Document:

THIRD AMENDMENT TO
            REVOLVING CREDIT AND TERM LOAN AGREEMENT

     THIS  THIRD  AMENDMENT  TO REVOLVING CREDIT  AND  TERM  LOAN
AGREEMENT  (this "Amendment") is entered into as  of  August  14,
2000, among GRAPHIC PACKAGING INTERNATIONAL CORPORATION (formerly
ACX  Technologies,  Inc.),  a Colorado corporation  ("Borrower"),
Lenders  under the Credit Agreement described below, and BANK  OF
AMERICA,  N.A., in its capacity as Administrative Agent  for  the
Lenders under the Credit Agreement ("Administrative Agent"),  and
Guarantors under the Credit Agreement (hereinafter defined).

        Reference is made to the Revolving Credit and  Term  Loan
Agreement,  dated as of August 2, 1999 (as amended to  date,  the
"Credit  Agreement"), among Borrower, Administrative  Agent,  the
Managing  Agents, and the Co-Agents thereunder, and  the  Lenders
party  thereto.   Unless  otherwise defined  in  this  Amendment,
capitalized terms used herein shall have the meaning set forth in
the  Credit Agreement; all Section and Schedule references herein
are  to  Sections and Schedules in the Credit Agreement; and  all
Paragraph references herein are to Paragraphs in this Amendment.

                            RECITALS

     A.    Borrower  has requested that Lenders  agree  to  amend
certain  provisions  of the Credit Agreement,  including  without
limitation,  extending the Termination Date with respect  to  the
One-Year  Term Facility, changing the amortization  of  the  Term
Loan Facility, changing certain financial covenants, changing the
application  of  certain  mandatory prepayments,  and  permitting
Borrower  to pay dividends on a series of preferred stock  to  be
issued by Borrower.

     B.     As  an  inducement  to  Lenders  to  agree  to   such
amendments,  Borrower  proposes to issue a  series  of  preferred
stock  and  to  apply  the  Net Cash Proceeds  from  such  Equity
Issuance as a prepayment of the One-Year Term Principal Debt (the
"Preferred Issuance").

     C.    In consideration of the Preferred Issuance and subject
to  the  terms  and  conditions of this  Amendment,  Lenders  are
willing to agree to such amendments.

     Accordingly, for adequate and sufficient consideration,  the
parties hereto agree, as follows:

Paragraph 1.   Amendments.

     1.1     Definitions.

     (a)  The definition of "Applicable Margin" is deleted in its
entirety and the following is substituted therefor:

          "Applicable Margin means:

          (a)  On any date of determination occurring on  or
          prior  to the First Amendment Date, the percentage
          per  annum  set forth in the table below  for  the
          appropriate  Type of Borrowing or commitment  fees
          (as the case may be):

                          Applicable Margin
          --------------------------------------------------
             Base Rate      Eurodollar Rate    Commitment
            Borrowings        Borrowings          Fees
            ----------      ---------------    ----------
               1.00%            2.500%            .500%

          (b)   On any date of determination occurring after
          the  First  Amendment Date but prior to the  Third
          Amendment Date, the percentage per annum set forth
          in  the  table below for the appropriate  Type  of
          Borrowing or commitment fees (as the case may be):

                         Applicable Margin
          --------------------------------------------------
             Base Rate      Eurodollar Rate    Commitment
            Borrowings        Borrowings          Fees
            ----------      ---------------    ----------
               1.50%             3.00%            .500%

          (c)  On any date of determination occurring on and
          after the Third Amendment Date with respect to the
          One-Year  Term Facility, the percentage per  annum
          set  forth  in the table below for the appropriate
          Type  of Borrowing or commitment fees (as the case
          may be):

                          Applicable Margin
          --------------------------------------------------
             Base Rate      Eurodollar Rate    Commitment
            Borrowings        Borrowings          Fees
            ----------      ---------------    ----------
               1.75%             3.25%            .500%

          (d)   Solely with respect to the Revolver Facility
          and   the   Term   Facility,  on   any   date   of
          determination  occurring on and  after  the  Third
          Amendment Date, the percentage per annum set forth
          in  the  table below for the Type of Borrowing  or
          commitment  fees  (as  the  case  may   be)   that
          corresponds to the Leverage Ratio at such date  of
          determination,   as  calculated   based   on   the
          quarterly Compliance Certificate of Borrower  most
          recently delivered pursuant to Section 9.3 hereof:

                                  Applicable Margin
                           ---------------------------------
                                       Eurodollar
                           Base Rate      Rate    Commitment
           Leverage Ratio  Borrowings  Borrowings    Fees
           --------------  ----------  ---------- ----------
              Less than       0.75%     2.25%      .375%
              4.00:1.0

           Greater than or    1.00%     2.50%      .500%
              equal to
              4.00:1.0,
            but less than
              4.50:1.0

           Greater than or    1.25%     2.75%      .500%
              equal to
              4.50:1.0,
            but less than
              5.00:1.0

           Greater than or    1.75%     3.25%      .500%
          equal to 5.00:1.0

          The  provisions  in  Item  (d)  preceding  are  further
          subject to, the following:

                    (i)  With respect to any adjustments  in
               the  Applicable Margin as a result of changes
               in  the Leverage Ratio, such adjustment shall
               be   effective  commencing  on   the   second
               Business  Day  after  the  delivery  of   the
               Financial   Statements   (and   the   related
               Compliance Certificate) pursuant to  Sections
               9.3(a)   and   9.3(b)  or  the  most   recent
               Permitted  Acquisition Compliance Certificate
               for  a Permitted Acquisition, as the case may
               be;

                    (ii) If Borrower fails to timely furnish
               to   Lenders  the  Financial  Statements  and
               related  Compliance Certificates required  to
               be  delivered pursuant to Sections 9.3(a) and
               9.3(b),  and  such  failure  shall   not   be
               remedied  within  five  days  after   written
               notice  thereof from Administrative Agent  or
               any Lender, then (unless the Default Rate has
               been effected by Required Lenders pursuant to
               Section  3.6) the Applicable Margin shall  be
               the  maximum  Applicable Margin specified  in
               the  Table above for the period from the date
               such   Financial   Statements   and   related
               Compliance Certificates were due to the  date
               such   Financial   Statements   and   related
               Compliance   Certificates  are  received   by
               Administrative Agent; and

                    (iii)      Notwithstanding any  contrary
               provision of this clause (d), if Borrower has
               not   received   at  least   $50,000,000   of
               aggregate gross proceeds from the issuance of
               Subordinated  Debt  on or before  August  15,
               2001 (and prepaid the Obligation pursuant  to
               Section  3.3(b)(i) with the Net Cash Proceeds
               thereof), then the Applicable Margin for Base
               Rate    Borrowings   and   Eurodollar    Rate
               Borrowings  under the Revolver  Facility  and
               the Term Loan Facility shall, on any date  of
               determination  occurring  after  August   15,
               2001,   be   increased  by  .75%   over   the
               applicable  percentage  set  forth   in   the
               immediately preceding table."

     (b)   Clause (c) of the definition of "Financial  Hedge"  is
amended  by deleting such clause in its entirety and substituting
the following therefor:

          "to  the extent such Financial Hedge is issued  by
          any  Lender  or  any  Affiliate  of  a  Lender  to
          Borrower  and  provides interest  rate  protection
          with  respect  to  all  or  any  portion  of   the
          Principal  Debt  (any such Financial  Hedge  being
          referred to herein as a "Lender Financial Hedge"),
          the  credit  exposure under such Lender  Financial
          Hedge  shall be secured after the Lien  Triggering
          Date  by  Liens  in  and  to  the  Collateral   as
          evidenced  by the Collateral Documents on  a  pari
          passu basis with the Liens of Administrative Agent
          (held for the benefit of Lenders), and such Lender
          or  Affiliate  issuing  a Lender  Financial  Hedge
          shall, by acceptance of the benefits of such Liens
          in  the  Collateral  agree to  the  provisions  of
          Section 12.11; and"

     (c)   The  definition of "Interest Expense"  is  amended  by
adding the following sentence at the end of such definition:

          "With  respect  to  the  calculation  of  Interest
          Expense  for the Companies, Interest Expense,  for
          any  period of calculation, shall also include the
          aggregate amount of Distributions actually paid by
          Borrower on the Preferred Stock."

