreement shall be true
      and
      correct with the same effect as though such representations and warranties
      had
      been made on such Borrowing Date, except those which are expressly specified
      to
      be made as of an earlier date.

     6.2 Requests

          The Administrative
      Agent shall have received
      either or both, as applicable, of a Borrowing Request or a Letter of Credit
      Request from the Borrower.

     6.3 Loan
      Closings

          All documents required
      by the provisions of
      this Agreement to have been executed or delivered by the Borrower to the
      Administrative Agent, any Lender or the Issuer on or before the applicable
      Borrowing Date shall have been so executed or delivered on or before such
      Borrowing Date.

7. AFFIRMATIVE
      COVENANTS

     The Borrower covenants
      and agrees that on and after the Effective Date
      and until the later to occur of (a) the Commitment Termination Date and (b)
      the
      payment in full of the Loans, the Reimbursement Obligations, the Fees and all
      other sums payable under the Loan Documents, the Borrower will:

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         7.1 Legal
      Existence

          Except as may otherwise
      be permitted by
      Sections 8.3 and 8.4, maintain, and cause each Subsidiary to maintain, its
      corporate existence in good standing in the jurisdiction of its incorporation
      or
      formation and in each other jurisdiction in which the failure so to do could
      reasonably be expected to have a Material Adverse effect, except that the
      corporate existence of Subsidiaries operating closing or discontinued operations
      may be terminated.

     7.2 Taxes

          Pay and discharge
      when due, and cause each
      Subsidiary so to do, all taxes, assessments, governmental charges, license
      fees
      and levies upon or with respect to the Borrower and such Subsidiary, and upon
      the income, profits and Property thereof unless, and only to the extent, that
      either (i)(a) such taxes, assessments, governmental charges, license fees and
      levies shall be contested in good faith and by appropriate proceedings
      diligently conducted by the Borrower or such Subsidiary, and (b) such reserve
      or
      other appropriate provision as shall be required by GAAP shall have been made
      therefor, or (ii) the failure to pay or discharge such taxes, assessments,
      governmental charges, license fees and levies could not reasonably be expected
      to have a Material Adverse effect.

     7.3 Insurance

          Keep, and cause
      each Subsidiary to keep,
      insurance with responsible insurance companies in such amounts and against
      such
      risks as is usually carried by the Borrower or such Subsidiary.

     7.4 Performance
      of
      Obligations

          Pay and discharge
      promptly when due, and cause
      each Subsidiary so to do, all lawful Indebtedness, obligations and claims for
      labor, materials and supplies or otherwise which, if unpaid, could reasonably
      be
      expected to (a) have a Material Adverse effect, or (b) become a Lien on the
      Property of the Borrower or any Subsidiary, except those Liens permitted under
      Section 8.2, provided
      that neither
      the Borrower nor such Subsidiary shall be required to pay or discharge or cause
      to be paid or discharged any such Indebtedness, obligation or claim so long
      as
      (i) the validity thereof shall be contested in good faith and by appropriate
      proceedings diligently conducted by the Borrower or such Subsidiary, and (ii)
      such reserve or other appropriate provision as shall be required by GAAP shall
      have been made therefor.

     7.5 Condition
      of
      Property

          Except for ordinary
      wear and tear, at all
      times, maintain, protect and keep in good repair, working order and condition,
      all material Property necessary for the operation of its business (other than
      Property which is replaced with similar Property) as then being operated, and
      cause each Subsidiary so to do.

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         7.6 Observance
      of Legal
      Requirements

          Observe and comply
      in all material respects,
      and cause each Subsidiary so to do, with all laws, ordinances, orders,
      judgments, rules, regulations, certifications, franchises, permits, licenses,
      directions and requirements of all Governmental Authorities, which now or at
      any
      time hereafter may be applicable to it or to such Subsidiary, a violation of
      which could reasonably be expected to have a Material Adverse
      effect.

     7.7 Financial
      Statements and Other Information

          Maintain, and cause
      each Subsidiary to
      maintain, a standard system of accounting in accordance with GAAP, and furnish
      to each Lender:

          (a) As soon as
      available and, in any event,
      within 120 days after the close of each fiscal year, a copy of (x) the
      Borrower’s 10-K in respect of such fiscal year, and (y) (i) the Borrower’s
      Consolidated Balance Sheet as of the end of such fiscal year, and (ii) the
      related Consolidated Statements of Operations, Shareholders’ Equity and Cash
      Flows, as of and through the end of such fiscal year, setting forth in each
      case
      in comparative form the corresponding figures in respect of the previous fiscal
      year, all in reasonable detail, and accompanied by a report of the Borrower’s
      auditors, which report shall state that (A) such auditors audited such financial
      statements, (B) such audit was made in accordance with generally accepted
      auditing standards in effect at the time and provides a reasonable basis for
      such opinion, and (C) said financial statements have been prepared in accordance
      with GAAP;

          (b) As soon as
      available, and in any event
      within 60 days after the end of each of the first three fiscal quarters of
      each
      fiscal year, a copy of (x) the Borrower’s 10-Q in respect of such fiscal
      quarter, and (y) (i) the Borrower’s Consolidated Balance Sheet as of the end of
      such quarter and (ii) the related Consolidated Statements of Operations,
      Shareholders’ Equity and Cash Flows for (A) such quarter and (B) the period from
      the beginning of the then current fiscal year to the end of such quarter, in
      each case in comparable form with the prior fiscal year, all in reasonable
      detail and prepared in accordance with GAAP (without footnotes and subject
      to
      year-end adjustments);

          (c) Simultaneously
      with the delivery of the
      financial statements required by clauses (a) and (b) above, a certificate of
      the
      chief financial officer or treasurer of the Borrower certifying that no Default
      or Event of Default shall have occurred or be continuing or, if so, specifying
      in such certificate all such Defaults and Events of Default, and setting forth
      computations in reasonable detail demonstrating compliance with Sections 8.1
      and
      8.9.

          (d) Prompt notice
      upon the Borrower becoming
      aware of any change in a Pricing Level;

          (e) Promptly upon
      becoming available, copies
      of all regular or periodic reports (including current reports on Form 8-K)
      which
      the Borrower or any Subsidiary may now or hereafter be required to file with
      or
      deliver to the Securities and Exchange Commission, or any 

46

    

    
    

    other Governmental
      Authority succeeding to the functions thereof, and copies of all material news
      releases sent to all stockholders;

          (f) Prompt written
      notice of: (i) any
      citation, summons, subpoena, order to show cause or other order naming the
      Borrower or any Subsidiary a party to any proceeding before any Governmental
      Authority which could reasonably be expected to have a Material Adverse effect,
      and include with such notice a copy of such citation, summons, subpoena, order
      to show cause or other order, (ii) any lapse or other termination of any
      license, permit, franchise or other authorization issued to the Borrower or
      any
      Subsidiary by any Governmental Authority, (iii) any refusal by any Governmental
      Authority to renew or extend any license, permit, franchise or other
      authorization, and (iv) any dispute between the Borrower or any Subsidiary
      and
      any Governmental Authority, which lapse, termination, refusal or dispute,
      referred to in clause (ii), (iii) or (iv) above, could reasonably be expected
      to
      have a Material Adverse effect;

          (g) Prompt written
      notice of the occurrence of
      (i) each Default, (ii) each Event of Default and (iii) each Material Adverse
      change;

          (h) Promptly upon
      receipt thereof, copies of
      any audit reports delivered in connection with the statements referred to in
      Section 7.7(a);

          (i) From time to
      time, such other information
      regarding the financial position or business of the Borrower and the
      Subsidiaries as the Administrative Agent, at the request of any Lender, may
      reasonably request; and

          (j) Prompt written
      notice of such other
      information with documentation required by bank regulatory authorities under
      applicable “know your customer” and Anti-Money Laundering rules and regulations
      (including, without limitation, the Patriot Act), as from time to time may
      be
      reasonably requested by the Administrative Agent or any Lender.

     7.8 Records

          Upon reasonable
      notice and during normal
      business hours, permit representatives of the Administrative Agent and each
      Lender to visit the offices of the Borrower and each Subsidiary, to examine
      the
      books and records (other than tax returns and work papers related to tax
      returns) thereof and auditors’ reports relating thereto, to discuss the affairs
      of the Borrower and each Subsidiary with the respective officers thereof, and
      to
      meet and discuss the affairs of the Borrower and each Subsidiary with the
      Borrower’s auditors.

     7.9 Authorizations

          Maintain and cause
      each Subsidiary to
      maintain, in full force and effect, all copyrights, patents, trademarks, trade
      names, franchises, licenses, permits, applications, reports, and other
      authorizations and rights, which, if not so maintained, would individually
      or in
      the aggregate have a Material Adverse effect.

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    8.
   NEGATIVE
      COVENANTS

          The Borrower covenants
      and agrees that on and
      after the Effective Date and until the later to occur of (a) the Commitment
      Termination Date and (b) the payment in full of the Loans, the Reimbursement
      Obligations, the Fees and all other sums which are payable under the Loan
      Documents, the Borrower will not:

     8.1 Subsidiary
      Indebtedness

          Permit the Indebtedness
      of all Subsidiaries
      (excluding the ESOP Guaranty) to exceed (on a combined basis) 10% of Tangible
      Net Worth.

     8.2 Liens

          Create, incur,
      assume or suffer to exist any
      Lien against or on any Property now owned or hereafter acquired by the Borrower
      or any of the Subsidiaries, or permit any of the Subsidiaries so to do, except
      any one or more of the following types of Liens: (a) Liens in connection with
      workers’ compensation, unemployment insurance or other social security
      obligations (which phrase shall not be construed to refer to ERISA or the
      minimum funding obligations under Section 412 of the Code), (b) Liens to secure
      the performance of bids, tenders, letters of credit, contracts (other than
      contracts for the payment of Indebtedness), leases, statutory obligations,
      surety, customs, appeal, performance and payment bonds and other obligations
      of
      like nature, in each such case arising in the ordinary course of business,
      (c)
      mechanics’, workmen’s, carriers’, warehousemen’s, materialmen’s, landlords’ or
      other like Liens arising in the ordinary course of business with respect to
      obligations which are not due or which are being contested in good faith and
      by
      appropriate proceedings diligently conducted, (d) Liens for taxes, assessments,
      fees or governmental charges the payment of which is not required by Section
      7.2, (e) easements, rights of way, restrictions, leases of Property to others,
      easements for installations of public utilities, title imperfections and
      restrictions, zoning ordinances and other similar encumbrances affecting
      Property which in the aggregate do not materially impair its use for the
      operation of the business of the Borrower or such Subsidiary, (f) Liens on
      Property of the Subsidiaries under capital leases and Liens on Property of
      the
      Subsidiaries acquired (whether as a result of purchase, capital lease, merger
      or
      other acquisition) and either existing on such Property when acquired, or
      created contemporaneously with or within 12 months of such acquisition to secure
      the payment or financing of the purchase price of such Property (including
      the
      construction, development, substantial repair, alteration or improvement
      thereof), and any renewals thereof, provided
      that such
      Liens attach only to the Property so purchased or acquired (including any such
      construction, development, substantial repair, alteration or improvement
      thereof) and provided
      further that the Indebtedness
      secured by such Liens is permitted by Section 8.1, (g) statutory Liens in favor
      of lessors arising in connection with Property leased to the Borrower or any
      of
      the Subsidiaries, (h) Liens of attachments, judgments or awards against the
      Borrower or any of the Subsidiaries with respect to which an appeal or
      proceeding for review shall be pending or a stay of execution or bond shall
      have
      been obtained, or which are otherwise being contested in good faith and by
      appropriate proceedings diligently conducted, and in respect of which adequate
      reserves shall have been established in accordance with GAAP on the books of
      the
      Borrower or such Subsidiary, (i) Liens securing Indebtedness of a Subsidiary
      to
      the Borrower or another Subsidiary, (j) Liens (other than 

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    Liens permitted
      by any
      of the foregoing clauses) arising in the ordinary course of its business which
      do not secure Indebtedness and do not, in the aggregate, materially detract
      from
      the value of the business of the Borrower and its Subsidiaries, taken as a
      whole, and (k) additional Liens securing Indebtedness of the Borrower and the
      Subsidiaries in an aggregate outstanding Consolidated principal amount not
      exceeding 10% of Tangible Net Worth.

     8.3 Dispositions

          Make any Disposition,
      or permit any of its
      Subsidiaries so to do, of all or substantially all of the assets of the Borrower
      and the Subsidiaries on a Consolidated basis.

     8.4 Merger
      or
      Consolidation, Etc.

          The Borrower will
      not consolidate with, be
      acquired by, or merge into or with any Person unless (x) immediately after
      giving effect thereto no Default or Event of Default shall or would exist and
      (y) either (i) the Borrower or (ii) a corporation organized and existing under
      the laws of one of the States of the United States of America shall be the
      survivor of such consolidation or merger, provided
      that if the Borrower is not the survivor, the
      corporation which is the survivor shall expressly assume, pursuant to an
      instrument executed and delivered to the Administrative Agent, and in form
      and
      substance satisfactory to the Administrative Agent, all obligations of the
      Borrower under the Loan Documents and the Administrative Agent shall have
      received such documents, opinions and certificates as it shall have reasonable
      requested in connection therewith.

     8.5 Acquisitions

          Make any Acquisition,
      or permit any of the
      Subsidiaries so to do, except any one or more of the following: (a) Intercompany
      Dispositions permitted by Section 8.3 and (b) Acquisitions by the Borrower
      or
      any of the Subsidiaries (including the Caremark Merger), provided
      that immediately before and after giving
      effect to each such Acquisition no Default or Event of Default shall or would
      exist.

