Document:

EX-10.2

 

EXECUTION COPY

 

CREDIT AGREEMENT

dated as of

November 28, 2006

among

POLO RALPH LAUREN CORPORATION,

as Borrower,

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

THE BANK OF NEW YORK, CITIBANK, N.A.,

BANK OF AMERICA, N.A. and WACHOVIA BANK NATIONAL ASSOCIATION,

as Syndication Agents

SUMITOMO MITSUI BANKING CORPORATION and DEUTSCHE BANK SECURITIES

INC., as Co-Agents

J.P. MORGAN SECURITIES INC.,

as Sole Bookrunner and Sole Lead Arranger

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I Definitions
	 	 	1	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	20	 
	SECTION 1.03. Terms Generally
	 	 	20	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	20	 
	SECTION 1.05. Exchange Rates
	 	 	20	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	21	 
	SECTION 2.01. Commitments
	 	 	21	 
	SECTION 2.02. Loans and Borrowings
	 	 	22	 
	SECTION 2.03. Requests for Borrowings
	 	 	22	 
	SECTION 2.04. Letters of Credit
	 	 	23	 
	SECTION 2.05. Funding of Borrowings
	 	 	29	 
	SECTION 2.06. Interest Elections
	 	 	30	 
	SECTION 2.07. Termination and Reduction of Commitments
	 	 	31	 
	SECTION 2.08. Repayment of Loans; Evidence of Debt
	 	 	32	 
	SECTION 2.09. Prepayment of Loans
	 	 	32	 
	SECTION 2.10. Fees
	 	 	33	 
	SECTION 2.11. Interest
	 	 	34	 
	SECTION 2.12. Alternate Rate of Interest
	 	 	35	 
	SECTION 2.13. Increased Costs
	 	 	35	 
	SECTION 2.14. Break Funding Payments
	 	 	36	 
	SECTION 2.15. Taxes
	 	 	37	 
	SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	38	 
	SECTION 2.17. Mitigation Obligations; Replacement of Lenders
	 	 	40	 
	SECTION 2.18. Change in Law
	 	 	41	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties
	 	 	41	 
	SECTION 3.01. Organization; Powers
	 	 	41	 
	SECTION 3.02. Authorization; Enforceability
	 	 	41	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	41	 
	SECTION 3.04. Financial Condition; No Material Adverse Change
	 	 	42	 
	SECTION 3.05. Properties
	 	 	42	 
	SECTION 3.06. Litigation and Environmental Matters
	 	 	42	 
	SECTION 3.07. Compliance with Laws and Agreements
	 	 	43	 
	SECTION 3.08. Investment Company Status
	 	 	43	 
	SECTION 3.09. Taxes
	 	 	43	 
	SECTION 3.10. ERISA
	 	 	43	 
	SECTION 3.11. Disclosure
	 	 	43	 
	SECTION 3.12. Subsidiary Guarantors
	 	 	43	 
	 
	 	 	 	 
	ARTICLE IV Conditions
	 	 	44	 
	SECTION 4.01. Effective Date
	 	 	44	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 4.02. Each Credit Event
	 	 	45	 
	 
	 	 	 	 
	ARTICLE V Affirmative Covenants
	 	 	45	 
	SECTION 5.01. Financial Statements; Ratings Change and Other Information
	 	 	45	 
	SECTION 5.02. Notices of Material Events
	 	 	47	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	47	 
	SECTION 5.04. Payment of Obligations
	 	 	48	 
	SECTION 5.05. Maintenance of Properties; Insurance
	 	 	48	 
	SECTION 5.06. Books and Records; Inspection Rights
	 	 	48	 
	SECTION 5.07. Compliance with Laws
	 	 	48	 
	SECTION 5.08. Use of Proceeds and Letters of Credit
	 	 	48	 
	SECTION 5.09. Guarantee Agreement Supplement
	 	 	49	 
	 
	 	 	 	 
	ARTICLE VI Negative Covenants
	 	 	49	 
	SECTION 6.01. Indebtedness
	 	 	49	 
	SECTION 6.02. Liens
	 	 	50	 
	SECTION 6.03. Sale of Assets
	 	 	51	 
	SECTION 6.04. Fundamental Changes
	 	 	51	 
	SECTION 6.05. Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	51	 
	SECTION 6.06. Transactions with Affiliates
	 	 	52	 
	SECTION 6.07. Consolidated Leverage Ratio
	 	 	53	 
	 
	 	 	 	 
	ARTICLE VII Events of Default
	 	 	53	 
	 
	 	 	 	 
	ARTICLE VIII The Administrative Agent
	 	 	56	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	58	 
	SECTION 9.01. Notices
	 	 	58	 
	SECTION 9.02. Waivers; Amendments
	 	 	59	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	60	 
	SECTION 9.04. Successors and Assigns
	 	 	61	 
	SECTION 9.05. Survival
	 	 	62	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	62	 
	SECTION 9.07. Severability
	 	 	62	 
	SECTION 9.08. Right of Setoff
	 	 	62	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	62	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	62	 
	SECTION 9.11. Headings
	 	 	62	 
	SECTION 9.12. Confidentiality
	 	 	62	 
	SECTION 9.13. Satisfaction in Dollars
	 	 	62	 
	SECTION 9.14. Waivers and Agreements Under Existing Credit Agreement
	 	 	62	 

SCHEDULES:

Schedule 2.01 — Commitments

Schedule 2.04 — Existing Letters of Credit

ii

 

Schedule 3.12 — Guarantor Subsidiaries

Schedule 6.01 — Existing Indebtedness

Schedule 6.02 — Existing Liens

Schedule 6.05 — Existing Investments

EXHIBITS:

Exhibit A — Form of Assignment and Assumption

Exhibit B-1 — Form of Opinion of Borrower’s Counsel

Exhibit B-2 — Form of Opinion of Borrower’s Corporate Counsel

Exhibit C — Form of Guarantee Agreement

Exhibit D-1 — Form of New Lender Supplement

Exhibit D-2 — Form of Commitment Increase Supplement

iii

 

     CREDIT AGREEMENT, dated as of November 28, 2006, among POLO RALPH LAUREN CORPORATION, the
LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

          The parties hereto agree as follows:

ARTICLE I

Definitions

          SECTION 1.01.   Defined Terms.

          As used in this Agreement, the following terms have the meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Adjusted Debt” means, for any date, all Indebtedness of the Borrower and its
Subsidiaries (computed on a consolidated basis) outstanding on such date plus 800% of Consolidated
Lease Expense for the period of four consecutive Fiscal Quarters ended on such date.

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal
to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

          “Administrative Agent” means JPMorgan Chase Bank, N.A. in its capacity as
administrative agent for the Lenders hereunder.

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

          “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Alternative Currency” means any currency that is freely available, freely
transferable and freely convertible into dollars and in which dealings in deposits are carried on
in

 

2

the London interbank market, provided that such currency is reasonably acceptable to the
Administrative Agent and the applicable Issuing Bank.

          “Alternative Currency LC Exposure” means, at any time, the sum of (a) the Dollar
Equivalent, calculated in accordance with Section 1.05, of the aggregate undrawn and unexpired
amount of all outstanding Alternative Currency Letters of Credit at such time plus (b) the Dollar
Equivalent, calculated in each case using the Exchange Rate at the time the applicable LC
Disbursement is made, of the aggregate principal amount of all LC Disbursements in respect of
Alternative Currency Letters of Credit that have not yet been reimbursed at such time.

          “Alternative Currency Letter of Credit” means a Letter of Credit denominated in an
Alternative Currency.

          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments.

          “Applicable Rate” means, for any day, with respect to any Eurodollar Loan, or with
respect to the commitment fees payable hereunder, or with respect to the Applicable Commercial
Letter of Credit Rate, as the case may be, the applicable rate per annum set forth below (expressed
in basis points) under the caption “Eurodollar Spread” or “Commitment Fee Rate” or “Applicable
Commercial Letter of Credit Rate”, as the case may be, based upon the ratings by Moody’s and S&P,
respectively, applicable on such date to the Index Debt:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Applicable
	 	 	 	 	 	 	 	 	Commercial
	 	 	 	 	Eurodollar	 	Commitment	 	Letter of
	 	 	Index Debt Ratings	 	Spread	 	Fee Rate	 	Credit Rate
	Level I
	 	3 A by S&P or A2 by Moody’s	 	20.00	 	6.00	 	10.00
	 
	 	 	 	 	 	 	 	 
	Level II
	 	A- by S&P or A3 by Moody’s	 	25.00	 	7.00	 	12.50
	 
	 	 	 	 	 	 	 	 
	Level III
	 	BBB+ by S&P or Baa1 by Moody’s	 	35.00	 	8.00	 	17.50
	 
	 	 	 	 	 	 	 	 
	Level IV
	 	BBB by S&P or Baa2 by Moody’s	 	45.00	 	10.00	 	22.50
	 
	 	 	 	 	 	 	 	 
	Level V
	 	£
 BBB- by S&P or Baa3 by Moody’s	 	60.00	 	12.50	 	30.00

          For purposes of the foregoing, (i) if both Moody’s and S&P shall not have in effect a rating
for the Index Debt (other than by reason of the circumstances referred to in the

 

3

next-to-last
sentence of this definition), then such rating agency shall be deemed to have established a rating
for the Index Debt in Level V; (ii) if the ratings established or deemed to have been established
by Moody’s and S&P for the Index Debt shall fall within different Levels, the Applicable Rate shall
be based on the higher of the two ratings unless one of the two ratings is two or more Levels lower
than the other, in which case the Applicable Rate shall be determined by reference to the Level
next below that of the higher of the two ratings; and (iii) if the ratings established or deemed to
have been established by Moody’s and S&P for the Index Debt shall be changed (other than as a
result of a change in the rating system of Moody’s or S&P), such change shall be effective as of
the date on which it is first announced by the applicable rating agency, irrespective of when
notice of such change shall have been furnished by the Borrower to the Agent and the Lenders
pursuant to Section 5.01 or otherwise. Each change in the Applicable Rate shall apply during the
period commencing on the effective date of such change and ending on the date immediately preceding
the effective date of the next such change. If the rating system of Moody’s or S&P shall change,
or if both such rating agencies shall cease to be in the business of rating corporate debt
obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to
reflect such changed rating system or the unavailability of ratings from such rating agencies, and,
pending the effectiveness of any such amendment, the Applicable Rate shall be determined by
reference to the rating most recently in effect prior to such change or cessation. If either (but
not both) of Moody’s and S&P shall cease to have in effect a rating (whether as a result of such
agency ceasing to be in the business of rating corporate debt obligations or otherwise), the
applicable rate shall be determined by reference to the rating of the other rating agency.

          “Approved Fund” has the meaning assigned to such term in Section 9.04.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by
the Administrative Agent.

          “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

          “Available Commitment” means, as to any Lender at any date of determination, an amount
in dollars equal to the excess, if any, of (a) the amount of such Lender’s Commitment in effect on
such date over (b) the Revolving Credit Exposure of such Lender on such date.

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

          “Borrower” means Polo Ralph Lauren Corporation, a Delaware corporation.

          “Borrowing” means Revolving Loans of the same Type made, converted or continued on the
same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

          “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03.

 

4

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and, for the purposes
of this Agreement, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.

          “Change in Law” means (a) the adoption of any law, rule, treaty or regulation after
the date of this Agreement, (b) any change in any law, rule, treaty or regulation or in the
interpretation or application thereof by any Governmental Authority after the date of this
Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.13(b),
by any office of such Lender from or at which Loans and/or Letters of Credit are made or issued, or
are booked, as the case may be, in accordance with the terms of this Agreement) with any request,
guideline or directive (whether or not having the force of law) of any Governmental Authority made
or issued after the date of this Agreement.

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

          “Commercial Letter of Credit” means a commercial documentary letter of credit issued
by an Issuing Bank for the account of the Borrower or any of its Subsidiaries for the purchase of
goods in the ordinary course of business.

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit hereunder, expressed as an
amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure
hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.07, (b)
reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 9.04 or (c) increased from time to time pursuant to Section 2.01(b). The initial amount of
each Lender’s Commitment is set forth on Schedule 2.01, in the New Lender Supplement pursuant to
which such Lender shall become a party hereto or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the
Lenders’ Commitments is $450,000,000.

          “Commitment Increase Supplement” means a supplement to this Agreement substantially in
the form of Exhibit D-2.

          “Consolidated EBITDAR” means, for any period, Consolidated Net Income for such period
plus, without duplication and to the extent reflected as a charge in the statement of
such Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest
expense, amortization or writeoff of debt discount and debt issuance costs and commissions,

 

5

discounts and other fees and charges associated with Indebtedness (including the Loans), (c)
depreciation and amortization expense, (d) amortization of intangibles (including, but not limited
to, goodwill) and organization costs, (e) any extraordinary or non-recurring non-cash expenses or
losses (including, whether or not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, non-cash losses on sales of assets outside of the ordinary
course of business and including non-cash charges arising from the application of Statement of
Financial Accounting Standards No. 142) and (f) Consolidated Lease Expense and minus, (x)
to the extent included in the statement of such Consolidated Net Income for such period, the sum of
(i) interest income, (ii) any extraordinary or non-recurring non-cash income or gains (including,
whether or not otherwise includable as a separate item in the statement of such Consolidated Net
Income for such period, gains on the sales of assets outside of the ordinary course of business)
and (iii) income tax credits (to the extent not netted from income tax expense) and (y) any cash
payments made during such period in respect of items described in clause (e) above subsequent to
the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in
the statement of Consolidated Net Income, all as determined on a consolidated basis.

          For the purposes of calculating Consolidated EBITDAR for any period of four consecutive fiscal
quarters (each, a “Reference Period”) pursuant to any determination of the Consolidated
Leverage Ratio, (i) if at any time during such Reference Period the Borrower or any Subsidiary
shall have made any Material Disposition, the Consolidated EBITDAR for such Reference Period shall
be reduced by an amount equal to the Consolidated EBITDAR (if positive) attributable to the
property that is the subject of such Material Disposition for such Reference Period or increased by
an amount equal to the Consolidated EBITDAR (if negative) attributable thereto for such Reference
Period, and (ii) if during such Reference Period the Borrower or any Subsidiary shall have made a
Material Acquisition, Consolidated EBITDAR for such Reference Period shall be calculated after
giving pro forma effect thereto (taking into account (A) such cost savings as may
be determined by the Borrower in a manner consistent with the evaluation performed by the Borrower
in deciding to make such Material Acquisition, as presented to the Borrower’s Board of Directors,
provided that the Borrower may take into account such cost savings only if it in good faith
determines on the date of calculation that it is reasonable to expect that such cost savings will
be implemented within 90 days following the date of such Material Acquisition (or in the case of
any calculation made subsequent to such 90th day, that such cost savings have, in fact,
been implemented) and (B) all transactions that are directly related to such Material Acquisition
and are entered into in connection and substantially contemporaneously therewith) as if such
Material Acquisition occurred on the first day of such Reference Period. As used in this
definition, “Material Acquisition” means any acquisition of property or series of related
acquisitions of property that (a) constitutes (i) assets comprising all or substantially all of a
business or operating unit of a business, (ii) all or substantially all of the common stock or
other Equity Interests of a Person or (iii) in any case where clauses (i) and (ii) above are
inapplicable, the rights of any licensee (including by means of the termination of such licensee’s
rights under such license) under a trademark license to such licensee from the Borrower or any of
its Affiliates (the “Acquired Rights”), and (b) involves the payment of consideration by
the Borrower and its Subsidiaries in excess of $50,000,000; “Material Disposition” means
any Disposition of property or series of related Dispositions of property that
yields gross proceeds to the Borrower or any of its Subsidiaries in excess of $50,000,000. In
making any calculation pursuant to this paragraph with respect to a Material Acquisition of a

 

6

Person, business or rights for which quarterly financial statements are not available, the Borrower
shall base such calculation on the financial statements of such Person, business or rights for the
then most recently completed period of twelve consecutive calendar months for which such financial
statements are available and shall deem the contribution of such Person, business or rights to
Consolidated EBITDAR for the period from the beginning of the applicable Reference Period to the
date of such Material Acquisition to be equal to the product of (x) the number of days in such
period divided by 365 multiplied by (y) the amount of Consolidated EBITDAR of such Person, business
or rights for the twelve-month period referred to above (calculated on the basis set forth in this
definition). In making any calculation pursuant to this paragraph in connection with an
acquisition of Acquired Rights to be followed by the granting of a new license of such Acquired
Rights (or any rights derivative therefrom), effect may be given to such grant of such new license
(as if it had occurred on the date of such acquisition) if, and only if, the Borrower in good faith
determines on the date of such calculation that it is reasonable to expect that such grant will be
completed within 90 days following the date of such acquisition (or in the case of any calculation
made subsequent to such 90th day, that such grant has, in fact, been completed).

          “Consolidated Lease Expense” means, for any period, the aggregate amount of fixed and
contingent rentals payable by the Borrower and its Subsidiaries for such period with respect to
leases of real and personal property, determined on a consolidated basis in accordance with GAAP;
provided that payments in respect of Capital Lease Obligations shall not constitute
Consolidated Lease Expense.

          “Consolidated Leverage Ratio” means on the last day of any Fiscal Quarter, the ratio
of (a) Adjusted Debt on such day to (b) Consolidated EBITDAR for the period of four consecutive
Fiscal Quarters ending on such day.

          “Consolidated Net Income” means for any period, the consolidated net income (or loss)
of the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP;
provided that there shall be excluded (a) the income (or deficit) of any Person accrued
prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with
the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a
Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership
interest, except to the extent that any such income is actually received by the Borrower or such
Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of
any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary is not at the time permitted by the terms of any
Contractual Obligation (other than under any Loan Document) or Requirement of Law applicable to
such Subsidiary.

          “Consolidated Net Worth” means as of any date of determination thereof, the excess of
(a) the aggregate consolidated net book value of the assets of the Borrower and its Subsidiaries
after all appropriate adjustments in accordance with GAAP (including, without limitation, reserves
for doubtful receivables, obsolescence, depreciation and amortization) over (b) all of the
aggregate liabilities of the Borrower and its Subsidiaries, including all items which,
in accordance with GAAP, would be included on the liability side of the balance sheet (other
than Equity Interests, treasury stock, capital surplus and retained earnings), in each case

 

7

determined on a consolidated basis (after eliminating all inter-company items) in accordance with
GAAP; provided, however, that in calculating Consolidated Net Worth the effects of
the Statement of Financial Accounting Standards No. 142 shall be disregarded.

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Disposition” means with respect to any property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and “Disposed
of” shall have correlative meanings.

          “Dollar Equivalent” means, on any date of determination, (a) with respect to any
amount hereunder denominated in an Alternative Currency for purposes of calculations with respect
to the matters referred to in Section 1.05, the amount of dollars that may be purchased with such
amount of such currency at the applicable rate of exchange determined in accordance with such
Section, (b) with respect to any calculation involving the amount of any drawing under any
Alternative Currency Letter of Credit, the amount in dollars into which the relevant amount in such
Alternative Currency would be converted based upon the relevant Exchange Rate in effect at the time
the applicable Issuing Bank makes payment under such Letter of Credit and (c) with respect to any
calculation involving the amount of any Standby Letter of Credit fee payable pursuant to Section
2.04(f)(ii) with respect to any Alternative Currency Letter of Credit, the amount in dollars into
which the relevant undrawn amount of such Alternative Currency Letter of Credit would be converted
based upon the applicable Exchange Rate in effect on the date payment of such fee is due;
provided, however, that, solely for purposes of calculating the Alternative
Currency L/C Exposure under the first clause (ii) in Section 2.04(b), the foregoing calculations
shall take into account (including with respect to the date applicable to the Exchange Rate
determination), to the extent applicable, any Swap Agreements with respect to any Alternative
Currency applicable to any Alternative Currency Letters of Credit.

          “dollars” or “$” refers to lawful money of the United States of America.

          “Domestic Subsidiary” means any Subsidiary organized under the laws of any
jurisdiction within the United States of America.

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02).

          “Environmental Laws” means 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, or to human health and safety (insofar as
such

 

8

health and safety may be adversely affected by exposure to dangerous or harmful substances or
environmental conditions), as have been, are, or in the future become, in effect.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

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

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

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

 

9

          “Exchange Rate” means, on any day, with respect to any Alternative Currency, the rate
determined by the Administrative Agent at which such Alternative Currency may be exchanged into
dollars, as set forth at approximately 11:00 a.m., London time, on such day (or, in the case of any
calculation involving the amount of any LC Disbursement under any Alternative Currency Letter of
Credit, at the time payment thereof is made) on the applicable Reuters World Spot Page. In the
event that any such rate does not appear on any Reuters World Spot Page, the Exchange Rate shall be
determined by reference to such other publicly available service for displaying exchange rates
reasonably selected by the Administrative Agent in consultation with the Borrower for such purpose
or, at the discretion of the Administrative Agent in consultation with the Borrower, such Exchange
Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative
Agent in the market where its foreign currency exchange operations in respect of such Alternative
Currency are then being conducted, at or about 11:00 a.m., local time, on such day (or, in the case
of any calculation involving the amount of any LC Disbursement under any Alternative Currency
Letter of Credit, at the time payment thereof is made) for the purchase of the applicable
Alternative Currency for delivery two Business Days later, provided that, if at the time of
any such determination, for any reason, no such spot rate is being quoted, the Administrative Agent
may use any other reasonable method it deems appropriate to determine such rate, and such
determination shall be presumed correct absent manifest error.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income or
gross receipts by the United States of America, or by any other Governmental Authority as a result
of a present or former connection between the Administrative Agent, any Lender, any Issuing Bank or
any other recipient of any payment to be made by the Borrower under this Agreement and the
jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing
authority thereof or therein (other than any such connection arising solely from the Administrative
Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by the
Borrower under this Agreement having executed, delivered or performed its obligations or received a
payment under, or enforced, this Agreement or any other Loan Document), (b) any branch profits
taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction
described in clause (a) above, (c) in the case of a Foreign Lender, including any Issuing Bank that
is a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section
2.17(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time
such Foreign Lender becomes a party to this Agreement (or (i) causes pursuant to Section 2.02(b) a
new branch or an Affiliate to make any Loan, or (ii) designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with Section 2.15(e), except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 2.15(a), and (d) any amounts with respect to any taxes
described in clause (a), (b) or (c) above that are imposed as a result of any event occurring after
the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment to
be made by the Borrower under this Agreement becomes a party to this Agreement, other than a
Change in Law.

 

10

          “Existing Credit Agreement” means the Credit Agreement, dated as of October 6, 2004
among the Borrower, the several banks and other financial institutions parties thereto and JPMorgan
Chase Bank, N.A., as administrative agent, as heretofore amended, supplemented or otherwise
modified.

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized national standing
selected by it, in its reasonable discretion.

          “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Borrower.

          “Fiscal Quarter” means with respect to the Borrower and its Subsidiaries, and with
respect to any Fiscal Year, (a) each of the quarterly periods ending 13 calendar weeks, 26 calendar
weeks, 39 calendar weeks and 52 or 53 calendar weeks, as the case may be, after the end of the
prior Fiscal Year or (b) such other quarterly periods as the Borrower shall adopt after giving
prior written notice thereof to the Lenders.

          “Fiscal Year” means with respect to the Borrower and its Subsidiaries, (a) the 52- or
53-week annual period, as the case may be, ending on the Saturday nearest to March 31 of each
calendar year or (b) such other fiscal year as the Borrower shall adopt with the prior written
consent of the Required Lenders (which consent shall not be unreasonably withheld). Any
designation of a particular Fiscal Year by reference to a calendar year shall mean the Fiscal Year
ending during such calendar year.

          “Foreign Lender” means any Lender that is organized under the laws of (or the
applicable lending office of which is located in) a jurisdiction other than that in which the
Borrower is located. For purposes of this definition, the United States of America, each State
thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

          “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.

          “GAAP” means generally accepted accounting principles in the United States of America.

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of

 

11

guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business. For purposes of all calculations provided for in this
Agreement, the amount of any Guarantee of any guarantor shall be deemed to be the lower of (x) an
amount equal to the stated or determinable amount of the primary obligation in respect of which
such Guarantee is made and (y) the maximum amount for which such guarantor may be liable pursuant
to the terms of the instrument embodying such Guarantee, unless such primary obligation and the
maximum amount for which such guarantor may be liable are not stated or determinable, in which case
the amount of such Guarantee shall be such guarantor’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith.

          “Guarantee Agreement” means the Guarantee Agreement to be executed and delivered by
each Guarantor, substantially in the form of Exhibit C.

          “Guarantor” means each Domestic Subsidiary that becomes a party to the Guarantee
Agreement on the Effective Date and each Domestic Subsidiary that, subsequent to the Effective
Date, becomes a Significant Subsidiary (as defined in Regulation S-X part 210.1-02 of the Code of
Federal Regulations) or any Subsidiary which is designated to be a Guarantor by written notice from
the Borrower to the Administrative Agent and, in each case, becomes a party to the Guarantee
Agreement.

          “Hazardous Materials” means 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 applicable Environmental Law.

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person under conditional sale or other title retention agreements relating to property
acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase
price of property or services (excluding accounts payable incurred in the ordinary course of
business), (e) all Indebtedness of others secured by any Lien on property owned or acquired by such
Person (to the extent of such Person’s interest in such property), whether or not the Indebtedness
secured thereby has been assumed, (f) all Guarantees by such Person of
Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h) all obligations,
contingent or otherwise, of such Person as an account party in respect of letters of credit and

 

12

letters of guaranty, (i) all obligations, contingent or otherwise, of such Person in respect of
bankers’ acceptances and (j) all payment and performance obligations of every kind, nature and
description of such Person under or in connection with Swap Agreements. The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor. For purposes of all
calculations provided for in this Agreement, there shall be disregarded any Guarantee of any Person
in respect of any Indebtedness of any other Person with which the accounts of such first Person are
then required to be consolidated in accordance with GAAP.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the
Borrower that is not guaranteed by any other Person or subject to any other credit enhancement.

