Document:

Exhibit 10.1

                                             CONTRACT ORDER

                                             June 21, 2004

Perma-Fix Environmental Services, Inc.

663 Emory Valley Road                        LBIO-65121
Oak Ridge, TN 37830                          Contract Order No.
Tammy Monday                                 Page 1 of 6*
865-813-1309/865-813-1301 (fax)              *(last page for --------- use only)
email address: tmonday@perma-fix.com

                                              ----------------------------------
                                              Issuing Point

                                              ----------------------------------
                                              Issued By

================================================================================

This  document,  when  properly  executed by both parties,  shall  constitute an
agreement (Agreement) between -------- (hereinafter referred to as --------),  a
Delaware  corporation  having its principal  place of business at --------,  and
Perma-Fix Environmental  Services,  Inc. (a Tennessee  corporation),  having its
principal  place of  business  at 663 Emory  Valley  Road,  Oak Ridge,  TN 37830
(hereinafter  referred to as CONTRACTOR);  also collectively  referred to as the
Parties.

1.    SERVICES

      CONTRACTOR shall, except to the extent otherwise expressly stated herein,
      furnish all labor, supervision, materials, tools, equipment, facilities,
      permits and services and do all things necessary, as -------- elects, to
      provide Mixed Waste Treatment and Disposal for the Billerica site located
      in Billerica, MA, in accordance with the following documents which are
      attached and made a part hereof by this reference:

      1.    Exhibit "A," Scope of Work, dated October 31, 2003

      2.    Exhibit "B", -------- Material Removal Services General Conditions,
            DUPA-GC6 (rev. 06/21/04)

      3.    CONTRACTOR Proposal No. 2003-12-001, "Billerica Waste Treatment
            Specification"

      4.    Exhibits "C", CONTRACTOR pricing dated May 12, 2004

            This Scope of Work may be modified, from time to time, by mutual
            written agreement of the Parties.

2.    SCHEDULE OF WORK

      This Agreement will become effective as of June 10, 2004, and will
      continue in full force and effect through June 30, 2005, unless earlier
      terminated by --------, without cause, at any time, upon thirty (30) days
      prior written notice to CONTRACTOR. Such termination, which shall be
      accomplished without penalty unless otherwise specifically stated herein,
      shall not relieve or release either -------- or CONTRACTOR from any
      rights, liabilities or obligations they may have accrued under the law or
      terms of this Agreement prior to the date of such termination.

SOURCING
ACCOUNTS PAYABLE
CONTRACT ADMINISTRATOR

<PAGE>

                                             CONTRACT ORDER

                                             June 21, 2004

Perma-Fix Environmental Services, Inc.

663 Emory Valley Road                        LBIO-65121
Oak Ridge, TN 37830                          Contract Order No.
Tammy Monday                                 Page 2 of 6*
865-813-1309/865-813-1301 (fax)              *(last page for --------- use only)
email address: tmonday@perma-fix.com

                                              ----------------------------------
                                              Issuing Point

                                              ----------------------------------
                                              Issued By

================================================================================

      The term "obligations" in the context of this article includes Services
      which have been authorized by -------- Contract Order release(s) but not
      yet delivered. Said release(s) shall be completed even if delivery must
      occur after the termination date hereof.

3.    COMPENSATION

      As consideration for Services properly provided hereunder, -------- agrees
      to pay and CONTRACTOR agrees to accept as compensation the lump sum amount
      of six million two hundred seventeen thousand eight hundred sixty-one
      dollars and 75/100 ($6,217,681.75) per Article 35 of DUPA-GC-6 (rev.
      06/21/04), Terms of Payment page 18;

                  Treatment  = $5,313,982.28
                  Disposal   = $  903,879.47
                               -------------
                               $6,217,861.75

      CONTRACTOR shall invoice -------- for services provided meeting the Scope
      of Work hereunder. The -------- Contract Administrator will approve
      invoices for payment.

4.    TERMS OF PAYMENT

      CONTRACTOR shall invoice -------- monthly for all Services properly
      provided under this Agreement during the preceding month. Terms of payment
      will be net thirty (30) days after -------- receives a properly prepared
      and correct CONTRACTOR invoice. A properly prepared and correct invoice is
      an original document received at the proper -------- address, as defined
      in the Notices article herein, that clearly and legibly includes, as a
      minimum:

      o     the--------contract order number and release number (if applicable);

      o     CONTRACTOR'S complete name and remit to address; o "bill to"
            stating--------;

      o     a detailed description of the Service;

      o     price, consistent with the compensation schedule of this Agreement;

      o     quantity, consistent with the compensation schedule of this
            Agreement;

      o     unit of measure, consistent with the compensation schedule of this
            Agreement;

      o     CONTRACTOR'S invoice number;

      o     invoice date;

      o     total monetary amount;

SOURCING
ACCOUNTS PAYABLE
CONTRACT ADMINISTRATOR

<PAGE>

                                             CONTRACT ORDER

                                             June 21, 2004

Perma-Fix Environmental Services, Inc.

663 Emory Valley Road                        LBIO-65121
Oak Ridge, TN 37830                          Contract Order No.
Tammy Monday                                 Page 3 of 6*
865-813-1309/865-813-1301 (fax)              *(last page for --------- use only)
email address: tmonday@perma-fix.com

                                              ----------------------------------
                                              Issuing Point

                                              ----------------------------------
                                              Issued By

================================================================================

      o     terms of payment, including any applicable discount calculations;

      o     freight terms, if applicable;

      o     tax amount/rate information; and

      o     bill of lading number or packing list number as appropriate.

      Incomplete invoices will be returned to CONTRACTOR unpaid and unprocessed.

      If CONTRACTOR'S invoice does not indicate that CONTRACTOR is an
      incorporated entity, by use of the words (or abbreviations)
      "Incorporated", "Corporation", or "P.C." as a part of CONTRACTOR'S company
      name, then CONTRACTOR shall display its tax identification number (TIN) on
      the invoice in lieu of such designations. Failure to furnish such
      information may result in withholding thirty-one percent (31%) of
      Agreement payments in accordance with IRS regulations.

      Payment shall be considered made when payment checks are mailed by
      -------- or when Electronic Funds Transfer through the Automated Clearing
      House (EFT/ACH) is initiated by --------. CONTRACTOR'S invoice will be
      accompanied by such records or other written proof as -------- deems
      adequate to verify the billings appearing therein.

5.    CONTRACT ADMINISTRATOR

      The -------- Contract Administrator for this Agreement is --------.

6.    NOTICES

      All notices required under this Agreement shall be in writing, or if oral
      must be confirmed in writing by electronic mail or facsimile (with proof
      of transmission capability) the next business day. Written notices shall
      be deemed received if delivered to the Party entitled to receive the same
      by hand or if deposited in the United States Mail (First Class, Registered
      Mail or Certified Mail, Return Receipt Requested) or by confirmed courier
      addressed to such Party at the address set forth below:

      All notices required or contemplated under this Agreement shall be
      addressed as follows:

      a. Proposed price changes, correspondence or notices involving the
      contractual relationship should be sent to:

      --------
      Attention:  --------

SOURCING
ACCOUNTS PAYABLE
CONTRACT ADMINISTRATOR

<PAGE>

                                             CONTRACT ORDER

                                             June 21, 2004

Perma-Fix Environmental Services, Inc.

663 Emory Valley Road                        LBIO-65121
Oak Ridge, TN 37830                          Contract Order No.
Tammy Monday                                 Page 4 of 5*
865-813-1309/865-813-1301 (fax)              *(last page for --------- use only)
email address: tmonday@perma-fix.com

================================================================================

      b. Insurance Certificates, Accountability Reports, Safety Reports, and
      routine performance summaries are to be sent to:

      --------
      Attention:  --------

      c. Invoices are to be sent to:

      --------
      Attention:  Accounts Payable

      d. CONTRACTOR will contact the -------- Accounts Payable Department at
      -------- or by telephone at -------- for questions regarding payment
      status. CONTRACTOR must provide -------- Purchase Order number, your
      invoice number, invoice date, and your name/phone number.

      e. -------- correspondence, information, documents, notices or payments to
      CONTRACTOR shall be sent personally or by first-class mail to:

      Perma-Fix Environmental Services, Inc.
      Attention:  Tammy Monday
      663 Emory Valley Road
      Oak Brook, TN  37830

      Either Party may change its address for notice hereunder upon no less than
      thirty (30) days prior written notice thereof to the other Party.

7.    GENERAL CONDITIONS

      CONTRACTOR will perform all Services in accordance with the --------
      Material Removal

SOURCING
ACCOUNTS PAYABLE
CONTRACT ADMINISTRATOR

<PAGE>

                                             CONTRACT ORDER

                                             June 21, 2004

Perma-Fix Environmental Services, Inc.

663 Emory Valley Road                        LBIO-65121
Oak Ridge, TN 37830                          Contract Order No.
Tammy Monday                                 Page 5 of 6*
865-813-1309/865-813-1301 (fax)              *(last page for --------- use only)
email address: tmonday@perma-fix.com

                                              ----------------------------------
                                              Issuing Point

                                              ----------------------------------
                                              Issued By

================================================================================

      Services General Conditions, DUPA-GC6 (rev. 06/02/04), attached hereto as
      Exhibit "B" and made a part hereof. Any inconsistent terms or conditions
      submitted by CONTRACTOR shall not apply unless they are: (1) reduced to
      writing and signed by both Parties hereto; and (2) expressly referred to
      as being modifications of the General Conditions.

8.    ENTIRETY

      This Agreement, together with the attachments and exhibits specifically
      referenced and attached hereto, embodies the entire understanding between
      -------- and CONTRACTOR and, except as otherwise specifically stated
      herein, there are no contracts, understandings, conditions, or
      representations, oral or written, with reference to the subject matter
      hereof which are not merged herein. Except as otherwise specifically
      stated, no modification hereto shall be of any force or effect unless (1)
      reduced to writing and signed by both Parties hereto, and (2) expressly
      referred to as being modifications of this Agreement.

      Please have your authorized representative execute in the space provided
      below, indicating acceptance of this Agreement. CONTRACTOR will keep one
      original and return one executed copy of this Agreement to --------,
      --------. The -------- copy must be returned, before work can begin or
      payment can be made against this Agreement.

Perma-Fix Environmental Services, Inc.            --------

BY:  /s/ Jim Morrison                        BY:   ----------
    --------------------------------            ------------------------------
    Business Manager                            Strategic Sourcing Manager -
                                                Environmental Services
    --------------------------------            ------------------------------
               Title                                      Title

SOURCING
ACCOUNTS PAYABLE
CONTRACT ADMINISTRATORExhibit 10.1

                                                                  EXECUTION COPY

                                U.S. $500,000,000

                            364-DAY CREDIT AGREEMENT

                            Dated as of May 24, 2004

                                      Among

                              OMNICOM FINANCE INC.
                              OMNICOM CAPITAL INC.
                                       and
                               OMNICOM FINANCE PLC
                                  as Borrowers
                                  ------------

                               OMNICOM GROUP INC.
                                  as Guarantor
                                  ------------

                                       and

                        THE INITIAL LENDERS NAMED HEREIN

                               as Initial Lenders
                               ------------------

                                       and

                          CITIGROUP GLOBAL MARKETS INC.
                                       and
                           J.P. MORGAN SECURITIES INC.
                       as Lead Arrangers and Book Managers
                       -----------------------------------

                               ABN AMRO BANK N.V.
                              as Syndication Agent
                              --------------------

                               JPMORGAN CHASE BANK
                                       and
                                  HSBC BANK USA
                             as Documentation Agents
                             -----------------------

                                       and

                                 CITIBANK, N.A.
                             as Administrative Agent
                             -----------------------

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I

         SECTION 1.01.  Certain Defined Terms                                  1

         SECTION 1.02.  Computation of Time Periods                           10

         SECTION 1.03.  Accounting Terms                                      10

ARTICLE II

         SECTION 2.01.  The Advances                                          10

         SECTION 2.02.  Making the Advances                                   10

         SECTION 2.03.  Fees                                                  11

         SECTION 2.04.  Termination or Reduction of the Commitments           11

         SECTION 2.05.  Repayment of Advances                                 12

         SECTION 2.06.  Interest on Advances                                  12

         SECTION 2.07.  Interest Rate Determination                           12

         SECTION 2.08.  Optional Conversion of Advances                       13

         SECTION 2.09. Prepayments of Advances                                13

         SECTION 2.10.  Increased Costs                                       14

         SECTION 2.11.  Illegality                                            14

         SECTION 2.12.  Payments and Computations                             15

         SECTION 2.13.  Taxes                                                 15

         SECTION 2.14.  Sharing of Payments, Etc.                             18

         SECTION 2.15.  Evidence of Debt                                      18

         SECTION 2.16.  Use of Proceeds                                       19

         SECTION 2.17.  Increase in the Aggregate Commitments                 19

         SECTION 2.18.  Extension of Termination Date                         20

                                       i
<PAGE>

ARTICLE III

         SECTION 3.01.  Conditions Precedent to Effectiveness
                          of Section 2.01                                     21

         SECTION 3.02.  Conditions Precedent to Each Borrowing,
                          Commitment Increase and Extension Date.             23

         SECTION 3.03.  Determinations Under Section 3.01                     23

ARTICLE IV

         SECTION 4.01.  Representations and Warranties of the Guarantor       23

ARTICLE V

         SECTION 5.01.  Affirmative Covenants                                 25

         SECTION 5.02.  Negative Covenants                                    27

         SECTION 5.03.  Financial Covenants                                   28

ARTICLE VI

         SECTION 6.01.  Events of Default                                     29

ARTICLE VII

         SECTION 7.01.  Guaranty                                              30

         SECTION 7.02.  Guaranty Absolute                                     31

         SECTION 7.03.  Waivers and Acknowledgements                          32

         SECTION 7.04.  Subrogation                                           32

         SECTION 7.05.  Subordination                                         33

         SECTION 7.06.  Continuing Guaranty; Assignments                      33

ARTICLE VIII

         SECTION 8.01.  Authorization and Action                              33

         SECTION 8.02.  Agent's Reliance, Etc.                                34

         SECTION 8.03.  Citibank and Affiliates                               34

         SECTION 8.04.  Lender Credit Decision                                34

                                       ii
<PAGE>

         SECTION 8.05.  Indemnification                                       34

         SECTION 8.06.  Successor Agent                                       35

         SECTION 8.07.  Other Agents.                                         35

ARTICLE IX

         SECTION 9.01.  Amendments, Etc.                                      35

         SECTION 9.02.  Notices, Etc.                                         35

         SECTION 9.03.  No Waiver; Remedies                                   36

         SECTION 9.04.  Costs and Expenses                                    36

         SECTION 9.05.  Right of Set-off                                      37

         SECTION 9.06.  Binding Effect                                        37

         SECTION 9.07.  Assignments and Participations                        38

         SECTION 9.08.  Confidentiality                                       39

         SECTION 9.09.  Governing Law                                         39

         SECTION 9.10.  Execution in Counterparts                             39

         SECTION 9.11.  Jurisdiction, Etc.                                    40

         SECTION 9.12.  Patriot Act                                           40

         SECTION 9.13.  Waiver of Jury Trial                                  41

                                      iii
<PAGE>

Schedules
---------

Schedule I - List of Applicable Lending Offices

Schedule 3.01(b) - Disclosed Litigation

Schedule 5.02(a) - Existing Liens

Schedule 5.02(d) - Existing Debt

Exhibits
--------

Exhibit A        -   Form of Note

Exhibit B        -   Form of Notice of Borrowing

Exhibit C        -   Form of Assignment and Acceptance

Exhibit D-1      -   Form of Opinion of New York Counsel for the Loan Parties

Exhibit D-2      -   Form of Opinion of English Counsel for OFP

                                       iv
<PAGE>

                            364-DAY CREDIT AGREEMENT

                            Dated as of May 24, 2004

            OMNICOM  FINANCE  INC.,  a  Delaware  corporation  ("OFI"),  OMNICOM
CAPITAL  INC., a Connecticut  corporation  ("OCI"),  and OMNICOM  FINANCE PLC, a
corporation  organized under the laws of England and Wales ("OFP";  OFI, OCI and
OFP are each a "Borrower"  and  collectively,  the  "Borrowers"),  OMNICOM GROUP
INC.,  a  New  York  corporation  (the   "Guarantor"),   the  banks,   financial
institutions and other  institutional  lenders (the "Initial Lenders") listed on
the  signature  pages  hereof,  CITIGROUP  GLOBAL  MARKETS INC. and J.P.  MORGAN
SECURITIES  INC., as lead  arrangers and book  managers,  ABN AMRO BANK N.V., as
syndication  agent,  JPMORGAN  CHASE  BANK and HSBC BANK USA,  as  documentation
agents, and CITIBANK,  N.A. ("Citibank"),  as administrative agent (the "Agent")
for the Lenders (as hereinafter defined), agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

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

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

            "Affiliate" means, as to any Person, any other Person (other than an
      individual) that, directly or indirectly, controls, is controlled by or is
      under  common  control with such Person;  provided  that,  for purposes of
      Section 5.01(h),  an Affiliate of a Borrower shall include any Person that
      (x) is a director  or officer  of such  Person or (y) has the  possession,
      direct or indirect, of the power to vote 5% or more of the Voting Stock of
      such Person.  A Person shall be deemed to control  another  Person if such
      Person possesses, directly or indirectly, the power to direct or cause the
      direction of the management and policies of such Person,  whether  through
      the ownership of Voting Stock, by contract or otherwise.

            "Agent's  Account" means the account of the Agent  maintained by the
      Agent at Citibank at its office at 388  Greenwich  Street,  New York,  New
      York 10013, Account No. 36852248, Attention: Bank Loan Syndications.

            "Applicable Lending Office" means, with respect to each Lender, such
      Lender's  Domestic  Lending  Office in the case of a Base Rate Advance and
      such Lender's  Eurodollar  Lending Office in the case of a Eurodollar Rate
      Advance.

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

-------------------------------------------------------------------------------
   Public Debt Rating     Applicable Margin for         Applicable Margin for
       S&P/Moody's       Eurodollar Rate Advances   Eurodollar Rate Advances
                          Prior to the Term Loan   On and After the Term Loan
                             Conversion Date             Conversion Date
-------------------------------------------------------------------------------
Level 1
A+ or A1 or above                 0.165%                     0.625%
-------------------------------------------------------------------------------

<PAGE>

-------------------------------------------------------------------------------
   Public Debt Rating     Applicable Margin for         Applicable Margin for
       S&P/Moody's       Eurodollar Rate Advances   Eurodollar Rate Advances
                          Prior to the Term Loan   On and After the Term Loan
                             Conversion Date             Conversion Date
-------------------------------------------------------------------------------
Level 2
A or A2                           0.275%                     0.750%
-------------------------------------------------------------------------------
Level 3
A- or A3                          0.390%                     0.875%
-------------------------------------------------------------------------------
Level 4
BBB+ or Baa1                      0.500%                     1.000%
-------------------------------------------------------------------------------
Level 5
BBB or Baa2                       0.725%                     1.250%
-------------------------------------------------------------------------------
Level 6
Lower than Level 5                0.800%                     1.500%
-------------------------------------------------------------------------------

            "Applicable Percentage" means, as of any date prior to the Term Loan
      Conversion  Date, a percentage  per annum  determined  by reference to the
      Public Debt Rating in effect on such date as set forth below:

            --------------------------------------------------------------
                  Public Debt Rating                  Applicable
                      S&P/Moody's                     Percentage
            --------------------------------------------------------------
            Level 1
            A+ or A1 or above                           0.085%
            --------------------------------------------------------------
            Level 2
            A or A2                                     0.100%
            --------------------------------------------------------------
            Level 3
            A- or A3                                    0.110%
            --------------------------------------------------------------
            Level 4
            BBB+ or Baa1                                0.125%
            --------------------------------------------------------------
            Level 5
            BBB or Baa2                                 0.150%
            --------------------------------------------------------------
            Level 6
            Lower than Level 5                          0.200%
            --------------------------------------------------------------

            "Applicable Utilization Fee" means, as of any date prior to the Term
      Loan  Conversion  Date  that  the  aggregate  Advances  exceed  50% of the
      aggregate  Commitments,  a percentage per annum determined by reference to
      the Public Debt Rating in effect on such date as set forth below:

            --------------------------------------------------------------
                  Public Debt Rating                  Applicable
                      S&P/Moody's                  Utilization Fee
            --------------------------------------------------------------
            Level 1
            A+ or A1 or above                           0.125%
            --------------------------------------------------------------
            Level 2
            A or A2                                     0.125%
            --------------------------------------------------------------
            Level 3
            A- or A3                                    0.125%
            --------------------------------------------------------------
            Level 4
            BBB+ or Baa1                                0.125%
            --------------------------------------------------------------
            Level 5
            BBB or Baa2                                 0.125%
            --------------------------------------------------------------
            Level 6
            Lower than Level 5                          0.250%
            --------------------------------------------------------------

                                       2
<PAGE>

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

            "Assuming Lender" has the meaning specified in Section 2.17(d).

            "Assumption   Agreement"  has  the  meaning   specified  in  Section
      2.17(d)(ii).

            "Bankruptcy  Law" means Title 11, U.S. Code, or any similar foreign,
      federal or state law for the relief of debtors.

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

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

                  (b) the sum (adjusted to the nearest 1/4 of 1% or, if there is
            no nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) 1/2 of 1%
            per annum,  plus (ii) the rate  obtained by dividing  (A) the latest
            three-week moving average of secondary market morning offering rates
            in the United  States  for  three-month  certificates  of deposit of
            major United  States  money market  banks,  such  three-week  moving
            average  (adjusted  to the  basis  of a  year  of  360  days)  being
            determined  weekly on each Monday (or, if such day is not a Business
            Day, on the next succeeding  Business Day) for the three-week period
            ending on the previous Friday by Citibank on the basis of such rates
            reported by certificate  of deposit  dealers to and published by the
            Federal  Reserve Bank of New York or, if such  publication  shall be
            suspended or  terminated,  on the basis of quotations for such rates
            received  by  Citibank  from three New York  certificate  of deposit
            dealers  of  recognized  standing  selected  by  Citibank,  by (B) a
            percentage equal to 100% minus the average of the daily  percentages
            specified during such three-week period by the Board of Governors of
            the Federal  Reserve System (or any successor) for  determining  the
            maximum  reserve  requirement  (including,  but not  limited to, any
            emergency,  supplemental or other marginal reserve  requirement) for
            Citibank  with  respect to  liabilities  consisting  of or including
            (among other liabilities)  three-month U.S. dollar non-personal time
            deposits in the United  States,  plus (iii) the average  during such
            three-week  period  of the  annual  assessment  rates  estimated  by
            Citibank for determining the then current annual assessment  payable
            by Citibank to the Federal  Deposit  Insurance  Corporation  (or any
            successor)  for  insuring  U.S.  dollar  deposits of Citibank in the
            United States; and

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

            "Base Rate Advance" means an Advance that bears interest as provided
      in Section 2.06(a)(i).

            "Borrowing"  means (a) with  respect  to the making of  Advances,  a
      borrowing  consisting  of  simultaneous  Advances of the same Type made by
      each of the Lenders  pursuant to Section 2.01;  and (b) in other  contexts
      (i) that portion of the Advances  comprised of all  outstanding  Base Rate
      Advances and (ii) that portion of Advances  converted  into,  or continued
      as, Eurodollar Rate Advances having the same Interest Period.

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

            "Commitment"  means  as to any  Lender  (a)  the  amount  set  forth
      opposite such Lender's  name on the  signature  pages hereof,  (b) if such
      Lender has become a Lender hereunder pursuant to an Assumption

                                       3
<PAGE>

      Agreement,  the amount set forth in such  Assumption  Agreement  or (c) if
      such Lender has entered into any Assignment and Acceptance, the amount set
      forth for such Lender in the Register  maintained by the Agent pursuant to
      Section 9.07(d), as such amount may be reduced pursuant to Section 2.04 or
      increased pursuant to Section 2.17.

            "Commitment Date" has the meaning specified in Section 2.17(b).

            "Commitment Increase" has the meaning specified in Section 2.17(a).

            "Confidential  Information"  means  information  that a  Loan  Party
      furnishes  to  the  Agent  or  any  Lender  in  a  writing  designated  as
      confidential, but does not include any such information that is or becomes
      generally  available to the public or that is or becomes  available to the
      Agent or such Lender from a source other than a Loan Party.

            "Consenting Lender" has the meaning specified in Section 2.18(b).

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

            "Convert",  "Conversion" and "Converted" each refers to a conversion
      of  Advances  of one Type into  Advances  of the other  Type  pursuant  to
      Section 2.07 or 2.08.

            "Debt"  of  any  Person   means,   without   duplication,   (a)  all
      indebtedness  of such Person for borrowed  money,  (b) all  obligations of
      such Person for the deferred purchase price of property or services (other
      than earn-out  payment  obligations of such Person in connection  with the
      purchase of property or services to the extent they are still contingent),
      (c) all obligations of such Person evidenced by notes,  bonds,  debentures
      or other similar  instruments,  (d) all obligations of such Person created
      or arising under any conditional  sale or other title retention  agreement
      with  respect to property  acquired by such Person (even though the rights
      and remedies of the seller or lender under such  agreement in the event of
      default are limited to  repossession  or sale of such  property),  (e) all
      obligations of such Person as lessee under leases that have been or should
      be,  in  accordance  with  GAAP,  recorded  as  capital  leases,  (f)  all
      obligations,  contingent  or  otherwise,  of such  Person  in  respect  of
      acceptances,  letters of credit or similar  extensions of credit,  (g) all
      obligations of such Person in respect of Hedge Agreements, (h) all Debt of
      others  referred  to in clauses  (a) through (g) above or clause (i) below
      and other  payment  obligations  guaranteed  directly or indirectly in any
      manner by such Person, or in effect  guaranteed  directly or indirectly by
      such Person  through an agreement  (1) to pay or purchase  such Debt or to
      advance or supply  funds for the payment or purchase of such Debt,  (2) to
      purchase,  sell or lease (as lessee or lessor) property, or to purchase or
      sell  services,  primarily  for the purpose of enabling the debtor to make
      payment of such Debt or to assure the  holder of such Debt  against  loss,
      (3) to  supply  funds  to or in any  other  manner  invest  in the  debtor
      (including any agreement to pay for property or services  irrespective  of
      whether such  property is received or such  services are  rendered) or (4)
      otherwise to assure a creditor  against loss, and (i) all Debt referred to
      in clauses (a)  through  (h) above  secured by (or for which the holder of
      such Debt has an existing  right,  contingent or otherwise,  to be secured
      by) any Lien on property  (including,  without  limitation,  accounts  and
      contract  rights)  owned by such  Person,  even though such Person has not
      assumed or become liable for the payment of such Debt.

