<PAGE>


CoreStates Investment Operations               Banking Subsidiaries
FC 1-1-8-4                                     CoreStates Bank, N.A.
PO Box 8590                                    New Jersey National Bank
Philadelphia, PA 19101-8590                    CoreStates Bank of Delaware NA




January 25, 1996

Central Castings Corporation
Att.: Mr. Albert T. Sabol
451 North Cannon Avenue
Lansdale, Pa 19446

Re:    Interest Rate Swap Transaction

Dear Counterparty:

The purpose of this document is to confirm the terms and conditions of the Swap
Transaction entered into between us on the Trade Date specified below ("the Swap
Transaction"). This agreement constitutes a "Confirmation" as referred to in
the Agreement specified below.

The definitions and provisions contained in the 1991 Interest Rate and Currency
Exchange Definitions (as published by the International Swap Dealers
Association, Inc. ("ISDA")) are incorporated into this confirmation. In the
event of any inconsistency between those definitions and provisions and this
Confirmation, this Confirmation will govern.

If you and we are parties to an Interest Rate Swap Agreement that sets forth the
general terms and conditions applicable to Swap Transactions between us (an
"Agreement"), this Confirmation supplements, forms part of, and will be subject
to, such Agreement, if you and we are not yet parties to an Agreement, this
Confirmation will supplement, form part of, and be subject to an Agreement upon
its execution by you and us. All provisions contained or incorporated by
reference in the Agreement shall govern this Confirmation except as expressly
modified below. In addition, if an Agreement has not been executed, this
Confirmation will itself evidence a complete binding agreement between you and
us as to the terms and conditions of the Swap Transaction to which this
Confirmation relates.

                                                           
<PAGE>





The terms of the particular Swap Transaction to which this Confirmation relates
are as follows:

  TRADE DETAILS

  NOTIONAL AMOUNT:           See Attached Amortization Schedule

  TRADE DATE:                25 January 1996

  EFFECTIVE DATE:            01 February 1996

  TERMINATION DATE:          01 November 2015

  FLOATING RATE PAYOR:       CoreStates Bank, N.A.

  FLOATING RATE              Monthly, commencing 01 March, 1996, to
  PAYMENT DATES:             and including, 1 November 2015, subject
                             to adjustment in accordance with the
                             Modified Following Business Day
                             Convention

  FLOATING RATE:             To be determined

  FLOATING RATE OPTION:      USD-LISOR-BBA

  SPREAD:                    Not Applicable

  FLOATING RATE DAY
  COUNT FRACTION:            Actual/360

  DESIGNATED MATURITY:       One (1) Month

  RESET DATES:               Weekly

  COMPOUNDING:               Not Applicable

  BUSINESS DAYS:             New York & London

  BUSINESS DAY CONVENTION:   Modified Following


<PAGE>



 FIXED RATE PAYER:       Central Castings Corporation

                                                     

 FIXED RATE:             Monthly commencing 1 March  1996 to and
 PAYMENT DAYS:           including, 1 November 2015, subject to
                         adjustment in accordance with the
                         Modified Following Business Day
                         Convention

 FIXED RATE:             6.1250%

 FIXED RATE
 DAY COUNT FRACTION:     Actual/360

 CALCULATION AGENT:      CoreStates  Bank, N.A.

 PAYMENTS TO CORESTATES BANK:
                     FRB PHILADELPHIA
                     ACCOUNT OF CORESTATES BANK, N.A.
                     ABA 031000011
                     ACCOUNT #0132-0313

 PAYMENTS TO COUNTERPARTY:
                     PLEASE PROVIDE

 PLEASE CONFIRM THAT THE FOREGOING CORRECTLY SETS THE
 TERMS OF THE TRANSACTION BY SIGNING AND RETURNING THIS
 CONFIRMATION TO US.

 ON BEHALF OF CORESTATES BANK, N.A.



/s/  ROBERT O'NEIL
--------------------------------------
 ROBERT O'NEIL, V.P.


 ON BEHALF OF THE COUNTERPARTY
 (Central Castings Corporation)


/s/ Albert T. Sabol
--------------------

<PAGE>
                             Amortization Schedule

                 Start Dates            Notional Amount Outstanding

                  02/01/96                     11,000,000

                  11/01/96                     10,450,000

                  11/01/97                      9,900,000

                  11/01/98                      9,350,000

                  11/01/99                      8,800,000

                  11/01/00                      8,250,000

                  11/01/01                      7,700,000

                  11/01/02                      7,150,000

                  11/01/03                      6,600,000

                  11/01/04                      6,050,000

                  11/01/05                      5,500,000

                  11/01/06                      4,95O,OOO

                  11/01/07                      4,400,000

                  11/01/08                      3,850,000

                  11/01/09                      3,300,000

                  11/01/10                      2,750,000

                  11/01/11                      2,200,000

                  11/01/12                      1,650,000

                  11/01/13                      1,100,000

                  11/01/14                        550,000

                  11/01/15                          0



<PAGE>
CORESTATES BANK N.A.
-------------------------------------------------------------------------------
 D/B/A CoreStates Investment Banking
 FC 1-1-9-49
 P.O. BOX 7618
 Philadelphia, PA 19101-7618

                             TRADING AUTHORIZATIONS

I hereby certify that I am a Senior Vice President of CoreStates Bank N.A. and
that I have been duly appointed and am serving in that capacity in accordance
with the policies of said Bank.

Through the authority granted me by a resolution of the Board of Directors of
CoreStates Bank, N.A., I hereby authorize each of the persons listed below to do
the following:

I.   Authorized to trade (buy and sell) on behalf of CoreStates Bank N.A. the
     following securities:

     1  U.S. Government Securities, Municipal Securities, Zero Coupon
        Securities, Federal Agency Securities, Mortgage Backed Securities,
        including (but not limited to) Government National Mortgage Association,
        Federal Home Loan Mortgage Corporation and Federal National Mortgage
        Association, Collateralized Mortgage Obligations issued by private
        issuers, Corporate Bonds and Notes, and Certificates of Deposit and
        Deposit Notes.
<TABLE>
<CAPTION>
     NAME                             TITLE                         NAME                             TITLE
<S>                        <C>                                     <C>                              <C>  
     Jim Calla             Senior Vice President                   Gladys DeJesus                   Assistant Vice President
     David Schlesinger     Senior Vice President                   Charlie Costello                 Assistant Vice President
     Richard Stoudt        Vice President                          Karen Howard                     Assistant Vice President
     Bill Breesmen         Vice President                          Kevin Lunny                      Officer
     Kevin Sweeney         Vice President                          Jennifer Bailey                  Officer
     Ed Zuk                Vice President                          Laivitia Stone                   Officer
     Brad Geist            Vice President                          Margaret Moser                   Trader
     Peter Cunane          Vice President                          Bertha Trusdell                  Trader
     Daniel Thomas         Vice President                          Frank Weise                      Trader
     Steve Budd            Vice President
</TABLE>