          “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.06.

          “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each
March, June, September and December and (b) with respect to any Eurodollar Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of three months’ duration after the
first day of such Interest Period.

          “Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower may elect;
provided, that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day and (ii) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the last calendar month of such Interest Period) shall end on the last Business Day of the
last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and, in the case of a Borrowing,
thereafter shall be the effective date of the most recent conversion or continuation of such
Borrowing.

          “Investment” means, as applied to any Person, any direct or indirect purchase or other
acquisition by such Person of Equity Interests or other securities of, or any assets constituting a
business unit of, any other Person, or any direct or indirect loan, advance or capital contribution
by such Person to any other Person. In computing the amount involved in any
Investment at the time outstanding, (a) undistributed earnings of, and unpaid interest accrued
in respect of Indebtedness owing by, such other Person shall not be included, (b) there shall not
be

 

13

deducted from the amounts invested in such other Person any amounts received as earnings (in the
form of dividends, interest or otherwise) on such Investment or as loans from such other Person and
(c) unrealized increases or decreases in value, or write-ups, write-downs or write-offs, of
Investments in such other Person shall be disregarded.

          “Issuing Bank” means, as the context may require, (a) JPMorgan Chase Bank, N.A.,
Wachovia Bank National Association and The Bank of New York, each with respect to Letters or Credit
issued by it or (b) any other Lender that becomes an Issuing Bank pursuant to Section 2.04(l), with
respect to Letters of Credit issued by it, and in each case its successors in such capacity as
provided in Section 2.04(j). Any Issuing Bank may, in its discretion, arrange for one or more
Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing
Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate;
provided, however, that no arrangement of a type described in this sentence shall
be permitted if, immediately after giving effect thereto, amounts would become payable by the
Borrower under Section 2.13 or 2.15 that are in excess of those that would be payable under such
Section if such arrangement were not implemented and, provided, further, that the
fees payable to any such Affiliate shall be subject to the second sentence of Section 2.10(b).

          “Lauren” means Ralph Lauren, an individual.

          “LC Disbursement” means a payment made by the applicable Issuing Bank pursuant to a
Letter of Credit.

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit (other than Alternative Currency Letters of Credit) at such time, (b)
the aggregate amount of all LC Disbursements under Letters of Credit (other than Alternative
Currency Letters of Credit) that have not yet been reimbursed by or on behalf of the Borrower at
such time and (c) the Alternative Currency LC Exposure at such time. The LC Exposure of any Lender
at any time shall be its Applicable Percentage of the total LC Exposure at such time.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption or a New Lender Supplement,
other than any such Person that ceases to be a party hereto pursuant to an Assignment and
Assumption.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period,
as the rate for dollar deposits with a maturity comparable to such Interest Period. In the
event that such rate is not available at such time for any reason, then the “LIBO Rate”
with respect to

 

14

such Eurodollar Borrowing for such Interest Period shall be the rate at which
dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

          “Loan Documents” means this Agreement and the Guarantee Agreement

          “Loan Party” means the Borrower and the Guarantors.

          “Loans” means the loans made by the Lenders to the Borrower pursuant to this
Agreement.

          “Material Adverse Effect” means a material adverse effect on (a) the business,
operations, property or condition (financial or otherwise) of the Borrower and the Subsidiaries
taken as a whole or (b) the rights and remedies, taken as a whole, of the Administrative Agent and
the Lenders under the Loan Documents.

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

          “Maturity Date” means November 28, 2011.

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

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

          “Net Income” (“Net Loss”) means with respect to any Person or group of
Persons, as the case may be, for any fiscal period, the difference between (a) gross revenues of
such Person or group of Persons and (b) all costs, expenses and other charges incurred in
connection with the generation of such revenue (including, without limitation, taxes on income),
determined on a consolidated or combined basis, as the case may be, and in accordance with GAAP.

          “New Lender” has the meaning assigned to such term in Section 2.01(c).

 

15

          “New Lender Supplement” has the meaning assigned to such term in Section 2.01(c).

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

          “Participant” has the meaning set forth in Section 9.04.

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Permitted Acquisition” means any acquisition (in one transaction or a series of
related transactions) by the Borrower or any Subsidiary, on or after the Effective Date (whether
effected through a purchase of Equity Interests or assets or through a merger, consolidation or
amalgamation), of (i) another Person, (ii) the assets constituting all or substantially all of a
business or operating business unit of another Person or (iii) in any case where clauses (i) and
(ii) above are inapplicable, the rights of any licensee (including by means of the termination of
such license’s rights under such license) under a trademark license to such licensee from the
Borrower or any of its Affiliates, provided that:

     (a) the assets so acquired or, as the case may be, the assets of the Person so acquired
shall be in a Related Line of Business;

     (b) no Default shall have occurred and be continuing at the time thereof or would
result therefrom;

     (c) such acquisition shall be effected in such manner so that the acquired Equity
Interests, assets or rights are owned either by the Borrower or a Subsidiary and, if
effected by merger, consolidation or amalgamation, the continuing, surviving or resulting
entity shall be the Borrower or a Subsidiary, provided that, nothing in this clause
shall be deemed to limit the ability of the Borrower or any Subsidiary to grant to a
different licensee any acquired license rights described in clause (iii) above (or any
rights derivative therefrom); and

     (d) the Borrower and its Subsidiaries shall be in compliance, on a pro
forma basis after giving effect to such acquisition, with the covenant contained in
Section 6.07 recomputed as at the last day of the most recently ended fiscal quarter of the
Borrower for which financial statements are available, as if such acquisition had occurred
on the first day of each relevant period for testing such compliance.

          “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes and duties, assessments, governmental charges or
levies that are not yet due or are being contested in compliance with Section 5.04;

 

16

     (b) landlords, carriers’, warehousemen’s, mechanics’, shippers’, materialmen’s,
repairmen’s and other like Liens imposed by law, arising in the ordinary course of business
and securing obligations that are not overdue by more than 30 days or are being contested in
compliance with Section 5.04;

     (c) pledges and deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security laws or regulations,
and deposits securing liability to insurance carriers under insurance or self-insurance
arrangements;

     (d) deposits to secure the performance of tenders, bids, trade contracts, leases,
public or statutory obligations, warranty requirements, surety and appeal bonds, performance
and bid bonds and other obligations of a like nature, in each case in the ordinary course of
business;

     (e) Liens incurred in the ordinary course of business in connection with the sale,
lease, transfer or other disposition of any credit card receivables of the Borrower or any
of its Subsidiaries;

     (f) judgment, attachment or other similar liens in respect of judgments that do not
constitute an Event of Default under clause (k) of Article VII;

     (g) easements, zoning restrictions, restrictive covenants, encroachments, rights-of-way
and similar encumbrances on real property imposed by law or arising in the ordinary course
of business that do not secure any monetary obligations and do not materially detract from
the value of the affected property or interfere with the ordinary conduct of business of the
Borrower or any Subsidiary; and

     (h) possessory Liens in favor of brokers and dealers arising in connection with the
acquisition or disposition of Permitted Investments.

provided that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

          “Permitted Investments” means:

     (a) direct obligations of, or obligations the principal of and interest on which are
directly and fully guaranteed or insured by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit of the United
States of America);

     (b) investments in commercial paper having, at such date of acquisition, a credit
rating of at least A-2 from S&P or P-2 from Moody’s;

     (c) investments in certificates of deposit, eurodollar time deposits, banker’s
acceptances and time deposits maturing within one year from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts

 

17

issued or offered by, any Lender or any commercial bank which has a combined capital
and surplus and undivided profits of not less than $100,000,000;

     (d) repurchase agreements with a term of not more than 30 days for securities described
in clause (a) above and entered into with a financial institution satisfying the criteria
described in clause (c) above;

     (e) securities with maturities of two years or less from the date of acquisition issued
or fully guaranteed by any state, commonwealth or territory of the United States or by any
political subdivision or taxing authority of any such state, commonwealth or territory or by
any foreign government, the securities of which state, commonwealth or territory, political
subdivision, taxing authority or foreign government (as the case may be) are rated, at such
date of acquisition, at least A by S&P or A2 by Moody’s;

     (f) securities with maturities of two years or less from the date of acquisition backed
by standby letters of credit issued by any Lender or any commercial bank satisfying the
requirements of clause (c) of this definition;

     (g) shares of money market funds that (i) comply with the criteria set forth in (a)
Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940 or (b)
Securities and Exchange Commission Rule 3c-7 under the Investment Company Act of 1940 and
(ii) have portfolio assets of at least (x) in the case of funds that invest exclusively in
assets satisfying the requirements of clause (a) of this definition, $250,000,000 and (y) in
all other cases, $500,000,000;

     (h) in the case of investments by any Foreign Subsidiary, obligations of a credit
quality and maturity comparable to that of the items referred to in clauses (a) through (g)
above that are available in local markets;

     (i) investments in auction rate securities with a rating of AAA from S&P and a maximum
holding period of 45 days, for which the reset date will be used to determine the maturity
date; and

     (j) investments in short term loan participations of up to 35 days if the short term
debt rating is A-2 from S&P or P-2 from Moody’s or an equivalent long term rating of
investment grade by Moody’s or S&P exists.

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

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New

 

18

York City; each change in the Prime Rate shall be effective from and including the date such
change is publicly announced as being effective.

          “Priority Indebtedness” means (a) Indebtedness of the Borrower or any Subsidiary
(other than that described in Section 6.01(e)) secured by any Lien on any asset(s) of the Borrower
or any Subsidiary and (b) Indebtedness of any Subsidiary which is not a Guarantor, in each case
owing to a Person other than the Borrower or any Subsidiary.

          “Register” has the meaning set forth in Section 9.04.

          “Related Line of Business” means: (a) any line of business in which the Borrower or
any of its Subsidiaries is engaged as of, or immediately prior to, the Effective Date, (b) any
wholesale, retail or other distribution of products or services under any domestic or foreign
patent, trademark, service mark, trade name, copyright or license or (c) any similar, ancillary or
related business and any business which provides a service and/or supplies products in connection
with any business described in clause (a) or (b) above.

          “Related Parties” means, 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.

          “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and
unused Commitments representing more than 50% of the sum of the total Revolving Credit Exposures
and unused Commitments at such time; provided, however, that if any Lender defaults
in its obligations to fund Loans hereunder, there shall be excluded from the determination of
Required Lenders at such time such Lender’s pro rata share of the total Revolving Credit Exposures
and unused Commitments.

          “Requirement of Law” means, as to any Person, the Articles or Certificate of
Incorporation and By-Laws or Certificate of Partnership or partnership agreement or other
organizational or governing documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its
property is subject.

          “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure at such time.

          “Revolving Loan” means a Loan made pursuant to Section 2.03.

          “S&P” means Standard & Poor’s.

          “Standby Letter of Credit” means an irrevocable letter of credit pursuant to which an
Issuing Bank agrees to make payments in dollars or an Alternative Currency for the account of the
Borrower or any of its Subsidiaries in respect of obligations of the Borrower or any of its
Subsidiaries incurred pursuant to contracts made or performances undertaken or to be undertaken or
like matters relating to contracts to which the Borrower or any of its Subsidiaries is or

 

19

proposes to become a party in the ordinary course of the Borrower’s or any of its
Subsidiaries’ business, including for insurance purposes and in connection with lease transactions.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. The
Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any subsidiary of the Borrower.

          “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option, cap or collar agreements or similar agreement involving, or
settled by reference to, one or more interest or exchange rates, currencies, commodities, equity or
debt instruments or securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any combination of these
transactions; provided that no phantom stock or similar plan providing for payments only on
account of services provided by current or former directors, officers, employees or consultants of
the Borrower or the Subsidiaries shall be a Swap Agreement.

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

          “Transactions” means the execution, delivery and performance by the Borrower of this
Agreement and by the Guarantors of the Guarantee Agreement, the borrowing of Loans, the use of the
proceeds thereof and the issuance of Letters of Credit hereunder.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

          “Voting Stock” means stock of any class or classes (however designated), or other
equity ownership interests, of any Person, the holders of which are at the time entitled, as such

 

20

holders, to vote for the election of the directors or other governing body of the Person
involved, whether or not the right so to vote exists by reason of the happening of a contingency.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          SECTION 1.02.   Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). Borrowings
also may be classified and referred to by Type (e.g., a “Eurodollar Borrowing”).

          SECTION 1.03.   Terms Generally. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

          SECTION 1.04.   Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time; provided that, if the Borrower notifies the Administrative
Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of
any change occurring after the date hereof in GAAP or in the application thereof on the operation
of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

          SECTION 1.05.   Exchange Rates. For purposes of calculating the Alternative Currency LC Exposure at any time during any
period and the Dollar Equivalent at the time of issuance of any Alternative Currency Letter of
Credit then requested to be issued pursuant to Section 2.04(b), the Administrative Agent will at
least once during each calendar month and at such other times as it in its sole discretion decides
to do so, determine the respective rate of exchange into dollars of each Alternative Currency in
which an Alternative Currency Letter of

 

21

Credit is then outstanding (which rate of exchange shall be
based upon the Exchange Rate in effect on date of such determination). Such rates of exchange so
determined on each such determination date shall, for purposes of the calculations described in the
preceding sentence, be deemed to remain unchanged and in effect until the next such determination
date.

ARTICLE II

The Credits

          SECTION 2.01.   Commitments. (a) Subject to the terms and conditions set forth
herein, each Lender severally agrees to make Revolving Loans in dollars to the Borrower from time
to time during the Availability Period in an aggregate principal amount that will not result in
such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment. Within the foregoing
limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay
and reborrow Revolving Loans.

          (b)   The Borrower and any one or more Lenders (including New Lenders) may from time to time
after the Effective Date agree that such Lender or Lenders shall establish a new Commitment or
Commitments or increase the amount of its or their Commitment or Commitments by executing and
delivering to the Administrative Agent, in the case of each New Lender, a New Lender Supplement
meeting the requirements of Section 2.01(c) or, in the case of each Lender which is not a New
Lender, a Commitment Increase Supplement meeting the requirements of Section 2.01(d).
Notwithstanding the foregoing, without the consent of the Required Lenders, (x) the aggregate
amount of incremental Commitments established or increased after the Effective Date pursuant to
this paragraph shall not exceed $150,000,000, (y) unless otherwise agreed to by the Administrative
Agent, each increase in the aggregate Commitments effected pursuant to this paragraph shall be in a
minimum aggregate amount of at least $15,000,000 and (z) unless otherwise agreed by the
Administrative Agent, increases in Commitments may be effected on no more than three occasions
pursuant to this paragraph. No Lender shall have any obligation to participate in any increase
described in this paragraph unless it agrees to do so in its sole discretion.

          (c)   Any additional bank, financial institution or other entity which, with the consent of
the Borrower and the Administrative Agent (which consents shall not be unreasonably withheld),
elects to become a “Lender” under this Agreement in connection with any transaction described in
Section 2.01(b) shall execute a New Lender Supplement (each, a “New Lender Supplement”),
substantially in the form of Exhibit D-1, whereupon such bank, financial institution or other
entity (a “New Lender”) shall become a Lender, with a Commitment in the
amount set forth therein that is effective on the date specified therein, for all purposes and
to the same extent as if originally a party hereto and shall be bound by and entitled to the
benefits of this Agreement.

          (d)   Any Lender, which, with the consent of the Borrower and the Administrative Agent, elects
to increase its Commitment under this Agreement shall execute and deliver to the Borrower and the
Administrative Agent a Commitment Increase Supplement specifying (i) the amount of such Commitment
increase, (ii) the amount of such Lender’s total Commitment after

 

22

giving effect to such Commitment
increase, and (iii) the date upon which such Commitment increase shall become effective.

          (e)   Unless otherwise agreed by the Administrative Agent, on each date upon which the
Commitments shall be increased pursuant to this Section, the Borrower shall prepay all then
outstanding Revolving Loans, which prepayment shall be accompanied by payment of all accrued
interest on the amount prepaid and any amounts payable pursuant to Section 2.14 in connection
therewith, and, to the extent it determines to do so, reborrow Revolving Loans from all the Lenders
(after giving effect to the new and/or increased Commitments becoming effective on such date). Any
prepayment and reborrowing pursuant to the preceding sentence shall be effected, to the maximum
extent practicable, through the netting of amounts payable between the Borrower and the respective
Lenders.

          SECTION 2.02.   Loans and Borrowings. (a) Each Revolving Loan shall be made as
part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with
their respective Commitments. The failure of any Lender to make any Loan required to be made by it
shall not relieve any other Lender of its obligations hereunder; provided that the
Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s
failure to make Loans as required.

          (b)   Subject to Section 2.12, each Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may
make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not affect the obligation
of the Borrower to repay such Loan in accordance with the terms of this Agreement; and
provided, further, that no such option may be exercised by any Lender if,
immediately after giving effect thereto, amounts would become payable by the Borrower under Section
2.13 or 2.15 that are in excess of those that would be payable under such Section if such option
were not exercised.

          (c)   At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of $500,000 and not less than
$5,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $500,000 and not less than $500,000; provided that
an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the
total Commitments or that is required to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.04(e). Borrowings of more than one Type may
be outstanding at the same time; provided that there shall not at any time be more
than a total of fifteen (15) Eurodollar Borrowings outstanding.

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

          SECTION 2.03.   Requests for Borrowings. To request a Loan, the Borrower shall
notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar
Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date

 

23

of
the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York
City time, on the date
of the proposed Borrowing. Each such telephonic Borrowing Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative
Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.02:

     (i)    the aggregate amount of the requested Borrowing;

     (ii)    the date of such Borrowing, which shall be a Business Day;

     (iii)    whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

     (iv)    in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period”; and

     (v)    the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.05.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an
ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04.   Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower may request the issuance of Letters of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit) in the form of Commercial
Letters of Credit or Standby Letters of Credit for its own account or the account of its
Subsidiaries, in a form reasonably acceptable to the applicable Issuing Bank (provided that each
Letter of Credit shall provide for payment against sight drafts drawn thereunder), at any time and
from time to time during the Availability
Period. In the event of any inconsistency between the terms and conditions of this Agreement
and the terms and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, the applicable Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control. The
letters of credit identified on Schedule 2.04 shall be deemed to be “Letters of Credit” issued on
the Effective Date for all purposes of the Loan Documents.

          (b)    Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To
request the issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by
electronic communication, if arrangements for doing so have been approved by the applicable Issuing
Bank) to the applicable Issuing Bank and, in the case of a Commercial Letter of Credit if the
Administrative Agent shall have so requested and in the case of all Standby Letters of Credit,

 

24

the
Administrative Agent (in each case, reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension, the currency in which such Letter of Credit is to be
denominated (which shall be dollars or, subject to Section 2.18, an Alternative Currency), the name
and address of the beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit, provided that in no event shall any Issuing
Bank other than JPMorgan Chase Bank or one or more other Issuing Banks designated from time to time
by the Borrower and reasonably acceptable to the Administrative Agent issue any Alternative
Currency Letter of Credit hereunder. If requested by the applicable Issuing Bank, the Borrower
also shall submit a letter of credit application on such Issuing Bank’s standard form in connection
with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or
extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the
Borrower shall be deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension (i) the LC Exposure shall not exceed (x) $150,000,000, in the case
of Standby Letters of Credit, or (y) $250,000,000, in the case of Commercial Letters of Credit,
(ii) the Alternative Currency LC Exposure with respect to Letters of Credit denominated in an
Alternative Currency shall not exceed $50,000,000, and (iii) the total Revolving Credit Exposures
shall not exceed the total Commitments. Subsequent to the receipt by any Issuing Bank of a
Notification Instruction (as defined below) from the Administrative Agent which shall not have been
withdrawn, such Issuing Bank will contact the Administrative Agent prior to the issuance or
increase in any Letter of Credit to determine whether or not such issuance or increase would result
in any of the limitations set forth in the preceding sentence being exceeded. For purposes of this
Section 2.04(b), a “Notification Instruction” shall mean any instruction from the Administrative
Agent requiring that an Issuing Bank make the contacts described in the preceding sentence, which
instruction the Administrative Agent (i) may deliver at any time when it determines that the
percentage which the aggregate Revolving Credit Exposure constitutes of the aggregate Commitments
then in effect is greater than 80% and (ii) will withdraw when it determines that such percentage
is less than 80%. For purposes of the third preceding sentence the amount of any Alternative
Currency Letter of Credit shall be the Dollar Equivalent thereof calculated on the basis of the
applicable rate of exchange determined in accordance with Section 1.05.

          (c)   Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to the Maturity Date.

          (d)   Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to
such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter
of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent in dollars, for the account of such
Issuing Bank, such Lender’s Applicable Percentage of (i) each LC Disbursement made by such Issuing
Bank in dollars and (ii) the Dollar Equivalent, using the

 

25

Exchange Rate at the time such payment is
made, of each LC Disbursement made by such Issuing Bank in an Alternative Currency and, in each
case, not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section,
or of any reimbursement payment required to be refunded to the Borrower for any reason. Each
Lender acknowledges and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e)   Reimbursement. If any Issuing Bank shall make any LC Disbursement in respect of
a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to such Issuing
Bank an amount equal to such LC Disbursement in dollars, on the date that such LC Disbursement is
made (or, if such date is not a Business Day, on or before the next Business Day); provided
that, if such LC Disbursement is made under an Alternative Currency Letter of Credit, automatically
and with no further action required, such Borrower’s obligation to reimburse the applicable LC
Disbursement shall be permanently converted into an obligation to reimburse the Dollar Equivalent,
calculated using the Exchange Rate at the time such payment is made, of such LC Disbursement, and
provided, further, that, in the case of any such reimbursement obligation which is
in an amount of not less than $500,000, the Borrower may, subject to the conditions to borrowing
set forth herein, request in accordance with Section 2.03 that such payment be financed in dollars
with an ABR Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing.
If the Borrower fails to make when due any reimbursement payment required pursuant to this
paragraph, the applicable Issuing Bank shall immediately notify the Administrative Agent, which
shall promptly notify each Lender of the applicable LC Disbursement, the Dollar Equivalent thereof
calculated in accordance with the preceding sentence (if such LC Disbursement relates to an
Alternative Currency Letter of Credit), the reimbursement payment then due from the Borrower in
respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt of
such notice, each Lender (other than such Issuing Bank) shall pay to the Administrative Agent in
dollars its Applicable Percentage of the reimbursement payment then due from the Borrower, in the
same manner as provided in Section 2.05 with respect to Loans made by such Lender (and Section 2.05
shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to such Issuing Bank in dollars the amounts so received by
it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from
the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to
the applicable Issuing Bank or, to the extent that Lenders have made payments pursuant to this
paragraph to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their
interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse an
Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above)
shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such
LC Disbursement.

 

26

          (f)   Letter of Credit Fees.

     (i)    Commercial Letter of Credit Fee. The Borrower agrees to pay to the
Administrative Agent, for the account of the applicable Issuing Bank and the Lenders, a
Commercial Letter of Credit fee calculated at the rate per annum equal to the Applicable
Rate applicable to Commercial Letters of Credit from time to time in effect on the aggregate
average daily amount available to be drawn (calculated, in the case of any Alternative
Currency Letter of Credit, on the basis of the Dollar Equivalent thereof using the
applicable Exchange Rate in effect on the date payment of such fee is due) under each
Commercial Letter of Credit issued hereunder (and in no event less than $500 with respect to
each such Commercial Letter of Credit). Commercial Letter of Credit Fees accrued through
and including the last day of March, June, September and December of each year shall be
payable in arrears on the fifth Business Day following such last day, commencing on the
first such date to occur after the date hereof. The Administrative Agent will promptly pay
to the Issuing Banks and the Lenders their pro rata shares of any amounts received from the
Borrower in respect of any such fees. Commercial Letter of Credit fees shall be computed on
the basis of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

     (ii)    Standby Letter of Credit Fees. The Borrower agrees to pay to the
Administrative Agent, for the account of the applicable Issuing Bank and the Lenders, a
Standby Letter of Credit fee calculated at the rate per annum equal to the Applicable Rate
applicable to Eurodollar Loans from time to time in effect on the aggregate average daily
amount available to be drawn (calculated, in the case of any Alternative Currency Letter of
Credit, on the basis of the Dollar Equivalent thereof using the applicable Exchange Rate in
effect on the date payment of such fee is due) under each Standby Letter of Credit issued
hereunder (and in no event less than $500 with respect to each such Standby Letter of
Credit). Standby Letter of Credit Fees accrued through and including the last day of March,
June, September and December of each year shall be payable in arrears on the fifth Business
Day following such last day, commencing on the first such date to occur after the date
hereof. The Administrative Agent will promptly pay to the Issuing Banks and the Lenders
their pro rata shares of any amounts received from the Borrower in
respect of any such fees. Standby Letter of Credit fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

          (g)   Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements
as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit, any application for the issuance of a Letter of Credit or this Agreement, or any
term or provision therein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the applicable Issuing Bank under a Letter of Credit
against presentation of a draft or other document that does not comply with the terms of such
Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any
of the foregoing, that might, but for the provisions of this Section, constitute a legal or

 

27

equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder.
Neither the Administrative Agent, the Lenders nor any Issuing Bank, nor any of their Related
Parties, shall have any liability or responsibility by reason of or in connection with the issuance
or transfer of any Letter of Credit or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any consequence arising from
causes beyond the control of the applicable Issuing Bank; provided that the foregoing shall
not be construed to excuse such Issuing Bank from liability to the Borrower to the extent of any
direct damages (as opposed to consequential damages, claims in respect of which are hereby waived
by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused
by such Issuing Bank’s failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly
agree that, in the absence of gross negligence, bad faith or willful misconduct on the part of an
Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall
be deemed to have exercised care in each such determination. In furtherance of the foregoing and
without limiting the generality thereof, the parties agree that, with respect to documents
presented which appear on their face to be in substantial compliance with the terms of a Letter of
Credit, an Issuing Bank may, in its sole discretion, either accept and make payment upon such
documents without responsibility for further investigation, regardless of any notice or information
to the contrary, or refuse to accept and make payment upon such documents if such documents are not
in strict compliance with the terms of such Letter of Credit.