     (d)   Clauses (b)(ii) and (b)(iii) of the definition of "Net
Cash Proceeds" are amended by adding a clause at the beginning of
each such provision which reads as follows:

          "to the extent permitted by Section 9.6,"

     (e)   The  definition of "Obligation" is amended by deleting
the  words  "Financial  Hedge"  in  the  last  line  thereof  and
substituting therefor the words "Lender Financial Hedge."

     (f)    Clause   (b)(i)  of  the  definition  of   "Permitted
Acquisition"  is  deleted in its entirety and  the  following  is
substituted therefor:

          "(i)  the Purchase Price for such Acquisition must
          be  less  than or equal to $50,000,000,  and  when
          aggregated  with the Purchase Price of each  other
          Permitted Acquisition consummated in such calendar
          year,   may   not  exceed  $100,000,000   in   the
          aggregate;"

     (g)   The  definition of "Required Lenders"  is  amended  by
deleting   all  references  to  "51%"  in  such  definition   and
substituting therefor "66-2/3%".

     (h)  The definition of "Subordinated Debt" is deleted in its
entirety and the following is substituted therefor:

          "Subordinated   Debt  means,  on   any   date   of
          determination, any Debt of the Companies which has
          been  subordinated  to  the  Obligation  on  terms
          (including,   without  limitation,   subordination
          terms)  acceptable  to  Administrative  Agent  and
          Reviewing Lenders."

     (i)   Clause (d) of the definition of "Termination Date"  is
deleted   in  its  entirety  and  the  following  is  substituted
therefor:

          "(d)  for  purposes of the One-Year Term Facility,
          the  earlier of (x) August 15, 2001, and  (y)  the
          effective   date   of   any   other   termination,
          cancellation, or acceleration of the One-Year Term
          Facility."

     (j)    The  following  definitions  of  "Average  Pro  Forma
Availability,"   "Cumulative  Term   Loan   Deferment,"   "Excess
Availability  Statement,"  "Lender  Financial  Hedge,"  "Material
Debt," "Preferred Stock," "Reviewing Lenders," "Third Amendment,"
and  "Third  Amendment Date" shall be alphabetically inserted  in
Section 1.1 to read, as follows:

          "Average  Pro Forma Availability means,  for  each
          fiscal quarter ending on and after March 31, 2001,
          the  amount  by which (i) the amount of  Debt,  if
          any,  that Borrower could incur under the Revolver
          Facility  on  the last day of such fiscal  quarter
          without  violating  the  financial  covenants   in
          Section  9.30  exceeds  (ii)  the  average   daily
          Revolver  Commitment Usage for the  30-day  period
          ending on the last day of such fiscal quarter."

          "Cumulative  Term Loan Deferment means,  for  each
          fiscal  quarter  ending after the Third  Amendment
          Date,  the aggregate amount of Term Loan Principal
          Debt  for  which  the  amortization  was  deferred
          pursuant  to  the  terms of the  Third  Amendment,
          which  amount shall be calculated on a  cumulative
          basis beginning with the Third Amendment Date  and
          shall  be the amount set forth in the table  below
          which   corresponds   to  the  applicable   fiscal
          quarter:

                                     Cumulative
                                   Amount of Term
                                   Loan Principal
                                        Debt
                 Quarter Ending      Deferments
               ------------------  --------------
                  September 30,      $6,250,000
                      2000

                   December 31,      $12,500,000
                      2000

                 March 31, 2001      $18,750,000

                  June 30, 2001      $25,000,000

                  September 30,      $31,250,000
                      2001

                December 31, 2001    $37,500,000

                 March 31, 2002      $46,250,000

                  June 30, 2002      $55,000,000

                  September 30,      $63,750,000
                      2002

                December 31, 2002    $72,500,000

                 March 31, 2003      $82,500,000

                  June 30, 2003      $92,500,000

                  September 30,     $102,500,000
                      2003

                December 31, 2003   $112,500,000

                 March 31, 2004     $125,000,000

                  June 30, 2004     $137,500,000
          "

          "Excess  Availability Statement means a  statement
          signed by a Responsible Officer, substantially  in
          the form of Exhibit E-4."

          "Lender Financial Hedge has the meaning set  forth
          in  clause  (c)  of the definition  of  "Financial
          Hedge."

          "Material   Debt   means,   on   any    date    of
          determination,  any  Debt of any  Company  or  the
          Companies,  individually  or  collectively  (other
          than  the  Obligation and the Subordinated  Debt),
          which  is in excess (individually or collectively)
          of  $10,000,000 if prior to the Qualifying Date or
          $20,000,000 on and after the Qualifying Date."

          "Preferred Stock means, the preferred stock issued
          by  Borrower immediately prior to or substantially
          concurrent with the Third Amendment, on terms  and
          conditions acceptable to Administrative Agent  and
          Reviewing  Lenders, together with  any  additional
          Preferred Stock issued in lieu of dividends on the
          Preferred Stock."

          "Reviewing  Lenders  means,  collectively,   Fleet
          National  Bank, Morgan Guaranty Trust  Company  of
          New  York,  and  Wachovia  Bank,  N.A.,  in  their
          capacity  as  Lenders;  provided  that,   if   any
          Reviewing   Lender  ceases  to  own  an   economic
          interest   in  the  Loan  Documents,  a  successor
          "Reviewing   Lender"   shall   be   appointed   by
          Administrative Agent."

          "Third   Amendment   means  that   certain   Third
          Amendment  to  Revolving  Credit  and  Term   Loan
          Agreement  dated  as  of August  14,  2000,  among
          Borrower,  Guarantors, Administrative  Agent,  and
          Lenders."

          "Third  Amendment Date means the date  upon  which
          the   Third   Amendment   becomes   effective   in
          accordance   with   the  terms   of   such   Third
          Amendment."

     1.2      Principal Payments.  Section 3.2(c) is  amended  by
substituting the following table for the table set forth  at  the
end of such Section:

               "
                                     Quarterly
                                      Principal
                 Quarter Ending     Installments
               -------------------  ----------------
                 March 31, 2000     $6,250,000/each
                and June 30, 2000

                  September 30,         none
                    2000, and
                December 31, 2000

                 March 31, 2001,    $6,250,000/each
                 June 30, 2001,
                  September 30,
                    2001, and
                December 31, 2001

                 March 31, 2002,    $8,750,000/each
                 June 30, 2002,
                  September 30,
                    2002, and
                December 31, 2002

                 March 31, 2003,    $10,000,000/each
                 June 30, 2003,
                  September 30,
                    2003, and
                December 31, 2003

                 March 31, 2004,    $12,500,000/each
                and June 30, 2004

                 August 2, 2004     $187,500,000
               "

     1.3     Optional Prepayments.  Section 3.3(a) is amended  by
deleting the phrase ", or the One-Year Term Principal Debt"  from
line  4 thereof and inserting the word "or" immediately prior  to
the phrase "the 180-Day Term Principal Debt."

     1.4     Mandatory Prepayments.

     (a)   The  lead-in  paragraph to  Section  3.3(b)  shall  be
deleted   in  its  entirety  and  the  following  is  substituted
therefor:

          "Until  such time as the Principal Debt  has  been
          repaid  in  full  and the Revolver  Commitment  is
          terminated  in full, the Principal Debt  shall  be
          permanently  prepaid  (or the Revolver  Commitment
          reduced  to  the extent required in  this  Section
          3.3(b)) in the amounts and upon the occurrence  of
          any of the following events:"

     (b)   The  paragraph immediately following Section 3.3(b)(v)
shall be deleted in its entirety and the following is substituted
therefor:

          "Each  commitment  reduction or  prepayment  under
          Section  3.3(b)  (other  than  prepayments   under
          Section  3.3(b)(i)  from  the  issuance   of   the
          Subordinated  Debt)  shall be applied  as  follows
          (unless   a  Default  or  Potential  Default   has
          occurred  and is continuing or would  arise  as  a
          result   thereof  (whereupon  the  provisions   of
          Section 3.12(b) shall apply)):
                    (i)  first, as a prepayment of  the
               Obligation  arising  under  the  180-Day
               Term Facility until paid in full;
                    (ii) second, as a prepayment of the
               Obligation  arising under  the  One-Year
               Term Facility until paid in full;
                    (iii) third, as a prepayment of the
               Obligation arising under the  Term  Loan
               Facility until paid in full; and
                    (iv)   fourth,  if  the  commitment
               reduction     or    prepayment     under
               Section 3.3(b)(ii), (iii), or (v) occurs
               prior  to  the  Qualifying  Date,  as  a
               reduction of the Revolver Commitment and
               if  required pursuant to Section 3.3(c),
               a  mandatory prepayment of the  Revolver
               Principal Debt.

