Document:

Exhibit 10.1

                           PURCHASE AND SALE AGREEMENT

                                     BETWEEN

                                MULTEX.COM, INC.

                                       AND

               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

                                       AND

                             ML IBK POSITIONS, INC.

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

                                  JUNE 20, 2002

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

<PAGE>

                                                 TABLE OF CONTENTS

                                                                            Page

1.   Definitions ............................................................. 2

2.   Documents to be delivered by Multex.com ................................. 3

3.   Documents to be delivered by the Merrill Entities ....................... 4

4.   [Intentionally Omitted.] ................................................ 4

5.   Representations, Warranties and Certain Agreements of Multex.com ........ 4
            5.1   Organization ............................................... 4
            5.2   Non-contravention; No consent .............................. 4

6.   Representations, Warranties and Certain Agreements of MLPFS ............. 5
            6.1   Organization ............................................... 5
            6.2   Non-contravention; No consent .............................. 5

7.   Representations, Warranties and Certain Agreements of ML IBK ............ 6
            7.1   Organization ............................................... 6
            7.2   Non-contravention; No consent .............................. 6

8.   Covenants/Further Assurances ............................................ 6

9.   Notices ................................................................. 7

10.  Miscellaneous ........................................................... 8
            10.1  Survival of Agreements ..................................... 8
            10.2  Expenses ................................................... 8
            10.3  Captions ................................................... 8
            10.4  No Waiver .................................................. 8
            10.5  Counterparts ............................................... 8
            10.6  Assignment ................................................. 8
            10.7  Governing Law .............................................. 9

Exhibit A   Form of Amended and Restated Warrant
Exhibit B   Form of Addendum Amendment

                                       -i-
<PAGE>

                           PURCHASE AND SALE AGREEMENT

            This Purchase and Sale Agreement (this "AGREEMENT"), dated as of
June 20, 2002, among Multex.com, Inc., a Delaware corporation ("MULTEX.COM"),
Merrill Lynch, Pierce, Fenner & Smith Incorporated, a Delaware corporation
("MLPFS") and ML IBK Positions, Inc., a Delaware corporation ("ML IBK")
(Merrill, MLPFS and ML IBK are collectively referred to herein as the "MERRILL
ENTITIES").

            WHEREAS, Merrill Lynch & Co., Inc., a Delaware corporation
("MERRILL"), entered into a Purchase Agreement, dated as of December 21, 1999,
between Multex.com and Merrill whereby, among other things, Merrill purchased
1,200,000 shares of Multex.com's common stock (the "ORIGINAL SHARES"),
subsequently transferred by Merrill to its indirect subsidiary ML IBK;

            WHEREAS, Multex.com and the Merrill Entities have agreed to modify
their strategic alliance on the terms and, subject to the conditions, of this
Agreement such that Multex.com will reduce the license fees that MLPFS is
currently obligated to pay Multex.com under the Master Agreement (defined below)
by an aggregate amount equal to $4,500,000 in exchange for the Merrill Entities
(i) transferring 530,000 shares of Multex.com's common stock (the "TRANSFERRED
SHARES"), $0.01 par value per share (the "STOCK"), to Multex.com and (ii)
forfeiting certain rights under a warrant issued by Multex.com to Merrill on
January 31, 2000 (the "ORIGINAL WARRANT"), subsequently transferred by Merrill
to its wholly-owned subsidiary MLPFS;

            WHEREAS, in exchange for MLPFS forfeiting certain of its rights
under the Original Warrant, Multex.com shall deliver to MLPFS an amended and
restated warrant, fully vested and exercisable as of the date hereof, entitling
MLPFS to purchase 69,240 shares of Multex.com Stock, all as more specifically
described in the Amended and Restated Warrant attached as Exhibit A hereto (the
"AMENDED AND RESTATED WARRANT");

            WHEREAS, Multex.com and MLPFS desire to amend Addendum No. 3 to
Master Agreement for Electronic Distribution Services (the "MASTER AGREEMENT"),
dated as of November 13, 1998, between Multex Systems, Inc. and MLPFS, as
amended, all as more specifically described in Amendment No. 2 to Addendum No. 3
to Master Agreement attached as Exhibit B hereto (the "ADDENDUM AMENDMENT"); and

            WHEREAS, Multex Systems, Inc. filed with the Delaware Secretary of
State, on February 9, 1999, a Certificate of Amendment to its Certificate of
Incorporation whereby it changed its name to Multex.com, Inc.

<PAGE>

            NOW THEREFORE, in consideration of the mutual covenants contained
herein, it is agreed as follows:

1.    DEFINITIONS.

            The terms defined in this Section 1 shall, for the purpose of this
Agreement, have the following meanings (terms defined in the singular or plural
include the plural or the singular, as the case may be, unless the context
otherwise requires):

            "ADDENDUM AMENDMENT" shall have the meaning set forth in the fourth
recital of this Agreement.

            "AFFILIATE" shall mean, with respect to any Person (a) any director,
officer or stockholder holding 5% or more of the capital stock (on a fully
diluted basis) of such Person, (b) any spouse, parent, sibling or descendant of
such Person (or a spouse, parent, sibling or descendant of any director or
officer of such Person) and (c) any other Person that, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person. The term "control" includes, without
limitation, the possession, directly or indirectly, of the power to direct the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

            "AGREEMENT" shall have the meaning set forth in the preamble of this
Agreement.

            "AMENDED AND RESTATED WARRANT" shall have the meaning set forth in
the third recital of this Agreement.

            "GOVERNMENTAL BODY" shall mean any federal, state, county, local or
foreign governmental or regulatory agency, court, authority, commission, board
or other similar body.

            "LAW" shall mean any law, statute, rule, regulation, ordinance and
other pronouncement having the effect of law of the United States, any foreign
country or any domestic or foreign state, county, city or other political
subdivision or of any Governmental Body.

            "MASTER AGREEMENT" shall have the meaning set forth in the fourth
recital of this Agreement.

            "MERRILL" shall have the meaning set forth in the first recital of
this Agreement.

            "MERRILL ENTITIES" shall have the meaning set forth in the preamble
of this Agreement.

            "ML IBK" shall have the meaning set forth in the preamble of this
Agreement.

                                       2
<PAGE>

            "MLPFS" shall have the meaning set forth in the preamble of this
Agreement.

            "MULTEX.COM" shall have the meaning set forth in the preamble of
this Agreement.

            "ORDER" shall mean any writ, judgment, decree, injunction or similar
order of any Governmental Body, in each case whether preliminary or final.

            "ORIGINAL SHARES" shall have the meaning set forth in the first
recital of this Agreement.

            "ORIGINAL WARRANT" shall have the meaning set forth in the second
recital of this Agreement.

            "PERSON" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, incorporated organization, association,
corporation, limited liability company, institution, public benefit corporation,
entity or government (whether federal, state, county, city, municipal or
otherwise, including, without limitation, any instrumentality, division, agency,
body or department thereof).

            "STOCK" shall have the meaning set forth in the second recital of
this Agreement.

            "TRANSACTION DOCUMENTS" shall mean this Agreement, the Amended and
Restated Warrant and the Addendum Amendment.

            "TRANSFERRED SHARES" shall have the meaning set forth in the second
recital of this Agreement.

2.    DOCUMENTS TO BE DELIVERED BY MULTEX.COM.

            Simultaneous with the execution by the parties of this Agreement:

            (a)   Multex.com  shall  execute and  deliver to MLPFS the  Addendum
            Amendment;

            (b)   Multex.com  shall execute and deliver to MLPFS the Amended and
            Restated Warrant;

            (c) Multex.com shall deliver to ML IBK a stock certificate in the
            name of ML IBK representing 670,000 shares of Multex.com's Stock;
            and

            (d) Multex.com shall deliver to Merrill or its designee, via wire
            transfer of immediately available funds to the bank account
            designated by Merrill, payment of 50% of the costs incurred by the
            Merrill Entities to have legal counsel prepare drafts of the
            Transaction Documents, subject to a maximum payment by Multex.com of
            $5,000.

                                       3
<PAGE>

3.    DOCUMENTS TO BE DELIVERED BY THE MERRILL ENTITIES.

            Simultaneous with the execution by the parties of this Agreement:

            (a)   MLPFS shall execute and deliver the Addendum Amendment;

            (b)   MLPFS shall deliver to Multex.com the Original Warrant; and

            (c)   ML IBK shall deliver to Multex.com a stock certificate
            representing 1,200,000 shares of Multex.com's common stock, duly
            endorsed for transfer to Multex.com or accompanied by a duly
            executed stock power, effecting the transfer of the Transferred
            Shares to Multex.com.

4.    [INTENTIONALLY OMITTED.]

5.    REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF MULTEX.COM.

            Multex.com represents and warrants to, and agrees with, the Merrill
Entities that:

      5.1 Organization. Multex.com is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization. Multex.com has all requisite power, authority and capacity, and
has taken all action necessary, to execute and deliver this Agreement and the
other Transaction Documents, to consummate the transactions contemplated hereby
and thereby and to perform its obligations hereunder and thereunder. No other
proceedings on the part of Multex.com are necessary to authorize this Agreement
and the other Transaction Documents and the transactions contemplated hereby and
thereby. This Agreement and the other Transaction Documents have been duly
authorized, validly executed and delivered by Multex.com and constitute the
legal, valid and binding obligations of Multex.com, enforceable against
Multex.com in accordance with their terms, except as such enforcement may be
limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer or other laws (whether statutory, regulatory or decisional), now or
hereafter in effect, relating to or affecting the rights of creditors generally
or by equitable principles (regardless of whether considered in a proceeding at
law or in equity).

      5.2   Non-contravention; No consent. The execution and delivery of this
Agreement and the other Transaction Documents and the performance by Multex.com
of its obligations hereunder and thereunder will not conflict with or result in
the breach of any term or provision of, (i) the Certificate of Incorporation or
By-laws of Multex.com, (ii) any material contract to which Multex.com is a party
or by which any of its assets are in any way bound, or (iii) any Law or Order by
which Multex.com or any of its assets is in any way bound or obligated. No
consent, approval or authorization of, or declaration,

                                       4
<PAGE>

filing or registration with, any Governmental Body is required for the
execution, delivery and performance by Multex.com of this Agreement and the
other Transaction Documents and no consent, approval or authorization of any
third party is required for the execution, delivery and performance of this
Agreement and the other Transaction Documents.

6.    REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF MLPFS.

            MLPFS represents and warrants to, and agrees with, Multex.com that:

      6.1   ORGANIZATION. MLPFS is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization. MLPFS has all requisite power, authority and capacity, and has
taken all action necessary, to execute and deliver this Agreement and the
Addendum Amendment, to consummate the transactions contemplated hereby and
thereby and to perform its obligations hereunder and thereunder. No other
proceedings on the part of MLPFS are necessary to authorize this Agreement and
the Addendum Amendment and the transactions contemplated hereby and thereby.
This Agreement and the Addendum Amendment have been duly authorized, validly
executed and delivered by MLPFS and constitute the legal, valid and binding
obligations of MLPFS, enforceable against MLPFS in accordance with their terms,
except as such enforcement may be limited by any bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer or other laws (whether
statutory, regulatory or decisional), now or hereafter in effect, relating to or
affecting the rights of creditors generally or by equitable principles
(regardless of whether considered in a proceeding at law or in equity).

      6.2   NON-CONTRAVENTION; NO CONSENT. The execution and delivery of this
Agreement and the other Transaction Documents and the performance by MLPFS of
its obligations hereunder and thereunder will not conflict with or result in the
breach of any term or provision of, (i) the Certificate of Incorporation or
By-laws of MLPFS, (ii) any material contract to which MLPFS is a party or by
which any of its assets are in any way bound, or (iii) any Law or Order by which
MLPFS or any of its assets is in any way bound or obligated. No consent,
approval or authorization of, or declaration, filing or registration with, any
Governmental Body is required for the execution, delivery and performance by
MLPFS of this Agreement and the other Transaction Documents and no consent,
approval or authorization of any third party is required for the execution,
delivery and performance of this Agreement and the other Transaction Documents.

7.    REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF ML IBK.

            ML IBK represents and warrants to, and agrees with, Multex.com that:

      7.1   ORGANIZATION. ML IBK is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization. ML IBK has all requisite power, authority and capacity, and has
taken all action necessary, to execute and deliver this Agreement and the
delivery of the Transferred Shares, to consummate the transactions contemplated
hereby and thereby and to

                                       5
<PAGE>

perform its obligations hereunder and thereunder. No other proceedings on the
part of ML IBK are necessary to authorize this Agreement and the delivery of the
Transferred Shares and the transactions contemplated hereby and thereby. This
Agreement and the delivery of the Transferred Shares have been duly authorized,
validly executed and delivered by ML IBK and constitute the legal, valid and
binding obligations of ML IBK, enforceable against ML IBK in accordance with
their terms, except as such enforcement may be limited by any bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or other laws
(whether statutory, regulatory or decisional), now or hereafter in effect,
relating to or affecting the rights of creditors generally or by equitable
principles (regardless of whether considered in a proceeding at law or in
equity). All of the Transferred Shares are owned, directly or indirectly,
beneficially by ML IBK.

      7.2   NON-CONTRAVENTION; NO CONSENT. The execution and delivery of this
Agreement and the other Transaction Documents and the performance by ML IBK of
its obligations hereunder and thereunder will not conflict with or result in the
breach of any term or provision of, (i) the Certificate of Incorporation or
By-laws of ML IBK, (ii) any material contract to which ML IBK is a party or by
which any of its assets are in any way bound, or (iii) any Law or Order by which
ML IBK or any of its assets is in any way bound or obligated. No consent,
approval or authorization of, or declaration, filing or registration with, any
Governmental Body is required for the execution, delivery and performance by ML
IBK of this Agreement and the other Transaction Documents and no consent,
approval or authorization of any third party is required for the execution,
delivery and performance of this Agreement and the other Transaction Documents.

8.    COVENANTS/FURTHER ASSURANCES.

            (a)   Each of the parties hereto agrees that it shall take all such
further acts as may be reasonably required in connection with the consummation
of the transactions contemplated hereby. Each of Multex.com and the Merrill
Entities agree, to cooperate with and to deliver to the other party after the
date hereof, for no additional consideration and at no additional cost to the
requesting party, such further assignments, certificates, instruments, records,
or other documents, assurances or things, as may be reasonably necessary to give
full effect to this Agreement and to allow each party to fully enjoy and
exercise the rights accorded and acquired by it under this Agreement.

            (b)   Each of the parties hereto agrees that it will not issue any
press release or otherwise make any public statements with respect to the
Transaction Documents or the transactions contemplated thereby without the prior
written consent of the other party unless such party is compelled by Law or any
Order applicable to such party to make such disclosure.

9.    NOTICES.

            All notices, consents, agreements and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given
when (a) delivered by hand, (b) sent by telex

                                       6
<PAGE>

or telecopier (with receipt confirmed), provided that a copy is mailed by
certified mail, return receipt requested, or (c) received by the addressee, if
sent by Express Mail, Federal Express or other express delivery service (receipt
requested), in each case to the appropriate addresses, telex numbers and
telecopier numbers and telecopier numbers set forth below (or to such other
addresses, telex numbers and telecopier numbers as a party may designate as to
itself by notice to the other parties):

            (a)   If to Multex.com:

                  100 William Street, 7th Floor
                  New York, New York  10038
                  Telecopier No.:  (212) 607-2591
                  Attention: Chief Financial Officer

                  with a copy to its General Counsel at the same address;

                  with an additional copy to:

                  Willkie Farr & Gallagher
                  787 Seventh Avenue
                  Telecopier No.:  (212) 728-8111
                  Attention: Steven A. Seidman, Esq.

            (b)   If to the Merrill Entities:

                  222 Broadway, 17th Floor
                  New York, New York  10038
                  Telecopier No.:  (212) 670-4517
                  Attention:  Jonathan Santelli, Esq.
                  with a copy to:

                  Kaye Scholer LLP
                  425 Park Avenue
                  New York, New York  10022
                  Telecopier No.:  (212) 836-8689
                  Attention:  Stephen C. Koval, Esq.
                              William Tanenbaum, Esq.

                                       7
<PAGE>

10.   MISCELLANEOUS.

      10.1  SURVIVAL OF AGREEMENTS. Each party agrees that only those agreements
specifically referenced herein are being altered in any respect and all other
agreements between Multex.com and Merrill or any Affiliate of each are in full
force and effect and remain subject to their terms.

      10.2  EXPENSES. Other than as specified in Section 2(d), each party shall
bear its own expenses incident to the preparation, negotiation, execution and
delivery of this Agreement and the Transaction Documents and the performance of
its obligations hereunder and thereunder.

      10.3  CAPTIONS. The captions in this Agreement are for convenience of
reference only and shall not be given any effect in the interpretation of this
Agreement.

      10.4  NO WAIVER. The failure of a party to insist upon strict adherence to
any term of this Agreement on any occasion shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. Any waiver must be in writing.

      10.5  COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be considered an original, but all of which
together shall constitute the same instrument.