            "Debt for  Borrowed  Money" of any Person  means all items that,  in
      accordance   with  GAAP,   would  be  classified  as   indebtedness  on  a
      Consolidated balance sheet of such Person.

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

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

            "Domestic  Lending  Office" means,  with respect to any Lender,  the
      office of such Lender specified as its "Domestic  Lending Office" opposite
      its name on Schedule I hereto or in the Assumption Agreement

                                       4
<PAGE>

      or the Assignment and Acceptance  pursuant to which it became a Lender, or
      such  other  office of such  Lender as such  Lender  may from time to time
      specify to the Borrowers and the Agent.

            "EBITDA"  means,  for any period,  net income (or net loss) plus the
      sum of (a) net interest expense,  (b) income tax expense, (c) depreciation
      expense  and  (d)  amortization   expense,  in  each  case  determined  in
      accordance with GAAP for such period.

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

            "Eligible  Assignee"  means (i) a  Lender;  (ii) an  Affiliate  of a
      Lender;  and (iii) any other Person  approved by the Agent and,  unless an
      Event of Default has occurred and is continuing at the time any assignment
      is effected in accordance with Section 9.07, the Guarantor,  such approval
      not to be  unreasonably  withheld  or  delayed;  provided,  however,  that
      neither the Guarantor  nor an Affiliate of the Guarantor  shall qualify as
      an Eligible Assignee.

            "Environmental  Action"  means  any  action,  suit,  demand,  demand
      letter, claim, notice of non-compliance or violation,  notice of liability
      or  potential  liability,  investigation,  proceeding,  consent  order  or
      consent  agreement   relating  in  any  way  to  any  Environmental   Law,
      Environmental Permit or hazardous materials or arising from alleged injury
      or  threat  of injury to  health,  safety or the  environment,  including,
      without  limitation,  (a) by any governmental or regulatory  authority for
      enforcement,  cleanup,  removal,  response,  remedial or other  actions or
      damages and (b) by any  governmental or regulatory  authority or any third
      party  for  damages,   contribution,   indemnification,   cost   recovery,
      compensation or injunctive relief.

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

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

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

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

            "ERISA Event" means (a) (i) the  occurrence  of a reportable  event,
      within  the  meaning of Section  4043 of ERISA,  with  respect to any Plan
      unless the 30-day notice  requirement  with respect to such event has been
      waived by the PBGC, or (ii) the  requirements of subsection (1) of Section
      4043(b) of ERISA  (without  regard to subsection  (2) of such Section) are
      met  with  respect  to a  contributing  sponsor,  as  defined  in  Section
      4001(a)(13) of ERISA,  of a Plan, and an event described in paragraph (9),
      (10),  (11),  (12) or (13) of  Section  4043(c)  of  ERISA  is  reasonably
      expected to occur with respect to such Plan within the  following 30 days;
      (b) the  application  for a minimum funding waiver with respect to a Plan;
      (c) the provision by the  administrator  of any Plan of a notice of intent
      to terminate such Plan pursuant to Section  4041(a)(2) of ERISA (including
      any such notice with  respect to a plan  amendment  referred to in Section
      4041(e) of ERISA);  (d) the  cessation of  operations at a facility of the
      Guarantor or any ERISA Affiliate in the circumstances described in Section
      4062(e)  of  ERISA;  (e) the  withdrawal  by the  Guarantor  or any  ERISA
      Affiliate  from a Multiple  Employer  Plan during a plan year for which it
      was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f)
      the  conditions for the imposition of a lien under Section 302(f) of ERISA
      shall  have been met with  respect  to any Plan;  (g) the  adoption  of an
      amendment to

                                       5
<PAGE>

      a Plan  requiring  the  provision  of  security  to such Plan  pursuant to
      Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to
      terminate a Plan pursuant to Section 4042 of ERISA,  or the  occurrence of
      any event or condition described in Section 4042 of ERISA that constitutes
      grounds  for the  termination  of,  or the  appointment  of a  trustee  to
      administer, a Plan.

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

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

            "Eurodollar Rate" means, for any Interest Period for each Eurodollar
      Rate Advance  comprising part of the same Borrowing,  an interest rate per
      annum equal to the rate per annum  obtained  by dividing  (a) the rate per
      annum  (rounded  upward to the  nearest  whole  multiple of 1/16 of 1% per
      annum)  appearing on Telerate Markets Page 3750 (or any successor page) as
      the  London  interbank  offered  rate  for  deposits  in U.S.  dollars  at
      approximately  11:00 A.M.  (London  time) two  Business  Days prior to the
      first day of such Interest  Period for a term  comparable to such Interest
      Period or, if for any reason such rate is not  available  (but  subject to
      the  provisions  of Section  2.07),  the  average  (rounded  upward to the
      nearest  whole  multiple of 1/16 of 1% per annum,  if such  average is not
      such a multiple) of the rate per annum at which  deposits in U.S.  dollars
      are  offered by the  principal  office of each of the  Reference  Banks in
      London,  England to prime  banks in the London  interbank  market at 11:00
      A.M. (London time) two Business Days before the first day of such Interest
      Period  in  an  amount   substantially  equal  to  such  Reference  Bank's
      Eurodollar   Rate  Advance   comprising  part  of  such  Borrowing  to  be
      outstanding  during such  Interest  Period and for a period  equal to such
      Interest  Period by (b) a  percentage  equal to 100% minus the  Eurodollar
      Rate Reserve Percentage for such Interest Period.

            "Eurodollar  Rate Advance"  means an Advance that bears  interest as
      provided in Section 2.06(a)(ii).

            "Eurodollar Rate Reserve Percentage" for any Interest Period for all
      Eurodollar  Rate Advances  comprising part of the same Borrowing means the
      reserve  percentage  applicable  two Business Days before the first day of
      such  Interest  Period under  regulations  issued from time to time by the
      Board of Governors of the Federal  Reserve  System (or any  successor) for
      determining   the  maximum   reserve   requirement   (including,   without
      limitation,   any  emergency,   supplemental  or  other  marginal  reserve
      requirement)  for a member bank of the Federal  Reserve System in New York
      City with  respect to  liabilities  or assets  consisting  of or including
      Eurocurrency  Liabilities  (or  with  respect  to any  other  category  of
      liabilities that includes deposits by reference to which the interest rate
      on  Eurodollar  Rate Advances is  determined)  having a term equal to such
      Interest Period.

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

            "Extension Date" has the meaning specified in Section 2.18(b).

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

                                       6
<PAGE>

            "GAAP" has the meaning specified in Section 1.03.

            "Guaranteed Obligations" has the meaning specified in Section 7.01.

            "Guaranty" means the provisions of Article VII.

            "Hedge   Agreements"   means  interest  rate  swap,  cap  or  collar
      agreements,  interest  rate  future or  option  contracts,  currency  swap
      agreements,   currency  future  or  option  contracts  and  other  similar
      agreements.

            "Increase Date" has the meaning specified in Section 2.17(a).

            "Increasing Lender" has the meaning specified in Section 2.17(b).

            "Information  Memorandum"  means the  information  memorandum  dated
      April 15, 2004 used by the Agent in connection with the syndication of the
      Commitments.

            "Interest Period" means, for each Eurodollar Rate Advance comprising
      part of the same  Borrowing,  the  period  commencing  on the date of such
      Eurodollar  Rate  Advance or the date of the  Conversion  of any Base Rate
      Advance  into such  Eurodollar  Rate Advance and ending on the last day of
      the period selected by the applicable  Borrower pursuant to the provisions
      below and,  thereafter,  with respect to Eurodollar  Rate  Advances,  each
      subsequent period commencing on the last day of the immediately  preceding
      Interest  Period and ending on the last day of the period selected by such
      Borrower  pursuant  to the  provisions  below.  The  duration of each such
      Interest  Period shall be one,  two,  three or six months,  and subject to
      clause (c) of this  definition,  nine months,  as the applicable  Borrower
      may, upon notice received by the Agent not later than 11:00 A.M. (New York
      City  time) on the  third  Business  Day  prior to the  first  day of such
      Interest Period, select; provided, however, that:

                  (a) the Borrowers may not select any Interest Period that ends
            after the  Termination  Date or, if the Advances have been converted
            to a term loan  pursuant  to Section  2.05 prior to such  selection,
            that ends after the Maturity Date;

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

                  (c) in the case of any such Borrowing, the Borrowers shall not
            be  entitled to select an Interest  Period  having  duration of nine
            months  unless,  by 2:00  P.M.  (New  York  City  time) on the third
            Business Day prior to the first day of such  Interest  Period,  each
            Lender notifies the Agent that such Lender will be providing funding
            for such  Borrowing  with such  Interest  Period (the failure of any
            Lender to so respond by such time being  deemed for all  purposes of
            this  Agreement  as an  objection  by such  Lender to the  requested
            duration of such Interest  Period);  provided that, if any or all of
            the  Lenders  object  to the  requested  duration  of such  Interest
            Period, the duration of the Interest Period for such Borrowing shall
            be one,  two,  three or six months,  as  specified  by the  Borrower
            requesting  such Borrowing in the applicable  Notice of Borrowing as
            the desired alternative to an Interest Period of nine months;

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

                  (e) whenever the first day of any Interest  Period occurs on a
            day of an initial  calendar  month for which there is no numerically
            corresponding day in the calendar month that

                                       7
<PAGE>

            succeeds such initial calendar month by the number of months in such
            Interest Period, such Interest Period shall end on the last Business
            Day of such succeeding calendar month.

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

            "Lenders" means the Initial Lenders, each Assuming Lender that shall
      become a party  hereto  pursuant  to Section  2.17 or 2.18 and each Person
      that shall become a party hereto pursuant to Section 9.07.

            "Lien"  means  any  lien,  security  interest  or  other  charge  or
      encumbrance  of any kind,  or any other type of  preferential  arrangement
      intended  to  provide  security  for  the  payment  or  performance  of an
      obligation,  including,  without limitation, the lien or retained security
      title of a  conditional  vendor  and any  easement,  right of way or other
      encumbrance on title to real property.

            "Loan Party" means each Borrower and the Guarantor.

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

            "Material Adverse Effect" means a material adverse effect on (a) the
      business, condition (financial or otherwise),  operations,  performance or
      properties of the Guarantor or the Guarantor and its Subsidiaries taken as
      a whole, (b) the rights and remedies of the Agent or any Lender under this
      Agreement  or any Note or (c) the ability of any Loan Party to perform its
      obligations under this Agreement or any Note.

            "Maturity  Date" means the earlier of (a) the first  anniversary  of
      the  Termination  Date  and (b) the  date of  termination  in whole of the
      aggregate Commitments pursuant to Section 2.04 or 6.01.

            "Moody's" means Moody's Investors Service, Inc.

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

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

            "Non-Consenting   Lender"  has  the  meaning  specified  in  Section
      2.18(b).

            "Note" means a promissory note of a Borrower payable to the order of
      any Lender,  delivered  pursuant to a request  made under  Section 2.15 in
      substantially  the form of  Exhibit A  hereto,  evidencing  the  aggregate
      indebtedness  of such Borrower to such Lender  resulting from the Advances
      made by such Lender to such Borrower.

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

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

            "Permitted  Liens"  means  such  of the  following  as to  which  no
      enforcement,  collection,  execution, levy or foreclosure proceeding shall
      have been commenced:  (a) Liens for taxes,  assessments  and  governmental
      charges  or levies to the  extent not  required  to be paid under  Section
      5.01(b) hereof; (b) Liens

                                       8
<PAGE>

      imposed by law, such as materialmen's,  mechanics',  carriers',  workmen's
      and  repairmen's  Liens and other  similar  Liens  arising in the ordinary
      course of business securing  obligations that are not overdue for a period
      of more  than 30 days or that are  being  contested  in good  faith and by
      appropriate  proceedings that prevent the forfeiture or sale of the assets
      subject to such Lien; (c) pledges or deposits to secure  obligations under
      workers'  compensation laws or similar  legislation or to secure public or
      statutory  obligations  or,  in any such  case,  to  secure  reimbursement
      obligations  under  letters  of credit or bonds  issued  to  support  such
      obligations;  and (d) easements,  rights of way and other  encumbrances on
      title to real property that do not render title to the property encumbered
      thereby  unmarketable  or  materially  adversely  affect  the  use of such
      property for its present purposes.

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

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

            "Post-Petition Interest" has the meaning specified in Section 7.05.

            "PTR Scheme"  shall mean the  Provisional  Treaty  Relief  Scheme as
      described in Inland Revenue Guidelines dated July 1999 and administered by
      the Inland Revenue's Centre for Non-Residents.

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

            "Reference Banks" means Citibank, ABN AMRO Bank N.V., JPMorgan Chase
      Bank and HSBC Bank USA.

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

            "Required  Lenders"  means  at any  time  Lenders  owed  at  least a
      majority in interest of the then aggregate  unpaid principal amount of the
      Advances  owing  to  Lenders,  or,  if no such  principal  amount  is then
      outstanding,  Lenders  having  at  least a  majority  in  interest  of the
      Commitments.

            "S&P"  means  Standard  &  Poor's,  a  division  of The  McGraw-Hill
      Companies, Inc.

            "Single  Employer Plan" means a single  employer plan, as defined in
      Section  4001(a)(15) of ERISA, that (a) is maintained for employees of the
      Guarantor or any ERISA  Affiliate  and no Person other than the  Guarantor
      and the ERISA  Affiliates or (b) was so maintained and in respect of which
      the

                                       9
<PAGE>

      Guarantor or any ERISA  Affiliate  could have liability under Section 4069
      of ERISA in the event such plan has been or were to be terminated.

            "Subordinated  Obligations"  has the  meaning  specified  in Section
      7.05.

            "Subsidiary" of any Person means any corporation, partnership, joint
      venture, limited liability company, trust or estate of which (or in which)
      more  than 50% of (a) the  issued  and  outstanding  Voting  Stock of such
      Person,  (b) the  interest  in the  capital  or  profits  of such  limited
      liability  company,  partnership  or joint  venture or (c) the  beneficial
      interest  in such trust or estate is at the time  directly  or  indirectly
      owned or controlled by such Person,  by such Person and one or more of its
      other Subsidiaries or by one or more of such Person's other Subsidiaries.

            "Term Loan Conversion  Date" means the Termination Date on which all
      Advances  outstanding on such date are converted into a term loan pursuant
      to Section 2.05.

            "Term Loan Election" has the meaning specified in Section 2.05.

            "Termination Date" means the earlier of (a) May 23, 2005, subject to
      the  extension  thereof  pursuant  to  Section  2.18  and (b) the  date of
      termination in whole of the Commitments  pursuant to Section 2.04 or 6.01;
      provided,  however,  that the  Termination  Date of any  Lender  that is a
      Non-Consenting  Lender to any requested extension pursuant to Section 2.18
      shall  be  the  Termination  Date  in  effect  immediately  prior  to  the
      applicable Extension Date for all purposes of this Agreement.

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

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

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

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

            SECTION 2.01. The Advances.  Each Lender  severally  agrees,  on the
terms and conditions  hereinafter  set forth,  to make Advances to the Borrowers
from time to time on any Business Day during the period from the Effective  Date
until the  Termination  Date in an  aggregate  amount  not to exceed at any time
outstanding  such Lender's  Commitment.  Each Borrowing shall be in an aggregate
amount of  $10,000,000  or an integral  multiple of $1,000,000 in excess thereof
and  shall  consist  of  Advances  of the same  Type made on the same day by the
Lenders ratably according to their respective Commitments.  Within the limits of
each  Lender's  Commitment,  the  Borrowers  may borrow under this Section 2.01,
prepay pursuant to Section 2.09 and reborrow under this Section 2.01.

            SECTION 2.02. Making the Advances.  (a) Each Borrowing shall be made
on notice, given not later than (x) 11:00 A.M. (New York City time) on the third
Business  Day  prior  to the  date of the  proposed  Borrowing  in the case of a
Borrowing  consisting  of  Eurodollar  Rate Advances or (y) 11:00 A.M. (New York
City  time) on the date of the  proposed  Borrowing  in the case of a  Borrowing
consisting of Base Rate Advances, by the applicable Borrower to the Agent, which
shall give to each Lender prompt notice thereof by telecopier. Each such

                                       10
<PAGE>

notice of a Borrowing (a "Notice of Borrowing") shall be by telephone, confirmed
immediately  in writing,  or telecopier in  substantially  the form of Exhibit B
hereto,  specifying therein the requested (i) date of such Borrowing,  (ii) Type
of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing,
and (iv) in the case of a Borrowing  consisting  of  Eurodollar  Rate  Advances,
initial  Interest Period for each such Advance.  Each Lender shall,  before 1:00
P.M. (New York City time) on the date of such  Borrowing  make available for the
account of its Applicable Lending Office to the Agent at the Agent's Account, in
same day funds,  such  Lender's  ratable  portion of such  Borrowing.  After the
Agent's receipt of such funds and upon fulfillment of the applicable  conditions
set forth in  Article  III,  the Agent  will make such  funds  available  to the
Borrower at the Agent's address referred to in Section 9.02.

            (b)   Anything   in   subsection   (a)   above   to   the   contrary
notwithstanding,  (i) the Borrowers may not select  Eurodollar Rate Advances for
any Borrowing if the aggregate amount of such Borrowing is less than $10,000,000
or if the obligation of the Lenders to make  Eurodollar Rate Advances shall then
be  suspended  pursuant  to Section  2.07 or 2.11 and (ii) the  Eurodollar  Rate
Advances may not be outstanding as part of more than six separate Borrowings.

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

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

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

            SECTION 2.03.  Fees. (a) Facility Fee. The Borrowers agree to pay to
the Agent for the account of each Lender a facility fee on the aggregate  amount
of such Lender's  Commitment from the Effective Date in the case of each Initial
Lender and from the effective date  specified in the Assumption  Agreement or in
the Assignment  and Acceptance  pursuant to which it became a Lender in the case
of each other Lender until the Termination Date at a rate per annum equal to the
Applicable  Percentage in effect from time to time, payable in arrears quarterly
on the last day of each March, June, September and December, commencing June 30,
2004, and on the Termination Date.

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

            SECTION  2.04.  Termination  or  Reduction of the  Commitments.  (a)
Optional.  The Borrowers shall have the right, upon at least five Business Days'
notice to the Agent, to terminate in whole or permanently

                                       11
<PAGE>

reduce ratably in part the unused portions of the respective  Commitments of the
Lenders,  provided that each partial  reduction shall be in the aggregate amount
of $10,000,000 or an integral multiple of $1,000,000 in excess thereof.

            (b) Mandatory.  On the Termination  Date, if the Borrowers have made
the Term Loan Election in accordance  with Section 2.05 prior to such date,  and
from  time  to  time  thereafter  upon  each  prepayment  of the  Advances,  the
Commitments of the Lenders shall be automatically  and permanently  reduced on a
pro rata  basis by an amount  equal to the  amount  by which  (i) the  aggregate
Commitments  immediately  prior to such  reduction  exceeds  (ii) the  aggregate
unpaid principal amount of all Advances outstanding at such time.

            SECTION 2.05. Repayment of Advances. The Borrowers shall, subject to
the next succeeding sentence,  repay to the Agent for the ratable account of the
Lenders on the Termination  Date the aggregate  principal amount of the Advances
then  outstanding.  The Borrowers may, upon not less than 15 days' notice to the
Agent,  elect  (the  "Term  Loan  Election")  to  convert  all of  the  Advances
outstanding  on the  Termination  Date in  effect  at such time into a term loan
which the  Borrowers  shall repay in full ratably to the Lenders on the Maturity
Date; provided that the Term Loan Election may not be exercised if a Default has
occurred and is continuing on the date of notice of the Term Loan Election or on
the date on  which  the Term  Loan  Election  is to be  effected.  All  Advances
converted  into a term loan  pursuant  to this  Section  2.05 shall  continue to
constitute  Advances  except that the  Borrowers  may not  reborrow  pursuant to
Section  2.01  after all or any  portion  of such  Advances  have  been  prepaid
pursuant to Section 2.09.

            SECTION  2.06.  Interest on Advances.  (a) Scheduled  Interest.  The
Borrowers  shall pay  interest on the unpaid  principal  amount of each  Advance
owing to each Lender from the date of such Advance until such  principal  amount
shall be paid in full, at the following rates per annum:

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

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

            (b) Default Interest. Upon the occurrence and during the continuance
of an Event of  Default  under  Section  6.01(a),  the Agent  may,  and upon the
request of the Required  Lenders  shall,  require the  Borrowers to pay interest
("Default Interest") on (i) the unpaid principal amount of each Advance owing to
each  Lender,  payable in arrears on the dates  referred to in clause  (a)(i) or
(a)(ii) above,  at a rate per annum equal at all times to 2% per annum above the
rate per annum required to be paid on such Advance  pursuant to clause (a)(i) or
(a)(ii) above and (ii) to the fullest extent permitted by law, the amount of any
interest,  fee or other amount payable hereunder that is not paid when due, from
the date such  amount  shall be due  until  such  amount  shall be paid in full,
payable in arrears on the date such amount  shall be paid in full and on demand,
at a rate per annum  equal at all times to 2% per annum above the rate per annum
required  to be paid on Base Rate  Advances  pursuant  to clause  (a)(i)  above;
provided,  however,  that  following  acceleration  of the Advances  pursuant to
Section 6.01,  Default Interest shall accrue and be payable hereunder whether or
not previously required by the Agent.

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

                                       12
<PAGE>

rate determined by the Agent for purposes of Section 2.06(a)(i) or (ii), and the
rate, if any,  furnished by each  Reference  Bank for the purpose of determining
the interest rate under Section 2.06(a)(ii).

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

            (c) If any  Borrower  shall  fail  to  select  the  duration  of any
Interest  Period  for any  Eurodollar  Rate  Advances  in  accordance  with  the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Agent will  forthwith so notify such  Borrower and the Lenders and such Advances
will  automatically,  on the  last  day of the  then  existing  Interest  Period
therefor, Convert into Base Rate Advances.

            (d) On the date on which the aggregate  unpaid  principal  amount of
Eurodollar Rate Advances  comprising any Borrowing shall be reduced,  by payment
or prepayment  or  otherwise,  to less than  $10,000,000,  such  Advances  shall
automatically Convert into Base Rate Advances.

            (e) Upon the occurrence  and during the  continuance of any Event of
Default  under  Section   6.01(a),   (i)  each   Eurodollar  Rate  Advance  will
automatically,  on the last day of the then existing  Interest Period  therefor,
Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make,
or to Convert Advances into, Eurodollar Rate Advances shall be suspended.

            (f) If Telerate  Markets Page 3750 is unavailable and fewer than two
Reference  Banks furnish  timely  information to the Agent for  determining  the
Eurodollar Rate for any Eurodollar Rate Advances,

            (i) the Agent shall  forthwith  notify the Borrowers and the Lenders
      that the  interest  rate cannot be  determined  for such  Eurodollar  Rate
      Advances,

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

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

            SECTION 2.08. Optional Conversion of Advances.  Each Borrower may on
any Business  Day, upon notice given to the Agent not later than 11:00 A.M. (New
York City  time) on the  third  Business  Day prior to the date of the  proposed
Conversion and subject to the provisions of Sections 2.07 and 2.11,  Convert all
or any portion of the Advances of one Type  comprising  the same  Borrowing into
Advances of the other Type; provided, however, that any Conversion of Eurodollar
Rate Advances  into Base Rate Advances  shall be made only on the last day of an
Interest Period for such  Eurodollar Rate Advances,  any Conversion of Base Rate
Advances into  Eurodollar  Rate Advances shall be in an amount not less than the
minimum  amount  specified in Section  2.02(b) and no Conversion of any Advances
shall result in more separate  Borrowings than permitted under Section  2.02(b).
Each such notice of a Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion,  (ii) the Advances to be Converted, and
(iii) if such Conversion is into  Eurodollar Rate Advances,  the duration of the
initial  Interest Period for each such Advance.  Each notice of Conversion shall
be irrevocable and binding on the applicable Borrower.

            SECTION  2.09.  Prepayments  of Advances.  Each  Borrower  may, upon
notice at least two Business Days' prior to the date of such prepayment,  in the
case of Eurodollar Rate Advances, and not later than

                                       13
<PAGE>

11:00 A.M. (New York City time) on the date of such  prepayment,  in the case of
Base Rate  Advances,  to the  Agent  stating  the  proposed  date and  aggregate
principal  amount of the  prepayment,  and if such notice is given the  Borrower
giving  such  notice  shall,  prepay  the  outstanding  principal  amount of the
Advances  comprising  part of the same  Borrowing  in whole or  ratably in part,
together with accrued  interest to the date of such  prepayment on the principal
amount prepaid; provided,  however, that (x) each partial prepayment shall be in
an  aggregate  principal  amount  of  $10,000,000  or an  integral  multiple  of
$1,000,000  in excess  thereof and (y) in the event of any such  prepayment of a
Eurodollar  Rate  Advance,  such  Borrower  shall be obligated to reimburse  the
Lenders in respect thereof pursuant to Section 9.04(c).