     8.6 Restricted
      Payments

          Make any Restricted
      Payment or permit any of
      the Subsidiaries so to do, except any one or more of the following Restricted
      Payments: (a) any direct or indirect Subsidiary may make dividends or other
      distributions to the Borrower or to any other direct or indirect Subsidiary,
      and
      (b) the Borrower may make Restricted Payments, provided
      that, in the case of this clause (b),
      immediately before and after giving effect thereto, no Event of Default shall
      or
      would exist. Nothing in this Section 8.6 shall prohibit or restrict the
      declaration or payment of dividends in respect of the Series One ESOP
      Convertible Preferred Stock of the Borrower.

     8.7 Limitation
      on
      Upstream Dividends by Subsidiaries

          Permit or cause
      any of the Subsidiaries to
      enter into or agree, or otherwise be or become subject, to any agreement,
      contract or other arrangement (other than this Agreement) with any Person (each
      a “Restrictive
      Agreement”) pursuant to the
      terms of which (a) such Subsidiary is or would be prohibited from declaring
      or
      paying any cash dividends on any class of its stock owned 

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    directly or indirectly
      by the Borrower or any of the other Subsidiaries or from making any other
      distribution on account of any class of any such stock (herein referred to
      as
“Upstream
      Dividends”), or (b) the
      declaration or payment of Upstream Dividends by a Subsidiary to the Borrower
      or
      another Subsidiary, on an annual or cumulative basis, is or would be otherwise
      limited or restricted (“Dividend Restrictions”).
      Notwithstanding the foregoing, nothing in this Section 8.7 shall
      prohibit:

               (i) Dividend Restrictions
      set forth in any
      Restrictive Agreement in effect on the date hereof and any extensions,
      refinancings, renewals or replacements thereof, provided that
      the Dividend Restrictions in any such
      extensions, refinancings, renewals or replacements are no less favorable in
      any
      material respect to the Lenders than those Dividend Restrictions that are then
      in effect and that are being extended, refinanced, renewed or
      replaced;

               (ii) Dividend Restrictions
      existing with
      respect to any Person acquired by the Borrower or any Subsidiary and existing
      at
      the time of such acquisition, which Dividend Restrictions are not applicable
      to
      any Person or the property or assets of any Person other than such Person or
      its
      property or assets acquired, and any extensions, refinancings, renewals or
      replacements of any of the foregoing, provided
      that the
      Dividend Restrictions in any such extensions, refinancings, renewals or
      replacements are no less favorable in any material respect to the Lenders than
      those Dividend Restrictions that are then in effect and that are being extended,
      refinanced, renewed or replaced;

               (iii) Dividend
      Restrictions consisting of
      customary net worth, leverage and other financial covenants, customary covenants
      regarding the merger of or sale of assets of a Subsidiary, customary
      restrictions on transactions with affiliates, and customary subordination
      provisions governing Indebtedness owed to the Borrower or any Subsidiary, in
      each case contained in, or required by, any agreement governing Indebtedness
      incurred by a Subsidiary in accordance with Section 8.1; or

               (iv) Dividend Restrictions
      contained in any
      other credit agreement so long as such Dividend Restrictions are no more
      restrictive than those contained in this Agreement (including Dividend
      Restrictions contained in the Existing 2004 Five Year Credit Agreement, the
      Existing 2005 Five Year Credit Agreement, the Existing 2006 Five Year Credit
      Agreement, the 2007 Bridge Credit Agreement and the 2007 364 Day Credit
      Agreement).

     8.8 Limitation
      on
      Negative Pledges

          Enter into any
      agreement, other than (i) this
      Agreement, (ii) the 2007 Bridge Credit Agreement, (iii) the 2007 364 Day Credit
      Agreement, (iv) any other credit agreement that is substantially similar to
      this
      Agreement, and (v) purchase money mortgages or capital leases permitted by
      this
      Agreement (in which cases, any prohibition or limitation shall only be effective
      against the assets financed thereby), or permit any Subsidiary so to do, which
      prohibits or limits the ability of the Borrower or such Subsidiary to create,
      incur, assume or suffer to exist any Lien upon any of its Property or revenues,
      whether now owned or hereafter acquired to secure the obligations of the
      Borrower hereunder.

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         8.9 Ratio
      of
      Consolidated Indebtedness to Total Capitalization

          Permit its ratio
      of Consolidated Indebtedness
      to Total Capitalization at the end of any fiscal quarter to exceed 0.6 :
      1.0.

     8.10 Caremark
      Merger

          (a) Amend the Caremark
      Merger Agreement if
      such amendment has the effect of (i) increasing the purchase price to be paid
      by
      the Borrower thereunder by a material amount, (ii) increasing the liabilities
      of
      the Borrower thereunder by a material amount, or (iii) decreasing the assets
      being acquired thereunder by the Borrower by a material amount, in each case,
      without the consent of the Administrative Agent.

          (b) Waive any material
      condition to the
      obligations of the sellers under the Caremark Merger Agreement to consummate
      the
      transactions contemplated by the Caremark Merger Agreement without the consent
      of the Administrative Agent.

9.    DEFAULT

     9.1 Events
      of
      Default

          The following shall
      each constitute an
“Event of
      Default”
      hereunder:

          (a) The failure
      of the Borrower to make any
      payment of principal on any Loan or any reimbursement payment in respect of
      any
      Letter of Credit when due and payable; or

          (b) The failure
      of the Borrower to make any
      payment of interest on any Loan or of any Fee on any date when due and payable
      and such default shall continue unremedied for a period of 5 Domestic Business
      Days after the same shall be due and payable; or

          (c) The failure
      of the Borrower to observe or
      perform any covenant or agreement contained in Sections 2.5, 7.1 or in Section
      8; or

          (d) The failure
      of the Borrower to observe or
      perform any other covenant or agreement contained in this Agreement, and such
      failure shall have continued unremedied for a period of 30 days after the
      Borrower shall have become aware of such failure; or

          (e) An Event of
      Default (as defined in any
      Reimbursement Agreement) shall occur under any Reimbursement Agreement;
      or

          (f) Any representation
      or warranty of the
      Borrower (or of any of its officers on its behalf) made in any Loan Document,
      or
      made in any certificate, report, opinion (other than an opinion of counsel)
      or
      other document delivered on or after the date hereof shall in any such case
      prove to have been incorrect or misleading (whether because of misstatement
      or
      omission) in any material respect when made; or

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              (g) (i) Obligations
      in an aggregate
      Consolidated amount in excess of $25,000,000 of the Borrower (other than its
      obligations hereunder and under the Notes) and the Subsidiaries, whether as
      principal, guarantor, surety or other obligor, for the payment of any
      Indebtedness or any net liability under interest rate swap, collar, exchange
      or
      cap agreements, (A) shall become or shall be declared to be due and payable
      prior to the expressed maturity thereof, or (B) shall not be paid when due
      or
      within any grace period for the payment thereof, or (ii) any holder of any
      such
      obligations shall have the right to declare the Indebtedness evidenced thereby
      due and payable prior to its stated maturity; or

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

          (i) The Borrower
      or any Subsidiary shall (i)
      voluntarily commence any proceeding or file any petition seeking liquidation,
      reorganization or other relief under any federal, state or foreign bankruptcy,
      insolvency, receivership or similar law now or hereafter in effect, (ii) consent
      to the institution of, or fail to contest in a timely and appropriate manner,
      any proceeding or petition described in clause (h) of this Article, (iii) apply
      for or consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Borrower or any Subsidiary
      or for a substantial part of its assets, (iv) file an answer admitting the
      material allegations of a petition filed against it in any such proceeding,
      (v)
      make a general assignment for the benefit of creditors or (vi) take any action
      for the purpose of effecting any of the foregoing; or

          (j) The Borrower
      or any Subsidiary shall (i)
      suspend or discontinue its business (except for store closings in the ordinary
      course of business and except in connection with a permitted Disposition under
      Section 8.3 and as may otherwise be expressly permitted herein), or (ii)
      generally not be paying its debts as such debts become due, or (iii) admit
      in
      writing its inability to pay its debts as they become due; or

          (k) Judgments or
      decrees in an aggregate
      Consolidated amount in excess of $25,000,000 against the Borrower and the
      Subsidiaries shall remain unpaid, unstayed on appeal, undischarged, unbonded
      or
      undismissed for a period of 60 days during which execution shall not be
      effectively stayed, or any action shall be legally taken by a judgment creditor
      to attach or levy upon any assets of the Borrower or any Subsidiary to enforce
      any such judgment; or

          (l) After the Effective
      Date a Change of
      Control shall occur; or

          (m) (i) Any Termination
      Event shall occur (x)
      with respect to any Pension Plan (other than a Multiemployer Plan) or (y) with
      respect to any other retirement plan subject to Section 302 of ERISA or Section
      412 of the Internal Revenue Code, which plan, during the five 

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    year period prior
      to
      such Termination Event, was the responsibility in whole or in part of the
      Borrower, any Subsidiary or any ERISA Affiliate, provided
      that this clause (y) shall only apply if, in
      connection with such Termination Event, it is reasonably likely that liability
      in an aggregate Consolidated amount in excess of $25,000,000 will be imposed
      upon the Borrower, any Subsidiary or any ERISA Affiliate; (ii) any Accumulated
      Funding Deficiency, whether or not waived, in an aggregate Consolidated amount
      in excess of $25,000,000 shall exist with respect to any Pension Plan (other
      than that portion of a Multiemployer Plan’s Accumulated Funding Deficiency to
      the extent such Accumulated Funding Deficiency is attributable to employers
      other than Borrower, any Subsidiary or any ERISA Affiliate); (iii) any Person
      shall engage in any Prohibited Transaction involving any Employee Benefit Plan;
      (iv) the Borrower, any Subsidiary or any ERISA Affiliate shall fail to pay
      when
      due an amount which is payable by it to the PBGC or to a Pension Plan (including
      a Multiemployer Plan) under Title IV of ERISA; (v) the imposition of any tax
      under Section 4980(B)(a) of the Internal Revenue Code; or (vi) the assessment
      of
      a civil penalty with respect to any Employee Benefit Plan under Section 502(c)
      of ERISA; in each case, to the extent such event or condition would have a
      Material Adverse effect.

     9.2 Remedies

          (a) Upon the occurrence
      of an Event of Default
      or at any time thereafter during the continuance of an Event of Default, the
      Administrative Agent, at the written request of the Required Lenders, shall
      notify the Borrower that the Commitments, the Swing Line Commitment and the
      Letter of Credit Commitment have been terminated and/or that all of the Loans,
      the Notes and the Reimbursement Obligations and all accrued and unpaid interest
      on any thereof and all other amounts owing under the Loan Documents have been
      declared immediately due and payable, provided
      that upon the
      occurrence of an Event of Default under Section 9.1(h), (i) or (j) with respect
      to the Borrower, the Commitments, the Swing Line Commitment and the Letter
      of
      Credit Commitment shall automatically terminate and all of the Loans, the Notes
      and the Reimbursement Obligations and all accrued and unpaid interest on any
      thereof and all other amounts owing under the Loan Documents shall become
      immediately due and payable without declaration or notice to the Borrower.
      To
      the fullest extent not prohibited by law, except for the notice provided for
      in
      the preceding sentence, the Borrower expressly waives any presentment, demand,
      protest, notice of protest or other notice of any kind in connection with the
      Loan Documents and its obligations thereunder. To the fullest extent not
      prohibited by law, the Borrower further expressly waives and covenants not
      to
      assert any appraisement, valuation, stay, extension, redemption or similar
      law,
      now or at any time hereafter in force which might delay, prevent or otherwise
      impede the performance or enforcement of the Loan Documents.

          (b) In the event
      that the Commitments, the
      Swing Line Commitment and the Letter of Credit Commitment shall have been
      terminated or all of the Loans, the Notes and the Reimbursement Obligations
      shall have been declared due and payable pursuant to the provisions of this
      Section, (i) the Borrower shall forthwith deposit an amount equal to the Letter
      of Credit Exposure in a cash collateral account with and under the exclusive
      control of the Administrative Agent, and (ii) the Administrative Agent, the
      Issuer and the Lenders agree, among themselves, that any funds received from
      or
      on behalf of the Borrower under any Loan Document by the Issuer or any Lender
      (except funds received by the Issuer or any Lender as a result of a purchase
      from the Issuer or such Lender, as the case may be, pursuant to the provisions
      of Section 11.9(b)) 

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    shall be remitted
      to the
      Administrative Agent, and shall be applied by the Administrative Agent in
      payment of the Loans, the Reimbursement Obligations and the other obligations
      of
      the Borrower under the Loan Documents in the following manner and order: (1)
      first, to reimburse the Administrative Agent, the Issuer and the Lenders, in
      that order, for any expenses due from the Borrower pursuant to the provisions
      of
      Section 11.5 and the Reimbursement Agreements, (2) second, to the payment of
      the
      Fees, (3) third, to the payment of any expenses or amounts (other than the
      principal of and interest on the Loans and the Notes and the Reimbursement
      Obligations) payable by the Borrower to the Administrative Agent, the Issuer
      or
      any of the Lenders under the Loan Documents, (4) fourth, to the payment, pro
      rata according to the outstanding principal balance of the Loans and the Letter
      of Credit Exposure of each Lender, of interest due on the Loans and the
      Reimbursement Obligations, (5) fifth, to the payment, pro rata according to
      the
      sum of (A) the aggregate outstanding principal balance of the Loans of each
      Lender plus
      (B) the aggregate outstanding balance of the
      Reimbursement Obligations of each Lender, of the aggregate outstanding principal
      balance of the Loans and the aggregate outstanding balance of the Reimbursement
      Obligations, and (6) sixth, any remaining funds shall be paid to whosoever
      shall
      be entitled thereto or as a court of competent jurisdiction shall
      direct.