      10.6  ASSIGNMENT. This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto without the prior written consent of the other parties hereto, nor is
this Agreement intended to confer upon any person except the parties hereto any
rights or remedies hereunder, except that MLPFS or ML IBK, as the case may be,
may assign this Agreement and any of the rights, interests or obligations
hereunder to an Affiliate without the prior written consent of Multex.com. The
foregoing notwithstanding, ML IBK shall not assign the 670,000 shares of
Multex.com common stock referred to in this Agreement to an Affiliate that is a
direct competitor of Multex.com.

      10.7  GOVERNING LAW. This Agreement and (unless otherwise provided) all
amendments hereof and waivers and consents hereunder shall be governed by the
internal laws of the State of New York, without regard to the conflicts of law
principles thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on the date first above written.

                                          MULTEX.COM, INC.

                                          By:_________________________
                                          Name:
                                          Title:

                                          MERRILL LYNCH, PIERCE, FENNER &
                                          SMITH INCORPORATED

                                          By:_________________________
                                          Name:
                                          Title:

                                          ML IBK POSITIONS, INC.

                                          By:_________________________
                                          Name:
                                          Title:

                                       9
<PAGE>

                                    EXHIBIT A

                      FORM OF AMENDED AND RESTATED WARRANT

                                      A-1
<PAGE>

                              AMENDED AND RESTATED

                                     WARRANT

                           To Purchase Common Stock of

                                Multex.com, Inc.

<PAGE>

                                TABLE OF CONTENTS
                                                                            PAGE

1.   DEFINITIONS ............................................................  1
     ADDITIONAL SHARES OF COMMON STOCK ......................................  1
     AFFILIATE ..............................................................  1
     APPRAISED VALUE ........................................................  2
     BOARD OF DIRECTORS .....................................................  2
     BUSINESS DAY ...........................................................  2
     COMMISSION .............................................................  2
     COMMON STOCK ...........................................................  2
     CONVERTIBLE SECURITIES .................................................  2
     CURRENT MARKET PRICE ...................................................  2
     CURRENT WARRANT PRICE ..................................................  3
     EXCHANGE ACT ...........................................................  3
     EXERCISE PERIOD ........................................................  3
     EXPIRATION DATE ........................................................  3
     FULLY DILUTED OUTSTANDING ..............................................  3
     GAAP ...................................................................  4
     HOLDER .................................................................  4
     MAJORITY HOLDERS .......................................................  4
     NASD ...................................................................  4
     NASDAQ .................................................................  4
     ORIGINAL WARRANT .......................................................  4
     OTHER PROPERTY .........................................................  4
     OUTSTANDING ............................................................  4
     PERMITTED ISSUANCES ....................................................  4
     PERSON .................................................................  4
     PURCHASE AGREEMENT .....................................................  4
     RESTRICTED COMMON STOCK ................................................  5
     SECURITIES ACT .........................................................  5
     TRANSFER ...............................................................  5
     TRANSFER NOTICE ........................................................  5
     WARRANT ................................................................  5
     WARRANT PRICE ..........................................................  5
     WARRANT STOCK ..........................................................  5

2.   EXERCISE OF WARRANT ...................................................   5
          2.1  Manner of Exercise ..........................................   5

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<PAGE>

          2.2  Payment of Taxes ............................................   6
          2.3  Fractional Shares ...........................................   7
          2.4  Continued Validity ..........................................   7
          2.5  Investment Representations ..................................   7

3.   TRANSFER, DIVISION AND COMBINATION ....................................   7
          3.1  Transfer ....................................................   7
          3.2  Division and Combination ....................................   8
          3.3  Expenses ....................................................   8
          3.4  Maintenance of Books ........................................   8

4.   ADJUSTMENTS ...........................................................   8
          4.1   Stock Dividends, Subdivisions and Combinations..............   8
          4.2   Certain Other Distributions ................................   9
          4.3   Issuance of Additional Shares of Common Stock...............   9
          4.4   Issuance of Warrants or Other Rights .......................  10
          4.5   Issuance of Convertible Securities .........................  10
          4.6   Superseding Adjustment .....................................  11
          4.7   Other Provisions Applicable to Adjustments under
                this Section ...............................................  12
          4.8   Reorganization, Reclassification, Merger, Consolidation
                or Disposition of Assets ...................................  15
          4.9   Certain Limitations ........................................  15
          4.10  Adjustments ................................................  16

5.   NOTICES TO WARRANT HOLDERS ............................................  16
          5.1   Notice of Adjustments ......................................  16
          5.2   Notice of Certain Corporate Action .........................  16

6.   NO IMPAIRMENT .........................................................  16

7.   RESERVATION AND AUTHORIZATION OF COMMON STOCK;
     REGISTRATION WITH OR APPROVAL OF ANY GOVERNMENTAL
     AUTHORITY .............................................................  17

8.   TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS ....................  18

9.   RESTRICTIONS ON TRANSFERABILITY .......................................  18
          9.1   Restrictive Legend .........................................  18
          9.2   Notice of Proposed Transfers ...............................  18

                                       ii
<PAGE>

10.  SUPPLYING INFORMATION .................................................  19

11.  LOSS OR MUTILATION ....................................................  19

12.   OFFICE OF THE COMPANY ................................................  19

13.   FINANCIAL AND BUSINESS INFORMATION ...................................  19
          13.1  Quarterly Information ......................................  19
          13.2  Annual Information .........................................  19
          13.3  Filings ....................................................  20
          13.4  Exception to Delivery Requirement ..........................  20

14.   APPRAISAL ............................................................  20

15.   LIMITATION OF LIABILITY ..............................................  21

16.   MISCELLANEOUS ........................................................  21
          16.1  Nonwaiver ..................................................  21
          16.2  Notice Generally ...........................................  21
          16.3  Remedies ...................................................  22
          16.4  Successors and Assigns .....................................  22
          16.5  Amendment ..................................................  22
          16.6  Severability ...............................................  22
          16.7  Headings ...................................................  22
          16.8  Governing Law ..............................................  22

EXHIBIT A

         SUBSCRIPTION FORM ................................................. A-1

EXHIBIT B

         ASSIGNMENT FORM ................................................... B-1

                                       iii
<PAGE>

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, NOR REGISTERED OR QUALIFIED UNDER ANY STATE SECURITIES LAWS AND MAY NOT
BE SOLD OR OTHERWISE TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES AND
REGULATIONS THEREUNDER, SUCH STATE SECURITIES LAWS OR THE PROVISIONS OF THIS
WARRANT.

                              AMENDED AND RESTATED

                                     WARRANT

                           To Purchase Common Stock of

                                Multex.com, Inc.

      This is to certify that Merrill Lynch Pierce, Fenner & Smith Incorporated,
or registered assigns, is entitled, at any time during the Exercise Period, to
purchase from Multex.com, Inc., a Delaware corporation (the "Company"), (i) an
aggregate of 31,859 shares of Common Stock at an exercise price of $12.31 per
share, subject to adjustment as provided in Section 4 herein and (ii) an
aggregate of 37,381 shares of Common Stock at an exercise price of $5.06 per
share, subject to adjustment as provided for in Section 4 herein, all on the
terms and conditions and pursuant to the provisions hereinafter set forth. This
Warrant represents a portion of those warrants originally vested and exercisable
under the Original Warrant issued by the Company to Merrill Lynch & Co., Inc.,
or its registered assigns, on January 31, 2000.

1.    DEFINITIONS

      As used in this Warrant, the following terms have the respective meanings
set forth below:

      "ADDITIONAL SHARES OF COMMON STOCK" shall mean all shares of Common Stock
issued by the Company after the date hereof, other than Warrant Stock.

      "AFFILIATE" shall mean, with respect to any Person (a) any director,
officer or stockholder holding 5% or more of the capital stock (on a fully
diluted basis) of such Person, (b) any spouse, parent, sibling or descendant of
such Person (or a spouse, parent, sibling or descendant of any director or
officer of such Person) and (c) any other Person that, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person. The term

<PAGE>

                                                                               2

"CONTROL" includes, without limitation, the possession, directly or indirectly,
of the power to direct the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

      "APPRAISED VALUE" shall mean, in respect of any share of Common Stock on
any date herein specified, the fair saleable value of such share of Common Stock
(determined without giving effect to the discount for (i) a minority interest,
(ii) a lack of voting power or (iii) any lack of liquidity of the Common Stock
or to the fact that the Company may have no class of equity registered under the
Exchange Act) as of the last day of the most recent fiscal month to end within
31 days prior to such date, based on the value of the Company, as determined in
good faith by the Board of Directors or by an investment banking firm selected
in accordance with the terms of Section 14 hereof adjusted to reflect the
aggregate consideration receivable by the Company or the aggregate principal
amount of indebtedness of the Company extinguishable upon the issuance of any
and all securities not outstanding but deemed to be outstanding in the
computation, divided by the number of Fully Diluted Outstanding shares of Common
Stock.

      "BOARD OF DIRECTORS" shall have the meaning set forth in Section 4.7(a)
hereof.

      "BUSINESS DAY" shall mean any day that is not a Saturday or Sunday or a
day on which banks in the City of New York are required or permitted to be
closed.

      "COMMISSION" shall mean the Securities and Exchange Commission or any
other federal agency then administering the Securities Act and other federal
securities laws.

      "COMMON STOCK" shall mean the common stock, par value $0.01 per share, of
the Company as constituted on the date hereof, and any capital stock into which
such Common Stock may thereafter be changed, and shall also include (i) capital
stock of the Company of any other class (regardless of how denominated) issued
to the holders of shares of Common Stock upon any reclassification thereof,
excluding any class which provides for (A) dividends at a fixed rate which rate
does not vary based on the net income or operating results of the Company and/or
its subsidiaries, (B) a preference as to liquidation which is limited to the
consideration received by the Company for such stock and (C) no right of
redemption and (ii) shares of common stock of any successor or acquiring
corporation (as defined in Section 4.8) received by or distributed to the
holders of Common Stock in the circumstances contemplated by Section 4.8.

      "CONVERTIBLE SECURITIES" shall mean evidences of indebtedness, shares of
stock or other securities which are convertible into or exchangeable, with or
without payment of additional consideration in cash or property, for Additional
Shares of Common Stock, either immediately or upon the occurrence of a specified
date or a specified event.

<PAGE>

                                                                               3

      "CURRENT MARKET PRICE" shall mean, in respect of any share of Common Stock
on any date herein specified, (a) if there shall then be no public market for
the Common Stock, the Appraised Value per share of Common Stock as at such date,
or (b) if there shall then be a public market for the Common Stock, the average
of the daily market prices for 30 consecutive Business Days commencing 45 days
before such date. The daily market price for each such Business Day shall be (i)
the average of the last sale price on such day on the domestic stock exchanges
on which such Common Stock is then listed or admitted to trading (if no sale
takes place on such day on any such exchange, the average of the last reported
closing bid and asked prices on such day as officially quoted on all such
domestic exchanges), (ii) if the Common Stock is not then listed or admitted to
trading on any domestic stock exchange, the average of the last reflected bid
and asked prices on such day on Nasdaq, (iii) if the Common Stock is not then
listed or admitted to trading on any domestic stock exchange or Nasdaq, the
average of the last reported closing bid and asked prices on such day in the
over-the-counter market, as furnished by the National Association of Securities
Dealers Automatic Quotation System or the National Quotation Bureau, Inc., (iv)
if neither such corporation at the time is engaged in the business of reporting
such prices, as furnished by any similar firm then engaged in such business, (v)
if there is no such firm, as mutually agreed to by the Company and Holder, or
(vi) if the Company and Holder cannot agree within fifteen days of such Business
Day, as furnished by any member of the NASD selected mutually by the Majority
Holders and the Company or, if they cannot agree upon such selection, as
selected by two such members of the NASD, one of which shall be selected by the
Majority Holders and one of which shall be selected by the Company.

      "CURRENT WARRANT PRICE" shall mean the exercise price at which a share of
Common Stock may be purchased pursuant to the exercise of this Warrant on such
date.

      "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended,
or any similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect from time to time.

      "EXERCISE PERIOD" shall mean the period during which this Warrant is
exercisable pursuant to Section 2.1.

      "EXPIRATION DATE" shall mean, (a) with respect to the portion of this
Warrant described in Section 2.1(a) (such portion of this Warrant subject to any
adjustment under Section 4 herein), December 31, 2005, and (b) with respect to
the portion of this Warrant described in Section 2.1(b) (such portion of this
Warrant subject to any adjustment under Section 4 herein), December 31, 2006.

      "FULLY DILUTED OUTSTANDING" shall mean, when used with reference to Common
Stock, at any date as of which the number of shares thereof is to be determined,
all shares of Common Stock outstanding at such date and all shares of Common
Stock issuable in respect of this Warrant outstanding on such date, and other
options or warrants to purchase, or securities convertible or

<PAGE>

                                                                               4

exchangeable into, shares of Common Stock outstanding on such date which would
be deemed outstanding in accordance with GAAP for purposes of determining book
value or net income per share on a fully-diluted basis.

      "GAAP" shall mean generally accepted accounting principles in the United
States of America as from time to time in effect.

      "HOLDER" shall mean the Person in whose name the Warrant set forth herein
is registered on the books of the Company maintained for such purpose, or any
successor or assign.

      "MAJORITY HOLDERS" shall mean the Holders of in excess of 50% of the
aggregate number of shares of Common Stock then purchasable upon exercise of
this Warrant.

      "NASD" shall mean the National Association of Securities Dealers, Inc., or
any successor corporation thereto.

      "NASDAQ" shall mean the Nasdaq National Market.

      "ORIGINAL WARRANT" shall mean the warrant issued by the Company to Merrill
Lynch & Co., Inc., or its registered assigns, on January 31, 2000.

      "OTHER PROPERTY" shall have the meaning set forth in Section 4.8.

      "OUTSTANDING" shall mean, when used with reference to Common Stock, at any
date as of which the number of shares thereof is to be determined, all issued
shares of Common Stock, except shares then owned or held by or for the account
of the Company or any subsidiary thereof, and shall include all shares issuable
in respect of outstanding scrip or any certificates representing fractional
interests in shares of Common Stock.

      "PERMITTED ISSUANCES" shall mean (i) the issuance of (a) stock options to
the Company's management employees and directors and (b) Common Stock or stock
options, in an amount not to exceed 20% in the aggregate for all such issuances
of the Company's Fully Diluted Outstanding shares of Common Stock, to lenders of
the Company as partial consideration in connection with the Company's incurrence
of debt from such lenders and (ii) the issuance of shares of Common Stock upon
exercise of the options referred to in clause (i).

      "PERSON" shall mean any individual, sole proprietorship, partnership,
joint venture, trust, incorporated organization, association, corporation,
limited liability company, institution, public benefit corporation, entity or
government (whether federal, state, county, city, municipal or otherwise,
including, without limitation, any instrumentality, division, agency, body or
department thereof).

<PAGE>

                                                                               5

      "PURCHASE AGREEMENT" shall mean the Purchase Agreement, dated as of June
20, 2002, among the Company, Holder and ML IBK Positions Inc. (as the same may
be amended, restated, supplemented or otherwise modified from time to time).

      "RESTRICTED COMMON STOCK" shall mean shares of Common Stock which are, or
which upon their issuance on the exercise of this Warrant would be, evidenced by
a certificate bearing the restrictive legend set forth in Section 9.1.

      "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, or any
similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

      "TRANSFER" shall mean any disposition of any Warrant or Warrant Stock or
of any interest in either thereof, which would constitute a sale thereof within
the meaning of the Securities Act.

      "TRANSFER NOTICE" shall have the meaning set forth in Section 9.2.

      "WARRANT" shall mean this Amended and Restated Warrant to purchase 69,240
shares of Common Stock, as adjusted pursuant to the adjustment provisions set
forth in Section 4 of this Warrant, and any warrant issued upon transfer,
division or combination of, or in substitution for, any thereof.

      "WARRANT PRICE" shall mean an amount equal to (i) the number of shares of
Common Stock being purchased upon exercise of this Warrant, multiplied by (ii)
the Current Warrant Price as of the date of such exercise.

      "WARRANT STOCK" shall mean the shares of Common Stock purchasable by the
Holder of the Warrant upon the exercise thereof, as adjusted pursuant to Section
4 herein.

2.    EXERCISE OF WARRANT

      2.1   MANNER OF EXERCISE. Subject to adjustment pursuant to Section 4, (a)
the portion of the Warrant to purchase 31,859 shares of Common Stock at an
exercise price of $12.31 per share and (b) the portion of the Warrant to
purchase 37,381 shares of Common Stock at an exercise price of $5.06 per share,
are fully vested and immediately exercisable. Holder may exercise this Warrant
on any Business Day, for all or any part of the number of vested shares of
Common Stock purchasable hereunder through 5:00 p.m. Eastern Standard Time on
the applicable Expiration Date of the portion of this Warrant being exercised
(the "EXERCISE PERIOD").