            SECTION  2.10.  Increased  Costs.  (a)  If,  due to  either  (i) the
introduction  of or  any  change  in or in  the  interpretation  of  any  law or
regulation  after the date hereof,  or (ii) the compliance with any guideline or
request issued after the date hereof from any central bank or other governmental
authority  including,  without  limitation,  any agency of the European Union or
similar monetary or multinational  authority (whether or not having the force of
law),  there shall be any increase in the cost to any Lender of agreeing to make
or making,  funding or  maintaining  Eurodollar  Rate  Advances  (excluding  for
purposes of this Section 2.10 any such increased  costs resulting from (i) Taxes
or Other Taxes (as to which  Section 2.13 shall  govern) and (ii) changes in the
basis of taxation of overall  net income or overall  gross  income by the United
States or by the  foreign  jurisdiction  or state  under the laws of which  such
Lender is  organized  or has its  Applicable  Lending  Office  or any  political
subdivision thereof), then the Borrowers shall from time to time, upon demand by
such Lender (with a copy of such demand to the Agent),  pay to the Agent for the
account of such Lender additional  amounts  sufficient to compensate such Lender
for such increased cost; provided,  however, that before making any such demand,
each Lender  agrees to use  reasonable  efforts  (consistent  with its  internal
policy  and  legal  and  regulatory   restrictions)  to  designate  a  different
Applicable  Lending  Office if the making of such a designation  would avoid the
need for,  or reduce the amount of,  such  increased  cost and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.
A  certificate  as to the  amount  of  such  increased  cost,  submitted  to the
Borrowers and the Agent by such Lender,  shall be conclusive and binding for all
purposes, absent manifest error.

            (b) If  any  Lender  determines  that  compliance  with  any  law or
regulation  or any  guideline or request  taking effect or issued after the date
hereof from any central  bank or other  governmental  authority  (whether or not
having the force of law) affects or would affect the amount of capital  required
or expected to be maintained by such Lender or any corporation  controlling such
Lender and that the amount of such  capital  is  increased  by or based upon the
existence of such Lender's commitment to lend hereunder and other commitments of
this type,  then,  upon demand by such Lender (with a copy of such demand to the
Agent),  the  Borrowers  shall pay to the Agent for the account of such  Lender,
from time to time as specified by such Lender,  additional amounts sufficient to
compensate such Lender or such  corporation in the light of such  circumstances,
to the extent that such Lender reasonably determines such increase in capital to
be allocable to the existence of such Lender's  commitment to lend hereunder.  A
certificate as to such amounts  submitted to the Borrowers and the Agent by such
Lender shall be conclusive and binding for all purposes, absent manifest error.

            (c)   Failure  or  delay  on  the  part  of  any  Lender  to  demand
compensation  pursuant to this  Section  shall not  constitute  a waiver of such
Lender's right to demand such  compensation;  provided that the Borrowers  shall
not be  required  to  compensate  a  Lender  pursuant  to this  Section  for any
increased  costs or  reductions  incurred more than six months prior to the date
that such Lender notifies the Borrowers of the circumstances giving rise to such
increased  costs  or  reductions  and  of  such  Lender's   intention  to  claim
compensation  therefor;  provided further that, if the circumstances giving rise
to such increased  costs or reductions  cause such increased costs or reductions
to be retroactive, then the six-month period referred to above shall be extended
to include the period of retroactive effect thereof.

            SECTION 2.11.  Illegality.  Notwithstanding  any other  provision of
this Agreement, if any Lender shall notify the Agent that the introduction of or
any  change  in or in the  interpretation  of any  law or  regulation  makes  it
unlawful, or any central bank or other governmental authority asserts that it is
unlawful,  for any  Lender  or its  Eurodollar  Lending  Office to  perform  its
obligations  hereunder to make  Eurodollar  Rate Advances or to fund or maintain
Eurodollar  Rate  Advances  hereunder,  (a) each  Eurodollar  Rate  Advance will
automatically,  upon such  demand,  Convert into a Base Rate Advance and (b) the
obligation  of the  Lenders  to make  Eurodollar  Rate  Advances  or to  Convert
Advances into  Eurodollar Rate Advances shall be suspended until the Agent shall
notify  the  Borrowers  and the  Lenders  that the  circumstances  causing  such
suspension no longer exist; provided, however, that

                                       14
<PAGE>

before  making any such demand,  each Lender  agrees to use  reasonable  efforts
(consistent  with its internal policy and legal and regulatory  restrictions) to
designate  a  different  Eurodollar  Lending  Office  if the  making  of  such a
designation would allow such Lender or its Eurodollar Lending Office to continue
to perform its  obligations to make  Eurodollar  Rate Advances or to continue to
fund or maintain  Eurodollar  Rate  Advances  and would not,  in the  reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender.

            SECTION 2.12.  Payments and  Computations.  (a) The Borrowers  shall
make  each  payment  hereunder,  irrespective  of any right of  counterclaim  or
set-off,  not later than 11:00 A.M.  (New York City time) on the day when due in
U.S.  dollars to the Agent at the Agent's  Account in same day funds.  The Agent
will promptly  thereafter  cause to be  distributed  like funds  relating to the
payment of  principal or interest or facility  fees ratably  (other than amounts
payable  pursuant  to Section  2.10,  2.13 or  9.04(c))  to the  Lenders for the
account of their respective  Applicable Lending Offices, and like funds relating
to the payment of any other amount  payable to any Lender to such Lender for the
account  of its  Applicable  Lending  Office,  in  each  case to be  applied  in
accordance with the terms of this Agreement. Upon any Assuming Lender becoming a
Lender hereunder as a result of a Commitment  Increase  pursuant to Section 2.17
or an extension of the  Termination  Date pursuant to Section 2.18, and upon the
Agent's  receipt of such  Lender's  Assumption  Agreement  and  recording of the
information  contained  therein in the Register,  from and after the  applicable
Increase  Date or Extension  Date,  as the case may be, the Agent shall make all
payments hereunder and under any Notes issued in connection therewith in respect
of the interest assumed thereby to the Assuming  Lender.  Upon its acceptance of
an Assignment and Acceptance and recording of the information  contained therein
in the Register  pursuant to Section 9.07(c),  from and after the effective date
specified in such Assignment and  Acceptance,  the Agent shall make all payments
hereunder and under any Notes in respect of the interest assigned thereby to the
Lender  assignee  thereunder,  and the parties to such Assignment and Acceptance
shall make all  appropriate  adjustments  in such  payments for periods prior to
such effective date directly between themselves.

            (b) Each  Borrower  hereby  authorizes  each  Lender,  if and to the
extent  payment owed to such Lender is not made when due  hereunder or under the
Note held by such Lender, to charge from time to time against any or all of such
Borrower's accounts with such Lender any amount so due.

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

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

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

            SECTION 2.13.  Taxes.  (a) Any and all payments by any Loan Party to
or for the  account of any Lender or the Agent  hereunder  or under the Notes or
any other documents to be delivered  hereunder shall be made, in accordance with
Section 2.12 or the  applicable  provisions  of such other  documents,  free and
clear of and without deduction for any and all present or future taxes,  levies,
imposts, deductions, charges or withholdings, and all

                                       15
<PAGE>

liabilities with respect thereto,  excluding, in the case of each Lender and the
Agent,  taxes imposed on its overall net income,  and franchise taxes imposed on
it in lieu of net income taxes, by the jurisdiction under the laws of which such
Lender  or the  Agent  (as  the  case  may  be) is  organized  or any  political
subdivision  thereof  and,  in the case of each  Lender,  taxes  imposed  on its
overall  net income,  and  franchise  taxes  imposed on it in lieu of net income
taxes,  by the  jurisdiction of such Lender's  Applicable  Lending Office or any
political  subdivision  thereof and  excluding  such taxes imposed by the United
States or the United  Kingdom that are payable as of the date such Lender or the
Agent became a party to this Agreement  (all such  non-excluded  taxes,  levies,
imposts,  deductions,  charges,  withholdings  and  liabilities  in  respect  of
payments hereunder or under the Notes being hereinafter referred to as "Taxes").
If any Loan  Party  shall be  required  by law to deduct  any  Taxes  from or in
respect of any sum payable hereunder or under any Note or any other documents to
be delivered  hereunder to any Lender or the Agent, (i) the sum payable shall be
increased  as may be  necessary  so that after  making all  required  deductions
(including  deductions  applicable to additional sums payable under this Section
2.13) such Lender or the Agent (as the case may be)  receives an amount equal to
the sum it would have received had no such  deductions been made, (ii) such Loan
Party  shall make such  deductions  and (iii) such Loan Party shall pay the full
amount  deducted  to the  relevant  taxation  authority  or other  authority  in
accordance with applicable law.

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

            (c) The Borrowers  shall indemnify each Lender and the Agent for and
hold it harmless  against  the full  amount of Taxes or Other Taxes  (including,
without limitation, taxes of any kind imposed or asserted by any jurisdiction on
amounts  payable  under this Section  2.13) imposed on or paid by such Lender or
the Agent (as the case may be) and any liability (including penalties,  interest
and expenses)  arising therefrom or with respect thereto.  This  indemnification
shall be made within 30 days from the date such Lender or the Agent (as the case
may be) makes written demand therefor.

            (d)  Within 45 days  after  the date of any  payment  of Taxes,  the
applicable Loan Party shall furnish to the Agent, at its address  referred to in
Section  9.02,  the original or a certified  copy of a receipt  evidencing  such
payment to the extent such a receipt is issued therefor,  or other written proof
of payment thereof that is reasonably  satisfactory to the Agent. In the case of
any payment  hereunder or under the Notes or any other documents to be delivered
hereunder  by or on behalf of any Loan Party (other than OFP) through an account
or branch  outside the United States or by or on behalf of any Loan Party (other
than OFP) by a payor  that is not a United  States  person,  if such Loan  Party
determines that no Taxes are payable in respect  thereof,  such Loan Party shall
furnish, or shall cause such payor to furnish, to the Agent, at such address, an
opinion of counsel  acceptable  to the Agent stating that such payment is exempt
from Taxes.  For purposes of this  subsection (d) and subsection  (e), the terms
"United States" and "United States person" shall have the meanings  specified in
Section 7701 of the Internal Revenue Code.

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

                                       16
<PAGE>

include (in addition to  withholding  taxes that may be imposed in the future or
other amounts otherwise  includable in Taxes) United States  withholding tax, if
any, applicable with respect to the Lender assignee on such date. If any form or
document  referred  to  in  this  subsection  (e)  requires  the  disclosure  of
information,  other than  information  necessary  to compute the tax payable and
information  required on the date hereof by Internal Revenue Service form W-8BEN
or W-8ECI, that the Lender reasonably  considers to be confidential,  the Lender
shall give notice  thereof to OFI and OCI and shall not be  obligated to include
in such form or document such confidential information.

            (f) For any  period  with  respect  to which a Lender  has failed to
provide OFI and OCI with the  appropriate  form,  certificate  or other document
described in Section  2.13(e)  (other than if such failure is due to a change in
law, or in the interpretation or application  thereof,  occurring  subsequent to
the date on which a form,  certificate or other document originally was required
to be provided, or if such form,  certificate or other document otherwise is not
required  under  subsection  (e) above),  such  Lender  shall not be entitled to
indemnification  under  Section  2.13(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure;  provided,  however,  that should a
Lender  become  subject  to Taxes  because  of its  failure  to  deliver a form,
certificate or other document required hereunder,  the Borrowers shall take such
steps as the  Lender  shall  reasonably  request to assist the Lender to recover
such Taxes.

            (g) In respect of Advances to OFP,  each Lender  shall  designate an
Applicable  Lending Office that is beneficially  entitled to interest under such
Advances and that,  on the date of this  Agreement or (in the case of any Person
that  becomes a Lender  hereunder  by means of an  assignment)  on the date such
Lender  becomes a party hereto is either (i) within the charge to United Kingdom
corporation tax in respect of interest in respect of an advance by a person that
was a bank (for the  purposes  of Section 349 Income and  Corporation  Taxes Act
1988) at the time the advance was made; or (ii) resident in a country with which
the United Kingdom has a double  taxation  agreement  which makes  provision for
full exemption from United Kingdom  taxation on interest payable by OFP pursuant
to this Agreement and does not carry on business in the United Kingdom through a
permanent  establishment  with which the payment is effectively  connected (each
such bank which is so resident  being  hereinafter in this Section 2.13 referred
to as a "Treaty Lender");  or (iii) a company resident in the United Kingdom, or
a partnership  each member of which is a company  resident in the United Kingdom
for United Kingdom tax purposes; or (iv) a company not so resident in the United
Kingdom  which  carries  on a trade in the  United  Kingdom  through a branch or
agency and which is required to bring into account interest payable to it by OFP
pursuant to this Agreement in computing its chargeable  profits for the purposes
of Section  11(2) of the Income and  Corporation  Taxes Act 1988.  If any Lender
does not or ceases to comply with clause  (i),  (ii),  (iii) or (iv) above other
than by reason of any  change  after  the date of this  Agreement  in (or in the
interpretation,  administration  or application  of) any law or double  taxation
agreement  or any  published  practice  or  concession  of any  relevant  taxing
authority,  the Borrowers  shall not be required to compensate such Lender under
Section 2.13(a) or 2.13(c) for the amount of Taxes imposed by the United Kingdom
in consequence. Any Lender to whom clause (ii) above is relevant shall cooperate
with OFP in promptly completing any procedural  formalities necessary for OFP to
obtain  authorization to make interest  payments without deduction for UK income
tax.

            (h) Each  Treaty  Lender  irrevocably  appoints  the Agent to act as
syndicate  manager  under,  and  authorizes  the Agent to operate,  and take any
action  necessary  or desirable  under,  the PTR Scheme in  connection  with any
Borrowing  hereunder.  Each  Treaty  Lender  shall  cooperate  with the Agent in
completing any procedural  formalities necessary under the PTR Scheme, and shall
promptly  supply to the Agent  such  information  as the  Agent may  request  in
connection  with the  operation of the PTR Scheme.  Each Treaty  Lender  without
limiting the liability of any Borrower under this Agreement,  shall, within five
Business Days of demand,  indemnify the Agent for any liability or loss incurred
by the Agent as a result of the Agent acting as syndicate  manager under the PTR
Scheme in connection  with the Treaty  Lender's  participation  in any Borrowing
(except  to the extent  that the  liability  or loss  arises  directly  from the
Agent's  gross  negligence  or willful  misconduct).  Each Treaty  Lender shall,
within five Business Days of demand,  indemnify  each Borrower for any Tax which
such  Borrower  becomes  liable to pay in respect of any  payments  made to such
Treaty Lender arising as a result of any incorrect  information supplied by such
Treaty Lender which results in a provisional  authority  issued by the UK Inland
Revenue under the PTR Scheme being withdrawn. Each Borrower acknowledges that it
is fully aware of its contingent  obligations under the PTR Scheme and shall (i)
promptly  inform the Agent of all actions  required to be performed by the Agent
under the PTR Scheme,  (ii) promptly supply to the Agent such information as the
Agent may request in connection with the operation of the PTR Scheme;  and (iii)
act in accordance with any provisional notice issued by the UK Inland

                                       17
<PAGE>

Revenue under the PTR Scheme. The Agent agrees to provide, as soon as reasonably
practicable,  a copy of any  provisional  authority  issued  to it under the PTR
Scheme in  connection  with any Borrowing to those  Borrowers  specified in such
provisional authority.  Each of the Borrowers,  the Treaty Lenders and the Agent
acknowledges that the Agent: (i) is entitled to rely completely upon information
provided to it in connection with this clause;  (ii) is not obliged to undertake
any inquiry  into the  accuracy of such  information  nor into the status of the
Treaty Lender or, as the case may be, Borrower  providing such information;  and
(iii) shall have no liability to any person for the accuracy of any  information
it submits to the UK Inland Revenue in connection with this clause.

            (i) Any Lender claiming any additional  amounts payable  pursuant to
this Section 2.13 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory  restrictions) to change the jurisdiction of its
Eurodollar  Lending  Office if the making of such a change  would avoid the need
for, or reduce the amount of, any such  additional  amounts that may  thereafter
accrue and would not, in the  reasonable  judgment of such Lender,  be otherwise
disadvantageous to such Lender.

            SECTION 2.14.  Sharing of Payments,  Etc. If any Lender shall obtain
any payment (whether voluntary,  involuntary,  through the exercise of any right
of set-off,  or  otherwise)  on account of the Advances  owing to it (other than
pursuant to Section  2.10,  2.13 or  9.04(c)) in excess of its ratable  share of
payments on account of the  Advances  obtained by all the  Lenders,  such Lender
shall  forthwith  purchase  from the other  Lenders such  participations  in the
Advances owing to them as shall be necessary to cause such purchasing  Lender to
share the excess payment ratably with each of them; provided,  however,  that if
all or any  portion of such excess  payment is  thereafter  recovered  from such
purchasing  Lender,  such  purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing  Lender the purchase price to the extent of
such  recovery  together  with an amount equal to such  Lender's  ratable  share
(according  to the  proportion  of (i)  the  amount  of such  Lender's  required
repayment to (ii) the total amount so recovered from the  purchasing  Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total  amount so  recovered.  Each  Borrower  agrees  that any  Lender so
purchasing a  participation  from another  Lender  pursuant to this Section 2.14
may, to the fullest extent permitted by law,  exercise all its rights of payment
(including the right of set-off) with respect to such  participation as fully as
if such Lender were the direct  creditor of such  Borrower in the amount of such
participation.

            SECTION 2.15.  Evidence of Debt.  (a) Each Lender shall  maintain in
accordance  with its usual  practice  an  account  or  accounts  evidencing  the
indebtedness  of each Borrower to such Lender  resulting from each Advance owing
to such  Lender  from time to time,  including  the  amounts  of  principal  and
interest  payable and paid to such Lender from time to time hereunder in respect
of Advances made to such Borrower.  The Borrowers  agree that upon notice by any
Lender to the Borrowers  (with a copy of such notice to the Agent) to the effect
that a Note is  required  or  appropriate  in order for such  Lender to evidence
(whether for purposes of pledge,  enforcement  or otherwise)  the Advances owing
to, or to be made by, such Lender,  the  Borrowers  shall  promptly  execute and
deliver to such Lender a Note payable to the order of such Lender in a principal
amount up to the Commitment of such Lender.

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

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

                                       18
<PAGE>

            SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and each Borrower agrees that it shall use such proceeds)  solely for
general corporate purposes of the Borrowers and their  Subsidiaries,  including,
without limitation, to fund acquisitions otherwise not prohibited hereunder.

            SECTION  2.17.  Increase  in  the  Aggregate  Commitments.  (a)  The
Guarantor  may, at any time but in any event not more than once in any  calendar
year prior to the  Termination  Date,  by notice to the Agent,  request that the
aggregate  amount of the Commitments be increased by an amount of $10,000,000 or
an integral  multiple thereof (each a "Commitment  Increase") to be effective as
of a date that is at least 90 days prior to the scheduled  Termination Date then
in effect (the "Increase Date") as specified in the related notice to the Agent;
provided,  however  that (i) in no  event  shall  the  aggregate  amount  of the
Commitments  at any  time  exceed  $1,000,000,000  and  (ii) on the  date of any
request by the Guarantor for a Commitment  Increase and on the related  Increase
Date the applicable conditions set forth in Article III shall be satisfied.

            (b) The Agent shall promptly  notify the Lenders of a request by the
Guarantor for a Commitment Increase, which notice shall include (i) the proposed
amount of such requested  Commitment  Increase,  (ii) the proposed Increase Date
and (iii) the date by which Lenders  wishing to  participate  in the  Commitment
Increase  must  commit  to  an  increase  in  the  amount  of  their  respective
Commitments (the "Commitment  Date"). Each Lender that is willing to participate
in such requested  Commitment  Increase (each an "Increasing  Lender") shall, in
its  sole  discretion,  give  written  notice  to the  Agent  on or prior to the
Commitment Date of the amount by which it is willing to increase its Commitment.
If the Lenders  notify the Agent that they are willing to increase the amount of
their  respective  Commitments by an aggregate amount that exceeds the amount of
the requested  Commitment  Increase,  the requested Commitment Increase shall be
allocated  among the Lenders  willing to participate  therein in such amounts as
are agreed between the Guarantor and the Agent.

            (c) Promptly  following each Commitment Date, the Agent shall notify
the  Guarantor  as to the  amount,  if any,  by which the Lenders are willing to
participate in the requested  Commitment  Increase.  If the aggregate  amount by
which the  Lenders  are  willing  to  participate  in any  requested  Commitment
Increase  on any such  Commitment  Date is less  than the  requested  Commitment
Increase, then the Guarantor may extend offers to one or more Eligible Assignees
to participate in any portion of the requested  Commitment Increase that has not
been committed to by the Lenders as of the applicable Commitment Date; provided,
however,  that the  Commitment  of each such  Eligible  Assignee  shall be in an
amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof.

            (d) On each Increase  Date,  each Eligible  Assignee that accepts an
offer to  participate  in a requested  Commitment  Increase in  accordance  with
Section  2.17(b)  (each such Eligible  Assignee and each Eligible  Assignee that
agrees to an  extension  of the  Termination  Date in  accordance  with  Section
2.18(c),  an "Assuming Lender") shall become a Lender party to this Agreement as
of such Increase  Date and the  Commitment  of each  Increasing  Lender for such
requested  Commitment  Increase  shall be so increased by such amount (or by the
amount  allocated  to such  Lender  pursuant  to the last  sentence  of  Section
2.17(b)) as of such Increase Date; provided,  however, that the Agent shall have
received on or before such Increase Date the following, each dated such date:

            (i) (A) certified copies of resolutions of the Board of Directors of
      each Loan Party or the  Executive  Committee of such Board  approving  the
      Commitment  Increase  and (B) an opinion of counsel  for the Loan  Parties
      (which may be in-house counsel), in substantially the form of Exhibits D-1
      and D-2 hereto;

            (ii) an assumption  agreement from each Assuming Lender,  if any, in
      form and  substance  satisfactory  to the Guarantor and the Agent (each an
      "Assumption  Agreement"),  duly  executed by such Eligible  Assignee,  the
      Agent and the Guarantor; and

            (iii)  confirmation  from each Increasing  Lender of the increase in
      the amount of its  Commitment in a writing  satisfactory  to the Guarantor
      and the Agent.

On each Increase  Date,  upon  fulfillment  of the  conditions  set forth in the
immediately  preceding sentence of this Section 2.17(d),  the Agent shall notify
the Lenders (including, without limitation, each Assuming Lender) and the

                                       19
<PAGE>

Loan Parties, on or before 1:00 P.M. (New York City time), by telecopier, of the
occurrence of the  Commitment  Increase to be effected on such Increase Date and
shall  record in the  Register  the  relevant  information  with respect to each
Increasing Lender and each Assuming Lender on such date.

            SECTION 2.18.  Extension of  Termination  Date. (a) At least 30 days
but not more than 45 days  prior to the  Termination  Date,  the  Guarantor,  by
written notice to the Agent, may request an extension of the Termination Date in
effect at such time by 364 days from its then  scheduled  expiration;  provided,
however,  that the  Borrowers  shall not have made the Term  Loan  Election  for
Advances  outstanding  on such  Termination  Date prior to such time.  The Agent
shall  promptly  notify each Lender of such  request,  and each Lender  shall in
turn, in its sole  discretion,  not later than 20 days prior to the  Termination
Date,  notify the  Guarantor  and the Agent in writing as to whether such Lender
will consent to such extension. If any Lender shall fail to notify the Agent and
the Guarantor in writing of its consent to any such request for extension of the
Termination  Date at least 20 days prior to the  Termination  Date,  such Lender
shall be deemed to be a Non-Consenting  Lender with respect to such request. The
Agent shall notify the Guarantor not later than 15 days prior to the Termination
Date of the decision of the Lenders  regarding  the  Guarantor's  request for an
extension of the Termination Date.

            (b) If all the  Lenders  consent in  writing to any such  request in
accordance  with  subsection (a) of this Section 2.18, the  Termination  Date in
effect at such time shall,  effective as at the Termination Date (the "Extension
Date"),  be extended  for 364 days;  provided  that on each  Extension  Date the
applicable conditions set forth in Article III shall be satisfied.  If less than
all of the Lenders  consent in writing to any such  request in  accordance  with
subsection (a) of this Section 2.18, the Termination Date in effect at such time
shall,  effective as at the applicable  Extension Date and subject to subsection
(d) of this  Section  2.18,  be extended as to those  Lenders  that so consented
(each a  "Consenting  Lender")  but shall not be extended as to any other Lender
(each a "Non-Consenting Lender"). To the extent that the Termination Date is not
extended as to any Lender  pursuant to this Section 2.18 and the  Commitment  of
such Lender is not assumed in  accordance  with  subsection  (c) of this Section
2.18 on or  prior to the  applicable  Extension  Date,  the  Commitment  of such
Non-Consenting Lender shall automatically  terminate in whole on such unextended
Termination  Date without any further  notice or other action by the  Guarantor,
such Lender or any other Person and the Borrower s shall  immediately  repay all
Advances  and  other  amounts  owing to such  Non-Consenting  Lender  hereunder;
provided that such Non-Consenting  Lender's rights under Sections 2.10, 2.13 and
9.04, and its obligations under Section 8.05, shall survive the Termination Date
for such Lender as to matters occurring prior to such date. It is understood and
agreed  that no Lender  shall  have any  obligation  whatsoever  to agree to any
request made by the  Guarantor for any  requested  extension of the  Termination
Date.