          (h)   Disbursement Procedures. The applicable Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for payment under a
Letter of Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for payment and whether such Issuing
Bank has made or will make an LC Disbursement thereunder; provided that any failure to give
or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such
Issuing Bank and the Lenders with respect to any such LC Disbursement.

          (i)   Interim Interest. If an Issuing Bank shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, including by financing such payment obligation with an ABR Loan in accordance with
paragraph (e) of this Section (or, if such date is not a Business Day, on or prior to the next
Business Day), the unpaid amount thereof shall bear interest, for each day from and including the
date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Loans; provided that, if the
Borrower fails to reimburse such LC Disbursement when due (including by financing such payment
obligation with an ABR Loan) pursuant to paragraph (e) of this Section, then Section 2.11(c) shall
apply; and provided, further, that, in the case of an LC Disbursement made under an
Alternative Currency Letter of Credit, the amount of interest due with respect thereto shall accrue
on the Dollar Equivalent, calculated using the Exchange Rate at the time such LC Disbursement was
made, of such LC Disbursement. Interest accrued pursuant to this paragraph shall be for the
account of the applicable Issuing Bank, except that interest accrued on

 

28

and after the date of
payment by any Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank
shall be for the account of such Lender to the extent of such payment.

          (j)   Replacement of any Issuing Bank. Any Issuing Bank may be replaced at any time
by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and
the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such
replacement of such Issuing Bank. At the time any such replacement shall become effective, the
Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.04(f) and 2.10(b). From and after the effective date of any such replacement, (i) the
successor Issuing Bank shall have all the rights and obligations of such Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to
the term “Issuing Bank” shall be deemed to include a reference to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.
After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party
hereto and shall continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not
be required to issue additional Letters of Credit.

          (k)   Cash Collateralization. If any Event of Default shall occur and be continuing,
on the Business Day that the Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 50% of the then total LC Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders,
an amount in dollars and in cash equal to the LC Exposure as of such date plus any accrued and
unpaid interest thereon; provided that (i) the portions of such amount attributable to
undrawn Alternative Currency Letters of Credit shall be deposited in the applicable Alternative
Currencies in the actual amounts of such undrawn Letters of Credit and (ii) the obligation to
deposit such cash collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon the occurrence of any
Event of Default with respect to the Borrower described in paragraph (h) or (i) of Article VII.
Each deposit pursuant to this paragraph shall be held by the Administrative Agent
as collateral for the payment and performance of the obligations of the Borrower under this
Agreement. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing Banks for LC
Disbursements for which they have not been reimbursed (to be applied ratably among them according
to the respective aggregate amounts of the then unreimbursed LC Disbursements) and, to the extent
not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower
for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject
to the consent of Lenders with LC Exposure representing greater than 50% of the then total LC
Exposure), be applied to satisfy other obligations of the Borrower under this Agreement. If the
Borrower is required to provide an

 

29

amount of cash collateral hereunder as a result of the
occurrence of an Event of Default or, in accordance with Section 2.09(c), the total Revolving
Credit Exposure exceeding 105% of the total Commitments, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default
have been cured or waived or, as the case may be, the total Revolving Credit Exposure not exceeding
the total Commitments.

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

          (m)   Reporting. Unless the Administrative Agent otherwise agrees, each Issuing Bank
will report in writing to the Administrative Agent (i) on the first Business Day of each week and
on the second Business Day to occur after the last day of each March, June, September and December,
and on such other dates as the Administrative Agent may reasonably request, the daily activity
during the preceding week, calendar quarter or other period, as the case may be, with respect to
Letters of Credit issued by it, including the aggregate outstanding LC Exposure with respect to
such Letters of Credit on each day during such week, quarter or other period, in such form and
detail as shall be satisfactory to the Administrative Agent, (ii) on any Business Day on which the
Borrower fails to reimburse an LC Disbursement required to be reimbursed to such Issuing Bank on
such day, the date of such failure and the amount of such LC Disbursement and (iii) such other
information with respect to Letters of Credit issued by such Issuing Bank as the Administrative
Agent may reasonably request.

          SECTION 2.05.   Funding of Borrowings. (a) Each Lender shall make each Loan to be
made by it hereunder on the proposed date thereof by wire transfer of immediately available funds
by 12:00 noon, New York City time, to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The Administrative Agent will make
such Loans available to
the Borrower by promptly crediting the amounts so received, in like funds, to an account of
the Borrower maintained with the Administrative Agent in New York City and designated by the
Borrower in the applicable Borrowing Request; provided that ABR Loans made to finance the
reimbursement of an LC Disbursement as provided in Section 2.04(e) shall be remitted by the
Administrative Agent to the applicable Issuing Bank.

          (b)   Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrower a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender agrees to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the

 

30

Borrower to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation. If such Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Loan included in such Borrowing. If such Lender’s share of such Borrowing
is not made available to the Administrative Agent by such Lender within three Business Days after
the date such amount is made available to the Borrower, the Administrative Agent shall promptly
notify the Borrower of such failure and shall also be entitled to recover such amount from the
Borrower, on demand, with interest thereon at the rate per annum applicable to ABR Loans hereunder
accruing from the date of such Borrowing. If the Borrower shall pay to the Administrative Agent
such corresponding amount, the Borrower shall have no further obligations to such Lender with
respect to such amount.

          SECTION 2.06.   Interest Elections. (a) Each Borrowing initially shall be of the
Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing,
shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the
Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and,
in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this
Section. The Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.

          (b)   To make an election pursuant to this Section, the Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from
such election to be made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand delivery, email
(pursuant to procedures approved by the Administrative Agent) or telecopy
to the Administrative Agent of a written Interest Election Request in a form approved by the
Administrative Agent and signed by the Borrower.

          (c)   Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i)    the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

     (ii)    the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii)    whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

 

31

     (iv)    if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.

          (d)   Promptly following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender’s portion of each resulting
Borrowing.

          (e)   If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest
Period applicable thereto.

          SECTION 2.07.   Termination and Reduction of Commitments. (a) Unless previously
terminated, the Commitments shall terminate on the Maturity Date.

          (b)   The Borrower may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $100,000 and not less than $1,000,000, or, if less than $1,000,000, the
remaining amount of the total Commitments, and (ii) the Borrower shall not terminate or reduce
the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.09, the total Revolving Credit Exposures would exceed the total Commitments.

          (c)   The Borrower shall notify the Administrative Agent of any election to terminate or
reduce the Commitments under paragraph (b) of this Section at least two (2) Business Days prior to
the effective date of such termination or reduction, specifying such election and the effective
date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by
the Borrower may state that such notice is conditioned upon another event, such as the
effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower
(by notice to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Commitments shall be permanent.
Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their
respective Commitments.

 

32

          SECTION 2.08.   Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Revolving Loan on the Maturity Date.

          (b)   Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (c)   The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Type thereof and the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and payable from the Borrower
to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

          (d)   The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrower to repay the Loans in accordance with the terms of this Agreement.

          (e)   Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 9.04) be represented by one or more promissory notes in such
form payable to the order of the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns).

          SECTION 2.09.   Prepayment of Loans. (a) The Borrower shall have the right at any
time and from time to time to prepay voluntarily any Borrowing in whole or in part without premium
or penalty, subject to prior notice in accordance with paragraph (b) of this Section.

          (b)   The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy)
of any voluntary prepayment hereunder prior to (i) in the case of ABR Loans, 11:00 a.m., New York
City time, on such date of prepayment or (ii) in the case of Eurodollar Loans, 12:00 noon, New York
City time, on the Business Day immediately preceding such date of prepayment. Each such notice
shall be irrevocable and shall specify the prepayment date, the principal amount of each Borrowing
or portion thereof to be prepaid and whether the prepayment is of Eurodollar Loans, ABR Loans or a
combination thereof, and, if of a combination thereof, the amount allocable to each;
provided that, if a notice of voluntary prepayment is given in connection with a
conditional notice of termination of the Commitments as contemplated by Section 2.07, then such
notice of prepayment may be revoked if such notice of termination is revoked in accordance with
Section 2.07. Promptly following receipt of any such notice the Administrative Agent shall advise
the Lenders of the contents thereof. Each

 

33

partial voluntary prepayment of any Borrowing shall be
in an aggregate principal amount of $500,000 or a multiple of $100,000 in excess thereof. Each
voluntary prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing.

          (c)   If on any date the total Revolving Credit Exposure exceeds 105% of the total
Commitments, the Borrower shall, without notice or demand, within three Business Days after such
date, prepay Loans in an aggregate amount sufficient to reduce the total Revolving Credit Exposure
to less than the total Commitments, provided that if, after giving effect to such
prepayment, the total Revolving Credit Exposure would still exceed the total Commitments, the
Borrower shall, without notice or demand, deposit cash collateral in an account with the
Administrative Agent established and maintained in accordance with Section 2.04(k) in an aggregate
amount such that, after deducting therefrom the amount so deposited in such account, the total
Revolving Credit Exposure does not exceed the total Commitments.

          (d)   Prepayments shall be accompanied by accrued interest to the extent required by Section
2.11 and any amounts payable pursuant to Section 2.14.

          SECTION 2.10.   Fees. (a) The Borrower agrees to pay to the Administrative Agent for
the account of each Lender a commitment fee for the period from and including the Effective Date to
the last day of the Availability Period, computed at the Applicable Rate on the average daily
amount of the Available Commitment of such Lender during the period for which payment is made.
Commitment fees accrued through and including the last day of March, June, September and December
of each year shall be payable on the fifth Business Day following such last day, commencing on the
first such date to occur after the date hereof; provided that all such fees shall
be payable on the date on which the Commitments terminate and any such fees accruing after the
date on which the Commitments terminate shall be payable on demand. All commitment fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

          (b)   The Borrower agrees to pay to each Issuing Bank the fees agreed upon by the Borrower
with such Issuing Bank with respect to the issuance, amendment, renewal or extension of any Letter
of Credit or processing of drawings thereunder. For the avoidance of doubt, in any case where, in
accordance with the second sentence of the definition of Issuing Bank, an Issuing Bank arranges for
one or more Letters of Credit to be issued by an Affiliate of such Issuing Bank, the fees agreed
upon by such Issuing Bank with the Borrower shall be deemed to have been agreed upon by such
Affiliate unless the Borrower and such Affiliate otherwise agree.

          (c)   The Borrower agrees to pay to the Administrative Agent, for the account of each Lender,
a utilization fee accruing for each day on which the aggregate amount of the Revolving Credit
Exposure of all Lenders exceeds 50% of the aggregate amount of the Commitments then in effect at a
rate per annum equal to 0.10% on the amount of the Revolving Credit Exposure of such Lender
outstanding on such day. Utilization fees accrued through and including the last day of March,
June, September and December of each year shall be payable on the fifth Business Day following such
last day, commencing on the first such date to occur after the date hereof, and on the Maturity
Date; provided that if there shall exist any Revolving Credit Exposure at any time after
the Commitments are terminated or expire, the Commitments, for purposes of calculations pursuant to
this Section, shall be deemed to remain outstanding in the

 

34

amounts in effect immediately prior to
such termination or expiration and any utilization fees accruing after such termination or
expiration shall be payable on demand. All utilization fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed (including the first
day but excluding the last day).

          (d)   The Borrower agrees to pay to the Administrative Agent, for its own account, fees
payable in the amounts and at the times separately agreed upon between the Borrower and the
Administrative Agent.

          (e)   All fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent (or to each Issuing Bank, in the case of fees payable to it) for
distribution, in the case of commitment fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances (other than in the case, and to the extent, of any
overpayment thereof by the Borrower).

          SECTION 2.11.   Interest. (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate.

          (b)   The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

          (c)   Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

          (d)   Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of all of the Commitments; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of
any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of
the Availability Period), accrued interest on the principal amount repaid or prepaid shall be
payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such
Loan shall be payable on the effective date of such conversion.

          (e)   All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Administrative Agent, and such determination shall be conclusive
absent manifest error.

 

35

     SECTION 2.12.   Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

     (a)   the Administrative Agent reasonably determines (which determination shall be
conclusive absent manifest error) that by reason of circumstances affecting the relevant
market adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or
the LIBO Rate, as applicable, for such Interest Period; or

     (b)   the Administrative Agent is advised by the Required Lenders that the Adjusted
LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or
its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing; provided that if the circumstances giving rise to such notice affect only one
Type of Borrowings, then the other Type of Borrowings shall be permitted.

          SECTION 2.13.   Increased Costs. (a) If any Change in Law shall:

     (i)    impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any
Issuing Bank; or

     (ii)    impose on any Lender or any Issuing Bank or the London interbank market any
other condition affecting this Agreement or Eurodollar Loans made by such Lender or any
Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make such Loan) or to increase
the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter
of Credit or to reduce the amount of any sum received or receivable by such Lender or such Issuing
Bank hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such
Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or such Issuing Bank, as the case may be, for such additional costs incurred
or reduction suffered.

          (b)   If any Lender or any Issuing Bank reasonably determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return on such Lender’s
or such Issuing Bank’s capital as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such
Issuing Bank, to a level below that which such Lender could have achieved but

 

36

for such Change in
Law (taking into consideration such Lender’s or such Issuing Bank’s policies with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender or such Issuing
Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such
Issuing Bank for any such reduction suffered.

          (c)   A certificate of a Lender or an Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or such Issuing Bank, as the case may be, as specified in
paragraph (a) or (b) of this Section, containing a reasonably detailed explanation of the basis on
which such amount or amounts were calculated and explaining the Change in Law by reason of which it
has become entitled to be so compensated, shall be delivered to the Borrower and shall be
conclusive absent manifest error. No Lender or Issuing Bank shall be entitled to the benefits of
this Section 2.13 unless such Lender or Issuing Bank shall have complied with the requirements of
this Section 2.13. The Borrower shall pay such Lender or such Issuing Bank, as the case may be,
the amount shown as due on any such certificate within 10 days after receipt thereof.

          (d)   Failure or delay on the part of any Lender or any Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or such
Issuing Bank’s right to demand such compensation; provided that the Borrower shall not
be required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased
costs or reductions incurred more than 90 days prior to the date that such Lender or such Issuing
Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation
therefor; provided further that, if the Change in Law giving rise to such increased
costs or reductions is retroactive, then the 90-day period referred to above shall be extended to
include the period of retroactive effect thereof. Notwithstanding any other provision of this
Section 2.13, no Lender shall demand compensation for any increased costs or reduction referred to
above in this Section if it shall not then be the general policy of such Lender to demand such
compensation in similar circumstances from comparable borrowers under comparable provisions of
other credit agreements, if any (it being understood, for the avoidance of doubt, that a waiver by
any Lender in any given case of its right to demand such compensation from any given borrower shall
not, in and of itself, be deemed to constitute a change in the general policy of such Lender).

          (e)   Notwithstanding any other provision to the contrary, this Section 2.13 shall have no
application with respect to any Indemnified Taxes, Other Taxes or any Excluded Taxes, which
matters, for the avoidance of doubt, shall be dealt with exclusively under Section 2.15.

          SECTION 2.14.   Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section 2.09(b) and is
revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by the Borrower
pursuant to Section 2.17, then, in any such event, the Borrower shall compensate each Lender for
the loss

 

37

and reasonable cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an amount reasonably
determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate
that would have been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for such Loan), over
(ii) the amount of interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement of such period, for
dollar deposits of a comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender is entitled to
receive pursuant to this Section, containing a reasonably detailed calculation of such amounts,
shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower
shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt
thereof. No Lender or Issuing Bank shall be entitled to the benefits of this Section 2.14 unless
such Lender or Issuing Bank shall have complied with the requirements of this Section 2.14.

          SECTION 2.15.   Taxes. (a) Any and all payments by or on account of any obligation
of the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or the relevant
Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower
shall pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

          (b)   In addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c)   The Borrower shall indemnify the Administrative Agent, each Lender and any Issuing Bank,
as promptly as possible but in any event within 30 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or
such Issuing Bank, as the case may be, on or with respect to any payment by or on account of any
obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability, together with, to the
extent available, a certified copy of a receipt issued by such Governmental Authority evidencing
such payment or other evidence of such payment reasonably satisfactory to the Borrower, delivered
to the Borrower as soon as practicable after any such payment by a Lender or any Issuing Bank, or
by the Administrative Agent on its own behalf or on behalf of a Lender or any Issuing Bank, shall
be conclusive absent manifest error.

 

38

          (d)   As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e)   Each Foreign Lender (including each Issuing Bank that is a Foreign Lender) shall deliver
to the Borrower (with a copy to the Administrative Agent), at the time it becomes a Lender (or, in
the case of any Participant, on or before the date such Participant purchases the related
Participation) and at all 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. Each Foreign Lender (including each Issuing Bank that
is a Foreign Lender) shall promptly notify the Borrower at any time it determines that it is no
longer in a position to provide any documentation required to be delivered to the Borrower pursuant
to this paragraph. No Person shall be entitled to become a Lender or Participant unless it shall
have complied with the requirements of the first sentence of this paragraph (if such requirements
are applicable to it).

          (f)   If the Administrative Agent, a Lender or an Issuing Bank determines that it has received
a refund which, in the good faith judgment of the Administrative Agent, such Lender or such Issuing
Bank, as the case may be, is allocable to any Indemnified Taxes or Other Taxes as to which it has
been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.15, it shall promptly pay over such refund to the Borrower (but only to
the extent of indemnity payments made, or additional amounts paid, by the Borrower under this
Section 2.15 with respect to the Taxes or Other Taxes giving rise to such refund), net of all
reasonable out-of-pocket expenses of the Administrative Agent or such Lender and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund);
provided, that the Borrower, upon the request of the Administrative Agent or such Lender,
agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the
event the Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section shall not be construed to require the Administrative Agent or any Lender to
make available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

          SECTION 2.16.   Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The
Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.13, 2.14
or 2.15, or otherwise) prior to 12:00 noon, New York City time, on the date when due, in
immediately available funds, without set-off or counterclaim. Any amounts received after such time
on any date may, in the discretion of the Administrative Agent or an Issuing Bank, as applicable,
be deemed to have been received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative Agent at its offices at
270 Park Avenue, New York, New York, except payments to be made directly to an Issuing Bank as
expressly provided herein and except that payments pursuant to Sections 2.13, 2.14, 2.15 and 9.03
shall be made directly to the Persons entitled

 

39

thereto. The Administrative Agent shall distribute
any such payments received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars except as provided in Section 2.04(k).

          (b)   If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest, fees,
expenses and other amounts then due hereunder, such funds shall be applied (i) first, towards
payment of interest, fees, expenses and other amounts then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest, fees, expenses and other amounts then
due to such parties, and (ii) second, towards payment of principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and unreimbursed LC Disbursements then due to such parties.

          (c)   If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in LC Disbursements
and accrued interest thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements of other Lenders to the extent necessary so
that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Revolving Loans and
participations in LC Disbursements; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of the Borrower in the amount of such participation.

          (d)   Unless the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the account of the Lenders or
an Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent
may assume that the Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or such Issuing Bank, as the case may be,
the amount due. In such event, if the Borrower has not in fact made such payment, then each of the
Lenders or such Issuing Bank, as

 

40

the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender or such Issuing Bank with
interest thereon, for each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

     (e)   If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.04(d) or (e), 2.05(b) or 2.16(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such
Sections until all such unsatisfied obligations are fully paid.

          SECTION 2.17.   Mitigation Obligations; Replacement of Lenders. (a) If any Lender
(including any Issuing Bank) requests compensation under Section 2.13, or if the Borrower is
required to pay any additional amount to any Lender
(including any Issuing Bank) or any Governmental Authority for the account of any Lender
(including any Issuing Bank) pursuant to Section 2.15, then such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates, if,
in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.13 or 2.15, as the case may be, in the future and (ii) would
not subject such Lender to any material unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender.

          (b)   If (i) any Lender (including any Issuing Bank) requests compensation under Section 2.13,
(ii) the Borrower is required to pay any additional amount to any Lender (including any Issuing
Bank) or any Governmental Authority for the account of any Lender (including any Issuing Bank)
pursuant to Section 2.15 or (iii) if any Lender (including any Issuing Bank) defaults in its
obligation to fund Loans hereunder, then the Borrower may, at its sole expense (in the case of
clauses (i) and (ii) of this Section 2.17(b) only), upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in Section 9.04, provided that the Borrower shall be
required to pay the processing and recordation fee referred to in Section 9.04(b)(ii)(C)), all its
interests, rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans and participations in
LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) (and, if such Lender is an Issuing Bank,
all Letters of Credit issued by it shall have been cancelled or other arrangements reasonably
satisfactory to such Issuing Bank shall have been made with respect to such Letters of Credit) and
(iii) in the case of any such assignment resulting from a claim for compensation under Section 2.13
or payments required to be made pursuant to Section 2.15, such assignment will result in a
reduction in such compensation or payments. A Lender

 

41

(including any Issuing Bank) shall not be
required to make any such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and
delegation cease to apply. No such assignment shall be deemed to be a waiver of any rights which
the Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender.

          SECTION 2.18.   Change in Law. If (a) any Change in Law shall make it unlawful for
any Issuing Bank to issue Letters of Credit denominated in an Alternative Currency or (b) there
shall have occurred any change in national or international financial, political or economic
conditions (including the imposition of or any change in exchange controls) or currency exchange
rates that would make it impracticable for such Issuing Bank to issue Letters of Credit denominated
in such Alternative Currency, then by prompt written notice thereof to the Borrower and to the
Administrative Agent (which notice shall be withdrawn whenever such circumstances no longer exist),
such Issuing Bank may declare that Letters of Credit will not thereafter be issued by it in the
affected
Alternative Currency or Alternative Currencies, whereupon the affected Alternative Currency or
Alternative Currencies shall be deemed (for the duration of such declaration) not to constitute an
Alternative Currency for purposes of the issuance of Letters of Credit by such Issuing Bank.

ARTICLE III

Representations and Warranties

          The Borrower represents and warrants to the Lenders that:

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

          SECTION 3.02.   Authorization; Enforceability. The Transactions are within each Loan
Party’s corporate powers and have been duly authorized by all necessary corporate and, if required,
stockholder action. Each Loan Document has been duly executed and delivered by each Loan Party
which is a party thereto and constitutes a legal, valid and binding obligation of such Loan Party,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, liquidation, reconstruction, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

          SECTION 3.03.   Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any indenture or any

 

42

material agreement or other material instrument binding upon the Borrower or any of its
Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by
the Borrower or any of its Subsidiaries, and (d) will not result in the creation or imposition of
any Lien on any asset of the Borrower or any of its Subsidiaries.

          SECTION 3.04.   Financial Condition; No Material Adverse Change. (a) The Borrower
has heretofore furnished to the Lenders its consolidated balance sheet and statements of income,
stockholders equity and cash flows (i) as of and for the fiscal year ended April 1, 2006, reported
on by Deloitte & Touche LLP, independent public accountants, and (ii) as of and for the fiscal
quarter and the portion of the fiscal year ended July 1, 2006, certified by its chief financial
officer. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the
Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with
GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the
statements referred to in clause (ii) above.

          (b)   Since April 1, 2006, there has been no material adverse change in the business,
operations, property or condition (financial or otherwise) of the Borrower and its Subsidiaries,
taken as a whole.

          SECTION 3.05.   Properties. (a) Each of the Borrower and its Subsidiaries has good
title to, or valid leasehold interests in, all its real and personal property material to the
operation of its business, except for minor defects in title that do not interfere with its ability
to conduct its business as currently conducted or to utilize such properties for their intended
purposes or such other defects as, in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

          (b)   Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business as
currently conducted, and the use thereof by the Borrower and its Subsidiaries does not infringe
upon the rights of any other Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.06.   Litigation and Environmental Matters. (a) There are no actions,
suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to
the knowledge of the Borrower, threatened against or affecting the Borrower or any of its
Subsidiaries (i) which could reasonably be expected, individually or in the aggregate, to result in
a Material Adverse Effect (except for litigation disclosed prior to November 28, 2006 in reports
publicly filed by the Borrower under the Securities Exchange Act of 1934, as amended) or (ii) that
involve this Agreement or the Transactions.

          (b)   Except with respect to any matters that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its
Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any

 

43

claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.

          SECTION 3.07.   Compliance with Laws and Agreements. Each of the Borrower and its
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect. No Default has occurred and is continuing.

          SECTION 3.08.   Investment Company Status. Neither the Borrower nor any of its
Subsidiaries is required to be registered as an “investment company” as defined in the Investment
Company Act of 1940.

          SECTION 3.09.   Taxes. Each of the Borrower and its Subsidiaries has timely filed or
caused to be filed all Tax returns and reports required to have been filed and has paid or caused
to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in
good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable,
has set aside on its books adequate reserves or (b) to the extent that the failure to do so could
not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.10.   ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed by more than $10,000,000 the fair
market value of the assets of such Plan, and the present value of all accumulated benefit
obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $10,000,000 the fair market value of the
assets of all such underfunded Plans.

          SECTION 3.11.   Disclosure. All of the reports, financial statements and certificates
furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection
with the negotiation of this Agreement or hereafter delivered hereunder or reports filed pursuant
to the Securities Exchange Act of 1934 (as modified or supplemented by other information so
furnished prior to the date on which this representation and warranty is made or deemed made) do
not contain any material misstatement of fact or omit to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information, the Borrower
represents only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.