      In order to  exercise  this  Warrant,  in whole or in part,  Holder  shall
deliver to the Company at its

<PAGE>

                                                                               6

principal office at 100 William Street, New York, NY 10038 or at the office or
agency designated by the Company pursuant to Section 12, (i) a written notice of
Holder's election to exercise this Warrant, which notice shall specify the
number of shares of Common Stock to be purchased, (ii) payment of the Warrant
Price and (iii) this Warrant; PROVIDED, that any notice of exercise given
hereunder may be made contingent upon the happening of, and effective
concurrently with the effectiveness of, any event, including, without
limitation, the participation of any Holder in or closing of any public offering
proposed to be effected by the Company or the closing of a sale pursuant to the
exercise of any tag-along or other rights of participation by any Holder, if
such contingency and such event are specified in such notice. Such notice shall
be substantially in the form of the subscription form appearing at the end of
this Warrant as EXHIBIT A, duly executed by Holder or its agent or attorney.

      Upon receipt thereof, the Company shall, as promptly as practicable, and
in any event within five (5) Business Days thereafter, execute or cause to be
executed and deliver or cause to be delivered to Holder a certificate or
certificates representing the aggregate number of full shares of Common Stock
issuable upon such exercise, together with cash in lieu of any fraction of a
share, as hereinafter provided. The stock certificate or certificates so
delivered shall be, to the extent possible, in such denomination or
denominations as such Holder shall request in the notice and shall be registered
in the name of Holder or, subject to Section 9, such other name as shall be
designated in the notice. This Warrant shall be deemed to have been exercised
and such certificate or certificates shall be deemed to have been issued, and
Holder or any other Person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the notice or as of the date all events have occurred that the notice has
specified the exercise of the Warrant is contingent upon, together with the cash
or check or checks and this Warrant, is received by the Company as described
above and all taxes required to be paid by Holder, if any, pursuant to Section
2.2 prior to the issuance of such shares have been paid. If this Warrant shall
have been exercised in part, the Company shall, at the time of delivery of the
certificate or certificates representing Warrant Stock, deliver to Holder a new
Warrant evidencing the rights of Holder to purchase the unpurchased shares of
Common Stock called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant, or, at the request of Holder,
appropriate notation may be made on this Warrant and the same returned to
Holder. Notwithstanding any provision herein to the contrary, the Company shall
not be required to register shares in the name of any Person who acquired this
Warrant (or part hereof) or any Warrant Stock otherwise than in accordance with
this Warrant.

      Payment of the Warrant Price shall be made at the option of the Holder by
certified or official bank check or by surrender of rights under this Warrant to
receive a number of shares of Warrant Stock having a fair market value equal to
the aggregate Current Warrant Price of such Warrant Stock.

      2.2   PAYMENT OF TAXES. All shares of Common Stock issuable upon the
exercise of this Warrant pursuant to the terms hereof shall be validly issued,
fully paid and nonassessable. The Company shall pay all expenses in connection
with, and all taxes and other governmental charges that

<PAGE>

                                                                               7

may be imposed with respect to, the issue or delivery thereof, unless such tax
or charge is imposed by law upon Holder, in which case such taxes or charges
shall be paid by Holder. The Company shall not be required, however, to pay any
tax or other charge imposed in connection with any transfer involved in the
issue of any certificate for shares of Common Stock issuable upon exercise of
this Warrant in any name other than that of Holder.

      2.3   FRACTIONAL SHARES. The Company shall not be required to issue a
fractional share of Common Stock upon exercise of this Warrant. As to any
fraction of a share which the Holder of the Warrant would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to the same fraction of the
Current Market Price per share of Common Stock on the date of exercise.

      2.4   CONTINUED VALIDITY. A holder of shares of Common Stock issued upon
the exercise of this Warrant, in whole or in part (other than a holder who
acquires such shares after the same have been publicly sold pursuant to a
Registration Statement under the Securities Act or sold pursuant to Rule 144
thereunder), shall continue to be entitled with respect to such shares to all
rights to which it would have been entitled as Holder under Sections 9 and 10 of
this Warrant. The Company will, at the time of each exercise of this Warrant, in
whole or in part, upon the request of the holder of the shares of Common Stock
issued upon such exercise hereof, acknowledge in writing its continuing
obligation to afford to such holder all such rights; PROVIDED, HOWEVER, that if
such holder shall fail to make any such request, such failure shall not affect
the continuing obligation of the Company to afford to such holder all such
rights.

      2.5   INVESTMENT REPRESENTATIONS. Upon exercise of the Warrant, the
Company may require customary investment representations from the Holder to
assure that the issuance of Common Stock hereunder shall not require
registration or qualification under the Securities Act.

3.    TRANSFER, DIVISION AND COMBINATION

      3.1   TRANSFER. (a) Subject to compliance with Section 9 hereof, transfer
of this Warrant and all rights hereunder, in whole or in part, shall be
registered on the books of the Company to be maintained for such purpose, upon
surrender of this Warrant at the principal office of the Company referred to in
Section 2.1 or the office or agency designated by the Company pursuant to
Section 12, together with a written assignment of this Warrant substantially in
the form of EXHIBIT B hereto duly executed by Holder or its agent or attorney
and funds sufficient to pay any transfer taxes payable upon the making of such
transfer. Upon such surrender and, if required, such payment, the Company shall,
subject to Section 9, execute and deliver a new warrant or warrants in the name
of the assignee or assignees and in the denomination specified in such
instrument of assignment, and shall issue to the assignor a new warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned in compliance with
Section 9, may be

<PAGE>

                                                                               8

exercised by a new Holder for the purchase of shares of Common Stock without
having a new Warrant issued.

      (b)   Holder agrees that it will not Transfer this Warrant or any portion
thereof or the Warrant Stock, in each case, as adjusted from time to time by
Section 4 hereof, in violation of this Warrant. The provisions of this Section
3.1(b) notwithstanding, Holder may always Transfer this Warrant or any portion
thereof or the Warrant Stock, in each case, as adjusted by Section 4 hereof, to
any Affiliate of Holder.

      3.2   DIVISION AND COMBINATION. Subject to Section 9, this Warrant may be
divided or combined with other warrants upon presentation hereof at the
aforesaid office or agency of the Company, together with a written notice
specifying the names and denominations in which new warrants are to be issued,
signed by Holder or its agent or attorney. Subject to compliance with Section
3.1 and with Section 9, as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new warrant or
warrants in exchange for this Warrant or warrants to be divided or combined in
accordance with such notice.

      3.3   EXPENSES. The Company shall prepare, issue and deliver at its own
expense (other than transfer taxes) the new warrant or warrants under this
Section 3.

      3.4   MAINTENANCE OF BOOKS. The Company agrees to maintain, at its
aforesaid office or agency, books for the registration and the registration of
transfer of this Warrant.

4.    ADJUSTMENTS

      The number of shares of Common Stock for which this Warrant is exercisable
and the Current Warrant Price shall be subject to adjustment from time to time
as set forth in this Section 4. The Company shall give the Holder (i) notice of
any event described below which requires an adjustment pursuant to this Section
4 at the time of such event in accordance with Section 5.1 and (ii) a
certificate reflecting the number of shares of Common Stock underlying this
Warrant and the exercise prices of this Warrant, as adjusted (with a worksheet
showing the calculation thereof). Notwithstanding anything to the contrary in
this Section 4, no adjustment under this Section 4 (other than subsection
4.1(c)) shall increase the Current Warrant Price or decrease the number of
shares of Common Stock for which this Warrant is exercisable except for any
rescission adjustment required to be made pursuant to the first sentence of
Section 4.6.

      With respect to the adjustments to the shares of Common Stock underlying
this Warrant and the Current Warrant Price set forth in Section 4, such
adjustments shall be separately made to each portion of this Warrant having the
same Current Warrant Price.

<PAGE>

                                                                               9

      4.1   STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS. If at any time the
Company shall:

            (a)   take a record of the holders of its Common Stock for the
      purpose of entitling them to receive a dividend payable in, or other
      distribution of, Additional Shares of Common Stock,

            (b)   subdivide its outstanding shares of Common Stock into a larger
      number of shares of Common Stock, or

            (c)   combine its outstanding shares of Common Stock into a smaller
      number of shares of Common Stock,

then (i) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (ii) the Current Warrant Price
shall be adjusted to equal (A) the Current Warrant Price multiplied by the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the adjustment divided by (B) the number of shares for
which this Warrant is exercisable immediately after such adjustment.

      4.2   CERTAIN OTHER DISTRIBUTIONS. If at any time the Company shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive any dividend or other distribution of:

            (a)   cash (other than a cash distribution or dividend payable out
      of earnings for the year in which such dividend was declared or earned
      surplus legally available for the payment of dividends under the laws of
      the jurisdiction of incorporation of the Company),

            (b)   any evidences of its indebtedness, any shares of its stock or
      any other securities or property of any nature whatsoever (other than
      cash, Convertible Securities or Additional Shares of Common Stock), or

            (c)   any warrants or other rights to subscribe for or purchase any
      evidences of its indebtedness, any shares of its stock or any other
      securities or property of any nature whatsoever (other than cash,
      Convertible Securities or Additional Shares of Common Stock),

then the Company shall give the Holder 30 days' prior written notice of any of
the dividends or distributions described in paragraphs (a), (b) and (c) of this
Section 4.2 and shall permit the Holder to exercise any portion of this Warrant.

<PAGE>

                                                                              10

      4.3   ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK. If at any time the
Company (except as hereinafter provided) shall issue or sell any Additional
Shares of Common Stock, other than Permitted Issuances, in exchange for
consideration in an amount per Additional Share of Common Stock which is less
than the Current Warrant Price and less than the Current Market Price at the
time the Additional Shares of Common Stock are issued, (i) the Current Warrant
Price as to the number of shares for which this Warrant is exercisable prior to
such adjustment shall be reduced to a price determined by dividing (A) an amount
equal to the sum of (x) the number of shares of Common Stock Outstanding
immediately prior to such issue or sale multiplied by the then existing Current
Warrant Price, and (y) the consideration, if any, received by the Company upon
such issue or sale, by (B) the total number of shares of Common Stock
Outstanding immediately after such issue or sale; and (ii) the number of shares
of Common Stock for which this Warrant is exercisable shall be increased to
equal the product obtained by multiplying the Current Warrant Price in effect
immediately prior to such issue or sale by the number of shares of Common Stock
for which this Warrant is exercisable immediately prior to such issue or sale
and dividing the product thereof by the Current Warrant Price resulting from the
adjustment made pursuant to clause (i) above.

      The provisions of this Section 4.3 shall not apply to any issuance of
Additional Shares of Common Stock for which an adjustment is provided under
Section 4.1. No adjustment of the number of shares of Common Stock for which
this Warrant shall be exercisable shall be made under this Section 4.3 upon the
issuance of any Additional Shares of Common Stock which are issued pursuant to
the exercise of any warrants or other subscription or purchase rights or
pursuant to the exercise of any conversion or exchange rights in any Convertible
Securities, if any such adjustment shall previously have been made upon the
issuance of such warrants or other rights or upon the issuance of such
Convertible Securities (or upon the issuance of any warrant or other rights
therefor) pursuant to Section 4.4 or Section 4.5.

      4.4   ISSUANCE OF WARRANTS OR OTHER RIGHTS. If at any time the Company
shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a distribution of, or shall in any manner (whether
directly or by assumption in a merger in which the Company is the surviving
corporation) issue or sell, any warrants or other rights to subscribe for or
purchase any Additional Shares of Common Stock or any Convertible Securities at
an exercise price which is less than the Current Warrant Price and less than the
Current Market Price, whether or not the rights to exchange or convert
thereunder are immediately exercisable, then the Current Warrant Price and the
number of shares of Common Stock for which this Warrant is then exercisable
shall be adjusted as provided in Section 4.3 on the basis that the maximum
number of Additional Shares of Common Stock issuable pursuant to all such
warrants or other rights or necessary to effect the conversion or exchange of
all such Convertible Securities shall be deemed to have been issued and
outstanding and the Company shall have received all of the consideration payable
therefor, if any, as of the date of the actual issuance of such warrants or
other rights. No further adjustments of the Current Warrant Price or the number
of shares for which this Warrant is exercisable shall be made upon the actual
issue of

<PAGE>

                                                                              11

such Common Stock or of such Convertible Securities upon exercise of such
warrants or other rights or upon the actual issue of such Common Stock upon such
conversion or exchange of such Convertible Securities.

      4.5   ISSUANCE OF CONVERTIBLE SECURITIES. If at any time the Company shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Company is the surviving corporation)
issue or sell, any Convertible Securities at an exercise price which is less
than the Current Warrant Price and less than the Current Market Price, whether
or not the rights to exchange or convert thereunder are immediately exercisable,
then the Current Warrant Price and the number of shares of Common Stock for
which this Warrant is then exercisable shall be adjusted as provided in Section
4.3 on the basis that the maximum number of Additional Shares of Common Stock
necessary to effect the conversions or exchange of all such Convertible
Securities shall be deemed to have been issued and outstanding and the Company
shall have received all of the consideration payable therefor, if any, as of the
date of actual issuance of such Convertible Securities. No adjustment of the
Current Warrant Price or the number of shares for which this Warrant is
exercisable shall be made under this Section 4.5 upon the issuance of any
Convertible Securities which are issued pursuant to the exercise of any warrants
or other subscription or purchase rights therefor, if any such adjustment shall
previously have been made upon the issuance of such warrants or other rights
pursuant to Section 4.4. No further adjustments of the Current Warrant Price or
the number of shares for which this Warrant is exercisable shall be made upon
the actual issue of such Additional Shares of Common Stock or of such
Convertible Securities upon exercise of such warrants or other rights or upon
the actual issue of such Additional Shares of Common Stock upon such conversion
or exchange of such Convertible Securities.

      4.6   SUPERSEDING ADJUSTMENT. If, at any time after any adjustment of the
Current Warrant Price and the number of shares of Common Stock for which this
Warrant is exercisable shall have been made pursuant to Section 4.4 or Section
4.5 as the result of any issuance of warrants, rights or Convertible Securities,

            (a)   such warrants or rights, or the right of conversion or
      exchange in such other Convertible Securities, shall expire, and all or a
      portion of such warrants or rights, or the right of conversion or exchange
      with respect to all or a portion of such other Convertible Securities, as
      the case may be, shall not have been exercised, or

            (b)   the consideration per share for which shares of Common Stock
      are issuable pursuant to such warrants or rights, or the terms of such
      other Convertible Securities, shall be increased or decreased solely by
      virtue of provisions therein contained for an automatic increase or
      decrease in such consideration per share upon the occurrence of a
      specified date or event,

<PAGE>

                                                                              12

then such previous adjustment shall be rescinded and annulled and the Additional
Shares of Common Stock which were deemed to have been issued by virtue of the
computation made in connection with the adjustment so rescinded and annulled
shall no longer be deemed to have been issued by virtue of such computation.
Thereupon, a recomputation shall be made of the effect of such warrants or
rights or other Convertible Securities on the basis of

            (c)   treating the number of Additional Shares of Common Stock or
      Other Property, if any, theretofore actually issued or issuable pursuant
      to the previous exercise of any such warrants or rights or any such right
      of conversion or exchange, as having been issued on the date or dates of
      any such exercise and for the consideration actually received and
      receivable therefor, and

            (d)   treating any such warrants or rights or any such other
      Convertible Securities which then remain outstanding as having been
      granted or issued immediately after the time of such increase or decrease,
      as the case may be, of the consideration per share for which shares of
      Common Stock or Other Property are issuable under such warrants or rights
      or other Convertible Securities; whereupon a new adjustment of the Current
      Warrant Price and the number of shares of Common Stock for which this
      Warrant is exercisable shall be made pursuant to Section 4.4 or Section
      4.5, as appropriate, which new adjustment shall supersede the previous
      adjustment so rescinded and annulled;

PROVIDED, that no rescission or recomputation adjustment shall be made under
this Section 4.6 in respect of any portion of this Warrant which has been
exercised prior to the occurrence of any action otherwise requiring such
rescission or recomputation adjustment.