II.  Authorized to enter into Agreements, covering repurchase, resale, borrowing
     and lending of U.S., Government and Federal Agency Securities, Mortgage
     Backed Securities, Money Market Instruments and Corporate Bonds and Notes.
     Authorized to enter into transactions as prescribed in the Interest Rate
     SWAP Agreement and appended schedules.
<TABLE>
<CAPTION>
     NAME                             TITLE                       NAME                             TITLE
<S>                                  <C>                         <C>                             <C>   

                      Same as I. Above
</TABLE>

III. Authorized to trade Financial Futures and Options Contracts

     NAME                             TITLE

                      Same as I. Above

IV.  Authorized to enter into Loan Sale Agreements

                      Same as I. Above
<PAGE>

V.   Authorized to enter into International Currency Options Market Agreements
     and International Foreign Exchange Master Agreements.
<TABLE>
<CAPTION>
     NAME                             TITLE                       NAME                             TITLE
<S>                                  <C>                          <C>                              <C>    
     Harry G. Hayman, Ill             Senior Vice President       Robert J. Celata                 Vice President
     Janice E. Alvarez                Vice President              Charles J. Daley                 Vice President
</TABLE>

NOTE: This document supersedes all prior Trading Authorizations. Additionally,
CoreStates reserves the right to periodically alter, amend, or revoke the
Trading Authorizations and/or the authorized individuals as presented herein.

      In witness whereof, I have hereunto set my hand this____day of______


            /s/ James J. Calla
           -------------------------------------------------
                James J. Calla, Senior Vice President
                                                           

I certify that as of the date hereof, James J. Calla is a duly appointed Senior
Vice President of CoreStates Bank N.A. and that he holds all the authority
pertaining thereto including, without limitation, the authority to delegate to
others authority to perform specific functions of the bank. I further certify
that the foregoing is in full force and effect without any alteration or
amendment.

            /s/ Jacqueline A. Ballantine
            ------------------------------------------------
            Assistant Secretary, CoreStates Bank N.A.

                       March 15, 1996
            --------------------------------------
                 Date


<PAGE>
(Local Currency -- Single Jurisdiction)

                                     ISDA(R)

                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                            dated as of JANUARY 25, 1996
                                        ...................
                                       

    CORESTATES BANK, N.A.                  and     CENTRAL CASTINGS CORPORATION
 .........................................         ............................ 

have entered and/or anticipate entering into one or more transactions (each a
"Transaction") that are or will be governed by this Master Agreement, which
includes the schedule (the "Schedule"), and the documents and other confirming
evidence (each a "Confirmation") exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows:-

1. Interpretation

(a) Definitions. The terms defined in Section 12 and in the Schedule will have
the meanings therein specified for the purpose of this Master Agreement.

(b) Inconsistency. In the event of any inconsistency between the provisions of
the Schedule and the other provisions of this Master Agreement, the Schedule
will prevail. In the event of any inconsistency between the provisions of any
Confirmation and this Master Agreement (including the Schedule), such
Confirmation will prevail for the purpose of the relevant Transaction.

(c) Single Agreement. All Transactions are entered into in reliance on the fact
that this Master Agreement and all Confirmations form a single agreement between
the parties (collectively referred to as this "Agreement"), and the parties
would not otherwise enter into any Transactions.

2. Obligations

(a) General Conditions.

    (i) Each party will make each payment or delivery specified in each
    Confirmation to be made by it, subject to the other provisions of this
    Agreement.

    (ii) Payments under this Agreement will be made on the due date for value on
    that date in the place of the account specified in the relevant Confirmation
    or otherwise pursuant to this Agreement, in freely transferable funds and in
    the manner customary for payments in the required currency. Where settlement
    is by delivery (that is, other than by payment), such delivery will be made
    for receipt on the due date in the manner customary for the relevant
    obligation unless otherwise specified in the relevant Confirmation or
    elsewhere in this Agreement.

    (iii) Each obligation of each party under Section 2(a)(i) is subject to (1)
    the condition precedent that no Event of Default or Potential Event of
    Default with respect to the other party has occurred and is continuing, (2)
    the condition precedent that no Early Termination Date in respect of the
    relevant Transaction has occurred or been effectively designated and (3)
    each other applicable condition precedent specified in this Agreement.

<PAGE>
(b) Change of Account. Either party may change its account for receiving a
payment or delivery by giving notice to the other party at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

(c) Netting. If on any date amounts would otherwise be payable:-

    (i) in the same currency; and

    (ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party's obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate
amount would have been payable to pay to the other party the excess of the
larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount
will be determined in respect of all amounts payable on the same date in the
same currency in respect of such Transactions, regardless of whether such
amounts are payable in respect of the same Transaction. The election may be made
in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election,
together with the starting date (in which case subparagraph (ii) above will not,
or will cease to, apply to such Transactions from such date). This election may
be made separately for different groups of Transactions and will apply
separately to each pairing of branches or offices through which the parties make
and receive payments or deliveries.

(d) Default Interest; Other Amounts. Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant Transaction,
a party that defaults in the performance of any payment obligation will, to the
extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as such overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. If, prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party defaults in the performance of any
obligation required to be settled by delivery, it will compensate the other
party on demand if and to the extent provided for in the relevant Confirmation
or elsewhere in this Agreement.

3. Representations

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered
into) that:-

(a) Basic Representations.

    (i) Status. It is duly organised and validly existing under the laws of the
    jurisdiction of its organisation or incorporation and, if relevant under
    such laws, in good standing;

    (ii) Powers. It has the power to execute this Agreement and any other
    documentation relating to this Agreement to which it is a party, to deliver
    this Agreement and any other documentation relating to this Agreement that
    it is required by this Agreement to deliver and to perform its obligations
    under this Agreement and any obligations it has under any Credit Support
    Document to which it is a party and has taken all necessary action to
    authorise such execution, delivery and performance;

    (iii) No Violation or Conflict. Such execution, delivery and performance do
    not violate or conflict with any law applicable to it, any provision of its
    constitutional documents, any order or judgment of any court or other agency
    of government applicable to it or any of its assets or any contractual
    restriction binding on or affecting it or any of its assets;

                                        2

<PAGE>
    (iv) Consents. All governmental and other consents that are required to have
    been obtained by it with respect to this Agreement or any Credit Support
    Document to which it is a party have been obtained and are in full force and
    effect and all conditions of any such consents have been complied with; and

    (v) Obligations Binding. Its obligations under this Agreement and any Credit
    Support Document to which it is a party constitute its legal, valid and
    binding obligations, enforceable in accordance with their respective terms
    (subject to applicable bankruptcy, reorganisation, insolvency, moratorium
    or similar laws affecting creditors' rights generally and subject, as to
    enforceability, to equitable principles of general application (regardless
    of whether enforcement is sought in a proceeding in equity or at law)).