            (c) If less  than all of the  Lenders  consent  to any such  request
pursuant to  subsection  (a) of this Section 2.18,  the Agent shall  promptly so
notify the  Consenting  Lenders,  and each  Consenting  Lender  may, in its sole
discretion, give written notice to the Agent not later than 10 days prior to the
Termination Date of the amount of the  Non-Consenting  Lenders'  Commitments for
which it is willing to accept an assignment.  If the  Consenting  Lenders notify
the Agent  that they are  willing to accept  assignments  of  Commitments  in an
aggregate   amount  that   exceeds  the  amount  of  the   Commitments   of  the
Non-Consenting Lenders, such Commitments shall be allocated among the Consenting
Lenders willing to accept such assignments in such amounts as are agreed between
the  Guarantor  and the Agent.  If after  giving  effect to the  assignments  of
Commitments  described  above there  remain any  Commitments  of  Non-Consenting
Lenders,  the Guarantor may arrange for one or more Consenting  Lenders or other
Eligible Assignees as Assuming Lenders to assume,  effective as of the Extension
Date, any Non-Consenting  Lender's Commitment and all of the obligations of such
Non-Consenting Lender under this Agreement thereafter arising,  without recourse
to or warranty by, or expense to, such Non-Consenting Lender; provided, however,
that the amount of the  Commitment  of any such  Assuming  Lender as a result of
such substitution  shall in no event be less than $10,000,000  unless the amount
of the Commitment of such  Non-Consenting  Lender is less than  $10,000,000,  in
which case such  Assuming  Lender  shall assume all of such lesser  amount;  and
provided further that:

            (i) any such Consenting Lender or Assuming Lender shall have paid to
      such Non-Consenting  Lender (A) the aggregate principal amount of, and any
      interest  accrued and unpaid to the effective  date of the  assignment on,
      the outstanding Advances, if any, of such Non-Consenting Lender plus

                                       20
<PAGE>

      (B) any  accrued  but unpaid  facility  fees owing to such  Non-Consenting
      Lender as of the effective date of such  assignment,  in each case, to the
      extent of such assignment;

            (ii) all additional costs reimbursements, expense reimbursements and
      indemnities payable to such  Non-Consenting  Lender, and all other accrued
      and unpaid amounts owing to such  Non-Consenting  Lender hereunder,  as of
      the  effective  date of  such  assignment  shall  have  been  paid to such
      Non-Consenting Lender; and

            (iii)  with  respect to any such  Assuming  Lender,  the  applicable
      processing and  recordation  fee required  under Section  9.07(a) for such
      assignment shall have been paid;

provided further that such  Non-Consenting  Lender's rights under Sections 2.10,
2.13 and 9.04,  and its  obligations  under  Section  8.05,  shall  survive such
substitution as to matters occurring prior to the date of substitution. At least
three  Business Days prior to any Extension Date or such later date as the Agent
may agree,  (A) each such Assuming  Lender,  if any, shall have delivered to the
Guarantor and the Agent an Assumption Agreement,  duly executed by such Assuming
Lender,  such  Non-Consenting  Lender, the Guarantor and the Agent, (B) any such
Consenting Lender shall have delivered  confirmation in writing  satisfactory to
the Guarantor  and the Agent as to the increase in the amount of its  Commitment
and (C) each Non-Consenting  Lender being replaced pursuant to this Section 2.18
shall have delivered to the Agent any Note or Notes held by such  Non-Consenting
Lender.  Upon the payment or  prepayment  of all amounts  referred to in clauses
(i), (ii) and (iii) of the immediately preceding sentence,  each such Consenting
Lender or Assuming  Lender,  as of the Extension  Date,  will be substituted for
such  Non-Consenting  Lender under this  Agreement and shall be a Lender for all
purposes of this Agreement, without any further acknowledgment by or the consent
of the other Lenders,  and the  obligations of each such  Non-Consenting  Lender
hereunder shall, by the provisions hereof, be released and discharged.

            (d) If  (after  giving  effect  to any  assignments  or  assumptions
pursuant to  subsection  (c) of this Section 2.18)  Lenders  having  Commitments
equal to at least  50% of the  Commitments  in effect  immediately  prior to the
Extension Date consent in writing to a requested extension (whether by execution
or delivery of an Assumption Agreement or otherwise) not later than one Business
Day prior to such Extension Date, the Agent shall so notify the Guarantor,  and,
subject to the  satisfaction  of the  applicable  conditions in Article III, the
Termination  Date then in effect  shall be extended for the  additional  364-day
period as described in subsection  (a) of this Section 2.18,  and all references
in this Agreement,  and in the Notes, if any, to the  "Termination  Date" shall,
with  respect  to each  Consenting  Lender  and each  Assuming  Lender  for such
Extension Date, refer to the Termination Date as so extended. Promptly following
each  Extension  Date,  the Agent shall notify the Lenders  (including,  without
limitation,  each Assuming Lender) of the extension of the scheduled Termination
Date in effect  immediately  prior  thereto  and shall  thereupon  record in the
Register the relevant  information  with respect to each such Consenting  Lender
and each such Assuming Lender.

                                   ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

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

            (a) There  shall have  occurred  no Material  Adverse  Change  since
      December 31, 2003.

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

                                       21
<PAGE>

      Guarantor or any of its  Subsidiaries,  of the Disclosed  Litigation  from
      that described on Schedule 3.01(b) hereto.

            (c) Nothing shall have come to the  attention of the Lenders  during
      the course of their due  diligence  investigation  to lead them to believe
      that the Information Memorandum was or has become misleading, incorrect or
      incomplete in any material respect; without limiting the generality of the
      foregoing,   the  Lenders  shall  have  been  given  such  access  to  the
      management,  records,  books of account,  contracts and  properties of the
      Guarantor and its Subsidiaries as they shall have requested.

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

            (e) The  Borrowers  shall have notified each Lender and the Agent in
      writing as to the proposed Effective Date.

            (f) The  Borrowers  shall have paid all accrued fees and expenses of
      the Agent and the  Lenders  (including  the accrued  fees and  expenses of
      counsel to the Agent).

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

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

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

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

                  (i) The  Notes  to the  order  of the  Lenders  to the  extent
            requested by any Lender pursuant to Section 2.15.

                  (ii)  Certified  copies  of the  resolutions  of the  Board of
            Directors of each Loan Party  approving this Agreement and the Notes
            to  which  it is a  party,  and of all  documents  evidencing  other
            necessary corporate action and governmental  approvals, if any, with
            respect to this Agreement and the Notes to which it is a party.

                  (iii) A certificate of the Secretary or an Assistant Secretary
            of each Loan Party  certifying the names and true  signatures of the
            officers of such Loan Party  authorized  to sign this  Agreement and
            the  Notes to  which it is a party  and the  other  documents  to be
            delivered by it hereunder.

                  (iv) A favorable  opinion of Dewey  Ballantine  LLP,  New York
            counsel for the Loan Parties,  and MacFarlanes,  English counsel for
            OFP,  substantially  in the  form of  Exhibits  D-1 and D-2  hereto,
            respectively, and as to such other matters as any Lender through the
            Agent may reasonably request.

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

                                       22
<PAGE>

            (i) The Borrowers  shall have terminated the commitments and paid in
      full all Debt,  interest,  fees and other amounts  outstanding,  under the
      364-Day  Credit  Agreement  dated  as  of  November  13,  2003  among  the
      Borrowers, the lenders parties thereto and Citibank, as agent, and each of
      the Lenders that is a party to such credit agreement  hereby waives,  upon
      the execution of this Agreement,  any requirement of prior notice relating
      to the termination of the commitments thereunder.

            SECTION 3.02.  Conditions  Precedent to Each  Borrowing,  Commitment
Increase and Extension Date. The obligation of each Lender to make an Advance on
the occasion of each Borrowing,  each Commitment  Increase and each extension of
Commitments  pursuant  to  Section  2.18  shall  be  subject  to the  conditions
precedent  that the  Effective  Date shall have occurred and on the date of such
Borrowing,  such  Increase  Date  or  such  extension  date  (a)  the  following
statements  shall be true (and each of the  giving of the  applicable  Notice of
Borrowing, request for Commitment Increase, request for Commitment Extension and
the acceptance by a Borrower of the proceeds of such Borrowing shall  constitute
a  representation  and  warranty  by  such  Borrower  that  on the  date of such
Borrowing, such Increase Date or such extension date such statements are true):

            (i) the  representations  and  warranties  contained in Section 4.01
      (except, in the case of a Borrowing,  the representations set forth in the
      last sentence of subsection (e) thereof and in subsection  (f)(i) thereof)
      are correct on and as of such date, before and after giving effect to such
      Borrowing,   such  Commitment  Increase  or  such  extension  and  to  the
      application  of the proceeds  therefrom,  as though made on and as of such
      date, and

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

and (b) the  Agent  shall  have  received  such  other  approvals,  opinions  or
documents as any Lender through the Agent may reasonably request.

            SECTION 3.03.  Determinations  Under  Section 3.01.  For purposes of
determining  compliance  with the  conditions  specified in Section  3.01,  each
Lender  shall be deemed to have  consented  to,  approved  or  accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent  responsible  for the  transactions  contemplated by this Agreement
shall  have  received  notice  from  such  Lender  prior  to the  date  that the
Borrowers,  by notice to the Lenders,  designate as the proposed Effective Date,
specifying its objection thereto. The Agent shall promptly notify the Lenders of
the occurrence of the Effective Date.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

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

            (a)  Each  Loan  Party  is a  corporation  duly  organized,  validly
      existing and in good standing  under the laws of the  jurisdiction  of its
      organization.

            (b) The  execution,  delivery and  performance by each Loan Party of
      this  Agreement and the Notes to be delivered by it, and the  consummation
      of the transactions  contemplated hereby, are within the such Loan Party's
      corporate  powers,  have been duly  authorized by all necessary  corporate
      action, and do not contravene (i) the such Loan Party's charter or by-laws
      or  other  organizational   documents  or  (ii)  law  or  any  contractual
      restriction binding on or affecting any Loan Party.

                                       23
<PAGE>

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

            (d) This  Agreement has been,  and each of the Notes to be delivered
      by it when delivered hereunder will have been, duly executed and delivered
      by each Loan Party party thereto. This Agreement is, and each of the Notes
      when delivered  hereunder will be, the legal, valid and binding obligation
      of each Loan Party party  thereto  enforceable  against such Loan Party in
      accordance with their respective terms.

            (e)  The  Consolidated  balance  sheet  of  the  Guarantor  and  its
      Subsidiaries  as at  December  31,  2003,  and  the  related  Consolidated
      statements of income and cash flows of the Guarantor and its  Subsidiaries
      for the fiscal  year then  ended,  accompanied  by an opinion of KPMG LLP,
      independent public accountants,  and the Consolidated balance sheet of the
      Guarantor  and its  Subsidiaries  as at March 31,  2004,  and the  related
      Consolidated  statements of income and cash flows of the Guarantor and its
      Subsidiaries for the three months then ended,  duly certified by the chief
      financial officer of the Guarantor, copies of which have been furnished to
      each Lender, fairly present, subject, in the case of said balance sheet as
      at March 31, 2004,  and said  statements  of income and cash flows for the
      three months then ended, to year-end audit  adjustments,  the Consolidated
      financial condition of the Guarantor and its Subsidiaries as at such dates
      and the  Consolidated  results of the  operations of the Guarantor and its
      Subsidiaries  for the periods ended on such dates,  all in accordance with
      generally  accepted  accounting  principles  consistently  applied.  Since
      December 31, 2003, there has been no Material Adverse Change.

            (f) There is no  pending  or,  to the  knowledge  of the  Guarantor,
      threatened  action,   suit,   investigation,   litigation  or  proceeding,
      including,  without limitation,  any Environmental  Action,  affecting the
      Guarantor or any of its Subsidiaries before any court, governmental agency
      or  arbitrator  that (i) could be  reasonably  likely  to have a  Material
      Adverse Effect (other than the Disclosed  Litigation),  and there has been
      no adverse change in the status,  or financial  effect on the Guarantor or
      any of its Subsidiaries,  of the Disclosed  Litigation from that described
      on  Schedule  3.01(b)  hereto or (ii)  purports  to affect  the  legality,
      validity  or   enforceability  of  this  Agreement  or  any  Note  or  the
      consummation of the transactions contemplated hereby.

            (g) No Loan Party is engaged in the business of extending credit for
      the purpose of purchasing or carrying  margin stock (within the meaning of
      Regulation  U issued  by the Board of  Governors  of the  Federal  Reserve
      System),  and no proceeds of any Advance will be used to purchase or carry
      any  margin  stock or to  extend  credit  to  others  for the  purpose  of
      purchasing or carrying any margin stock.

            (h)  No  Loan  Party  is  an  "investment  company",  or  a  company
      "controlled"  by an  "investment  company",  within  the  meaning  of  the
      Investment Company Act of 1940, as amended.

            (i)  All  factual  information  (taken  as a  whole)  heretofore  or
      contemporaneously  furnished  by or on behalf of any Loan Party in writing
      to any Lender (including, without limitation, all information contained in
      this  Agreement)  for purposes of or in connection  with this Agreement or
      any  transaction  contemplated  herein  is,  and all  other  such  factual
      information (taken as a whole) hereafter furnished by or on behalf of such
      Loan  Party in writing to any Lender  will be,  true and  accurate  in all
      material  respects  on the date as of which such  information  is dated or
      certified  and does not or will not omit to state  any fact  necessary  to
      make such  information  (taken as a whole) not  misleading in any material
      respect  at such  time in  light of the  circumstances  under  which  such
      information was provided.

                                       24
<PAGE>

                                    ARTICLE V

                           COVENANTS OF THE GUARANTOR

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

            (a)  Compliance  with  Laws,  Etc.  Comply,  and  cause  each of its
      Subsidiaries to comply with all applicable  laws,  rules,  regulations and
      orders, such compliance to include,  without  limitation,  compliance with
      ERISA and  Environmental  Laws  except,  in each case,  to the extent that
      failure to comply  would not  reasonably  be  expected  to have a Material
      Adverse Effect.

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

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

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

            (e) Visitation Rights. At any reasonable time and from time to time,
      permit the Agent or any of the  Lenders  or any agents or  representatives
      thereof,  to examine and make copies of and abstracts from the records and
      books of account of, and visit the properties of, the Guarantor and any of
      its Subsidiaries, and to discuss the affairs, finances and accounts of the
      Guarantor  and any of its  Subsidiaries  with  any of  their  officers  or
      directors and with their independent certified public accountants.

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

            (g) Maintenance of Properties, Etc. Maintain and preserve, and cause
      each of its  Subsidiaries to maintain and preserve,  all of its properties
      that are used or useful in the  conduct of its  business  in good  working
      order and condition, ordinary wear and tear excepted.

            (h)  Transactions  with Affiliates.  Conduct,  and cause each of its
      SubIsidiaries to conduct, all transactions  otherwise permitted under this
      Agreement  with  any of  their  Affiliates  on  terms  that  are  fair and
      reasonable and no less favorable to the Guarantor or such  Subsidiary than
      it would obtain in a comparable arm's-length transaction with a Person not
      an Affiliate.

            (i) Reporting Requirements. Furnish to the Lenders:

                  (i) as soon as available and in any event within 50 days after
            the end of each of the first  three  quarters of each fiscal year of
            the Guarantor, the Consolidated balance sheet of the

                                       25
<PAGE>

            Guarantor  and its  Subsidiaries  as of the end of such  quarter and
            Consolidated  statements  of income and cash flows of the  Guarantor
            and its  Subsidiaries  for the period  commencing  at the end of the
            previous  fiscal year and ending with the end of such quarter,  duly
            certified  (subject  to  year-end  audit  adjustments)  by the chief
            financial  officer  of the  Guarantor  as having  been  prepared  in
            accordance  with  generally  accepted   accounting   principles  and
            certificates of the chief  financial  officer of the Guarantor as to
            compliance  with the terms of this  Agreement  and setting  forth in
            reasonable   detail  the   calculations   necessary  to  demonstrate
            compliance  with  Section  5.03,  provided  that in the event of any
            change  in  generally  accepted  accounting  principles  used in the
            preparation of such financial  statements,  the Guarantor shall also
            provide,  if necessary  for the  determination  of  compliance  with
            Section  5.03,  a  statement  of   reconciliation   conforming  such
            financial statements to GAAP;

                  (ii) as soon as  available  and in any  event  within  95 days
            after the end of each  fiscal year of the  Guarantor,  a copy of the
            annual  audit  report  for  such  year  for  the  Guarantor  and its
            Subsidiaries,  containing  the  Consolidated  balance  sheet  of the
            Guarantor and its Subsidiaries as of the end of such fiscal year and
            Consolidated  statements  of income and cash flows of the  Guarantor
            and its  Subsidiaries for such fiscal year, in each case accompanied
            by an  opinion  acceptable  to the  Required  Lenders by KPMG LLP or
            other  independent  public  accountants  acceptable  to the Required
            Lenders  and  certificates  of the chief  financial  officer  of the
            Guarantor  as to  compliance  with the terms of this  Agreement  and
            setting forth in  reasonable  detail the  calculations  necessary to
            demonstrate compliance with Section 5.03, provided that in the event
            of any change in generally  accepted  accounting  principles used in
            the  preparation of such financial  statements,  the Guarantor shall
            also provide,  if necessary for the determination of compliance with
            Section  5.03,  a  statement  of   reconciliation   conforming  such
            financial statements to GAAP;

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

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

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

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

            Reports and  financial  statements  required to be  delivered by the
      Guarantor  pursuant to paragraphs  (i), (ii), (iv) and (v) of this Section
      5.01(i)  shall be deemed to have  been  delivered  on the date on which it
      posts such reports,  or reports containing such financial  statements,  on
      its website on the Internet at  www.omnicomgroup.com or when such reports,
      or reports  containing  such financial  statements are posted on the SEC's
      website at  www.sec.gov;  provided that it shall deliver  notice that such
      reports and financial  statements are so available and shall deliver paper
      copies of the reports and financial  statements  referred to in paragraphs
      (i), (ii), (iv) and (v) of this Section 5.01(i) to the Agent or any Lender
      who requests it to deliver such paper copies until written notice to cease
      delivering paper copies is given by the Agent or such Lender.

                                       26
<PAGE>

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

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

                  (i) Permitted Liens,

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

                  (iii) the Liens  existing on the Effective  Date and described
            on Schedule 5.02(a) hereto,

                  (iv) Liens on property  of a Person  existing at the time such
            Person is merged  into or  consolidated  with the  Guarantor  or any
            Subsidiary   of  the  Guarantor  or  becomes  a  Subsidiary  of  the
            Guarantor;   provided   that  such   Liens   were  not   created  in
            contemplation  of such merger,  consolidation  or acquisition and do
            not  extend to any  assets  other than those of the Person so merged
            into or  consolidated  with  the  Guarantor  or such  Subsidiary  or
            acquired by the Guarantor or such Subsidiary,

                  (v) Liens securing Debt permitted by Section 5.02(d)(vii),

                  (vi) Liens granted by  Subsidiaries  of the  Guarantor  (other
            than the Borrowers) to secure Debt permitted by Section 5.02(d)(iv),
            and

                  (vii) other Liens securing  Debt,  provided that the aggregate
            principal  amount of such  secured  Debt shall not exceed 15% of the
            Consolidated  net worth of the Guarantor and its Subsidiaries at any
            time.

            (b) Mergers,  Etc.  Merge or  consolidate  with or into,  or convey,
      transfer,  lease or otherwise dispose of (whether in one transaction or in
      a series of transactions)  all or substantially all of its assets (whether
      now owned or  hereafter  acquired)  to, any  Person,  or permit any of the
      Borrowers to do so.

            (c)  Accounting  Changes.  Make  or  permit,  or  permit  any of its
      Subsidiaries  to make or permit,  any  change in  accounting  policies  or
      reporting practices, except as required or permitted by generally accepted
      accounting principles.

            (d) Subsidiary  Debt.  Permit any of its  Subsidiaries  to create or
      suffer to exist, any Debt other than:

                  (i) Debt  existing  on the  Effective  Date and  described  on
            Schedule  5.02(d)  hereto  (the  "Existing  Debt"),   and  any  Debt
            extending the maturity of, or refunding or refinancing,  in whole or
            in part,  the Existing Debt,  provided that the principal  amount of
            such Existing Debt shall

                                       27
<PAGE>

            not be increased  above the  principal  amount  thereof  outstanding
            immediately  prior to such extension,  refunding or refinancing plus
            any  capitalized  fees  incurred in  connection  therewith,  and the
            direct and contingent  obligors therefor shall not be changed (other
            than to  release  any  contingent  obligor),  as a  result  of or in
            connection with such extension, refunding or refinancing,

                  (ii)  accrued  expenses  and trade  payables  incurred  in the
            ordinary course of business,  and obligations under trade letters of
            credit incurred in the ordinary course of business,  which are to be
            repaid in full not more than one year  after the date on which  such
            Debt is originally incurred to finance the purchase of goods by such
            Subsidiary,

                  (iii)  obligations  under  letters  of credit or surety  bonds
            incurred  in  the   ordinary   course  of  business  in  support  of
            obligations   incurred   in   connection   with   leases,   worker's
            compensation,  unemployment  insurance  and  other  social  security
            legislation,

                  (iv)  Debt  owed  to  the  Guarantor  or  to  a  wholly  owned
            Subsidiary of the Guarantor,

                  (v) Debt of the Borrowers,

                  (vi) other Debt of Subsidiaries of the Guarantor which are not
            organized under the laws of the United States of America, a State of
            the  United  States of  America  or the  District  of  Columbia  and
            substantially  all of whose  assets  and  business  are  located  or
            conducted outside the United States of America,

                  (vii)  Debt of a Person  existing  at the time such  Person is
            merged into or consolidated  with the Guarantor or any Subsidiary of
            the  Guarantor or becomes a Subsidiary  of the  Guarantor;  provided
            that such Debt was not  created  in  contemplation  of such  merger,
            consolidation  or acquisition,  provided  further that the aggregate
            principal  amount of the Debt  referred to in this clause (iv) shall
            not exceed $50,000,000 at any time outstanding,

                  (viii)  (x)  Debt  consisting  of  any  guaranty  made  by any
            Subsidiary  of the  Guarantor  in respect of Debt of any Loan Party,
            provided that such Subsidiary  shall have entered into a guaranty of
            the Debt of the Guarantor under this Agreement in form and substance
            reasonably  satisfactory  to  the  Required  Lenders  and  (y)  Debt
            constituting  guaranties  of the Debt of the  Guarantor  under  this
            Agreement, and

                  (ix)  indorsement  of  negotiable  instruments  for deposit or
            collection  or  similar  transactions  in  the  ordinary  course  of
            business.

            (e)  Change in  Nature  of  Business.  Make,  or  permit  any of its
      Subsidiaries to make, any material change in the nature of its business as
      carried on at the date hereof and other reasonably  related  businesses or
      businesses reasonably incidental thereto.

            (f)  Payment  Restrictions  Affecting   Subsidiaries.   Directly  or
      indirectly,  enter  into  or  suffer  to  exist,  or  permit  any  of  its
      Subsidiaries  to  enter  into  or  suffer  to  exist,   any  agreement  or
      arrangement  limiting  the ability or any of its  Subsidiaries  to (i) pay
      dividends  or make any other  distributions  on its  capital  stock or any
      other interest or  participation  in its profits owned by the Guarantor or
      any of its  Subsidiaries,  or pay any Debt owed to the Guarantor or any of
      its  Subsidiaries,  (ii) make loans or advances to the  Guarantor or (iii)
      transfer any of its properties or assets to the Guarantor, except for such
      agreements or  arrangements  existing under or by reason of (x) applicable
      law,  (y)  this  Agreement  and  (z)  customary   provisions   restricting
      subletting or assignment of any lease governing a leasehold  interest of a
      Subsidiary of the Guarantor.

            SECTION  5.03.  Financial  Covenants.  So long as any Advance  shall
remain unpaid or any Lender shall have any Commitment  hereunder,  the Guarantor
will:

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<PAGE>

            (a)  Leverage  Ratio.  Maintain  a ratio  of  Consolidated  Debt for
      Borrowed  Money of the  Guarantor  and its  Subsidiaries  to  Consolidated
      EBITDA of the  Guarantor and its  Subsidiaries  for the four quarters most
      recently ended of not greater than 3.0 to 1.