      4.7   OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS SECTION. The
following provisions shall be applicable to the making of adjustments of the
Current Warrant Price and the number of shares of Common Stock for which this
Warrant is exercisable provided for in this Section 4:

            (a)   COMPUTATION OF CONSIDERATION. To the extent that any
      Additional Shares of Common Stock or any Convertible Securities or any
      warrants or other rights to subscribe for or purchase any Additional
      Shares of Common Stock or any Convertible Securities shall be issued for
      cash consideration, the consideration received by the Company therefor
      shall be the amount of the cash received by the Company therefor, or, if
      such Additional Shares of Common Stock or Convertible Securities are
      offered by the Company for subscription, the subscription price, or, if
      such Additional Shares of Common Stock or Convertible Securities are sold
      to underwriters or dealers for public offering without a subscription
      offering, the initial public offering price (in any such case subtracting
      (x) any amounts paid or receivable for accrued interest or accrued
      dividends and (y) any compensation, discounts or expenses paid or

<PAGE>

                                                                              13

      incurred by the Company for and in the underwriting of, or otherwise in
      connection with, the issuance thereof). To the extent that such issuance
      shall be for a consideration other than cash, then, except as herein
      otherwise expressly provided, the amount of such consideration shall be
      deemed to be the fair value of such consideration at the time of such
      issuance as determined in good faith by the Board of Directors of the
      Company (the "BOARD OF DIRECTORS"). In case any Additional Shares of
      Common Stock or any Convertible Securities or any warrants or other rights
      to subscribe for or purchase such Additional Shares of Common Stock or
      Convertible Securities shall be issued in connection with any merger in
      which the Company issues any securities, the amount of consideration
      therefor shall be deemed to be the fair value, as determined in good faith
      by the Board of Directors, of such portion of the assets and business of
      the nonsurviving corporation as such Board in good faith shall determine
      to be attributable to such Additional Shares of Common Stock, Convertible
      Securities, warrants or other rights, as the case may be. The
      consideration for any Additional Shares of Common Stock issuable pursuant
      to any warrants or other rights to subscribe for or purchase the same
      shall be the consideration received by the Company for issuing such
      warrants or other rights plus the lowest amount of additional
      consideration payable to the Company upon exercise of such warrants or
      other rights. The consideration for any Additional Shares of Common Stock
      issuable pursuant to the terms of any Convertible Securities shall be the
      consideration received by the Company for issuing warrants or other rights
      to subscribe for or purchase such Convertible Securities, plus the
      consideration paid or payable to the Company in respect of the
      subscription for or purchase of such Convertible Securities, plus the
      lowest amount of additional consideration, if any, payable to the Company
      upon the exercise of the right of conversion or exchange in such
      Convertible Securities. In case of the issuance at any time of any
      Additional Shares of Common Stock or Convertible Securities in payment or
      satisfaction of any dividends upon any class of stock other than Common
      Stock, the Company shall be deemed to have issued such Additional Shares
      of Common Stock or Convertible Securities for no consideration. Whenever
      the Board of Directors shall be required to make a determination in good
      faith of the fair value of any consideration, such determination shall, if
      requested by the Majority Holders, be supported by an opinion of an
      investment banking firm of recognized national standing selected by the
      Company and reasonably acceptable to such Holders, with all costs thereof
      borne by the Company; PROVIDED, that if the determination of such fair
      value by the investment banking firm does not exceed the Board of
      Directors' determination of fair value by more than 10%, then the costs of
      such investment banking firm shall be borne by the Majority Holders.

            (b)   WHEN ADJUSTMENTS TO BE MADE. The adjustments required by this
      Section 4 shall be made whenever and as often as any specified event
      requiring an adjustment shall occur, except that any adjustment of the
      number of shares of Common Stock for which this Warrant is exercisable
      that would otherwise be required may be postponed (except in the case of a
      subdivision or combination of shares of the Common Stock, as provided for
      in Section 4.1) up to, but not beyond the date of exercise if such
      adjustment either by itself or with other

<PAGE>

                                                                              14

      adjustments not previously made adds or subtracts less than 0.1% of the
      shares of Common Stock for which this Warrant is exercisable immediately
      prior to the making of such adjustment. Any adjustment representing a
      change of less than such minimum amount (except as aforesaid) which is
      postponed shall be carried forward and made as soon as such adjustment,
      together with other adjustments required by this Section 4 and not
      previously made, would result in a minimum adjustment or on the date of
      exercise. For the purpose of any adjustment, any specified event shall be
      deemed to have occurred at the close of business on the date of its
      occurrence.

            (c)   FRACTIONAL INTERESTS. In computing adjustments under this
      Section 4, fractional interests in Common Stock shall be taken into
      account to the nearest 1/10th of a share.

            (d)   WHEN ADJUSTMENT NOT REQUIRED. If the Company shall take a
      record of the holders of its Common Stock for the purpose of entitling
      them to receive a dividend or distribution or subscription or purchase
      rights and shall, thereafter and before the distribution to stockholders
      thereof, legally abandon its plan to pay or deliver such dividend,
      distribution, subscription or purchase rights, then thereafter no
      adjustment shall be required by reason of the taking of such record and
      any such adjustment previously made in respect thereof shall be rescinded
      and annulled.

            (e)   ESCROW OF WARRANT STOCK. If after any property becomes
      distributable pursuant to this Section 4 by reason of the taking of any
      record of the holders of Common Stock, but prior to the occurrence of the
      event for which such record is taken, Holder exercises this Warrant, then
      any additional shares of Common Stock and Other Property issuable upon
      exercise solely by reason of such adjustment shall be held in escrow for
      Holder by the Company to be issued to Holder upon and to the extent that
      the event actually takes place. Notwithstanding any other provision to the
      contrary herein, if the event for which such record was taken fails to
      occur or is rescinded, then such escrowed shares shall be canceled by the
      Company and escrowed property returned.

            (f)   CHALLENGE TO GOOD FAITH DETERMINATION. Whenever the Board of
      Directors of the Company shall be required to make a determination in good
      faith of the fair value of any item under this Section 4, such
      determination may be challenged in good faith by Holder, and any dispute
      shall be resolved by an investment banking firm of recognized national
      standing selected by the Company and acceptable to such Holder, with all
      costs thereof borne by the Company; PROVIDED, that if the determination of
      such fair value by the investment banking firm does not exceed the Board
      of Directors' determination of fair value by more than 10%, then the costs
      of such investment banking firm shall be borne by the Majority Holders.

<PAGE>

                                                                              15

            (g)   CURRENT WARRANT PRICE NOT LESS THAN $.01. If, following any
      reduction of the Current Warrant Price and increase in the number of
      shares of Common Stock for which the Warrant is exercisable made pursuant
      to this Section 4, except any reduction made pursuant to subsections
      4.1(a) or 4.1(b), the Current Warrant Price is reduced to an amount less
      than $.01, the Current Warrant Price shall be increased (without any
      further change in the number of shares of Common Stock for which this
      Warrant is exercisable) to equal the lesser of (x) the Current Warrant
      Price immediately prior to such adjustment and (y) $.01. However, for
      purposes of calculating any subsequent adjustment pursuant to this Section
      4 (except this Section 4.7(g)) any increase in the Current Warrant Price
      pursuant to this Section 4.7(g) shall be disregarded.

      4.8   REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
DISPOSITION OF ASSETS. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock), or sell,
transfer or otherwise dispose of all or substantially all of its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("OTHER
PROPERTY"), are to be received by or distributed to the holders of Common Stock,
then each Holder shall have the right thereafter to receive, upon exercise of
such Warrant, the number of shares of common stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and Other
Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall assume by written
instrument the due and punctual observance and performance of each and every
covenant and condition of this Warrant to be performed and observed by the
Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined by resolution of the
Board of Directors) in order to provide for adjustments of shares of the Common
Stock for which this Warrant is exercisable which shall be as nearly equivalent
as practicable to the adjustments provided for in this Section 4. For purposes
of this Section 4.8, "COMMON STOCK OF THE SUCCESSOR OR ACQUIRING CORPORATION"
shall include (i) stock of such corporation of any class which does not provide
for (A) dividends at a fixed rate which does not vary based on the net income or
operating results of the Company and/or its subsidiaries, (B) a preference as to
liquidation which is limited to the consideration received by the Company for
such stock and (C) a right of redemption and (ii) any evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable
for any such stock, either immediately or upon the arrival of a specified date
or the happening of a specified event and any

<PAGE>

                                                                              16

warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 4.8 shall similarly apply to successive
reorganizations, reclassification, mergers, consolidations or disposition of
assets.

      4.9   CERTAIN LIMITATIONS. Notwithstanding anything herein to the
contrary, the Company agrees not to enter into any transaction which, by reason
of any adjustment hereunder, would cause the Current Warrant Price to be less
than the par value per share of Common Stock.

      4.10  ADJUSTMENTS. The Company hereby represents and warrants to Holder
that any adjustment required to be made by the Company pursuant to the terms of
the Original Warrant (specifically including section 4 thereof) through and
including the date hereof relating to (a) the number of shares of Common Stock
(as defined in the Original Warrant) for which the Original Warrant was
exercisable and (b) the Current Warrant Price (as defined in the Original
Warrant) reflecting the exercise price of such Common Stock, have been made, and
the shares of Common Stock exercisable by the Holder of this Warrant, and the
Current Warrant Price of such exercisable shares, have each been fully adjusted
to reflect any adjustments required to be made pursuant to the terms of the
Original Warrant.

5.    NOTICES TO WARRANT HOLDERS

      5.1   NOTICE OF ADJUSTMENTS. Whenever the Current Warrant Price or the
number of shares of Common Stock for which this Warrant is exercisable shall be
adjusted pursuant to Section 4, the Company shall forthwith prepare a
certificate to be executed by the chief financial officer of the Company setting
forth, in reasonable detail, the event requiring the adjustment and the method
by which such adjustment was calculated (including a description of the basis on
which the Board of Directors determined the fair value of any evidences of
indebtedness, shares of stock, other securities or property or warrants or other
subscription or purchase rights referred to in Section 4.5 or 4.6(a)),
specifying the number of shares of Common Stock for which this Warrant is
exercisable and (if such adjustment was made pursuant to Section 4.8) describing
the number and kind of any other shares of stock or Other Property for which
this Warrant is exercisable, and any change in the purchase price or prices
thereof, after giving effect to such adjustment or change. The Company shall
promptly cause an executed copy of such certificate to be delivered to each
Holder in accordance with Section 16.2. The Company shall keep at its office or
agency designated pursuant to Section 12 copies of all such certificates and
cause the same to be available for inspection at said office during normal
business hours by any Holder or any prospective purchaser of a Warrant
designated by a Holder thereof.

      5.2   NOTICE OF CERTAIN CORPORATE ACTION. The Holder shall be entitled to
the same rights to receive notice of corporate action as any holder of Common
Stock.

<PAGE>

                                                                              17

6.    NO IMPAIRMENT

      The Company shall not by any action avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will, in good faith,
assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of Holder
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (b) take all
such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable shares of Common Stock
upon the exercise of this Warrant, and (c) use its reasonable efforts to obtain
all such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be necessary to enable the Company to perform
its obligations under this Warrant.

      Upon the request of Holder, the Company will, at any time during the
period this Warrant is outstanding, acknowledge in writing, the continuing
validity of this Warrant and the obligations of the Company hereunder.

7.    RESERVATION AND AUTHORIZATION OF COMMON STOCK; REGISTRATION WITH OR
      APPROVAL OF ANY GOVERNMENTAL AUTHORITY

      The Company shall at all times reserve and keep available for issue upon
the exercise of this Warrant such number of its authorized but unissued shares
of Common Stock as will be sufficient to permit the exercise in full of this
Warrant. All shares of Common Stock which shall be so issuable, when issued upon
exercise of this Warrant and payment therefor in accordance with the terms of
such Warrant, shall be duly and validly issued and fully paid and nonassessable,
and not subject to preemptive rights.

      Before taking any action which would cause an adjustment reducing the
Current Warrant Price below the then par value, if any, of the shares of Common
Stock issuable upon exercise of the Warrants, the Company shall take reasonable
corporate action which may be necessary in order that the Company may validly
and legally issue fully paid and nonassessable shares of such Common Stock at
such adjusted Current Warrant Price.

      Before taking any action which would result in an adjustment in the number
of shares of Common Stock for which this Warrant is exercisable or in the
Current Warrant Price, the Company shall take reasonable actions required,
including, without limitation, amending its certificate of incorporation, to
ensure that it has a sufficient number of shares of authorized and unissued
shares of Common Stock in order to permit the exercise of the Warrants following
such adjustment and obtain all such authorizations or exemptions thereof, or
consents thereto, as may be necessary from any public
<PAGE>

                                                                              18

regulatory body or bodies having jurisdiction thereof.

      If any shares of Common Stock required to be reserved for issuance upon
the exercise of this Warrant require registration or qualification with any
governmental authority under any federal or state law (otherwise than as
provided in Section 9) before such shares may be so issued, the Company will in
good faith and as expeditiously as possible and at its expense endeavor to cause
such shares to be duly registered.

8.    TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS

      In the case of all dividends or other distributions by the Company to the
holders of its Common Stock with respect to which any provision of Section 4
refers to the taking of a record of such holders, the Company will in each such
case take such a record and will take such record as of the close of business on
a Business Day. The Company will not at any time, except upon dissolution,
liquidation or winding up of the Company, close its stock transfer books or
Warrant transfer books so as to result in preventing or delaying the exercise or
transfer of any Warrant.

9.    RESTRICTIONS ON TRANSFERABILITY

      The Warrants shall not be transferred, hypothecated or assigned before
satisfaction of the conditions specified in this Section 9, which conditions are
intended to ensure compliance with the provisions of the Securities Act with
respect to the Transfer of any Warrant. Holder, by acceptance of this Warrant,
agrees to be bound by the provisions of this Section 9.

      9.1   RESTRICTIVE LEGEND. Except as otherwise provided in this Section 9,
each Warrant shall be stamped or otherwise imprinted with a legend in
substantially the following form:

            "This Warrant has not been registered under the Securities Act of
      1933, as amended, nor registered or qualified under any state securities
      laws and may not be transferred in violation of such Act, the rules and
      regulations thereunder, such state securities laws or the provisions of
      this Warrant."

      9.2   NOTICE OF PROPOSED TRANSFERS. Subject to Section 3.1, prior to any
Transfer or attempted Transfer of any Warrants, the holder of such Warrants
shall give ten days' prior written notice (a "TRANSFER NOTICE") to the Company
of such holder's intention to effect such Transfer, describing the manner and
circumstances of the proposed Transfer, and obtain from counsel to such holder
who shall be reasonably satisfactory to the Company, an opinion that the
proposed Transfer of such Warrants may be effected without registration under
the Securities Act. After receipt of the Transfer Notice and opinion, the
Company shall, within five days thereof, so notify the holder of such Warrants
and such holder shall thereupon be entitled to Transfer such Warrants, in
accordance with the

<PAGE>

                                                                              19

terms of the Transfer Notice. Each certificate, if any, evidencing each Warrant
issued upon such Transfer shall bear the restrictive legend set forth in Section
9.1, unless in the opinion of such counsel such legend is not required in order
to ensure compliance with the Securities Act. The holder of the Warrants giving
the Transfer Notice shall not be entitled to transfer such Warrants or such
Restricted Common Stock until receipt of notice from the Company under this
Section 9.2.

10.   SUPPLYING INFORMATION

      The Company shall cooperate with each Holder of a Warrant and each holder
of Restricted Common Stock in supplying such information as may be reasonably
necessary for such holder to complete and file any information reporting forms
presently or hereafter required by the Commission as a condition to the
availability of an exemption from the Securities Act for the sale of any Warrant
or Restricted Common Stock.

11.   LOSS OR MUTILATION

      Upon receipt by the Company from any Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it and in
case of mutilation upon surrender and cancellation hereof, the Company will
execute and deliver in lieu hereof a new warrant of like tenor to such Holder;
PROVIDED, HOWEVER, that in the case of mutilation, no indemnity shall be
required if this Warrant in identifiable form is surrendered to the Company for
cancellation.

12.   OFFICE OF THE COMPANY

      As long as any of the Warrants remain outstanding, the Company shall
maintain an office or agency (which may be the principal executive offices of
the Company) where the Warrants may be presented for exercise, registration of
transfer, division or combination as provided in this Warrant.

13.   FINANCIAL AND BUSINESS INFORMATION

      13.1  QUARTERLY INFORMATION. The Company will deliver to each Holder, as
soon as practicable after the end of each of the first three quarters of the
Company, and in any event within 45 days thereafter, one copy of an unaudited
consolidated balance sheet of the Company and its subsidiaries as at the close
of such quarter, and the related unaudited consolidated statements of income and
changes in financial position of the Company for such quarter and, in the case
of the second and third quarters, for the portion of the fiscal year ending with
such quarter, setting forth in each case in comparative form the figures for the
corresponding periods in the previous fiscal year. Such financial statements
shall be prepared by the Company in accordance with GAAP and accompanied by the
certification of the Company's chief executive officer or chief financial
officer that such financial

<PAGE>

                                                                              20

statements are complete and correct and present fairly the consolidated
financial position, results of operations and changes in financial position of
the Company and its subsidiaries as at the end of such quarter and for such
year-to-date period, as the case may be.

      13.2  ANNUAL INFORMATION. The Company will deliver to each Holder as soon
as practicable after the end of each fiscal year of the Company, and in any
event within 90 days thereafter, one copy of:

            (i)   an audited consolidated balance sheet of the Company and its
      subsidiaries as at the end of such year, and

            (ii)  audited consolidated statements of income, retained earnings
      and changes in financial position of the Company and its subsidiaries for
      such year;

setting forth in each case in comparative form the figures for the corresponding
periods in the previous fiscal year; all prepared in accordance with GAAP, and
which audited financial statements shall be accompanied by (i) an opinion
thereon of the independent certified public accountants regularly retained by
the Company, or any other firm of independent certified public accountants of
recognized national standing selected by the Company and (ii) a report of such
independent certified public accountants confirming any adjustment made pursuant
to Section 4 during such year.

      13.3  FILINGS. The Company will file on or before the required date all
regular or periodic reports (pursuant to the Exchange Act) with the Commission
and will deliver to Holder promptly upon their becoming available one copy of
each report, notice or proxy statement sent by the Company to its stockholders
generally, and of each regular or periodic report (pursuant to the Exchange Act)
and any Registration Statement, prospectus or written communication (other than
transmittal letters) (pursuant to the Securities Act), filed by the Company with
(i) the Commission or (ii) any securities exchange on which shares of Common
Stock are listed.