(b) Absence of Certain Events. No Event of Default or Potential Event of Default
or, to its knowledge, Termination Event with respect to it has occurred and is
continuing and no such event or circumstance would occur as a result of its
entering into or performing its obligations under this Agreement or any Credit 
Support Document to which it is a party.

(c) Absence of Litigation. There is not pending or, to its knowledge, threatened
against it or any of its Affiliates any action, suit or proceeding at law or in
equity or before any court, tribunal, governmental body, agency or official or
any arbitrator that is likely to affect the legality, validity or enforceability
against it of this Agreement or any Credit Support Document to which it is a
party or its ability to perform its obligations under this Agreement or such
Credit Support Document.

(d) Accuracy of Specified Information. All applicable information that is
furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

4. Agreements

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party:-

(a) Furnish Specified Information. It will deliver to the other party any forms,
documents or certificates specified in the Schedule or any Confirmation by the
date specified in the Schedule or such Confirmation or, if none is specified, as
soon as reasonably practicable.

(b) Maintain Authorisations. It will use all reasonable efforts to maintain in
full force and effect all consents of any governmental or other authority that
are required to be obtained by it with respect to this Agreement or any Credit
Support Document to which it is a party and will use all reasonable efforts to
obtain any that may become necessary in the future.

(c) Comply with Laws. It will comply in all material respects with all
applicable laws and orders to which it may be subject if failure so to comply
would materially impair its ability to perform its obligations under this
Agreement or any Credit Support Document to which it is a party.

5. Events of Default and Termination Events

(a) Events of Default. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of
such party of any of the following events constitutes an event of default (an
"Event of Default") with respect to such party:-

    (i) Failure to Pay or Deliver. Failure by the party to make, when due, any
    payment under this Agreement or delivery under Section 2(a)(i) or 2(d)
    required to be made by it if such failure is not remedied on or before the
    third Local Business Day after notice of such failure is given to the party;

    (ii) Breach of Agreement. Failure by the party to comply with or perform any
    agreement or obligation (other than an obligation to make any payment under
    this Agreement or delivery under Section 2(a)(i) or 2(d) or to give notice
    of a Termination Event) to be complied with or performed

                                       3

<PAGE>


    by the party in accordance with this Agreement if such failure is not
    remedied on or before the thirtieth day after notice of such failure is
    given to the party;

    (iii) Credit Support Default.

       (1) Failure by the party or any Credit Support Provider of such party to
       comply with or perform any agreement or obligation to be complied with or
       performed by it in accordance with any Credit Support Document if such
       failure is continuing after any applicable grace period has elapsed;

       (2) the expiration or termination of such Credit Support Document or the
       failing or ceasing of such Credit Support Document to be in full force
       and effect for the purpose of this Agreement (in either case other than
       in accordance with its terms) prior to the satisfaction of all
       obligations of such party under each Transaction to which such Credit
       Support Document relates without the written consent of the other party;
       or

       (3) the party or such Credit Support Provider disaffirms, disclaims,
       repudiates or rejects, in whole or in part, or challenges the validity
       of, such Credit Support Document;

    (iv) Misrepresentation. A representation made or repeated or deemed to have
    been made or repeated by the party or any Credit Support Provider of such
    party in this Agreement or any Credit Support Document proves to have been
    incorrect or misleading in any material respect when made or repeated or
    deemed to have been made or repeated;

    (v) Default under Specified Transaction. The party, any Credit Support
    Provider of such party or any applicable Specified Entity of such party (1)
    defaults under a Specified Transaction and, after giving effect to any
    applicable notice requirement or grace period, there occurs a liquidation
    of, an acceleration of obligations under, or an early termination of,
    that Specified Transaction, (2) defaults, after giving effect to any
    applicable notice requirement or grace period, in making any payment or
    delivery due on the last payment, delivery or exchange date of, or any
    payment on early termination of, a Specified Transaction (or such default
    continues for at least three Local Business Days if there is no applicable
    notice requirement or grace period) or (3) disaffirms, disclaims, repudiates
    or rejects, in whole or in part, a Specified Transaction (or such action is
    taken by any person or entity appointed or empowered to operate it or act
    on its behalf);

    (vi) Cross Default. If "Cross Default" is specified in the Schedule as
    applying to the party, the occurrence or existence of (1) a default, event
    of default or other similar condition or event(however described) in respect
    of such party, any Credit Support Provider of such party or any applicable
    Specified Entity of such party under one or more agreements or instruments
    relating to Specified Indebtedness of any of them (individually or
    collectively) in an aggregate amount of not less than the applicable
    Threshold Amount (as specified in the Schedule) which has resulted in such
    Specified Indebtedness becoming, or becoming capable at such time of being
    declared, due and payable under such agreements or instruments, before it
    would otherwise have been due and payable or (2) a default by such party,
    such Credit Support Provider or such Specified Entity (individually or
    collectively) in making one or more payments on the due date thereof in an
    aggregate amount of not less than the applicable Threshold Amount under such
    agreements or instruments (after giving effect to any applicable notice
    requirement or grace period);

    (vii) Bankruptcy. The party, any Credit Support Provider of such party or
    any applicable Specified Entity of such party:-

       (1) is dissolved (other than pursuant to a consolidation, amalgamation or
       merger); (2) becomes insolvent or is unable to pay its debts or fails or
       admits in writing its inability generally to pay its debts as they become
       due; (3) makes a general assignment, arrangement or composition with or
       for the benefit of its creditors; (4) institutes or has instituted
       against it a proceeding, seeking a judgment of insolvency or bankruptcy
       or any other relief under any bankruptcy or insolvency law or other
       similar law affecting creditors' rights, or a petition is presented for 
       its