          SECTION 3.12.   Subsidiary Guarantors. Set forth on Schedule 3.12 is a list of each Subsidiary which, in accordance with Section
4.01(b), is required to be a Guarantor under the Guarantee Agreement on the Effective Date.

 

44

ARTICLE IV

Conditions

          SECTION 4.01.   Effective Date. The obligations of the Lenders to make Loans and of
the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

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

     (b)   The Administrative Agent shall have received the Guarantee Agreement executed and
delivered by (i) each Domestic Subsidiary which is a guarantor under the Existing Credit
Agreement, and (ii) each Domestic Subsidiary, if any, which, as of the Effective Date, is a
Significant Subsidiary (as defined in Regulation S-X part 210.1-02 of the Code of Federal
Regulations) and which is not a guarantor under the Existing Credit Agreement.

     (c)   The Administrative Agent shall have received evidence, in form and substance
reasonably satisfactory to it that all obligations of the Borrower under the Existing Credit
Agreement (other than the indemnity and other obligations (including obligations in relation
to the letters of credit identified on Schedule 2.04) that expressly survive the termination
thereof) shall have been paid in full, and all commitments of the Lenders to extend credit
thereunder shall have been terminated.

     (d)   The Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Effective Date) of (i)
Friedman Kaplan Seiler & Adelman LLP, counsel for the Loan Parties, substantially in the
form of Exhibit B-1 and (ii) the Corporate Counsel of the Borrower, substantially in the
form of Exhibit B-2. The Borrower hereby requests Friedman Kaplan Seiler & Adelman LLP to
deliver the opinion provided for in clause (i), above.

     (e)   The Administrative Agent shall have received such documents and certificates as
the Administrative Agent or its counsel may reasonably request relating to the organization,
existence and good standing of the Loan Parties, the authorization of the Transactions by
the Loan Parties and any other legal matters relating to the Loan Parties, this Agreement or
the Transactions, all in form and substance reasonably satisfactory to the Administrative
Agent and its counsel.

     (f)   The Administrative Agent shall have received a certificate, dated the Effective
Date and signed by the President, a Vice President or a Financial Officer of the Borrower,
confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section
4.02.

 

45

     (g)   The Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement
or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived pursuant to
Section 9.02) at or prior to 3:00 p.m., New York City time, on November 28, 2006 (and, in the event
such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

          SECTION 4.02.   Each Credit Event. The obligation of each Lender to make a Loan on
the occasion of any Borrowing, but excluding a conversion of all or a portion of a Borrowing from
one Type to the other or a continuation of all or a portion of a Borrowing of the same Type
pursuant to Section 2.06 and of each Issuing Bank to issue, increase, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

     (a)   The representations and warranties made by any Loan Party in or pursuant to the
Loan Documents shall be true and correct in all material respects on and as of the date of
such Borrowing or the date of issuance, increase, renewal or extension of such Letter of
Credit, as applicable (other than such representations as are made as of a specific earlier
date, in which case such representations and warranties shall be true and correct in all
material respects as of such earlier date).

     (b)   At the time of and immediately after giving effect to such Borrowing or the
issuance, increase, renewal or extension of such Letter of Credit, as applicable, no Default
shall have occurred and be continuing.

Each Borrowing and each issuance, increase, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (a) and (b) of this Section.

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters
of Credit shall have expired or terminated and all LC Disbursements shall have been
reimbursed, the Borrower covenants and agrees with the Lenders that:

          SECTION 5.01.   Financial Statements; Ratings Change and Other Information. The
Borrower will furnish to each Lender through the Administrative Agent:

 

46

     (a)   within 90 days after the end of each Fiscal Year of the Borrower, its audited
consolidated balance sheet and related statements of operations, stockholders’ equity and
cash flows as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by Deloitte & Touche or other
independent public accountants of recognized national standing (without a “going concern” or
like qualification or exception and without any qualification or exception as to the scope
of such audit) to the effect that such consolidated financial statements present fairly in
all material respects the financial condition and results of operations of the Borrower and
its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied; provided, however, that, so long as the Borrower is required to
file reports under Section 13 of the Securities and Exchange Act of 1934, the requirements
of this paragraph shall be deemed satisfied by the delivery of, the Annual Report of the
Borrower on Form 10-K for such Fiscal Year, signed by the duly authorized officer or
officers of the Borrower;

     (b)   within 60 days after the end of each of the first three Fiscal Quarters of each
fiscal year of the Borrower, its consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter
and the then elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by one of its Financial
Officers as presenting fairly in all material respects the financial condition and results
of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit adjustments and
the absence of footnotes; provided, however, that, so long as the Borrower
is required to file reports under Section 13 of the Securities and Exchange Act of 1934, the
requirements of this paragraph shall be deemed satisfied by the delivery of the Quarterly
Report of the Borrower on Form 10-Q for the relevant Fiscal Quarter, signed by the duly
authorized officer or officers of the Borrower.

     (c)   concurrently with any delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer of the Borrower (i) stating that he or she has
obtained no knowledge that a Default has occurred (except as set forth in such certificate),
(ii) if a Default has occurred, specifying the details thereof and any action taken or
proposed to be taken with respect thereto, (iii) setting forth reasonably detailed
calculations demonstrating compliance with Sections 6.03 and 6.07; and (iv) stating whether
any change in GAAP or in the application thereof has occurred since the date of the audited
financial statements referred to in Section 3.04 which has had an effect on such financial
statements and, if any such change has occurred, specifying the effect of such change on the
financial statements accompanying such certificate;

     (d)   concurrently with any delivery of financial statements under clause (a) above, a
certificate of the accounting firm that reported on such financial statements stating
whether they obtained knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the extent required by
accounting rules or guidelines);

 

47

     (e)   promptly after the same become publicly available, copies of all other periodic
and other reports, proxy statements and other materials filed by the Borrower or any
Subsidiary with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any national
securities exchange, or distributed by the Borrower to its shareholders generally, as the
case may be;

     (f)   promptly after the Borrower shall have received notice that Moody’s or S&P has
announced a change in the rating established or deemed to have been established for the
Index Debt, written notice of such rating change; and

     (g)   promptly following any request therefor, such other information regarding the
business affairs or financial position of the Borrower or any Subsidiary, or compliance with
the terms of this Agreement, as the Administrative Agent on behalf of any Lender may
reasonably request.

          SECTION 5.02.   Notices of Material Events. The Borrower will furnish to the Lenders
through the Administrative Agent prompt written notice of the following promptly after the Borrower
shall have obtained knowledge thereof:

     (a)   the occurrence of any Default;

     (b)   the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate
thereof that, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

     (c)   the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrower and its Subsidiaries in an aggregate amount exceeding $10,000,000; and

     (d)   any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

          SECTION 5.03.   Existence; Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal existence and the
rights, licenses, permits, privileges and franchises material to the conduct of its business
except, in each case (other than the case of the foregoing requirements insofar as they relate to
the legal existence of the Borrower and the Guarantors), to the extent that failure to do so could
not reasonably be expected to result in a Material Adverse Effect; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 6.04.

 

 

 48

          SECTION 5.04.   Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could
reasonably be expected to result in a Material Adverse Effect before the same shall become
delinquent or in default, except where (a) the validity or amount thereof is being contested in
good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its
books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a Material Adverse
Effect.

          SECTION 5.05.   Maintenance of Properties; Insurance. Except where the failure to do
so could not reasonably be expected to result in a Material Adverse Effect, the Borrower will, and
will cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct
of its business in good working order and condition, ordinary wear and tear excepted and except for
surplus and obsolete properties, and (b) maintain, with financially sound and reputable insurance
companies, insurance on such of its property and in such amounts and against such risks as are
customarily maintained by companies engaged in the same or similar businesses operating in the same
or similar locations.

          SECTION 5.06.   Books and Records; Inspection Rights. The Borrower will, and will
cause each of its Subsidiaries to, keep proper books of record and account in which entries in
conformity in all material respects with all applicable laws, rules and regulations of any
Governmental Authority are made of all dealings and transactions in relation to its business and
activities. The Borrower will, and will cause each of its Subsidiaries to, on an annual basis at
the request of the Administrative Agent (or at any time after the occurrence and during the
continuance of a Default), permit any representatives designated by the Administrative Agent or any
Lender (at such Lender’s expense), upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records (other than materials protected
by the attorney-client privilege and materials which the Borrower or such Subsidiary, as
applicable, may not disclose without violation of a confidentiality obligation binding upon it),
and to discuss its affairs, finances and condition with its officers and independent accountants,
so long as afforded opportunity to be present, all during reasonable business hours. It is
understood that so long as no Event of Default has occurred and is continuing, such visits and
inspections shall be coordinated through the Administrative Agent.

          SECTION 5.07.   Compliance with Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.

          SECTION 5.08.   Use of Proceeds and Letters of Credit. The proceeds of the Loans will
be used only to finance the working capital needs, capital expenditures, Permitted Acquisitions,
Investments permitted under Section 6.05 and general corporate purposes of the Borrower and its
Subsidiaries (including the refinancing of the Existing Credit Agreement). No part of the proceeds
of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the Board, including Regulations T, U and X. The Commercial Letters
of Credit shall be used solely to finance purchases of inventory by the

 

49

Borrower and its
Subsidiaries in the ordinary course of their business, and the Standby Letters of Credit shall be
used solely for the purposes described in the definition of such term in Section 1.01.

          SECTION 5.09.   Guarantee Agreement Supplement. Each Domestic Subsidiary that becomes
a “Significant Subsidiary” (as defined in Regulation S-X, part 210.1-02 of the Code of Federal
Regulations) subsequent to the Effective Date shall promptly (and in any event within 60 days of
becoming such a “Significant Subsidiary”) execute and deliver to the Administrative Agent (with a
counterpart for each Lender) a supplement to the Guarantee Agreement pursuant to which such
Subsidiary shall become a party thereto as a Guarantor, together with such other documents and
legal opinions with respect thereto as the Administrative Agent shall reasonably request (which
documents and opinions shall be in form and substance reasonably satisfactory to the Administrative
Agent).

ARTICLE VI

Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and
agrees with the Lenders that:

          SECTION 6.01.   Indebtedness. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:

     (a)   Indebtedness created hereunder;

     (b)   Indebtedness existing on the date hereof and set forth in Schedule 6.01 and
extensions, renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof or shorten the final maturity or weighted average
life to maturity thereof;

     (c)   Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the
Borrower or any other Subsidiary;

     (d)   Guarantees by the Borrower of Indebtedness of any Subsidiary and by any
Subsidiary of Indebtedness of the Borrower or any other Subsidiary;

     (e)   Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any real property, fixed or capital assets,
including Capital Lease Obligations, and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof; provided
that such Indebtedness is incurred no more than 90 days prior to or within 90 days after
such acquisition or the completion of such construction or improvement;

 

50

     (f)   Indebtedness acquired or assumed in Permitted Acquisitions and extensions,
renewals and replacements of any such indebtedness that do not increase the outstanding
principal amount thereof or shorten the final maturity or weighted average life to maturity
thereof or have different obligors;

     (g)   Priority Indebtedness (excluding any Indebtedness permitted by Sections 6.01(e)
and (f) in an aggregate principal amount at any one time outstanding not to exceed 10% of
the Borrower’s then Consolidated Net Worth;

     (h)   unsecured Indebtedness (excluding any Indebtedness permitted by Section 6.01(f),
not otherwise permitted by this Section, of the Borrower or any Subsidiary which is a
Guarantor so long as (i) on a pro forma basis after giving effect to the incurrence of such
Indebtedness, the ratio of (x) Adjusted Debt then outstanding to (y) Consolidated EBITDAR
for the then most recently ended period of four consecutive Fiscal Quarters for which
financial statements shall have been delivered to the Lenders pursuant to Section 5.01 is
not greater than 3.75 to 1.00; and

     (i)   Indebtedness under Swap Agreements entered into in order to manage existing or
anticipated interest rate or exchange rate risks and not for speculative purposes.

          For purposes of this subsection 6.01, any Person becoming a Subsidiary of the Borrower after
the date of this Agreement shall be deemed to have incurred all of its then outstanding
Indebtedness at the time it becomes a Subsidiary, and any Indebtedness assumed by the Borrower or
any of its Subsidiaries shall be deemed to have been incurred on the date of assumption.

          SECTION 6.02.   Liens. The Borrower will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter
acquired by
it, or assign or sell any income or revenues (including accounts receivable) or rights in
respect of any thereof, except:

     (a)   Permitted Encumbrances;

     (b)   Liens existing on the date hereof and set forth on Schedule 6.02;

     (c)   any Lien on any property or asset of the Borrower or any Subsidiary securing
Indebtedness permitted by Section 6.01(e) incurred to acquire, construct or improve such
property or asset;

     (d)   Liens solely constituting the right of any other Person to a share of any
licensing royalties (pursuant to a licensing agreement or other related agreement entered
into by the Borrower or any of its Subsidiaries with such Person in the ordinary course of
the Borrower’s or such Subsidiary’s business) otherwise payable to the Borrower or any of
its Subsidiaries, provided that such right shall have been conveyed to such Person
for consideration received by the Borrower or such Subsidiary on an arm’s-length basis;

 

51

     (e)   Liens arising from precautionary Uniform Commercial Code financing statement
filings with respect to operating leases entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business;

     (f)   Liens securing Indebtedness described in clause (a) of the definition of Priority
Indebtedness;

     (g)   Liens securing Indebtedness permitted under Section 6.01(c);

     (h)   Bankers’ liens and rights of setoff with respect to customary depository
arrangements entered into in the ordinary course of business;

     (i)   Liens attaching solely to cash earnest money or similar deposits in connection
with any letter of intent or purchase agreement in connection with a Permitted Acquisition;
and

     (j)   Liens arising from precautionary UCC financing statements regarding operating
leases or consignments, provided that such Liens extend solely to the assets subject to such
leases or consignments.

          SECTION 6.03.   Sale of Assets. The Borrower will not, nor will it permit any of its
Subsidiaries to, sell, lease, transfer or otherwise dispose of (in one transaction or a series of
transactions) all or substantially all of the assets of the Borrower and its Subsidiaries taken as
a whole.

          SECTION 6.04.   Fundamental Changes. (a)  The Borrower will not, and will not permit
any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to
merge into or consolidate with
it, or liquidate or dissolve, except that, if at the time thereof and immediately
after giving effect thereto no Default shall have occurred and be continuing, (i) any Subsidiary
may merge into the Borrower in a transaction in which the Borrower is the surviving corporation,
(ii) any Subsidiary (including a Guarantor) may merge into any other Subsidiary in a transaction in
which the surviving entity is a Subsidiary, and (iii) any Subsidiary may liquidate or dissolve if
the Borrower determines in good faith that such liquidation or dissolution is in the best interests
of the Borrower and is not materially disadvantageous to the Lenders and except that the
Borrower or any Subsidiary may effect any acquisition permitted by Section 6.05 by means of a
merger of the Person that is the subject of such acquisition with the Borrower or any of its
Subsidiaries (provided that, in the case of a merger with the Borrower, the Borrower is the
survivor); and

          (b)   The Borrower will not, and will not permit any of its Subsidiaries to, engage to any
material extent in any business other than a Related Line of Business; provided, that the
Borrower and any Subsidiary may engage in any business or businesses which are not Related Lines of
Business, so long as the Investments made by the Borrower and/or the Subsidiaries in such
businesses do not exceed $500,000,000 in the aggregate, which amount shall be included in the
aggregate amount for Investments permitted under Section 6.05(j).

          SECTION 6.05.   Investments, Loans, Advances, Guarantees and Acquisitions. The
Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire

 

52

(including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to
such merger) any capital stock, evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or
any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a
series of transactions) any assets of any other Person constituting a business unit or the rights
of any licensee under a trademark license to such licensee from the Borrower or any of its
Affiliates, except:

          (a)   Permitted Investments;

          (b)   investments by the Borrower in the capital stock of its Subsidiaries;

          (c)   loans or advances made by the Borrower to, and Guarantees by the Borrower of obligations
of, any Subsidiary, and loans or advances made by any Subsidiary to, and Guarantees by any
Subsidiary of obligations of, the Borrower or any other Subsidiary;

          (d)   Guarantees constituting Indebtedness permitted by Section 6.01;

          (e)   advances or loans made in the ordinary course of business to employees of the Borrower
and its Subsidiaries;

          (f)   existing Investments not otherwise permitted under this Agreement and described in
Schedule 6.05 hereto;

          (g)   Investments received in connection with the bona fide settlement of any defaulted
Indebtedness or other liability owed to the Borrower or any Subsidiary;

          (h)   Permitted Acquisitions; provided that if, as a result of a Permitted
Acquisition, (i) a new Domestic Subsidiary shall be created and such Domestic Subsidiary is a
Significant Subsidiary (as defined in Regulation S-X part 210.1-02 of the Code of Federal
Regulations) or (ii) any then existing Domestic Subsidiary shall become such a Significant
Subsidiary, such Domestic Subsidiary shall promptly thereafter become party to the Guarantee
Agreement as a Guarantor;

          (i)   Swap Agreements entered into in order to manage existing or anticipated interest rate or
exchange rate risks and not for speculative purposes; and

          (j) Investments, in addition to Investments permitted under clauses (a) through (h) of this
Section 6.05, but including Investments permitted under Section 6.04(b), made after the date hereof
in an aggregate amount not to exceed $500,000,000 in any Person or Persons.

          SECTION 6.06.   Transactions with Affiliates. The Borrower will not, and will not
permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, (a) any of its Affiliates, (b) a spouse or any relative (by blood, adoption or
marriage) within the third degree of any such Affiliate or (c) any other Person which is an
Affiliate of any such spouse or relative, except (x) in the ordinary course of business at prices

 

53

and on terms and conditions, in the aggregate (taking into account all of the Borrower’s or such
Subsidiary’s transactions with, and the benefits to the Borrower and its Subsidiaries derived from
the Borrower’s or such Subsidiary’s Investment in, such Affiliate), not less favorable to the
Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties, excluding customary compensation paid to, and indemnity provided on behalf of, directors,
officers and employees of the Borrower and any Subsidiary and (y) transactions between or among the
Borrower and its Subsidiaries not involving any other Affiliate.

     SECTION 6.07.   Consolidated Leverage Ratio. The Borrower will not permit the
Consolidated Leverage Ratio as at the last day of any period of four consecutive Fiscal Quarters
ending after the Effective Date to be greater than 3.75 to 1.00.

ARTICLE VII

Events of Default

          If any of the following events (“Events of Default”) shall occur:

     (a)   the Borrower shall fail to pay (i) any principal of any Loan when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise, or (ii) any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable and such failure to
pay such reimbursement obligation shall continue unremedied for a period of two
Business Days;

     (b)   the Borrower shall fail to pay any interest on any Loan or unreimbursed LC
Disbursement or any fee or any other amount (other than an amount referred to in clause (a)
of this Article) payable under this Agreement, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of five days;

     (c)   any representation or warranty made or deemed made by or on behalf of the
Borrower or any Subsidiary in or in connection with this Agreement or the Guarantee
Agreement or any amendment or modification hereof or thereof or waiver hereunder or
thereunder, or in any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or the Guarantee Agreement or any amendment
or modification hereof or thereof or waiver hereunder or thereunder, shall prove to have
been incorrect in any material respect when made or deemed made;

     (d)   the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in Section 5.03 (with respect to the Borrower’s existence) or 5.08 or in
Article VI;

     (e)   the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement (other than those specified in clause (a), (b) or (d)
of this Article), and such failure shall continue unremedied for a period of 30 days after
notice thereof from the Administrative Agent to the Borrower (which notice will be given at
the request of any Lender);

 

54

     (f)   the Borrower or any Subsidiary shall fail to make any payment of principal or
interest, regardless of amount, in respect of any Material Indebtedness, when and as the
same shall become due and payable beyond the period (without giving effect to any
extensions, waivers, amendments or other modifications of or to such period) of grace, if
any, provided in the instrument or agreement under which such Material Indebtedness was
created;

     (g)   any event or condition occurs (after giving effect to any applicable grace
periods and after giving effect to any extensions, waivers, amendments or other
modifications of any applicable provision or agreement) that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or permits the
holder or holders of any Material Indebtedness or any trustee or agent on its or their
behalf to cause, with the giving of an acceleration or similar notice if required, any
Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its scheduled maturity; provided that this clause (g)
shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale
or transfer of the property or assets securing such Indebtedness to the extent such
Indebtedness is paid when due;

     (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; provided, however, that the occurrence of any of the events
specified in this paragraph (h) with respect to any Person other than the Borrower shall not
be deemed to be an Event of Default unless (x) the net assets of such Person, determined in
accordance with GAAP, shall have exceeded $20,000,000 as of the date of the most recent
audited financial statements delivered to the Lenders pursuant to Section 5.01 or on the
date of occurrence of any such event and/or (y) the aggregate net assets of all Loan Parties
and other Subsidiaries in respect of which any of the events specified in this paragraph (h)
and in paragraphs (i) and (j) of this Article VII shall have occurred shall have exceeded
$50,000,000 as of the date of the most recent audited financial statements delivered to the
Lenders pursuant to Section 5.01 or on the date of occurrence of any such event;

     (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

 

55

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; provided,
however, that the occurrence of any of the events specified in this paragraph (i)
with respect to any Person other than the Borrower shall not be deemed to be an Event of
Default unless (x) the net assets of such Person, determined in accordance with GAAP, shall
have exceeded $20,000,000 as of the date of the most recent audited financial statements
delivered to the Lenders pursuant to Section 5.01 or on the date of occurrence of any such
event and/or (y) the aggregate net assets of all Loan Parties and other Subsidiaries in
respect of which any of the events specified in this paragraph (i) and in paragraphs (h) and
(j) of this Article VII shall have occurred shall have exceeded $50,000,000 as of the date
of the most recent audited financial statements delivered to the Lenders pursuant to Section
5.01 or on the date of occurrence of any such event;

     (j)   the Borrower or any Subsidiary shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due; provided,
however, that the occurrence of any of the events specified in this paragraph (j)
with respect to any Person other than the Borrower shall not be deemed to be an Event of
Default unless (x) the net assets of such Person, determined in accordance with GAAP, shall
have exceeded $20,000,000 as of the date of the most recent audited financial statements
delivered to the Lenders pursuant to Section 5.01 or on the date of occurrence of any such
event and/or (y) the aggregate net assets of all Loan Parties and other Subsidiaries in
respect of which
any of the events specified in this paragraph (j) and in paragraphs (h) and (i) of this
Article VII shall have occurred shall have exceeded $50,000,000 as of the date of the most
recent audited financial statements delivered to the Lenders pursuant to Section 5.01 or on
the date of occurrence of any such event;

     (k)   one or more judgments for the payment of money in an aggregate amount (not paid
or covered by insurance) in excess of $50,000,000 shall be rendered against the Borrower,
any Subsidiary or any combination thereof and (i) the same shall remain undischarged for a
period of 60 consecutive days from the entry thereof during which execution shall not be
effectively stayed or bonded, or (ii) 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;

     (l)   an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could reasonably be
expected to result in a Material Adverse Effect;

     (m)   Lauren, his estate or Persons related to him by blood, adoption or marriage
and/or trusts or other entities principally for the benefit of any of the foregoing (the
“Lauren Interests”) shall cease to own in the aggregate, directly or indirectly
either (x) Voting Stock of the Borrower having the voting power to elect a majority of the
Board of Directors of the Borrower or (y) Voting Stock representing more than 25% of the
voting power of the Borrower’s Equity Interests; or

     (n)   the Guarantee Agreement ceases to be in full force and effect;

 

56

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower
described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and
the principal of the Loans then outstanding, together with accrued interest thereon and all fees
and other obligations of the Borrower accrued hereunder, shall automatically become due and
payable, without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrower.

ARTICLE VIII

The Administrative Agent

          Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or
not taken by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the

 

57

circumstances as provided in Section
9.02) or in the absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof
is given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement, (ii) the contents of any
certificate, report or other document delivered hereunder or in connection herewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or
any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability
for relying thereon. The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrower), independent accountants and other experts selected by it, and shall not
be liable for any action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the
Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent
of the Borrower, to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an
office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 9.03 shall continue in effect for the benefit

 

58

of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while it was acting as Administrative Agent.

          Each Lender (including each Issuing Bank) acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender (including each Issuing Bank) also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement, any related
agreement or any document furnished hereunder or thereunder.

          The Syndication Agents shall not have any duties or responsibilities hereunder in their
capacity as such.

ARTICLE IX

Miscellaneous

          SECTION 9.01.   Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein and in the Guarantee Agreement shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:

     (i)    if to the Borrower, to Polo Ralph Lauren Corporation, 650 Madison Avenue, New
York, New York 10022, Attention of Tracey Travis, Senior Vice President, Finance and Chief
Financial Officer (Telecopy No. (212) 318-7705);

     (ii)    if to the Administrative Agent, to JPMorgan Chase Bank, Loan and Agency
Services Group, 1111 Fannin, 10th Floor, Houston, Texas, 77002, Attention of
Debbie Meche (Telecopy No. (713) 750-2938), with a copy to JPMorgan Chase Bank, 1411
Broadway, 5th Floor, New York 10018, Attention of Paul O’Neill (Telecopy No.
(212) 391-7118); and

     (iii)    if to any other Lender or any Issuing Bank, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.

          (b)   Notices and other communications to the Lenders (including any Issuing Bank) hereunder
may be delivered or furnished to the Lenders through the Administrative Agent by electronic
communications pursuant to procedures approved by the Administrative Agent; provided that
the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder

 

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by electronic
communications pursuant to procedures approved by it; provided that approval of such
procedures may be limited to particular notices or communications.

          (c)   Any party hereto may change its address or telecopy 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.