      13.4  EXCEPTION TO DELIVERY REQUIREMENT. Notwithstanding anything to the
contrary in this Section 13, for so long as the Company is a reporting company
under the Exchange Act, the Company shall not be required to provide Holder with
any of the items described in Sections 13.1, 13.2 and 13.3 so long as the
Company's reports required to be filed with the Commission (containing the type
of information described above) are timely filed with the Commission.

14.   APPRAISAL

      The determination of the Appraised Value per share of Common Stock (if
necessary) shall be made in good faith by the Board of Directors of the Company.
In the event the Appraised Value determined in good faith by the Board of
Directors is not acceptable to the Majority Holders, then the

<PAGE>

                                                                              21

Appraised Value shall be made by an investment banking firm of nationally
recognized standing selected by the Company and acceptable to the Majority
Holders. If the investment banking firm selected by the Company is not
acceptable to the Majority Holders and the Company and the Majority Holders
cannot agree on a mutually acceptable investment banking firm, then the Majority
Holders and the Company shall each choose one such investment banking firm and
the respective chosen firms shall agree on another investment banking firm which
shall make the determination. The Company shall retain, at its sole cost, such
investment banking firm as may be necessary for the determination of Appraised
Value required by the terms of this Warrant; PROVIDED, that if the determination
of such Appraised Value by the investment banking firm does not exceed the Board
of Directors' determination of Appraised Value by more than 10%, then the costs
of such investment banking firm shall be borne by the Majority Holders.

15.   LIMITATION OF LIABILITY

      No provision hereof, in the absence of affirmative action by Holder to
purchase shares of Common Stock, and no enumeration herein of the rights or
privileges of Holder hereof, shall give rise to any liability of such Holder for
the purchase price of any Common Stock or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the
Company.

16.   MISCELLANEOUS

      16.1  NONWAIVER. No course of dealing or any delay or failure to exercise
any right hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice Holder's rights, powers or remedies.

      16.2  NOTICE GENERALLY. Any notice, demand, request, consent, approval,
declaration, delivery or other communication hereunder to be made pursuant to
the provisions of this Warrant shall be sufficiently given or made if in writing
and either delivered in person with receipt acknowledged or sent by overnight
courier, addressed as follows:

            (a)   If to any Holder or holder of Warrant Stock, at its last known
      address appearing on the books of the Company maintained for such purpose.

            (b)   If to the Company at

                  Multex.com, Inc.
                  100 William Street
                  New York, New York  10038
                  Telephone: (212) 607-2400
                  Facsimile: (212) 607-2591

<PAGE>

                                                                              22

                  Attention:  Chief Financial Officer

      with a copy to the Company's General Counsel at the same address,

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration, delivery or other communication hereunder shall
be deemed to have been duly given or served on the date on which personally
delivered, with receipt acknowledged, or three Business Days after the same
shall have been deposited in the United States mail. Failure or delay in
delivering copies of any notice, demand, request, approval, declaration,
delivery or other communication to the person designated above to receive a copy
shall in no way adversely affect the effectiveness of such notice, demand,
request, approval, declaration, delivery or other communication.

      16.3  REMEDIES. Any Holder of this Warrant and Warrant Stock, in addition
to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under Section 9
of this Warrant. The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions
of Section 9 of this Warrant and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.

      16.4  SUCCESSORS AND ASSIGNS. Subject to the provisions of Sections 3.1
and 9, this Warrant and the rights evidenced hereby shall inure to the benefit
of and be binding upon the successors of the Company and the successors and
assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant, and shall be
enforceable by any such Holder.

      16.5  AMENDMENT. This Warrant and all other warrants may be modified or
amended or the provisions hereof waived with the written consent of the Company
and the Majority Holders, provided that no such warrant may be modified or
amended to reduce the number of shares of Common Stock for which such warrant is
exercisable or to increase the price at which such shares may be purchased upon
exercise of such warrant (before giving effect to any adjustment as provided
therein) without the prior written consent of the Holder thereof.

      16.6  SEVERABILITY. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Warrant.

<PAGE>

                                                                              23

      16.7  HEADINGS. The headings used in this Warrant are for the convenience
of reference only and shall not, for any purpose, be deemed a part of this
Warrant.

      16.8  GOVERNING LAW. This Warrant shall be governed by the laws of the
State of New York, without regard to the provisions thereof relating to conflict
of laws.

                           [SIGNATURE PAGE(S) FOLLOW]

Date of Original Warrant: January 31, 2000
Date of this Warrant: June 20, 2002

                                            MULTEX.COM, INC.

                                            By:____________________________
                                               Name: Isaak Karaev
                                               Title:   C.E.O.

Attest:

By:_________________________
      Name:
      Title:

<PAGE>

                                                                             A-1

                                    EXHIBIT A

                                SUBSCRIPTION FORM

                 [To be executed only upon exercise of Warrant]

      The undersigned registered owner of this Warrant irrevocably exercises
this Warrant for the purchase of _____ Shares of Common Stock of
________________________ and herewith makes payment therefor, all at the price
and on the terms and conditions specified in this Warrant and requests that
certificates for the shares of Common Stock hereby purchased (and any securities
or other property issuable upon such exercise) be issued in the name of and
delivered to _______________ whose address is ____________________ and, if such
shares of Common Stock shall not include all of the shares of Common Stock
issuable as provided in this Warrant, that a new Warrant of like tenor and date
for the balance of the shares of Common Stock issuable hereunder be delivered to
the undersigned.

                                            -------------------------------
                                            (Name of Registered Owner)

                                            -------------------------------
                                            (Signature of Registered Owner)

                                            -------------------------------
                                            (Street Address)

                                            -------------------------------
                                            (City)   (State)  (Zip Code)

NOTICE:     The signature on this subscription must correspond with the name as
            written upon the face of the within Warrant in every particular,
            without alteration or enlargement or any change whatsoever.

<PAGE>

                                                                             B-1

                                    EXHIBIT B

                                 ASSIGNMENT FORM

      FOR VALUE RECEIVED the undersigned registered owner of this Warrant hereby
sells, assigns and transfers unto the Assignee named below all of the rights of
the undersigned under this Warrant, with respect to the number of shares of
Common Stock set forth below:

NAME AND ADDRESS OF ASSIGNEE                    NUMBER OF SHARES OF COMMON STOCK

and does hereby irrevocably constitute and appoint _____________________
attorney-in-fact to register such transfer on the books of __________________
maintained for the purpose, with full power of substitution in the premises.

Dated:_________________________                  Print Name:___________________

                                                 Signature:____________________

                                                 Witness:______________________

NOTICE:     The signature on this assignment must correspond with the name as
            written upon the face of the within Warrant in every particular,
            without alteration or enlargement or any change whatsoever.

<PAGE>

                                    EXHIBIT B

                           FORM OF ADDENDUM AMENDMENT

                                       B-1

<PAGE>

  AMENDMENT NO. 2 DATED JUNE 20, 2002 TO ADDENDUM NO. 3 TO MASTER AGREEMENT FOR
ELECTRONIC DISTRIBUTION SERVICES DATED DECEMBER 21, 1999, BETWEEN MERRILL LYNCH,
            PIERCE, FENNER & SMITH INCORPORATED AND MULTEX.COM, INC.

      Reference is made to Addendum No. 3 to Master Agreement for Electronic
Distribution Services ("Master Agreement") dated as of December 21, 1999,
between Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and
Multex.com, Inc. ("Multex," formerly known as Multex Systems, Inc.) ("Addn-3").

      This Amendment dated June 20, 2002 is effective as of June 20, 2002 (the
"Effective Date"). Unless defined herein, all terms with initial capitalization
shall have the meanings set forth in Addn-3 and/or the Master Agreement.

      Except as specifically amended by this Amendment, the terms and conditions
of Addn-3 shall remain in full force and effect. In the event of any
inconsistency between the provisions of Addn-3 and this Amendment dated as of
June 20, 2002, the provisions of this Amendment shall prevail with respect to
the specific matter referenced herein.

      WHEREAS, Addn-3 provides for the payment by ML to Multex of an Output
License Fee;

      WHEREAS, ML and Multex wish to amend the payment schedule of the Output
License Fee set forth in Addn-3;

      WHEREAS, ML and Multex are entering into a Purchase and Sale Agreement and
Amended and Restated Warrant  Agreement of even date herewith  pursuant to which
ML is transferring a portion of its Multex common stock to Multex and forfeiting
certain warrants issued by Multex to Merrill; and

      WHEREAS, ML and Multex wish to amend certain provisions of Addn-3 relating
to said warrants;

      NOW,  THEREFORE,  in consideration of the mutual promises contained herein
and set forth in Addn-3, Merrill Lynch and Multex hereby agree as follows:

1.    Effective as of the date hereof, the second sentence of Section 9.5 of
      Addn-3 is hereby deleted and the following shall be substituted in lieu
      thereof: "As consideration for the Output Right, and subject to the terms,
      conditions and limitations herein, ML shall pay Multex a license fee (the
      "OUTPUT LICENSE") at the rate of $1 million per year in each of Years 1
      and 2 and $500,000 in Year 3. The parties hereto agree that there shall be
      no Output License Fee in Years 4 or 5 or for any renewal term of the
      Agreement. Notwithstanding the above, the Output Right granted to ML and
      ML's ability to exercise said Output Right shall remain in effect for the
      Term of the Agreement.

2.    Effective as of the date hereof, the second sentence of Section 20.7 of
      Addn-3 is hereby amended by deleting the words "and ML shall therefore,
      have no obligation to pay the Output License Fee accruing after the

<PAGE>

      termination or expiration of the 1999 Master Agreement" from the end of
      the section and adding a new final sentence, as follows: "For the
      avoidance of doubt, the Output License shall be deemed fully paid up for
      the Term once the final installment of $500,000 due for Year 3 has been
      received by Multex."

3.    Effective as of the date hereof, Section 13 of Addn-3 is hereby deleted.

      IN WITNESS WHEREOF, the parties, Merrill Lynch and Multex, each acting
under due and proper authority, have executed this Amendment dated as of the
Effective Date.

MULTEX.COM, INC.                                MERRILL LYNCH, PIERCE, FENNER
                                                        & SMITH INCORPORATED

By:                                             By:
   ------------------------------                  -----------------------------

Name:                                           Name:   Laurence A. Tosi
     ----------------------------
               Print

Title:                                          Title:  Managing Director
      ---------------------------
               Print

                                       2Exhibit 10.1

[MERRILL LYNCH LOGO]                            TERM LOAN AND SECURITY AGREEMENT
================================================================================

TERM LOAN AND  SECURITY  AGREEMENT  dated as of June 6,  2002,  between  SEL-LEB
MARKETING,  INC., a  corporation  organized  and existing  under the laws of the
State of New York having its principal office at 495 River Street,  Paterson, NJ
07524  ("Customer"),  and MERRILL  LYNCH  BUSINESS  FINANCIAL  SERVICES  INC., a
corporation  organized  and  existing  under the laws of the  State of  Delaware
having its  principal  office at 222 North  LaSalle  Street,  Chicago,  IL 60601
("MLBFS").

In  consideration  of the mutual  covenants of the parties hereto,  Customer and
MLBFS hereby agree as follows:

                             ARTICLE I. DEFINITIONS

1.1  SPECIFIC  TERMS.  In  addition  to terms  defined  elsewhere  in this  Loan
Agreement,  when used  herein  the  following  terms  shall  have the  following
meanings:

"Bankruptcy  Event" shall mean any of the following:  (i) a proceeding under any
bankruptcy,  reorganization,  arrangement,  insolvency,  readjustment  of  debt,
liquidation, winding up or receivership law or statute shall be commenced, filed
or consented to by any Credit Party; or (ii) any such proceeding  shall be filed
against any Credit Party and shall not be  dismissed  or withdrawn  within sixty
(60)  days  after  filing;  or (iii)  any  Credit  Party  shall  make a  general
assignment  for the  benefit  of  creditors;  or (iv)  any  Credit  Party  shall
generally fail to pay or admit in writing its inability to pay its debts as they
become  due;  or (v) any  Credit  Party  shall  be  adjudicated  a  bankrupt  or
insolvent;  or (vi) any Credit  Party shall take  advantage  of any other law or
procedure  for the relief of debtors or shall take any action for the purpose of
or with a view  towards  effecting  any of the  foregoing;  or (vii) a receiver,
trustee, custodian, fiscal agent or similar official for any Credit Party or for
any  substantial  part of any of their  respective  property or assets  shall be
sought by such Credit Party or appointed.

"Business Day" shall mean any day other than a Saturday, Sunday, federal holiday
or other day on which the New York Stock Exchange is regularly closed.

"Business Guarantor" shall mean every Guarantor that is not a natural person.

"Certificate  of  Compliance"  shall mean,  as  applicable,  that duly  executed
certificate,  substantially  the same form as Exhibit B  attached  hereto to the
extent such certificate shall be applicable,  of the president,  chief financial
officer or chief executive officer of Customer, certifying as to the matters set
forth in such certificate.

"Closing Date" shall mean the date upon which all conditions precedent to MLBFS'
obligation to make the Loan shall have been met to the satisfaction of MLBFS.

"Collateral" shall mean all Accounts, Chattel Paper, Contract Rights, Inventory,
Equipment,   Fixtures,   General  Intangibles,   Deposit  Accounts,   Documents,
Instruments,  Investment  Property and Financial  Assets of Customer,  howsoever
arising,  whether now owned or existing or  hereafter  acquired or arising,  and
wherever located;  together with all parts thereof  (including spare parts), all
accessories and accessions  thereto,  all books and records (including  computer
records)  directly related thereto,  all proceeds  thereof  (including,  without
limitation,  proceeds in the form of Accounts and insurance  proceeds),  and the
additional collateral described in Section 3.6 (b) hereof.

"Commitment Expiration Date" shall mean July 6, 2002.

"Commitment  Fee" shall mean a fee of $14,000.00 due to MLBFS in connection with
this Loan Agreement.

"Credit Party" and "Credit  Parties" shall mean,  individually or  collectively,
the Customer, all Guarantors, and all Pledgors.

"Default"  shall mean  either an "Event of  Default"  as defined in Section  3.5
hereof,  or an event which with the giving of notice,  passage of time, or both,
would constitute such an Event of Default.

"Default  Rate" shall mean an annual  interest  rate equal to the lesser of: (i)
two percentage  points over the Interest Rate; or (ii) the highest interest rate
allowed by applicable law.

"Event of Loss" shall mean the  occurrence  whereby any tangible  Collateral  is
damaged beyond repair, lost, totally destroyed or confiscated.

"GAAP" shall mean the generally accepted accounting  principles in effect in the
United States of America from time to time.
<PAGE>

"General Funding Conditions" shall mean each of the following conditions to each
loan or advance  by MLBFS  hereunder:  (i) no Default or Event of Default  shall
have occurred and be continuing or would result from the making of any such loan
or  advance  hereunder  by MLBFS;  (ii)  there  shall not have  occurred  and be
continuing any material adverse change in the business or financial condition of
any Credit Party; (iii) all  representations and warranties of all of the Credit
Parties herein or in any of the Loan Documents shall then be true and correct in
all material  respects;  (iv) MLBFS shall have received this Loan  Agreement and
all of the other Loan  Documents,  duly  executed  and filed or  recorded  where
applicable,  all of which shall be in form and substance  satisfactory to MLBFS;
(v) the  Commitment  Fee shall  have been paid in full;  (vi)  MLBFS  shall have
received,  as and to the extent applicable,  copies of invoices,  bills of sale,
loan payoff letters and/or other evidence  satisfactory  to it that the proceeds
of the Loan will  satisfy the Loan  Purpose;  (vii)  MLBFS  shall have  received
evidence  satisfactory  to it as to the  ownership  of the  Collateral  and  the
perfection and priority of MLBFS' liens and security interests thereon,

<PAGE>

as well as the ownership of and the  perfection and priority of MLBFS' liens and
security  interests  on any  other  collateral  for  the  Obligations  furnished
pursuant to any of the Loan Documents; (viii) MLBFS shall have received evidence
satisfactory  to it of the  insurance  required  hereby  or by  any of the  Loan
Documents;  and (ix) any  additional  conditions  specified  in the  "Term  Loan
Approval" letter executed by MLBFS with respect to the transactions contemplated
hereby shall have been met to the satisfaction of MLBFS.

"Guarantor"  shall mean each Person  obligated under a guaranty,  endorsement or
other undertaking by which such Person  guarantees or assumes  responsibility in
any capacity for the payment or performance of any of the Obligations.

"Loan" shall mean a three-year term  installment  loan in an amount equal to the
lesser of: (A) 100% of the amount required by Customer to satisfy or fulfill the
Loan Purpose,  (B) the aggregate amount which Customer shall request be advanced
by MLBFS on account of the Loan Purpose, or (C) $1,498,808.00.

"Loan  Agreement"  shall mean this agreement as titled in the initial  paragraph
hereof and shall  specifically  include that number to be designated by MLBFS as
the Customer's  "Loan No" in reference to this Loan Agreement,  and which number
and  designation  MLBFS  shall  provide to  Customer  upon the  initial  invoice
generated by MLBFS. At all times thereafter, such numerical loan number shall be
included and be deemed to be a part of the title of this Loan Agreement.