                                       4

<PAGE>
       winding-up or liquidation, and, in the case of any such proceeding or
       petition instituted or presented against it, such proceeding or petition
       (A) results in a judgment of insolvency or bankruptcy or the entry of an
       order for relief or the making of an order for its winding-up or
       liquidation or (B) is not dismissed, discharged, stayed or restrained in
       each case within 30 days of the institution or presentation thereof; (5)
       has a resolution passed for its winding-up, official management or
       liquidation (other than pursuant to a consolidation, amalgamation or
       merger); (6) seeks or becomes subject to the appointment of an
       administrator, provisional liquidator, conservator, receiver, trustee,
       custodian or other similar official for it or for all or substantially
       all its assets; (7) has a secured party take possession of all or
       substantially all its assets or has a distress, execution, attachment,
       sequestration or other legal process levied, enforced or sued on or
       against all or substantially all its assets and such secured party
       maintains possession, or any such process is not dismissed, discharged,
       stayed or restrained, in each case within 30 days thereafter; (8) causes
       or is subject to any event with respect to it which, under the applicable
       laws of any jurisdiction, has an analogous effect to any of the events
       specified in clauses ( 1) to (7) (inclusive); or (9) takes any action in
       furtherance of, or indicating its consent to, approval of, or
       acquiescence in, any of the foregoing acts; or

    (viii) Merger Without Assumption. The party or any Credit Support Provider
    of such party consolidates or amalgamates with, or merges with or into, or
    transfers all or substantially all its assets to, another entity and, at the
    time of such consolidation, amalgamation, merger or transfer:-

       (1) the resulting, surviving or transferee entity fails to assume all the
       obligations of such party or such Credit Support Provider under this
       Agreement or any Credit Support Document to which it or its predecessor
       was a party by operation of law or pursuant to an agreement reasonably
       satisfactory to the other party to this Agreement; or

       (2) the benefits of any Credit Support Document fail to extend (without
       the consent of the other party) to the performance by such resulting,
       surviving or transferee entity of its obligations under this Agreement.

(b) Termination Events. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event specified below constitutes an Illegality if the
event is specified in (i) below, and, if specified to be applicable, a Credit
Event Upon Merger if the event is specified pursuant to (ii) below or an
Additional Termination Event if the event is specified pursuant to (iii) below:-

    (i) Illegality. Due to the adoption of, or any change in, any applicable law
    after the date on which a Transaction is entered into, or due to the
    promulgation of, or any change in, the interpretation by any court, tribunal
    or regulatory authority with competent jurisdiction of any applicable law
    after such date, it becomes unlawful (other than as a result of a breach by
    the party of Section 4(b)) for such party (which will be the Affected
    Party):-

       (1) to perform any absolute or contingent obligation to make a payment or
       delivery or to receive a payment or delivery in respect of such
       Transaction or to comply with any other material provision of this
       Agreement relating to such Transaction; or

       (2) to perform, or for any Credit Support Provider of such party to
       perform, any contingent or other obligation which the party (or such
       Credit Support Provider) has under any Credit Support Document relating
       to such Transaction;

    (ii) Credit Event Upon Merger. If "Credit Event Upon Merger", is specified
    in the Schedule as applying to the party, such party ("X"), any Credit
    Support Provider of X or any applicable Specified Entity of X consolidates
    or amalgamates with, or merges with or into, or transfers all or
    substantially all its assets to, another entity and such action does not
    constitute an event described in Section 5(a)(viii) but the creditworthiness
    of the resulting, surviving or transferee entity is materially weaker than
    that of X, such Credit Support Provider or such Specified Entity, as the
    case may be, immediately prior to such action (and, in such event, X or
    its successor or transferee, as appropriate, will be the Affected Party); or

                                        5

<PAGE>

    (iii) Additional Termination Event. If any "Additional Termination Event" is
    specified in the Schedule or any Confirmation as applying, the occurrence of
    such event (and, in such event, the Affected Party or Affected Parties shall
    be as specified for such Additional Termination Event in the Schedule or
    such Confirmation).

(c) Event of Default and Illegality. If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an Event
of Default.

6. Early Termination

(a) Right to Terminate Following Event of Default. If at any time an Event of
Default with respect to a party (the "Defaulting Party") has occurred and is
then continuing, the other party (the "Non-defaulting Party") may, by not more
than 20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If, however,
"Automatic Early Termination" is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions
will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) Right to Terminate Following Termination Event.

    (i) Notice. If a Termination Event occurs, an Affected Party will, promptly
    upon becoming aware of it, notify the other party, specifying the nature of
    that Termination Event and each Affected Transaction and will also give such
    other information about that Termination Event as the other party may
    reasonably require.

    (ii) Two Affected Parties. If an Illegality under Section 5(b)(i)(1) occurs
    and there are two Affected Parties, each party will use all reasonable
    efforts to reach agreement within 30 days after notice thereof is given
    under Section 6(b)(i) on action to avoid that Termination Event.

    (iii) Right to Terminate. If:--

       (1) an agreement under Section 6(b)(ii) has not been effected with
       respect to all Affected Transactions within 30 days after an Affected
       Party gives notice under Section 6(b)(i); or

       (2) an Illegality other than that referred to in Section 6(b)(ii), a
       Credit Event Upon Merger or an Additional Termination Event occurs,

       either party in the case of an Illegality, any Affected Party in the case
       of an Additional Termination Event if there is more than one Affected
       Party, or the party which is not the Affected Party in the case of a
       Credit Event Upon Merger or an Additional Termination Event if there is
       only one Affected Party may, by not more than 20 days notice to the other
       party and provided that the relevant Termination Event is then
       continuing, designate a day not earlier than the day such notice is
       effective as an Early Termination Date in respect of all Affected
       Transactions.

(c) Effect of Designation.

    (i) If notice designating an Early Termination Date is given under Section
    6(a) or (b), the Early Termination Date will occur on the date so
    designated, whether or not the relevant Event of Default or Termination
    Event is then continuing.

                                        6

<PAGE>


    (ii) Upon the occurrence or effective designation of an Early Termination
    Date, no further payments or deliveries under Section 2(a)(i) or 2(d) in
    respect of the Terminated Transactions will be required to be made, but
    without prejudice to the other provisions of this Agreement. The amount,
    if any, payable in respect of an Early Termination Date shall be determined
    pursuant to Section 6(e).

(d) Calculations.

    (i) Statement. On or as soon as reasonably practicable following the
    occurrence of an Early Termination Date, each party will make the
    calculations on its part, if any, contemplated by Section 6(e) and will
    provide to the other party a statement (1) showing, in reasonable detail,
    such calculations (including all relevant quotations and specifying any
    amount payable under Section 6(e)) and (2) giving details of the relevant
    account to which any amount payable to it is to be paid. In the absence of
    written confirmation from the source of a quotation obtained in determining
    a Market Quotation, the records of the party obtaining such quotation will
    be conclusive evidence of the existence and accuracy of such quotation.