          (c) In the event
      that the Loans and the Notes
      and the Reimbursement Obligations shall have been declared due and payable
      pursuant to the provisions of this Section 9.2, the Administrative Agent upon
      the written request of the Required Lenders, shall proceed to enforce the
      Reimbursement Obligations and the rights of the holders of the Loans and the
      Notes by suit in equity, action at law and/or other appropriate proceedings,
      whether for payment or the specific performance of any covenant or agreement
      contained in the Loan Documents. In the event that the Administrative Agent
      shall fail or refuse so to proceed, the Issuer and each Lender shall be entitled
      to take such action as the Required Lenders shall deem appropriate to enforce
      its rights under the Loan Documents.

10.    AGENT

     10.1 Appointment

          Each Lender hereby
      irrevocably designates and
      appoints BNY as the Administrative Agent of such Lender under the Loan Documents
      and each Lender irrevocably authorizes the Administrative Agent to take such
      action on its behalf under the provisions of the Loan Documents and to exercise
      such powers and perform such duties as are expressly delegated to the
      Administrative Agent by the terms of the Loan Documents, together with such
      other powers as are reasonably incidental thereto. Notwithstanding any provision
      to the contrary contained in the Loan Documents, the Administrative Agent shall
      not have any duties or responsibilities except those expressly set forth in
      the
      Loan Documents, or any fiduciary relationship with any Lender, and no implied
      covenants, functions, responsibilities, duties, obligations or liabilities
      shall
      be read into the Loan Documents or otherwise exist against the Administrative
      Agent.

     10.2 Delegation
      of
      Duties

          The Administrative
      Agent may execute any of
      its duties under the Loan Documents by or through agents or attorneys-in-fact
      and shall be entitled to rely upon the advice of counsel 

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    concerning all
      matters
      pertaining to such duties, and shall not be liable for any action taken or
      omitted to be taken in good faith upon the advice of such counsel.

     10.3 Exculpatory
      Provisions

          None of the Administrative
      Agent or any of its
      officers, directors, employees, agents, attorneys-in-fact or Affiliates shall
      be
      (i) liable for any action lawfully taken or omitted to be taken by the
      Administrative Agent or such Person under or in connection with the Loan
      Documents (except the Administrative Agent for its own gross negligence or
      willful misconduct), or (ii) responsible in any manner to any of the Lenders
      for
      any recitals, statements, representations or warranties made by any party
      contained in the Loan Documents or in any certificate, report, statement or
      other document referred to or provided for in, or received by the Administrative
      Agent under or in connection with, the Loan Documents or for the value,
      validity, effectiveness, genuineness, enforceability or sufficiency of any
      of
      the Loan Documents or for any failure of the Borrower or any other Person to
      perform its obligations thereunder. The Administrative Agent shall not be under
      any obligation to any Lender to ascertain or to inquire into the observance
      or
      performance of any of the covenants or agreements contained in, or conditions
      of, the Loan Documents, or to inspect the Property, books or records of the
      Borrower or any Subsidiary. The Administrative Agent shall not be under any
      liability or responsibility to the Borrower or any other Person as a consequence
      of any failure or delay in performance, or any breach, by any Lender of any
      of
      its obligations under any of the Loan Documents. The Lenders acknowledge that
      the Administrative Agent shall not be under any duty to take any discretionary
      action permitted under the Loan Documents unless the Administrative Agent shall
      be requested in writing to do so by the Required Lenders.

     10.4 Reliance
      by
      Administrative Agent

          The Administrative
      Agent shall be entitled to
      rely, and shall be fully protected in relying, upon any writing, resolution,
      notice, request, consent, certificate, affidavit, opinion, letter, cablegram,
      telegram, fax, telex or teletype message, statement, order or other document
      or
      conversation reasonably believed by it to be genuine and correct and to have
      been signed, sent or made by the proper Person or Persons and upon advice and
      statements of legal counsel (including counsel to the Borrower), independent
      accountants and other experts selected by the Administrative Agent. The
      Administrative Agent shall not be under any duty to examine or pass upon the
      validity, effectiveness or genuineness of the Loan Documents or any instrument,
      document or communication furnished pursuant thereto or in connection therewith,
      and the Administrative Agent shall be entitled to assume that the same are
      valid, effective and genuine, have been signed or sent by the proper parties
      and
      are what they purport to be. The Administrative Agent shall be fully justified
      in failing or refusing to take any action not expressly required under the
      Loan
      Documents unless it shall first receive such advice or concurrence of the
      Required Lenders as it deems appropriate. The Administrative Agent shall in
      all
      cases be fully protected in acting, or in refraining from acting, under the
      Loan
      Documents in accordance with a request of the Required Lenders or, if required
      by Section 11.1, all Lenders, and such request and any action taken or failure
      to act pursuant thereto shall be binding upon the Borrower, all the Lenders
      and
      all future holders of the Notes.

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         10.5 Notice
      of
      Default

          The Administrative
      Agent shall not be deemed
      to have knowledge or notice of the occurrence of any Default or Event of Default
      unless the Administrative Agent shall have received written notice thereof
      from
      a Lender or the Borrower referring to this Agreement, describing such Default
      or
      Event of Default and stating such notice is a “Notice
      of Default.”
In
      the event that the
      Administrative Agent receives such a notice, the Administrative Agent shall
      promptly give notice thereof to the Lenders. The Administrative Agent shall
      take
      such action with respect to such Default or Event of Default as shall be
      reasonably directed by the Required Lenders, provided
      that unless and until the Administrative
      Agent shall have received such directions, the Administrative Agent may (but
      shall not be obligated to) take such action or give such directions, or refrain
      from taking such action or giving such directions, with respect to such Default
      or Event of Default as it shall deem to be in the best interests of the
      Lenders.

     10.6 Non-Reliance

          Each Lender expressly
      acknowledges that
      neither the Administrative Agent nor any of its officers, directors, employees,
      agents, attorneys-in-fact or Affiliates has made any representations or
      warranties to such Lender and that no act by the Administrative Agent hereafter,
      including any review of the affairs of the Borrower or the Subsidiaries, shall
      be deemed to constitute any representation or warranty by the Administrative
      Agent to any Lender. Each Lender represents to the Administrative Agent that
      such Lender has, independently and without reliance upon the Administrative
      Agent or any other Lender, and based on such documents and information as it
      has
      deemed appropriate, made its own evaluation of and investigation into the
      business, operations, Property, financial and other condition and
      creditworthiness of the Borrower and the Subsidiaries and has made its own
      decision to enter into this Agreement. Each Lender also represents that it
      will,
      independently and without reliance upon the Administrative Agent or any other
      Lender, and based on such documents and information as it shall deem appropriate
      at the time, continue to make its own credit analysis, evaluations and decisions
      in taking or not taking action under the Loan Documents, and to make such
      investigation as it deems necessary to inform itself as to the business,
      operations, Property, financial and other condition and creditworthiness of
      the
      Borrower and the Subsidiaries. Each Lender acknowledges that a copy of this
      Agreement and all exhibits and schedules hereto have been made available to
      it
      and its individual counsel for review, and each Lender acknowledges that it
      is
      satisfied with the form and substance thereof. Except for notices, reports
      and
      other documents expressly required to be furnished to the Lenders by the
      Administrative Agent hereunder, the Administrative Agent shall have no duty
      or
      responsibility to provide any Lender with any credit or other information
      concerning the business, operations, Property, financial and other condition
      or
      creditworthiness of the Borrower or the Subsidiaries which may come into the
      possession of the Administrative Agent or any of its officers, directors,
      employees, agents, attorneys-in-fact or Affiliates.

     10.7 Administrative
      Agent in Its Individual Capacity

          BNY and each Affiliate
      thereof, may make loans
      to, accept deposits from, issue letters of credit for the account of and
      generally engage in any kind of business with the Borrower and the Subsidiaries
      as though it were not the Administrative Agent. With respect to the

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    Commitment made
      or
      renewed by BNY and each Note issued to BNY (if any), BNY shall have the same
      rights and powers under the Loan Documents as any Lender and may exercise the
      same as though it were not the Administrative Agent, the Issuer and the Swing
      Line Lender, and the term “Lender”
      shall include BNY.

     10.8 Successor
      Administrative Agent

          If at any time
      the Administrative Agent deems
      it advisable, in its sole discretion, it may submit to each Lender a written
      notification of its resignation as Administrative Agent under the Loan
      Documents, such resignation to be effective on the earlier to occur of (a)
      the
      thirtieth day after the date of such notice, and (b) the date upon which any
      successor to the Administrative Agent, in accordance with the provisions of
      this
      Section, shall have accepted in writing its appointment as successor
      Administrative Agent. Upon any such resignation, the Required Lenders shall
      have
      the right to appoint from among the Lenders a successor Administrative Agent,
      which successor Administrative Agent, provided
      that no
      Default or Event of Default shall then exist, shall be reasonably satisfactory
      to the Borrower. If no such successor Administrative Agent shall have been
      so
      appointed by the Required Lenders and accepted such appointment within 30 days
      after the retiring Administrative Agent’s giving of notice of resignation, then
      the retiring Administrative Agent may, on behalf of the Lenders, appoint a
      successor Administrative Agent, which successor Administrative Agent shall
      be a
      commercial bank organized or licensed under the laws of the United States of
      America or of any State thereof and having a combined capital and surplus of
      at
      least $500,000,000. Upon the written acceptance of any appointment as
      Administrative Agent hereunder by a successor Administrative Agent, such
      successor Administrative Agent shall automatically become a party to this
      Agreement and 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’s rights, powers, privileges and duties as
      Administrative Agent under the Loan Documents shall be terminated. The Borrower
      and the Lenders shall execute such documents as shall be necessary to effect
      such appointment. After any retiring Administrative Agent’s resignation as
      Administrative Agent, the provisions of this Section 10 shall inure to its
      benefit as to any actions taken or omitted to be taken by it while it was the
      Administrative Agent. If at any time there shall not be a duly appointed and
      acting Administrative Agent, upon notice duly given, the Borrower agrees to
      make
      each payment when due under the Loan Documents directly to the Lenders entitled
      thereto during such time.

     10.9 Co-Syndication
      Agents and Documentation Agent

          The Co-Syndication
      Agents and the
      Documentation Agent shall have no duties or obligations under the Loan Documents
      in their capacities as Co-Syndication Agents or Documentation Agent,
      respectively.

11.    OTHER
      PROVISIONS

     11.1 Amendments,
      Waivers, Etc.

          With the written
      consent of the Required
      Lenders, the Administrative Agent and the Borrower may, from time to time,
      enter
      into written amendments, supplements or modifications of 

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    the Loan Documents
      and,
      with the written consent of the Required Lenders, the Administrative Agent
      on
      behalf of the Lenders may execute and deliver to any such parties a written
      instrument waiving or consenting to the departure from, on such terms and
      conditions as the Administrative Agent may specify in such instrument, any
      of
      the requirements of the Loan Documents or any Default or Event of Default and
      its consequences, provided
that
      no such amendment,
      supplement, modification, waiver or consent shall (i) increase the Commitment
      Amount of any Lender without the consent of such Lender (provided
      that no waiver of a Default or Event of
      Default shall be deemed to constitute such an increase), (ii) extend the
      Commitment Period without the consent of each Lender directly affected thereby,
      (iii) reduce the amount, or extend the time of payment, of the Fees without
      the
      consent of each Lender directly affected thereby, (iv) reduce the rate, or
      extend the time of payment of, interest on any Revolving Credit Loan, any Note
      or any Reimbursement Obligation (other than the applicability of any
      post-default increase in such rate of interest) without the consent of each
      Lender directly affected thereby, (v) reduce the amount, or extend the time
      of
      payment of any payment of any Reimbursement Obligation or principal on any
      Revolving Credit Loan or any Note without the consent of each Lender directly
      affected thereby, (vi) decrease or forgive the principal amount of any Revolving
      Credit Loan, any Note or any Reimbursement Obligation without the consent of
      each Lender directly affected thereby, (vii) consent to any assignment or
      delegation by the Borrower of any of its rights or obligations under any Loan
      Document without the consent of each Lender, (viii) change the provisions of
      this Section 11.1 without the consent of each Lender, (ix) change the definition
      of Required Lenders without the consent of each Lender, (x) change the several
      nature of the obligations of the Lenders without the consent of each Lender,
      (xi) change the sharing provisions among Lenders without the consent of each
      Lender, or (xii) extend the expiration date of a Letter of Credit beyond the
      Commitment Termination Date without the consent of each Lender. Notwithstanding
      the foregoing, no such amendment, supplement, modification, waiver or consent
      shall (A) amend, modify or waive any provision of Section 10 or otherwise change
      any of the rights or obligations of the Administrative Agent, the Issuer or
      the
      Swing Line Lender under any Loan Document without the written consent of the
      Administrative Agent, the Issuer or the Swing Line Lender, as the case may
      be,
      (B) change the Letter of Credit Commitment, change the amount or the time of
      payment of the Letter of Credit Commissions, or change any other term or
      provision which relates to the Letter of Credit Commitment or the Letters of
      Credit without the written consent of the Issuer, (C) change the Swing Line
      Commitment, change the amount or the time of payment of the Swing Line Loans
      or
      interest thereon or change any other term or provision which relates to the
      Swing Line Commitment or the Swing Line Loans without the written consent of
      the
      Swing Line Lender or (D) change the amount or the time of payment of any
      Competitive Bid Loan or interest thereon without the written consent of the
      Lender holding such Competitive Bid Loan. Any such amendment, supplement,
      modification, waiver or consent shall apply equally to each of the Lenders
      and
      shall be binding upon the parties to the applicable Loan Document, the Lenders,
      the Administrative Agent and all future holders of the Loans and the Notes
      and
      the Reimbursement Obligations. In the case of any waiver, the Borrower, the
      Lenders and the Administrative Agent shall be restored to their former position
      and rights under the Loan Documents, but any Default or Event of Default waived
      shall not extend to any subsequent or other Default or Event of Default, or
      impair any right consequent thereon.