            (b) Interest Coverage Ratio. Maintain a ratio of Consolidated EBITDA
      of the Guarantor and its  Subsidiaries for the four quarters most recently
      ended to interest payable on, and amortization of debt discount in respect
      of, all Debt during such period by the Guarantor and its  Subsidiaries  of
      not less than 5.0 to 1.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

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

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

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

            (c) (i) The  Guarantor  shall fail to  perform or observe  any term,
      covenant or agreement contained in Section 5.01(d),  (e), (h) or (i), 5.02
      or 5.03, or (ii) any Loan Party shall fail to perform or observe any other
      term,  covenant or agreement contained in this Agreement on its part to be
      performed or observed if such failure shall remain  unremedied for 30 days
      after written notice thereof shall have been given to the Guarantor by the
      Agent or any Lender; or

            (d) The Guarantor or any of its  Subsidiaries  shall fail to pay any
      principal of or premium or interest on any Debt that is  outstanding  in a
      principal or notional  amount of at least  $100,000,000  in the  aggregate
      (but  excluding  Debt  outstanding  hereunder)  of the  Guarantor  or such
      Subsidiary  (as the case may be),  when the same  becomes  due and payable
      (whether by scheduled maturity, required prepayment,  acceleration, demand
      or otherwise),  and such failure shall continue after the applicable grace
      period, if any, specified in the agreement or instrument  relating to such
      Debt;  or any other event shall occur or  condition  shall exist under any
      agreement or instrument relating to any such Debt and shall continue after
      the  applicable  grace  period,  if any,  specified  in such  agreement or
      instrument,  if the effect of such event or condition is to accelerate, or
      to permit the acceleration of, the maturity of such Debt; or any such Debt
      shall be  declared  to be due and  payable,  or  required to be prepaid or
      redeemed  (other  than by a regularly  scheduled  required  prepayment  or
      redemption),  purchased  or  defeased,  or an  offer  to  prepay,  redeem,
      purchase or defease  such Debt shall be required to be made,  in each case
      prior to the stated maturity thereof; or

            (e) The Guarantor or any of its Subsidiaries shall generally not pay
      its  debts as such  debts  become  due,  or shall  admit  in  writing  its
      inability to pay its debts generally,  or shall make a general  assignment
      for the benefit of creditors;  or any proceeding shall be instituted by or
      against the Guarantor or any of its Subsidiaries  seeking to adjudicate it
      a  bankrupt   or   insolvent,   or  seeking   liquidation,   winding   up,
      reorganization,    arrangement,   adjustment,   protection,   relief,   or
      composition  of it or its debts  under  any law  relating  to  bankruptcy,
      insolvency or reorganization or relief of debtors, or seeking the entry of
      an order for relief or the appointment of a receiver,  trustee,  custodian
      or  other  similar  official  for it or for  any  substantial  part of its
      property  and, in the case of any such  proceeding  instituted  against it
      (but  not  instituted  by  it),  either  such   proceeding   shall  remain
      undismissed  or  unstayed  for a period of 60 days,  or any of the actions

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<PAGE>

      sought in such proceeding (including,  without limitation, the entry of an
      order for relief  against,  or the  appointment  of a  receiver,  trustee,
      custodian or other similar official for, it or for any substantial part of
      its property)  shall occur;  or the  Guarantor or any of its  Subsidiaries
      shall take any corporate  action to authorize any of the actions set forth
      above in this subsection (e); or

            (f)  Judgments  or  orders  for the  payment  of money in  excess of
      $100,000,000 in the aggregate  shall be rendered  against the Guarantor or
      any of its Subsidiaries and either (i) enforcement  proceedings shall have
      been  commenced by any creditor  upon such judgment or order or (ii) there
      shall  be any  period  of 60  consecutive  days  during  which  a stay  of
      enforcement  of such judgment or order,  by reason of a pending  appeal or
      otherwise,  shall  not be in  effect;  provided,  however,  that  any such
      judgment  or order  shall not be an Event of Default  under  this  Section
      6.01(f) if and for so long as (i) the amount of such  judgment or order is
      covered by a valid and binding  policy of insurance  between the defendant
      and the insurer  covering  payment  thereof and (ii) such  insurer,  which
      shall be rated at least "A" by A.M.  Best  Company,  has been notified of,
      and has not  disputed  the claim made for  payment  of, the amount of such
      judgment or order; or

            (g) (i) Any Person or two or more  Persons  acting in concert  shall
      have acquired  beneficial  ownership  (within the meaning of Rule 13d-3 of
      the Securities and Exchange  Commission under the Securities  Exchange Act
      of 1934),  directly or  indirectly,  of Voting Stock of the  Guarantor (or
      other securities  convertible into such Voting Stock)  representing 30% or
      more of the combined voting power of all Voting Stock of the Guarantor; or
      (ii) during any period of up to 12 consecutive  months,  commencing  after
      the  date of this  Agreement,  individuals  who at the  beginning  of such
      12-month period were directors of the Guarantor shall cease for any reason
      to  constitute a majority of the board of directors of the  Guarantor;  or
      (iii) the  Guarantor  shall  cease  for any  reason  to own,  directly  or
      indirectly, 100% of the Voting Stock of each of the Borrowers; or

            (h) Any material  provision of the Guaranty  shall cease to be valid
      and binding on or  enforceable  against the  Guarantor,  or the  Guarantor
      shall so state in writing; or

            (i) The  Guarantor or any of its ERISA  Affiliates  shall incur,  or
      shall be reasonably likely to incur liability in excess of $100,000,000 in
      the  aggregate  as a  result  of one or  more  of the  following:  (i) the
      occurrence of any ERISA Event; (ii) the partial or complete  withdrawal of
      the Guarantor or any of its ERISA Affiliates from a Multiemployer Plan; or
      (iii) the reorganization or termination of a Multiemployer Plan;

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

                                   ARTICLE VII

                                    GUARANTY

            SECTION   7.01.   Guaranty.   The   Guarantor   hereby   absolutely,
unconditionally  and  irrevocably  guarantees  the  punctual  payment  when due,
whether at  scheduled  maturity  or on any date of a required  prepayment  or by
acceleration,  demand or otherwise,  of all obligations of each other Loan Party
now or hereafter existing under

                                       30
<PAGE>

or  in  respect  of  the  this  Agreement  and  the  Notes  (including,  without
limitation, any extensions, modifications, substitutions, amendments or renewals
of any  or  all of the  foregoing  obligations),  whether  direct  or  indirect,
absolute or contingent,  and whether for principal,  interest,  premiums,  fees,
indemnities,  contract  causes of action,  costs,  expenses or  otherwise  (such
obligations being the "Guaranteed  Obligations"),  and agrees to pay any and all
expenses  (including,  without limitation,  fees and expenses of outside counsel
and the allocated costs and expenses of in-house  counsel) incurred by the Agent
or any Lender in enforcing any rights under this Agreement. Without limiting the
generality  of the  foregoing,  the  Guarantor's  liability  shall extend to all
amounts that constitute part of the Guaranteed  Obligations and would be owed by
any other  Loan  Party to the Agent or any  Lender  under or in  respect of this
Agreement  and the Notes but for the fact  that  they are  unenforceable  or not
allowable  due to the  existence  of a  bankruptcy,  reorganization  or  similar
proceeding involving such other Loan Party.

      SECTION  7.02.  Guaranty  Absolute.  The  Guarantor  guarantees  that  the
Guaranteed  Obligations  will be paid strictly in  accordance  with the terms of
this Agreement and the Notes,  regardless of any law, regulation or order now or
hereafter  in  effect in any  jurisdiction  affecting  any of such  terms or the
rights of the Agent or any Lender  with  respect  thereto.  This  Guaranty is an
absolute and unconditional  guaranty of payment when due, and not of collection,
by the Guarantor of the Guaranteed Obligations. The obligations of the Guarantor
under  or in  respect  of  this  Guaranty  are  independent  of  the  Guaranteed
Obligations or any other obligations of any other Loan Party under or in respect
of this Agreement and the Notes, and a separate action or actions may be brought
and prosecuted  against the Guarantor to enforce this Guaranty,  irrespective of
whether any action is brought  against any  Borrower or whether any  Borrower is
joined in any such action or actions.  The liability of the Guarantor under this
Guaranty shall be irrevocable,  absolute and unconditional  irrespective of, and
the  Guarantor  hereby  irrevocably  waives  any  defenses  it may  now  have or
hereafter acquire in any way relating to, any or all of the following:

            (a) any lack of validity or  enforceability of any provision of this
      Agreement or any Note or any agreement or instrument relating thereto;

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

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

            (d) any manner of application of collateral, or proceeds thereof, to
      all or any of the Guaranteed  Obligations,  or any manner of sale or other
      disposition of any collateral for all or any of the Guaranteed Obligations
      or any other  obligations  of any Loan Party under this  Agreement  or the
      Notes or any other assets of any Borrower or any of its Subsidiaries;

            (e)  any  change,  restructuring  or  termination  of the  corporate
      structure or existence of any Borrower or any of its Subsidiaries;

            (f) any  failure  of the  Agent or any  Lender  to  disclose  to the
      Guarantor any information  relating to the business,  condition (financial
      or  otherwise),  operations,  performance,  properties or prospects of any
      Borrower now or hereafter known to the Agent or such Lender (the Guarantor
      waiving any duty on the part of the Agent and the Lenders to disclose such
      information);

            (g) the failure of any other  Person to execute or deliver any other
      guaranty or  agreement  or the release or  reduction  of  liability of the
      Guarantor  or other  guarantor  or surety with  respect to the  Guaranteed
      Obligations; or

                                       31
<PAGE>

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

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

            SECTION 7.03. Waivers and Acknowledgments.  (a) The Guarantor hereby
unconditionally  and  irrevocably  waives  promptness,   diligence,   notice  of
acceptance,  presentment,  demand  for  performance,  notice of  nonperformance,
default, acceleration,  protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that the
Agent or any Lender protect,  secure, perfect or insure any Lien or any property
subject  thereto or exhaust any right or take any action  against any Loan Party
or any other Person or any collateral.

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

            (c) The Guarantor hereby  unconditionally and irrevocably waives (i)
      any  defense  arising  by  reason of any claim or  defense  based  upon an
      election  of  remedies  by the  Agent  or any  Lender  that in any  manner
      impairs, reduces, releases or otherwise adversely affects the subrogation,
      reimbursement,  exoneration, contribution or indemnification rights of the
      Guarantor or other rights of the  Guarantor to proceed  against any of the
      other  Loan  Parties,  any  other  guarantor  or any  other  Person or any
      collateral  and  (ii)  any  defense  based  on any  right  of  set-off  or
      counterclaim  against or in respect of the  obligations  of the  Guarantor
      hereunder.

            (d) The Guarantor hereby  unconditionally and irrevocably waives any
      duty on the part of the Agent or any Lender to disclose  to the  Guarantor
      any matter, fact or thing relating to the business,  condition  (financial
      or  otherwise),  operations,  performance,  properties or prospects of any
      other Loan Party or any of its  Subsidiaries now or hereafter known by the
      Agent or such Lender.

            (e) The  Guarantor  acknowledges  that it will  receive  substantial
      direct and indirect benefits from the financing arrangements  contemplated
      by this  Agreement and that the waivers set forth in Section 7.02 and this
      Section 7.03 are knowingly made in contemplation of such benefits.

            SECTION 7.04. Subrogation.  The Guarantor hereby unconditionally and
irrevocably  agrees not to exercise any rights that it may now have or hereafter
acquire against any Borrower or any other insider  guarantor that arise from the
existence,  payment,  performance or enforcement of the Guarantor's  obligations
under or in respect of this Guaranty,  including,  without limitation, any right
of subrogation, reimbursement,  exoneration, contribution or indemnification and
any right to  participate  in any  claim or  remedy  of the Agent or any  Lender
against any Borrower or any other insider  guarantor or any collateral,  whether
or not such claim,  remedy or right arises in equity or under contract,  statute
or common law, including,  without limitation, the right to take or receive from
any Borrower or any other insider guarantor,  directly or indirectly, in cash or
other  property  or by set-off or in any other  manner,  payment or  security on
account of such claim,  remedy or right,  unless and until all of the Guaranteed
Obligations  and all other amounts  payable under this Guaranty  shall have been
paid in full in cash and the Commitments  shall have expired or been terminated.
If any amount shall be paid to the  Guarantor  in  violation of the  immediately
preceding sentence at any time prior to the later of the payment in full in cash
of the Guaranteed  Obligations and all other amounts payable under this Guaranty
and the  Termination  Date,  such amount shall be received and held in trust for
the benefit of Agent and the Lenders,  shall be segregated  from other  property
and funds of the Guarantor and shall forthwith be paid or delivered to the Agent
in the same form as so received  (with any necessary  endorsement or assignment)
to be credited and applied to the Guaranteed  Obligations  and all other amounts
payable under this Guaranty,  whether  matured or unmatured,  in accordance with
the terms of this  Agreement,  or to be held as  collateral  for any  Guaranteed
Obligations or other amounts payable under this Guaranty

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<PAGE>

thereafter  arising. If (i) the Guarantor shall make payment to the Agent or any
Lender  of all or  any  part  of the  Guaranteed  Obligations,  (ii)  all of the
Guaranteed  Obligations  and all other amounts payable under this Guaranty shall
have  been  paid in full in cash and  (iii)  the  Termination  Date  shall  have
occurred  with respect to all Lenders,  the Agent and the Lenders  will,  at the
Guarantor's   request  and  expense,   execute  and  deliver  to  the  Guarantor
appropriate documents,  without recourse and without representation or warranty,
necessary  to  evidence  the  transfer by  subrogation  to the  Guarantor  of an
interest in the Guaranteed  Obligations  resulting from such payment made by the
Guarantor pursuant to this Guaranty.

            SECTION 7.05.  Subordination.  The Guarantor hereby subordinates any
and all debts,  liabilities and other  obligations owed to the Guarantor by each
other Loan Party (the "Subordinated  Obligations") to the Guaranteed Obligations
to the extent and in the manner hereinafter set forth in this Section 7.05:

            (a) Prior Payment of Guaranteed Obligations. In any proceeding under
      any Bankruptcy Law relating to any other Loan Party,  the Guarantor agrees
      that the Agent and the Lenders  shall be  entitled  to receive  payment in
      full in cash of all  Guaranteed  Obligations  (including  all interest and
      expenses  accruing  after  the  commencement  of a  proceeding  under  any
      Bankruptcy  Law,  whether or not  constituting  an  allowed  claim in such
      proceeding  ("Post  Petition  Interest"))  before the  Guarantor  receives
      payment of any Subordinated Obligations.

            (b) Turn-Over.  After the  occurrence and during the  continuance of
      any Event of Default under Section  6.01(e),  the Guarantor  shall, if the
      Agent so requests, collect, enforce and receive payments on account of the
      Subordinated  Obligations  as trustee  for the Agent and the  Lenders  and
      deliver  such  payments  to  the  Agent  on  account  of  the   Guaranteed
      Obligations  (including  all Post  Petition  Interest),  together with any
      necessary  endorsements  or other  instruments  of  transfer,  but without
      reducing or affecting in any manner the liability of the  Guarantor  under
      the other provisions of this Guaranty.

            (c)  Agent  Authorization.  After  the  occurrence  and  during  the
      continuance  of any Event of Default under Section  6.01(e),  the Agent is
      authorized  and  empowered  (but without any  obligation to so do), in its
      discretion,  (i) in the name of the Guarantor, to collect and enforce, and
      to submit claims in respect of, Subordinated  Obligations and to apply any
      amounts received thereon to the Guaranteed  Obligations (including any and
      all Post  Petition  Interest),  and (ii) to require the  Guarantor  (A) to
      collect and  enforce,  and to submit  claims in respect  of,  Subordinated
      Obligations and (B) to pay any amounts received on such obligations to the
      Agent for application to the Guaranteed Obligations (including any and all
      Post Petition Interest).

            SECTION 7.06. Continuing Guaranty;  Assignments.  This Guaranty is a
continuing  guaranty  and shall (a) remain in full  force and  effect  until the
later of the payment in full in cash of the Guaranteed Obligations and all other
amounts  payable under this Guaranty and the  Termination  Date,  (b) be binding
upon the  Guarantor,  its successors and assigns and (c) inure to the benefit of
and  be  enforceable  by  the  Agent  and  the  Lenders  and  their  successors,
transferees  and assigns.  Without  limiting the generality of clause (c) of the
immediately preceding sentence,  any Lender may assign or otherwise transfer all
or any portion of its rights and  obligations  under this Agreement  (including,
without limitation, all or any portion of its Commitments, the Advances owing to
it and the Note or Notes held by it) to any other Person,  and such other Person
shall  thereupon  become vested with all the benefits in respect thereof granted
to such Lender herein or otherwise,  in each case as and to the extent  provided
in Section  9.07.  The  Guarantor  shall not have the right to assign its rights
hereunder or any interest  herein  without the prior written  consent of each of
the Lenders.

                                  ARTICLE VIII

                                    THE AGENT

            SECTION 8.01.  Authorization and Action. Each Lender hereby appoints
and  authorizes  the Agent to take such  action  as agent on its  behalf  and to
exercise such powers and discretion under this Agreement as are delegated to the
Agent by the terms  hereof,  together  with such  powers and  discretion  as are
reasonably incidental

                                       33
<PAGE>

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

            SECTION 8.02.  Agent's  Reliance,  Etc. Neither the Agent nor any of
its  directors,  officers,  agents or  employees  shall be liable for any action
taken or  omitted  to be taken by it or them  under or in  connection  with this
Agreement,  except for its or their own gross negligence or willful  misconduct.
Without limitation of the generality of the foregoing,  the Agent: (i) may treat
the Lender that made any Advance as the holder of the Debt  resulting  therefrom
until the Agent receives and accepts an Assumption  Agreement entered into by an
Assuming  Lender as provided in Section  2.17 or an  Assignment  and  Acceptance
entered into by such Lender, as assignor, and an Eligible Assignee, as assignee,
as provided in Section  9.07;  (ii) may consult  with legal  counsel  (including
counsel for the Loan Parties),  independent public accountants and other experts
selected  by it and shall not be liable  for any  action  taken or omitted to be
taken  in good  faith  by it in  accordance  with the  advice  of such  counsel,
accountants or experts;  (iii) makes no warranty or representation to any Lender
and shall not be  responsible  to any Lender for any  statements,  warranties or
representations  (whether  written or oral) made in or in  connection  with this
Agreement;  (iv)  shall not have any duty to  ascertain  or to inquire as to the
performance,  observance  or  satisfaction  of any of the  terms,  covenants  or
conditions  of this  Agreement on the part of any Loan Party or the existence at
any time of any  Default or to inspect  the  property  (including  the books and
records) of any Loan Party;  (v) shall not be  responsible to any Lender for the
due execution, legality, validity, enforceability,  genuineness,  sufficiency or
value of this Agreement or any other instrument or document  furnished  pursuant
hereto;  and (vi) shall incur no liability under or in respect of this Agreement
by acting upon any notice,  consent,  certificate or other instrument or writing
(which may be by telecopier or telegram) believed by it to be genuine and signed
or sent by the proper party or parties.

            SECTION  8.03.   Citibank  and  Affiliates.   With  respect  to  its
Commitment,  the Advances made by it and any Note issued to it,  Citibank  shall
have the same rights and powers under this Agreement as any other Lender and may
exercise  the same as though it were not the  Agent;  and the term  "Lender"  or
"Lenders" shall, unless otherwise expressly  indicated,  include Citibank in its
individual capacity.  Citibank and its Affiliates may accept deposits from, lend
money  to,  act as  trustee  under  indentures  of,  accept  investment  banking
engagements  from  and  generally  engage  in any  kind of  business  with,  the
Guarantor,  any of its  Subsidiaries  and any Person who may do business with or
own securities of the Guarantor or any such Subsidiary,  all as if Citibank were
not the Agent and without any duty to account therefor to the Lenders. The Agent
shall have no duty to disclose  information obtained or received by it or any of
its Affiliates  relating to the Guarantor or its Subsidiaries to the extent such
information was obtained or received in any capacity other than as Agent.

            SECTION 8.04. Lender Credit Decision.  Each Lender acknowledges that
it has,  independently  and without  reliance upon the Agent or any other Lender
and based on the financial statements referred to in Section 4.01 and such other
documents  and  information  as it has deemed  appropriate,  made its own credit
analysis  and  decision  to  enter  into  this   Agreement.   Each  Lender  also
acknowledges that it will,  independently and without reliance upon the Agent or
any other Lender and based on such  documents and  information  as it shall deem
appropriate at the time,  continue to make its own credit decisions in taking or
not taking action under this Agreement.

            SECTION  8.05.  Indemnification.  The Lenders agree to indemnify the
Agent (to the extent not reimbursed by the Borrowers),  ratably according to the
respective principal amounts of the Advances then owed to each of them (or if no
Advances  are at the  time  outstanding,  ratably  according  to the  respective
amounts  of  their  Commitments),  from  and  against  any and all  liabilities,
obligations,  losses,  damages,  penalties,  actions,  judgments,  suits, costs,
expenses or disbursements  of any kind or nature  whatsoever that may be imposed
on, incurred by, or asserted against the Agent in any way relating to or arising
out of this  Agreement  or any action  taken or omitted by the Agent  under this
Agreement (collectively, the "Indemnified Costs"), provided that no Lender shall
be liable for any portion of the  Indemnified  Costs  resulting from the Agent's
gross  negligence or willful  misconduct.  Without  limitation of the foregoing,
each Lender agrees to reimburse  the Agent  promptly upon demand for its ratable
share of any out-of-pocket expenses (including reasonable counsel fees) incurred
by the Agent in connection with the

                                       34
<PAGE>

preparation,  execution, delivery,  administration,  modification,  amendment or
enforcement (whether through  negotiations,  legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities  under, this Agreement,
to the  extent  that  the  Agent is not  reimbursed  for  such  expenses  by the
Borrowers.  In the case of any  investigation,  litigation or proceeding  giving
rise to any  Indemnified  Costs,  this  Section  8.05  applies  whether any such
investigation, litigation or proceeding is brought by the Agent, any Lender or a
third party.

            SECTION 8.06.  Successor  Agent. The Agent may resign at any time by
giving  written  notice  thereof to the  Lenders  and the  Borrowers  and may be
removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal,  the Required  Lenders shall have the right to appoint a
successor Agent from among the Lenders with the consent,  so long as no Event of
Default has occurred and is continuing, of the Guarantor, which consent will not
be  unreasonably  withheld or delayed.  If no successor Agent shall have been so
appointed by the Required  Lenders,  and shall have accepted  such  appointment,
within 30 days after the retiring Agent's giving of notice of resignation or the
Required Lenders' removal of the retiring Agent, then the retiring Agent may, on
behalf of the Lenders,  appoint a successor Agent,  which shall be a Lender that
is a commercial bank organized under the laws of the United States of America or
of any State  thereof  and having a  combined  capital  and  surplus of at least
$500,000,000.  Upon the acceptance of any  appointment  as Agent  hereunder by a
successor  Agent,  such successor  Agent shall  thereupon  succeed to and become
vested with all the rights,  powers,  discretion,  privileges  and duties of the
retiring  Agent,  and the retiring Agent shall be discharged from its duties and
obligations  under this  Agreement.  After any retiring  Agent's  resignation or
removal  hereunder as Agent,  the provisions of this Article VIII shall inure to
its  benefit as to any  actions  taken or omitted to be taken by it while it was
Agent under this Agreement.

            SECTION 8.07.  Other Agents.  Each Lender hereby  acknowledges  that
neither the  documentation  agent nor any other Lender designated as any "Agent"
on the signature pages hereof (other than the Agent) has any liability hereunder
other than in its capacity as a Lender.

                                   ARTICLE IX

                                  MISCELLANEOUS

            SECTION  9.01.  Amendments,  Etc.  No  amendment  or  waiver  of any
provision of this  Agreement or the Notes,  nor consent to any  departure by any
Loan Party  therefrom,  shall in any event be effective unless the same shall be
in  writing  and signed by the  Required  Lenders  and  (except  for  waivers or
consents  by any  Lender)  each of the Loan  Parties,  and then  such  waiver or
consent  shall be effective  only in the specific  instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or consent
shall, unless in writing and signed by all the Lenders, do any of the following:
(a) waive any of the  conditions  specified in Section  3.01,  (b) other than as
provided in Section 2.18,  increase the  Commitments of the Lenders,  (c) reduce
the  principal  of, or interest  on, the  Advances or any fees or other  amounts
payable hereunder,  (d) postpone any date fixed for any payment of principal of,
or interest on, the Advances or any fees or other amounts payable hereunder, (e)
change the percentage of the  Commitments or of the aggregate  unpaid  principal
amount of the Advances, or the number of Lenders, that shall be required for the
Lenders  or any of them to take any  action  hereunder,  (f) reduce or limit the
obligations  of the  Guarantor  under  Section 7.01 or release the  Guarantor or
otherwise limit the Guarantor's  liability with respect to the obligations owing
to the Agent and the Lenders  under  Article VII or (g) amend this Section 9.01;
and  provided  further that no  amendment,  waiver or consent  shall,  unless in
writing and signed by the Agent in addition  to the  Lenders  required  above to
take such action,  affect the rights or duties of the Agent under this Agreement
or any Note.

            SECTION 9.02. Notices, Etc. (a) All notices and other communications
provided for hereunder shall be either (x) in writing  (including  telecopier or
telegraphic communication) and mailed, telecopied,  telegraphed or delivered, or
(y) as and to the  extent  set  forth in  Section  9.02(b)  and (c),  if to Loan
Parties,  at the address of the Guarantor at One East Weaver Street,  Greenwich,
Connecticut  06831,  Attention:  Eric Huttner;  if to any Initial Lender, at its
Domestic Lending Office specified  opposite its name on Schedule I hereto; if to
any other Lender,  at its Domestic  Lending  Office  specified in the Assumption
Agreement or the Assignment and Acceptance pursuant to which it became a Lender;
and if to the  Agent,  at its  address at Two Penns Way,  New  Castle,  Delaware
19720, Attention: Bank Loan Syndications Department; or, as to any Loan Party or
the Agent,  at such  other  address  as shall be  designated  by such party in a
written  notice to the other parties and, as to each other party,  at such other
address

                                       35
<PAGE>

as shall be  designated  by such party in a written  notice to the Borrowers and
the Agent, provided that materials required to be delivered pursuant to Sections
5.01(i)(i),  (ii),  (iv) and (v) shall be delivered to the Agent as specified in
Section  9.02(b).  All such  notices  and  communications  shall,  when  mailed,
telecopied or telegraphed,  be effective when deposited in the mails, telecopied
or delivered to the  telegraph  company,  respectively,  except that notices and
communications  to the Agent  pursuant  to Article  II, III or VIII shall not be
effective  until  received by the Agent.  Delivery by  telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Exhibit hereto to be executed and delivered  hereunder  shall be
effective as delivery of a manually executed counterpart thereof.

            (b) So long  as  Citibank  or any of its  Affiliates  is the  Agent,
materials required to be delivered pursuant to Sections  5.01(i)(i),  (ii), (iv)
and (v) may be  delivered  to the  Agent  in an  electronic  medium  in a format
acceptable     to    the    Agent    and    the    Lenders    by    e-mail    at
oploanswebadmin@citigroup.com. The Guarantor agrees that the Agent may make such
materials, as well as any other written information,  documents, instruments and
other material  relating to the Guarantor,  any of its Subsidiaries or any other
materials  or  matters  relating  to this  Agreement,  the  Notes  or any of the
transactions contemplated hereby, but not including any notices under Article II
(collectively,  the  "Communications")  available to the Lenders by posting such
notices  on  Intralinks  or  a  substantially  similar  electronic  system  (the
"Platform").  The Guarantor  acknowledges  that (i) the distribution of material
through  an  electronic  medium is not  necessarily  secure  and that  there are
confidentiality  and other risks  associated  with such  distribution,  (ii) the
Platform is provided "as is" and "as  available" and (iii) neither the Agent nor
any of its Affiliates  warrants the accuracy,  adequacy or  completeness  of the
Communications or the Platform and each expressly disclaims liability for errors
or omissions in the  Communications  or the  Platform.  No warranty of any kind,
express, implied or statutory,  including,  without limitation,  any warranty of
merchantability,  fitness for a particular  purpose,  non-infringement  of third
party rights or freedom from viruses or other code defects, is made by the Agent
or any of its Affiliates in connection with the Platform.