    (ii) Payment Date. An amount calculated as being due in respect of any Early
    Termination Date under Section 6(e) will be payable on the day that notice
    of the amount payable is effective (in the case of an Early Termination Date
    which is designated or occurs as a result of an Event of Default) and on the
    day which is two Local Business Days after the day on which notice of the
    amount payable is effective (in the case of an Early Termination Date which
    is designated as a result of a Termination Event). Such amount will be paid
    together with (to the extent permitted under applicable law) interest
    thereon (before as well as after judgment), from (and including) the
    relevant Early Termination Date to (but excluding) the date such amount is
    paid, at the Applicable Rate. Such interest will be calculated on the basis
    of daily compounding and the actual number of days elapsed.

(e) Payments on Early Termination. If an Early Termination Date occurs, the
following provisions shall apply based on the parties' election in the Schedule
of a payment measure, either "Market Quotation" or "Loss", and a payment method,
either the "First Method" or the "Second Method". If the parties fail to
designate a payment measure or payment method in the Schedule, it will be deemed
that "Market Quotation" or the "Second Method", as the case may be, shall apply.
The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.

    (i) Events of Default. If the Early Termination Date results from an Event
    of Default:-

       (1) First Method and Market Quotation. If the First Method and Market
       Quotation apply, the Defaulting Party will pay to the Non-defaulting
       Party the excess, if a positive number, of (A) the sum of the Settlement
       Amount (determined by the Non-defaulting Party) in respect of the
       Terminated Transactions and the Unpaid Amounts owing to the
       Non-defaulting Party over (B) the Unpaid Amounts owing to the Defaulting
       Party.

       (2) First Method and Loss. If the First Method and Loss apply, the
       Defaulting Party will pay to the Non-defaulting Party, if a positive
       number, the Non-defaulting Party's Loss in respect of this Agreement.

       (3) Second Method and Market Quotation. If the Second Method and Market
       Quotation apply, an amount will be payable equal to (A) the sum of the
       Settlement Amount (determined by the Non-defaulting Party) in respect of
       the Terminated Transactions and the Unpaid Amounts owing to the
       Non-defaulting Party less (B) the Unpaid Amounts owing to the Defaulting
       Party. If that amount is a positive number, the Defaulting Party will pay
       it to the Non-defaulting Party; if it is a negative number, the
       Non-defaulting Party will pay the absolute value of that amount to the
       Defaulting Party.

       (4) Second Method and Loss. If the Second Method and Loss apply, an
       amount will be payable equal to the Non-defaulting Party's Loss in
       respect of this Agreement. If that amount is a positive number, the
       Defaulting Party will pay it to the Non-defaulting Party; if it is a
       negative

                                        7


<PAGE>


       number, the Non-defaulting Party will pay the absolute value of that
       amount to the Defaulting Party.

    (ii) Termination Events. If the Early Termination Date results from a
    Termination Event:-

       (1) One Affected Party. If there is one Affected Party, the amount
       payable will be determined in accordance with Section 6(e)(i)(3), if
       Market Quotation applies, or Section 6(e)(i)(4), if Loss applies, except
       that, in either case, references to the Defaulting Party and to the
       Non-defaulting Party will be deemed to be references to the Affected
       Party and the party which is not the Affected Party, respectively, and,
       if Loss applies and fewer than all the Transactions are being terminated,
       Loss shall be calculated in respect of all Terminated Transactions.

       (2) Two Affected Parties. If there are two Affected Parties:-

          (A) if Market Quotation applies, each party will determine a
          Settlement Amount in respect of the Terminated Transactions, and an
          amount will be payable equal to (1) the sum of (a) one-half of the
          difference between the Settlement Amount of the party with the higher
          Settlement Amount ("X") and the Settlement Amount of the party with
          the lower Settlement Amount ("Y") and (b) the Unpaid Amounts owing to
          X less (H) the Unpaid Amounts owing to Y; and

          (B) if Loss applies, each party will determine its Loss in respect of
          this Agreement (or, if fewer than all the Transactions are being
          terminated, in respect of all Terminated Transactions) and an amount
          will be payable equal to one-half of the difference between the Loss
          of the party with the higher Loss ("X") and the Loss of the party with
          the lower Loss ("Y").             

       If the amount payable is a positive number, Y will pay it to X; if it is
       a negative number, X will pay the absolute value of that amount to Y.

    (iii) Adjustment for Bankruptcy. In circumstances where an Early Termination
    Date occurs because "Automatic Early Termination" applies in respect of a
    party, the amount determined under this Section 6(e) will be subject to such
    adjustments as are appropriate and permitted by law to reflect any payments
    or deliveries made by one party to the other under this Agreement (and
    retained by such other party) during the period from the relevant Early
    Termination Date to the date for payment determined under Section 6(d)(ii).

    (iv) Pre-Estimate. The parties agree that if Market Quotation applies an
    amount recoverable under this Section 6(e) is a reasonable pre-estimate of
    loss and not a penalty. Such amount is payable for the loss of bargain and
    the loss of protection against future risks and except as otherwise provided
    in this Agreement neither party will be entitled to recover any additional
    damages as a consequence of such losses.

7. Transfer

Neither this Agreement nor any interest or obligation in or under this Agreement
may be transferred (whether by way of security or otherwise) by either party
without the prior written consent of the other party, except that:-

(a) a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any
amount payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

                                  8 

<PAGE>


8. Miscellaneous

(a) Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

(b) Amendments. No amendment, modification or waiver in respect of this
Agreement will be effective unless in writing (including a writing evidenced by
a facsimile transmission) and executed by each of the parties or confirmed by an
exchange of telexes or electronic messages on an electronic messaging system.

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d) Remedies Cumulative. Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

(e) Counterparts and Confirmations.

    (i) This Agreement (and each amendment, modification and waiver in respect
    of it) may be executed and delivered in counterparts (including by facsimile
    transmission), each of which will be deemed an original.

    (ii) The parties intend that they are legally bound by the terms of each
    Transaction from the moment they agree to those terms (whether orally or
    otherwise). A Confirmation shall be entered into as soon as practicable and
    may be executed and delivered in counterparts (including by facsimile
    transmission) or be created by an exchange of telexes or by an exchange of
    electronic messages on an electronic messaging system, which in each case
    will be sufficient for all purposes to evidence a binding supplement to this
    Agreement. The parties will specify therein or through another effective
    means that any such counterpart, telex or electronic message constitutes a
    Confirmation.

(f) No Waiver of Rights. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a
waiver, and a single or partial exercise of any right, power or privilege will
not be presumed to preclude any subsequent or further exercise, of that right,
power or privilege or the exercise of any other right, power or privilege.