          Each  commitment  reduction  or  prepayment  under
          Section  3.3(b)(i)  from  the  issuance   of   the
          Subordinated Debt shall be applied as follows:
                    (i)  first, as a prepayment of  the
               Obligation  arising  under  the  180-Day
               Term  Facility until paid in full;
                    (ii) second, as a prepayment of the
               Obligation  arising under  the  One-Year
               Term Facility until paid in full; and
                    (iii)   third,   to  the   Revolver
               Principal  Debt and Term Loan  Principal
               Debt,  as follows: (x) up to 50% of  any
               such payment (or portion thereof) to  be
               applied pursuant to this clause (iii) as
               a  prepayment of the Revolver  Principal
               Debt   (without  a  reduction   in   the
               Revolver Commitment, unless a Default or
               Potential Default then exists), but  not
               to  exceed an amount equal to the lesser
               of  (A) the Revolver Principal Debt then
               outstanding, or (B) the amount by  which
               the  cumulative prepayments pursuant  to
               this  clause (iii)(x) made on and  after
               the  Third Amendment Date (including any
               prepayment  to be made on  the  date  of
               determination) is less then $25,000,000,
               and   (y)  50%  of  any  prepayment  (or
               portion  thereof) to be applied pursuant
               to  this clause (iii) (together with any
               portion of the remaining prepayment  not
               applied  to the Revolver Principal  Debt
               pursuant to clause (iii)(x), if any), as
               a  prepayment of the Obligation  arising
               under the Term Loan Facility until  paid
               in full.

          All   mandatory  prepayments  of  the  Term   Loan
          Principal  Debt shall be applied Pro Rata  to  the
          Term  Loan  Principal Debt owed to each Term  Loan
          Lender  and  shall  be applied to  the  regularly-
          scheduled  Term Loan Principal Debt reductions  as
          set  forth in Section 3.2(c) in inverse  order  of
          maturities.   All  mandatory  prepayments  of  the
          180-Day  Term Principal Debt or the One-Year  Term
          Principal  Debt shall be applied Pro Rata  to  the
          180-Day  Term Principal Debt or the One-Year  Term
          Principal Debt (as the case may be) owed  to  each
          180-Day Term Lender or One-Year Term Lender."

     (c)  Section 3.3(d) is amended by deleting the reference  to
"Section  3.3(b)  and  (c)"  therein  and  substituting  "Section
3.3(b), (c), and (e)" therefor.

     (d)   A new Section 3.3(e) is added after Section 3.3(d)  as
follows:

          "(e)    Mandatory    Prepayments    from    Excess
          Availability.  No later than the tenth (10th)  day
          following the date on which Borrower delivers  the
          Excess Availability Statement required pursuant to
          Section  9.3(l) for each fiscal quarter ending  on
          and after March 31, 2001, Borrower shall prepay an
          aggregate principal amount equal to the lesser  of
          (i) the amount by which the sum of (x) Average Pro
          Forma  Availability  for such fiscal  quarter  and
          (y)  cash  or Cash Equivalents shown on Borrower's
          balance  sheet  as  of  such fiscal  quarter  end,
          exceeds $60,000,000 or (ii) the difference between
          (A)   the  amount  of  the  Cumulative  Term  Loan
          Deferment with respect to such fiscal quarter  and
          (B)  all amounts previously paid pursuant to  this
          Section  3.3(e) as a prepayment of the  Term  Loan
          Principal   Debt.   Each  prepayment  under   this
          Section 3.3(e) shall be applied ratably to the One-
          Year   Term  Principal  Debt  and  the  Term  Loan
          Principal  Debt  (as used herein, "ratably"  shall
          mean   the  proportion  that  the  One-Year   Term
          Principal Debt or the Term Loan Principal Debt, as
          the  case may be, bears to the sum of the One-Year
          Term  Principal  Debt and the Term Loan  Principal
          Debt).  All mandatory prepayments of the Term Loan
          Principal Debt under this Section 3.3(e) shall  be
          applied  Pro Rata to the Term Loan Principal  Debt
          owed to each Term Loan Lender and shall be applied
          to  the Term Loan Principal Debt reductions as set
          forth  in  Section  3.2(c)  in  inverse  order  of
          maturities.  All mandatory prepayments of the One-
          Year Term Principal Debt under this Section 3.3(e)
          shall  be  applied Pro Rata to the  One-Year  Term
          Principal Debt owed to each One-Year Term  Lender.
          If  no  One-Year Term Principal Debt or Term  Loan
          Principal  Debt remains outstanding, the mandatory
          prepayment  in this Section 3.3(e)  shall  not  be
          required."

     1.5     Application of Proceeds.  Section 3.12(b) is amended
by  deleting  clause (v) thereof in its entirety and substituting
the following therefor:

          "(v)  to the ratable payment of the Principal Debt
          and all indebtedness, liabilities, and obligations
          then  due and owing to any Lender or any Affiliate
          of  a  Lender  arising  from,  by  virtue  of,  or
          pursuant to any Lender Financial Hedge (as used in
          this  Section 3.12(b)(v), "ratable payment"  means
          for  any  Lender or Affiliate of a Lender (as  the
          case  may be), on any date of determination,  that
          portion  which  the Principal Debt  owed  to  such
          Lender   plus  the  amount  of  any  indebtedness,
          liabilities,  and  obligations arising  under  any
          Lender Financial Hedge then due and owing to  such
          Lender or such Affiliate of a Lender, bears to the
          sum  of the Principal Debt owed to all Lenders and
          the   aggregate  indebtedness,  liabilities,   and
          obligations  then due and owing under  all  Lender
          Financial Hedges);"

     1.6     Fees.  A new Section 5.5 shall be added as follows:

          "5.5 Additional Fee.  If Borrower has not received
          at  least  $50,000,000 of aggregate gross proceeds
          from  the issuance of the Subordinated Debt on  or
          before August 15, 2001 (and prepaid the Obligation
          pursuant  to Section 3.3(b)(i) with the  Net  Cash
          Proceeds   thereof),   Borrower   shall   pay   to
          Administrative Agent, for the ratable  account  of
          Revolver Lenders and the Term Loan Lenders, a  fee
          equal  to $750,000.  For purposes hereof "ratable"
          means (i) for any Revolver Lender, on any date  of
          determination, that proportion which the Committed
          Sum  under the Revolver Facility for such Revolver
          Lender  bears  to  the sum of all  Committed  Sums
          under  the  Revolver  Facility  for  all  Revolver
          Lenders  plus  the aggregate Term  Loan  Principal
          Debt  owed to all Term Loan Lenders and  (ii)  for
          any   Term   Loan   Lender,   on   any   date   of
          determination, that proportion which the Term Loan
          Principal Debt owed to such Term Loan Lender bears
          to  the  sum  of  all  Committed  Sums  under  the
          Revolver  Facility for all Revolver  Lenders  plus
          the aggregate Term Loan Principal Debt owed to all
          Term Loan Lenders."

     1.7      Purpose  of  Credit  Facilities.   Section  8.1  is
amended  by adding the following proviso to the end of the  first
sentence of such Section:

          "provided  that the Revolver Facility may  not  be
          used  to  prepay or repay the One-Year  Term  Loan
          except as permitted by Section 9.6."

     1.8      Reporting Requirements.  A new Section 9.3(l) shall
be added as follows:

          "    (l)  Promptly after preparation, and no later
          than  50  days after the last day of  each  fiscal
          quarter of Borrower arising on and after March 31,
          2001,  an  Excess Availability Statement  for  the
          fiscal quarter then ended."