          SECTION 9.02.   Waivers; Amendments. (a)  No failure or delay by the Administrative
Agent, any Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Administrative Agent, the Issuing Banks and the Lenders hereunder and under the Guarantee
Agreement are cumulative
and are not exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or the Guarantee Agreement or consent to any departure by the
Borrower or any Guarantor therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any Lender or any Issuing
Bank may have had notice or knowledge of such Default at the time.

          (b)   Neither this Agreement nor the Guarantee Agreement nor any provision hereof or thereof
may be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Borrower or the Guarantors, as the case may be, and the Required Lenders or by the
Borrower or the Guarantors, as the case may be, and the Administrative Agent with the consent of
the Required Lenders; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan
or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of
payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any
fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, without the written consent of each Lender affected
thereby, (iv) change Section 2.16(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v) release all or
substantially all of the Guarantors from their obligations under the Guarantee Agreement, without
the written consent of each Lender (except that no approval of the Lenders shall be required to
release a Guarantor in connection with the disposition of all the capital stock of such Guarantor
not prohibited by the Loan Documents) or (vi) change any of the provisions of this Section or the
definition of “Required Lenders” or any other provision hereof specifying the number or percentage
of Lenders required to waive, amend or modify any rights hereunder or make any determination or
grant any consent hereunder, without the written consent of each Lender; provided
further that no such agreement shall amend, modify or otherwise affect the rights or duties
of the

 

60

Administrative Agent or an Issuing Bank without the prior written consent of the
Administrative Agent or such Issuing Bank, as the case may be.

          (c)   In the event that, at any time when the Borrower has satisfied all applicable conditions
set forth in Section 4.02, a Lender for any reason fails, refuses or has given notice to the
Administrative Agent and/or the Borrower that it refuses, to fund its portion of a Borrowing (a
“Defaulting Lender”), then, until such time as such Defaulting Lender has funded its
portion of such Borrowing, or the Administrative Agent or all other Lenders, as applicable, have
received payment in full (whether by repayment or prepayment) of the principal and interest due in
respect of such Borrowing, such Defaulting Lender shall not have the right to vote regarding any
issue on which voting is required or advisable under this Agreement or the Guarantee Agreement.

          SECTION 9.03.   Expenses; Indemnity; Damage Waiver. (a)  The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and J.P. Morgan Securities, Inc., as sole bookrunner and sole lead arranger,
including the reasonable fees, charges and disbursements of one domestic counsel for the
Administrative Agent and J.P. Morgan Securities, Inc., collectively, in connection with the
syndication of the credit facilities provided for herein, (provided that syndication expenses other
than counsel fees shall not exceed $10,000) the preparation of this Agreement or any amendments,
modifications or waivers of the provisions hereof and (ii) all reasonable out-of-pocket expenses
incurred by the Administrative Agent, any Issuing Bank or any Lender, including the reasonable
fees, charges and disbursements of one domestic counsel and one foreign counsel, as necessary, for
the Administrative Agent, any Issuing Bank or any Lender, in connection with the enforcement or
preservation of its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all
such reasonable out-of-pocket expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit .

          (b)   The Borrower shall indemnify the Administrative Agent, each Issuing Bank and each
Lender, and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the reasonable fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of,
in connection with, or as a result of (i) the execution or delivery of this Agreement or any
agreement or instrument contemplated hereby, the performance by the parties hereto of their
respective obligations hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by an Issuing Bank to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply with the terms of
such Letter of Credit), (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 its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its 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
Indemnitee is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or

 

61

related
expenses resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee or
such Indemnitee’s employer or any Affiliate of either thereof or any of their respective officers,
directors, employees, advisors or agents.

          (c)   To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent or any Issuing Bank under paragraph (a) or (b) of this Section, but without
affecting the Borrower’s obligations thereunder, each Lender severally agrees to pay to the
Administrative Agent or such Issuing Bank, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity payment is sought)
of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim,
damage, liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent or such Issuing Bank in its capacity as such.

          (d)   To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

          (e)   All amounts due under this Section shall be payable promptly after written demand
therefor.

          SECTION 9.04.   Successors and Assigns. (a)  The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of
Credit), except that (i) 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) and (ii) no
Lender (including any Issuing Bank) may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues
any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and,
to the extent expressly contemplated hereby, the Related Parties of each of the Administrative
Agent, each Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

          (b)   (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld or delayed) of:

     (A) the Borrower, provided that no consent of the Borrower shall be
required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
Event of Default under clause (a), (b), (h) or (i) of Article VII has occurred and is
continuing, any other assignee; and

 

62

     (B) the Administrative Agent, provided that no consent of the
Administrative Agent shall be required for an assignment of any Commitment to an assignee
that is a Lender with a Commitment immediately prior to giving effect to such assignment.

          (ii)  Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender or an Affiliate of a
Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment
or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than $5,000,000
unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be
required if an Event of Default under clause (a), (b), (h) or (i) of Article VII has
occurred and is continuing;

     (B) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500;

     (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and.

     (E) no assignment, (including any assignment to a Lender, an Affiliate of a
Lender or an Approved Fund) shall be permitted if, immediately after giving effect thereto,
amounts would become payable by the Borrower under Section 2.13 or 2.15 (including amounts
payable under Section 2.15 in respect of withholding taxes) that are in excess of those that
would be payable under such Section in respect of the amount assigned if such assignment
were not made.

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning:

          “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

          (iii)  Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this Agreement

 

63

(including, in the
case of any Foreign Lender (including each Issuing Bank that is a Foreign Lender), obligations
under Section 2.15(e)), and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.13, 2.14, 2.15 and 9.03); provided,
however, that no such assignment or transfer shall be deemed to be a waiver of any rights
which the Borrower, the Administrative Agent or any other Lender shall have against such Lender.
Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not
comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with paragraph (c) of this
Section.

          (iv)  The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitment of, and
principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower, any Issuing Bank and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

          (v)  Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption 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 paragraph.

          (c)   (i)  Any Lender may, without the consent of the Borrower, the Administrative Agent or
any Issuing Bank, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that
(A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(C) the Borrower, the Administrative Agent, the applicable Issuing Bank and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. 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 this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;
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 clauses
(i), (ii),(iii),(iv) and (vi) of the first proviso to Section 9.02(b) that

 

64

affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.13, 2.14 and 2.15 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.16(c) as though it were a Lender.

          (ii)  A Participant shall not be entitled to the benefits of Section 2.13, 2.14 or 2.15 unless
such Participant shall have complied with the requirements of such Section; provided, that in any
case in which a Participant is so entitled, any such Participant shall not be entitled to receive
any greater payment under Section 2.13, 2.14 or 2.15 than the applicable Lender would have been
entitled to receive with respect 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 2.15 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
2.15(e) as though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
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
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05.   Survival. All representations and warranties made by the Borrower
herein and in the certificates or other instruments delivered in connection with or pursuant to
this Agreement shall survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Letters of Credit, and shall terminate at such time as no principal of or
accrued interest on any Loan or any fee or any other amount payable under this Agreement (other
than contingent indemnification obligations that are not due and payable) is outstanding and
unpaid, no Letter of Credit is outstanding and the Commitments have expired or been terminated.
The provisions of Sections 2.13, 2.14, 2.15 and 9.03 and Article VIII shall survive and remain in
full force and effect regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments
or the termination of this Agreement or any provision hereof.

          SECTION 9.06.   Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure

 

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to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

          SECTION 9.07.   Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the
remaining provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

          SECTION 9.08.   Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of setoff) which such
Lender may have.

          SECTION 9.09.   Governing Law; Jurisdiction; Consent to Service of Process. (a)  This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

          (b)   Each party to this Agreement hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to the extent permitted
by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right
that any party hereto may otherwise have to bring any action or proceeding relating to this
Agreement against any other party hereto or its properties in the courts of any jurisdiction.

          (c)   Each party to this Agreement hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

66

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

          SECTION 9.10.   WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11.   Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12.   Confidentiality. Each of the Administrative Agent, each Issuing Bank
and the Lenders agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors, in each case who
have a need to know such Information in accordance with customary banking practices (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with the consent of the
Borrower or (h) to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the Administrative Agent, any
Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower which
is not subject to a confidentiality obligation known to the Administrative Agent and the Lenders
with respect to such information. . For the purposes of this Section, “Information” means all
information received from the Borrower or any Subsidiary relating to the Borrower, any Subsidiary
or their respective businesses, other than any such information that is available to the
Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure
by the Borrower or any Subsidiary; provided that, in the case of information received from
the Borrower or any Subsidiary after the date hereof, such information is clearly identified at the
time of delivery as confidential. Any Person required to maintain the

 

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confidentiality of
Information as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

          SECTION 9.13.   Satisfaction in Dollars. The obligation of the Borrower hereunder and
in respect of the Letters of Credit to make payments in dollars shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any
currency other than dollars or any other realization in such currency, whether as proceeds of
set-off, security, guarantee, distributions, or otherwise, except to the extent to which such
tender, recovery or realization shall result in the effective receipt by the Administrative Agent
and the Lenders of the full amount of dollars expressed to be payable hereunder and in respect of
the Letters of Credit and the Borrower shall indemnify the Administrative Agent, the Issuing Banks
and each Lender (as an alternative or additional cause of action) for the amount (if any) by which
such effective receipt shall fall short of the full amount of dollars expressed to be payable
hereunder and in respect of the Letters of Credit and such obligation to indemnify shall not be
affected by judgment being obtained for any other sums due under this Agreement and in respect of
the Letters of Credit.

          SECTION 9.14.    Waivers and Agreements Under Existing Credit Agreement. (a) The
Lenders which are parties to the Existing Credit Agreement (which Lenders constitute the “Required
Lenders” as defined in the Existing Credit Agreement) hereby (i) waive the requirement, set forth
in Section 2.07(c) of the Existing Credit Agreement, that the Borrower give not less than two
Business Days’ notice of any termination of the Commitments (as defined therein), (ii) acknowledge
and agree that, for purposes of determining the total “Revolving Credit Exposures” (as defined
therein) that would be outstanding thereunder on the date of such termination, the letters of
credit issued thereunder that are listed on Schedule 2.04 shall (as a result of the operation of
the last sentence of Section 2.04(a), which provides that on the Effective Date such letters of
credit shall be deemed to be “Letters of Credit” issued hereunder) on the Effective Date be deemed
no longer outstanding under the Existing Credit Agreement and (iii) pursuant to Section 9.02 of the
Existing Credit Agreement, consent to the execution and delivery by JPMorgan Chase Bank, N.A., in
its capacity as Administrative Agent (under and as defined in the Existing Credit Agreement) for
and on behalf of the Lenders (under and as defined in the Existing Credit Agreement), of this
Agreement to evidence or effectuate (as set forth in Section 9.14(b)) the waivers and agreements
set forth in clauses (i) and (ii) above.

          (b) JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent as defined in the
Existing Credit Agreement hereby (i) waives, for and on behalf of the Lenders (as defined therein),
the requirement, set forth in Section 2.07(c) of the Existing Credit Agreement, that the Borrower
give not less than two Business Days’ notice of any termination of the Commitments (as defined
therein) and (ii) acknowledges and agrees, for and on behalf of the Lenders (as defined therein),
that for purposes of determining the total “Revolving Credit Exposures” (as defined therein) that
would be outstanding thereunder on the date of such termination, the letters of credit issued
thereunder that are listed on Schedule 2.04 shall on the Effective Date be deemed no longer
outstanding under the Existing Credit Agreement.

 

68

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

	 	 	 	 	 
	 	POLO RALPH LAUREN CORPORATION

 	 
	 	By:  	/s/  TRACEY T. TRAVIS
 	 
	 	 	Name:  	Tracey T. Travis 	 
	 	 	Title:  	Senior Vice-President and Chief
Financial Officer 	 
	 
	 	JPMORGAN CHASE BANK, N.A., individually and as

Administrative Agent

 	 
	 	By:  	/s/  LOUIS MASTRIANNI
 	 
	 	 	Name:  	Louis Mastrianni 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, individually and as Syndication
Agent

 	 
	 	By:  	/s/  WILLIAM M. BARNUM, JR.
 	 
	 	 	Name:  	William M. Barnum, Jr. 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BANK OF AMERICA, N.A., individually and as

Syndication Agent

 	 
	 	By:  	/s/  REBECCA VOGEL
 	 
	 	 	Name:  	Rebecca Vogel 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CITIBANK, N.A., individually and as Syndication Agent

 	 
	 	By:  	/s/  ANTHONY V. PANTINA
 	 
	 	 	Name:  	Anthony V. Pantina 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	WACHOVIA BANK NATIONAL 

ASSOCIATION, individually and
as Syndication Agent

 	 
	 	By:  	/s/  SUSAN T. GALLAGHER
 	 
	 	 	Name:  	Susan T. Gallagher 	 
	 	 	Title:  	Vice President 	 
	 
	 	SUMITOMO MITSUI BANKING 

CORPORATION, individually
and as Co-Agent

 	 
	 	By:  	/s/  TSURU SHIGERU
 	 
	 	 	Name:  	Tsuru Shigeru 	 
	 	 	Title:  	Joint General Manager 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK SECURITIES INC., as Co-Agent

 	 
	 	By:  	/s/  FREDERICK W. LAIRD
 	 
	 	 	Name:  	Frederick W. Laird 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/  MING K. CHU
 	 
	 	 	Name:  	Ming K. Chu 	 
	 	 	Title:  	Vice President 	 
	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH, 

as a Lender

 	 
	 	By:  	/s/  FREDERICK W. LAIRD
 	 
	 	 	Name:  	Frederick W. Laird 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/  MING K. CHU
 	 
	 	 	Name:  	Ming K. Chu 	 
	 	 	Title:  	Vice President 	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s/  SARAH R. WEST
 	 
	 	 	Name:  	Sarah R. West 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	UNION BANK OF CALIFORNIA, N.A.

 	 
	 	By:  	/s/  CHING LIM
 	 
	 	 	Name:  	Ching Lim 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/  GREGORY L. DRYDEN
 	 
	 	 	Name:  	Gregory L. Dryden 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BARCLAYS BANK PLC

 	 
	 	By:  	/s/  NICHOLAS BELL
 	 
	 	 	Name:  	Nicholas Bell 	 
	 	 	Title:  	Director 	 
	 
	 	LASALLE BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/  PEG LAUGHLIN
 	 
	 	 	Name:  	Peg Laughlin 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/  MEGAN DONNELLY
 	 
	 	 	Name:  	Megan Donnelly 	 
	 	 	Title:  	Vice President 	 
	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/  RICHARD L. TAVROW
 	 
	 	 	Name:  	Richard L. Tavrow 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/  IRJA R. OTSA
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 

 

 

	 	 	 	 	 

COMMITMENTS

	 	 	 	 	 
	LENDER	 	AMOUNT	 
	JPMorgan Chase Bank, N.A.
	 	$	55,000,000	 
	Bank of America, N.A.
	 	$	42,500,000	 
	The Bank of New York
	 	$	42,500,000	 
	Wachovia Bank National Association
	 	$	42,500,000	 
	Citibank N.A.
	 	$	42,500,000	 
	Sumitomo Mitsui Banking Corporation
	 	$	35,000,000	 
	Deutsche Bank AG New York Branch
	 	$	35,000,000	 
	LaSalle Bank National Association
	 	$	27,500,000	 
	Wells Fargo Bank, N.A.
	 	$	27,500,000	 
	Barclays Bank PLC
	 	$	20,000,000	 
	UBS Loan Finance LLC
	 	$	20,000,000	 
	Union Bank of California, N.A.
	 	$	20,000,000	 
	U.S. Bank National Association
	 	$	20,000,000	 
	Comerica Bank
	 	$	20,000,000	 
	 
	 	 	 
	TOTAL
	 	$	450,000,000.00<PAGE>
                                                                     Exhibit 4.1

                                                                  EXECUTION COPY

--------------------------------------------------------------------------------

                         AMERICAN EXPRESS ISSUANCE TRUST

                              AMENDED AND RESTATED
                         RECEIVABLES PURCHASE AGREEMENT

                                     between

                         AMERICAN EXPRESS CENTURION BANK

                                       and

             AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.

                          Dated as of January 24, 2007

--------------------------------------------------------------------------------

<PAGE>

            AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as of
January 24, 2007, by and between AMERICAN EXPRESS CENTURION BANK, a Utah
industrial bank (together with its permitted successors and assigns,
"CENTURION") and AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., a New
York corporation (together with its permitted successors and assigns, "TRS").

                              W I T N E S S E T H:

            WHEREAS, TRS desires to purchase, from time to time, certain
Receivables (hereinafter defined) existing or arising in designated charge
accounts of Centurion;

            WHEREAS, Centurion desires to sell and assign, from time to time,
certain Receivables to TRS upon the terms and conditions hereinafter set forth;

            WHEREAS, it is contemplated that the Receivables purchased hereunder
will be transferred by TRS to American Express Receivables Financing Corporation
V ("RFC V") and by RFC V to the Trust under the terms of the Transfer and
Servicing Agreement in connection with the issuance of notes secured by the
Receivables (each capitalized term as hereinafter defined);

            WHEREAS, Centurion agrees that all representations, warranties,
covenants and agreements made by Centurion herein with respect to the Accounts
and the Receivables shall also be for the benefit of RFC V, the Trust, the Owner
Trustee, the Indenture Trustee and the Noteholders (each capitalized term as
hereinafter defined);

            WHEREAS, Centurion and TRS previously entered into the Receivables
Purchase Agreement, dated as of May 19, 2005 (the "ORIGINAL AGREEMENT"); and

            WHEREAS, Centurion and TRS hereto desire to amend and restate the
Original Agreement.

            NOW, THEREFORE, it is hereby agreed by and between Centurion and TRS
as follows:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01. Definitions. All capitalized terms used herein or in
any certificate, or document made or delivered pursuant hereto, and not defined
herein or therein, shall have the following meanings:

            "Account" shall mean each (a) Initial Account, (b) each Additional
Account (but only from and after the Addition Date with respect thereto) and (c)
each Related Account. The term "Account" shall include any account replacing an
Account (as defined in the TRS-RFC V Receivables Purchase Agreement) in
connection with the transfer of ownership of such Account (as defined in the
TRS-RFC V Receivables Purchase Agreement) from an Account Owner to Centurion
(provided that such replacement account can be traced or identified by reference
to, or by way of, the code designation in the securitization field of such
replacement account, which code designation is contained in the computer or
other records of Centurion used to generate the Account Schedule). The term
"Account" shall exclude (i) any Deleted Account and (ii) any Account, all the
Receivables
<PAGE>

of which are reassigned to TRS pursuant to Section 6.01 or Section 6.02. The
term "Account" shall include any Removed Account only prior to the Removal Date
with respect thereto.

            "Account Agreement" shall mean, with respect to an Account, the
agreements between Centurion and an Obligor governing the terms and conditions
of such Account, as such agreements may be amended, modified or otherwise
changed from time to time and as distributed (including any amendments and
revisions thereto) to holders of such Account.

            "Account Guidelines" shall mean the established policies and
procedures of Centurion, (a) relating to the operation of its charge business
which generally are applicable to its portfolio of similar accounts, including
the policies and procedures for determining the creditworthiness of customers
and the extension of charge privileges to customers, and (b) relating to the
maintenance of accounts and collection of receivables, in each case as such
policies and procedures may be amended, modified or otherwise changed from time
to time.

            "Account Owner" shall have the meaning specified in the TRS-RFC V
Receivables Purchase Agreement.

            "Account Schedule" shall mean a computer file or microfiche list
containing a true and complete list of Accounts, identified by account number,
and setting forth, with respect to each Account, the aggregate amount
outstanding in such Account (a) on the Initial Cut Off Date (for the Account
Schedule delivered on the Closing Date) and (b) on the applicable Addition
Cut-Off Date (for any Account Schedule relating to Additional Accounts).

            "Addition Cut-Off Date" shall mean (a) with respect to each New
Account, the date on which such New Account is originated, and (b) with respect
to Aggregate Addition Accounts, the date specified as such in the related
Aggregate Addition Account Supplemental Conveyance.

            "Addition Date" shall mean (a) with respect to New Accounts, the
date from and after which such New Accounts are to be included as Accounts
pursuant to Section 2.03(a) and the related New Account Supplemental Conveyance,
and (b) with respect to Aggregate Addition Accounts, the date from and after
which such Aggregate Addition Accounts are included as Accounts pursuant to
Subsection 2.02(a) and the related Aggregate Addition Account Supplemental
Conveyance.

            "Additional Account" shall mean each New Account and each Aggregate
Addition Account.

            "Affiliate" shall mean, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" shall mean the
power to direct the management and policies of a Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" shall have meanings correlative to
the foregoing.

            "Aggregate Addition Account" shall mean each charge account
established pursuant to an Account Agreement between Centurion and any Person,
which account is designated pursuant to Section 2.02 to be included as an
Account and identified on an Account Schedule delivered pursuant to Sections
2.01 and 2.02.

                                       2
<PAGE>

            "Aggregate Addition Account Supplemental Conveyance" shall have the
meaning specified in Subsection 2.02(b).

            "Agreement" shall mean this Amended and Restated Receivables
Purchase Agreement, as the same may be amended and supplemented from time to
time.

            "Business Day" shall mean any day other than (a) a Saturday or
Sunday or (b) any other day on which national banking associations, federal
savings banks or state banking institutions in New York, New York, or any other
State in which the principal executive offices of Centurion are located, are
authorized or obligated by law, executive order or governmental decree to be
closed.

            "Closing Date" shall mean May 19, 2005.

            "Collection Account" shall have the meaning specified in the
Indenture.

            "Collections" shall mean all payments (excluding Recoveries)
received in respect of the Receivables, in the form of cash, checks, wire
transfers, electronic transfers, ATM transfers or any other form of payment.

            "Conveyance" shall have the meaning specified in Subsection 2.01(a).

            "Credco" shall mean American Express Credit Corporation, a Delaware
corporation, including any subsidiary thereof, and its permitted successors and
assigns.

            "Date of Processing" shall mean, with respect to any transaction or
receipt of Collections, the Business Day after such transaction or receipt is
first output, in written form under TRS's customary and usual practices, from
TRS's computer file of Accounts and accounts comparable to the Accounts (without
regard to the effective date of recordation).

            "Debtor Relief Laws" shall mean (a) the United States Bankruptcy
Code and (b) all other applicable liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, receivership, insolvency, reorganization, suspension
of payments, readjustment of debt, marshalling of assets, assignment for the
benefit of creditors and similar debtor relief laws from time to time in effect
in any jurisdiction affecting the rights of creditors generally or the rights of
creditors of banks.

            "Defaulted Receivable" shall mean a Principal Receivable which is
charged off as uncollectible in accordance with the Account Guidelines and the
Servicer's customary and usual servicing procedures for servicing receivables
comparable to the Receivables. A Principal Receivable shall become a Defaulted
Receivable on the Date of Processing on which such Principal Receivable is
recorded as charged-off on the Servicer's computer file of Accounts.

            "Deleted Account" shall mean any Removed Account as to which there
are no Receivables arising therein (including Receivables that, though charged
off as uncollectible, may generate Recoveries) owned by TRS.

            "Discount Option Receivables" shall have the meaning specified in
the Transfer and Servicing Agreement.

            "Early Amortization Event" shall have the meaning specified in the
Indenture.

                                       3
<PAGE>

            "Eligible Account" shall mean each charge account established
pursuant to an Account Agreement between Centurion and any Person, which meets
the following requirements as of the applicable Selection Date:

            (a) is a charge account in existence and maintained with Centurion;

            (b) is payable in United States dollars;

            (c) has not been identified by Centurion or TRS in its computer
files as canceled due to a related Obligor's bankruptcy or insolvency;

            (d) has an Obligor who has provided, as his or her most recent
billing address, an address located in the United States or its territories or
possessions or a United States military address; provided, however, that, with
the consent of TRS, as of such Selection Date, up to 3% of the aggregate amount
of Receivables may have related Obligors who have provided, as their billing
addresses, addresses located outside of such jurisdictions;

            (e) if such account is a charge card account, has not been
identified as an account with respect to which a related card has been lost or
stolen;

            (f) has not been sold or pledged by Centurion to any other party;

            (g) does not have any receivables that have been sold or pledged by
Centurion to any other Person other than Credco, TRS or any Transferor; and

            (h) does not have any receivables that have been written off or that
have been identified by Centurion as having been incurred as a result of the
fraudulent use of a related charge card.

Notwithstanding the above requirements, Eligible Accounts may include accounts,
the receivables of which have been written off, or which have been identified by
Centurion or TRS in its computer files as canceled due to a related Obligor's
bankruptcy or insolvency, in each case as of the related Selection Date;
provided, however, that (1) the balance of all receivables included in such
accounts is reflected on the books and records of Centurion (and is treated for
purposes of this Agreement) as "zero" and (2) borrowing and charging privileges
with respect to all such accounts have been canceled in accordance with the
Account Guidelines applicable thereto.