(g) Headings. The headings used in this Agreement are for convenience of
reference only and are not to affect the construction of or to be taken into
consideration in interpreting this Agreement.

9. Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees,
incurred by such other party by reason of the enforcement and protection of its
rights under this Agreement or any Credit Support Document to which the
Defaulting Party is a party or by reason of the early termination of any
Transaction, including, but not limited to, costs of collection.

10. Notices

(a) Effectiveness. Any notice or other communication in respect of this
Agreement may be given in any manner set forth below (except that a notice or
other communication under Section 5 or 6 may not be given by facsimile
transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:--

    (i) if in writing and delivered in person or by courier, on the date it is
    delivered;

    (ii) if sent by telex, on the date the recipient's answerback is received;


                                       9

<PAGE>

    (iii) if sent by facsimile transmission, on the date that transmission is
    received by a responsible employee of the recipient in legible form (it
    being agreed that the burden of proving receipt will be on the sender and
    will not be met by a transmission report generated by the sender's facsimile
    machine);

    (iv) if sent by certified or registered mail (airmail, if overseas) or the
    equivalent (return receipt requested), on the date that mail is delivered or
    its delivery is attempted; or

    (v) if sent by electronic messaging system, on the date that electronic
    message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as 
applicable, is not a Local Business Day or that communication is delivered 
(or attempted) or received, as applicable, after the close of business on a 
Local Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

(b) Change of Addresses. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it.

11. Governing Law and Jurisdiction

(a) Governing Law. This Agreement will be governed by and construed in
accordance with the law specified in the Schedule.

(b) Jurisdiction. With respect to any suit, action or proceedings relating to
this Agreement ("Proceedings"), each party irrevocably:--

    (i) submits to thejurisdiction of the English courts, if this Agreement is
    expressed to be governed by English law, or to the non-exclusive
    jurisdiction of the courts of the State of New York and the United States
    District Court located in the Borough of Manhattan in New York City, if this
    Agreement is expressed to be governed by the laws of the State of New York;
    and

    (ii) waives any objection which it may have at any time to the laying of
    venue of any Proceedings brought in any such court, waives any claim that
    such Proceedings have been brought in an inconvenient forum and further
    waives the right to object, with respect to such Proceedings, that such
    court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) Waiver of Immunities. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

12. Definitions

As used in this Agreement:--

"Additional Termination Event" has the meaning specified in Section 5(b).

"Affected Party" has the meaning specified in Section 5(b).

                                       10



<PAGE>

"Affected Transactions" means (a) with respect to any Termination Event
consisting of an Illeggality, all Transactions affected by the occurrence of
such Termination Event and (b) with respect to any other Termination Event, all
Transactions.

"Affiliate" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"Applicable Rate" means:--

(a) in respect of obligations payable or deliverable (or which would have been
but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either
party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would
have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

(d) in all other cases, the Termination Rate. 

"consent" includes a consent, approval, action, authorisation, exemption, 
notice, filing, registration or exchange control consent.

"Credit Event Upon Merger" has the meaning specified in Section 5(b).

"Credit Support Document" means any agreement or instrument that is specified as
such in this Agreement.

"Credit Support Provider" has the meaning specified in the Schedule.

"Default Rate" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

"Defaulting Party" has the meaning specified in Section 6(a).

"Early Termination Date" means the date determined in accordance with Section
6(a) or 6(b)(iii).

"Event of Default" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"Illegality" has the meaning specified in Section 5(b).

"law" includes any treaty, law, rule or regulation and "lawful" and
"unlawful" will be construed accordingly.

"Local Business Day" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located, (c) in
relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice provided
by the recipient and, in the case of a notice contemplated by Section 2(b), in
the place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to
such Specified Transaction.

"Loss" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which
case expressed as a negative number) in connection with this Agreement or that
Terminated Transaction or group of Terminated Transactions, as the case may be,
including any loss of bargain, cost of funding or, at the election of such party
but without duplication, loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position
(or any gain

                                       11

<PAGE>

resulting from any of them). Loss includes losses and costs (or gains) in
respect of any payment or deliverv required to have been made (assuming
satisfaction of each applicable condition precedent) on or before the relevant
Eariv Termination Date and not made, except, so as to avoid duplication, if
Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a
party's legal fees and out-of-pocket expenses referred to under Section 9. A
party will determine its Loss as of the relevant Early Termination Date, or, if
that is not reasonably practicable, as of the earliest date thereafter as is
reasonably practicable. A party may (but need not) determine its Loss by
reference to quotations of relevant rates or prices from one or more leading
dealers in the relevant markets.

"Market Quotation" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have been required after that date. For this
purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment
or delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction would
be subject to such documentation as such party and the Reference Market-maker
may, in good faith, agree. The party making the determination (or its agent)
will request each Reference Market-maker to provide its quotation to the extent
reasonably practicable as of the same day and time (without regard to different
time zones) on or as soon as reasonably practicable after the relevant Early
Termination Date. The day and time as of which those quotations are to be
obtained will be selected in good faith by the party obliged to make a
determination under Section 6(e), and, if each party is so obliged, after
consultation with the other. If more than three quotations are provided, the
Market Quotation will be the arithmetic mean of the quotations, without regard
to the quotations having the highest and lowest values. If exactly three such
quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more
than one quotation has the same highest value or lowest value, then one of such
quotations shall be disregarded. If fewer than three quotations are provided, it
will be deemed that the Market Quotation in respect of such Terminated
Transaction or group of Terminated Transactions cannot be determined.

"Non-default Rate" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it)
if it were to fund the relevant amount.

"Non-defaulting Party" has the meaning specified in Section 6(a).

"Potential Event of Default" means any event which, with the giving of notice or
the lapse of time or both would constitute an Event of Default.

"Reference Market-makers" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to
make an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"Scheduled Payment Date" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"Set-off" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under

                                       12

<PAGE>

this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

"Settlement Amount" means, with respect to a party and any Early Termination
Date, the sum of:--

(a) the Market Quotations (whether positive or negative) for each Terminated
Transaction or group of Terminated Transactions for which a Market Quotation is
determined; and

(b) such party's Loss (whether positive or negative and without reference to any
Unpaid Amounts) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation cannot be determined or would not (in
the reasonable belief of the party making the determination) produce a
commercially reasonable result.

"Specified Entity" has the meaning specified in the Schedule.

"Specified Indebtedness" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"Specified Transaction" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap 
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

"Terminated Transactions" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"Termination Event" means an Illegality or, if specified to be applicable, a
Credit Event Upon Merger or an Additional Termination Event.