     1.9      Payment of Obligation.  In order to permit  certain
interest   payments  on  the  Subordinated   Debt   and   certain
Distributions  on  the  Preferred  Stock  (and  the  use  of  the
Facilities therefor), to restrict the optional prepayment of  the
One-Year Term Principal Debt, and to restrict the use of proceeds
from  the  Revolver Facility to pay the One-Year  Term  Principal
Debt, Section 9.6 is amended as follows: (i)  relettering "clause
(iii)"  in  line 9 of Section 9.6 as "clause (c)"; (ii)  deleting
the  "or"  before  clause  (ii) of clause  (b)  of  Section  9.6;
(iii) by deleting the phrase "other than the Refinanced Debt  and
the  Britton  Debt,"  from  Section 9.6(b)(ii)  and  substituting
therefor the following phrase:

          "  other  than  the Refinanced Debt,  the  Britton
          Debt,  payments  of interest on  the  Subordinated
          Debt  to  the extent permitted by Section  9.6(c),
          and  Distributions on the Preferred Stock  to  the
          extent permitted by Section 9.21; or";

  (iv) adding the following provision as clause (iii) at the  end
of Section 9.6(b(ii)):

          "(iii)  make  any prepayment of the One-Year  Term
          Principal  Debt, other than mandatory  prepayments
          made pursuant to Section 3.3(b) or as required  on
          the Third Amendment Date,",

  (v) deleting the exception to the newly-lettered clause (c)  in
its entirety and substituting therefor the following:
          ",  except that any Company may from time to  time
          make  payments  of  interest  (excluding  payments
          arising from any acceleration of maturity thereof)
          on  the  Subordinated  Debt  to  the  extent  such
          payment   is   not   in   contravention   of   the
          subordination  provisions  of  such   Subordinated
          Debt."; and

(vi) adding a sentence at the end of such Section which reads  as
follows:

          "Borrower   may  not  use  Borrowings  under   the
          Revolver Facility to pay all or any portion of the
          One-Year Term Principal Debt other than on  August
          15, 2001, except  Borrowings may be made under the
          Revolver Facility to facilitate all or any portion
          of  the  payment  required on the Third  Amendment
          Date  pursuant to Paragraph 4(c)(ii) of the  Third
          Amendment  and  to facilitate any prepayments  (if
          any)  pursuant  to Section 3.3(e); provided  that,
          notwithstanding the foregoing, on August 15, 2001,
          proceeds of Borrowings under the Revolver Facility
          may  be  used to repay the One-Year Term Principal
          Debt  in whole or in part, so long as after giving
          effect   to   such  payment,  (x)   the   Revolver
          Commitment  then  in  effect  (less  the  Revolver
          Commitment  Usage  on such date of  determination)
          available to be borrowed without the occurrence of
          a   Default  or  Potential  Default  is  at  least
          $10,000,000  and (y) the One-Year  Principal  Debt
          has been paid in full."

     1.10     Debt and Guaranties.  Section 9.12(k) is amended by
deleting the words "Administrative Agent and its counsel" in  the
last   line   thereof   and  substituting  therefor   the   words
"Administrative Agent and Reviewing Lenders."

     1.11     Loans, Advances, and Investments.

          (a)    Section  9.20(d)  is  amended  by  deleting  the
reference  to  "5.00:1.00"  in line 1  thereof  and  substituting
therefor "3.50:1.00."

          (b)  Section 9.20(i) is deleted in its entirety and the
following is substituted therefor:

          (i)   So  long as no Default or Potential  Default
          then exists or arises, (i)  investments in Foreign
          Subsidiaries  (other than those  existing  on  the
          Closing  Date),  (ii)  Acquisitions  of,  by,   or
          resulting    in,    Foreign   Subsidiaries,    and
          (iii) investments in other Persons (other than the
          Loan Parties), which investments, individually and
          when  aggregated  with all other investments  made
          pursuant to this clause (i), do not exceed (A)  on
          any  date of determination when the Leverage Ratio
          is  greater than or equal to 3.50:1.00, $5,000,000
          (determined on a cumulative basis from  and  after
          the   Closing   Date);  (B)   on   any   date   of
          determination when the Leverage Ratio is less than
          3.50:1.00, $25,000,000 (determined on a cumulative
          basis from and after the Closing Date); or (C)  on
          any   date  of  determination  on  and  after  the
          Qualifying  Date,  $75,000,000  (determined  on  a
          cumulative  basis  from  and  after  the   Closing
          Date)."

     1.12      Distributions.  Section 9.21 shall be  amended  by
(i)  deleting the "and" before clause (d) thereof and (ii) adding
the following at the end of such section:

          ";  and  (e)   so long as no Default or  Potential
          Default  exists  or  arises as a  result  thereof,
          Distributions made by Borrower to the  holders  of
          the  Preferred Stock in amounts sufficient to  pay
          regularly-scheduled required cash dividends on the
          Preferred Stock."

     1.13     Amendments  to Documents.  Section  9.28  shall  be
amended  by  deleting  the  provision restricting  amendments  or
modifications  to the terms of Subordinated Debt  in  clause  (c)
thereof  (which  is  now  covered in new  Section  9.33)  in  its
entirety and substituting the following therefor:

          "(c)  amend or modify any material (determined  in
          the reasonable discretion of Administrative Agent)
          provision of, or waive any material (determined in
          the reasonable discretion of Administrative Agent)
          condition   under,  any  document  or   instrument
          evidencing  or  relating  to  any  Material  Debt,
          without   obtaining  prior  written   consent   of
          Administrative  Agent and Reviewing  Lenders  with
          respect thereto;"

     1.14     Financial Covenants.

     (a)   The  Leverage  Ratio covenant  set  forth  in  Section
9.30(a)  is amended by substituting the following table  for  the
table set forth at the end of such Section:

          "
                                       Maximum Leverage
                     Period                  Ratio
             -----------------------   ----------------
             September 30, 1999, to       5.00 to 1
             and including December
                    30, 1999

             December 31, 1999, to        4.75 to 1
                    (but not
                 including) the
              consummation date of
              the Ceramics Spinoff

            On the consummation date      6.00 to 1
            of the Ceramics Spinoff,
                to and including
                 June 29, 2000

               June 30, 2000, to          6.25 to 1
            and including September
                    29, 2000

             September 30, 2000, to       5.65 to 1
                 and including
               December 30, 2000

           December 31, 2000, to and      5.35 to 1
            including March 30, 2001

             March 31, 2001, to and       5.15 to 1
                   including
                 June 29, 2001

             June 30, 2001, to and        5.00 to 1
                   including
               September 29, 2001

             September 30, 2001, to       4.75 to 1
             and including December
                    30, 2001

           December 31, 2001, to and      4.50 to 1
            including  June 29, 2002

             June 30, 2002, to and        4.25 to 1
            including June 29, 2003

             June 30, 2003, to and        4.00 to 1
            including  September 29,
                      2003

             September 30, 2003, to       3.75 to 1
            and including  June 29,
                      2004

               June 30, 2004, and         3.50 to 1
                   thereafter
          "

     (b)   The  Interest Coverage covenant set forth  in  Section
9.30(c)  is amended by substituting the following table  for  the
table set forth at the end of such Section:

          "
                                       Minimum Interest
            Fiscal Quarter(s) Ending    Coverage Ratio
            ------------------------   ----------------
               December 31, 1999          2.00 to 1

                 March 31, 2000           1.60 to 1

                 June 30, 2000            1.70 to 1

               September 30, 2000         1.60 to 1

             December 31, 2000 and        1.55 to 1
                 March 31, 2001

                 June 30, 2001,           1.60 to 1
            September 30, 2001, and
               December 31, 2001

            March 31, 2002, June 30,      1.70 to 1
           2002, September 30, 2002,
             and December 31, 2002

            March 31, 2003, June 30,      1.80 to 1
           2003, September 30, 2003,
             and December 31, 2003

               March 31, 2004 and         1.90 to 1
                   thereafter
          "

     (c)   The  Total  Debt to Consolidated Total  Capitalization
financial  covenant set forth in Section 9.30(d)  is  amended  by
(i) deleting the proviso after the table set forth at the end  of
such  Section and (ii) substituting the following table  for  the
table set forth at the end of such Section:

          "
                                        Maximum Total
                                            Debt/
                                         Consolidated
                                            Total
                                        Capitalization
                     Period		    Ratio
            -----------------------     --------------

             September 30, 1999, to          75%
             and including December
                    30, 1999

           December 31, 1999, to and         72%
            including June 29, 2000

             June 30, 2000, to and          70.0%
            including  September 29,
                      2000

            September 30, 2000, and         60.0%
                   thereafter
          "

     (d)   The Capital Expenditures financial covenant set  forth
in Section 9.30(e) is amended in its entirety to read as follows:

          "Capital  Expenditures.  The Capital  Expenditures
          of  the  Companies for any period of determination
          shall  not  exceed the amount shown in  the  table
          below   which  corresponds  to  such   period   of
          determination:

                                       Permitted Capital
                     Period              Expenditures
             ----------------------    -----------------

               Calendar year 2000        $50,000,000

             Calendar year 2001 and    $40,000,000 each
               Calendar year 2002

             Calendar year 2003 and    $50,000,000 each
               Calendar year 2004

          ;    provided   that,   notwithstanding   the
          foregoing, for each of calendar year 2001 and
          2002, the amount of Capital Expenditures  may
          be  increased from $40,000,000 to $50,000,000
          per  year,  if  the  Leverage  Ratio  of  the
          Companies  for  the fiscal  year  immediately
          preceding  such calendar year  is  less  than
          4.00 to 1."