            "Eligible Receivable" shall mean each Receivable:

            (a) which has arisen in an Eligible Account;

            (b) which was created in compliance in all material respects with
all Requirements of Law applicable to Centurion and pursuant to an Account
Agreement that complies in all material respects with all Requirements of Law
applicable to Centurion, in either case, the failure to comply with which would
have a material adverse effect on TRS;

            (c) with respect to which all material consents, licenses, approvals
or authorizations of, or registrations or declarations with, any Governmental
Authority required to be obtained, effected or given in connection with the
creation of such Receivable or the execution, delivery and performance by
Centurion of the Account Agreement pursuant to which such Receivable was
created, have been duly obtained, effected or given and are in full force and
effect;

                                       4
<PAGE>

            (d) as to which, immediately prior to the sale of such Receivable to
TRS, Centurion has good and marketable title thereto, free and clear of all
Liens (other than any Lien for municipal or other local taxes of Centurion if
such taxes are not then due and payable or if Centurion is then contesting the
validity thereof in good faith by appropriate proceedings and has set aside on
its books and records adequate reserves with respect thereto);

            (e) which has been the subject of a valid sale and assignment from
Centurion to TRS of all Centurion's right, title and interest therein (including
any proceeds thereof);

            (f) which is the legal, valid and binding payment obligation of an
Obligor thereon, enforceable against such Obligor in accordance with its terms,
except as such enforceability may be limited by applicable Debtor Relief Laws
and except as such enforceability may be limited by general principles of equity
(whether considered in a suit at law or in equity);

            (g) which, at the time of the sale of such Receivable to TRS, has
not been waived or modified except as permitted in accordance with the Account
Guidelines and which waiver or modification is reflected in Centurion's computer
file of Accounts;

            (h) which, at the time of the sale of such Receivable to TRS, is not
subject to any right of rescission, setoff, counterclaim or any other defense
(including defenses arising out of violations of usury laws) of an Obligor,
other than defenses arising out of applicable Debtor Relief Laws;

            (i) as to which, at the time of the sale of such Receivable to TRS,
Centurion has satisfied all its obligations required to be satisfied by such
time;

            (j) as to which, at the time of the sale of such Receivable to TRS,
Centurion has not taken any action which would impair, or omitted to take any
action the omission of which would impair, the rights of TRS therein; and

            (k) which constitutes either an "account" or a "general intangible"
under and as defined in Article 9 of the UCC as then in effect in any
jurisdiction where the filing of a financing statement is then required to
perfect TRS's interest in such Receivable and the proceeds thereof.

            "Event of Default" shall have the meaning specified in the
Indenture.

            "Excess Funding Account" shall have the meaning specified in the
Indenture.

            "Finance Charge Receivables" shall mean the aggregate amount of
Discount Option Receivables.

            "First Note Transfer Date" shall have the meaning specified in the
Transfer and Servicing Agreement.

            "Governmental Authority" shall mean the United States of America,
any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

            "Indenture" shall mean the Indenture, dated as of May 19, 2005,
between the Trust, as issuer, and the Indenture Trustee, as the same may be
amended, supplemented or otherwise modified from time to time.

                                       5
<PAGE>

            "Indenture Trustee" shall mean The Bank of New York, in its capacity
as indenture trustee under the Indenture, its successors in interest and any
successor indenture trustee under the Indenture.

            "Initial Account" shall mean each charge account established
pursuant to an Account Agreement between Centurion and any Person, which account
is identified in the Account Schedule delivered or caused to be delivered by
Centurion to TRS on the Closing Date.

            "Initial Cut-Off Date" shall mean the opening of business on April
25, 2005.

            "Insolvency Event" shall have the meaning specified in Section 8.02.

            "Issuer Rate Fees" shall mean all issuer rate fees payable to
Centurion in connection with cardholder charges for goods or services with
respect to the Receivables.

            "Lien" shall mean any security interest, mortgage, deed of trust,
pledge, hypothecation, assignment, deposit arrangement, equity interest,
encumbrance, lien (statutory or other), preference, participation interest,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever, including any conditional sale or other title retention
agreement, or any financing lease having substantially the same economic effect
as any of the foregoing; provided, however, that the security interest created
in favor of the Indenture Trustee shall not be deemed to constitute a Lien.

            "Monthly Period" shall mean, with respect to each Payment Date, the
period (a) from and including the second day following the last day of the
seventh billing cycle applicable to the Accounts ending during the second
preceding calendar month and (b) to and including the day following the last day
of the seventh billing cycle applicable to the Accounts ending in the calendar
month immediately preceding the calendar month in which such Payment Date shall
occur.

            "New Account" shall mean each charge account established pursuant to
an Account Agreement between Centurion and any Person, which account is
designated pursuant to Subsection 2.03(a) to be included as an Account and
identified on an Account Schedule delivered pursuant to Sections 2.01 and 2.03.

            "New Account Delivery Date" shall mean, with respect to any New
Account, the fifteenth calendar day of the month (or, if such 15th calendar day
is not a Business Day, the next succeeding Business Day) following the Monthly
Period in which the Addition Date for such New Account occurs.

            "New Account Supplemental Conveyance" shall have the meaning
specified in Subsection 2.03(b).

            "Note Rating Agency" shall mean the nationally recognized
statistical rating agency or agencies, if any, selected by RFC V and any other
Transferor to rate any securities issued by the Trust.

            "Noteholder" shall have the meaning specified in the Indenture.

            "Obligor" shall mean, with respect to any Account, the Person or
Persons obligated to make payments with respect to such Account, including any
guarantor thereof, but excluding any merchant.

                                       6
<PAGE>

            "Officer's Certificate" shall mean a certificate delivered to TRS
signed by any Vice President or more senior officer of Centurion and which
states that the certifications set forth in such certificate are based upon the
results of a due inquiry into the matters in question conducted by or under the
supervision of the signing officer and that the facts stated in such
certifications are true and correct to the best of the signing officer's
knowledge.

            "Original Agreement" shall have the meaning specified in the
recitals hereto.

            "Owner Trustee" shall mean Wilmington Trust Company, not in its
individual capacity, but solely as owner trustee under the Trust Agreement, its
successors in interest and any successor owner trustee under the Trust
Agreement.

            "Payment Date" shall have the meaning specified in the Indenture.

            "Person" shall mean any person or entity, including any individual,
corporation, limited liability company, partnership (general or limited), joint
venture, association, joint-stock company, trust, unincorporated organization,
Governmental Authority, or other entity of any nature.

            "Principal Receivables" shall mean all Receivables other than
Finance Charge Receivables.

            "Proceeding" shall mean any suit in equity, action at law or other
judicial or administrative proceeding.

            "Purchase Price" shall have the meaning specified in Subsection
3.01(a).

            "Purchase Price Adjustment" shall have the meaning specified in
Section 3.02.

            "Purchase Price Payment Date" shall have the meaning specified in
Subsection 3.01(a).

            "Purchased Assets" shall have the meaning specified in Subsection
2.01(a).

            "Receivables" shall mean all amounts shown on the records of
Centurion as amounts payable by an Obligor on any Account from time to time,
including amounts payable for Principal Receivables and Finance Charge
Receivables.

            "Recoveries" shall mean all amounts received with respect to
Receivables which have previously been charged-off.

            "Related Account" shall mean an Account with respect to which a new
account number has been issued by Centurion (i) in compliance with the Account
Guidelines and the related Account Agreement, (ii) to the same Obligor or
Obligors of such Account, and (iii) (a) as a result of the charge card with
respect to such Account being lost or stolen; (b) as a result of the related
Obligor requesting a change in his or her billing cycle; (c) as a result of the
related Obligor requesting the discontinuance of responsibility with respect to
such Account; (d) as a result of the related Obligor requesting a product
change; or (e) for any other reasons permitted by the Account Guidelines;
provided that such Account can be traced or identified by reference to or by way
of the code designation in the securitization field of such Account, which code
designation is contained in the computer or other records of Centurion used to
generate the Account Schedule.

                                       7
<PAGE>

            "Removed Account" shall mean any Account as to which Centurion has
received notice from TRS that such Account is a "Removed Account" as defined in
the Transfer and Servicing Agreement.

            "Requirements of Law" shall mean any law, treaty, rule or
regulation, or determination of an arbitrator or Governmental Authority, whether
federal, state or local (including, without limitation, usury laws, the Federal
Truth in Lending Act and Regulation B and Regulation Z of the Board of Governors
of the Federal Reserve System), and, when used with respect to any Person, the
certificate of incorporation and by-laws or other organizational or governing
documents of such Person.

            "RFC V" shall have the meaning specified in the recitals hereto.

            "Selection Date" shall mean (i) with respect to each Initial Account
with the code designation "AA," the close of business on the cycle billing date
for such Account occurring in the Monthly Period beginning October 2, 2004 and
ending at the close of business on October 29, 2004 and (b) with respect to each
Initial Account with the code designation "5," the close of business on the
cycle billing date for such Account occurring in the Monthly Period beginning
March 18, 2004 and ending at the close of business on April 14, 2004, (ii) with
respect to each Aggregate Addition Account, the date specified as such in the
related Aggregate Addition Account Supplemental Conveyance and (iii) with
respect to each New Account, the date on which such New Account is originated.

            "Servicer" shall mean the entity acting as Servicer under the
Transfer and Servicing Agreement.

            "Small Balances" shall have the meaning established in accordance
with the Account Guidelines.

            "Stop Date" shall have the meaning specified in Subsection 2.04(a).

            "Supplemental Conveyance" shall mean an Aggregate Addition Account
Supplemental Conveyance or a New Account Supplemental Conveyance.

            "Transfer and Servicing Agreement" shall mean the Transfer and
Servicing Agreement, dated as of May 19, 2005, among RFC V, as Transferor, TRS,
as Servicer and Administrator, the Trust, as Issuer, and the Indenture Trustee,
as amended, supplemented or restated from time to time.

            "Transfer Restriction Event" shall mean that Centurion is unable for
any reason to transfer Receivables to TRS in accordance with the provisions of
this Agreement, including by reason of the application of the provisions in
Section 8.02 or any order of any Governmental Authority.

            "Transferor" shall mean the entity or entities acting as a
Transferor under the Transfer and Servicing Agreement.

            "TRS" shall have the meaning specified in the initial paragraph of
this Agreement.

                                       8
<PAGE>

            "TRS-RFC V Receivables Purchase Agreement" shall mean the
receivables purchase agreement, dated May 19, 2005, between TRS and RFC V, as
the same may be amended, supplemented or otherwise modified from time to time.

            "Trust" shall mean the American Express Issuance Trust, created
under the Trust Agreement.

            "Trust Agreement" shall mean the Trust Agreement relating to the
Trust, dated as of May 18, 2005, between the Transferor and the Owner Trustee,
as the same may be amended, supplemented or otherwise modified from time to
time.

            "UCC" shall mean the Uniform Commercial Code as in effect in the
applicable jurisdiction.

            Section 1.02. Other Definitional Provisions.

            The words "HEREOF," "HEREIN," "HEREUNDER" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; and Section, Subsection,
Schedule and Exhibit references contained in this Agreement are references to
Sections, Subsections, Schedules and Exhibits in or to this Agreement unless
otherwise specified.

                               [END OF ARTICLE I]

                                       9
<PAGE>

                                   ARTICLE II

                     PURCHASE AND CONVEYANCE OF RECEIVABLES

            Section 2.01. Purchase.

            (a) In consideration of the payment of the Purchase Price as
provided herein, Centurion does hereby sell, transfer, assign, set over and
otherwise convey to TRS (collectively, the "CONVEYANCE"), without recourse
except as provided herein, all of its right, title and interest, whether now
owned or hereafter acquired, in, to and under the Receivables existing at the
Initial Cut-Off Date, in the case of Receivables arising in the Initial Accounts
(including Related Accounts with respect to such Initial Accounts), and at the
applicable Addition Cut-Off Date, in the case of Receivables arising in the
Additional Accounts (including Related Accounts with respect to such Additional
Accounts), and in each case thereafter created from time to time in the
Accounts, all Recoveries allocable to such Receivables, all monies due or to
become due and all amounts received or receivable with respect thereto, all
Collections with respect thereto, and all proceeds (including "proceeds" as
defined in the UCC) thereof, but excluding any Issuer Rate Fees allocable to
such Receivables (collectively, the "PURCHASED ASSETS"). As purchaser of the
Purchased Assets, TRS shall have the right to pledge, assign, transfer, sell and
exercise full control over all the Purchased Assets, subject to the interests of
any subsequent purchaser or assignee of the Purchased Assets.

            The Receivables existing in the Initial Accounts at the Initial
Cut-Off Date and thereafter arising in the Initial Accounts on or prior to the
Closing Date, and the related Purchased Assets, shall be sold by Centurion and
purchased by TRS on the Closing Date. Receivables arising after the Closing Date
in the Initial Accounts and the related Purchased Assets shall be sold by
Centurion and purchased by TRS on the date such Receivables arise. The
Receivables existing in Additional Accounts at the related Addition Cut-Off Date
and thereafter arising in such Additional Accounts on or prior to the related
Addition Date, and the related Purchased Assets, shall be sold by Centurion and
purchased by TRS on the related Addition Date. Receivables arising after such
Addition Date in such Additional Accounts and the related Purchased Assets shall
be sold by Centurion and purchased by TRS on the date such Receivables arise.

            (b) Centurion shall (i) record and file, at its own expense, any
financing statements (and amendments with respect to such financing statements
when applicable) with respect to the Purchased Assets meeting the requirements
of applicable state law in such manner and in such jurisdictions as are
necessary to perfect, and maintain perfection of, the Conveyance of such
Purchased Assets from Centurion to TRS, (ii) cause such financing statements and
amendments to name Centurion, as seller, and TRS, as purchaser, of the Purchased
Assets and (iii) deliver a file-stamped copy of such financing statements or
amendments or other evidence of such filings to TRS as soon as is practicable
after filing.

            (c) Centurion shall, at its own expense, (i) on or prior to (x) the
Closing Date, in the case of Initial Accounts, and (y) the applicable Addition
Date, in the case of Additional Accounts, indicate in its books and records
(including its computer files) that Receivables created in connection with such
Accounts and the related Purchased Assets have been sold to TRS in accordance
with this Agreement and have been conveyed by TRS to RFC V pursuant to the
TRS-RFC V Receivables Purchase Agreement and by RFC V to the Trust pursuant to
the Transfer and Servicing Agreement, and (ii) on or prior to (x) the Closing
Date, in the case of Initial Accounts, and (y) the applicable Addition Date, in
the case of Additional Accounts, deliver or cause to be delivered to TRS an
Account Schedule (provided, however, that such Account Schedule shall be
provided in

                                       10
<PAGE>

respect of New Accounts on the New Account Delivery Date) containing a true and
complete list of all such Accounts. Centurion shall not alter the indication
referenced in clause (i) of this paragraph with respect to any Account during
the term of this Agreement unless and until such Account is no longer an Account
or Centurion has taken such action as is necessary or advisable to cause the
interest of TRS in the Purchased Assets to continue to be perfected and of first
priority. The Account Schedules, as supplemented and amended, collectively shall
be marked as SCHEDULE 1 to this Agreement, shall be incorporated into and made a
part of this Agreement and shall be updated or caused to be updated by Centurion
on each Addition Date (or, with respect to New Accounts, on the New Account
Delivery Date) to include any new Additional Accounts, and shall be updated or
caused to be updated by Centurion not later than semi-annually to include any
new Related Accounts.

            (d) The parties hereto intend that the conveyance of Centurion's
right, title and interest in and to the Purchased Assets shall constitute an
absolute sale, conveying good title free and clear of any liens, claims,
encumbrances or rights of others, from Centurion to TRS. It is the intention of
the parties hereto that the arrangements with respect to the Purchased Assets
shall constitute a purchase and sale of such Purchased Assets and not a loan,
including for accounting purposes. In the event, however, that it were to be
determined that the transactions evidenced hereby constitute a loan and not a
purchase and sale, it is the intention of the parties hereto that this Agreement
shall constitute a security agreement under applicable law, and that Centurion
shall be deemed to have granted, and Centurion does hereby grant, to TRS a first
priority perfected security interest in all of Centurion's right, title and
interest, whether now owned or hereafter acquired, in, to and under the
Purchased Assets to secure the obligations of Centurion hereunder.

            (e) To the extent that Centurion retains any interest in the
Purchased Assets, Centurion hereby grants to the Trust and the Indenture Trustee
a security interest in all of Centurion's right, title and interest, whether now
owned or hereafter acquired, in, to and under the Purchased Assets, to secure
the performance of all of the obligations of Centurion hereunder. With respect
to such security interest and such collateral, the Trust and the Indenture
Trustee shall have all of the rights that it has under the Transfer and
Servicing Agreement. Each of the Trust and the Indenture Trustee shall also have
all of the rights of a secured creditor under the UCC.

            Section 2.02. Addition of Aggregate Addition Accounts.

            (a) If, from time to time, TRS becomes obligated to designate
Aggregate Addition Accounts (as such term is defined in the Transfer and
Servicing Agreement) pursuant to Subsection 2.02(a) of the TRS-RFC V Receivables
Purchase Agreement, then TRS may, at its option, give Centurion written notice
thereof on or before the eighth Business Day (the "ADDITION NOTICE DATE") prior
to the Addition Date therefor, and upon receipt of such notice, Centurion shall,
on or before the Addition Date, designate sufficient Eligible Accounts as
Aggregate Addition Accounts and shall sell to TRS the Purchased Assets related
to such Aggregate Addition Accounts so that, following the inclusion thereof,
TRS will be in compliance with the requirements of Subsection 2.02(a) of the
TRS-RFC V Receivables Purchase Agreement. Additionally, subject to Subsection
2.02(b) of this Agreement, at its option and with the consent of TRS, Centurion
may designate Eligible Accounts as Aggregate Addition Accounts and sell to TRS
the Purchased Assets related to such Aggregate Addition Accounts. In either
event, Centurion shall have sole responsibility for selecting the Aggregate
Addition Accounts.

            (b) On the Addition Date with respect to any designation of
Aggregate Addition Accounts, such Aggregate Addition Accounts shall become
Accounts, and TRS shall purchase

                                       11
<PAGE>

Centurion's right, title and interest in, to and under the Receivables in such
Aggregate Addition Accounts and the related Purchased Assets as provided in
Section 2.01, subject to the satisfaction of the following conditions on such
Addition Date:

            (i) as of the applicable Selection Date, each Aggregate Addition
      Account shall be an Eligible Account;

            (ii) Centurion shall have delivered to TRS copies of UCC financing
      statements covering such Aggregate Addition Accounts, if necessary to
      perfect TRS's interest in the Receivables arising therein and the related
      Purchased Assets;

            (iii) to the extent daily collections are required by Section 3.1 of
      the Transfer and Servicing Agreement, Centurion, on behalf of TRS, shall
      have deposited into the Collection Account all Collections with respect to
      such Aggregate Addition Accounts since the applicable Addition Cut-Off
      Date;

            (iv) as of each of the Addition Cut-Off Date and the Addition Date,
      no Insolvency Event with respect to Centurion shall have occurred nor
      shall the sale of the Receivables arising in the Aggregate Addition
      Accounts and the related Purchased Assets to TRS have been made in
      contemplation of the occurrence thereof;

            (v) such addition will not, in the reasonable belief of Centurion,
      have a material adverse effect on TRS;

            (vi) Centurion shall have delivered to TRS an Officer's Certificate
      of Centurion, dated the Addition Date, confirming, to the extent
      applicable and in Centurion's reasonable belief, the items set forth in
      clauses (i) through (v) above;

            (vii) Centurion shall have indicated in its computer files that
      Receivables created in connection with such Aggregate Addition Accounts
      and the related Purchased Assets have been sold to TRS and shall have
      delivered or caused to be delivered to TRS the Account Schedule with
      respect to such Aggregate Addition Accounts in accordance with Subsection
      2.01(c); and

            (viii) Centurion and TRS shall have entered into a duly executed,
      written assignment, substantially in the form of EXHIBIT A (an "AGGREGATE
      ADDITION ACCOUNT SUPPLEMENTAL CONVEYANCE").

            Section 2.03. Addition of New Accounts.

            (a) Upon the mutual agreement of Centurion and TRS, subject to
compliance by Centurion with Subsection 2.03(b), Centurion may designate newly
originated Eligible Accounts to be included as New Accounts and sell to TRS the
Purchased Assets related to such New Accounts. Centurion shall cooperate with
TRS to enable TRS to comply with the requirements of Subsections 2.03(a) and (b)
of the TRS-RFC V Receivables Purchase Agreement and shall cooperate with TRS to
enable TRS to perform with respect to the Receivables in such New Accounts all
actions specified in Subsections 2.03(a) and (b) of the TRS-RFC V Receivables
Purchase Agreement.

            (b) On the Addition Date with respect to any New Accounts, TRS shall
purchase Centurion's right, title and interest in, to and under the Receivables
in such New Accounts

                                       12
<PAGE>

(and such New Accounts shall be deemed to be Accounts for purposes of this
Agreement) upon satisfaction of the following conditions:

            (i) as of the applicable Selection Date, each New Account shall be
      an Eligible Account;

            (ii) on such Addition Date, Centurion shall have delivered to TRS
      copies of UCC financing statements covering such New Accounts, if
      necessary to perfect TRS's interest in the Receivables arising therein and
      the related Purchased Assets;

            (iii) to the extent daily collections are required by Section 3.1 of
      the Transfer and Servicing Agreement, Centurion, on behalf of TRS, shall
      have deposited into the Collection Account all Collections with respect to
      such New Accounts since the applicable Addition Cut-Off Date;

            (iv) as of each of the Addition Cut-Off Date and such Addition Date,
      no Insolvency Event with respect to Centurion shall have occurred nor
      shall the sale of the Receivables arising in the New Accounts and the
      related Purchased Assets to TRS have been made in contemplation of the
      occurrence thereof;

            (v) such addition will not, in the reasonable belief of Centurion,
      have a material adverse effect on TRS;

            (vi) on such Addition Date, Centurion shall have delivered to TRS an
      Officer's Certificate of Centurion, dated such Addition Date, confirming,
      to the extent applicable and in Centurion's reasonable belief, the items
      set forth in clauses (i) through (v) above;

            (vii) on such Addition Date, Centurion shall have indicated in its
      computer files that Receivables created in connection with such New
      Accounts and the related Purchased Assets have been sold to TRS; and

            (viii) on such Addition Date, Centurion and TRS shall have entered
      into a duly executed, written assignment, substantially in the form of
      EXHIBIT B (a "NEW ACCOUNT SUPPLEMENTAL CONVEYANCE").

            (c) On the related New Account Delivery Date, Centurion shall
deliver or cause to be delivered the Account Schedule with respect to such New
Accounts.

            Section 2.04. Removal and Deletion of Accounts.

            (a) If an Account becomes a Removed Account, then Centurion shall
stop selling to TRS Receivables arising in such Removed Account effective on the
Business Day (the "STOP DATE") after the date such Account becomes a Removed
Account. Notwithstanding the cessation of the sale to TRS of additional
Receivables arising in such Removed Account, Receivables sold to TRS prior to
the Stop Date and Collections in respect of such Receivables shall continue to
be property of TRS available for transfer by TRS to RFC V pursuant to the
TRS-RFC V Receivables Purchase Agreement and by RFC V to the Trust pursuant to
the Transfer and Servicing Agreement. To the extent that it is not clear to
Centurion whether Collections relate to a Receivable that was sold to TRS or to
a receivable that Centurion did not sell to TRS, Centurion shall allocate
payments on each such Removed Account with respect to the principal balance of
such Removed Account first to the oldest principal balance of such Removed
Account.

                                       13
<PAGE>

            (b) On and after the Stop Date for a Removed Account, Centurion may
mark its books and records to indicate that such Account is a Removed Account,
but Centurion shall not (i) alter the indication referenced in clause (i) of
Subsection 2.01(c) with respect to such Removed Account unless and until such
Account becomes a Deleted Account or Centurion has taken such action as is
necessary or advisable to cause the interest of TRS in the Purchased Assets to
continue to be perfected and of first priority, or (ii) delete such Removed
Account from SCHEDULE 1 hereto or any Account Schedule.

            (c) Once a Removed Account becomes a Deleted Account, Centurion may
delete such Deleted Account from SCHEDULE 1 hereto and, upon such deletion,
shall indicate in its computer files that such Deleted Account is no longer an
Account.

                               [END OF ARTICLE II]

                                       14
<PAGE>

                                   ARTICLE III

                            CONSIDERATION AND PAYMENT

            Section 3.01. Purchase Price.

            The "PURCHASE PRICE" for the Receivables in the Initial Accounts
existing at the Initial Cut-Off Date, and the related Purchased Assets, that are
conveyed to TRS under this Agreement shall be payable on the Closing Date, in an
amount equal to 100% of the aggregate balance of the Receivables so conveyed,
adjusted to reflect such factors, if any, as Centurion and TRS mutually agree
will result in a Purchase Price determined to be the fair market value of such
Receivables and the related Purchased Assets. This computation of initial
purchase price shall assume no reinvestment in new Receivables. The Purchase
Price for the Receivables (including Receivables in Additional Accounts) and the
related Purchased Assets conveyed to TRS under this Agreement which come into
existence after the Initial Cut-Off Date (i) shall be payable on a date (the
"PURCHASE PRICE PAYMENT DATE") mutually agreed to by Centurion and TRS, but no
later than the 15th calendar day of the Monthly Period (or, if such day is not a
Business Day, the next following Business Day) following the calendar month in
which such Receivables and the related Purchased Assets are conveyed by
Centurion to TRS and (ii) shall be an amount equal to 100% of the aggregate
balance of the Receivables so conveyed, adjusted to reflect such factors, if
any, as Centurion and TRS mutually agree will result in a Purchase Price
determined to be the fair market value of such Receivables and the related
Purchased Assets.

            Notwithstanding any other provision of this Agreement, Centurion
shall not be obligated to continue to sell Receivables or other Purchased Assets
to TRS to the extent that Centurion is not paid the Purchase Price therefor as
provided herein.