"Loan Documents" shall mean this Loan Agreement,  any indenture, any guaranty of
any  of  the  Obligations   and  all  other  security  and  other   instruments,
assignments, certificates, certifications and agreements of any kind relating to
any of the Obligations, whether obtained, authorized,  authenticated,  executed,
sent or received  concurrently  with or  subsequent to this Loan  Agreement,  or
which  evidence  the  creation,  guaranty  or  collateralization  of  any of the
Obligations  or the granting or perfection of liens or security  interests  upon
any  Collateral  or any other  collateral  for the  Obligations,  including  any
modifications, amendments or restatements of the foregoing.

"Loan Purpose" shall mean the purpose for which the proceeds of the Loan will be
used; to wit: to refinance Customer's  Term Loan No.  911550701, Customer's Term
Loan No. 811551601 and to provide additional working capital.

"Location of Tangible  Collateral"  shall mean the address of Customer set forth
at the  beginning of this Loan  Agreement,  together  with any other  address or
addresses  set  forth on an  exhibit  hereto  as being a  Location  of  Tangible
Collateral.

"Obligations"  shall  mean all  liabilities,  indebtedness  and  obligations  of
Customer to MLBFS, howsoever created, arising or evidenced, whether now existing
or hereafter arising, whether direct or indirect, absolute or contingent, due or
to become due,  primary or secondary or joint or several,  and, without limiting
the  generality of the  foregoing,  shall include  principal,  accrued  interest
(including without limitation interest accruing after the filing of any petition
in  bankruptcy),  all  advances  made by or on  behalf  of MLBFS  under the Loan
Documents,  collection and other costs and expenses  incurred by or on behalf of
MLBFS,  whether  incurred before or after  judgment,  and all present and future
liabilities,  indebtedness  and  obligations of Customer under the Note and this
Loan Agreement.

"Permitted  Liens"  shall  mean with  respect to the  Collateral:  (i) liens for
current taxes not yet due and payable, other non-consensual liens arising in the
ordinary  course of  business  for sums not due,  and,  if MLBFS'  rights to and
interest in the Collateral are not  materially and adversely  affected  thereby,
any such liens for taxes or other  nonconsensual  liens  arising in the ordinary
course of business  being  contested in good faith by  appropriate  proceedings;
(ii) liens in favor of MLBFS;  (iii)  liens  which will be  discharged  with the
proceeds of the initial WCMA Loan,  and (iv) any other liens expressly permitted
in writing by MLBFS.

"Person"  shall  mean  any  natural  person  and  any  corporation,  partnership
(general, limited or otherwise),  limited liability company, trust, association,
joint venture,  governmental  body or agency or other entity having legal status
of any kind.

"Pledgor"  shall  mean  each  Person  who at any time  provides  collateral,  or
otherwise now or hereinafter  agrees to grants MLBFS a security  interest in any
assets as security for Customer's Obligations.

"UCC"  shall  mean the  Uniform  Commercial  Code of  Illinois  as in  effect in
Illinois from time to time.

1.2 OTHER TERMS. Except as otherwise defined herein, all terms used in this Loan
Agreement  which are defined in the UCC shall have the meanings set forth in the
UCC;  and (iii)  accounting  terms not  defined  herein  shall have the  meaning
ascribed to them in GAAP.

1.3 UCC FILING. Customer hereby authorizes MLBFS to file a record or records (as
defined or otherwise  specified under the UCC),  including,  without limitation,
financing statements,  in all jurisdictions and with all filing offices as MLBFS
may determine, in its sole discretion, are necessary or advisable to perfect the
security  interest  granted  to MLBFS  herein.  Such  financing  statements  may
describe the Collateral in the same manner as described herein or may contain an
indication or  description  of collateral  that  describes  such property in any
other  manner as MLBFS may  determine,  in its sole  discretion,  is  necessary,
advisable or prudent to ensure the  perfection  of the security  interest in the
Collateral granted to the MLBFS herein.

<PAGE>

                              ARTICLE II. THE LOAN

2.1 COMMITMENT.  Subject to the terms and conditions hereof, MLBFS hereby agrees
to make the Loan to Customer for the Loan Purpose, and Customer agrees to borrow
all amounts borrowed to satisfy the Loan Purpose from MLBFS. The entire proceeds
of the Loan shall be  disbursed  on the  Closing  Date  either  directly  to the
applicable third party or parties on account of the Loan Purpose or to reimburse
Customer for amounts  directly  expended by it; all as directed by Customer in a
Closing  Certificate  to be executed by Customer and delivered to MLBFS prior to
the Closing Date.

2.2 NOTE.  The Loan will be evidenced by and repayable in  accordance  with that
certain  Collateral  Installment  Note made by Customer  payable to the order of
MLBFS and issued  pursuant  to this Loan  Agreement  (the  "Note").  The Note is
hereby incorporated as a part hereof as if fully set forth herein.

                                      -2-

<PAGE>

2.3 CONDITIONS OF MLBFS'  OBLIGATION.  The Closing Date and MLBFS' obligation to
make the Loan on the Closing Date are subject to the prior  fulfillment  of each
of the following  conditions:  (a) MLBFS shall have  received a written  request
from  Customer  that the Loan be funded  in  accordance  with the terms  hereof,
together with a written  direction from Customer as to the method of payment and
payee(s) of the proceeds of the Loan,  which  request and  direction  shall have
been  received by MLBFS not less than two Business  Days prior to any  requested
funding date;  (b) MLBFS shall have received a copy of invoices,  bills of sale,
payoff letters or other applicable evidence  reasonably  satisfactory to it that
the  proceeds  of the Loan will  satisfy or fulfill  the Loan  Purpose;  (c) the
Commitment  Expiration  Date shall not then have  occurred;  and (d) each of the
General  Funding  Conditions  shall  then  have  been  met or  satisfied  to the
reasonable satisfaction of MLBFS.

2.4 USE OF LOAN  PROCEEDS.  The  proceeds  of the Loan shall be used by Customer
solely for a Loan  Purpose,  or, with the prior  written  consent of MLBFS,  for
other lawful  business  purposes of Customer  not  prohibited  hereby.  CUSTOMER
AGREES THAT UNDER NO  CIRCUMSTANCES  WILL THE PROCEEDS OF THE LOAN BE USED:  (A)
FOR PERSONAL,  FAMILY OR HOUSEHOLD PURPOSES OF ANY PERSON WHATSOEVER,  OR (B) TO
PURCHASE,  CARRY OR TRADE IN  SECURITIES,  OR REPAY DEBT  INCURRED TO  PURCHASE,
CARRY OR TRADE IN SECURITIES, OR (C) UNLESS OTHERWISE CONSENTED TO IN WRITING BY
MLBFS,  TO  PAY  ANY  AMOUNT  TO  MERRILL  LYNCH  AND  CO.,  INC.  OR ANY OF ITS
SUBSIDIARIES,  OTHER THAN MERRILL LYNCH BANK USA, MERRILL LYNCH BANK & TRUST CO.
OR ANY  SUBSIDIARY OF EITHER OF THEM  (INCLUDING  MLBFS AND MERRILL LYNCH CREDIT
CORPORATION).

2.5  COMMITMENT  FEE. In  consideration  of the agreement by MLBFS to extend the
Loan to Customer in accordance  with and subject to the terms  hereof,  Customer
has paid or shall,  on or before the Closing  Date pay,  the  Commitment  Fee to
MLBFS.  Customer  acknowledges and agrees that the Commitment Fee has been fully
earned by MLBFS, and that it will not under any circumstances be refundable.

                        ARTICLE III. GENERAL PROVISIONS

3.1 REPRESENTATIONS AND WARRANTIES

Customer represents and warrants to MLBFS that:

(a)  ORGANIZATION AND EXISTENCE.  Customer is a corporation,  duly organized and
validly existing in good standing under the laws of the State of New York and is
qualified  to do  business  and in good  standing  in each other state where the
nature of its  business  or the  property  owned by it make  such  qualification
necessary;  and, where  applicable,  each Business  Guarantor is duly organized,
validly  existing  and in good  standing  under  the  laws of the  state  of its
formation  and is qualified  to do business  and in good  standing in each other
state  where the nature of its  business or the  property  owned by it make such
qualification necessary.

(b)  EXECUTION,  DELIVERY AND  PERFORMANCE.  Each Credit Party has the requisite
power and authority to enter into and perform the Loan  Documents,  The Customer
holds all  necessary  permits,  licenses,  certificates  of occupancy  and other
governmental  authorizations  and approvals  required in order to own or operate
the Customer's business. The execution,  delivery and performance by Customer of
this Loan Agreement and by each of the other Credit Parties of such of the other
Loan  Documents  to which it is a party:  (i) have been duly  authorized  by all
requisite  action,  (ii) do not and will not violate or  conflict  with any law,
order or other governmental requirement,  or any of the agreements,  instruments
or documents which formed or govern any of the Credit Parties,  and (iii) do not
and will not breach or violate any of the  provisions of, and will not result in
a default by any of the Credit Parties under, any other agreement, instrument or
document to which it is a party or is subject.

(c) NOTICES AND APPROVALS.  Except as may have been given or obtained, no notice
to or consent or approval of any  governmental  body or authority or other third
party whatsoever (including, without limitation, any other creditor) is required
in connection with the execution, delivery or performance by any Credit Party of
such of this Loan  Agreement,  the Note and the other Loan Documents to which it
is a party.

(d) ENFORCEABILITY.  The Loan Documents to which any Credit Party is a party are
the  respective  legal,  valid and binding  obligations  of such  Credit  Party,
enforceable  against it or them,  as the case may be, in  accordance  with their
respective  terms,  except as  enforceability  may be limited by bankruptcy  and
other  similar laws  affecting  the rights of creditors  generally or by general
principles of equity.

(e)  COLLATERAL.  Except for  priorities  afforded to any Permitted  Liens:  (i)
Customer  has good and  marketable  title to the  Collateral,  (ii)  none of the
Collateral is subject to any lien,  encumbrance or security interest,  and (iii)
upon  the  filing  of  all  Uniform   Commercial   Code   financing   statements
authenticated or otherwise authorized by Customer with respect to the Collateral
in the  appropriate  jurisdiction(s)  and/or the  completion of any other action
required by applicable  law to perfect its liens and security  interests,  MLBFS
will have valid and perfected first liens and security interests upon all of the
Collateral.

<PAGE>

(f)  FINANCIAL  STATEMENTS.  Except as expressly  set forth in Customer's or any
Business Guarantor's financial statements,  all financial statements of Customer
and each Business Guarantor  furnished to MLBFS have been prepared in conformity
with generally accepted accounting  principles,  consistently  applied, are true
and correct in all material respects, and fairly present the financial condition
of it as at such dates and the results of its  operations  for the periods  then
ended (subject, in the case of interim unaudited financial statements, to normal
year-end adjustments);  and since the most recent date covered by such financial
statements,  there has been no  material  adverse  change in any such  financial
condition  or  operation.  All  financial  statements  furnished to MLBFS of any
Guarantor  other than a Business  Guarantor are true and correct in all material
respects and fairly  represent such  Guarantor's  financial  condition as of the
date of such  financial  statements,  and  since  the most  recent  date of such
financial  statements,  there  has  been  no  material  adverse  change  in such
financial condition.

(g)  LITIGATION;   COMPLIANCE   WITH  ALL  LAWS.  No  litigation,   arbitration,
administrative  or governmental  proceedings are pending or, to the knowledge of
Customer,  threatened  against  any Credit  Party,  which  would,  if  adversely
determined,  materially and adversely affect (i) such Credit Party's interest in
the Collateral or the liens and security  interests of MLBFS  hereunder or under
any of the Loan Documents,  or (ii) the financial condition of such Credit Party
or

                                      -3-
<PAGE>

its  continued  operations.  Each Credit Party is in  compliance in all material
respects with all laws,  regulations,  requirements and approvals  applicable to
such Credit Party.

(h) TAX  RETURNS.  All  federal,  state  and  local  tax  returns,  reports  and
statements  required  to be filed by any  Credit  Party have been filed with the
appropriate  governmental  agencies  and all taxes due and payable by any Credit
Party have been timely paid  (except to the extent that any such failure to file
or pay will not  materially  and  adversely  affect  (i)  either  the  liens and
security  interests of MLBFS hereunder or under any of the Loan Documents,  (ii)
the financial condition of any Credit Party, or (iii) its continued operations).

(i) COLLATERAL LOCATION. All of the tangible Collateral is located at a Location
of Tangible Collateral.

(j) NO DEFAULT. No "Default" or "Event of Default" (each as defined in this Loan
Agreement or any of the other Loan Documents) has occurred and is continuing.

(k) NO OUTSIDE  BROKER.  Except for  employees of MLBFS,  MLPF&S or one of their
affiliates,  Customer has not in connection with the  transactions  contemplated
hereby  directly or indirectly  engaged or dealt with, and was not introduced or
referred to MLBFS by, any broker or other loan arranger.

Each of the foregoing  representations and warranties:  (i) has been and will be
relied upon as an inducement  to MLBFS to make the Loan,  and (ii) is continuing
and shall be deemed remade by Customer on the Closing Date.

3.2 FINANCIAL AND OTHER INFORMATION

(a) Customer  shall furnish or cause to be furnished to MLBFS during the term of
this Loan Agreement all of the following:

(i) ANNUAL FINANCIAL STATEMENTS.  Within 120 days after the close of each fiscal
year of Customer,  a copy of the annual audited financial statements of Customer
and  the  annual  audited  financial  statements  of  each  Business  Guarantor,
including,  in each case, in reasonable detail, a balance sheet and statement of
retained  earnings as at the close of such fiscal year and  statements of profit
and loss and cash flow for such fiscal year;

(ii) INTERIM FINANCIAL STATEMENTS. Within 45 days after the close of each fiscal
quarter of Customer,  a copy of the interim financial statements of Customer and
each Business  Guarantor for such fiscal quarter (including in reasonable detail
both a balance  sheet as of the close of such fiscal  period,  and  statement of
profit and loss for the applicable fiscal period);

(iii) A/R  AGINGS.  Within  15 days  after  the  close of each  fiscal  month of
Customer,  a copy of the Accounts Receivable Aging of Customer and each Business
Guarantor as of the end of such fiscal month;

(iv) INVENTORY  REPORTS.  Within 15 days after the close of each fiscal month of
Customer,  a copy of the  Inventory  Report  (as and to the  extent  applicable,
breaking  out  Inventory  by  location,  and  separately  reporting  any work in
process) of Customer  and each  Business  Guarantor as of the end of such fiscal
month; and

(v) OTHER  INFORMATION.  Such other  information  as MLBFS may from time to time
reasonably request relating to Customer, any Credit Party or the Collateral.

(vi) GENERAL AGREEMENTS WITH RESPECT TO FINANCIAL  INFORMATION.  Customer agrees
that except as otherwise  specified  herein or otherwise agreed to in writing by
MLBFS: (i) all annual financial  statements required to be furnished by Customer
to  MLBFS  hereunder  will  be  prepared  by  either  the  current   independent
accountants for Customer or other independent  accountants reasonably acceptable
to MLBFS, and (ii) all other financial  information  required to be furnished by
Customer  to MLBFS  hereunder  will be  certified  as  correct  in all  material
respects by the party who has  prepared  such  information,  and, in the case of
internally  prepared  information  with  respect  to  Customer  or any  Business
Guarantor, certified as correct by their respective chief financial officer.

3.3 OTHER COVENANTS

Customer further agrees during the term of this Loan Agreement that:

(a) FINANCIAL RECORDS;  INSPECTION. Each Credit Party (other than any Individual
Guarantor)  will: (i) maintain at its principal  place of business  complete and
accurate  books and  records,  and maintain  all of its  financial  records in a
manner consistent with the financial  statements  heretofore furnished to MLBFS,
or prepared on such other basis as may be approved in writing by MLBFS; and (ii)
permit MLBFS or its duly authorized representatives,  upon reasonable notice and
at  reasonable  times,  to inspect  its  properties  (both  real and  personal),
operations, books and records.

(b) TAXES.  Each  Credit  Party will pay when due all of its  respective  taxes,
assessments and other governmental charges,  howsoever designated, and all other
liabilities and obligations,  except to the extent that any such failure to file
or pay will not  materially  and adversely  affect either the liens and security
interests of MLBFS hereunder or under any of the Loan  Documents,  the financial
condition of any Credit Party or its continued operations.

<PAGE>

(c) COMPLIANCE  WITH LAWS AND  AGREEMENTS.  No Credit Party will violate (i) any
law, regulation or other governmental requirement,  any judgment or order of any
court or  governmental  agency or authority;  (ii) any agreement,  instrument or
document  which is material to its  operations or to the operation or use of any
Collateral,  in each case as contemplated  by the Loan  Documents;  or (iii) any
agreement,  instrument  or  document  to  which  it is a party or by which it is
bound,  if any such  violation will  materially and adversely  affect either the
liens  and  security  interests  of MLBFS  hereunder  or  under  any of the Loan
Documents, the   financial  condition   of any Credit  Party,  or its  continued
operations.