     1.15     Preferred Stock.  A new Section 9.32 shall be added
as follows:

          "9.32      Preferred  Stock.  Borrower  shall  not
          (a)  issue the Preferred Stock except on terms and
          conditions acceptable to Administrative Agent  and
          Reviewing   Lenders;  (b)  amend  or  modify   any
          material  (determined in the reasonable discretion
          of  Administrative Agent) provision of,  or  waive
          any   material   (determined  in  the   reasonable
          discretion  of  Administrative  Agent)   condition
          under,  any  document or instrument evidencing  or
          relating   to  the  Preferred  Stock,   including,
          without limitation, the Certificate of Designation
          for  the Preferred Stock, without obtaining  prior
          written   consent  of  Administrative  Agent   and
          Reviewing   Lenders  with  respect   thereto;   or
          (c) make any optional redemptions, prepayments, or
          other payments on the Preferred Stock, other  than
          (x) regularly-scheduled required cash dividends on
          the  Preferred  Stock, or (y) regularly  scheduled
          dividends  on the Preferred Stock, paid solely  in
          the  form of additional shares of Preferred  Stock
          having  an aggregate liquidation preference  equal
          to the amount of such dividends."

     1.16      Subordinated Debt.  A new Section  9.33  shall  be
added as follows:

          "9.33      Subordinated Debt.  Borrower shall  use
          its   best   efforts  to  place  not   less   than
          $50,000,000 of Subordinated Debt, so long  as  the
          terms  of  such Subordinated Debt are economically
          reasonable in the reasonable judgment of  Borrower
          and  comply  with  the requirements  of  the  Loan
          Documents.   Borrower  shall  not  (a)  issue  any
          Subordinated  Debt except on terms and  conditions
          acceptable  to Administrative Agent and  Reviewing
          Lenders;   (b)   amend  or  modify  any   material
          (determined   in  the  reasonable  discretion   of
          Administrative Agent) provision of, or  waive  any
          material  (determined in the reasonable discretion
          of  Administrative  Agent)  condition  under,  any
          document  or instrument evidencing or relating  to
          the  Subordinated  Debt, without  obtaining  prior
          written   consent  of  Administrative  Agent   and
          Reviewing   Lenders  with  respect   thereto;   or
          (c) make any optional redemptions, prepayments, or
          other  payments  on the Subordinated  Debt,  other
          than as permitted by the terms of Section 9.6."

     1.17     Defaults.

     (a)   Section  10.8  is  deleted in  its  entirety  and  the
following is substituted therefor:

          "Section  10.8   Default  Under  Other  Debt   and
          Agreements. (a) The occurrence of any "default" or
          "event   of   default"  or  other   breach   which
          "default,"  "event of default,"  or  other  breach
          remains  uncured  (after lapse of  any  applicable
          cure  periods) on any date of determination  under
          or with respect to the Preferred Stock (other than
          a  "default" or "event of default" the remedy  for
          which  is limited to the exercise of voting rights
          which  does not result in a Default under  Section
          10.7),  any  Subordinated Debt, or  any  agreement
          creating or evidencing any Material Debt; (b)  the
          trustee  with  respect to, or any holder  of,  the
          Preferred  Stock, any Subordinated  Debt,  or  any
          Material Debt shall effectively declare all or any
          portion of that Debt or obligation thereunder  due
          and  payable prior to the stated maturity thereof;
          (c) any obligations under the Preferred Stock, any
          Subordinated  Debt, or any Material  Debt,  become
          due before its stated maturity by acceleration  of
          the  maturity  thereof, or (d) any default  exists
          under  any Material Agreement, which default under
          such   Material  Agreement  could  reasonably   be
          expected to be a Material Adverse Event."

     (b)  A new Section 10.13 shall be added as follows:

          "Section   10.13   Payment   of   Certain    Other
          Agreements.    (a)   The   payment   directly   or
          indirectly  (including,  without  limitation,  any
          payment   in   respect  of   any   sinking   fund,
          defeasance, redemption, or payment of any dividend
          or   distribution)  by  any  Loan  Party  or   any
          Subsidiary   thereof  of   any   amount   of   any
          Subordinated  Debt  or the Preferred  Stock  in  a
          manner  or at a time during which such payment  is
          not   permitted  under  the  terms  of  the   Loan
          Documents, the Certificate of Designation for  the
          Preferred  Stock,  or  under  any  instrument   or
          document  evidencing or creating the  Subordinated
          Debt,    including,   without   limitation,    any
          subordination  provisions  set  forth  therein  or
          (b)  if  an event shall occur, including,  without
          limitation,  a "Change in Control" as  defined  in
          any documents evidencing or creating the Preferred
          Stock or any agreement evidencing or creating  the
          Subordinated Debt, and (i) such event  results  in
          the  ability of the trustee or the holders of  any
          such Debt or obligation to request or require  (or
          any Loan Party shall automatically be so required)
          to  redeem  or repurchase such Debt or obligation,
          or  (ii)  any Loan Party shall initiate notice  to
          holders of the Subordinated Debt or the holders of
          the   Preferred  Stock,  in  connection   with   a
          redemption of any Debt or obligation arising under
          such agreements or instruments."

     1.18      Agents.  Section 12.12 is amended by deleting  the
last  sentence  in  Section 12.12 and substituting  therefor  the
following:

          "Without  limiting  the  foregoing,  each  of  the
          parties  to this Agreement acknowledge  and  agree
          that  (i)  none  of the Lenders so  identified  as
          "Managing  Agent" or "Co-Agent" shall have  or  be
          deemed to have any fiduciary relationship with any
          Lender,  (ii)  the rights of approval  granted  to
          Administrative Agent and Reviewing  Parties  under
          this Agreement (including, without limitation, the
          approval  rights  contained in  Sections  9.12(k),
          9.28,  9.32  and  9.33  and  the  definitions   of
          Subordinated Debt and Preferred Stock  in  Section
          1.1)  shall  be exercised by Administrative  Agent
          and each Reviewing Lender in its sole and absolute
          discretion,  (iii) no Reviewing Party  shall  have
          any   duty,  obligation,  or  liability   to   the
          Administrative  Agent, any Lender,  or  any  other
          Agent or Co-Agent, as a result of the exercise of,
          or  the failure to exercise, any right of approval
          granted   to  such  Reviewing  Party  under   this
          Agreement."

     1.19      Third  Party Beneficiaries.  A new  Section  13.15
shall be added as follows:

          "13.15     Third Party Beneficiaries.   Each  Loan
          Party  and  each  other party  to  this  Agreement
          intends  that the Loan Documents shall not benefit
          or  create any Right or cause of action in  or  on
          behalf of any Person, including without limitation
          the   holders  of  the  Preferred  Stock  or   the
          Subordinated  Debt, other than the   Loan  Parties
          and  each other party to this Agreement and  their
          permitted successors and assigns."

     1.20      Exhibit  E-1.  Annex C to the Form of  Certificate
set  forth on Exhibit E-1 to the Credit Agreement, is deleted  in
its  entirety  and  the  document  labeled  Revised  Annex  C  to
Compliance  Certificate  attached  hereto  shall  be  substituted
therefor.

     1.21      Exhibit E-2.  Exhibit E-2 to the Credit  Agreement
is  deleted in its entirety and the document labeled Exhibit E-2,
Revised  Form  of  Permitted Acquisition  Compliance  Certificate
attached hereto shall be substituted therefor.

     1.22      Exhibit E-3.  Exhibit E-3 to the Credit  Agreement
is  deleted in its entirety and the document labeled Exhibit E-3,
Revised  Form  of Permitted Acquisition Loan Closing  Certificate
attached hereto shall be substituted therefor.

     1.23      Exhibit  E-4.   The  Form of  Excess  Availability
Certificate  attached to this Amendment shall  be  added  to  the
Credit Agreement as Exhibit E-4.