"Termination Rate" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"Unpaid Amounts" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under
Section 2(a)(i) which was (or would have been but for Section 2(a)(iii))
required to be settled by delivery to such party on or prior to such Early
Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market value of that which was (or would have
been) required to be delivered as of the originally scheduled date for delivery,
in each case together with (to the extent permitted under applicable law)
interest, in the currency of such amounts, from (and including) the date such
amounts or obligations were or would have been required to have been paid or
performed to (but excluding) such Early Termination Date, at the Applicable
Rate. Such amounts of interest will be calculated on the basis of daily
compounding and the actual number of days elapsed. The fair market value of any
obligation referred to in clause (b) above shall be reasonably determined


                                       13

<PAGE>

by the party obliged to make the determination under Section 6(e) or, if each
party is so obliged, it shall be the averace of the fair market values
reasonably determined by both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.



CORESTATES BANK, N.A.                              CENTRAL CASTINGS CORPORATION
----------------------------------------           ----------------------------
  (Name of Party)                                          (Name of Party)


By: /s/ DANIEL J. THOMAS                            By: /s/ ALBERT T. SABOL
   --------------------------                          ------------------------
   Name:  DANIEL J. THOMAS                             Name:  ALBERT T. SABOL
   Title: VICE PRESIDENT                               Title: VICE PRESIDENT
   Date:  APRIL 29, 1996                               Date:  MAY 7, 1996

                                       14


<PAGE>

(Local Currency-Single Jurisdiction)

                                      ISDA
                  International Swap Dealers Association, Inc.

                                    SCHEDULE

                               Section 5(a)(vii), none

    Section 5(b)(ii), none

            and in relation to Party B for the purpose of:--

    Section 5(a)(v), Central Sprink, Inc., Central Sprinkler Corporation,
                                             Central Sprinkler Company

    Section 5(a)(vi), Central Sprink, Inc., Central Sprinkler
                                       Corporation, Central Sprinkler Company

    Section 5(a)(vii), Central Sprink, Inc., Central Sprinkler
                                       Corporation, Central Sprinkler Company

    Section 5(b)(ii), Central Sprink, Inc., Central Sprinkler
                                       Corporation, Central Sprinkler Company

(b) "Specified Transactions" will have the meaning specified in Section 12 of
    this Agreement.


<PAGE>

(c) The "Cross Default" provisions of Section 5(a)(vi) 
    will apply to Party A
    will apply to Party B

    If such provisions apply:--

    "Specified Indebtedness" will have the meaning specified in Section 12 of
    this Agreement except that such term shall not include obligations in
    respect of deposits received in the ordinary course of a party's banking
    business.

    "Threshold Amount" means $10 million.



(d) The "Credit Event Upon Merger" provisions of Section 5(b)(ii) 
    will apply to Party A 
    will apply to Party B

(e) The "Automatic Early Termination" provision of Section 6(a) 
    will not apply to Party A 
    will not apply to Party B

(f) Payments on Early Termination. For purpose of Section 6(e) of this
    Agreement:--

    (i) Market Quotation will apply.

    (ii) The Second Method will apply.

(g) Additional Termination Event will not apply.

Part 2. Agreement to Deliver Documents.

For the purpose of Section 4(a) of this Agreement, each party agrees to deliver
the following documents, as applicable:--

  Party required to     Form/Document/      Date by which        Covered by
  deliver document       Certificate       to be delivered       Section 3(d)
                                                                Representation

      Party B           Certificate         Upon Execution          Yes
                        substantially in    of this Agreement
                        the form of
                        Exhibit II


      Party A & B       Opinion of Counsel    Upon Execution        No
                        substantially in the  of this Agreement
                        form of Exhibit III

                                       2

<PAGE>

      Party B           Financial Statements                        Yes
                        As Requested

Part 3. Miscellaneous

(a) Addresses for Notices. For the purpose of Section 10(a) of this Agreement:--

    Address for notices or communications to Party A:--

    CoreStates Bank, N.A.

    Street Address:    1345 Chestnut Street, Philadelphia, PA 19107
    Mailing Address:   P.O. Box 8590, Philadelphia, PA 19101-8590
    Attention:         Investment Operations, F.C. 1-1-8-4

    Attention:         Ms. Nancy Doyle
    FAX:               (215) 973-8388
    Phone:             (215) 973-1148


    Electronic Messaging System Details:.......................................


    Address for notices or communications to Party B:--

    Address: 451 North Cannon Avenue; Lansdale PA 19446

    Attention: Mr. Albert T. Sabol

    Telex No.:____________________________  Answerback:_________________________

    Facsimile No.: (215) 362-5385        Telephone No.: (215) 362-0700

    Electronic Messaging System Details:________________________________________

(b) Calculation Agent. The Calculation Agent is Party A unless otherwise
    specified in a Confirmation in relation to the relevant Transaction.

(c) Credit Support Document. N/A

(d) Credit Support Provider. Credit Support Provider means in relation to Party
    A. None

    Credit Support Provider. Credit Support Provider means in relation to Party
    B. None

(e) Governing Law. This Agreement will be governed by and construed in
    accordance with the laws of the State of New York (without reference to
    choice of law doctrine).

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(f) Netting of Payments. Subparagraph (ii) of Section 2(c)of this Agreement will
    not apply to any Transaction unless otherwise specified in a Confirmation in
    relation to the relevant Transaction.

(g) "Affillate" will have the meaning specified in Section 12 of this
    Agreement.

Part 4. Other Provisions.

(a) Confirmations. Notwithstanding anything to the contrary in this Agreement:

    (i) The parties hereto agree that with respect to each Transaction hereunder
    a legally binding agreement shall exist from the moment that the parties
    hereto agree on the essential terms of such Transaction, which the parties
    anticipate will occur by telephone.

    (ii) For each Transaction Party A and Party B agree to enter into hereunder,
    Party A shall promptly send to Party B a Confirmation, substantially in the
    form of Exhibit I setting forth the terms of such Transaction. Party B shall
    execute and return the Confirmation to Party A or request correction of any
    error within three Business Days of receipt. Failure of Party B to respond
    within such period shall not affect the validity or enforceability of such
    Transaction and shall be deemed to be an affirmation of such terms.

(b) Additional Agreements.

    (i) Each party agrees, upon learning of the occurrence of any event or
    commencement of any condition that constitutes (or that with the giving of
    notice or passage of time or both would constitute) an Event of Default or
    Termination Event with respect to the party, promptly to give the other
    party notice of such event or condition (or, in lieu of giving notice of
    such event or condition in the case of an event or condition that with the
    giving of notice or passage of time or both would constitute an Event of
    Default or Termination Event with respect to the party, to cause such event
    or condition to cease to exist before becoming an Event of Default or
    Termination Event).