                                      -4-
<PAGE>

(d) NO USE OF MERRILL  LYNCH NAME.  No Credit Party will  directly or indirectly
publish,  disclose or otherwise use in any advertising or promotional  material,
or press release or interview, the name, logo or any trademark of MLBFS, MLPF&S,
Merrill Lynch and Co., Incorporated or any of their affiliates.

(e)  NOTIFICATION BY CUSTOMER.  Customer shall provide MLBFS with prompt written
notification  of:  (i) any  Default;  (ii) any  material  adverse  change in the
business,  financial  condition or  operations  of any Credit  Party;  (iii) any
information  which  indicates that any financial  statements of any Credit Party
fail in any  material  respect to present  fairly the  financial  condition  and
results of  operations  purported to be presented in such  statements;  (iv) any
threatened or pending  litigation  involving any Credit Party;  (v) any casualty
loss,  attachment,  lien,  judicial  process,  encumbrance or claim affecting or
involving  $25,000 or more of any Collateral;  and (vi) any change in Customer's
outside accountants. Each notification by Customer pursuant hereto shall specify
the  event  or  information  causing  such  notification,  and,  to  the  extent
applicable,  shall specify the steps being taken to rectify or remedy such event
or information.

(f) ENTITY  ORGANIZATION.  Each Credit  Party which is an entity will (i) remain
(A) validly  existing and in good standing in the state of its  organization and
(B)  qualified to do business and in good standing in each other state where the
nature of its  business  or the  property  owned by it make  such  qualification
necessary,   and  (ii)   maintain  all   governmental   permits,   licenses  and
authorizations.  Customer  shall give MLBFS not less than 30 days prior  written
notice of any change in name (including any fictitious  name) or chief executive
office, place of business, or as applicable, the principal residence.

(g) MERGER, CHANGE IN BUSINESS.  Except upon the prior written consent of MLBFS,
Customer  shall not cause or permit any  Credit  Party to: (i) be a party to any
merger  or  consolidation   with,  or  purchase  or  otherwise  acquire  all  or
substantially  all of the assets of, or any material stock,  partnership,  joint
venture or other equity interest in, any Person, or sell,  transfer or lease all
or any  substantial  part of its assets; (ii)  engage in any  material  business
substantially  different  from  its  business  in  effect  as  of  the  date  of
application  by  Customer  for credit from MLBFS,  or cease  operating  any such
material  business;  or (iii)  cause or  permit  any  other  Person to assume or
succeed to any material business or operations of such Credit Party.

(h) BORROWED  DEBT.  Except upon the prior  written  consent of MLBFS,  Customer
shall not directly or indirectly  hereafter incur or permit to exist any debt of
Customer  for  borrowed  money or the lease  under a capital  lease or  deferred
purchase  price of real or personal  property other than: (i) debt to MLBFS (ii)
debt existing as of the date of and reflected on the last  financial  statements
of Customer  submitted to MLBFS prior to the date hereof and not  refinanced  by
MLBFS, and (iii) debt secured by Permitted Liens.

(i) MINIMUM  TANGIBLE NET WORTH.  Customer's  "tangible  net worth" shall at all
times exceed  $8,000,000.00.  For the purposes  hereof,  the term  "tangible net
worth" shall mean Customer's net worth as shown on Customer's  regular financial
statements  prepared in a manner consistent with the terms hereof, but excluding
an  amount  equal  to:  (i)  any  assets  which  are  ordinarily  classified  as
"intangible" in accordance with generally accepted  accounting  principles,  and
(ii) any amounts now or hereafter  directly or  indirectly  owing to Customer by
officers, shareholders or affiliates of Customer.

(j) MINIMUM NET CASH FLOW. The "Net Cash Flow" of Customer as of the end of each
its fiscal years shall not be less than $100,000.00.  "Net Cash Flow" shall mean
the  excess  of (i) the sum of  Customer's  annual  net  after-tax  income,  any
non-recurring expenses, and depreciation and similar non-cash charges, over (ii)
the sum of the current  portion of Customer's  long term debt, any  nonrecurring
income,  and any dividends  and other  distributions  to its owners;  all as set
forth on Customer's  regular annual  financial  statements  prepared in a manner
consistent with the terms hereof.

3.4 COLLATERAL

(a) PLEDGE OF COLLATERAL.  To secure payment and performance of the Obligations,
Customer hereby pledges,  assigns,  transfers and sets over to MLBFS, and grants
to MLBFS first liens and security  interests in and upon all of the  Collateral,
subject only to priorities afforded to Permitted Liens.

(b) LIENS.  Except upon the prior written  consent of MLBFS,  Customer shall not
create or permit to exist any lien,  encumbrance  or security  interest  upon or
with  respect  to any  Collateral  now owned or  hereafter  acquired  other than
Permitted Liens.

(c)  PERFORMANCE OF  OBLIGATIONS.  Customer shall perform all of its obligations
owing on account of or with respect to the Collateral;  it being understood that
nothing herein, and no action or inaction by MLBFS, under this Loan Agreement or
otherwise,  shall be  deemed an  assumption  by MLBFS of any of  Customer's said
obligations.

(d) SALES AND  COLLECTIONS.  Customer  shall not  sell,  transfer  or  otherwise
dispose of any Collateral, except that so long as no Event of Default shall have
occurred and be continuing, Customer may in the ordinary course of its business:
(i) sell any Inventory  normally held by Customer for sale,  (ii) use or consume
any materials and supplies normally held by Customer for use or consumption, and
(iii) collect all of its Accounts.

<PAGE>

(e) ACCOUNT SCHEDULES. Upon the request of MLBFS, which may be made from time to
time,  Customer  shall  deliver to MLBFS,  in addition to the other  information
required  hereunder,  a schedule  identifying,  for each Account and all Chattel
Paper subject to MLBFS'  security  interests  hereunder,  each account debtor by
name and address and amount, invoice or contract number and date of each invoice
or contract.  Customer shall furnish to MLBFS such additional  information  with
respect to the Collateral,  and amounts  received by Customer as proceeds of any
of the Collateral, as MLBFS may from time to time reasonably request.

(f) ALTERATIONS AND MAINTENANCE. Except upon the prior written consent of MLBFS,
Customer  shall not make or permit  any  material  alterations  to any  tangible
Collateral which might materially  reduce or impair its market value or utility.
Customer  shall at all times (i) keep the tangible  Collateral in good condition
and repair,  reasonable  wear and tear  excepted,  (ii)  protect the  Collateral
against  loss,  damage  or  destruction  and  (iii)  pay or cause to be paid all
obligations arising from the repair and maintenance of such Collateral,  as well
as all obligations  with respect to any Location of Tangible  Collateral  (e.g.,
all obligations under any lease, mortgage or bailment agreement), except for any
such  obligations  being  contested  by  Customer  in good faith by  appropriate
proceedings.

(g) LOCATION. Except for movements required in the ordinary course of Customer's
business, Customer shall give MLBFS 30 days' prior written notice of the placing
at or movement of any tangible  Collateral to any location other than a Location
of Tangible Collateral. In no event shall Customer cause or permit

                                      -5-

<PAGE>

any material  tangible  Collateral to be removed from the United States  without
the express  prior  written  consent of MLBFS.  Customer will keep its books and
records at its principal office address specified in the first paragraph of this
Loan Agreement. Customer will not change the address where books and records are
kept, or change its name or taxpayer  identification number. Customer will place
a legend  acceptable  to MLBFS on all Chattel  Paper that is  Collateral  in the
possession or control of Customer from time to time  indicating that MLBFS has a
security interest therein.

(h)  INSURANCE.  Customer  shall insure all of the tangible  Collateral  under a
policy or policies of physical damage insurance for the full  replacement  value
thereof against such perils as MLBFS shall reasonably require and also providing
that losses will be payable to MLBFS as its interests  may appear  pursuant to a
lender's or mortgagee's  long form loss payable  endorsement and containing such
other provisions as may be reasonably required by MLBFS.  Customer shall further
provide  and  maintain a policy or  policies  of  commercial  general  liability
liability  insurance naming MLBFS as an additional  party insured.  Customer and
each Business  Guarantor  shall maintain such other insurance as may be required
by law or is  customarily  maintained  by  companies  in a similar  business  or
otherwise  reasonably  required  by MLBFS.  All such  insurance  policies  shall
provide  that MLBFS will receive not less than 10 days prior  written  notice of
any cancellation,  and shall otherwise be in form and amount and with an insurer
or insurers reasonably  acceptable to MLBFS. Customer shall furnish MLBFS with a
copy or certificate of each such policy or policies and, prior to any expiration
or cancellation, each renewal or replacement thereof.

(i) EVENT OF LOSS.  Customer shall at its expense promptly repair all repairable
damage to any tangible  Collateral.  In the event that there is an Event of Loss
and  the  affected  Collateral  had a  value  prior  to  such  Event  of Loss of
$25,000.00  or more,  then, on or before the first to occur of (i) 90 days after
the occurrence of such Event of Loss, or (ii) 10 Business Days after the date on
which  either  Customer or MLBFS  shall  receive any  proceeds of  insurance  on
account  of  such  Event  of  Loss,  or any  underwriter  of  insurance  on such
Collateral shall advise either Customer or MLBFS that it disclaims  liability in
respect of such Event of Loss,  Customer  shall,  at Customer's  option,  either
replace the Collateral subject to such Event of Loss with comparable  Collateral
free of all liens other than  Permitted  Liens (in which event Customer shall be
entitled to utilize the  proceeds of  insurance on account of such Event of Loss
for such  purpose,  and may retain any excess  proceeds of such  insurance),  or
permanently  prepay the  Obligations by an amount equal to the actual cash value
of such Collateral as determined by either the insurance company's payment (plus
any  applicable  deductible)  or, in absence of insurance  company  payment,  as
reasonably  determined  by  MLBFS;  it being  further  understood  that any such
permanent prepayment shall cause an immediate permanent reduction in the Loan in
the  amount of such  prepayment  and shall not  reduce  the amount of any future
reductions  in the Loan  that may be  required  hereunder.  Notwithstanding  the
foregoing,  if at the  time of  occurrence  of such  Event  of Loss or any  time
thereafter  prior to replacement or line  reduction,  as aforesaid,  an Event of
Default shall have occurred and be continuing  hereunder,  then MLBFS may at its
sole  option,  exercisable  at any time while  such  Event of  Default  shall be
continuing,  require  Customer to either  replace such  Collateral or prepay the
Obligations, as aforesaid.

(j) NOTICE OF CERTAIN EVENTS.  Customer shall give MLBFS immediate notice of any
attachment,  lien, judicial process, encumbrance or claim affecting or involving
$25,000.00 or more of the Collateral.

(k)  INDEMNIFICATION.  Customer shall indemnify,  defend and save MLBFS harmless
from and against any and all claims,  liabilities,  losses,  costs and  expenses
(including, without limitation,  reasonable attorneys' fees and expenses) of any
nature whatsoever which may be asserted against or incurred by MLBFS arising out
of or in any manner occasioned by (i) the ownership, collection, possession, use
or operation of any  Collateral,  or (ii) any failure by Customer to perform any
of its obligations hereunder;  excluding,  however, from said indemnity any such
claims,  liabilities,  etc.  arising directly out of the willful wrongful act or
active gross negligence of MLBFS. This indemnity shall survive the expiration or
termination of this Loan  Agreement as to all matters  arising or accruing prior
to such expiration or termination.

3.5 EVENTS OF DEFAULT

The  occurrence  of any of the  following  events shall  constitute an "Event of
Default" under this Loan Agreement:

(a)  FAILURE TO PAY.  Customer  shall  fail to pay when due any amount  owing by
Customer  to MLBFS under the Note or this Loan  Agreement,  or shall fail to pay
when due any other  Obligations,  and any such failure  shall  continue for more
than five (5) Business Days after written  notice  thereof shall have been given
by MLBFS to Customer.

(b) FAILURE TO PERFORM.  Any Credit Party shall  default in the  performance  or
observance  of any covenant or agreement on its part to be performed or observed
under  this Loan  Agreement,  the Note or any of the other Loan  Documents  (not
constituting  an Event of Default under any other clause of this  Section),  and
such default  shall  continue  unremedied  for ten (10)  Business Days (i) after
written notice thereof shall have been given by MLBFS to Customer,  or (ii) from
Customer's  receipt of any notice or  knowledge  of such  default from any other
source.

(c) BREACH OF WARRANTY.  Any representation or warranty made by any Credit Party
contained in this Loan  Agreement,  the Note or any of the other Loan  Documents
shall at any time prove to have been  incorrect  in any  material  respect  when
made.

<PAGE>

(d)  DEFAULT  UNDER  OTHER ML  AGREEMENT.  A default  or event of default by any
Credit Party shall occur under the terms of any other  agreement,  instrument or
document  with or  intended  for the  benefit  of MLBFS,  MLPF&S or any of their
affiliates,  and any required notice shall have been given and required  passage
of time shall have elapsed,  or the WCMA  Agreement  shall be terminated for any
reason.

(e) BANKRUPTCY EVENT. Any Bankruptcy Event shall occur.

(f)  MATERIAL  IMPAIRMENT.  Any event shall occur which shall  reasonably  cause
MLBFS to in good faith believe that the prospect of full payment or  performance
by the Credit  Parties of any of their  respective  liabilities  or  obligations
under this Loan  Agreement,  the Note or any of the other Loan Documents or such
Guarantor  is a party has been  materially  impaired.  The  existence  of such a
material  impairment shall be determined in a manner  consistent with the intent
of Section 1-208 of the UCC.

                                      -6-
<PAGE>

(g) DEFAULT UNDER OTHER  AGREEMENTS.  Any event shall occur which results in any
default of any material  agreement  involving  any Credit Party or any agreement
evidencing any indebtedness of any Credit Party of $100,000.00 or more.

(h) COLLATERAL IMPAIRMENT. The loss, theft or destruction of any Collateral, the
occurrence of any material  deterioration or impairment of any Collateral or any
material  decline or depreciation in the value or market price thereof  (whether
actual or  reasonably  anticipated),  which causes any  Collateral,  in the sole
opinion of MLBFS,  to become  unsatisfactory  as to value or  character,  or any
levy,  attachment,  seizure  or  confiscation  of the  Collateral  which  is not
released within ten (10) Business Days.

(i) CONTESTED  OBLIGATION.  (i) Any of the Loan  Documents  shall for any reason
cease to be, or are  asserted by any Credit  Party not to be a legal,  valid and
binding  obligations of any Credit Party,  enforceable in accordance  with their
terms;  or (ii) the  validity,  perfection  or priority of MLBFS' first lien and
security  interest on any of the Collateral is contested by any Person; or (iii)
any  Credit  Party  shall or shall  attempt  to  repudiate,  revoke,  contest or
dispute,  in whole or in part,  such Credit Party's  obligations  under any Loan
Document.

(j) JUDGMENTS. A judgment shall be entered against any Credit Party in excess of
S25,000  and the  judgment  is not paid in full and  discharged,  or stayed  and
bonded to the satisfaction of MLBFS.

(k) CHANGE IN  CONTROL/CHANGE  IN  MANAGEMENT.  (i) Any direct or indirect sale,
conveyance,  assignment or other transfer of or grant of a security  interest in
any  ownership  interest  of any Credit  Party which  results,  or if any rights
related  thereto were exercised  would result,  in any change in the identity of
the  individuals or entities  previously in control of any Credit Party; or (ii)
the owner(s) of the controlling  equity interest of any Credit Party on the date
hereof shall cease to own and control such Credit Party; or (iii) the Person (or
a replacement who is  satisfactory  to MLBFS in its sole  discretion) who is the
chief executive officer or holds such similar position, or any senior manager of
such Credit  Party on the date hereof shall for any reason cease to be the chief
executive officer or senior manager of the Customer.

(l) WITHDRAWAL, DEATH, ETC. The incapacity,  death, withdrawal,  dissolution, or
the filing for  dissolution  of: (i) any Credit Party;  or (ii) any  controlling
shareholder, partner, or member of any Credit Party.

3.6 REMEDIES

(a) REMEDIES UPON DEFAULT. Upon the occurrence and during the continuance of any
Event of Default,  MLBFS may at its sole option do any one or more or all of the
following,  at such time and in such  order as MLBFS may in its sole  discretion
choose:

(i) TERMINATION. MLBFS may without notice terminate its obligation to extend any
credit to or for the benefit of Customer  (it being  understood.  however,  that
upon  the  occurrence  of  any  Bankruptcy  Event  all  such  obligations  shall
automatically terminate without any action on the part of MLBFS).

(ii)  ACCELERATION.  MLBFS may declare the  principal  of and  interest  and any
premium on the Note, and all other  Obligations to be forthwith due and payable,
whereupon  all  such  amounts  shall be  immediately  due and  payable,  without
presentment,  demand  for  payment,  protest  and notice of  protest,  notice of
dishonor, notice of acceleration, notice of intent to accelerate or other notice
or formality of any kind, all of which are hereby  expressly  waived;  provided,
however,  that upon the occurrence of any Bankruptcy  Event all such  principal,
interest,  premium  and other  Obligations  shall  automatically  become due and
payable without any action on the part of MLBFS.

(iii) EXERCISE OTHER RIGHTS.  MLBFS may exercise any or all of the remedies of a
secured party under applicable law and in equity, including, but not limited to,
the  UCC,  and any or all of its  other  rights  and  remedies  under  the  Loan
Documents.