            Section 3.02. Adjustments to Purchase Price. The Purchase Price
shall be reduced (a "PURCHASE PRICE ADJUSTMENT") on the Purchase Price Payment
Date with respect to any Receivable previously conveyed to TRS by Centurion
which is reduced by Centurion or the Servicer (pursuant to its customary
servicing standards and guidelines for customer service and cardmember account
relations and to give effect to rebates offered by Centurion) because of a
rebate, refund, unauthorized charge or billing error to an Obligor, because such
Receivable was created in respect of merchandise which was refused or returned
by an Obligor, or because Centurion or the Servicer processes as a credit
adjustment any uncollectible Small Balances, or if the Servicer otherwise
adjusts downward the amount of any Receivable without receiving Collections
therefor or without charging off such amount as uncollectible. The amount of
such reduction shall equal the reduction in the balance of such Receivable
resulting from the occurrence of such event. In the event that a reduction
pursuant to this Section 3.02 causes the Purchase Price to be a negative number,
Centurion agrees that, on the Purchase Price Payment Date, Centurion shall pay
or cause to be paid to TRS an amount equal to the amount by which the Purchase
Price Adjustment exceeds the unadjusted Purchase Price. Notwithstanding the
foregoing, in no event shall a Purchase Price Adjustment include adjustments
attributable to uncollectible receivables and adjustments made as part of the
Servicer's credit and collection processes. For the avoidance of doubt, Purchase
Price Adjustments shall not have the purpose or effect of protecting TRS, as
purchaser of the Purchased Assets, from credit risk in the Purchased Assets.

            Section 3.03. Use of Name, Logo and Marks. Centurion does hereby
grant to TRS a non-exclusive license to use the name "American Express Centurion
Bank" and all related

                                       15
<PAGE>

identifying trade or service marks, signs, symbols, logos, designs, servicing
software, customer lists and other intangibles in connection with the servicing
of the Receivables purchased hereunder. The license granted shall be
co-extensive with the term of the Agreement.

            Section 3.04. Servicing of Receivables. TRS is the Servicer of the
Purchased Assets pursuant to the Transfer and Servicing Agreement. TRS agrees
that Centurion shall not be responsible for the payment of any fees for
servicing the Purchased Assets sold by Centurion to TRS under this Agreement.

                              [END OF ARTICLE III]

                                       16
<PAGE>

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

            Section 4.01. Representations and Warranties of Centurion Relating
to Centurion.

            (a) Representations and Warranties. Centurion hereby represents and
warrants to, and agrees with, TRS as of the Closing Date and on each Addition
Date, that:

            (i) Organization and Good Standing. Centurion is an industrial bank
      validly existing under the laws of the State of Utah, and has, in all
      material respects, full power and authority to own its properties and
      conduct its business as presently owned or conducted, and to execute,
      deliver and perform its obligations under this Agreement.

            (ii) Due Qualification. Centurion is duly qualified to do business
      and is in good standing as a foreign corporation or other entity and has
      obtained all necessary licenses and approvals, in each jurisdiction in
      which failure to so qualify or to obtain such licenses and approvals would
      have a material adverse effect on this Agreement or the transactions
      contemplated hereby or on the ability of Centurion to perform its
      obligations under this Agreement.

            (iii) Due Authorization. The execution and delivery by Centurion of
      this Agreement and any other document or instrument delivered by Centurion
      pursuant hereto, including any Supplemental Conveyance, to which Centurion
      is a party and the consummation by Centurion of the transactions provided
      for in this Agreement and any such Supplemental Conveyance, have been duly
      authorized by Centurion by all necessary action on the part of Centurion.

            (iv) No Conflict or Violation. The execution and delivery by
      Centurion of this Agreement, the performance by Centurion of the
      transactions contemplated by this Agreement and the fulfillment by
      Centurion of the terms of this Agreement applicable to Centurion, will not
      conflict with or violate any Requirements of Law applicable to Centurion
      or conflict with, result in any breach of any of the material terms and
      provisions of, or constitute (with or without notice or lapse of time or
      both) a material default under, any indenture, contract, agreement,
      mortgage, deed of trust or other instrument to which Centurion is a party
      or by which it or its properties are bound.

            (v) No Proceedings. There are no Proceedings or investigations
      pending or, to the best knowledge of Centurion, threatened, against
      Centurion before any Governmental Authority (i) asserting the invalidity
      of this Agreement, (ii) seeking to prevent the consummation of any of the
      transactions contemplated by this Agreement, (iii) seeking any
      determination or ruling that, in the reasonable judgment of Centurion,
      would materially and adversely affect the performance by Centurion of its
      obligations under this Agreement or (iv) seeking any determination or
      ruling that, in the reasonable judgment of Centurion, would materially and
      adversely affect the validity or enforceability of this Agreement.

            (vi) All Consents. All authorizations, consents, orders or approvals
      of or registrations or declarations with any Governmental Authority
      required to be obtained, effected or given by Centurion in connection with
      the execution and delivery by Centurion

                                       17
<PAGE>

      of this Agreement and the performance by Centurion of the transactions
      contemplated by this Agreement have been duly obtained, effected or given
      and are in full force and effect.

            (b) Notice of Breach. The representations and warranties set forth
in this Section 4.01 shall survive the sale of the Purchased Assets to TRS. Upon
discovery by Centurion or TRS of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give
prompt written notice to the other party, RFC V, the Owner Trustee and the
Indenture Trustee following such discovery.

            Section 4.02. Representations and Warranties of Centurion Relating
to the Agreement and the Receivables.

      (a) Representations and Warranties. Centurion hereby represents and
warrants to TRS as of the Closing Date with respect to the Initial Accounts (and
the Receivables arising therein) and as of the related Addition Date with
respect to Additional Accounts (and the Receivables arising therein), that:

            (i) each of this Agreement and, in the case of Additional Accounts,
      the related Supplemental Conveyance constitutes a legal, valid and binding
      obligation of Centurion enforceable against Centurion in accordance with
      its terms, except as such enforceability may be limited by applicable
      Debtor Relief Laws or general principles of equity;

            (ii) (a) as of the Initial Cut-Off Date with respect to the Initial
      Accounts (and the Receivables arising thereunder), SCHEDULE 1 to this
      Agreement, as supplemented to such date, is an accurate and complete
      listing in all material respects of all the Accounts as of such applicable
      date, and the information contained therein with respect to the identity
      of such Accounts and the Receivables existing thereunder is true and
      correct in all material respects as of such applicable date and (b) as of
      the related Addition Cut-Off Date with respect to Additional Accounts (and
      the Receivables arising thereunder), SCHEDULE 1 to this Agreement, as
      supplemented to such date, is an accurate and complete listing in all
      material respects of all the Accounts as of such applicable date, and the
      information contained therein with respect to the identity of such
      Accounts and the Receivables existing thereunder is true and correct in
      all material respects as of such applicable date;

            (iii) each Receivable conveyed to TRS has been conveyed to TRS free
      and clear of any Lien (other than any Lien for municipal or other local
      taxes of Centurion if such taxes are not then due and payable or if
      Centurion is then contesting the validity thereof in good faith by
      appropriate proceedings and has set aside on its books adequate reserves
      with respect thereto);

            (iv) all authorizations, consents, orders or approvals of or
      registrations or declarations with any Governmental Authority required to
      be obtained, effected or given by Centurion in connection with the
      conveyance of Receivables to TRS have been duly obtained, effected or
      given and are in full force and effect;

            (v) this Agreement and, in the case of Additional Accounts, the
      related Supplemental Conveyance, constitutes a valid sale to TRS of all
      right, title and interest of Centurion in the Purchased Assets, and such
      sale is perfected under the UCC;

            (vi) on the applicable Selection Date, each such Account is an
      Eligible Account;

                                       18
<PAGE>

            (vii) on the applicable Selection Date, each Receivable contained in
      such Account on such applicable date and sold to TRS by Centurion is an
      Eligible Receivable;

            (viii) as of the date of the creation of any new Receivable sold to
      TRS by Centurion, such Receivable is an Eligible Receivable; and

            (ix) no selection procedures believed by Centurion to be materially
      adverse to the interests of TRS or its transferees have been used in
      selecting such Accounts.

      (b) Notice of Breach. The representations and warranties set forth in this
Section 4.02 shall survive the sale of the Purchased Assets to TRS. Upon
discovery by either Centurion or TRS of a breach of any of the representations
and warranties set forth in this Section 4.02, the party discovering such breach
shall give prompt written notice to the other party, RFC V, the Owner Trustee
and the Indenture Trustee following such discovery. Centurion hereby
acknowledges that TRS intends to rely on the representations hereunder in
connection with representations made by TRS to secured parties, assignees or
subsequent transferees, including transfers made by TRS to RFC V pursuant to the
TRS-RFC V Receivables Purchase Agreement and thereafter by RFC V to the Trust
pursuant to the Transfer and Servicing Agreement and by the Trust to the
Indenture Trustee pursuant to the Indenture, and that RFC V, the Owner Trustee
and the Indenture Trustee may enforce such representations and warranties
directly against Centurion, and Centurion hereby consents to such reliance.

            Section 4.03. Representations and Warranties of TRS. As of the
Closing Date and each Addition Date, TRS hereby represents and warrants to, and
agrees with, Centurion that:

            (a) Organization and Good Standing. TRS is a corporation duly
organized and validly existing under the laws of the State of New York, and has,
in all material respects, full power and authority to own its properties and
conduct its business as such properties are presently owned and such business is
presently conducted, and to execute, deliver and perform its obligations under
this Agreement.

            (b) Due Qualification. TRS is duly qualified to do business and is
in good standing and has obtained all necessary licenses and approvals, in each
jurisdiction in which failure to so qualify or to obtain such licenses and
approvals would have a material adverse effect on this Agreement or the
transactions contemplated hereby or on the ability of TRS to perform its
obligations under this Agreement.

            (c) Due Authorization. The execution and delivery by TRS of this
Agreement and any other document or instrument delivered pursuant hereto,
including any Supplemental Conveyance, to which RFC V is a party, and the
consummation by TRS of the transactions provided for in this Agreement and any
such Supplemental Conveyance, have been duly authorized by TRS by all necessary
company action on the part of TRS.

            (d) No Conflict or Violation. The execution and delivery by TRS of
this Agreement, the performance by TRS of the transactions contemplated by this
Agreement and the fulfillment by TRS of the terms of this Agreement applicable
to TRS, will not conflict with or violate any Requirements of Law applicable to
TRS or conflict with, result in any breach of any of the material terms and
provisions of, or constitute (with or without notice or lapse of time or both) a

                                       19
<PAGE>

material default under, any indenture, contract, agreement, mortgage, deed of
trust or other instrument to which TRS is a party or by which it or any of its
properties are bound.

            (e) No Proceedings. There are no Proceedings or investigations
pending or, to the best knowledge of TRS, threatened, against TRS, before any
Governmental Authority (i) asserting the invalidity of this Agreement, (ii)
seeking to prevent the consummation of any of the transactions contemplated by
this Agreement, (iii) seeking any determination or ruling that, in the
reasonable judgment of TRS, would materially and adversely affect the
performance by TRS of its obligations under this Agreement or (iv) seeking any
determination or ruling that, in the reasonable judgment of TRS, would
materially and adversely affect the validity or enforceability of this
Agreement.

            (f) All Consents. All authorizations, consents, orders or approvals
of or registrations or declarations with any Governmental Authority required to
be obtained, effected or given by TRS in connection with the execution and
delivery by TRS of this Agreement and the performance by TRS of the transactions
contemplated by this Agreement have been duly obtained, effected or given and
are in full force and effect.

            The representations and warranties set forth in this Section 4.03
shall survive the sale of the Purchased Assets to TRS. Upon discovery by
Centurion or TRS of a breach of any of the foregoing representations and
warranties, the party discovering such breach shall give prompt written notice
to the other party, RFC V, the Owner Trustee and the Indenture Trustee following
such discovery.

                               [END OF ARTICLE IV]

                                       20
<PAGE>
                                    ARTICLE V

                                    COVENANTS

            Section 5.01. Covenants of Centurion. Centurion hereby covenants and
agrees with TRS as follows:

            (a) Receivables Not To Be Evidenced by Instruments. Except in
connection with its enforcement or collection of an Account, Centurion will take
no action to cause any Receivable sold to TRS hereunder to be evidenced by any
instrument (as defined in the UCC), and if any Receivable is so evidenced as a
result of any action by Centurion, it shall be deemed to be a Receivable
described in Subsection 6.01(a) and shall be reassigned to Centurion in
accordance with Subsection 6.01(b).

            (b) Security Interests. Except for the conveyances hereunder,
Centurion will not sell, pledge, assign or transfer to any other Person, or take
any other action inconsistent with TRS's ownership of, the Purchased Assets, or
grant, create, incur, assume or suffer to exist any Lien arising through or
under Centurion on any Purchased Asset or any interest therein (other than any
Lien for municipal or other local taxes of Centurion if such taxes are not then
due and payable or if Centurion is then contesting the validity thereof in good
faith by appropriate proceedings and has set aside on its books adequate
reserves with respect thereto), and Centurion shall not claim any ownership
interest in any Purchased Asset and shall defend the right, title and interest
of TRS in, to and under the Purchased Assets against all claims of third parties
claiming through or under Centurion.

            (c) Account Allocations. If a Transfer Restriction Event occurs,
Centurion agrees (except as prohibited by any such order or any Requirement of
Law) to allocate and pay to TRS, after the date of such Transfer Restriction
Event, all Collections with respect to Receivables previously sold to TRS. To
the extent that it is not clear to Centurion whether collections relate to a
Receivable that was sold to TRS or to a receivable that Centurion is unable to
sell to TRS, Centurion agrees that it shall allocate payments on each Account
with respect to the principal balance of such Account first to the oldest
principal balance of such Account. Notwithstanding any cessation of the sale to
TRS of additional Receivables, Receivables sold to TRS prior to the occurrence
of the Transfer Restriction Event and Collections in respect of such Receivables
shall continue to be property of TRS available for transfer by TRS to RFC V
pursuant to the TRS-RFC V Receivables Purchase Agreement and by RFC V to the
Trust pursuant to the Transfer and Servicing Agreement.

            (d) Delivery of Collections. In the event that Centurion receives
Collections or any other amounts in respect of the Purchased Assets sold to TRS
hereunder, Centurion agrees to pay to TRS (or to RFC V, the Servicer or the
Indenture Trustee if TRS so directs) all such Collections and other amounts
promptly after receipt thereof.

            (e) Notice of Liens. Centurion shall notify TRS promptly after
becoming aware of any Lien arising through or under Centurion on any Purchased
Asset other than the conveyances hereunder.

            (f) Documentation of Transfer. Centurion shall timely file in all
appropriate filing offices the documents which are necessary or advisable to
perfect and maintain the perfection of the sale of the Purchased Assets to TRS.

                                       21
<PAGE>

            (g) Account Agreements and Guidelines. Subject to compliance with
all Requirements of Law, Centurion may effect or permit a change to the terms
and provisions of the Account Agreements or the Account Guidelines applicable to
the Accounts in any respect (including the calculation of the amount or the
timing of charge-offs and other fees to be assessed thereon) only if such change
is made applicable to any comparable segment of charge accounts owned by
Centurion which have characteristics the same as, or substantially similar to,
the Accounts that are the subject of such change, except as otherwise restricted
by an endorsement, sponsorship, or other agreement between Centurion and an
unrelated third party or by the terms of the Account Agreements. Notwithstanding
the above, unless required by Requirements of Law, Centurion will not take any
action with respect to such Account Agreements or such Account Guidelines which,
at the time of such action, Centurion reasonably believes will have a material
adverse effect on TRS.

            (h) Name and Type and Jurisdiction of Organization. Centurion shall
not change its name or its type or jurisdiction of organization without
previously having delivered to TRS an opinion of counsel to the effect that all
actions have been taken, and all filings have been made, as are necessary to
continue and maintain the first-priority perfected ownership interest of TRS in
the Purchased Assets.

            (i) Annual Opinion. On or before March 31st of each calendar year,
commencing March 31, 2006, Centurion shall deliver to TRS, with a copy to the
Indenture Trustee, an opinion of counsel to the effect that (i) no further
action with respect to the recording or filing of any financing statements, any
amendments to financing statements, or any other documents or filings is then
necessary to perfect the ownership interest of TRS in the Purchased Assets, and
(ii) no further action with respect to the recording or filing of any financing
statements, any amendments to financing statements, or any other documents or
filings will be necessary prior to March 31st of the next calendar year to
perfect the ownership interest of TRS in the Purchased Assets or stating what
such filings will be necessary prior to such March 31st.

                               [END OF ARTICLE V]

                                       22
<PAGE>

                                   ARTICLE VI

                              REPURCHASE OBLIGATION

            Section 6.01. Reassignment of Ineligible Receivables.

            (a) In the event any representation or warranty under Subsection
4.02(a)(ii), (iii), (iv), (vi), (vii), (viii) or (ix) is not true and correct in
any material respect as of the date specified therein with respect to any
Receivable or the related Account and as a result of such breach TRS is required
under Subsection 6.01(a) of the TRS-RFC V Receivables Purchase Agreement to
accept reassignment of such Receivables previously sold by Centurion to TRS
pursuant to this Agreement, Centurion shall accept reassignment of such
Receivables on the terms and conditions set forth in Subsection 6.01(b).

            (b) Centurion shall accept reassignment of any Receivables described
in Subsection 6.01(a) from TRS on the date on which such Receivables are
reassigned to TRS pursuant to Subsection 6.01(a) of the TRS-RFC V Receivables
Purchase Agreement, and shall pay for such reassigned Receivables by paying to
TRS in immediately available funds an amount equal to the unpaid balance of such
Receivables. Upon reassignment of such Receivables, TRS shall automatically and
without further action sell, transfer, assign, set-over and otherwise convey to
Centurion, without recourse, representation or warranty, all the right, title
and interest of TRS in and to such Receivables, all Recoveries allocable to such
Receivables, all monies due or to become due and all amounts received or
receivable with respect thereto, all Collections with respect thereto, and all
proceeds (including "proceeds" as defined in the UCC) thereof. Such reassigned
Receivables shall be treated by TRS as collected in full as of the date on which
they were reassigned. TRS shall execute such documents and instruments of
transfer or assignment and take such other actions as shall reasonably be
requested by Centurion to effect the conveyance of such Receivables and other
property pursuant to this Subsection.

            Section 6.02. Reassignment of Other Receivables.

            (a) In the event any representation or warranty set forth in
Subsection 4.01(a)(i) or (iii) or Subsection 4.02(a)(i) or (v) is not true and
correct in any material respect and as a result of such breach TRS is required
under Subsection 6.02(b) of the TRS-RFC V Receivables Purchase Agreement to
accept a reassignment of all of the Receivables previously sold by Centurion to
TRS pursuant to this Agreement, Centurion shall accept a reassignment of such
Receivables on the terms and conditions set forth in Subsection 6.02(b).

            (b) Centurion shall accept reassignment of any Receivables described
in Subsection 6.02(a) from TRS on the date on which such Receivables are
reassigned to TRS, and shall pay for such reassigned Receivables by paying to
TRS, not later than 11:00 a.m., New York City time, on the First Note Transfer
Date following the Monthly Period in which such reassignment obligation arises,
an amount equal to the unpaid balance of such Receivables. Upon reassignment of
such Receivables, TRS shall automatically and without further action sell,
transfer, assign, set-over and otherwise convey to Centurion, without recourse,
representation or warranty, all the right, title and interest of TRS in and to
such Receivables, all Recoveries allocable to such Receivables, all monies due
or to become due and all amounts received or receivable with respect thereto,
all Collections with respect thereto, and all proceeds (including "proceeds" as
defined in the UCC) thereof. Such reassigned Receivables shall be treated by TRS
as collected in full as of the date on

                                       23
<PAGE>

which they were reassigned. TRS shall execute such documents and instruments of
transfer or assignment and take such other actions as shall reasonably be
requested by Centurion to effect the conveyance of such Receivables and other
property pursuant to this Subsection.

                               [END OF ARTICLE VI]

                                       24
<PAGE>

                                   ARTICLE VII

                              CONDITIONS PRECEDENT

            Section 7.01. Conditions to TRS's Obligations Regarding Initial
Receivables. The obligations of TRS to purchase the Receivables in the Initial
Accounts on the Closing Date shall be subject to the satisfaction of the
following conditions:

            (a) all representations and warranties of Centurion contained in
this Agreement shall be true and correct on the Closing Date with the same
effect as though such representations and warranties had been made on such date
(except that, to the extent any such representation or warranty expressly
relates to an earlier date, such representation or warranty was true and correct
on such earlier date);

            (b) all information concerning the Initial Accounts provided to TRS
shall be true and correct as of the Initial Cut-Off Date in all material
respects;

            (c) Centurion shall have (i) delivered or caused to be delivered to
TRS a true and correct Account Schedule with respect to the Initial Accounts,
and (ii) performed all other obligations required to be performed by Centurion
on or before the Closing Date by the provisions of this Agreement;

            (d) Centurion shall have recorded and filed, at its expense, any
financing statement with respect to the Purchased Assets meeting the
requirements of applicable law in such manner and in such jurisdictions as are
necessary to perfect the sale of the Purchased Assets from Centurion to TRS, and
shall have provided delivery of a file-stamped copy of such financing statements
or other evidence of such filings to TRS; and

            (e) all corporate and legal proceedings and all instruments in
connection with the transactions contemplated by this Agreement shall be
satisfactory in form and substance to TRS, and TRS shall have received from
Centurion copies of all documents (including records of corporate proceedings)
relevant to the transactions herein contemplated as TRS may reasonably have
requested.

            Section 7.02. Conditions Precedent to Centurion's Obligations. The
obligations of Centurion to sell the Receivables in the Initial Accounts on the
Closing Date shall be subject to the satisfaction of the following conditions:

            (a) all representations and warranties of TRS contained in this
Agreement shall be true and correct on the Closing Date with the same effect as
though such representations and warranties had been made on such date (except
that, to the extent any such representation or warranty expressly relates to an
earlier date, such representation or warranty was true and correct on such
earlier date);

            (b) payment or provision for payment of the Purchase Price in
accordance with Section 3.01 hereof shall have been made; and

            (c) all company and legal proceedings and all instruments in
connection with the transactions contemplated by this Agreement shall be
satisfactory in form and substance to Centurion, and Centurion shall have
received from TRS copies of all documents (including records

                                       25
<PAGE>

of company proceedings) relevant to the transactions herein contemplated as
Centurion may reasonably have requested.

                              [END OF ARTICLE VII]

                                       26
<PAGE>
                                  ARTICLE VIII

                          TERM AND PURCHASE TERMINATION

            Section 8.01. Term. This Agreement shall commence as of the date of
execution and delivery hereof and shall continue at least until the earliest of
(i) the termination of the Trust as provided in Article IX of the Trust
Agreement, (ii) the termination of the TRS-RFC V Receivables Purchase Agreement
and (iii) the execution of a receivables purchase agreement between Centurion
and American Express Receivables Financing Corporation VI LLC or other
wholly-owned subsidiary special purpose entity, pursuant to which Centurion will
sell receivables to RFC VI or such other entity, and RFC VI or such other entity
will convey such receivables to the Trust. Thereafter this Agreement may be
terminated by the mutual agreement of the parties hereto.

            Section 8.02. Purchase Termination. If (i) Centurion shall file a
petition or commence a Proceeding (A) to take advantage of any bankruptcy,
conservatorship, receivership, insolvency, or similar laws or (B) for the
appointment of a trustee, conservator, receiver, liquidator, or similar official
for or relating to Centurion or all or substantially all of its property, (ii)
Centurion shall consent or fail to object to any such petition filed or
Proceeding commenced against or with respect to it or all or substantially all
of its property, or any such petition or Proceeding shall not have been
dismissed within sixty (60) days of its filing or commencement, or a court,
agency, or other supervisory authority with jurisdiction shall have decreed or
ordered relief with respect to any such petition or Proceeding, (iii) Centurion
shall be unable, or shall admit in writing its inability, to pay its debts
generally as they become due, (iv) Centurion shall make an assignment for the
benefit of its creditors or (v) Centurion shall voluntarily suspend payment of
its obligations (each, an "INSOLVENCY EVENT"); then Centurion shall immediately
cease to sell Receivables to TRS and shall promptly give notice to TRS, RFC V,
the Owner Trustee and the Indenture Trustee of such Insolvency Event.
Notwithstanding any cessation of the sale to TRS of additional Receivables,
Receivables sold to TRS prior to the occurrence of such Insolvency Event and
Collections in respect of such Receivables shall continue to be property of TRS
available for transfer by TRS to RFC V pursuant to the TRS-RFC V Receivables
Purchase Agreement and by RFC V to the Trust pursuant to the Transfer and
Servicing Agreement. To the extent that it is not clear to Centurion whether
collections relate to a Receivable that was sold to TRS or to a receivable that
Centurion has not sold to TRS, Centurion agrees that it shall allocate payments
on each Account with respect to the principal balance of such Account first to
the oldest principal balance of such Account.

                              [END OF ARTICLE VIII]

                                       27
<PAGE>

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

            Section 9.01. Amendment. This Agreement may not be changed orally,
but only by an instrument in writing signed by TRS and Centurion in accordance
with this Section 9.01; provided, however, that no amendment shall be effective
unless written confirmation has been received by TRS that such amendment will
not result in the reduction or withdrawal of the respective ratings of any Note
Rating Agency for any securities issued by the Trust; provided, further, that
TRS shall have delivered an Officer's Certificate of TRS, dated the date of such
action, stating that TRS reasonably believes that such action will not result in
an Event of Default or an Early Amortization Event. Any conveyance (including
any Supplemental Conveyance) or reassignment executed in accordance with the
provisions hereof shall not be considered to be an amendment to this Agreement.
A copy of any amendment to this Agreement shall be sent to each Note Rating
Agency.