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         11.2 Notices

          Except in the case
      of notices and other
      communications expressly permitted to be given by telephone, all notices and
      other communications provided for herein shall be in writing and shall be
      delivered by hand or overnight courier service, mailed by certified or
      registered mail or sent by facsimile, as follows:

     If to the Borrower:

      	 	CVS
              Corporation
	 	1
              CVS
              Drive
	 	Woonsocket,
              Rhode Island 02895
	 	Attention:	Carol
              A. DeNale
	 	 	Treasury
              Department
	 	Facsimile:	(401)
              770-5768
	 	Telephone:	(401)
              770-4407

    

         with a copy, in
      the case of a notice of Default or Event of Default,
      to:

      	 	CVS
              Corporation
	 	1
              CVS
              Drive
	 	Woonsocket,
Rhode
              Island 02895
	 	Attention:	Legal
              Department
	 	Facsimile:	(401)
              765-7887
	 	Telephone:	(401)
              765-1500

    

         If to the Administrative
      Agent, the Swing Line
      Lender and the Issuer:

      	 	
              in the
                case of
                each Borrowing Request, each notice of prepayment under Section 2.7,
                each
                Letter of Credit Request, each Competitive Bid Request, each Competitive
                Bid, and each Competitive Bid Accept/Reject Letter:

            
	 	 
	 	The
              Bank
              of New York
	 	One
              Wall
              Street
	 	New
              York,
              New York 10286
	 	Attention:	Kareen
              Sinclair,
	 	 	Agency
              Function Administration
	 	Facsimile:	(212)
              635-6365, 6366 or 6367
	 	Telephone:	(212)
              635-4696,
	 	 	 
	 	
              and in
                all other
                cases:

            

    

    59

    

    
    

    
      	 	The
              Bank
              of New York
	 	Retailing
              Industry Division
	 	19th
              Floor
	 	One
              Wall
              Street
	 	New
              York,
              New York 10286
	 	Attention:	William
              M. Barnum,
	 	 	Managing
              Director
	 	Facsimile:	(212)
              635-1481
	 	Telephone:	(212)
              635-1019

    

         If to any Lender:
      to it at its address (or facsimile number)
      set forth in its Administrative Questionnaire.

Any party hereto
      may
      change its address or facsimile number for notices and other communications
      hereunder by notice to the other parties hereto (or, in the case of any Lender,
      by notice to the Administrative Agent and the Borrower). All notices and other
      communications given to any party hereto in accordance with the provisions
      of
      this Agreement shall be deemed to have been given on the date of receipt. Any
      party to a Loan Document may rely on signatures of the parties thereto which
      are
      transmitted by fax or other electronic means as fully as if originally
      signed.

     11.3 No
      Waiver;
      Cumulative Remedies

          No failure to exercise
      and no delay in
      exercising, on the part of the Administrative Agent, any Lender or the Issuer,
      any right, remedy, power or privilege under any Loan Document shall operate
      as a
      waiver thereof, nor shall any single or partial exercise of any right, remedy,
      power or privilege under any Loan Document preclude any other or further
      exercise thereof or the exercise of any other right, remedy, power or privilege.
      The rights, remedies, powers and privileges under the Loan Documents are
      cumulative and not exclusive of any rights, remedies, powers and privileges
      provided by law.

     11.4 Survival
      of
      Representations and Warranties

          All representations
      and warranties made in the
      Loan Documents and in any document, certificate or statement delivered pursuant
      thereto or in connection therewith shall survive the execution and delivery
      of
      the Loan Documents.

     11.5 Payment
      of
      Expenses and Taxes; Indemnified Liabilities

          The Borrower agrees,
      promptly upon
      presentation of a statement or invoice therefor setting forth in reasonable
      detail the items thereof, and whether any Loan is made or Letter of Credit
      is
      issued, (a) to pay or reimburse the Administrative Agent and its Affiliates
      for
      all its reasonable costs and expenses actually incurred in connection with
      the
      development, syndication, preparation and execution of, and any amendment,
      waiver, consent, supplement or modification to, the Loan Documents, any
      documents prepared in connection therewith and the consummation of the
      transactions contemplated thereby, whether such Loan Documents or any such
      amendment, waiver, 

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    consent, supplement
      or
      modification to the Loan Documents or any documents prepared in connection
      therewith are executed and whether the transactions contemplated thereby are
      consummated, including the reasonable fees and disbursements of Special Counsel,
      (b) to pay, indemnify, and hold the Administrative Agent, the Lenders and the
      Issuer harmless from any and all recording and filing fees and any and all
      liabilities and penalties with respect to, or resulting from any delay (other
      than penalties to the extent attributable to the negligence of the
      Administrative Agent, the Lenders or the Issuer, as the case may be, in failing
      to pay such fees or other liabilities when due) in paying, stamp, excise and
      other similar taxes, if any, which may be payable or determined to be payable
      in
      connection with the execution and delivery of, or consummation of any of the
      transactions contemplated by, or any amendment, supplement or modification
      of,
      or any waiver or consent under or in respect of, the Loan Documents and any
      such
      other documents, and (c) to pay, reimburse, indemnify and hold each Indemnified
      Person harmless from and against any and all other liabilities, obligations,
      claims, losses, damages, penalties, actions, judgments, suits, costs, expenses
      and disbursements of any kind or nature whatsoever (including reasonable counsel
      fees and disbursements of counsel (including the allocated costs of internal
      counsel) and such local counsel as may be required) actually incurred with
      respect to the enforcement, performance of, and preservation of rights under,
      the Loan Documents (all the foregoing, collectively, the “Indemnified Liabilities”)
      and, if and to the extent that the foregoing
      indemnity may be unenforceable for any reason, the Borrower agrees to make
      the
      maximum payment permitted under applicable law, provided
      that the Borrower shall have no obligation
      hereunder to pay Indemnified Liabilities to an Indemnified Person to the extent
      arising from its gross negligence or willful misconduct. The agreements in
      this
      Section shall survive the termination of the Commitments and the payment of
      the
      Loans and the Notes and all other amounts payable under the Loan
      Documents.

     11.6 Lending
      Offices

          Each Lender shall
      have the right at any time
      and from time to time to transfer any Loan to a different office of such Lender,
      subject to Section 3.10.

     11.7 Successors
      and
      Assigns

          (a) The provisions
      of the Loan Documents shall
      be binding upon and inure to the benefit of the parties hereto and their
      respective successors and assigns permitted hereby, except that the Borrower
      may
      not assign or otherwise transfer any of its rights or obligations hereunder
      without the prior written consent of each Lender (and any attempted assignment
      or transfer by the Borrower without such consent shall be null and void).
      Nothing in the Loan Documents, 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, the Related Parties of each Credit Party) any legal or
      equitable right, remedy or claim under or by reason of any Loan
      Document.

          (b) Any Lender
      may assign all or a portion of
      its rights and obligations under the Loan Documents (including all or a portion
      of its Commitment or obligations in respect of its Letter of Credit Exposure
      or
      Swing Line Exposure and the applicable Loans at the time owing to it), to an
      Eligible Assignee, provided
      that (i)
      except in the case of an assignment to a Lender or an Affiliate of a Lender,
      each of the Borrower and the Administrative Agent (and, in the case of

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    an assignment of
      all or
      any portion of its Commitment or obligations in respect of its Letter of Credit
      Exposure or Swing Line Exposure, the Issuing Bank and/or the Swing Line Lender,
      as the case may be) must give its prior written consent to such assignment
      (which consent shall not be unreasonably withheld or delayed), (ii) except
      in
      the case of an assignment to a Lender or an Affiliate or an Approved Fund of
      a
      Lender or an assignment of the entire remaining amount of the assigning Lender’s
      Commitment, the amount of the Commitment of the assigning Lender subject to
      each
      such assignment (determined as of the date the Assignment and Acceptance
      Agreement with respect to such assignment is delivered to the Administrative
      Agent) shall not be less than $5,000,000, unless the Borrower and the
      Administrative Agent otherwise consent (which consent shall not be unreasonably
      withheld or delayed) and shall be for a pro rata portion of such Lender’s
      Commitment and such Lender’s then outstanding Revolving Credit Loans, (iii) no
      assignments to the Borrower or any of its Affiliates shall be permitted (and
      any
      attempted assignment or transfer to the Borrower or any of its Affiliates shall
      be null and void), (iv) the parties to each assignment shall execute and deliver
      to the Administrative Agent an Assignment and Acceptance Agreement together
      with, unless otherwise agreed by the Administrative Agent, a processing and
      recordation fee of $3,500, and (v) the assignee, if it shall not be a Lender,
      shall deliver to the Administrative Agent an Administrative Questionnaire,
      and
provided
      further that any consent of
      the Borrower otherwise required under this subsection shall not be required
      if
      an Event of Default has occurred and is continuing. Subject to acceptance and
      recording thereof pursuant to subsection (d) of this Section, from and after
      the
      effective date specified in each Assignment and Acceptance Agreement, the
      assignee thereunder shall be a party hereto and, to the extent of the interest
      assigned by such Assignment and Acceptance Agreement, have the rights and
      obligations of a Lender under the Loan Documents, and the assigning Lender
      thereunder shall, to the extent of the interest assigned by such Assignment
      and
      Acceptance Agreement, be released from its obligations under the Loan Documents
      (and, in the case of an Assignment and Acceptance Agreement covering all of
      the
      assigning Lender’s rights and obligations under the Loan Documents, such Lender
      shall cease to be a party hereto but shall continue to be entitled to the
      benefits of Sections 3.5, 3.6, 3.7, 3.10 and 11.10) . Except as otherwise
      provided under clause (iii) of this subsection, any assignment or transfer
      by a
      Lender of rights or obligations under the Loan Documents that does not comply
      with this subsection shall be treated for purposes of the Loan Documents as
      a
      sale by such Lender of a participation in such rights and obligations in
      accordance with subsection (e) of this Section.

          (c) The Administrative
      Agent, acting for this
      purpose as an agent of the Borrower, shall maintain a copy of each Assignment
      and Acceptance Agreement delivered to it and a register for the recordation
      of
      the names and addresses of the Lenders, and the Commitments of, and principal
      amount of the Loans owing to, each Lender pursuant to the terms hereof from
      time
      to time (the “Register”).
      The
      entries in the Register shall be conclusive absent clearly demonstrable error,
      and the Borrower and each Credit Party may treat each Person whose name is
      recorded in the Register pursuant to the terms hereof as a Lender hereunder
      for
      all purposes of this Agreement, notwithstanding notice to the contrary. The
      Register shall be available for inspection by the Borrower and any Credit Party,
      at any reasonable time and from time to time upon reasonable prior
      notice.

          (d) Upon its receipt
      of a duly completed
      Assignment and Acceptance Agreement executed by an assigning Lender and an
      assignee, the assignee’s completed 

62

    

    
    

    Administrative
      Questionnaire (unless the assignee shall already be a Lender hereunder), the
      processing and recordation fee referred to in subsection (b) of this Section
      and
      any written consent to such assignment required by subsection (b) of this
      Section, the Administrative Agent shall accept such Assignment and Acceptance
      Agreement and record the information contained therein in the Register. No
      assignment shall be effective for purposes of this Agreement unless it has
      been
      recorded in the Register as provided in this subsection.

          (e) Any Lender
      may, without the consent of the
      Borrower or any Credit Party, sell participations to Eligible Assignees (each
      a
“Participant”)
      in all or a portion of such Lender’s rights
      and obligations under the Loan Documents (including all or a portion of its
      Commitments, Letter of Credit Exposure, Swing Line Exposure and outstanding
      Loans owing to it), provided
      that (i) such
      Lender’s obligations under the Loan Documents shall remain unchanged, (ii) such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations, (iii) the Borrower and the Credit Parties
      shall
      continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under the Loan Documents and (iv) no
      participations to the Borrower or any of its Affiliates shall be permitted
      (and
      any attempted participation to the Borrower or any of its Affiliates shall
      be
      null and void). Any agreement or instrument pursuant to which a Lender sells
      such a participation shall provide that such Lender shall retain the sole right
      to enforce the Loan Documents and to approve any amendment, modification or
      waiver of any provision of any Loan Documents, provided
      that such agreement or instrument may provide
      that such Lender will not, without the consent of the Participant, agree to
      any
      amendment, modification or waiver described in the proviso to Section 11.1
      that
      affects such Participant. Subject to subsection (f) of this Section, the
      Borrower agrees that each Participant shall be entitled to the benefits of
      Sections 3.5, 3.6, 3.7 and 3.10 to the same extent as if it were a Lender and
      had acquired its interest by assignment pursuant to subsection (b) of this
      Section. To the extent permitted by law, each Participant also shall be entitled
      to the benefits of Section 11.9(a) as though it were a Lender, provided
      that such Participant agrees to be subject to
      Section 11.9(b) as though it were a Lender.