    (ii) Party B agrees to give all notices described in (b)(i) of this Part 4
    with respect to any Credit Support Provider.

(c) Additional Representations. Section 3 of the Agreement is hereby amended by
    adding at the end thereof the following subsections (e) and (f):

      "(e) Eligible Swap Participant. It is an "eligible swap participant" as
      that term is defined by the Commodity Futures Trading Commission at 17
      C.F.R. Section 35.1(b)(2)."


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<PAGE>


    "(f) Line of Business. It has entered into this Agreement (including each
    Transaction evidenced hereby) in conjunction with its line of business
    (including financial intermediation services) or the financing of its
    business."

(d) FDIC Requirements. The following Additional Representations and Agreements
    will apply to Party A and will not apply to Party B:

    (i) The necessary action to authorize referred to in the representation in
    Section 3 (a)(ii) of this Agreement includes all authorizations required
    under the Financial Institutions Reform, Recovery, and Enforcement Act of
    1989 and any regulations and guidelines thereunder.

    (ii) At all times during the term of this Agreement, it will continuously
    include and maintain as part of its official written books and records, this
    Agreement, this Schedule and all other exhibits, supplements, and
    attachments hereto and documents incorporated by reference herein, all
    Confirmations and evidence of all necessary approvals. In addition to any
    other remedies which the other party may have under this Agreement or
    otherwise, if it breaches or defaults on any of its obligations set forth in
    this subparagraph (ii), the other party shall be entitled to apply to any
    court of competent jurisdiction for an order requiring specific performance
    of such obligations, and it shall not contest any such application and shall
    comply with any such order.

(e) Set-off. Section 6 of the Agreement is amended by adding the following new
    subsection 6(f):

    "(f) Set-off. Without affecting the provisions of this Agreement requiring
    the calculation of certain net payment amounts, all payments under this
    Agreement shall be made without set-off or counterclaim and will not be
    subject to any conditions except as provided in Section 2 of this Agreement
    and except as provided in this Section 6(f). Any amount (the 'Early
    Termination Amount') payable to one party (the 'Payee') by the other party
    (the 'Payer') under Section 6(e), in circumstances where there is a
    Defaulting Party or one Affected Party in the case where a Termination Event
    under Section 5(b)(ii) has occurred, will, at the option of the party ('X')
    other than the Defaulting Party or the Affected Party (and without prior
    notice to the Defaulting Party or the Affected Party), be reduced by its
    set-off against any amount(s) (the 'Other Agreement Amount') payable
    (whether at such time or in the future or upon the occurrence of a
    contingency) by the Payee to the Payer (irrespective of the currency, place
    of payment or booking office of the obligation) under any other agreement(s)
    between the Payee and the Payer or instrument(s) or undertaking(s) issued 
    or executed by one party to, or in favor of, the other party (and the Other
    Agreement Amount will be discharged promptly and in all respects to the

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<PAGE>

    extent it is so set-off). X will give notice to the other party of any
    set-off effected under this Section 6(f).

    "For this purpose, either the Early Termination Amount or the Other
    Agreement Amount (or the relevant portion of such amounts) may be converted
    by X into the currency in which the other is denominated at the rate of
    exchange at which such party would be able, acting in a reasonable manner
    and in good faith, to purchase the relevant amount of such currency.

    "If an obligation is unascertained, X may in good faith estimate that
    obligation and set-off in respect of the estimate, subject to the relevant
    party accounting to the other when the obligation is ascertained.

    "Nothing in this Section 6(f) shall be effective to create a charge or other
    security interest. This Section 6(f) shall be without prejudice and in
    addition to any right of set-off, combination of accounts, lien or other
    right to which any party is at any time otherwise entitled (whether by
    operation of law, contract or otherwise)."

(f) Consent to Recording. Each Party (i) consents to the recording of the
    telephone conversations of trading and marketing personnel of the Parties
    and their Affiliates in connection with this Agreement or any potential
    Transaction and (ii) agrees to obtain any necessary consent of, and give
    notice of such recording to, such personnel of it and its Affiliates.

(g) No Reliance. In connection with the negotiation of, the entering into, and
    the confirming of the execution of this Agreement, each Transaction and any
    Credit Support Document to which it is a party, each party agrees and
    confirms that: (i) the other party hereto or thereto is not acting as a
    fiduciary or financial, investment, or commodity trading advisor for it;
    (ii) it is not primarily relying (for purposes of making any investment
    decision or otherwise) upon any advice, counsel or representations (whether
    written or oral) of the other party hereto or thereto other than the
    representations expressly set forth in this Agreement, in such Credit
    Support Document, and in any Conformation; (iii) it has consulted with its
    own legal, regulatory, tax, business, investment, financial and accounting
    advisors to the extent as it has deemed necessary, and it has made its
    judgement based primarily upon such advice; and (iv) it understands the
    terms, conditions of and risks (economic and otherwise) associated with,
    this Agreement, each Transaction and any Credit Support Document to which it
    is a party, and it is capable of assuming and willing to assume such risks.

(h) Interest Rate Caps, Collars, Floors and Options. Notwithstanding the terms
    of Sections 5 and 6 of this Agreement, if at any time and so long as one of
    the parties to this Agreement ("X") shall have

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<PAGE>

    satisfied in full all its payment obligations under 2(a)(i) of this
    Agreement and shall at the time have no future payment obligations, whether
    absolute or contingent, under such Section, then unless the other party
    ("Y") is required pursuant to appropriate proceedings to return to X or
    otherwise returns to X upon demand of X any portion of any such payment, (a)
    the occurrence of an event described in 5(a) of this Agreement with respect
    to X or any Specified Entity of X shall not constitute an Event of Default
    or a Potential Event of Default with respect to X as the Defaulting Party
    and (b) Y shall be entitled to designate an Early Termination Date pursuant
    to section 6 of this Agreement only as a result of the occurrence of a
    Termination Event set forth in (i) either Section 5(b)(i) or 5(b)(ii) of 
    this Agreement with respect to Y as the Affected Party or (ii) Section 5(b)
    (iii) of this Agreement with respect to Y as the Burdened Party.

(i) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES ANY AND ALL RIGHTS TO
    TRIAL BY JURY WITH RESPECT TO ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR
    INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN
    ANY WAY ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE RELATIONSHIP
    ESTABLISHED HEREUNDER OR ANY TRANSACTION CONTEMPLATED HEREBY.


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