            Section 9.02. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            Section 9.03. Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by certified mail, return receipt requested
and postage prepaid, to (a) in the case of Centurion, American Express Centurion
Bank, 4315 South 2700 West, Salt Lake City, Utah 84184, Attention: President
(facsimile: 801-945-4075), (b) in the case of TRS, American Express Travel
Related Services Company, Inc., 200 Vesey Street, New York, New York 10285,
Attention: Secretary (facsimile: (212) 619-9261), (c) in the case of RFC V,
American Express Receivables Financing Corporation V LLC, 200 Vesey Street, Room
507A, New York, New York 10285, Attention: President (facsimile: 212-640-2417),
(d) in the case of the Indenture Trustee, The Bank of New York, 101 Barclay
Street, Floor 8 West, New York, New York 10286, Attention: Asset Backed Unit
(facsimile: 212-815-5999), and (e) in the case of the Owner Trustee, Wilmington
Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600,
Attention: Corporate Trust Administration (facsimile: 302-636-4140); or, as to
each party, at such other address as shall be designated by such party in a
written notice to each other party in accordance with this Section 9.03.

            Section 9.04. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid, then such covenants, agreements, provisions,
or terms shall be deemed severable from the remaining covenants, agreements,
provisions, and terms of this Agreement and shall in no way affect the validity
or enforceability of such remaining covenants, agreements, provisions and terms
of this Agreement.

            Section 9.05. Assignment. Notwithstanding anything to the contrary
contained herein, other than TRS's assignment of its right, title, and interest
in, to, and under this Agreement to RFC V as contemplated by the TRS-RFC V
Receivables Purchase Agreement and Section 9.06

                                       28
<PAGE>

hereof, this Agreement may not be assigned by the parties hereto; provided,
however, that Centurion shall have the right to assign its right, title and
interest in, to and under this Agreement to (a) any successor by merger assuming
this Agreement or (b) to any other entity; provided, further, that (x) in the
case of an assignment pursuant to clauses (a) and (b), Centurion has given ten
(10) days prior notice to TRS, RFC V, the Owner Trustee, the Indenture Trustee
and each Note Rating Agency, and (y) in the case of an assignment pursuant to
clause (b), written confirmation has been received by Centurion and TRS that
such assignment will not result in the reduction or withdrawal of the respective
ratings of any Note Rating Agency for any securities issued by the Trust.

            Section 9.06. Acknowledgement and Agreement of Centurion. By
execution below, Centurion expressly acknowledges and agrees that all of TRS's
right, title, and interest in, to, and under this Agreement, including all of
TRS's right, title, and interest in and to the Purchased Assets, may be assigned
by TRS to RFC V, by RFC V to the Trust and by the Trust to the Indenture
Trustee, and Centurion consents to such assignments. Centurion further agrees
that notwithstanding any claim, counterclaim, right of setoff or defense which
it may have against TRS, due to a breach by TRS of this Agreement or for any
other reason, and notwithstanding the bankruptcy of TRS or any other event
whatsoever, Centurion shall not assert any claim on or any interest in the
Purchased Assets or take any action which would reduce or delay receipt by RFC
V, the Trust or the Indenture Trustee of Collections with respect to the
Purchased Assets. Additionally, Centurion agrees that any amounts payable by
Centurion to TRS hereunder which are to be paid by TRS to RFC V and by RFC V to
the Trust, the Indenture Trustee or the Servicer shall be paid by Centurion
directly to RFC V, the Trust, the Indenture Trustee or the Servicer, as
applicable, as assignee (or the agent of an assignee) of TRS.

            Section 9.07. Further Assurances. TRS and Centurion agree to do and
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the other party, RFC V, the
Trust or the Indenture Trustee more fully to effect the purposes of this
Agreement, including the execution of any financing statements or amendments
thereto or equivalent documents relating to the Purchased Assets for filing
under the provisions of the UCC or other law of any applicable jurisdiction.

            Section 9.08. No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of TRS or Centurion, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exhaustive of any rights, remedies,
powers and privileges provided by law.

            Section 9.09.     Counterparts. This Agreement may be executed in
two or more counterparts (and by different parties on separate counterparts),
each of which shall be an original, but all of which together shall
constitute one and the same instrument.

            Section 9.10. Binding; Third-Party Beneficiaries. This Agreement
will inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. RFC V, the Trust, the Owner Trustee
and the Indenture Trustee shall be considered third-party beneficiaries of this
Agreement.

                                       29
<PAGE>

            Section 9.11. Merger and Integration. Except as specifically stated
otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings,
written or oral, are superseded by this Agreement. This Agreement may not be
modified, amended, waived or supplemented except as provided herein.

            Section 9.12. Headings. The headings are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

            Section 9.13. Schedules and Exhibits. The schedules and exhibits
attached hereto and referred to herein shall constitute a part of this Agreement
and are incorporated into this Agreement for all purposes.

            Section 9.14. Survival of Representations and Warranties. All
representations, warranties and agreements contained in this Agreement or
contained in any Supplemental Conveyance shall remain operative and in full
force and effect and shall survive conveyance of the Purchased Assets by TRS to
RFC V pursuant to the TRS-RFC V Receivables Purchase Agreement, by RFC V to the
Trust pursuant to the Transfer and Servicing Agreement and by the Trust to the
Indenture Trustee pursuant to the Indenture.

            Section 9.15. Nonpetition Covenant. Notwithstanding any prior
termination of this Agreement, Centurion agrees that at no time shall it
commence, or join in commencing, a bankruptcy case or other insolvency or
similar proceeding under the laws of any jurisdiction against TRS, RFC V or the
Trust.

                               [END OF ARTICLE IX]

                                       30
<PAGE>

            IN WITNESS WHEREOF, TRS and Centurion have caused this Receivables
Purchase Agreement to be duly executed by their respective officers as of the
date first above written.

                                    AMERICAN EXPRESS TRAVEL RELATED SERVICES
                                       COMPANY, INC.

                                    By:  /s/ David L. Yowan
                                         --------------------------------------
                                         Name: David L. Yowan
                                         Title: Treasurer

                                    AMERICAN EXPRESS CENTURION BANK

                                    By:  /s/ Catherine Hogan
                                         --------------------------------------
                                         Name: Catherine Hogan
                                         Title: Chief Financial Officer

<PAGE>

                                                                       EXHIBIT A

           FORM OF AGGREGATE ADDITION ACCOUNT SUPPLEMENTAL CONVEYANCE

                         (As required by Section 2.02 of
                       the Receivables Purchase Agreement)

            SUPPLEMENTAL CONVEYANCE No. [___], dated as of [__________], by and
between AMERICAN EXPRESS CENTURION BANK, a Utah industrial bank (together with
its permitted successors and assigns, "CENTURION"), and AMERICAN EXPRESS TRAVEL
RELATED SERVICES COMPANY, INC., a New York corporation (together with its
permitted successors and assigns, "TRS"), pursuant to the Receivables Purchase
Agreement referred to below.

                              W I T N E S S E T H:

            WHEREAS, Centurion and TRS are parties to an Amended and Restated
Receivables Purchase Agreement, dated as of January 24, 2007 (hereinafter as
such agreement may have been, or may from time to time be, amended, supplemented
or otherwise modified, the "RECEIVABLES PURCHASE AGREEMENT");

            WHEREAS, pursuant to the Receivables Purchase Agreement, Centurion
wishes to designate Aggregate Addition Accounts to be included as Accounts and
Centurion wishes to convey its right, title and interest in the Receivables of
such Aggregate Addition Accounts, whether existing at the Addition Cut-Off Date
or thereafter created, to TRS pursuant to the Receivables Purchase Agreement;
and

            WHEREAS, TRS is willing to accept such designation and conveyance
subject to the terms and conditions hereof.

            NOW, THEREFORE, Centurion and TRS hereby agree as follows:

            1. Defined Terms. All capitalized terms used herein shall have the
meanings ascribed to them in the Receivables Purchase Agreement unless otherwise
defined herein.

            "Addition Cut-Off Date" shall mean, with respect to the Aggregate
Addition Accounts, the opening of business on [__________].

            "Addition Date" shall mean, with respect to the Aggregate
Addition Accounts, [__________].

            "Additional Purchased Assets" shall have the meaning set forth in
Subsection 3(a).

            "Aggregate Addition Accounts" shall mean the Aggregate Addition
Accounts, as defined in the Receivables Purchase Agreement, that are designated
hereby and listed on SCHEDULE 1 hereto.

                                      A-1
<PAGE>

            "Selection Date" shall mean [(i)] for the added accounts with the
code designation "[__]," the close of business on the cycle billing date for
such added accounts occurring in the period beginning on the close of business
on [________] and ending at the close of business on [_______] [and (ii) for the
added accounts with the code designation "[__]," the close of business on the
cycle billing date for such added accounts occurring in the period beginning on
the close of business on [________] and ending at the close of business on
[_________]].

            2. Designation of Aggregate Addition Accounts. Centurion delivers or
causes to be delivered herewith an Account Schedule containing a true and
complete list of the Aggregate Addition Accounts. Such Account Schedule is
incorporated into and made part of this Supplemental Conveyance, shall be
SCHEDULE 1 to this Supplemental Conveyance and shall supplement SCHEDULE 1 to
the Receivables Purchase Agreement.

            3. Conveyance of Receivables.

            (a) Centurion does hereby sell, transfer, assign, set over and
otherwise convey to TRS, without recourse except as provided in the Receivables
Purchase Agreement, all of its right, title and interest, whether now owned or
hereafter acquired, in, to and under the Receivables arising in the Aggregate
Addition Accounts (including Related Accounts with respect to such Aggregate
Addition Accounts), existing at the Addition Cut-Off Date and thereafter
created, all Recoveries allocable to such Receivables, all monies due or to
become due and all amounts received or receivable with respect thereto, all
Collections with respect thereto, and all proceeds (including "proceeds" as
defined in the UCC) thereof (collectively, the "ADDITIONAL PURCHASED ASSETS").
As purchaser of the Additional Purchased Assets, TRS shall have the right to
pledge, assign, transfer, sell and exercise full control over all the Additional
Purchased Assets, subject to the interests of any subsequent purchaser or
assignee of the Additional Purchased Assets.

            (b) If necessary, Centurion shall (i) record and file, at its own
expense, any financing statements (and amendments with respect to such financing
statements when applicable) with respect to the Additional Purchased Assets
meeting the requirements of applicable state law in such manner and in such
jurisdictions as are necessary to perfect, and maintain perfection of, the sale
of the Additional Purchased Assets to TRS, (ii) cause such financing statements
and amendments to name Centurion, as seller, and TRS, as purchaser, of the
Additional Purchased Assets and (iii) to deliver a file-stamped copy of such
financing statements or amendments or other evidence of such filings to TRS as
soon as is practicable after filing.

            (c) Centurion shall, at its own expense, on or prior to the Addition
Date, indicate in its books and records (including its computer files) that all
Receivables created in connection with the Aggregate Addition Accounts and the
related Additional Purchased Assets have been sold to TRS pursuant to this
Supplemental Conveyance.

            (d) The parties hereto intend that the conveyance of Centurion's
right, title and interest in and to the Additional Purchased Assets shall
constitute an absolute sale, conveying good title free and clear of any liens,
claims, encumbrances or rights of others from Centurion to TRS. It is the
intention of the parties hereto that the arrangements with respect to the
Additional Purchased Assets shall constitute a purchase and sale of such
Additional Purchased Assets and not a loan. In the event, however, that it were
to be determined that the transactions evidenced hereby constitute a loan and
not a purchase and sale, it is the intention of the parties hereto that this
Supplemental Conveyance

                                      A-2
<PAGE>

shall constitute a security agreement under applicable law, and that Centurion
shall be deemed to have granted, and Centurion does hereby grant, to TRS a first
priority perfected security interest in all of Centurion's right, title and
interest, whether now owned or hereafter acquired, in, to and under the
Additional Purchased Assets to secure the obligations of Centurion hereunder and
under the Receivables Purchase Agreement.

            (e) To the extent that Centurion retains any interest in the
Additional Purchased Assets, Centurion hereby grants to the Trust and the
Indenture Trustee a security interest in all of Centurion's right, title and
interest, whether now owned or hereafter acquired, in, to and under the
Additional Purchased Assets, to secure the performance of all of the obligations
of Centurion hereunder and under the Receivables Purchase Agreement. With
respect to such security interest and such collateral, each of the Trust and the
Indenture Trustee shall have all of the rights that it has under the Transfer
and Servicing Agreement. Each of the Trust and the Indenture Trustee shall also
have all of the rights of a secured creditor under the UCC.

            4. Acceptance by TRS. TRS hereby acknowledges that, prior to or
simultaneously with the execution and delivery of this Supplemental Conveyance,
Centurion delivered or caused to be delivered to TRS the Account Schedule
described in Section 2 of this Supplemental Conveyance with respect to all
Aggregate Addition Accounts.

            5. Representations and Warranties of Centurion. Centurion hereby
acknowledges on the Addition Date that it makes the representations and
warranties in Sections 4.01 and 4.02 of the Receivables Purchase Agreement with
respect to the Aggregate Addition Accounts.

            6. Ratification of the Receivables Purchase Agreement. The
Receivables Purchase Agreement is hereby ratified, and all references to the
"RECEIVABLES PURCHASE AGREEMENT," to "THIS AGREEMENT" and "HEREIN" shall be
deemed from and after the Addition Date to be a reference to the Receivables
Purchase Agreement as supplemented and amended by this Supplemental Conveyance.
Except as expressly amended hereby, all the representations, warranties, terms,
covenants and conditions of the Receivables Purchase Agreement shall remain
unamended and shall continue to be, and shall remain, in full force and effect
in accordance with its terms and, except as expressly provided herein, shall not
constitute or be deemed to constitute a waiver of compliance with or consent to
non-compliance with any term or provision of the Receivables Purchase Agreement.

            7.    Counterparts. This Supplemental Conveyance may be executed
in any number of counterparts, all of which taken together shall constitute
one and the same instrument.

            8. GOVERNING LAW. THIS SUPPLEMENTAL CONVEYANCE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      A-3
<PAGE>

            IN WITNESS WHEREOF, Centurion and TRS have caused this Supplemental
Conveyance to be duly executed and delivered by their respective duly authorized
officers on the date first above written.

                                    AMERICAN EXPRESS CENTURION BANK

                                    By:
                                         --------------------------------------
                                         Name:
                                         Title:

                                    AMERICAN EXPRESS TRAVEL RELATED SERVICES
                                       COMPANY, INC.

                                    By:
                                         --------------------------------------
                                         Name:
                                         Title:

                                      A-4
<PAGE>

                                                                   Schedule 1 to
                                                                    Supplemental
                                                                      Conveyance

                           AGGREGATE ADDITION ACCOUNTS

                                      A-5
<PAGE>

                                                                       EXHIBIT B

                FORM OF SUPPLEMENTAL CONVEYANCE FOR NEW ACCOUNTS

                         (As required by Section 2.03 of
                       the Receivables Purchase Agreement)

            SUPPLEMENTAL CONVEYANCE No. [___], dated as of the Addition Date set
forth below, by and between AMERICAN EXPRESS CENTURION BANK, a Utah industrial
bank (together with its permitted successors and assigns, "CENTURION"), and
AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., a New York corporation
(together with its permitted successors and assigns, "TRS"), pursuant to the
Receivables Purchase Agreement referred to below.

                              W I T N E S S E T H:

            WHEREAS, Centurion and TRS are parties to an Amended and Restated
Receivables Purchase Agreement, dated as of January 24, 2007 (hereinafter as
such agreement may have been, or may from time to time be, amended, supplemented
or otherwise modified, the "RECEIVABLES PURCHASE AGREEMENT");

            WHEREAS, pursuant to the Receivables Purchase Agreement, Centurion
wishes to designate New Accounts to be included as Accounts and Centurion wishes
to convey its right, title and interest in the Receivables of such New Accounts,
whether existing at the Addition Cut-Off Date or thereafter created, to TRS
pursuant to the Receivables Purchase Agreement; and

            WHEREAS, TRS is willing to accept such designation and conveyance
subject to the terms and conditions hereof.

            NOW, THEREFORE, Centurion and TRS hereby agree as follows:

            1.    Defined Terms. All capitalized terms used herein shall have
the meanings ascribed to them in the Receivables Purchase Agreement unless
otherwise defined herein.

            "Addition Cut-Off Date" shall mean, with respect to each New
Account, the date on which such New Account is originated.

            "Addition Date" shall mean, with respect to the New Accounts,
[---------].

            "Additional Purchased Assets" shall have the meaning set forth in
Subsection 3(a).

            "New Account Delivery Date" shall mean the fifteenth calendar day of
the month (or, if such fifteenth calendar day is not a Business Day, the next
succeeding Business Day) following the Monthly Period in which the Addition Date
occurs.

                                      B-1
<PAGE>

            "New Accounts" shall mean the New Accounts, as defined in the
Receivables Purchase Agreement, that are designated hereby and to be listed on
SCHEDULE 1 hereto.

            "Selection Date" shall mean, with respect to each New Account, the
date on which such New Account is originated.

            2. Designation of New Accounts. The New Accounts are designated
hereby. On the New Account Delivery Date, Centurion shall deliver or cause to be
delivered an Account Schedule containing a true and complete list of the New
Accounts. Such Account Schedule is incorporated into and made part of this
Supplemental Conveyance, shall be SCHEDULE 1 to this Supplemental Conveyance and
shall supplement SCHEDULE 1 to the Receivables Purchase Agreement.

            3. Conveyance of Receivables.

            (a) Centurion does hereby sell, transfer, assign, set over and
otherwise convey to TRS, without recourse except as provided in the Receivables
Purchase Agreement, all of its right, title and interest, whether now owned or
hereafter acquired, in, to and under the Receivables arising in the New Accounts
(including Related Accounts with respect to such New Accounts), existing at the
applicable Addition Cut-Off Date of each New Account and thereafter created, all
Recoveries allocable to such Receivables, all monies due or to become due and
all amounts received or receivable with respect thereto, all Collections with
respect thereto, and all proceeds (including "proceeds" as defined in the UCC)
thereof (collectively, the "ADDITIONAL PURCHASED ASSETS"). As purchaser of the
Additional Purchased Assets, TRS shall have the right to pledge, assign,
transfer, sell and exercise full control over all the Additional Purchased
Assets, subject to the interests of any subsequent purchaser or assignee of the
Additional Purchased Assets.

            (b) If necessary, Centurion shall (i) record and file, at its own
expense, any financing statements (and amendments with respect to such financing
statements when applicable) with respect to the Additional Purchased Assets
meeting the requirements of applicable state law in such manner and in such
jurisdictions as are necessary to perfect, and maintain perfection of, the sale
of the Additional Purchased Assets TRS, (ii) cause such financing statements and
amendments to name Centurion, as seller, and TRS, as purchaser, of the
Additional Purchased Assets and (iii) to deliver a file-stamped copy of such
financing statements or amendments or other evidence of such filings to TRS as
soon as is practicable after filing.

            (c) Centurion shall, at its own expense, on or prior to the Addition
Date, indicate in its books and records (including its computer files) that all
Receivables created in connection with the New Accounts and the related
Additional Purchased Assets have been sold to TRS pursuant to this Supplemental
Conveyance.

            (d) The parties hereto intend that the conveyance of Centurion's
right, title and interest in and to the Additional Purchased Assets shall
constitute an absolute sale, conveying good title free and clear of any liens,
claims, encumbrances or rights of others from Centurion to TRS. It is the
intention of the parties hereto that the arrangements with respect to the
Additional Purchased Assets shall constitute a purchase and sale of such
Additional Purchased Assets and not a loan. In the event, however, that it were
to be determined that the transactions evidenced hereby constitute a loan and
not a purchase and sale, it is the intention of the parties hereto that this
Supplemental Conveyance shall constitute a security agreement under applicable
law, and that Centurion shall be deemed to have

                                      B-2
<PAGE>

granted, and Centurion does hereby grant, to TRS a first priority perfected
security interest in all of Centurion's right, title and interest, whether now
owned or hereafter acquired, in, to and under the Additional Purchased Assets to
secure the obligations of Centurion hereunder and under the Receivables Purchase
Agreement.

            (e) To the extent that Centurion retains any interest in the
Additional Purchased Assets, Centurion hereby grants to the Trust and the
Indenture Trustee a security interest in all of Centurion's right, title and
interest, whether now owned or hereafter acquired, in, to and under the
Additional Purchased Assets, to secure the performance of all of the obligations
of Centurion hereunder and under the Receivables Purchase Agreement. With
respect to such security interest and such collateral, each of the Trust and the
Indenture Trustee shall have all of the rights that it has under the Transfer
and Servicing Agreement. Each of the Trust and the Indenture Trustee shall also
have all of the rights of a secured creditor under the UCC.

            4. Acceptance by TRS. TRS hereby acknowledges that, on the New
Account Delivery Date, Centurion has agreed to deliver or cause to be delivered
to TRS the Account Schedule described in Section 2 of this Supplemental
Conveyance with respect to all New Accounts.

            5.    Representations and Warranties of Centurion. Centurion
hereby acknowledges on the Addition Date that it makes the representations
and warranties in Sections 4.01 and 4.02 of the Receivables Purchase
Agreement with respect to the New Accounts.

            6. Ratification of the Receivables Purchase Agreement. The
Receivables Purchase Agreement is hereby ratified, and all references to the
"RECEIVABLES PURCHASE AGREEMENT," to "THIS AGREEMENT" and "HEREIN" shall be
deemed from and after the Addition Date to be a reference to the Receivables
Purchase Agreement as supplemented and amended by this Supplemental Conveyance.
Except as expressly amended hereby, all the representations, warranties, terms,
covenants and conditions of the Receivables Purchase Agreement shall remain
unamended and shall continue to be, and shall remain, in full force and effect
in accordance with its terms and, except as expressly provided herein, shall not
constitute or be deemed to constitute a waiver of compliance with or consent to
non-compliance with any term or provision of the Receivables Purchase Agreement.

            7.    Counterparts. This Supplemental Conveyance may be executed
in any number of counterparts, all of which taken together shall constitute
one and the same instrument.

            8. GOVERNING LAW. THIS SUPPLEMENTAL CONVEYANCE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      B-3
<PAGE>
            IN WITNESS WHEREOF, Centurion and TRS have caused this Supplemental
Conveyance to be duly executed and delivered by their respective duly authorized
officers on the date first above written.

                                    AMERICAN EXPRESS CENTURION BANK

                                    By:
                                         --------------------------------------
                                         Name:
                                         Title:

                                    AMERICAN EXPRESS TRAVEL RELATED SERVICES
                                       COMPANY, INC.

                                    By:
                                         --------------------------------------
                                         Name:
                                         Title:

                                      B-4
<PAGE>

                                                                   Schedule 1 to
                                                                    Supplemental
                                                                      Conveyance

                                  NEW ACCOUNTS

                                      I-1
<PAGE>

                                                                      Schedule 1

                                LIST OF ACCOUNTS

                                      I-2
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>            <C>                                                          <C>
                                    ARTICLE I
                                   DEFINITIONS
Section 1.01.  Definitions.................................................    1

Section 1.02.  Other Definitional Provisions...............................    9

                                   ARTICLE II
                     PURCHASE AND CONVEYANCE OF RECEIVABLES
Section 2.01.  Purchase....................................................   10

Section 2.02.  Addition of Aggregate Addition Accounts.....................   11

Section 2.03.  Addition of New Accounts....................................   12

Section 2.04.  Removal and Deletion of Accounts............................   13

                                   ARTICLE III
                            CONSIDERATION AND PAYMENT
Section 3.01.  Purchase Price..............................................   15

Section 3.02.  Adjustments to Purchase Price...............................   15

Section 3.03.  Use of Name, Logo and Marks.................................   15

Section 3.04.  Servicing of Receivables....................................   16

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES
Section 4.01.  Representations and Warranties of Centurion
               Relating to Centurion.......................................   17

Section 4.02.  Representations and Warranties of Centurion
               Relating to the Agreement and the Receivables...............   18

Section 4.03.  Representations and Warranties of TRS.......................   19

                                    ARTICLE V
                                    COVENANTS
Section 5.01.  Covenants of Centurion......................................   21

                                   ARTICLE VI
                              REPURCHASE OBLIGATION
Section 6.01.  Reassignment of Ineligible Receivables......................   23

Section 6.02.  Reassignment of Other Receivables...........................   23

                                   ARTICLE VII
                              CONDITIONS PRECEDENT
Section 7.01.  Conditions to TRS's Obligations Regarding Initial
               Receivables.................................................   25

Section 7.02.  Conditions Precedent to Centurion's Obligations.............   25
</TABLE>

                                       i
<PAGE>

                                TABLE OF CONTENTS

                                    CONTINUED
<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>            <C>                                                          <C>
                                  ARTICLE VIII
                          TERM AND PURCHASE TERMINATION
Section 8.01.  Term........................................................   27

Section 8.02.  Purchase Termination........................................   27

                                   ARTICLE IX
                            MISCELLANEOUS PROVISIONS
Section 9.01.  Amendment...................................................   28

Section 9.02.  Governing Law...............................................   28

Section 9.03.  Notices.....................................................   28

Section 9.04.  Severability of Provisions..................................   28

Section 9.05.  Assignment..................................................   28

Section 9.06.  Acknowledgement and Agreement of Centurion..................   29

Section 9.07.  Further Assurances..........................................   29

Section 9.08.  No Waiver; Cumulative Remedies..............................   29

Section 9.09.  Counterparts................................................   29

Section 9.10.  Binding; Third-Party Beneficiaries..........................   29

Section 9.11.  Merger and Integration......................................   30

Section 9.12.  Headings....................................................   30

Section 9.13.  Schedules and Exhibits......................................   30

Section 9.14.  Survival of Representations and Warranties..................   30

Section 9.15.  Nonpetition Covenant........................................   30

            EXHIBIT A: FORM OF SUPPLEMENTAL CONVEYANCE FOR AGGREGATE
         ADDITION ACCOUNTS.................................................  A-1

            EXHIBIT B: FORM OF SUPPLEMENTAL CONVEYANCE FOR NEW
         ACCOUNTS..........................................................  B-1

         SCHEDULE 1: LIST OF ACCOUNTS......................................  I-1
</TABLE>

                                       ii

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