          (f) A Participant
      shall not be entitled to
      receive any greater payment under Section 3.6, 3.7 or 3.10 than the Lender
      that
      sold the participation to such Participant would have been entitled to receive
      with respect to the interest in the Loan Documents subject to the participation
      sold to such Participant, unless the sale of the participation to such
      Participant is made with the Borrower’s prior written consent. A Participant
      that would be a Foreign Lender if it were a Lender shall not be entitled to
      the
      benefits of Section 3.10 unless the Borrower is notified of the participation
      sold to such Participant and such Participant agrees, for the benefit of the
      Borrower, to comply with Section 3.10(b) as though it were a
      Lender.

          (g) Any Lender
      may at any time pledge or
      assign a security interest in all or any portion of its rights under the Loan
      Documents to secure obligations of such Lender, including any pledge or
      assignment to secure obligations to a Federal Reserve Bank, and this Section
      shall not apply to any such pledge or assignment of a security interest,
provided
      that no such pledge or assignment of a
      security interest shall release a Lender from any of its obligations under
      the
      Loan Documents or substitute any such pledgee or assignee for such Lender as
      a
      party hereto.

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              (h) Notwithstanding
      anything to the contrary
      contained herein, any Lender (a “Granting Lender”)
      may
      grant to an Eligible SPC the option to fund all or any part of any Loan that
      such Granting Lender would otherwise be obligated to fund pursuant to this
      Agreement, provided
that
      (i) such designation
      shall not be effective unless the Borrower consents thereto (which consent
      shall
      not be unreasonably withheld), (ii) nothing herein shall constitute a commitment
      by any Eligible SPC to fund any Loan, and (iii) if an Eligible SPC elects not
      to
      exercise such option or otherwise fails to fund all or any part of such Loan,
      the Granting Lender shall be obligated to fund such Loan pursuant to the terms
      hereof. The funding of a Loan by an Eligible SPC hereunder shall utilize the
      Commitment of the Granting Lender to the same extent, and as if, such Loan
      were
      funded by such Granting Lender. As to any Loans or portion thereof made by
      it,
      each Eligible SPC shall have all the rights that a Lender making such Loans
      or
      portion thereof would have had under this Agreement and otherwise,
provided
      that (x) its voting rights under this
      Agreement shall be exercised solely by its Granting Lender and (y) its Granting
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such Granting Lender’s obligations under this Agreement,
      including its obligations in respect of the Loans or portion thereof made by
      it.
      Each Granting Lender shall act as administrative agent for its Eligible SPC
      and
      give and receive notices and other communications on its behalf. Any payments
      for the account of any Eligible SPC shall be paid to its Granting Lender as
      administrative agent for such Eligible SPC and neither the Borrower nor the
      Administrative Agent shall be responsible for any Granting Lender’s application
      of such payments. Each party hereto hereby agrees that no Eligible SPC shall
      be
      liable for any indemnity or payment under this Agreement for which a Lender
      would otherwise be liable for so long as, and to the extent, the Granting Lender
      provides such indemnity or makes such payment. Notwithstanding anything to
      the
      contrary contained in this Agreement, any Eligible SPC may (i) at any time,
      subject to payment of the processing and recordation fee referred to in Section
      11.7(b), assign all or a portion of its interests in any Loans to its Granting
      Lender (but nothing contained herein shall be construed in derogation of the
      obligation of the Granting Lender to make Loans hereunder) or to any financial
      institutions providing liquidity and/or credit support to or for the account
      of
      such Eligible SPC to support the funding or maintenance of Loans, and (ii)
      disclose on a confidential basis any non-public information relating to its
      funding of Loans to any rating agency, commercial paper dealer or provider
      of
      any surety or guarantee or credit or liquidity enhancements to such Eligible
      SPC. This Section may not be amended without the prior written consent of each
      Granting Lender, all or any part of whose Loans is being funded by an Eligible
      SPC at the time of such amendment.

     11.8 Counterparts

          Each of the Loan
      Documents (other than the
      Notes) may be executed on any number of separate counterparts and all of said
      counterparts taken together shall be deemed to constitute one and the same
      agreement. It shall not be necessary in making proof of any Loan Document to
      produce or account for more than one counterpart signed by the party to be
      charged. A set of the copies of this Agreement signed by all of the parties
      hereto shall be lodged with each of the Borrower and the Administrative Agent.
      Any party to a Loan Document may rely upon the signatures of any other party
      thereto which are transmitted by fax or other electronic means to the same
      extent as if originally signed.

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         11.9 Set-off
      and
      Sharing of Payments

          (a) In addition
      to any rights and remedies of
      the Lenders and the Issuer provided by law, upon the occurrence of an Event
      of
      Default under Section 9.1(a) or (b) or upon the acceleration of the Loans,
      each
      Lender and the Issuer shall have the right, without prior notice to the
      Borrower, any such notice being expressly waived by the Borrower, to set-off
      and
      apply against any indebtedness or other liability, whether matured or unmatured,
      of the Borrower to such Lender or the Issuer arising under the Loan Documents,
      any amount owing from such Lender or the Issuer to the Borrower. To the extent
      permitted by applicable law, the aforesaid right of set-off may be exercised
      by
      such Lender or the Issuer against the Borrower or against any trustee in
      bankruptcy, custodian, debtor in possession, assignee for the benefit of
      creditors, receiver, or execution, judgment or attachment creditor of the
      Borrower, or against anyone else claiming through or against the Borrower or
      such trustee in bankruptcy, custodian, debtor in possession, assignee for the
      benefit of creditors, receivers, or execution, judgment or attachment creditor,
      notwithstanding the fact that such right of set-off shall not have been
      exercised by such Lender or the Issuer prior to the making, filing or issuance
      of, service upon such Lender or the Issuer of, or notice to such Lender or
      the
      Issuer of, any petition, assignment for the benefit of creditors, appointment
      or
      application for the appointment of a receiver, or issuance of execution,
      subpoena, order or warrant. Each Lender and the Issuer agree promptly to notify
      the Borrower and the Administrative Agent after each such set-off and
      application made by such Lender or the Issuer, provided
      that the failure to give such notice shall
      not affect the validity of such set-off and application.

          (b) If any Lender
      or the Issuer (each a
“Benefited
      Lender”) shall obtain any
      payment (whether voluntary, involuntary, through the exercise of any right
      of
      set-off, or otherwise) on account of its Loans or its Notes or the Reimbursement
      Obligations in excess of its pro rata share (in accordance with the outstanding
      principal balance of all Loans or the Reimbursement Obligations) of payments
      then due and payable on account of the Loans and Notes received by all the
      Lenders or the Reimbursement Obligations, such Lender or the Issuer, as the
      case
      may be, shall forthwith purchase, without recourse, for cash, from the other
      Lenders such participations in their Loans and Notes or the Reimbursement
      Obligations as shall be necessary to cause such purchasing Lender or the Issuer
      to share the excess payment with each of them according to their pro rata share
      (in accordance with the outstanding principal balance of all Loans or the
      Reimbursement Obligations), provided
      that if all
      or any portion of such excess payment is thereafter recovered from such
      purchasing Lender or the Issuer, such purchase from each Lender shall be
      rescinded and each such Lender shall repay to the purchasing Lender or the
      Issuer the purchase price to the extent of such recovery, together with an
      amount equal to such Lender’s pro rata share (according to the proportion of (i)
      the amount of such Lender’s required repayment to (ii) the total amount so
      recovered from the purchasing Lender or the Issuer) of any interest or other
      amount paid or payable by the purchasing Lender in respect of the total amount
      so recovered. The Borrower agrees, to the fullest extent permitted by law,
      that
      any Lender or the Issuer so purchasing a participation from another Lender
      pursuant to this Section may exercise such rights to payment (including the
      right of set-off) with respect to such participation as fully as if such Lender
      or the Issuer were the direct creditor of the Borrower in the amount of such
      participation.

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         11.10 Indemnity

          (a) The Borrower
      shall indemnify each Credit
      Party and each Related Party thereof (each such Person being called an
“Indemnified
      Person”) against, and hold
      each Indemnified Person harmless from, any and all losses, claims, damages,
      liabilities and related expenses, including the reasonable fees, charges and
      disbursements of any counsel for any Indemnified Person, incurred by or asserted
      against any Indemnified Person arising out of, in connection with, or as a
      result of (i) the execution or delivery of any Loan Document or any agreement
      or
      instrument contemplated thereby, the performance by the parties to the Loan
      Documents of their respective obligations thereunder or the consummation of
      the
      transactions contemplated hereby or any other transactions contemplated thereby
      (including the Caremark Merger), (ii) any Loan or Letter of Credit or the use
      of
      the proceeds thereof, (iii) any actual or alleged presence or release of
      Hazardous Materials on or from any property owned or operated by the Borrower
      or
      any of the Subsidiaries, or any Environmental Liability related in any way
      to
      the Borrower or any of the Subsidiaries or (iv) any actual or prospective claim,
      litigation, investigation or proceeding relating to any of the foregoing,
      whether based on contract, tort or any other theory and regardless of whether
      any Indemnified Person is a party thereto, provided that
      such indemnity shall not, as to any
      Indemnified Person, be available to the extent that such losses, claims,
      damages, liabilities or related expenses are determined by a court of competent
      jurisdiction by final and nonappealable judgment to have resulted primarily
      from
      the gross negligence or willful misconduct of such Indemnified Person.
      Notwithstanding the above, the Borrower shall have no liability under clause
      (i)
      of this Section to indemnify or hold harmless any Indemnified Person for any
      losses, claims, damages, liabilities and related expenses relating to income
      or
      withholding taxes or any tax in lieu of such taxes.

          (b) To the extent
      that the Borrower fails to
      promptly pay any amount required to be paid by it to the Administrative Agent
      under subsection (a) of this Section, each Lender severally agrees to pay to
      the
      Administrative Agent an amount equal to the product of such unpaid amount
multiplied by (i)
      at any time when no Loans are outstanding,
      its Commitment Percentage, or if no Commitments then exist, its Commitment
      Percentage on the last day on which Commitments did exist, and (ii) at any
      time
      when Loans are outstanding (x) if the Commitments then exist, its Commitment
      Percentage or (y) if the Commitments have been terminated or otherwise no longer
      exist, the percentage equal to the fraction, (A) the numerator of which is
      the
      sum of such Lender’s Credit Exposure and (B) the denominator of which is the sum
      of the Aggregate Credit Exposure (in each case determined as of the time that
      the applicable unreimbursed expense or indemnity payment is sought),
provided
      that the unreimbursed expense or indemnified
      loss, claim, damage, liability or related expense, as applicable, was incurred
      by or asserted against the Administrative Agent in its capacity as
      such.

          (c) The obligations
      of the Borrower and the
      Lenders under this Section 11.10 shall survive the termination of the
      Commitments and the payment of the Loans and the Notes and all other amounts
      payable under the Loan Documents.

          (d) To the extent
      permitted by applicable law,
      the Borrower shall not assert, and hereby waives, any claim against any
      Indemnified Person, on any theory of liability, for special, indirect,
      consequential or punitive damages (as opposed to direct and actual damages)
      

66

    

    
    

    arising out of,
      in
      connection with, or as a result of, any Loan Document or any agreement,
      instrument or other document contemplated thereby, the transactions contemplated
      hereby or any Loan or any Letter of Credit or the use of the proceeds
      thereof.

     11.11 Governing
      Law

          The Loan Documents
      and the rights and
      obligations of the parties thereto shall be governed by, and construed and
      interpreted in accordance with, the laws of the State of New York.

     11.12 Severability

          Every provision
      of the Loan Documents is
      intended to be severable, and if any term or provision thereof shall be invalid,
      illegal or unenforceable for any reason, the validity, legality and
      enforceability of the remaining provisions thereof shall not be affected or
      impaired thereby, and any invalidity, illegality or unenforceability in any
      jurisdiction shall not affect the validity, legality or enforceability of any
      such term or provision in any other jurisdiction.

     11.13 Integration

          All exhibits to
      the Loan Documents shall be
      deemed to be a part thereof. Each Loan Document embodies the entire agreement
      and understanding between or among the parties thereto with respect to the
      subject matter thereof and supersedes all prior agreements and understandings
      between or among the parties thereto with respect to the subject matter
      thereof.

     11.14 Treatment
      of
      Certain Information

          Each Lender, the
      Issuer and the Administrative
      Agent agrees to maintain as confidential and not to disclose, publish or
      disseminate to any third parties any financial or other information relating
      to
      the business, operations and condition, financial or otherwise, of the Borrower
      provided to it, except if and to the extent that:

          (a) such information
      is in the public domain
      at the time of disclosure;

          (b) such information
      is required to be
      disclosed by subpoena or similar process or applicable law or
      regulations;

          (c) such information
      is required or requested
      to be disclosed to any regulatory or administrative body or commission to whose
      jurisdiction it may be subject;

          (d) such information
      is disclosed to its
      counsel, auditors or other professional advisors;

          (e) such information
      is disclosed to (and,
      unless and until it receives written objection from the Borrower, the Borrower
      shall be deemed to have consented to disclosure of such information to) its
      affiliates (and its affiliates’ officers, directors and employees),
provided that
      such information shall be used in
      connection with this Agreement and the transactions contemplated
      hereby;

67

    

    
    

              (f) such information
      is disclosed to its
      officers, directors and employees;

          (g) such information
      is disclosed with the
      prior written consent of the party furnishing the information;

          (h) such information
      is disclosed in
      connection with any litigation or dispute involving the Borrower and/or
      it;

          (i) such information
      is disclosed in
      connection with the sale of a participation or other disposition by it of any
      of
      its interest in this Agreement, provided
      that such
      information shall not be disclosed unless and until the party to whom it shall
      be disclosed shall have agreed to keep such information confidential as set
      forth herein;

          (j) such information
      was in its possession or
      in its affiliate’s possession as shown by clear and convincing evidence prior to
      any of the Borrower and/or any or the Borrower’s representatives or agents
      furnishing such information to it; or

          (k) such information
      is received by it,
      without restriction as to its disclosure or use, from a Person who, to its
      knowledge or reasonable belief, was not prohibited from disclosing such
      information by any duty of confidentiality.