Paragraph 2    Waiver.  Notwithstanding the provisions of Section
3.1(c),  so  long as Borrower makes the payments of the  One-Year
Term  Loan  contemplated in Paragraph 4 hereof to  Administrative
Agent at its principal office in Dallas, Texas in funds which are
or will be available for immediate use by Administrative Agent by
2:00 p.m. Dallas, Texas time on the Third Amendment Date, without
setoff, deduction, or counterclaim, such payment shall be  deemed
made on the Third Amendment Date.

Paragraph  3    Amendment Fees.  On the Effective Date,  Borrower
shall pay (a) to Administrative Agent (for the ratable benefit of
the  Revolver  Lenders), an amendment fee in an amount  equal  to
0.10% of the aggregate Committed Sums under the Revolver Facility
as  of  the Effective Date; (b) to Administrative Agent (for  the
ratable benefit of the Term Loan Lenders), an amendment fee in an
amount  equal to 0.10% of the aggregate Term Loan Principal  Debt
as  of  the Effective Date; and (c) to Administrative Agent  (for
the  ratable benefit of the One-Year Term Lenders), an  amendment
fee  in  an  amount equal to 0.10% of the One-Year Term Principal
Debt  as  of  the  Effective  Date after  giving  effect  to  any
prepayments  of the One-Year Term Principal Debt to  be  made  on
such date.  The failure of Borrower to comply with the provisions
of  this Paragraph 3 shall constitute a payment Default entitling
Lenders  to  exercise  their respective  Rights  under  the  Loan
Documents.

Paragraph  4     Effective  Date.  Notwithstanding  any  contrary
provision,  this Amendment is not effective until the  date  (the
"Effective  Date")  upon  which  Administrative  Agent   receives
(a)   counterparts  of  this  Amendment  executed  by   Borrower,
Guarantors,   and   Lenders;   (b)   evidence   satisfactory   to
Administrative  Agent  that Borrower has received  a  minimum  of
$100,000,000 in gross proceeds from the issuance of the Preferred
Stock;  (c)  Borrower has paid to Administrative Agent  (for  the
ratable benefit of the One-Year Term Lenders) a prepayment of the
One-Year  Term Principal Debt in an amount equal to  the  sum  of
(i)  100%  of   the  Net Cash Proceeds from the issuance  of  the
Preferred Stock as required by Section 3.3(b)(iv), plus  (ii)  an
amount  equal  to  the  difference between $100,000,000  and  the
amount  paid  pursuant to clause (c)(i) hereof; (d)  delivery  to
Administrative Agent of a fully executed depository  bank  letter
or similar control agreement with respect to the material deposit
accounts of the Companies maintained with Wachovia National Bank;
(e)  delivery  to  Administrative Agent  of  the  Certificate  of
Designation  for  the  Preferred Stock and  all  other  documents
related  to  the  Preferred  Stock,  which  documents  shall   be
satisfactory  to  Administrative  Agent  and  Reviewing  Lenders;
(f)  payment of the amendment fees required to be paid to Lenders
and  Administrative  Agent  on the  Effective  Date  pursuant  to
Paragraph  3  hereof;  and  (g)  Borrower  pays  all  unpaid  and
reasonable  costs,  fees, and expenses of Administrative  Agent's
counsel incurred in connection with the Loan Documents, including
without  limitation, any costs, fees, and expenses in  connection
with  the  negotiation, preparation, delivery, and  execution  of
this Amendment and any related documents.

Paragraph  5    Acknowledgment and Ratification.  As  a  material
inducement to Administrative Agent and the Lenders to execute and
deliver  this Amendment, Borrower and each Guarantor (a)  consent
to the agreements in this Amendment and (b) agree and acknowledge
that  the  execution, delivery, and performance of this Amendment
shall  in  no way release, diminish, impair, reduce, or otherwise
affect the respective obligations of Borrower or Guarantors under
their respective Collateral Documents, which Collateral Documents
shall remain in full force and effect, and all Liens, guaranties,
and Rights thereunder are hereby ratified and confirmed.

Paragraph  6     Representations.  As a  material  inducement  to
Lenders   to   execute  and  deliver  this  Amendment,   Borrower
represents and warrants to Lenders (with the knowledge and intent
that  Lenders  are  relying upon the same in entering  into  this
Amendment) that as of the Effective Date of this Amendment and as
of   the   date   of  execution  of  this  Amendment,   (a)   all
representations and warranties in the Loan Documents are true and
correct  in  all  material respects as though made  on  the  date
hereof,  except  to the extent that (i) any of them  speak  to  a
different  specific date or (ii) the facts on which any  of  them
were  based  have  been changed by transactions  contemplated  or
permitted  by the Credit Agreement, and (b) except as  waived  by
this Amendment, no Potential Default or Default exists.

Paragraph 7    Expenses.  Borrower shall pay all costs, fees, and
expenses  paid  or incurred by Administrative Agent  incident  to
this  Amendment,  including, without limitation,  the  reasonable
fees and expenses of Administrative Agent's counsel in connection
with  the  negotiation, preparation, delivery, and  execution  of
this Amendment and any related documents.

Paragraph  8     Miscellaneous.   This  Amendment  is   a   "Loan
Document" referred to in the Credit Agreement, and the provisions
relating  to Loan Documents in Section 13 of the Credit Agreement
are  incorporated in this Amendment by reference.  Unless  stated
otherwise  (a) the singular number includes the plural  and  vice
versa and words of any gender include each other gender, in  each
case,  as  appropriate,  (b) headings and  captions  may  not  be
construed in interpreting provisions, (c) this Amendment must  be
construed, and its performance enforced, under New York law,  (d)
if  any  part  of this Amendment is for any reason  found  to  be
unenforceable,  all  other  portions of  it  nevertheless  remain
enforceable, and (e) this Amendment may be executed in any number
of  counterparts  with the same effect as if all signatories  had
signed  the same document, and all of those counterparts must  be
construed together to constitute the same document.

Paragraph  9    Entire Agreement.  This Amendment represents  the
final  agreement between the parties about the subject matter  of
this  Amendment and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements  of  the  parties.
There are no unwritten oral agreements between the parties.

Paragraph  10    Parties.  This Amendment  binds  and  inures  to
Borrower,  Guarantors, Administrative Agent, Lenders,  and  their
respective successors and assigns.

     The  parties hereto have executed this Amendment in multiple
counterparts to be effective as of the Effective Date.

             Remainder of Page Intentionally Blank.
                   Signature Pages to Follow.

     Signature Page to that certain Third  Amendment to Revolving
Credit and Term  Loan  Agreement dated  as  of  August  14, 2000,
among  Graphic Packaging  International Corporation, as Borrower,
the One-Year Term  Lenders, and  the Guarantors  under the Credit
Ageement.

                              GRAPHIC PACKAGING INTERNATIONAL,
                              CORPORATION (formerly ACX
                              Technologies, Inc.), as Borrower

                              By:
                                   Name:
                                   Title:

                              CHRONOPOL, INC., as a Guarantor
                              GAC ALUMINUM CORPORATION, as a
                              Guarantor
                              GOLDEN TECHNOLOGIES COMPANY, INC.,
                              as a Guarantor
                              GP HOLDINGS, INC., as a Guarantor
                              GRAPHIC PACKAGING CORPORATION, as a
                              Guarantor
                              GRAPHIC PACKAGING HOLDINGS INC., as
                              a Guarantor
                              GTC NUT COMPANY, as a Guarantor
                              LAUENER ENGINEERING LIMITED, as a
                              Guarantor
                              UNIVERSAL PACKAGING CORPORATION ,
                              as a Guarantor

                              By:
                                   Name:
                                   Title:

                              GEI BROKERS, INC., as a Guarantor
                              GOLDEN EQUITIES, INC., as a
                              Guarantor

                              By:
                                   Name:
                                   Title:

                              BANK OF AMERICA, N.A., as
                              Administrative Agent and as a
                              Lender

                              By:
                                   Name:
                                   Title:

                                                                ,
                              as a Lender

                              By:
                                   Name:
                                   Title:

                                                                ,
                              as a Lender

                              By:
                                   Name:
                                   Title:

                              By:
                                   Name:
                                   Title:

                                                                ,
                              as a Lender

                              By:

                                   By:
                                        Name:
                                        Title:<PAGE>   1

                          AGREEMENT AND PLAN OF MERGER

         THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is made as of this
___ day of _________, 2000 by and between HealthGrades.com, Inc., a corporation
incorporated under the laws of the State of Delaware (the "Company"), HG.com,
Inc., a corporation incorporated under the laws of the State of Delaware and a
subsidiary of the Company ("HG"), Physician Report Cards, Inc., a corporation
incorporated under the laws of the State of Delaware and a wholly-owned
subsidiary of the Company ("Newco"), and Peter A. Fatianow, an individual, and
Sarah P. Loughran, an individual (together, the "Individuals").