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

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

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

            (b) The Borrowers agree to indemnify and hold harmless the Agent and
each  Lender  and  each of  their  Affiliates  and  their  officers,  directors,
employees,  agents and advisors (each, an "Indemnified  Party") from and against
any and all  claims,  damages,  losses,  liabilities  and  expenses  (including,
without  limitation,  reasonable  fees and  expenses of counsel)  incurred by or
asserted or awarded against any Indemnified Party, in each

                                       36
<PAGE>

case arising out of or in connection  with or by reason of  (including,  without
limitation,  in connection with any  investigation,  litigation or proceeding or
preparation of a defense in connection therewith) (i) the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds  of the  Advances or (ii) the actual or alleged  presence of  hazardous
materials on any property of the  Guarantor  or any of its  Subsidiaries  or any
Environmental  Action  relating  in  any  way  to  the  Guarantor  or any of its
Subsidiaries,  except to the extent  such  claim,  damage,  loss,  liability  or
expense is found in a final,  non-appealable  judgment  by a court of  competent
jurisdiction to have resulted from such Indemnified  Party's gross negligence or
willful  misconduct.  In the  case  of an  investigation,  litigation  or  other
proceeding  to  which  the  indemnity  in this  Section  9.04(b)  applies,  such
indemnity shall be effective  whether or not such  investigation,  litigation or
proceeding  is  brought  by any Loan  Party,  its  directors,  equityholders  or
creditors  or an  Indemnified  Party or any  other  Person,  whether  or not any
Indemnified  Party  is  otherwise  a  party  thereto  and  whether  or  not  the
transactions  contemplated  hereby are consummated.  The Loan Parties also agree
not to assert any claim for special, indirect, consequential or punitive damages
against  the  Agent,  any  Lender,  any of  their  Affiliates,  or any of  their
respective directors,  officers, employees,  attorneys and agents, on any theory
of liability, arising out of or otherwise relating to the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.

            (c) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance is made by any Borrower to or for the account of a Lender (i) other
than on the last day of the Interest  Period for such Advance,  as a result of a
payment or Conversion  pursuant to Section 2.07,  2.09 or 2.11,  acceleration of
the maturity of the Notes  pursuant to Section 6.01 or for any other reason,  or
by an Eligible  Assignee to a Lender  other than on the last day of the Interest
Period for such Advance upon an assignment of rights and obligations  under this
Agreement  pursuant  to  Section  9.07 as a result of a demand by the  Guarantor
pursuant  to  Section  9.07(a)  or (ii) as a result of a payment  or  Conversion
pursuant to Section 2.07, 2.09 or 2.11, the Borrower of such Advance shall, upon
demand by such  Lender  (with a copy of such  demand to the  Agent),  pay to the
Agent for the  account of such Lender any amounts  required to  compensate  such
Lender for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion,  including,  without limitation,  any
loss (including loss of anticipated profits), cost or expense incurred by reason
of the  liquidation or  reemployment  of deposits or other funds acquired by any
Lender to fund or maintain such Advance.

            (d) Without  prejudice to the survival of any other agreement of the
Borrowers  hereunder,  the agreements and obligations of the Borrowers contained
in Sections 2.10,  2.13 and 9.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.

            SECTION 9.05.  Right of Set-off.  Upon (i) the occurrence and during
the  continuance  of any Event of Default  and (ii) the making of the request or
the granting of the consent  specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable  pursuant to the  provisions  of Section 6.01,
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  indebtedness  at any time owing by such  Lender or such
Affiliate to or for the credit or the account of any Loan Party  against any and
all of the  obligations of such Loan Party now or hereafter  existing under this
Agreement  and any Note held by such  Lender,  whether or not such Lender  shall
have  made any  demand  under  this  Agreement  or such Note and  although  such
obligations  may be  unmatured.  Each  Lender  agrees  promptly  to  notify  the
applicable Loan Party after any such set-off and application,  provided that the
failure to give such notice  shall not affect the  validity of such  set-off and
application. The rights of each Lender and its Affiliates under this Section are
in addition to other rights and remedies (including,  without limitation,  other
rights of set-off) that such Lender and its Affiliates may have.

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

                                       37
<PAGE>

            SECTION 9.07.  Assignments and  Participations.  (a) Each Lender may
and, if demanded by the Guarantor (following a demand by such Lender pursuant to
Section  2.10 or 2.13) upon at least five  Business  Days' notice to such Lender
and the Agent, will assign to one or more Persons all or a portion of its rights
and obligations under this Agreement  (including,  without limitation,  all or a
portion of its  Commitment,  the Advances owing to it and the Note or Notes held
by it); provided, however, that (i) each such assignment shall be of a constant,
and  not a  varying,  percentage  of  all  rights  and  obligations  under  this
Agreement,  (ii)  except  in  the  case  of  an  assignment  to a  Person  that,
immediately prior to such assignment,  was a Lender or an assignment of all of a
Lender's  rights  and  obligations  under  this  Agreement,  the  amount  of the
Commitment  of the  assigning  Lender  being  assigned  pursuant  to  each  such
assignment  (determined as of the date of the  Assignment  and  Acceptance  with
respect to such  assignment)  shall in no event be less than  $10,000,000  or an
integral  multiple of $1,000,000 in excess  thereof unless the Guarantor and the
Agent  otherwise  agree,  (iii)  each such  assignment  shall be to an  Eligible
Assignee,  (iv)  each  such  assignment  made as a  result  of a  demand  by the
Guarantor  pursuant to this Section  9.07(a)  shall be arranged by the Guarantor
after  consultation  with the Agent and shall be either an  assignment of all of
the rights and  obligations  of the assigning  Lender under this Agreement or an
assignment of a portion of such rights and obligations  made  concurrently  with
another such assignment or other such assignments that together cover all of the
rights and  obligations  of the assigning  Lender under this  Agreement,  (v) no
Lender shall be obligated to make any such assignment as a result of a demand by
the  Guarantor  pursuant to this  Section  9.07(a)  unless and until such Lender
shall have  received one or more  payments  from either the  Borrowers or one or
more Eligible  Assignees in an aggregate  amount at least equal to the aggregate
outstanding principal amount of the Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts  payable to such Lender under this  Agreement and (vi) the parties
to each  such  assignment  shall  execute  and  deliver  to the  Agent,  for its
acceptance and recording in the Register, an Assignment and Acceptance, together
with any Note subject to such assignment and a processing and recordation fee of
$3,500, payable by the parties to each such assignment,  provided, however, that
in the case of each  assignment  made as a result of a demand by the  Guarantor,
such  recordation  fee shall be payable  by the  Guarantor  except  that no such
recordation  fee  shall  be  payable  in the case of an  assignment  made at the
request of the  Guarantor to an Eligible  Assignee  that is an existing  Lender.
Upon such  execution,  delivery,  acceptance and  recording,  from and after the
effective date specified in each  Assignment  and  Acceptance,  (x) the assignee
thereunder  shall  be a  party  hereto  and,  to  the  extent  that  rights  and
obligations  hereunder have been assigned to it pursuant to such  Assignment and
Acceptance,  have the rights and  obligations of a Lender  hereunder and (y) the
Lender  assignor  thereunder  shall,  to the extent that rights and  obligations
hereunder have been assigned by it pursuant to such  Assignment and  Acceptance,
relinquish  its rights (other than its rights under Section 2.10,  2.13 and 9.04
to the  extent  any claim  thereunder  relates  to an event  arising  prior such
assignment)  and be released from its  obligations  (other than its  obligations
under  Section  8.05 to the  extent  any claim  thereunder  relates  to an event
arising prior to such  assignment)  under this Agreement (and, in the case of an
Assignment and Acceptance  covering all or the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto).

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

                                       38
<PAGE>

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

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

            (e) Each  Lender  may sell  participations  to one or more  banks or
other entities  (other than the Guarantor or any of its Affiliates) in or to all
or a portion of its  rights and  obligations  under this  Agreement  (including,
without limitation, all or a portion of its Commitment, the Advances owing to it
and any Note or Notes held by it);  provided,  however,  that (i) such  Lender's
obligations under this Agreement (including,  without limitation, its Commitment
to the  Borrowers  hereunder)  shall  remain  unchanged,  (ii) such Lender shall
remain solely  responsible  to the other parties  hereto for the  performance of
such obligations, (iii) such Lender shall remain the holder of any such Note for
all  purposes of this  Agreement,  (iv) the  Borrowers,  the Agent and the other
Lenders  shall  continue  to deal  solely  and  directly  with  such  Lender  in
connection with such Lender's  rights and  obligations  under this Agreement and
(v) no participant under any such participation  shall have any right to approve
any amendment or waiver of any  provision of this  Agreement or any Note, or any
consent to any departure by any Loan Party therefrom,  except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Advances or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, or postpone any date fixed for any payment
of  principal  of, or interest  on, the  Advances  or any fees or other  amounts
payable hereunder, in each case to the extent subject to such participation,  or
reduce or limit the  obligations of the Guarantor  under Section 7.01 or release
the Guarantor from its obligations under Article VII.

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

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

            SECTION  9.08.  Confidentiality.  Neither  the Agent nor any  Lender
shall  disclose any  Confidential  Information  to any other Person  without the
consent  of the  Guarantor,  other  than  (a) to the  Agent's  or such  Lender's
Affiliates and their officers, directors, employees, agents and advisors and, as
contemplated  by  Section  9.07(f),  to  actual  or  prospective  assignees  and
participants, and then only on a confidential basis, (b) as required by any law,
rule or  regulation  or judicial  process,  (c) as  requested or required by any
state,  federal or foreign authority or examiner regulating banks or banking and
(d) 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.

            SECTION 9.09.  Governing  Law. This Agreement and the Notes shall be
governed by, and  construed  in  accordance  with,  the laws of the State of New
York.

            SECTION  9.10.  Execution in  Counterparts.  This  Agreement  may be
executed  in any  number of  counterparts  and by  different  parties  hereto in
separate counterparts, each of which when so executed shall be

                                       39
<PAGE>

deemed to be an original and all of which taken  together  shall  constitute one
and the same agreement.  Delivery of an executed counterpart of a signature page
to this  Agreement  by  telecopier  shall be effective as delivery of a manually
executed counterpart of this Agreement.

            SECTION  9.11.  Jurisdiction,  Etc.  (a) Each of the parties  hereto
hereby irrevocably and unconditionally  submits, for itself and its property, to
the  nonexclusive  jurisdiction  of any New York State court or federal court of
the United States of America  sitting in New York City, and any appellate  court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for  recognition or enforcement of any judgment,  and
each of the parties hereto hereby  irrevocably and  unconditionally  agrees that
all  claims  in  respect  of any such  action  or  proceeding  may be heard  and
determined in any such New York State court or, to the extent  permitted by law,
in such federal court.  The Loan Parties hereby agree that service of process in
any such action or proceeding brought in the any such New York State court or in
such  federal  court may be made upon the  Guarantor  at its offices at One East
Weaver Street, Greenwich,  Connecticut 06831 Attention:  General Counsel and the
Loan Parties hereby  irrevocably  appoint the Guarantor its authorized  agent to
accept such service of process,  and agrees that the failure of the Guarantor to
give any notice of any such  service  shall not impair or affect the validity of
such  service or of any  judgment  rendered  in any action or  proceeding  based
thereon.  Each Loan Party hereby further irrevocably  consents to the service of
process in any action or proceeding in such courts by the mailing thereof by any
parties hereto by registered or certified mail,  postage  prepaid,  to such Loan
Party at its address  specified  pursuant to Section  9.02.  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 may  otherwise  have to bring  any  action or  proceeding
relating to this Agreement or the Notes in the courts of any jurisdiction.

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

            SECTION 9.12. Patriot Act. Each Lender hereby notifies the Guarantor
and each the Borrower that pursuant to the  requirements  of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"), it
is  required  to obtain,  verify and record  information  that  identifies  each
borrower,  guarantor or grantor (the "Loan Parties"), which information includes
the name and  address of each Loan Party and other  information  that will allow
such Lender to identify such Loan Party in accordance with the Act.

                                       40
<PAGE>

            SECTION 9.13.  Waiver of Jury Trial.  Each of the Loan Parties,  the
Agent and the Lenders  hereby  irrevocably  waives all right to trial by jury in
any action,  proceeding  or  counterclaim  (whether  based on contract,  tort or
otherwise)  arising  out of or relating  to this  Agreement  or the Notes or the
actions  of  the  Agent  or  any  Lender  in  the  negotiation,  administration,
performance or enforcement thereof.

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

                                      OMNICOM FINANCE INC., as Borrower

                                      By:    /s/ Dennis E. Hewitt
                                             ----------------------------------
                                      Title: Director & Treasurer

                                      OMNICOM CAPITAL INC., as Borrower

                                      By:    /s/ Dennis E. Hewitt
                                             ----------------------------------
                                      Title: President & CEO

                                      OMNICOM FINANCE PLC., as Borrower

                                      By:    /s/ Dennis E. Hewitt
                                             ----------------------------------
                                      Title: Director

                                      By:    /s/ A. Phipkin
                                             ----------------------------------
                                      Title: Director of Finance and Operations

                                      OMNICOM GROUP INC., as Guarantor

                                      By:    /s/ Dennis E. Hewitt
                                             ----------------------------------
                                      Title: Director

                                      CITIBANK, N.A., as Agent

                                      By     /s/ Carolyn A. Kee
                                             ----------------------------------
                                      Title: Vice President

                                       41
<PAGE>

                                 Initial Lenders
                                 ---------------

Commitment
----------

$53,750,000                           CITIBANK, N.A.

                                      By     /s/ Carolyn A. Kee
                                             ----------------------------
                                      Title: Vice President

$53,750,000                           JPMORGAN CHASE BANK

                                      By     /s/ James L. Stone
                                             ----------------------------
                                      Title: Managing Director

$43,750,000                           ABN AMRO BANK N.V.

                                      By     /s/ Richard R. Stone
                                             ----------------------------
                                      Title: Vice President

                                      By     /s/ David Carrington
                                             ----------------------------
                                      Title: Director

$43,750,000                           HSBC BANK USA

                                      By     /s/Johan Sorensson
                                             ----------------------------
                                      Title: Senior Vice President

                                 Managing Agents
                                 ---------------

$37,500,000                           BANK OF AMERICA, N.A.

                                      By     /s/Bryan A. Smith
                                             ----------------------------
                                      Title: Vice President

$37,500,000                           SOCIETE GENERALE

                                      By     /s/ Elaine Khalil
                                             ----------------------------
                                      Title: Director

$25,000,000                           SUMITOMO MITSUI BANKING CORPORATION

                                      By     /s/ Robert H. Riley, III
                                             ----------------------------
                                      Title: Senior Vice President

$25,000,000                           WACHOVIA BANK, NATIONAL ASSOCIATION

                                      By     /s/ Steven Hipsman
                                             ----------------------------
                                      Title: Director

                                       42
<PAGE>

                                     Lenders
                                     -------

$15,000,000                           BANCO BILBAO VIZCAYA ARGENTARIA

                                      By     /s/ Hector O. Villegas
                                             -----------------------------------
                                      Title: Vice President

                                      By     /s/ Santiago Hernandez
                                             -----------------------------------
                                      Title: Vice President

$12,500,000                           THE BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                                      By     /s/ Lillian Kim
                                             -----------------------------------
                                      Title: Vice President

$12,500,000                           BARCLAYS BANK PLC

                                      By     /s/ Nicholas Bell
                                             -----------------------------------
                                      Title: Director

$12,500,000                           BNP PARIBAS

                                      By     /s/ Simone G. Vinocour McKeever
                                             -----------------------------------
                                      Title: Vice President

                                      By     /s/ Nanette Baudon
                                             -----------------------------------
                                      Title: Vice President

$12,500,000                           DANSKE BANK A/S

                                      By     /s/ Henrik M. Jenson
                                             -----------------------------------
                                      Title: Vice President

                                      By     /s/ David A. Wagner
                                             -----------------------------------
                                      Title: Assistant Vice President

$12,500,000                           FORTIS CAPITAL CORP.

                                      By     /s/ Henk Raison
                                             -----------------------------------
                                      Title: Vice President

                                      By     /s/ John C. Preneta
                                             -----------------------------------
                                      Title: Executive Vice President

$12,500,000                           PNC BANK, NATIONAL ASSOCIATION

                                      By     /s/ Donald Davis
                                             -----------------------------------
                                      Title: Managing Director

$12,500,000                           U.S. BANK NATIONAL ASSOCIATION

                                      By     /s/ John Franceschi
                                             -----------------------------------
                                      Title: Vice President

                                       43
<PAGE>

$11,250,000                           THE NORTHERN TRUST COMPANY

                                      By     /s/ Christopher McKean
                                             ---------------------------
                                      Title: Second Vice President

$10,000,000                           WELLS FARGO BANK

                                      By     /s/ Bradley A. Hardy
                                             ---------------------------
                                      Title: Senior Vice President

$8,750,000                            UBS LOAN FINANCE LLC

                                      By     /s/ Barbara Ezell-McMichael
                                             ---------------------------
                                      Title: Associate Director

                                      By     /s/ Salloz Sikka
                                             ---------------------------
                                      Title: Associate Director

$7,500,000                            SANPAOLO IMI S.p.A.

                                      By     /s/ Cathy R. Lesse
                                             ---------------------------
                                      Title: Vice President

                                      By     /s/ Renato Carducci
                                             ---------------------------
                                      Title: General Manager

$6,250,000                            ALLIED IRISH BANK

                                      By     /s/ Sonya Iovieno
                                             ---------------------------
                                      Title: Relationship Manager

                                      By     /s/ Rod McKenzie
                                             ---------------------------
                                      Title: Senior Manager

$6,250,000                            MIZUHO CORPORATE BANK, LTD.

                                      By     /s/ Mark Gronich
                                             ---------------------------
                                      Title: Senior Vice President

$6,250,000                            NORDEA BANK

                                      By     /s/ Henrik M. Steffensen
                                             ---------------------------
                                      Title: First Vice President

                                      By     /s/ Gerald E. Chelius, Jr.
                                             ---------------------------
                                      Title: Second Vice President

$6,250,000                            RBC CENTURA BANK

                                      By     /s/ E. Mark Stubblefield
                                             ---------------------------
                                      Title: Market Manager

                                       44
<PAGE>

$6,250,000                            WESTPAC BANKING CORPORATION

                                      By     /s/ Tony Smith
                                             ---------------------------
                                      Title: Vice President

$5,000,000                            THE BANK OF NOVA SCOTIA

                                      By     /s/ Todd S. Meller
                                             ---------------------------
                                      Title: Managing Director

$3,750,000                            FIFTH THIRD BANK

                                      By     /s/ John Chapman
                                             ---------------------------
                                      Title: Assistant Vice President

$500,000,000  Total of the Commitments

                                       45
<PAGE>

                                                                      SCHEDULE I
                                                                   OMNICOM GROUP
                                                        364-DAY CREDIT AGREEMENT
                                                      APPLICABLE LENDING OFFICES

                                                      APPLICABLE LENDING OFFICES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
           Name of Initial Lender                   Domestic Lending Office             Eurodollar Lending Office
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                                   <C>
ABN Amro Bank N.V.                            208 South LaSalle Street              208 South LaSalle Street
                                              Suite 1500                            Suite 1500
                                              Chicago, IL  60604                    Chicago, IL  60604
                                              Attn:  Steven Smagur                  Attn:  Steven Smagur
                                              F:  312 992-5111                      F:  312 992-5111
----------------------------------------------------------------------------------------------------------------------
Allied Irish Banks, PLC                       Business Support Unit                 Business Support Unit
                                              Bankcentre                            Bankcentre
                                              Ballsbridge Dublin 4                  Ballsbridge Dublin 4
                                              Ireland                               Ireland
                                              Attn:  Antoinette Dunleavy            Attn:  Antoinette Dunleavy
                                              T:  44 207 726-8734                   T:  44 207 726-8734
                                              F:  44 207 726-8735                   F:  44 207 726-8735
----------------------------------------------------------------------------------------------------------------------
Banco Bilbao Vizcaya Argentaria               1345 Avenue of the Americas           1345 Avenue of the Americas
                                              45th Floor                            45th Floor
                                              New York, NY  10105                   New York, NY  10105
                                              Attn:  Hector Villegas                Attn:  Hector Villegas
                                              T:  212 728-1513                      T:  212 728-1513
                                              F:  212 333-2904                      F:  212 333-2904
----------------------------------------------------------------------------------------------------------------------
Bank of America, N.A.                         1850 Gateway Blvd., 5th Floor         1850 Gateway Blvd., 5th Floor
                                              Concord, CA                           Concord, CA
                                              Attn:  Vilma Tang                     Attn:  Vilma Tang
                                              T:  925 675-7336                      T:  925 675-7336
                                              F:  888 969-9285                      F:  888 969-9285
----------------------------------------------------------------------------------------------------------------------
The Bank of Nova Scotia                       1 Liberty Plaza, 24th Floor           1 Liberty Plaza, 24th Floor
                                              New York, NY  10006                   New York, NY  10006
                                              Attn:  Victor Chevallier              Attn:  Victor Chevallier
                                              T:  212 225-5064                      T:  212 225-5064
                                              F:  212 225-5145                      F:  212 225-5145
----------------------------------------------------------------------------------------------------------------------
The Bank of Tokyo-Mitsubishi Trust Company    1251 Avenue of the Americas           1251 Avenue of the Americas
                                              New York, NY  10020                   New York, NY  10020
                                              Attn:  Rolando Uy                     Attn:  Rolando Uy
                                              T:  201 413-8570                      T:  201 413-8570
                                              F:  201 521-2304                      F:  201 521-2304
----------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC                             200 Park Avenue                       200 Park Avenue
                                              New York, NY  10163                   New York, NY  10163
                                              Attn:  Eddie Cotto                    Attn:  Eddie Cotto
                                              T:  212 412 3710                      T:  212 412 3710
                                              F:  212 412 5306                      F:  212 412-5306
----------------------------------------------------------------------------------------------------------------------
BNP Paribas                                   919 Third Avenue                      919 Third Avenue
                                              New York, NY  10022                   New York, NY  10022
                                              Attn:  James Broaders                 Attn:  James Broaders
                                              T:  212 471-6630                      T:  212 471-6630
                                              F:  212 471-6603                      F:  212 471-6603
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        1
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
           Name of Initial Lender                   Domestic Lending Office             Eurodollar Lending Office
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                                   <C>
Citibank, N.A.                                Two Penns Way                         Two Penns Way
                                              New Castle, DE  19720                 New Castle, DE  19720
                                              Attn:  Timothy Smith                  Attn:  Timothy Smith
                                              T:  302 894-6059                      T:  302 894-6059
                                              F:  212 994-0961                      F:  212 994-0961
----------------------------------------------------------------------------------------------------------------------
Danske Bank A/S                               299 Park Avenue, 14th Floor           299 Park Avenue, 14th Floor
                                              New York, NY  10171                   New York, NY  10171
                                              Attn:  Joseph Brandariz               Attn:  Joseph Brandariz
                                              T:  212 984-8430                      T:  212 984-8430
                                              F:  212 984-9570                      F:  212 984-9570
----------------------------------------------------------------------------------------------------------------------
Fifth Third Bank                              38 Fountain Square                    38 Fountain Square
                                              Cincinnati, OH                        Cincinnati, OH
                                              Attn:  Ann Pierson                    Attn:  Ann Pierson
                                              T:  513 534-5295                      T:  513 534-5295
                                              F:  513 534-5947                      F:  513 534-5947
----------------------------------------------------------------------------------------------------------------------
Fortis Capital Corp.                          301 Tresser Blvd.                     301 Tresser Blvd.
                                              9th Floor                             9th Floor
                                              Stamford, CT  06901                   Stamford, CT  06901
                                              Attn:  Hui Wang                       Attn:  Hui Wang
                                              T:  203 705-5758                      T:  203 705-5758
                                              F:  203 705-5899                      F:  203 705-5899
----------------------------------------------------------------------------------------------------------------------
HSBC Bank USA                                 One HSBC Center 26th Floor            One HSBC Center 26th Floor
                                              Buffalo, NY  14203                    Buffalo, NY  14203
                                              Attn:  Donna L. Riley                 Attn:  Donna L. Riley
                                              T:  716 841-4178                      T:  716 841-4178
                                              F:  716 841-0269                      F:  716 841-0269
----------------------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank                           One Chase Manhattan Plaza             One Chase Manhattan Plaza
                                              New York, NY  10081                   New York, NY  10081
                                              Attn:  Donna Montgomery               Attn:  Donna Montgomery
                                              T:  212 522-7477                      T:  212 522-7477
                                              F:  212 552-5700                      F:  212 552-5700
----------------------------------------------------------------------------------------------------------------------
Mizuho Corporate Bank, Ltd.                   Harborside Financial Center           Harborside Financial Center
                                              1800 Plaza Ten                        1800 Plaza Ten
                                              Jersey City, NJ  07311-4098           Jersey City, NJ  07311-4098
                                              Attn:  Sophia White-Lammond           Attn:  Sophia White-Lammond
                                              T:  201 626-9134                      T:  201 626-9134
                                              F:  201 626-9950                      F:  201 626-9950
----------------------------------------------------------------------------------------------------------------------
Nordea Bank Finland Plc                       437 Madison Avenue, 21st floor        437 Madison Avenue, 21st floor
                                              New York, NY 10022                    New York, NY 10022
                                              Attn:  Sonia Earle                    Attn:  Sonia Earle
                                              T: 212-318-9596                       T: 212-318-9596
                                              F: 212-750-9118                       F: 212-750-9118
----------------------------------------------------------------------------------------------------------------------
The Northern Trust Company                    50 South LaSalle Street               50 South LaSalle Street
                                              Chicago, IL  60675                    Chicago, IL  60675
                                              Attn:  Andrea Pasch                   Attn:  Andrea Pasch
                                              T:  312 444-3498                      T:  312 444-3498
                                              F:  312 630-1566                      F:  312 630-1566
----------------------------------------------------------------------------------------------------------------------
PNC Bank, National Association                500 First Avenue                      500 First Avenue
                                              Pittsburgh, PA  15219                 Pittsburgh, PA  15219
                                              Attn:  April Atwater                  Attn:  April Atwater
                                              T:  412 766-6214                      T:  412 766-6214
                                              F:  412 766-4586                      F:  412 766-4586
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        2
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
           Name of Initial Lender                   Domestic Lending Office             Eurodollar Lending Office
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                                   <C>
RBC Centura Bank                              200 Providence Road                   200 Providence Road
                                              3rd Floor                             3rd Floor
                                              Charlotte, NC  28207                  Charlotte, NC  28207
                                              Attn:  Beth Wright                    Attn:  Beth Wright
                                              T:  704 686-1588                      T:  704 686-1588
                                              F:  704 686-1499                      F:  704 686-1499
----------------------------------------------------------------------------------------------------------------------
SANPAOLO IMI S.p.A.                           245 Park Avenue, 35th Floor           245 Park Avenue, 35th Floor
                                              New York, NY  10167                   New York, NY  10167
                                              Attn:  Jerry Suarez                   Attn:  Jerry Suarez
                                              T:  212 692-3075                      T:  212 692-3075
                                              F:  212 692-3178                      F:  212 692-3178
----------------------------------------------------------------------------------------------------------------------
Scotiabank Europe plc                         Scotia House                          Scotia House
                                              33 Finsbury Square                    33 Finsbury Square
                                              London                                London
                                              EC2A 1BB                              EC2A 1BB
                                              Attn:  Martin Neal / Lee Boden        Attn:  Martin Neal / Lee Boden
                                              T:  00 44 20 7826 5869 / 5633         T:  00 44 20 7826 5869 / 5633
                                              F:  00 44 20 7826 5617                F:  00 44 20 7826 5617
----------------------------------------------------------------------------------------------------------------------
Societe Generale                              2100 Ross Avenue                      2100 Ross Avenue
                                              Dallas, TX  75201                     Dallas, TX  75201
                                              Attn:  Trina Hooves                   Attn:  Trina Hooves
                                              T:  214 979-2742                      T:  214 979-2742
                                              F:  214 754-0171                      F:  214 754-0171
----------------------------------------------------------------------------------------------------------------------
Sumitomo Mitsui Banking Corporation           277 Park Avenue                       277 Park Avenue
                                              New York, NY  10172                   New York, NY  10172
                                              Attn:  David Speir                    Attn:  David Speir
                                              F:  212 224-4384                      F:  212 224-4384
----------------------------------------------------------------------------------------------------------------------
UBS Loan Finance LLC                          677 Washington Blvd.                  677 Washington Blvd.
                                              Stamford, CT  06901                   Stamford, CT  06901
                                              Attn:  Marie Haddad                   Attn:  Marie Haddad
                                              T:  203 719-5609                      T:  203 719-5609
                                              F:  203 719-3888                      F:  203 719-3888
----------------------------------------------------------------------------------------------------------------------
U.S. Bank National Association                777 East Wisconsin Avenue             777 East Wisconsin Avenue
                                              Mail Code MK-WI-TGCB                  Mail Code MK-WI-TGCB
                                              Milwaukee, WI  53202                  Milwaukee, WI  53202
                                              Attn:  John Franceschi                Attn:  John Franceschi
                                              T:  414 765-5656                      T:  414 765-5656
----------------------------------------------------------------------------------------------------------------------
Wachovia Bank, National Association           201 South College Street, CP-17       201 South College Street, CP-17
                                              Charlotte, NC  28288                  Charlotte, NC  28288
                                              Attn:  Sharon Gibson                  Attn:  Sharon Gibson
                                              T:  704 715-7608                      T:  704 715-7608
                                              F:  704 374-2802                      F:  704 374-2802
----------------------------------------------------------------------------------------------------------------------
Wells Fargo Bank                              201 Third Street                      201 Third Street
                                              MAC A0187-081                         MAC A0187-081
                                              San Francisco, CA  94103              San Francisco, CA  94103
                                              Attn:  Cindy Dunn                     Attn:  Cindy Dunn
                                              T:  415 477-5431                      T:  415 477-5431
                                              F:  415 979-0675                      F:  415 979-0675
----------------------------------------------------------------------------------------------------------------------
Westpac Banking Corporation                   255 Elizabeth Street, 3rd Floor       255 Elizabeth Street, 3rd Floor
                                              Sydney, Australia  2000               Sydney, Australia  2000
                                              Attn:  Loan Operations                Attn:  Loan Operations
                                              F:  011 44 207 621-7608               F:  011 44 207 621-7608
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        3
<PAGE>