          Except to the extent
      prohibited or restricted
      by law or Governmental Authority, each Lender shall notify the Borrower promptly
      of any disclosures of information made by it as permitted pursuant to (h)
      above.

     11.15 Acknowledgments

          The Borrower acknowledges
      that (a) it has been
      advised by counsel in the negotiation, execution and delivery of the Loan
      Documents, (b) by virtue of the Loan Documents, none of the Administrative
      Agent, the Issuer, or any Lender has any fiduciary relationship to the Borrower,
      and the relationship between the Administrative Agent, the Issuer, and the
      Lenders, on the one hand, and the Borrower, on the other hand, is solely that
      of
      debtor and creditor, and (c) by virtue of the Loan Documents, no joint venture
      exists among the Lenders or among the Borrower and the Lenders.

     11.16 Consent
      to
      Jurisdiction

          The Borrower irrevocably
      submits to the
      non-exclusive jurisdiction of any New York State or Federal Court sitting in
      the
      City of New York over any suit, action or proceeding arising out of or relating
      to the Loan Documents. The Borrower irrevocably waives, to the fullest extent
      permitted by law, any objection which it may now or hereafter have to the laying
      of the venue of any such suit, action or proceeding brought in such a court
      and
      any claim that any such suit, action or proceeding brought in such a court
      has
      been brought in an inconvenient forum. The Borrower agrees that a final judgment
      in any such suit, action or proceeding brought in such a court, after all
      appropriate appeals, shall be conclusive and binding upon it.

68

    

    
    

         11.17 Service
      of
      Process

          The Borrower agrees
      that process may be served
      against it in any suit, action or proceeding referred to in Section 11.16 by
      sending the same by first class mail, return receipt requested or by overnight
      courier service, with receipt acknowledged, to the address of the Borrower
      set
      forth in Section 11.2. The Borrower agrees that any such service (i) shall
      be
      deemed in every respect effective service of process upon it in any such suit,
      action, or proceeding, and (ii) shall to the fullest extent enforceable by
      law,
      be taken and held to be valid personal service upon and personal delivery to
      it.

     11.18 No
      Limitation on
      Service or Suit

          Nothing in the
      Loan Documents or any
      modification, waiver, or amendment thereto shall affect the right of the
      Administrative Agent, the Issuer or any Lender to serve process in any manner
      permitted by law or limit the right of the Administrative Agent, the Issuer
      or
      any Lender to bring proceedings against the Borrower in the courts of any
      jurisdiction or jurisdictions.

     11.19 WAIVER
      OF TRIAL
      BY JURY

          THE ADMINISTRATIVE
      AGENT, THE ISSUER, THE
      LENDERS AND THE BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
      RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING
      OUT
      OF, UNDER OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS
      CONTEMPLATED THEREBY. FURTHER, THE BORROWER HEREBY CERTIFIES THAT NO
      REPRESENTATIVE OR AGENT OF THE ADMINISTRATIVE AGENT, THE ISSUER, OR THE LENDERS,
      OR COUNSEL TO THE ADMINISTRATIVE AGENT, THE ISSUER, OR THE LENDERS, HAS
      REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE ADMINISTRATIVE AGENT, THE ISSUER,
      OR THE LENDERS WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE
      THIS
      WAIVER OF RIGHT TO JURY TRIAL PROVISION. THE BORROWER ACKNOWLEDGES THAT THE
      ADMINISTRATIVE AGENT, THE ISSUER, AND THE LENDERS HAVE BEEN INDUCED TO ENTER
      INTO THIS AGREEMENT BY, INTER
      ALIA, THE PROVISIONS OF THIS
      SECTION.

     11.20 Effective
      Date

          This Agreement
      shall be effective at such time
      (the “Effective
      Date”) as the Administrative
      Agent shall have received executed counterparts hereof by the Borrower, the
      Administrative Agent, the Issuer, and each Lender and the conditions set forth
      in Sections 5.1 through 5.3 have been or simultaneously will be satisfied,
      provided
      that this Agreement shall not become
      effective or be binding on any party hereto unless all of such conditions are
      satisfied not later than April 30, 2007.

     11.21 Patriot
      Act
      Notice

          Each Lender and
      the Administrative Agent (for
      itself and not on behalf of any Lender) hereby notifies the Borrower that
      pursuant to the requirements of the USA PATRIOT

69

    

    
    

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

70

    

    
    

         AS EVIDENCE
of
      the agreement by the parties hereto to the
      terms and conditions herein contained, each such party has caused this Five
      Year
      Credit Agreement to be executed on its behalf.

      	CVS
              CORPORATION
	 	 	 
	By:	/s/ Carole
              A.
              DeNale
	 	
              

            
	 	Name:	Carol A.
              DeNale 
	 	Title:	Vice President
              and
              Treasurer 

    

    

    
    

    
      	
              THE BANK
                OF NEW
                YORK, in its capacity as a Lender and in its capacity as the
                Administrative Agent

            
	 	 	 
	By:	/s/ Erin
              Morrissey
	 	
              

            
	 	Name:	Erin
              Morrissey 
	 	Title:	Assistant
              Vice
              President 

    

    

    
    

    
      	BANK OF AMERICA,
              N.A.
	 	 	 
	By:	/s/ John
              Pocalyko
	 	
              

            
	 	Name:	John
              Pocalyko 
	 	Title:	Senior Vice
              President 

    

    

    
    

     

      	
              LEHMAN
                COMMERCIAL
                PAPER INC., in its capacity as a 
Co-Syndication
                Agent

            
	 	 	 
	By:	/s/ Janine
              M.
              Shugan
	 	
              

            
	 	Name:	Janine M.
              Shugan 
	 	Title:	Authorized
              Signatory 

    

     

      	
              LEHMAN
                BROTHERS
                BANK, FSB, in its capacity as a Lender

            
	 	 	 
	By:	/s/ Gary
              T.
              Taylor
	 	
              

            
	 	Name:	Gary T.
              Taylor 
	 	Title:	Senior Vice
              President 

    

    

    
    

     

      	
              WACHOVIA
                BANK,
                NATIONAL ASSOCIATION, 
in its capacity as a Lender and in its capacity
                as a Co-Syndication Agent 

            
	 	 	 
	By:	/s/ Denis
              Waltrich
	 	
              

            
	 	Name:	Denis
              Waltrich 
	 	Title:	Vice
              President 

    

    

    
    

    
      	
              MORGAN
                STANLEY
                SENIOR FUNDING, INC., 
in its capacity as Documentation
                Agent

            
	 	 	 
	By:	/s/ Daniel
              Twenge
	 	
              

            
	 	Name:	Daniel
              Twenge 
	 	Title:	Vice
              President 

    
      	MORGAN STANLEY
              BANK,
              in its capacity as a Lender
	 	 	 
	By:	/s/ Dawn
              M.
              Dawson
	 	
              

            
	 	Name:	Dawn M.
              Dawson 
	 	Title:	Authorized
              Signatory 

    

    

    

    
    

     

      	ABN AMRO
              BANK
              N.V.
	 	 	 
	By:	/s/ Tracie
              Elliot
	 	
              

            
	 	Name:	Tracie
              Elliot 
	 	Title:	Director 

    

      	By:	/s/ Wendy
              Devenish
	 	
              

            
	 	Name:	Wendy
              Devenish 
	 	Title:	First Vice
              President 

    

    

    
    

    
      	KEYBANK NATIONAL
              ASSOCIATION
	 	 	 
	By:	/s/ Marianne
              T.
              Meil
	 	
              

            
	 	Name:	Marianne
              T.
              Meil 
	 	Title:	Senior Vice
              President 

    

    

    
    

    
      	SUNTRUST
              BANK
	 	 	 
	By:	/s/ Richard
              C.
              Wilson
	 	
              

            
	 	Name:	Richard C.
              Wilson 
	 	Title:	Managing
              Director 

    

    

    
    

    
      	MIZUHO CORPORATE
              BANK, LTD.
	 	 	 
	By:	/s/ Bertram
              H.
              Tang
	 	
              

            
	 	Name:	Bertram H.
              Tang 
	 	Title:	Senior Vice
              President & Team Leader 

    

    

    
    

    
      	BRANCH BANKING
              AND
              TRUST COMPANY
	 	 	 
	By:	/s/ Roberts
              A.
              Bass
	 	
              

            
	 	Name:	Roberts A.
              Bass 
	 	Title:	Senior Vice
              President 

    

    

    
    

    
      	BANK OF CHINA,
              NEW
              YORK BRANCH
	 	 	 
	By:	/s/ Xiaojing
              Li
	 	
              

            
	 	Name:	Xiaojing
              Li 
	 	Title:	General
              Manager 

    

    

    
    

    
      	WELLS FARGO
              BANK,
              NATIONAL
ASSOCIATION
	 	 	 
	By:	/s/ Megan
              Donnelly
	 	
              

            
	 	Name:	Megan
              Donnelly 
	 	Title:	Vice
              President 

    

    

    
    

    
      	SUMITOMO
              MITSUI
              BANKING CORPORATION
	 	 	 
	By:	/s/ Shigeru
              Tsuru
	 	
              

            
	 	Name:	Shigeru
              Tsuru 
	 	Title:	Joint General
              Manager 

    

    

    
    

    
      	US BANK,
              NATIONAL
              ASSOCIATION
	 	 	 
	By:	/s/ Patrick
              H.
              McGraw, Jr.
	 	
              

            
	 	Name:	Patrick H.
              McGraw,
              Jr. 
	 	Title:	Vice
              President 

    

    

    
    

    
      	FIFTH THIRD
              BANK
	 	 	 
	By:	/s/ Brooke
              Balcom
	 	
              

            
	 	Name:	Brooke
              Balcom 
	 	Title:	Assistant
              Vice
              President 

    

    

    
    

    
      	CHANG HWA
              COMMERCIAL
              BANK LTD.,
LOS ANGELES BRANCH
	 	 	 
	By:	/s/ Wen-Che
              Chen
	 	
              

            
	 	Name:	Wen-Che
              Chen 
	 	Title:	VP & General
              Manager 

    

    

    
    

    
      	SOVEREIGN
              BANK
	 	 	 
	By:	/s/ Robert
              F.
              Camara
	 	
              

            
	 	Name:	Robert F.
              Camara 
	 	Title:	Vice
              President 

    

    

    
    

    
      	UNION BANK
              OF
              CALIFORNIA, N.A.
	 	 	 
	By:	/s/ Tawny
              J.
              Palovchik
	 	
              

            
	 	Name:	Tawny J.
              Palovchik 
	 	Title:	Investment
              Banking
              Officer 

    

    

    
    

    
      	REGIONS
              BANK
	 	 	 
	By:	/s/ Berkin
              Istanbulluoglu
	 	
              

            
	 	Name:	Berkin
              Istanbulluoglu 
	 	Title:	Assistant
              Vice
              President 

    

    

    
    

    
      	LAND BANK
              OF
              TAIWAN
	 	 	 
	By:	/s/ Chien-ching
              Li
	 	
              

            
	 	Name:	Chien-ching
              Li 
	 	Title:	Deputy General
              Manager, LA Branch 

    

    

    
    

    
      	PNC BANK,
              NATIONAL
              ASSOCIATION
	 	 	 
	By:	/s/ Michael
              Richards
	 	
              

            
	 	Name:	Michael
              Richards 
	 	Title:	Senior Vice
              President 

    

    

    
    

    
      	THE NORTHERN
              TRUST
              COMPANY
	 	 	 
	By:	/s/ Anu
              Agarwal
	 	
              

            
	 	Name:	Anu
              Agarwal 
	 	Title:	2nd
Vice
              President 

    

    

    
    

    
      	NATIONAL
              CITY
              BANK
	 	 	 
	By:	/s/ Amanda
              M.
              Sigg
	 	
              

            
	 	Name:	Amanda M.
              Sigg 
	 	Title:	Relationship
              Manager 

    

    

    
    

    
      	HSBC BANK
              USA
	 	 	 
	By:	/s/ Martin
              J.
              Haythorne
	 	
              

            
	 	Name:	Martin J.
              Haythorne 
	 	Title:	Managing
              Director 

    

    

    
    

    EXHIBIT A

2007
      FIVE
      YEAR CREDIT AGREEMENT
EXHIBIT A

LIST OF
      COMMITMENTS

      	Lender	 	 	Commitment
              Amount
	
              

            	
            	
            	
              