                                   BACKGROUND

         The Individuals and the Company own all of the issued and outstanding
common stock of HG, par value $0.001 (the "HG Shares").

         The Board of Directors of the Company, the Board of Directors of HG and
the Individual desire to consummate a merger whereby HG will be merged with and
into Newco and the Individuals will each receive shares of the Company's common
stock, par value $0.001 (the "Company Shares"), in exchange for the HG Shares
owned by such individuals.

                                   WITNESSETH

         NOW, THEREFORE, the parties hereto, intending to be legally bound
hereby, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and in consideration of the mutual
representations, warranties, agreements and covenants contained herein, hereby
agree as follows:

                             ARTICLE 1 - THE MERGER

         SECTION 1.1 The Merger Subsidiary. HG is to be merged with and into
Newco, a wholly-owned subsidiary of the Company (the "Merger") as set forth in
Section 1.2 hereof. Newco was formed to facilitate the Merger. The Company will
(i) cause Newco to execute and deliver this Agreement pursuant to Section 251 of
Delaware Law, and (ii) execute a formal written consent under Section 228 of
Delaware Law as the sole stockholder of Newco, approving the execution, delivery
and performance of this Agreement by Newco.

         SECTION 1.2 The Merger. At the Effective Time (as defined in Section
1.3 hereof) and subject to and upon the terms and conditions of this Agreement
and Delaware Law, the Merger shall be consummated, whereby HG shall be merged
with and into Newco, the separate corporate existence of HG shall cease, and
Newco shall continue as the surviving corporation which shall be a wholly owned
subsidiary of the Company. As the surviving corporation after the Merger, Newco
is herein sometimes referred to as the "Surviving Corporation" and HG as the
non-surviving corporation after the Merger is herein sometimes referred to as
the "Merged Corporation." The Company, the Individuals and Newco are herein
referred to collectively as the "Parties" and each individually as a "Party".

                                       1
<PAGE>   2

         SECTION 1.3 Effective Time. As promptly as practicable after the date
hereof, the Parties shall cause the Merger to be consummated by filing a
Certificate of Merger with the Secretary of State of the Sate of Delaware with
respect to the Merger, in such form as required by, and executed in accordance
with, the relevant provisions of Delaware Law (the time of such filing being the
"Effective Time").

         SECTION 1.4 Effect of the Merger. At the Effective Time, the effect of
the Merger shall be as provided in the applicable provisions of Delaware Law.
Without limiting the generality of the foregoing, and subject thereto, at the
Effective Time all the property, rights, privileges, powers and franchises of HG
shall continue with, or vest in, as the case may be, Newco as the Surviving
Corporation. As of the Effective Time, the Surviving Corporation shall be a
direct wholly owned subsidiary of the Company.

         SECTION 1.5 Subsequent Actions. If, at any time after the Effective
Time, the Surviving Corporation shall consider or be advised that any deeds,
bills of sale, assignments, assurances or any other actions or things are
necessary or desirable to continue in, vest, perfect or confirm of record or
otherwise in the Surviving Corporation its right, title or interest in, to or
under any of the rights, properties, privileges, franchises or assets of the
Merged Corporation acquired or to be acquired by the Surviving Corporation as a
result of, or in connection with, the Merger or otherwise to carry out this
Agreement, the officers and directors of the Surviving Corporation shall be
directed and authorized to execute and deliver, in the name and on behalf of the
Merged Corporation, all such deeds, bills of sale, assignments and assurances
and to take and do, in the name and on behalf of such corporation or otherwise,
all such other actions and things as may be necessary or desirable to vest,
perfect or confirm any and all right, title and interest in, to and under such
rights, properties, privileges, franchises or assets in the Surviving
Corporation or otherwise to carry out this Agreement.

         SECTION 1.6 Certificate of Incorporation: Bylaws; Directors and
Officers of Surviving Corporation. At the Effective Time:

                  (1) the Certificate of Incorporation of Newco as in effect
         immediately prior to the Effective Time shall be the Certificate of
         Incorporation of the Surviving Corporation, until thereafter amended as
         provided by law and such Certificate of Incorporation;

                  (2) the Bylaws of Newco immediately prior to the Effective
         Time shall be the Bylaws of the Surviving Corporation, until thereafter
         amended as provided by law and the Certificate of Incorporation and the
         Bylaws of such Surviving Corporation; and

                  (3) the directors of Newco immediately prior to the Effective
         Time shall become the directors of the Surviving Corporation,
         comprising the entire Board of Directors of the Surviving Corporation,
         from and after the Effective Time, in each case until their successors
         are elected and qualified or until their resignation or removal

                                       2
<PAGE>   3

                  (4) the officers of Newco immediately prior to the Effective
         Time shall continue to serve in their respect offices of the Surviving
         Corporation from and after the Effective Time, in each case until their
         successors are appointed or until their resignation or removal. If, at
         the Effective Time, a vacancy shall exist in any office of the
         Surviving Corporation, such vacancy may thereafter be filled in the
         manner provided by law and the Bylaws of the Surviving Corporation.

                  ARTICLE 2 - EFFECT ON STOCK OF THE SURVIVING
                     CORPORATION AND THE MERGED CORPORATION

         SECTION 2.1 Conversion of Securities. The manner and basis of
converting the shares of common stock of the Surviving Corporation and the
Merged Corporation at the Effective Time, by virtue of the Merger and without
any action on the part of any of the Parties or the holder of any of such
securities, shall be as hereinafter set forth in this Article II.

         SECTION 2.2 Conversion of HG Shares.

                  (5) Subject to Section 2.2(b) and except as set forth in
         Section 2.6 with respect to Dissenting Shares (hereinafter defined),
         each HG Share issued and outstanding immediately before the Effective
         Time (excluding those canceled pursuant to Section 2.3) and all rights
         in respect thereof, shall at the Effective Time, without any action on
         the part of any holder thereof, forthwith cease to exist and be
         converted into and become exchangeable for 0.93827 Company Shares.

                  (6) As of the Effective Time, all shares of HG Shares
         converted pursuant to Section 2.2(a) shall no longer be outstanding and
         shall automatically be canceled and retired and shall cease to exist,
         and each holder of a certificate (each, an "Old Certificate")
         representing any such shares of HG Shares shall cease to have any
         rights with respect thereto, except the right to receive Company
         Shares, in accordance with Section 2.2(a) and any cash in lieu of
         fractional Company Shares to be paid in consideration therefor upon
         surrender of such certificate in accordance with Section 2.4, without
         interest.

         SECTION 2.3 Cancellation of Treasury Shares and Company-Owned Shares.
At the Effective Time, each HG Share held in the treasury of HG or owned by the
Company immediately prior to the Effective Time shall be canceled and retied and
no shares of stock or other securities of HG or the Surviving Corporation shall
be issuable, and no payment or other consideration shall be made, with respect
thereto.

         SECTION 2.4 Transfer Books. The stock transfer books of HG shall be
closed at the Effective Time and no transfer of any HG Shares will thereafter be
recorded on an of such stock transfer books. IN the event of a transfer of
ownership of HG Shares that is not registered in the stock transfer records of
HG Shares at the Effective Time, if the certificate for such HG shares as the
case may be, is surrendered as provided herein, accompanied by all documents
required to evidence and effect such transfer and by evidence of payment of any
applicable stock transfer

                                       3
<PAGE>   4

tax, then, (i) in the case of transferred HG Shares, a certificate or
certificates representing the number of whole shares of the Company into which
such HG Shares shall have been converted shall be issued to the transferee
together with a cash payment in lieu of fractional shares, if any, in accordance
with Section 2.6 hereof.

         SECTION 2.5 No Fractional Share Certificates.

                  (7) No scrip or fractional share certificate for Company
         Shares will be issued in certificate or book entry form upon the
         surrender for exchange of Old Certificates, and an outstanding
         fractional share interest will not entitle the owner thereof to vote,
         to receive dividends or to any rights of a stockholder of the Company
         or of the Surviving Corporation with respect to such fractional share
         interest.