                                SCHEDULE 3.01(b)

                              DISCLOSED LITIGATION

Beginning on June 13, 2002,  several  proposed  class actions were filed against
Omnicom Group Inc. ("OGI") and certain of OGI's senior  executives in the United
States  District  Court for the Southern  District of New York. The actions have
since been  consolidated  under the caption In re Omnicom Group Inc.  Securities
Litigation,  No.  02-CV4483 (RCC) on behalf of a proposed class of purchasers of
OGI's common stock between February 20, 2001 and June 11, 2002. The consolidated
amended complaint alleges among other things that OGI's public filings and other
public statements  during that period contained false and misleading  statements
or omitted to state material  information  relating to (1) OGI's  calculation of
the organic  growth  component of  period-to-period  revenue  growth,  (2) OGI's
valuation of certain internet investments made by OGI's Communicade Group, which
OGI  contributed  to Seneca  Investments  LLC in 2001, and (3) the existence and
amount of certain contingent future obligations in respect of acquisitions.  The
complaint  seeks an unspecified  amount of  compensatory  damages plus costs and
attorneys' fees.  Defendants have moved to dismiss the complaint.  The court has
not yet decided the motion. Discovery has not yet commenced in this proceeding.

In addition to the proceedings described above, a shareholder  derivative action
was  filed  on June  28,  2002 in New York  State  Court  in New York  City by a
plaintiff  shareholder,  purportedly  on  OGI's  behalf,  alleging  breaches  of
fiduciary duty, disclosure failures, abuse of control and gross mismanagement in
connection with the formation of Seneca  Investments LLC,  including as a result
of  open-market  sales of OGI's common  shares by OGI's  chairman and two former
employee  directors.  The complaint seeks the imposition of a constructive trust
on profits  received in the stock sales, an unspecified  amount of money damages
and  attorneys'  fees and other  costs.  A motion has been filed to dismiss this
action.  Subsequently,  the parties  agreed to stay further  proceedings in this
case pending additional developments in the class action cases described above.

Management presently expects to defend these cases vigorously. Currently, OGI is
unable to determine the outcome of these cases and the effect on OGI's financial
position  or  results of  operations.  The  outcome  of any of these  matters is
inherently uncertain and may be affected by future events.

<PAGE>

                          SCHEDULES 5.02(a) AND 5.02(d)

                        EXISTING LIENS AND EXISTING DEBT

<TABLE>
<CAPTION>
                                                                      Amount Due
Subsidiary Borrower                     Lender(s)                    Each Lender         Total Debt
-------------------                     ---------                    -----------         ----------
<S>                                   <C>                              <C>               <C>
DAS Fitzgerald                        Citizens Leasing Corp.              256,643
                                      CIT Group                           165,688
                                      BankNorth                           154,982           577,293

DAS Fleishman-Hillard                 JTA                                   1,573
                                      SBC Capital Inc.                      4,030             5,603

DAS Gavin Anderson                    NEC Leasing                          14,680
                                      Bank of Tokyo Mitsubishi            479,350
                                      Daimler Chrysler                     16,140           510,170

DAS GMR                               Key Corporate Financial             113,370           113,370

DAS GPC Domestic                      Lucent                               14,228
                                      Xerox                                 9,717            23,945

DAS Grizzard                          Xerox                                29,563            29,563

DAS Interbrand Corp.                  Key Equipment Finance               130,713           130,713

DAS Matthews Media Group Inc.         NTFC Capital                         18,204            18,204

DAS National In-Store                 Advanta                               7,533
                                      Chesterfield                          3,997
                                      USBancorp                            55,201
                                      LPI                                   4,144
                                      Safeline                              6,380            77,255

DAS Porter Novelli                    Steelcase                            57,122
                                      NEC Leasing                          17,815            74,937

DAS The Promotion Network             GMAC                                 44,005            44,055

DAS TPG                               Newcourt Leasing                     46,244
                                      Copelco Capital                      16,549
                                      Wells Fargo                          11,154
                                      Citicorp                             15,618            89,545

DAS U30 Group                         Dryad                                16,289            16,289

OMG Organic                           Wells Fargo                           4,666
                                      Neopost                               2,389             7,055

Cardinia Real Estate                  Osprey House                     17,044,598        17,044,598
                                                                      -----------       -----------
                  TOTAL                                               $18,748,289       $18,748,289
                                                                      ===========       ===========
</TABLE>

            Omnicom  Group  Inc.  has  three  zero  coupon   convertible   bonds
outstanding  maturing in 2031, 2032 and 2033. The principal amounts  outstanding
for  each of  these  bonds  are  $847,031,000,  $892,273,000  and  $600,000,000,
respectively.  In addition, Omnicom Group Inc. has a 5.20% Euro-denominated note
with a principal amount outstanding of (euro)152,449,017.

<PAGE>

                                                             EXHIBIT A - FORM OF
                                                                 PROMISSORY NOTE

U.S.$_______________                  Dated:  _______________, 200_

            FOR VALUE  RECEIVED,  the  undersigned,  [OMNICOM  FINANCE  INC.,  a
Delaware  corporation][OMNICOM CAPITAL INC., a Connecticut  corporation][OMNICOM
FINANCE PLC, a corporation  organized under the laws of England and Wales], (the
"Borrower"),  HEREBY  PROMISES TO PAY to the order of  _________________________
(the "Lender") for the account of its Applicable  Lending Office on the later of
the  Termination  Date and the date  designated  pursuant to Section 2.05 of the
Credit Agreement (each as defined in the Credit Agreement referred to below) the
principal  sum of  U.S.$[amount  of the Lender's  Commitment  in figures] or, if
less, the aggregate  principal  amount of the Advances made by the Lender to the
Borrower pursuant to the 364-Day Credit Agreement dated as of May 24, 2004 among
the Borrowers  referred to therein  (including the undersigned),  the Lender and
certain other lenders parties  thereto,  Citigroup  Global Markets Inc. and J.P.
Morgan Securities Inc., as lead arrangers and book managers, ABN AMRO Bank N.V.,
as syndication  agent,  JPMorgan Chase Bank and HSBC Bank USA, as  documentation
agents,  and Citibank,  N.A., as Agent for the Lender and such other lenders (as
amended or modified from time to time, the "Credit Agreement"; the terms defined
therein being used herein as therein defined) outstanding on such date.

            The Borrower promises to pay interest on the unpaid principal amount
of each  Advance from the date of such Advance  until such  principal  amount is
paid in full, at such interest rates, and at such times, as are specified in the
Credit Agreement.

            Both  principal  and  interest  are  payable in lawful  money of the
United States of America to Citibank,  as Agent,  at 388 Greenwich  Street,  New
York, New York 10013, in same day funds. Each Advance owing to the Lender by the
Borrower pursuant to the Credit  Agreement,  and all payments made on account of
principal  thereof,  shall be recorded by the Lender and,  prior to any transfer
hereof,  endorsed on the grid attached  hereto which is part of this  Promissory
Note.

            This  Promissory  Note  shall  be  governed  by,  and  construed  in
accordance with, the laws of the State of New York.

            This  Promissory  Note is one of the Notes  referred  to in,  and is
entitled to the benefits of, the Credit Agreement.  The Credit Agreement,  among
other  things,  (i)  provides  for the making of  Advances  by the Lender to the
Borrower  from  time to time in an  aggregate  amount  not to exceed at any time
outstanding the U.S. dollar amount first above  mentioned,  the  indebtedness of
the Borrower resulting from each such Advance being evidenced by this Promissory
Note and (ii) contains  provisions for  acceleration of the maturity hereof upon
the happening of certain  stated events and also for  prepayments  on account of
principal  hereof  prior to the  maturity  hereof upon the terms and  conditions
therein specified.

                                             [OMNICOM FINANCE INC.]
                                             [OMNICOM CAPITAL INC.]
                                             [OMNICOM FINANCE PLC]

                                             By _________________
                                                  Title:

<PAGE>

                       ADVANCES AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
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                                               Amount of
        Date          Amount of             Principal Paid           Unpaid Principal             Notation
                       Advance                or Prepaid                 Balance                   Made By
------------------------------------------------------------------------------------------------------------------
<S>     <C>           <C>                   <C>                      <C>                          <C>

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

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</TABLE>

                                       2
<PAGE>

                                                   EXHIBIT B - FORM OF NOTICE OF
                                                                       BORROWING

Citibank, N.A., as Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  Two Penns Way
  New Castle, Delaware 19720
                                     [Date]

            Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

            The   undersigned,    [Omnicom   Finance    Inc.][Omnicom    Capital
Inc.][Omnicom  Finance  plc],  (the  "Borrower"),  refers to the 364-Day  Credit
Agreement,  dated as of May 24, 2004 (as amended or modified  from time to time,
the "Credit  Agreement",  the terms defined therein being used herein as therein
defined),  among the Borrowers  referred to therein (including the undersigned),
certain Lenders parties  thereto,  Citigroup Global Markets Inc. and J.P. Morgan
Securities  Inc., as lead  arrangers and book  managers,  ABN AMRO Bank N.V., as
syndication  agent,  JPMorgan  Chase  Bank and HSBC Bank USA,  as  documentation
agents,  and Citibank,  N.A.,  as Agent for said  Lenders,  and hereby gives you
notice,  irrevocably,  pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Borrowing under the Credit Agreement,  and in that
connection  sets forth below the  information  relating to such  Borrowing  (the
"Proposed Borrowing") as required by Section 2.02(a) of the Credit Agreement:

            (i) The Business Day of the Proposed  Borrowing is  _______________,
      200_.

            (ii) The Type of Advances comprising the Proposed Borrowing is [Base
      Rate Advances] [Eurodollar Rate Advances].

            (iii)  The   aggregate   amount  of  the   Proposed   Borrowing   is
      $_______________.

            [(iv) The initial  Interest  Period for each Eurodollar Rate Advance
      made as part of the  Proposed  Borrowing  is _____  month[s].  [If nine is
      selected,  specify  alternate  Interest  Period of one, two,  three or six
      months.]]

            The undersigned  hereby certifies that the following  statements are
true on the date hereof, and will be true on the date of the Proposed Borrowing:

            (A) the representations and warranties  contained in Section 4.01 of
      the Credit  Agreement  (except the  representations  set forth in the last
      sentence of subsection (e) thereof and in subsection  (f)(i)  thereof) are
      correct,  before and after giving effect to the Proposed  Borrowing and to
      the  application  of the proceeds  therefrom,  as though made on and as of
      such date; and

<PAGE>

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

                                    Very truly yours,

                                    [OMNICOM FINANCE INC.]
                                    [OMNICOM CAPITAL INC.]
                                    [OMNICOM FINANCE PLC]

                                    By ___________________
                                         Title:

                                       2
<PAGE>

                                                             EXHIBIT C - FORM OF
                                                       ASSIGNMENT AND ACCEPTANCE

            Reference is made to the 364-Day  Credit  Agreement  dated as of May
24,  2004 (as  amended or modified  from time to time,  the "Credit  Agreement")
among Omnicom  Finance Inc.,  Omnicom  Capital Inc. and Omnicom Finance plc (the
"Borrowers"),  Omnicom Group Inc. (the "Guarantor"),  the Lenders (as defined in
the Credit Agreement),  Citigroup Global Markets Inc. and J.P. Morgan Securities
Inc., as lead  arrangers and book  managers,  ABN AMRO Bank N.V., as syndication
agent,  JPMorgan  Chase Bank and HSBC Bank USA,  as  documentation  agents,  and
Citibank,  N.A.,  as agent for the Lenders (the  "Agent").  Terms defined in the
Credit Agreement are used herein with the same meaning.

            The "Assignor"  and the "Assignee"  referred to on Schedule I hereto
agree as follows:

            1. The Assignor  hereby sells and assigns to the  Assignee,  and the
Assignee hereby  purchases and assumes from the Assignor,  an interest in and to
the Assignor's  rights and obligations under the Credit Agreement as of the date
hereof equal to the  percentage  interest  specified on Schedule 1 hereto of all
outstanding  rights and  obligations  under the Credit  Agreement.  After giving
effect to such sale and assignment,  the Assignee's Commitment and the amount of
the Advances owing to the Assignee will be as set forth on Schedule 1 hereto.

            2. The Assignor (i) represents and warrants that it is the legal and
beneficial  owner of the interest  being  assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty  and  assumes  no  responsibility   with  respect  to  any  statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability,  genuineness,  sufficiency
or value of the Credit Agreement or any other  instrument or document  furnished
pursuant  thereto;  (iii) makes no  representation  or  warranty  and assumes no
responsibility  with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations  under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Note[, if any] held by the Assignor [and requests that the
Agent exchange such Note for a new Note payable to the order of [the Assignee in
an amount equal to the Commitment assumed by the Assignee pursuant hereto or new
Notes payable to the order of the Assignee in an amount equal to the  Commitment
assumed by the Assignee  pursuant hereto and] the Assignor in an amount equal to
the   Commitment   retained  by  the  Assignor   under  the  Credit   Agreement,
[respectively,] as specified on Schedule 1 hereto.

            3. The  Assignee  (i)  confirms  that it has  received a copy of the
Credit Agreement,  together with copies of the financial  statements referred to
in Section  4.01  thereof and such other  documents  and  information  as it has
deemed  appropriate  to make its own credit  analysis and decision to enter into
this  Assignment and  Acceptance;  (ii) agrees that it will,  independently  and
without  reliance upon the Agent,  the Assignor or any other Lender and based on
such  documents  and  information  as it shall  deem  appropriate  at the  time,
continue to make its own credit  decisions in taking or not taking  action under
the Credit  Agreement;  (iii)  confirms  that it is an Eligible  Assignee;  (iv)
appoints and authorizes the Agent to take such action as agent on its behalf and
to  exercise  such  powers  and  discretion  under the Credit  Agreement  as are
delegated  to the Agent by the terms  thereof,  together  with such  powers  and
discretion as are reasonably incidental thereto; (v) agrees that it will perform
in accordance with their terms all of the  obligations  that by the terms of the
Credit  Agreement  are  required  to be  performed  by it as a Lender;  and (vi)
attaches any U.S. Internal Revenue Service or U.K. Inland Revenue forms required
under Section 2.13 of the Credit Agreement.

            4.  Following the execution of this  Assignment and  Acceptance,  it
will be delivered to the Agent for  acceptance  and recording by the Agent.  The
effective date for this Assignment and Acceptance  (the "Effective  Date") shall
be the date of acceptance  hereof by the Agent,  unless  otherwise  specified on
Schedule 1 hereto.

            5.  Upon such  acceptance  and  recording  by the  Agent,  as of the
Effective  Date, (i) the Assignee shall be a party to the Credit  Agreement and,
to the extent provided in this Assignment and Acceptance,

<PAGE>

have the rights and  obligations  of a Lender  thereunder  and (ii) the Assignor
shall, to the extent provided in this Assignment and Acceptance,  relinquish its
rights and be released from its obligations under the Credit Agreement.

            6. Upon such  acceptance and recording by the Agent,  from and after
the Effective Date, the Agent shall make all payments under the Credit Agreement
and the Notes in respect of the interest  assigned  hereby  (including,  without
limitation,  all payments of principal,  interest and facility fees with respect
thereto) to the Assignee.  The Assignor and Assignee shall make all  appropriate
adjustments  in payments  under the Credit  Agreement  and the Notes for periods
prior to the Effective Date directly between themselves.

            7.  This  Assignment  and  Acceptance  shall  be  governed  by,  and
construed in accordance with, the laws of the State of New York.

            8. This  Assignment  and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate  counterparts,  each of
which when so executed  shall be deemed to be an original and all of which taken
together shall  constitute one and the same  agreement.  Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier  shall
be effective as delivery of a manually  executed  counterpart of this Assignment
and Acceptance.

            IN WITNESS  WHEREOF,  the  Assignor  and the  Assignee  have  caused
Schedule 1 to this  Assignment  and  Acceptance to be executed by their officers
thereunto duly authorized as of the date specified thereon.

                                       2
<PAGE>

                                   Schedule 1
                                       to
                            Assignment and Acceptance

Percentage interest assigned:                                           _____%

Assignee's Commitment:                                                  $______

Aggregate outstanding principal amount of Advances assigned:            $______

Principal amount of Note payable to Assignee:                           $______

Principal amount of Note payable to Assignor:                           $______

Effective Date*:  _______________, 200_

                                         [NAME OF ASSIGNOR], as Assignor

                                         By ____________________________
                                         Title:

                                         Dated:  _______________, 200_

                                         [NAME OF ASSIGNEE], as Assignee

                                         By ____________________________
                                         Title:

                                         Dated:  _______________, 200_

                                         Domestic Lending Office:
                                                  [Address]

                                         Eurodollar Lending Office:
                                                  [Address]

----------
*     This date should be no earlier than five  Business Days after the delivery
      of this Assignment and Acceptance to the Agent.

                                       3
<PAGE>

Accepted [and Approved]** this
__________ day of _______________, 200_

CITIBANK, N.A., as Agent

By ____________________________________
   Title:

[Approved this __________ day
of _______________, 200_

OMNICOM GROUP INC.

By ____________________________________]*
   Title:

----------
**    Required  if the  Assignee  is an  Eligible  Assignee  solely by reason of
      clause (iii) of the definition of "Eligible Assignee".

*     Required  if the  Assignee  is an  Eligible  Assignee  solely by reason of
      clause (iii) of the definition of "Eligible Assignee".

                                       4
<PAGE>

                                                           EXHIBIT D-1 - FORM OF
                                                     OPINION OF NEW YORK COUNSEL
                                                               FOR THE BORROWERS

                                                  May 24, 2004

To each of the Lenders parties
  to the 364-Day Credit Agreement referred to below

       Omnicom Finance Inc., Omnicom Capital Inc. and Omnicom Finance plc

Ladies and Gentlemen:

            This opinion is furnished to you pursuant to Section  3.01(h)(iv) of
the 364-Day Credit Agreement, dated as of May 24, 2004 (the "Credit Agreement"),
by and among Omnicom Finance Inc.  ("OFI"),  Omnicom Capital Inc.  ("OCI"),  and
Omnicom  Finance  plc  ("OFP",   and,   collectively   with  OFI  and  OCI,  the
"Borrowers"),  Omnicom  Group  Inc.  (the  "Guarantor"),  the  banks,  financial
institutions and other institutional lenders and initial issuing banks listed on
the signature  pages  thereof,  Citigroup  Global  Markets Inc. and J.P.  Morgan
Securities Inc., as joint lead arrangers and book managers,  ABN Amro Bank N.V.,
as syndication  agent,  JPMorgan Chase Bank and HSBC Bank USA, as  documentation
agents,  and  Citibank,  N.A.,  as  administrative  agent (the  "Agent") for the
Lenders. Capitalized terms used herein without definition are used as defined in
the Credit Agreement.

            We have acted as New York counsel for the Loan Parties in connection
with the preparation, execution and delivery of the Credit Agreement.

            In  connection  with this  opinion,  we have  examined  originals or
copies (including conformed copies) of the following documents:

            (1) The Credit Agreement.

            (2) The documents  furnished by the Loan Parties pursuant to Article
      III of the  Credit  Agreement  (together  with the Credit  Agreement,  the
      "Credit Documents").

            (3) The Certificate of Incorporation and all amendments thereto (the
      "Charter")  of each of OFI, OCI and the Guarantor  (collectively,  the "US
      Loan  Parties"),  as certified as of a recent date by a public official of
      the state of its incorporation.

            (4) The by-laws and all amendments  thereto (the  "By-laws") of each
      US Loan Party, as certified to us by each US Loan Party.

            (5) A certificate  of the Secretary of State of Delaware,  dated May
      6, 2004,  attesting to the continued corporate existence and good standing
      of OFI in that State as of the date thereof.

            (6) A certificate  of the Secretary of State of  Connecticut,  dated
      May 7, 2004,  attesting  to the  continued  corporate  existence  and good
      standing of OCI in that State as of the date thereof.

<PAGE>

            (7) A certificate  of the Secretary of State of New York,  dated May
      7, 2004,  attesting to the continued corporate existence and good standing
      of the Guarantor in that State as of the date thereof.

            In addition,  we have  examined  originals  or copies,  certified or
otherwise identified to our satisfaction, of such records, instruments and other
documents,  and have made such other investigations,  as we have deemed relevant
and necessary as a basis for the opinions hereinafter set forth.

            For the purposes hereof,  we have assumed,  with your permission and
without independent verification of any kind: (a) that the signatures of persons
signing all  documents  in  connection  with which this  opinion is rendered are
genuine;  (b) the legal capacity of all natural persons;  (c) that all documents
submitted to us as originals or duplicate originals are authentic;  and (d) that
all documents  submitted to us as copies,  whether  certified or not, conform to
authentic original documents.  As to questions of fact relevant to this opinion,
we have assumed, without independent  investigation or verification of any kind,
the accuracy of the  representations  and  warranties of the Loan Parties in the
Credit  Agreement  and  have  relied  upon  certificates  and  oral  or  written
statements  and  other  information  of  public  officials,   and  officers  and
representatives  of the Loan  Parties.  For purposes of the opinion set forth in
the  paragraph  numbered 1 below,  we have  relied  solely  upon  copies of good
standing  certificates  as certified by public  officials as of the dates and in
the jurisdictions listed on Annex I hereto.