            
	The
              Bank of New York	 	 	$
              110,000,000
	Bank
              of
              America, N.A.	 	 	$
              110,000,000
	Lehman
              Brothers Bank, FSB	 	 	$
              110,000,000
	Morgan
              Stanley Bank	 	 	$
              110,000,000
	Wachovia
              Bank, National Association	 	 	$
              110,000,000
	ABN
              AMRO Bank N.V.	 	 	$
              55,000,000
	KeyBank
              National Association	 	 	$
              55,000,000
	SunTrust
              Bank	 	 	$
              55,000,000
	Branch
              Banking and Trust Company	 	 	$
              45,000,000
	HSBC
              Bank USA	 	 	$
              45,000,000
	Mizuho
              Corporate Bank, Ltd.	 	 	$
              45,000,000
	Sumitomo
              Mitsui Banking Corp., New York	 	 	$
              45,000,000
	US
              Bank, National Association	 	 	$
              45,000,000
	Wells
              Fargo Bank, National Association	 	 	$
              45,000,000
	Bank
              of
              China	 	 	$
              40,000,000
	Sovereign
              Bank	 	 	$
              40,000,000
	Land
              Bank of Taiwan	 	 	$
              30,000,000
	Chang
              Hwa Commercial Bank Ltd.	 	 	$
              25,000,000
	Fifth
              Third Bank	 	 	$
              25,000,000
	National
              City Bank	 	 	$
              25,000,000
	PNC
              Bank, National Association	 	 	$
              25,000,000
	Regions
              Bank	 	 	$
              25,000,000
	The
              Northern Trust Company	 	 	$
              15,000,000
	Union
              Bank of California, N.A.	 	 	$
              15,000,000
	
            	
            	
            	
              

            
	 	 	TOTAL	$
              1,250,000,000

    

    

    
    

    EXHIBIT B

2007 FIVE
      YEAR
      CREDIT AGREEMENT 
EXHIBIT B

FORM OF
      NOTE

[____],
      2007

New York, New York

     FOR VALUE RECEIVED,
      the undersigned, CVS CORPORATION, a Delaware
      corporation (the “Borrower”),
      hereby
      promises to pay to the order of _________________________ (the “Lender”)
      the outstanding principal balance of the
      Lender’s Loans, together with interest thereon, at the rate or rates, in the
      amounts and at the time or times set forth in the Five Year Credit Agreement
      (as
      the same may be amended, supplemented or otherwise modified from time to time,
      the “Credit
      Agreement”), dated as of
      March 12, 2007, by and among the Borrower, the Lenders party thereto, the
      co-syndication agents named therein, the documentation agent named therein,
      and
      The Bank of New York, as administrative agent (in such capacity, the
“Administrative
      Agent”), in each case at the
      office of the Administrative Agent located at One Wall Street, New York, New
      York, or at such other place as the Administrative Agent may specify from time
      to time, in lawful money of the United States of America in immediately
      available funds.

     Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     The Loans evidenced
      by this Note are prepayable in the amounts, and on
      the dates, set forth in the Credit Agreement. This Note is one of the Notes
      under the Credit Agreement, and is subject to, and shall be construed in
      accordance with, the provisions thereof, and is entitled to the benefits set
      forth in the Loan Documents.

     The Lender is hereby
      authorized to record on the schedule annexed hereto,
      and any continuation sheets which the Lender may attach thereto (a) the date
      and
      amount of each Revolving Credit Loan, Competitive Bid Loan and Swing Line Loan
      made by the Lender, (b) the Interest Period for each Revolving Credit Loan
      (Eurodollar Advance only), Competitive Bid Loan and Swing Line Loan made by
      the
      Lender, (c) the Type of each Revolving Credit Loan made by the Lender as one
      or
      more ABR Advances, one or more Eurodollar Advances, or a combination thereof,
      (d) the Eurodollar Rate applicable to each Revolving Credit Loan (Eurodollar
      Advance only), the Competitive Bid Rate applicable to each Competitive Bid
      Loan
      and the Negotiated Rate applicable to each Swing Line Loan made by the Lender
      and (e) the date and amount of each Conversion of each Revolving Credit Loan
      made by the Lender, and each payment or prepayment of principal of, each Loan
      made by the Lender. The failure to so record or any error in so recording shall
      not affect the 

    

    
    

    obligation of the
      Borrower to repay the Loans, together with interest thereon, as provided in
      the
      Credit Agreement.

     Except as specifically
      otherwise provided in the Credit Agreement, the
      Borrower hereby waives presentment, demand, notice of dishonor, protest, notice
      of protest and all other demands, protests and notices in connection with the
      execution, delivery, performance, collection and enforcement of this
      Note.

     This Note
      is being delivered in, is intended
      to be performed in, shall be construed and interpreted in accordance with,
      and
      be governed by the laws of, the State of New York.

     This Note may only
      be amended by an instrument in writing executed
      pursuant to the provisions of Section 11.1 of the Credit Agreement.

      	
              CVS CORPORATION
                

            
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

    

    
    

    CVS
      CORPORATION

5 YEAR
      CREDIT
      AGREEMENT

SCHEDULE
      TO
      NOTE

      	Date
of
Loan	Type
and
Amount
of
              Loan	Interest
Period
(If
              other
than
              an
ABR
Advance)	Type
              of
Revolving
Credit Loan
(ABR or
Eurodollar)	Interest
Rate
(If
              other
than
              an
ABR
Advance)	Date
              and
Amount of
Conversion
of
Revolving
Credit Loan	Date
              and
Amount of
Principal
Payment or
Prepayment	Notation
Made
              by
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

    

    

    
    

    EXHIBIT C

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT C

FORM OF BORROWING
      REQUEST

                                                                                                            
[Date]

      	The
              Bank
              of New York, as Administrative Agent
	One
              Wall
              Street
	New
              York,
              New York 10286
	Attention:

	______________,
	 	______________

    

    
      	 	
              Re:

            	
              Five Year Credit Agreement,
                dated as of March 12, 2007, by and among CVS Corporation, the Lenders
                party thereto, the co-syndication agents named therein, the documentation
                agent named therein, and The Bank of New York, as Administrative
                Agent (as
                amended, supplemented or otherwise modified from time to time, the
                "Credit
                Agreement")

            

    

         Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     Pursuant to Section
      2.3 of the Credit Agreement, the Borrower hereby
      gives notice of its intention to borrow Revolving Credit Loans in the aggregate
      sum of $____________ on ____________, and/or a Swing Line Loan in the sum of
      $____________ on ____________, which borrowing shall consist of the
      following:

      	Revolving
              Credit Loans	  	 	  	 
	(ABR
              Advance or Eurodollar	  	 	  	Interest
              Period
	Advance)
              or Swing Line Loan	  	Amount	  	(Other
              than ABR)

    

         The Borrower hereby
      certifies that on the Borrowing Date set forth above,
      and after giving effect to the Loans requested hereby:

     (a) There shall
      exist no Default or Event of
      Default.

    

    
    

         (b) The representations
      and warranties contained in the Credit Agreement
      shall be true and correct, except those which are expressly specified to be
      made
      as of an earlier date.

     IN EVIDENCE of
      the foregoing, the undersigned has caused this Borrowing
      Request to be duly executed on its behalf.

      	CVS
              CORPORATION
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

 

    

    
    

    EXHIBIT
      D-1

     2007 FIVE
      YEAR CREDIT AGREEMENT
EXHIBIT D-1

FORM OF OPINION OF COUNSEL TO THE BORROWER

                                                                                                            
[Date]

The Lenders, the
      Co-Syndication Agents, 
the Documentation Agent and
the Administrative
      Agent Referred to Below
c/o The Bank of New York, 
as Administrative Agent

One Wall Street
New York, New York 10286

Ladies and
      Gentlemen:

     I am general counsel
      of CVS Corporation, a Delaware corporation (the
      "Borrower"),
      and have acted as such in connection with
      the Five Year Credit Agreement, dated as of March 12, 2007, by and among the
      Borrower, the lenders party thereto, Lehman Commercial Paper Inc. and Wachovia
      Bank, National Association, as Co-Syndication Agents, Morgan Stanley Senior
      Funding, Inc., as Documentation Agent, and The Bank of New York, as
      Administrative Agent (the "Five Year Credit Agreement").
      Capitalized terms not otherwise defined herein shall have the
      meanings assigned to them in the Five Year Credit Agreement.

     I have examined
      originals or copies, certified or otherwise identified to
      my satisfaction, of such documents, corporate records, certificates of public
      officials and other instruments and have conducted such other investigations
      of
      fact and law as I have deemed necessary or advisable for purposes of this
      opinion. In rendering my opinions set forth below, I have assumed (i) the due
      authorization, execution and delivery by all parties thereto (other than the
      Borrower) of the Five Year Credit Agreement, (ii) the authenticity of all
      documents submitted to me as originals and (iii) the conformity to original
      documents of all documents submitted to me as copies.

     Based upon the
      foregoing, I am of the opinion that:

     1. The Borrower
      is a corporation duly incorporated, validly existing and
      in good standing under the laws of the State of Delaware. The Borrower has
      all
      requisite corporate power and authority to own its Property and to carry on
      its
      business as now conducted.

     2. The Borrower
      is qualified to do business as a foreign corporation and
      is in good standing in each jurisdiction in which it owns or leases real
      Property or in which the nature of its business requires it to be so qualified
      (except those jurisdictions where the failure to be so 

    

    
    

    qualified or to
      be in
      good standing could not reasonably be expected to have a Material Adverse
      effect).

     3. The execution,
      delivery and performance by the Borrower of the Five
      Year Credit Agreement and the Notes are within the Borrower's corporate powers
      and have been duly authorized by all necessary corporate action on the part
      of
      the Borrower.

     4. The execution,
      delivery and performance by the Borrower of the Five
      Year Credit Agreement and Notes do not require any action or approval on the
      part of the shareholders of the Borrower or any action by or in respect of,
      or
      filing with, any governmental body, agency or official under United States
      federal law or the Delaware General Corporation Law, and do not contravene,
      or
      constitute a default under, any provision of (i) United States federal law
      or
      the Delaware General Corporation Law, (ii) the Certificate of Incorporation
      or
      bylaws of the Borrower or (iii) any existing material mortgage, material
      indenture, material contract or material agreement, in each case binding on
      the
      Borrower or any Subsidiary or affecting the Property of the Borrower or any
      Subsidiary.

     5. The Five Year
      Credit Agreement and the Notes delivered by the Borrower
      on or prior to the date hereof have been duly executed and delivered by the
      Borrower and each constitutes the valid and binding agreement of the Borrower,
      in each case enforceable in accordance with their respective terms, subject
      to
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      from time to time in effect affecting the enforcement of creditors' rights
      generally and to general principles of equity.

     6. The Borrower
      is not an "investment company" (as such term is defined
      in the United States Investment Company Act of 1940, as amended).

     7. To the best
      of my knowledge, as at February 2, 2007, there were no
      actions, suits, arbitration proceedings or claims (whether purportedly on behalf
      of the Borrower, any Subsidiary or otherwise) pending or threatened against
      the
      Borrower or any Subsidiary or any of their respective Properties, or maintained
      by the Borrower or any Subsidiary, at law or in equity, before any Governmental
      Authority which could reasonably be expected to have a Material Adverse effect.
      To the best of my knowledge, there are no proceedings pending or threatened
      against the Borrower or any Subsidiary (a) which call into question the validity
      or enforceability of, or otherwise seek to invalidate, any Loan Document or
      (b)
      which could reasonably be expected to, individually or in the aggregate,
      materially and adversely affect any of the transactions contemplated by any
      Loan
      Document (it being understood that the Caremark Merger is not a transaction
      contemplated by any Loan Document for purposes of this clause (b)).

     8. To the best
      of my knowledge, the Borrower is not in default under any
      agreement to which it is a party or by which it or any of its Property is bound
      the effect of which could reasonably be expected to have a Material Adverse
      effect.

     9. To the best
      of my knowledge, no provision of any judgment, decree or
      order, in each case binding on the Borrower or any Subsidiary or affecting
      the
      Property of the Borrower or any Subsidiary conflicts with, or requires any
      consent which has not already been obtained under, 

    

    
    

    or would in any
      way
      prevent the execution, delivery or performance by the Borrower of the terms
      of,
      any Loan Document.

     The foregoing opinion
      is subject to the following
      qualifications:

     (a) I express no
      opinion as to the effect (if any) of any law of any
      jurisdiction (except the Commonwealth of Massachusetts) in which any Lender
      is
      located which may limit the rate of interest that such Lender may charge or
      collect.

     (b) I express no
      opinion as to provisions in the Five Year Credit
      Agreement which purport to create rights of set-off in favor of participants
      or
      which provide for set-off to be made otherwise than in accordance with
      applicable laws.

     (c) I note that
      public policy considerations or court decisions may limit
      the rights of any party to obtain indemnification under the Five Year Credit
      Agreement.

     I am a member of
      the bar of the Commonwealth of Massachusetts and the
      foregoing opinion is limited to the laws of the Commonwealth of Massachusetts,
      the federal law of the United States of America and the Delaware General
      Corporation Law. For purposes of paragraph 5 of this opinion, I have assumed
      that, with your permission and without any research or investigation, the laws
      of the State of New York are identical to the law of the Commonwealth of
      Massachusetts.

     This opinion is
      rendered solely to you in connection with the above
      matter. This opinion may not be relied upon by you for any other purpose or
      relied upon by any other person without my prior written consent, except that
      any person that becomes a Lender in accordance with the provisions of the Five
      Year Credit Agreement may rely upon this opinion as if it were specifically
      addressed and delivered to such person on the date hereof.