                  (8) As soon as practicable after the determination of the
         amounts of cash, if any, to be paid to holders of HG Shares with
         respect to any fractional share interests, the Company shall make
         available such amounts, net of any required withholding, to such
         holders of HG Shares, subject to and in accordance with the terms
         hereof. The amount of cash to be so delivered shall be computed based
         upon the closing price per share of the Company Shares on the Nasdaq
         Small Cap Market on the Effective Date.

         SECTION 2.6 Dissenting Shares. Notwithstanding Section 2.2, HG Shares
issued and outstanding immediately prior to the Effective Time and which are
held by a holder who has not voted such shares in favor of the Merger by
executing this Agreement, who shall have delivered a written demand for
appraisal of such shares in the manner provided by the Delaware Law and who, as
of the Effective Time, shall not have effectively withdrawn or lost such right
to appraisal ("Dissenting Shares") shall not be converted pursuant to Section
2.2. The holders thereof shall be entitled only to such rights as are granted by
Section 262 of the Delaware Law. Each holder of Dissenting Shares who becomes
entitled to payment for such Dissenting Shares pursuant to Section 262 of the
Delaware Law shall receive payment therefor from the Surviving Corporation in
accordance with the Delaware Law; provided however that (i) if any such holder
of Dissenting Shares shall have failed to establish his entitlement to appraisal
rights as provided in Section 262 of the Delaware Law, (ii) if any holder of
Dissenting Shares shall have effectively withdrawn his demand for appraisal of
such Dissenting Shares or lost his right to appraisal and payment for his or her
Dissenting Shares under Section 262 of the Delaware Law or (iii) if neither any
holder of Dissenting Shares nor the Surviving Corporation shall have filed a
petition demanding a determination of the value of all Dissenting Shares within
the time provided in Section 262 of the Delaware Law, such holder shall forfeit
the right to appraisal of such Dissenting Shares and each such Dissenting Share
shall be treated as if it had been converted, as of the Effective Time, pursuant
to Section 2.2, as appropriate. HG shall give the Company prompt notice of any
demands received by HG for appraisal of HG Shares and the Company shall have the
right to participate in all negotiations and proceedings with respect to such
demands.

                                       4
<PAGE>   5

                   ARTICLE 3 - REPRESENTATIONS AND WARRANTIES

         SECTION 3.1 Representations and Warranties of the Individuals. Each
Individual hereby represents and warrants to the Company that:

                  (9) he or she is an "accredited investor" within the meaning
         of Rule 501 under the Securities Act of 1933, as amended ("the
         Securities Act");

                  (10) he or she has sufficient knowledge and experience in
         investing in companies similar to the Company in terms of the Company's
         stage of development so as to be able to evaluate the risks and merits
         of his or her investment in the Company and he or she is able
         financially to bear the risks thereof;

                  (11) he or she has had an opportunity to discuss the Company's
         business, management and financial affairs with the Company's
         management;

                  (12) the Company Shares being purchased by him or her are
         being acquired for his or her own account for the purpose of investment
         and not with a view to or for sale in connection with any distribution
         thereof;

                  (13) he or she understands that (i) the Company shares have
         not been registered under the Securities Act by reason of their
         issuance in a transaction exempt from the registration requirements of
         the Securities Act pursuant to Section 4(2) thereof and Rule 506
         promulgated under the Securities Act, (ii) the Company Shares must be
         held indefinitely unless a subsequent disposition thereof is registered
         under the Securities Act or is exempt from such registration, (iii) the
         Company Shares will bear a legend to such effect and (iv) the Company
         will make a notation on its transfer books to such effect; and

                  (14) if he or she sells any Company Shares pursuant to Rule
         144 promulgated under the Securities Act, he or she will take all
         necessary steps in order to perfect the exemption from registration
         provided thereby.

                           ARTICLE 4 - ACKNOWLEDGMENTS

         SECTION 4.1 Legend. Each Individual hereby agrees that certificates
representing the company Shares issued to him or her pursuant hereto may bear
the following legend:

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933. SUCH SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATE IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE SECURITIES ACT OF
1933, UNLESS, IN THE OPINION (WHICH SHALL BE IN FORM AND SUBSTANCE SATISFACTORY
TO THE CORPORATION) OF COUNSEL SATISFACTORY TO THE CORPORATION, SUCH
REGISTRATION IS NOT REQUIRED.

                                       5
<PAGE>   6

         SECTION 4.2 Approval. Each Party that is a stockholder of HG hereby
agrees and confirms that such Party's execution of this Agreement shall operate
as such Party's written consent to this Agreement in such Party's capacity as a
stockholder of HG pursuant to Delaware General Corporation Law Section 228(b)
and shall have the same force and effect as resolutions duly adopted at a
meeting of stockholders of HG, duly called and held in accordance with law and
the by-laws of HG. The Consent delivered pursuant to this Section 4.2 shall be
effective as of the date first written above upon the execution and delivery of
a copy of this Agreement (whether in the form of an original copy or a telecopy)
by the minimum number of votes that would be necessary to authorize or take the
actions contemplated hereby at a meeting at which all the stockholders having a
right to vote thereon were present and voted by the stockholders of record of HG
entitled to express consent or dissent in writing, and it shall not be necessary
for the signatures of the stockholders to appear on the same copy hereof.

                         ARTICLE 5 - GENERAL PROVISIONS

         SECTION 5.1 Entire Agreement. This Agreement sets forth the entire
understanding of the parties with respect to the transactions contemplated
hereby and supersedes all prior agreements or understandings amount the parties
regarding those matters.

         SECTION 5.2 Amendment/Modification. This Agreement may be amended,
modified or supplemented only by a written instrument duly executed by each of
the parties. If any provision of this Agreement shall for any reason be held to
be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision hereof, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the respective heirs, legal
representatives, successors and permitted assigns of the parties. Nothing in
this Agreement shall confer any rights upon any entity other than the parties
hereto and their respective heirs, legal representatives, successors and
permitted assigns. No party shall assign this Agreement or any right, benefit or
obligation hereunder without the consent of each other party. Any term or
provision of this Agreement may be waived at any time by the party entitled to
the benefit thereof by a written instrument duly executed by such party.

         SECTION 5.3 Further Action. Each party shall execute and deliver any
and all documents and take any and all other actions that may be deemed
reasonably necessary by their respective counsel to complete the transactions
contemplated hereby.

         SECTION 5.4 Interpretation. Unless the context of this Agreement
clearly requires otherwise, (a) references to the plural include the singular,
the singular the plural, the part the whole, (b) references to any gender
include all genders, (c) "including" has the inclusive meaning frequently
identified with the phrase "but not limited to" and (d) references to
"hereunder" or "herein" relate to this Agreement. The section and other headings
contained in this Agreement are for reference purposes only and shall not
control or affect the construction of this Agreement or the interpretation
thereof in any respect. Any reference to a party's being satisfied with any
particular item or to a party's determination of a particular item presumes that

                                       6
<PAGE>   7

such standard will not be achieved unless such party shall be satisfied or shall
have made such determination in its sole or complete discretion.

         SECTION 5.5 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be binding as of the date first written above,
and all of which shall constitute one and the same instrument. Each such copy
shall be deemed an original, and it shall not be necessary in making proof of
this Agreement to produce or account for more than one such counterpart.

         SECTION 5.6 Governing Law. This Agreement shall be construed and
interpreted in accordance with the laws of the State of Delaware without regard
to its provisions concerning choice of laws or choice of forum.

         IN WITNESS WHEREOF, the parties have executed this agreement as of the
date first above written.

                                        HEALTHGRADES.COM, INC.

                                        By: /s/ Patrick M. Jaeckle
                                           -------------------------------
                                        Patrick M. Jaeckle
                                        President

                                        HG.COM, INC.

                                        By: /s/ Kerry R. Hicks
                                           -------------------------------
                                        Kerry R. Hicks
                                        Chief Executive Officer

                                       7
<PAGE>   8

                                        PHYSICIAN REPORT CARDS, INC.

                                        By: /s/ Patrick M. Jaeckle
                                           -------------------------------
                                        Patrick M. Jaeckle
                                        President

                                        By: /s/ Peter A. Fatianow
                                           -------------------------------
                                        Peter A. Fatianow

                                        By: /s/ Sarah P. Loughran
                                           -------------------------------
                                        Sarah P. Loughran

                                       8

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