            In rendering the opinions  expressed  below,  we have assumed,  with
your permission and without any independent investigation or verification of any
kind,  that: (i) OFP has been duly organized and is validly existing and in good
standing  under  the  laws  of its  jurisdiction  of  incorporation  and is duly
qualified in each other jurisdiction in which the conduct of its business or the
ownership of its property makes such qualification necessary;  (ii) OFP has full
power and  authority  to execute,  deliver and perform the Credit  Documents  to
which it is a party; (iii) the execution, delivery and performance of the Credit
Documents by OFP have been duly authorized by all requisite  corporate action on
the part of OFP; (iv) the Credit Documents have been duly executed and delivered
by OFP; and (v) the execution,  delivery and performance of the Credit Documents
by OFP do not and will not violate the Charter,  By-laws or other organizational
documents of OFP. We have further assumed,  with your permission and without any
independent investigation or verification of any kind, that the Credit Agreement
constitutes  the valid and  legally  binding  obligation  of each  Person  party
thereto  (other than the US Loan  Parties  and OFP),  enforceable  against  such
Person in  accordance  with its terms.  Furthermore,  in giving the opinions set
forth in paragraphs numbered 4, 5 and 6 below, we express no opinion as to state
securities or blue sky laws.

            Based upon the foregoing,  and subject to the  limitations set forth
herein, we are of the opinion that:

            1. Each US Loan Party (i) is a validly existing  corporation in good
standing under the laws of the jurisdiction of its incorporation listed on Annex
I hereto and (ii) has the corporate  power and authority to own its property and
assets and to transact the business in which it is engaged.

            2. Each US Loan Party has the  corporate  power to execute,  deliver
and perform the terms and provisions of the Credit Agreement and the Notes to be
delivered by it and has taken all  necessary  corporate  action to authorize the
execution,  delivery and performance of the Credit Agreement and the Notes to be
delivered by it. Each US Loan Party has duly  executed and  delivered the Credit
Agreement and the Notes to be delivered by it.

            3. The Credit  Agreement  constitutes  the legal,  valid and binding
obligation of each Loan Party enforceable  against such Loan Party in accordance
with its terms.  Each Note to be delivered by a Loan Party will  constitute  the
legal, valid and binding obligation of such Loan Party enforceable  against such
Loan Party in accordance with its terms.

            4. Neither the execution and delivery,  nor the performance,  by any
US Loan Party of the Credit  Agreement  or the Notes to be  delivered by it, nor
compliance by such US Loan Party with the

                                       2
<PAGE>

terms and  provisions  thereof,  (i) will  contravene  any provision of any law,
statute, rule or regulation (including, without limitation,  Regulation X of the
Board of  Governors  of the  Federal  Reserve  System) of the  United  States of
America or the State of New York  applicable  to such US Loan Party or (ii) will
violate any provision of the Charter or By-Laws of such US Loan Party.

            5. Neither the execution and delivery,  nor the performance,  by OFP
of the Credit  Agreement and the Notes to be delivered by it, nor  compliance by
it with the terms and provisions  thereof,  will contravene any provision of any
law, statute, rule or regulation (including, without limitation, Regulation X of
the Board of Governors of the Federal  Reserve  System) of the United  States of
America or the State of New York applicable to OFP.

            6. No order, consent, approval, license, authorization or validation
of, or filing,  recording or registration  with (except as have been obtained or
made on or prior to the date  hereof),  or  exemption  by, any  governmental  or
public body or  authority of the United  States of America,  or the State of New
York,  applicable to any Loan Party is required to authorize,  or is required in
connection  with, (i) the execution,  delivery and performance by any Loan Party
of the  Credit  Agreement  and the  Notes  to be  delivered  by it or  (ii)  the
enforceability  of the Credit  Agreement  and the Notes to be delivered by it in
accordance with their terms against such Loan Party.

            7. The  choice of New York law as the  governing  law of the  Credit
Agreement  and the  Notes is,  under the laws of the State of New York,  a valid
choice of law.

            8. The  consent  by each Loan  Party in  Section  9.11 of the Credit
Agreement to the  jurisdiction  of courts  sitting in the State of New York is a
valid consent to the jurisdiction of such courts.

            Our opinions are subject to the qualifications that:

            A. The  enforceability  of the  Credit  Agreement  and the  Notes is
subject  to and  may  be  limited  by  bankruptcy,  insolvency,  reorganization,
fraudulent  conveyance,  moratorium,  or  other  similar  laws  relating  to  or
affecting the rights of creditors  generally  (including such as may deny giving
effect to waivers of debtors' or  guarantors'  rights),  and the  application of
general  principles of equity  (regardless of whether considered in a proceeding
in  equity  or  at  law),  including,   without  limitation,  (i)  the  possible
unavailability of specific performance, injunctive relief or any other equitable
remedy and (ii)  concepts of  materiality,  reasonableness,  good faith and fair
dealing.  Accordingly,  no opinion is given herein as to (i) the availability of
the right to accelerate any obligation and certain remedies  provided for in the
Credit  Agreement  in  the  event  of  a  nonmaterial   default,   or  (ii)  the
enforceability  of any provision of the Credit Agreement  relating to cumulation
of  remedies or waiving  the remedy of  specific  performance,  or the waiver of
debtors' rights.

            B. We express no opinion as to the enforceability of any contractual
provision  in  the  Credit  Agreement  as to  waiver  of any  procedural  right,
including,  without limitation, (i) the first sentence of Section 9.11(a) of the
Credit  Agreement  insofar  as  such  sentence  relates  to the  subject  matter
jurisdiction  of a federal court of the United States of America  sitting in New
York City to adjudicate any controversy  related to any of the Credit Documents,
and (ii) the waiver of  inconvenient  forum set forth in Section  9.11(b) of the
Credit  Agreement  with respect to  proceedings in a federal court of the United
States of America sitting in New York City.

            C. We express no opinion as to the enforceability of any contractual
provision  in the  Credit  Documents  relating  to  indemnification,  including,
without  limitation,  with respect to the  enforceability of Section 9.04 of the
Credit  Agreement,  to the extent  that these may be limited  (i) in the case of
litigation  against  any Loan  Party  which is decided  adversely  to the person
claiming  indemnification or in a case involving a claim of indemnification  for
attorneys' fees, (ii) by laws rendering unenforceable  indemnification  contrary
to federal or state securities laws and the public policy  underlying such laws,
or (iii) by laws  limiting  the  enforceability  of  provisions  exculpating  or
exempting a party, or requiring  indemnification  of a party,  for liability for
its own action or inaction,  to the extent the action or inaction involves gross
negligence, recklessness, willful misconduct or unlawful conduct.

                                       3
<PAGE>

            D. Furthermore, no opinion is given herein as to:

            (i)  Section  7.02 of the Credit  Agreement,  to the extent  that it
      relates to action  contemplated by Section 7.02(b) of the Credit Agreement
      taken without the Guarantor's consent, which may not be enforceable to the
      extent that the Guaranteed Obligations are materially altered; or

            (ii)  Section  7.02(h)  of the  Credit  Agreement,  to the extent it
      relates to any waiver of an applicable statute of limitations; or

            (iii) the  enforceability  of the right of  setoff  provided  for in
      Section 9.05 of the Credit  Agreement (A) in respect of an interest  under
      the Credit  Agreement  purchased  by a Lender  pursuant to Section 2.14 or
      9.07 of the Credit Agreement, to the extent the relevant purchase does not
      give rise to a direct  obligation  of any Borrower to such Lender,  or (B)
      insofar as that right relates to setoff of unmatured obligations under the
      Credit  Agreement or of obligations owed to any Loan Party by an Affiliate
      of a Lender or by an Affiliate of the Agent.

            We are  members  of the Bar of the State of New York and  express no
opinion as to the laws of any  jurisdiction  other than those of the laws of the
State of New York, the General  Corporation Law of the State of Delaware and the
federal  laws of the  United  States  of  America.  Our  opinions  set  forth in
paragraph  numbers 1, 2 and 4(ii) above,  as they apply to OCI, are based on our
review of the Connecticut  Business Corporation Act as reported by 33 Conn. Gen.
Stat.  Ann. ss.  33-600 et seq.  (West 1997,  2004 supp.) to be in effect on the
date of this opinion letter.

            This opinion is rendered solely to you by us as New York counsel for
the Loan Parties in connection with the transactions  contemplated by the Credit
Agreement and the Notes. Each Lender (and its successors and permitted  assigns)
may rely upon this opinion in connection with those  transactions.  This opinion
may not be  relied  upon  in any  other  manner  or for any  other  purpose,  or
furnished or relied upon by any other person, without our prior written consent.
The  information  set  forth  herein  is as of the date of this  letter,  and we
disclaim  any  undertaking  to advise you of  changes  which  thereafter  may be
brought to our attention.

                                                 Very truly yours,

                                                 /s/ Dewey Ballantine LLP

                                       4
<PAGE>

                                                                         ANNEX I

                                                         Type and Date of
      Name and Jurisdiction                        Certificate in Jurisdiction
        of Incorporation                                 of Incorporation
----------------------------------                 -----------------------------

Omnicom Finance Inc. (Delaware)                    Good Standing - May 6, 2004

Omnicom Capital Inc. (Connecticut)                 Legal Existence - May 7, 2004

Omnicom Group Inc. (New York)                      Subsisting - May 7, 2004

<PAGE>

                                                                         ANNEX I

      Name and Jurisdiction                        Certificate in Jurisdiction
        of Incorporation                                 of Incorporation
----------------------------------                 -----------------------------

Omnicom Finance Inc. (Delaware)                    Good Standing - May 6, 2004
Omnicom Capital Inc. (Connecticut)                 Legal Existence - May 7, 2004
Omnicom Group Inc. (New York)                      Subsisting - May 7, 2004

<PAGE>

                                                           EXHIBIT D-2 - FORM OF
                                                              OPINION OF ENGLISH
                                                                 COUNSEL FOR OFP

To each of the  Lenders  parties to the  Credit  Agreement
referred to below and to Citibank, N.A. as Agent

Our Ref

      May 2004

Dear Sirs

Omnicom Finance plc

1           Introduction

            We have acted as special  English lawyers for Omnicom Finance plc, a
            company  incorporated  and  existing  under the laws of England  and
            Wales ("OFP"), in connection with its authorisation of the execution
            and  delivery  of the  following  documents  (together,  the "Credit
            Documents"):

1.1         the 364-Day Credit Agreement dated as of May 2004 made among Omnicom
            Finance  Inc.,  Omnicom  Capital  Inc.  and OFP  (collectively,  the
            "Borrowers"),  Omnicom Group Inc. as Guarantor,  the Initial Lenders
            named  therein,  Citigroup  Global  Markets  Inc.  and  J.P.  Morgan
            Securities Inc., as lead arrangers and book managers,  ABN AMRO Bank
            N.V. as syndication  agent, J.P. Morgan Chase Bank and HSBC Bank USA
            as documentation agents, and Citibank,  N.A. as Administrative Agent
            for the Lenders (the "Credit Agreement"); and

1.2         the  Notes of OFP,  if any,  to be  delivered  pursuant  to  Section
            2.15(a) of the Credit Agreement.

            We have been asked by OFP to give you this  opinion for the purposes
            of Section  3.01(h)(iv)  of the Credit  Agreement  and we have taken
            instructions  in this regard  solely  from OFP.  You should be aware
            that our sole  involvement  with this transaction has been in giving
            this opinion and we have not been involved in the negotiation of the
            Credit Documents or in any other aspect of the transaction.

            Terms  defined in the Credit  Agreement  have the same meanings when
            used in this opinion.

<PAGE>

2           English law opinion

            This  opinion is limited  to English  law as applied by the  English
            courts as at the date of this  letter and is given on the basis that
            it will be governed by and construed in accordance with English law.
            We have made no investigation of the laws of any jurisdiction  other
            than those of England  and we do not express or imply any opinion as
            to the laws of any  jurisdiction  other  than those of  England.  We
            express no opinion as to matters of fact.

3           Documents examined

            For the  purpose of this  opinion  we have  examined  the  following
            documents:

3.1         a copy of the Credit  Agreement  (including  the  Exhibits  thereto)
            bearing a signature  on behalf of OFP which is stated  therein to be
            that of one of the persons identified in the certificate referred to
            at paragraph 3.4 below as a Director of OFP;

3.2         a copy of the certificate  given by OFP pursuant to Section 3.01 (h)
            (ii) and (iii) of the Credit Agreement and having attached  thereto,
            inter alia:

3.2.1       copies  of the  certificate  of  incorporation  and  Memorandum  and
            Articles of Association of OFP, each certified as true, complete and
            up-to-date as at the date hereof by a Director of OFP; and

3.3         a copy of the minutes of a meeting of the Board of  Directors of OFP
            held on [ ] May 2004, the resolutions set out in such minutes having
            been  certified as true,  complete and still in force as at the date
            hereof by a Director of OFP; and

3.4         a further certificate addressed to us from a director of OFP, a copy
            of which is attached hereto (the "Certificate").

4           Enquiries made

            For the purpose of giving this opinion, we have:

4.1         made an oral enquiry by telephone of the Central Registry of Winding
            Up Petitions in respect of OFP on [ ] May 2004; and

4.2         arranged  for a  review  of  the  copy  documents  relating  to  OFP
            available from the Companies House website on [ ] May 2004.

            Except for the documents listed in paragraph 3 above and the matters
            referred to in this  paragraph 4, we have not examined any contracts
            or other  documents  entered into by or  affecting  any party to the
            Credit  Documents nor any  corporate  records of OFP and we have not
            made any other enquiries or searches concerning OFP.

                                       2
<PAGE>

5           Assumptions

            In examining  the  documents  referred to in  paragraph 3 above,  in
            making the enquiries  referred to in paragraph 4 above and in giving
            this opinion we have assumed without further enquiry:

5.1         the  genuineness  of all  signatures  and  seals on  documents,  the
            conformity  to the  originals  of all  documents  supplied  to us as
            copies and the authenticity of the originals of such documents;

5.2         that the  information  disclosed  by our oral enquiry at the Central
            Registry of  Winding-up  Petitions  was then  accurate and that such
            enquiry  did not fail to disclose  any matters  which it should have
            disclosed  and which are  relevant  for the purposes of this opinion
            and since the time of such enquiry  there has been no  alteration in
            the status or  condition of OFP as  represented  by the Clerk at the
            Registry;

5.3         that the file of records  available for public  inspection  from the
            website of Companies House concerning OFP was complete, accurate and
            up-to-date  at the time of the review  referred  to in 4.2 above and
            that there has been no  alteration in the status or condition of OFP
            as represented thereby;

5.4         that OFP has not passed a voluntary  winding-up  resolution and that
            no petition  has been  presented to or order made by a court for the
            winding-up  or  dissolution   of  OFP  or  the   appointment  of  an
            administrator of OFP and that no receiver or administrator  has been
            appointed  in respect of OFP or any of its assets  which in any such
            case has not been revealed by the enquiries referred to in paragraph
            4 above;

5.5         (in relation to paragraph  6.7 only,  if relevant)  that each of the
            parties to the Credit Documents (other than OFP) is in existence and
            has full  corporate  capacity,  right,  power and authority to enter
            into and to exercise  its rights and perform its  obligations  under
            the Credit Documents;

5.6         (in relation to paragraph 6.7 only, if relevant) that under the laws
            of the  State  of New  York,  USA,  each  of  the  Credit  Documents
            constitutes  valid,  legally binding and enforceable  obligations of
            the parties thereto, including OFP;

5.7         that any copies  certified and all documents  dated earlier than the
            date of this  letter  on which  we have  expressed  reliance  remain
            accurate,  complete and in full force and effect at the date of this
            letter;

5.8         that  there  are  no  provisions  of  the  laws  of  any  applicable
            jurisdiction  outside  England  which  would be  contravened  by the
            execution and delivery of the Credit Documents and that,  insofar as
            any obligation  under the Credit Documents is to be performed in any
            jurisdiction outside England, its performance will not be illegal or
            contrary   to   public   policy  by  virtue  of  the  laws  of  that
            jurisdiction;

5.9         the accuracy of the statements contained in the Certificate; and

5.10        (as regards our opinions in  paragraphs  6.5 and 6.6 below) that all
            Advances made to OFP pursuant to the Credit  Agreement  will be made
            by persons who are (i) authorised persons

                                       3
<PAGE>

            (within the meaning of the Financial  Services and Markets Act 2000)
            who have  permission  to accept  deposits  or to effect or carry out
            contracts of insurance,  or (ii) acting in the course of carrying on
            a business  consisting wholly or to a significant  extent of lending
            money,  or  (iii)  otherwise  described  in  paragraph  6(1)  of the
            Financial Services and Markets Act 2000 (Regulated Activities) Order
            2001.

6           Opinion

            Based  upon  and  subject  to  the  foregoing,  and  subject  to the
            qualifications  and reservations  mentioned below and to any matters
            not disclosed to us, we are of the following opinion.

6.1         OFP  (i) is duly  incorporated  and  validly  existing  as a  public
            limited  company  under the laws of England and Wales;  (ii) has the
            power and  authority  to own its property and assets and to transact
            the  business in which it is engaged (as such  property,  assets and
            business  are  described  in  the  Certificate);  and  (iii)  is not
            required to be qualified as a "foreign  corporation"  in order to do
            business within England and Wales.

6.2         The  enquiry  and review  referred  to in  paragraph 4 above did not
            reveal any appointment  of, or resolution or petition to appoint,  a
            liquidator, administrator or administrative receiver of OFP, or that
            OFP is delinquent in filing its statutory annual  directors'  report
            and accounts,  or any  notification by the Registrar of Companies of
            intention to strike OFP's name off the Register of Companies.

6.3         OFP has the  corporate  power to  execute,  deliver  and perform the
            terms and provisions of each of the Credit  Documents to which it is
            expressed to be a party and to borrow under the Credit Agreement and
            has taken all necessary corporate action to authorise the execution,
            delivery and performance by it of each of such Credit  Documents and
            borrowing by it under the Credit Agreement.

6.4         OFP has validly  executed the Credit  Agreement.  When the Notes are
            signed by one of the  Directors  of OFP,  such  Notes will have been
            validly executed by OFP.

6.5         The  execution,  delivery  and  performance  by OFP  of  the  Credit
            Documents to which it is expressed to be a party,  the compliance by
            it with the terms and  provisions  thereof and the  borrowing  by it
            under the Credit  Agreement will not (i) contravene any provision of
            any law,  statute,  rule or  regulation of England and Wales or (ii)
            violate any provision of the  memorandum and articles of association
            of OFP as currently in force.

6.6         Under   English   law,  no  order,   consent,   approval,   licence,
            authorisation or validation of, or filing, recording or registration
            with, or exemption by, any  governmental or public body or authority
            of or in England  and Wales  (except  such as have been  obtained or
            made  prior to the date  hereof) is  required  to  authorise,  or is
            required  in  connection  with,  (i)  the  execution,  delivery  and
            performance by OFP of any Credit  Document to which OFP is expressed
            to be a party,  (ii) the borrowing by OFP under the Credit Agreement
            or (iii) the enforceability of any such Credit Document against OFP.

6.7         The English courts would  recognize and give effect to the choice of
            the laws of the State of New York,  USA, as the governing law of the
            Credit Documents.

                                       4
<PAGE>

6.8         The submission to the jurisdiction of the courts of the State of New
            York,  USA, by OFP in the Credit  Documents is within the  corporate
            powers of OFP and does not contravene any law of England.

6.9         A judgment  rendered  by a court in the United  States has no direct
            operation  in  England  but  may  be   enforceable  by  a  claim  or
            counterclaim  or be recognised by the English courts as a defence to
            a claim or as  conclusive  of an issue in an action.  For a judgment
            rendered  by a court in the  United  States  to be  enforced  by the
            English courts it would be necessary to prove to the satisfaction of
            the English court that:-

            (i)   the United States court had jurisdiction; and

            (ii)  the judgment is final and conclusive on the merits; and

            (iii) the  judgment  is for a debt or a fixed  sum (not  being a sum
                  payable in respect of taxes or other  charges of a like nature
                  or in respect of a fine or other penalty).

            For a defendant to such a claim to have a good defence to a claim or
            counterclaim  to enforce such a judgment,  it would be necessary for
            him to prove that:-

            (1)   the judgment was obtained by fraud; or

            (2)   the judgment is contrary to English public policy; or

            (3)   the judgment involves the enforcement of foreign public, penal
                  or revenue laws; or

            (4)   enforcement  would be contrary to section 5 of the  Protection
                  of Trading Interests Act 1980 (which prohibits the enforcement
                  of (a) judgments for multiple damages;  (b) judgments based on
                  a provision or rule of law specified by the Secretary of State
                  as being  concerned  with the  prohibition  or  regulation  of
                  anti-competitive   arrangements   or  with  the  promotion  of
                  competition;  and (c) a judgment on a claim for a contribution
                  in respect of damages awarded under (a) or (b)); or

            (5)   the judgment was obtained in a manner  opposed to the rules of
                  natural justice; or

            (6)   the judgment  involves a matter  previously  determined  by an
                  English court; or

            (7)   Recognition  of the judgment is denied under section 32 of the
                  Civil Judgment and  Jurisdiction  Act 1982. Under section 32 a
                  judgment in a United  States action shall not be recognised by
                  the English Courts if :

                                       5
<PAGE>

                        (a)   the United States action is brought in breach of a
                              valid   agreement   under  which  the  dispute  in
                              question  was  to be  settled  otherwise  than  by
                              proceedings in the United States; and

                        (b)   the United  States  action  was not  brought by or
                              with the agreement of, the person against whom the
                              judgment was given; and

                        (c)   that  person  did not  counterclaim  in the United
                              States   action   or   otherwise   submit  to  the
                              jurisdiction of the United States court;

                  Except  that  section  32 does not apply  where the  agreement
                  under  which the  dispute  in  question  was to be  settled is
                  illegal,  void,  unenforceable or incapable of being performed
                  for  reasons  not  attributable  to the  fault  of  the  party
                  bringing the action.

            The  question  of whether  enforcement  of a judgment is contrary to
            English public policy (see (2) above)  depends on the  circumstances
            of the  transaction  as a whole and the  subsequent  conduct  of the
            litigation in the United States and English  proceedings.  Solely on
            the  basis  of our  examination  of  the  documents  referred  to in
            paragraphs  3.1 to 3.3  (inclusive)  above,  we are not aware of any
            reason why enforcement of a judgment to pay a sum of money due under
            the Credit  Agreement  would be contrary to English public policy as
            at the date of this letter.

7           Qualifications and reservations

            Our  opinion  is  subject  to  the  following   qualifications   and
            reservations.

7.1         We express no opinion on the  effectiveness of any of the provisions
            of the Credit Documents,  since the Credit Documents are governed by
            New York law.

7.2         The obligations of OFP under the Credit Documents will be subject to
            any  laws  from  time to  time in  effect  relating  to  insolvency,
            administration,  bankruptcy, liquidation, reorganisation, moratorium
            or similar laws affecting creditors' rights generally and we express
            no opinion on such laws.

7.3         The enquiry at the Central Registry of Winding-up Petitions referred
            to in paragraph  4.1 above  relates only to a compulsory  winding-up
            and  is not  conclusively  capable  of  revealing  whether  or not a
            winding-up  petition in respect of a compulsory  winding-up has been
            presented since details of the petition may not have been entered on
            the  records  of  the  Central  Registry  of  Winding-up   Petitions
            immediately  or,  in the case of a  petition  presented  to a County
            Court,  may not have  been  notified  to the  Central  Registry  and
            entered on such  records at all, and the response to an enquiry only
            relates  to the  period  of six  months  prior to the date  when the
            enquiry was made.

7.4         The search of the Companies  House website  referred to in paragraph
            4.2 above is not  conclusively  capable of revealing  whether or not
            certain events have occurred, including

                                       6
<PAGE>

            the  commencement  of winding up or the making of an  administration
            order or the  appointment  of a receiver,  administrative  receiver,
            administrator  or liquidator,  as notice of these matters may not be
            filed with Companies House  immediately  and, when filed, may not be
            available from such website immediately.

7.5         The choice of a  particular  law to govern an  agreement or document
            would  not be  recognised  or upheld  by the  English  Courts if the
            choice of law was not bona fide and legal or if there  were  reasons
            for avoiding the choice of law on the grounds of public policy.  The
            choice of a particular law would not be upheld,  for example,  if it
            was made with the  intention of evading the law of the  jurisdiction
            with which the  contract  had its most  substantial  connection  and
            which, in the absence of the chosen law, would have  invalidated the
            contract  or been  inconsistent  with  it.  We  have  not  made  any
            investigation  into the  bona  fides of the  parties  to the  Credit
            Documents;  however  we are not aware of any  reason  for an English
            Court to find that the  choice of New York law to govern  the Credit
            Documents  is not bona  fide or not  legal,  nor are we aware of any
            English  public policy that would be violated by the  enforcement of
            the Credit Documents in accordance with their respective terms.

7.6         We have not considered the particular  circumstances of any party to
            the  Credit  Documents  (save  OFP to the  extent  expressly  stated
            herein) or the effect of such particular circumstances on the Credit
            Documents or the transactions contemplated thereby.

7.7         English  courts can give judgments in a currency other than sterling
            if,  subject  to the terms of the  contract,  that  currency  is the
            currency which most fairly expresses the plaintiff's loss.

8           Reliance

            This opinion may be relied on solely by the  addressees  and may not
            be regarded as  addressed  to or relied on by any other person (save
            the  addressees'  successors and assigns)  without our prior written
            consent.  It is strictly  limited to the matters  stated  herein and
            does  not  extend  to,  and  is  not  to be  read  as  extending  by
            implication  to,  any other  matter in  connection  with the  Credit
            Documents.

Yours faithfully

Macfarlanes

                                       7

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