Very truly
      yours,

    

    
    

    EXHIBIT
      D-2

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT D-2

FORM OF OPINION
      OF
      SPECIAL COUNSEL TO THE BORROWER

[Date]

The Co-Syndication
      Agents, 
   the Documentation Agent, 
   the
      Administrative Agent 
   and the lenders party

   to the Five Year Credit Agreement referred to below
c/o
      The Bank of New York,
as Administrative Agent

Re: CVS
      Corporation

Ladies and
      Gentlemen:

     We have acted as
      special New York counsel to CVS Corporation, a Delaware
      corporation (the “Company”),
      in
      connection with the Five Year Credit Agreement dated as of March 12, 2007 among
      the Company, the lenders listed on the signature pages thereof (the
“Lenders”),
      Lehman
      Commercial Paper Inc. and Wachovia Bank, National Association, as Co-Syndication
      Agents, Morgan Stanley Senior Funding, Inc., as Documentation Agent, and The
      Bank of New York, as Administrative Agent (in such capacity, the
“Administrative
      Agent”) (as in effect
      on
      the date hereof, the “Five Year Credit
      Agreement”). Capitalized terms
      defined in the Five Year
      Credit Agreement and not otherwise defined herein are used herein as therein
      defined.

     We have reviewed
      an executed copy of the Five Year Credit Agreement. In
      addition, we have examined originals or copies, certified or otherwise
      identified to our satisfaction, of such documents, corporate records,
      certificates of public officials and other instruments, and have conducted
      such
      other investigations of fact and law, as we have deemed necessary or advisable
      for purposes of this opinion.

     Based upon the
      foregoing, and subject to the qualifications and
      assumptions set forth herein, we are of the opinion that (i) the Five Year
      Credit Agreement constitutes a valid and binding agreement of the Company,
      enforceable against the Company in accordance with its terms, and (ii) the
      execution, delivery and performance by the Company of the Five Year Credit
      Agreement (x) require no consent or other action by or in respect of, or filing
      with, any governmental body, agency or official under New York State law, and
      (y) do not contravene, or 

    

    
    

    constitute a default
      under, any provision of New York State law or regulation that in our experience
      is normally applicable to general business corporations in relation to
      transactions of the type contemplated by the Five Year Credit
      Agreement.

     The foregoing opinions
      are subject to the following qualifications and
      assumptions:

     (a) Our opinions
      are subject to the effects of applicable bankruptcy,
      insolvency and similar laws affecting creditors’ rights generally and equitable
      principles of general applicability, and the enforceability of indemnification
      provisions may be limited by Federal or State laws or policies underlying such
      laws.

     (b) We express
      no opinion as to the effect (if any) of any law of any
      jurisdiction (except the State of New York) in which any Lender is located
      that
      may limit the rate of interest that such Lender may charge or
      collect.

     (c) We express
      no opinion as to the effect of Section 548 of the United
      States Bankruptcy Code or any similar provisions of State law.

     (d) We have assumed,
      with your permission and without independent
      investigation, that (i) the Company is a corporation duly incorporated, validly
      existing and in good standing under the laws of the State of Delaware, (ii)
      the
      execution, delivery and performance by the Company of the Five Year Credit
      Agreement are within its corporate powers and have been duly authorized by
      all
      necessary corporate and other action, and (iii) the execution, delivery and
      performance by the Company of the Five Year Credit Agreement (x) require no
      consent or other action by or in respect of, or filing with, any governmental
      body, agency or official under United States federal law or the Delaware General
      Corporation Law and (y) do not contravene, or constitute a default under, any
      provision of (a) United States federal law or regulation or the Delaware General
      Corporation Law, or (b) the certificate of incorporation or bylaws of the
      Company.

     We are members
      of the bar of the State of New York and the foregoing
      opinion is limited to the laws of the State of New York.

     This opinion is
      rendered solely to you in connection with the above
      matter. This opinion may not be relied upon by you for any other purpose or
      relied upon by any other person (other than an assignee permitted under Section
      11.7 of the Five Year Credit Agreement) without our prior written
      consent.

Very truly
      yours,

    

    
    

    EXHIBIT E

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT E

FORM OF ASSIGNMENT
      AND ACCEPTANCE AGREEMENT

     Reference is made
      to the Five Year Credit Agreement, dated as of March
      12, 2007 (as amended and in effect on the date hereof, the “Credit Agreement”),
      by and among CVS Corporation, the Lenders
      party thereto, the co-syndication agents named therein, the documentation agent
      named therein, and The Bank of New York, as Administrative Agent. Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

     The Assignor named
      below hereby sells and assigns, without recourse, to
      the Assignee named below, and the Assignee hereby purchases and assumes, without
      recourse, from the Assignor, effective as of the Assignment Date (defined
      below), the interests set forth below in the Assignor’s rights and obligations
      under the Credit Agreement, including, without limitation, the interests set
      forth below in the Commitment and the Revolving Credit Loans and Competitive
      Bid
      Loans owing to the Assignor that are outstanding on the Assignment Date,
      together with, in the case of such Commitment, all of the related participations
      held by the Assignor in respect of the Letters of Credit (including its LC
      Exposure) and Swingline Loans (including its Swingline Exposure), but excluding
      accrued interest and fees to and excluding the Assignment Date (collectively,
      the “Assigned
      Interest”). The Assignee
      hereby acknowledges receipt of a copy of the Credit Agreement. From and after
      the Assignment Date, (i) the Assignee shall be a party to and be bound by the
      provisions of the Credit Agreement and, to the extent of the Assigned Interest,
      have the rights and obligations of a Lender under the Loan Documents and (ii)
      the Assignor shall, to the extent of the Assigned Interest, relinquish its
      rights and be released from its obligations under the Loan
      Documents.

     This Assignment
      and Acceptance is being delivered to the Administrative
      Agent, together with (i) if the Assignee is a Foreign Lender, any documentation
      required to be delivered by the Assignee pursuant to Section 3.10(b) of the
      Credit Agreement, duly completed and executed by the Assignee, and (ii) if
      the
      Assignee is not already a Lender under the Credit Agreement, an Administrative
      Questionnaire in the form supplied by the Administrative Agent, duly completed
      by the Assignee. The [Assignee/Assignor]1
      shall pay the fee payable to the
      Administrative Agent pursuant to Section 11.7(b) of the Credit
      Agreement.

     THIS ASSIGNMENT
      AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED IN
      ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

    

    1
Delete
      inapplicable
      term.

    

    
    

    Date of Assignment:
      

Legal Name of Assignor:
      

Legal Name of Assignee:
      

Assignee’s Address for
      Notices:

Effective Date
      of

Assignment (the
“Assignment
      Date”):

Commitment
      Assigned:

Principal Amount
      of
      Revolving Credit Loans Assigned: 

Principal Amount
      of each
      Competitive Bid Loan Assigned:

[SIGNATURE PAGE
      FOLLOWS]

    

    
    

    The terms set forth
      above are hereby agreed to:

      	[Name
              of
              Assignor], as
              Assignor
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

      	[Name
              of
              Assignee], as
              Assignee
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

    The undersigned
      hereby
      consent to the within assignment: 

      	CVS
              CORPORATION
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

      	THE BANK
              OF NEW
              YORK,
as Administrative Agent
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

 

    

    
    

    EXHIBIT F

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT F

FORM OF COMPETITIVE
      BID REQUEST

                  [Date]

      	The
              Bank
              of New York, as Administrative Agent
	One
              Wall
              Street
	New
              York,
              New York 10286
	Attention:

	______________,
	 	______________

    

    
      	 	
              Re:

            	
              Five Year Credit Agreement,
                dated as of March 12, 2007, by and among CVS Corporation, the Lenders
                party thereto, the co-syndication agents named therein, the documentation
                agent named therein, and The Bank of New York, as Administrative
                Agent (as
                amended, supplemented or otherwise modified from time to time, the
                "Credit
                Agreement")

            

    

         Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     Pursuant to Section
      2.4 of the Credit Agreement, the Borrower hereby
      gives notice of its request to borrow Competitive Bid Loans in the aggregate
      sum
      of $____________on ____________, which borrowing shall consist of the
      following:

      	 	Competitive
	Amount	Interest
              Period

    

         The Borrower hereby
      certifies that on the Borrowing Date set forth above,
      and after giving effect to the Competitive Bid Loans requested
      hereby:

     (a) There shall
      exist no Default or Event of Default.

     (b) The representations
      and warranties contained in the Credit Agreement
      shall be true and correct, except those which are expressly specified to be
      made
      as of an earlier date.

    

    
    

         IN EVIDENCE of
      the foregoing, the undersigned has caused this Competitive
      Bid Request to be duly executed on its behalf.

      	CVS
              CORPORATION
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

 

    

    
    

    EXHIBIT G

2007 FIVE
      YEAR
      CREDIT AGREEMENT 
EXHIBIT G

FORM OF INVITATION
      TO BID

[Date]

To the Lenders
      party
from time to time to the
captioned Credit Agreement

 

      	 	
              Re:

            	
              Five Year Credit Agreement,
                dated as of March 12, 2007, by and among CVS Corporation, the Lenders
                party thereto, the co-syndication agents named therein, the documentation
                agent named therein, and The Bank of New York, as Administrative
                Agent (as
                amended, supplemented or otherwise modified from time to time, the
                "Credit
                Agreement")

            

    

         Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     Pursuant to a Competitive
      Bid Request, the Borrower gave notice of its
      request to borrow Competitive Bid Loans in the aggregate sum of $____________
      on
      ____________, which borrowing would consist of the following:

      	 	Competitive
	Amount	Interest
              Period

     The Lenders are
      hereby invited to bid, pursuant to the terms and
      conditions of the Credit Agreement, on such requested Competitive Bid
      Loans.

      	THE BANK
              OF NEW
              YORK,
as Administrative Agent
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

 

    

    
    

    EXHIBIT H

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT H

FORM OF COMPETITIVE
      BID

[Date]

      	The
              Bank
              of New York, as Administrative Agent
	One
              Wall
              Street
	New
              York,
              New York 10286
	Attention:

	______________,
	 	______________

    

    
      	 	
              Re:

            	
              Five Year Credit Agreement,
                dated as of March 12, 2007, by and among CVS Corporation, the Lenders
                party thereto, the co-syndication agents named therein, the documentation
                agent named therein, and The Bank of New York, as Administrative
                Agent (as
                amended, supplemented or otherwise modified from time to time, the
                "Credit
                Agreement")

            

    

     Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     In response to
      a Competitive Bid Request, the undersigned Lender hereby
      offers to make Competitive Bid Loan(s) in the aggregate sum of $____________on
      ____________, which borrowing would consist of the following:

      	  	Competitive	  
	  	Interest	Competitive
	Amount	Period	Bid
              Rate
	  	  	[fixed
              rate]

    

    
      	[LENDER]
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

    

    
    

    EXHIBIT I

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT I

FORM OF COMPETITIVE
      BID ACCEPT/REJECT LETTER

[Date]

      	The
              Bank
              of New York, as Administrative Agent
	One
              Wall
              Street
	New
              York,
              New York 10286
	Attention:

	______________,
	 	______________

    

    
      	 	
              Re:

            	
              Five Year Credit Agreement,
                dated as of March 12, 2007, by and among CVS Corporation, the Lenders
                party thereto, the co-syndication agents named therein, the documentation
                agent named therein, and The Bank of New York, as Administrative
                Agent (as
                amended, supplemented or otherwise modified from time to time, the
                "Credit
                Agreement")

            

    

     Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     Pursuant to Section
      2.4(d) of the Credit Agreement, the Borrower hereby
      gives notice of its acceptance of the following Competitive Bids:

      	 	 
	
              

            	
              

            
	 	 
	
              

            	
              

            
	 	 

    

    and its rejection
      of all
      other Competitive Bids, in each case made pursuant to the Competitive Bid
      Request, dated _______________.

     IN EVIDENCE of
      the foregoing, the undersigned has caused this Competitive
      Bid Accept/Reject Letter to be duly executed on its behalf.

      	CVS
              CORPORATION
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:	 

    

    

    
    

    EXHIBIT J

2007 FIVE
      YEAR
      CREDIT AGREEMENT
EXHIBIT J

FORM OF LETTER
      OF
      CREDIT REQUEST

[Date]

      	The
              Bank
              of New York, as Administrative Agent
	One
              Wall
              Street
	New
              York,
              New York 10286
	Attention:

	______________,
	 	______________

    

    
      	 	
              Re:

            	
              Five Year Credit Agreement,
                dated as of March 12, 2007, by and among CVS Corporation, the Lenders
                party thereto, the co-syndication agents named therein, the documentation
                agent named therein, and The Bank of New York, as Administrative
                Agent (as
                amended, supplemented or otherwise modified from time to time, the
“Credit
                Agreement”)

            

    

     Capitalized terms
      used herein that are not otherwise defined herein shall
      have the respective meanings ascribed thereto in the Credit
      Agreement.

     Pursuant to Section
      2.8(b) of the Credit Agreement, the Borrower hereby
      gives notice of its request for the issuance by the Issuer of a Letter of Credit
      for the account of the Borrower and for the benefit of ____________________
      on
      _______________ in connection with ___________________in the maximum amount
      of $
      _____________. A drawing may be made under such Letter of Credit under the
      following conditions: _______________________________________.

     The Borrower hereby
      certifies that on the above requested date of
      issuance of such Letter of Credit, and after giving effect to the issuance
      of
      such Letter of Credit:

     (a) There shall
      exist no Default or Event of Default.

     (b) The representations
      and warranties contained in the Credit Agreement
      shall be true and correct, except those which are expressly specified to be made
      as of an earlier date.

    

    
    

         IN EVIDENCE of
      the foregoing, the undersigned has caused this Letter of
      Credit Request to be duly executed on its behalf.

      	CVS
              CORPORATION
	 	 	 
	By:	 
	 	
              

            
	 	Name:	 
	 	Title:

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