(iv)  POSSESSION.  MLBFS may  require  Customer to make the  Collateral  and the
records pertaining to the Collateral available to MLBFS at a place designated by
MLBFS which is reasonably  convenient to Customer, or may take possession of the
Collateral and the records  pertaining to the Collateral  without the use of any
judicial process and without any prior notice to Customer.

(v) SALE.  MLBFS may sell any or all of the Collateral at public or private sale
upon such terms and conditions as MLBFS may reasonably deem proper,  whether for
cash, on credit, or for future delivery,  in bulk or in lots. MLBFS may purchase
any Collateral at any such sale free of Customers' right of redemption,  if any,
which Customer  expressly waives to the extent not prohibited by applicable law.
The net  proceeds  of any such  public or  private  sale and all  other  amounts
actually  collected or received by MLBFS pursuant  hereto,  after  deducting all
costs and expenses incurred at any time in the collection of the Obligations and
in the protection, collection and sale of the Collateral, will be applied to the
payment of the  Obligations,  with any  remaining  proceeds  paid to Customer or
whoever  else may be entitled  thereto,  and with  Customer  and each  Guarantor
remaining  jointly and severally  liable for any amount  remaining  unpaid after
such application.

(vi) DELIVERY OF CASH, CHECKS, ETC. MLBFS may require Customer to forthwith upon
receipt,  transmit and deliver to MLBFS in the form received,  all cash, checks,
drafts and other instruments for the payment of money (properly endorsed,  where
required, so that such items may be collected by MLBFS) which may be received by
Customer at any time in full or partial payment of any  Collateral,  and require
that  Customer not commingle any such items which may be so received by Customer
with any other of its funds or property but instead hold them separate and apart
and in trust for MLBFS until delivery is made to MLBFS.

<PAGE>

(vii) NOTIFICATION OF ACCOUNT DEBTORS.  MLBFS may notify any account debtor that
its Account or Chattel  Paper has been assigned to MLBFS and direct such account
debtor to make payment directly to MLBFS of all amounts due or becoming due with
respect to such  Account or Chattel  Paper;  and MLBFS may  enforce  payment and
collect, by legal proceedings or otherwise, such Account or Chattel Paper.

                                      -7-

<PAGE>

(viii)  CONTROL OF  COLLATERAL.  MLBFS may otherwise  take control in any lawful
manner of any cash or non-cash items of payment or proceeds of Collateral and of
any  rejected,  returned,  stopped  in  transit  or  repossessed  goods  in  the
Collateral and endorse  Customer's name on any item of payment on or proceeds of
the Collateral.

(b) SET-OFF.  MLBFS shall have the further right upon the  occurrence and during
the continuance of an Event of Default to set-off,  appropriate and apply toward
payment of any of the  Obligations,  in such order of  application  as MLBFS may
from time to time and at any time elect, any cash, credit,  deposits,  accounts,
financial  assets,  investment  property,  securities  and any other property of
Customer  which is in  transit  to or in the  possession,  custody or control of
MLBFS,  MLPF&S or any agent,  bailee, or affiliate of MLBFS or MLPF&S.  Customer
hereby  collaterally  assigns and grants to MLBFS a continuing security interest
in  all  such  property  as  Collateral  and  as  additional  security  for  the
Obligations.  Upon the  occurrence  and  during the  continuance  of an Event of
Default,  MLBFS shall have all rights in such  property  available to collateral
assignees and secured  parties under all  applicable  laws,  including,  without
limitation, the UCC.

(c) POWER OF ATTORNEY.  Effective upon the occurrence and during the continuance
of an  Event of  Default,  Customer  hereby  irrevocably  appoints  MLBFS as its
attorney-in-fact, with full power of substitution, in its place and stead and in
its name or in the name of MLBFS, to from time to time in MLBFS' sole discretion
take any action and to execute any instrument  which MLBFS may deem necessary or
advisable to accomplish  the purposes of this Loan  Agreement and the other Loan
Documents,  including,  but not limited to, to receive,  endorse and collect all
checks,  drafts and other  instruments  for the payment of money made payable to
Customer included in the Collateral.  The powers of attorney granted to MLBFS in
this Loan Agreement are coupled with an interest and are  irrevocable  until the
Obligations  have been  indefeasibly  paid in full and fully  satisfied  and all
obligations of MLBFS under this Loan Agreement have been terminated.

(d)  REMEDIES ARE  SEVERABLE  AND  CUMULATIVE.  All rights and remedies of MLBFS
herein are  severable  and  cumulative  and in addition to all other  rights and
remedies  available in the Note, the other Loan Documents,  at law or in equity,
and any one or more of such rights and remedies may be exercised  simultaneously
or successively.

(e) NO MARSHALLING.  MLBFS shall be under no duty or obligation to (i) preserve,
protect or marshall the  Collateral;  (ii) preserve or protect the rights of any
Credit Party or any other Person claiming an interest in the  Collateral;  (iii)
realize  upon the  Collateral  in any  particular  order or  manner,  (iv)  seek
repayment of any  Obligations  from any  particular  source;  (v) proceed or not
proceed against any Credit Party pursuant to any guaranty or security  agreement
or against  any Credit  Party  under the Loan  Documents,  with or without  also
realizing on the Collateral;  (vi) permit any substitution or exchange of all or
any part of the Collateral; or (vii) release any part of the Collateral from the
Loan  Agreement  or  any  of the  other  Loan  Documents,  whether  or not  such
substitution or release would leave MLBFS adequately secured.

(f) NOTICES.  To the fullest extent permitted by applicable law, Customer hereby
irrevocably  waives and releases MLBFS of and from any and all  liabilities  and
penalties for failure of MLBFS to comply with any statutory or other requirement
imposed upon MLBFS relating to notices of sale,  holding of sale or reporting of
any sale, and Customer waives all rights of redemption or reinstatement from any
such sale.  Any notices  required  under  applicable law shall be reasonably and
properly  given to Customer if given by any of the  methods  provided  herein at
least 5 Business  Days  prior to taking  action.  MLBFS  shall have the right to
postpone  or adjourn any sale or other  disposition  of  Collateral  at any time
without  giving  notice of any such  postponed or adjourned  date.  In the event
MLBFS seeks to take possession of any or all of the Collateral by court process,
Customer further  irrevocably  waives to the fullest extent permitted by law any
bonds and any surety or security relating thereto required by any statute, court
rule or  otherwise  as an  incident  to such  possession,  and  any  demand  for
possession prior to the commencement of any suit or action.

3.7 MISCELLANEOUS

(a)  NON-WAIVER.  No  failure  or delay on the part of MLBFS in  exercising  any
right,  power or remedy pursuant to this Loan Agreement,  the Note or any of the
other Loan Documents shall operate as a waiver thereof, and no single or partial
exercise of any such right,  power or remedy shall preclude any other or further
exercise thereof,  or the exercise of any other right, power or remedy.  Neither
any waiver of any provision of this Loan Agreement, the Note or any of the other
Loan Documents, nor any consent to any departure by Customer therefrom, shall be
effective unless the same shall be in writing and signed by MLBFS. Any waiver of
any  provision  of  this  Loan  Agreement,  the  Note or any of the  other  Loan
Documents  and any consent to any  departure by Customer  from the terms of this
Loan  Agreement,  the Note or any of the other Loan Documents shall be effective
only in the  specific  instance  and for the  specific  purpose for which given.
Except  as  otherwise  expressly  provided  herein,  no  notice  to or demand on
Customer  shall in any case entitle  Customer to any other or further  notice or
demand in similar or other circumstances.

(b) DISCLOSURE.  Customer hereby  irrevocably  authorizes  MLBFS and each of its
affiliates,  including without limitation MLPF&S, to at any time (whether or not
an Event of Default shall have occurred)  obtain from and disclose to each other
any and all financial and other  information  about Customer.  Customer  further
irrevocably  authorizes  MLBFS  to  contact,  investigate,  inquire  and  obtain
consumer  reports,  references  and other  information on Customer from consumer
reporting  agencies  and other  credit  reporting  services,  former or  current
creditors,  and other persons and sources (including,  without  limitation,  any
Affiliate  of  MLBFS)  and to  provide  to any  references,  consumer  reporting
agencies,  credit  reporting  services,  creditors and other persons and sources
(including,  without limitation,  Affiliates of MLBFS) all financial, credit and
other information obtained by MLBFS relating to the Customer.

<PAGE>

(c) COMMUNICATIONS.  Delivery of an agreement, instrument or other document may,
at the discretion of MLBFS, be by electronic transmission. Except as required by
law or  otherwise  provided  herein or in a writing  executed by the party to be
bound,  all  notices,  demands,  requests,  accountings,  listings,  statements,
advices or other communications to be given under the Loan Documents shall be in
writing,  and shall be served  either  personally,  by deposit  with a reputable
overnight courier with charges prepaid,  or by deposit in the United States mail
by certified mail return receipt required.  Notices may be addressed to Customer
as set forth at its address  shown in the preamble  hereto,  or to any office to
which billing or account  statements  are sent; to MLBFS at its address shown in
the preamble  hereto,  or at such other address  designated in writing by MLBFS.
Any such  communication  shall be deemed to have been given upon, in the case of
personal  delivery the date of delivery,  one Business Day after deposit with an
overnight courier, two (2) Business Days after

                                      -8-
<PAGE>

deposit in the United States by certified  mail (return  receipt  required),  or
receipt of  electronic  transmission  (which shall be presumed to be three hours
after  the time of  transmission  unless an error  message  is  received  by the
sender),  except  that any  notice of change of address  shall not be  effective
until actually received.

(d) FEES, EXPENSES AND TAXES.  Customer shall upon demand pay or reimburse MLBFS
for: (i) all UCC, real  property or other filing,  recording and search fees and
expenses  incurred by MLBFS in connection with the  verification,  perfection or
preservation  of  MLBFS'  rights  hereunder  or in any  Collateral  or any other
collateral  for the  Obligations;  (ii) any and all stamp,  transfer,  mortgage,
intangible,  document,  filing,  recording  and other taxes and fees  payable or
determined  to be payable in  connection  with the  borrowings  hereunder or the
execution, delivery, filing and/or recording of the Loan Documents and any other
instruments  or  documents  provided  for herein or delivered or to be delivered
hereunder  or  in  connection  herewith;  and  (iii)  all  reasonable  fees  and
out-of-pocket expenses (including reasonable attorneys' fees and legal expenses)
incurred by MLBFS in connection with the preparation, execution, administration,
collection, enforcement, protection, waiver or amendment of this Loan Agreement,
or  under  any of the  other  Loan  Documents  and  such  other  instruments  or
documents, and the rights and remedies of MLBFS thereunder and all other matters
in connection therewith.  The obligations of Customer under this paragraph shall
survive the  expiration or  termination of this Loan Agreement and the discharge
of the other Obligations.

(e) RIGHT TO PERFORM OBLIGATIONS.  If Customer shall fail to do any act or thing
which it has  covenanted  to do under  this  Loan  Agreement  or any of the Loan
Documents,  or any  representation or warranty on the part of Customer contained
in this Loan  Agreement or any of the Loan  Documents  shall be breached,  MLBFS
may, in its sole  discretion,  after 5 Business  Days written  notice is sent to
Customer (or such lesser notice, including no notice, as is reasonable under the
circumstances),  do the same or cause it to be done or remedy  any such  breach,
and may expend its funds for such  purpose.  Any and all  reasonable  amounts so
expended by MLBFS shall be  repayable  to MLBFS by Customer  upon  demand,  with
interest at the "Interest Rate" (as that item is defined in the Note) during the
period from and including the date funds are so expended by MLBFS to the date of
repayment, and all such amounts shall be additional Obligations.  The payment or
performance  by MLBFS  of any of  Customer's  obligations  hereunder  shall  not
relieve  Customer of said obligations or of the consequences of having failed to
pay or perform the same, and shall not waive or be deemed a cure of any Default.

(f) LATE CHARGE.  Any payment  required to be made by Customer  pursuant to this
Loan Agreement or any of the Loan Documents not paid within ten (10) days of the
applicable  due date shall be subject to a late charge in an amount equal to the
lesser of: (i) 5% of the overdue amount, or (ii) the maximum amount permitted by
applicable law. Such late charge shall be payable on demand.

(g) FURTHER  ASSURANCES.  Customer agrees to do such further acts and things and
to execute  and deliver to MLBFS such  additional  agreements,  instruments  and
documents as MLBFS may  reasonably  require or deem  advisable to effectuate the
purposes of this Loan Agreement, the Note or any of the other Loan Documents, or
to establish,  perfect and maintain MLBFS' security interests and liens upon the
Collateral, including, but not limited to: (i) executing financing statements or
amendments thereto when and as reasonably requested by MLBFS; and (ii) if in the
reasonable  judgment of MLBFS it is  required  by local law,  causing the owners
and/or mortgagees of the real property on which any Collateral may be located to
execute and deliver to MLBFS waivers or subordinations  reasonably  satisfactory
to MLBFS with respect to any rights in such Collateral.

(h) BINDING EFFECT.  This Loan Agreement,  the Note and the other Loan Documents
shall be binding  upon,  and shall inure to the benefit of MLBFS,  Customer  and
their respective  successors and assigns.  MLBFS reserves the right, at any time
while  the  Obligations  remain  outstanding,  to  sell,  assign,  syndicate  or
otherwise transfer or dispose of any or all of MLBFS' rights and interests under
the Loan  Documents.  MLBFS also reserves the right at any time to pool the Loan
with one or more other loans  originated  by MLBFS or any other  Person,  and to
securitize  or offer  interests  in such pool on whatever  terms and  conditions
MLBFS shall determine.  Customer consents to MLBFS releasing financial and other
information  regarding Credit Parties, the Collateral and the Loan in connection
with any such sale,  pooling,  securitization or other offering.  Customer shall
not assign any of its rights or delegate any of its obligations  under this Loan
Agreement, the Note or any of the other Loan Documents without the prior written
consent of MLBFS.  Unless  otherwise  expressly agreed to in a writing signed by
MLBFS,  no such  consent  shall  in any  event  relieve  Customer  of any of its
obligations  under  this  Loan  Agreement,  the  Note or any of the  other  Loan
Documents.

(i)  INTERPRETATION;  CONSTRUCTION.  (i)  Captions  and  section  and  paragraph
headings in this Loan  Agreement are inserted  only as a matter of  convenience,
and shall not affect the interpretation  hereof;  (ii) no provision of this Loan
Agreement shall be construed  against a particular Person or in favor of another
Person  merely  because  of which  Person  (or its  representative)  drafted  or
supplied the wording for such provision;  and (iii) where the context  requires:
(a) use of the singular or plural  incorporates  the other, and (b) pronouns and
modifiers in the  masculine,  feminine or neuter gender shall be deemed to refer
to or include the other genders.

(j) GOVERNING LAW. This Loan Agreement, the Note and, unless otherwise expressly
provided  therein,  each of the other Loan  Documents,  shall be governed in all
respects by the laws of the State of Illinois, not including its conflict of law
provisions.

<PAGE>

(k) SEVERABILITY OF PROVISIONS.  Whenever possible,  each provision of this Loan
Agreement,  the Note and the other Loan  Documents  shall be interpreted in such
manner as to be effective and valid under  applicable law. Any provision of this
Loan Agreement,  the Note or any of the other Loan Documents which is prohibited
or  unenforceable  in  any  jurisdiction  shall,  as to  such  jurisdiction,  be
ineffective only to the extent of such prohibition or  unenforceability  without
invalidating the remaining  provisions of this Loan Agreement,  the Note and the
other Loan  Documents  or  affecting  the  validity  or  enforceability  of such
provision in any other jurisdiction.

(l) TERM. This Loan Agreement  shall become  effective when accepted by MLBFS at
its office in Chicago, Illinois, and subject to the terms hereof, shall continue
in effect so long  thereafter  as there shall be any moneys  owing  hereunder or
under the Note, or there shall be any other  Obligations  outstanding.  Customer
hereby waives notice of acceptance of this Loan Agreement by MLBFS.

(m) EXHIBITS.  The exhibits to this Loan Agreement are hereby  incorporated  and
made a part hereof and are an integral part of this Loan Agreement.

                                      -9-
<PAGE>

(n)  COUNTERPARTS.   This  Loan  Agreement  may  be  executed  in  one  or  more
counterparts which, when taken together, constitute one and the same agreement.

(o)  JURISDICTION;  WAIVER.  CUSTOMER  ACKNOWLEDGES  THAT THIS LOAN AGREEMENT IS
BEING ACCEPTED BY MLBFS IN PARTIAL  CONSIDERATION OF MLBFS' RIGHT AND OPTION, IN
ITS SOLE  DISCRETION,  TO  ENFORCE  THE LOAN  DOCUMENTS  IN EITHER  THE STATE OF
ILLINOIS OR IN ANY OTHER  JURISDICTION  WHERE  CUSTOMER OR ANY COLLATERAL MAY BE
LOCATED.  CUSTOMER  IRREVOCABLY  SUBMITS ITSELF TO  JURISDICTION IN THE STATE OF
ILLINOIS AND VENUE IN ANY STATE OR FEDERAL  COURT IN THE COUNTY OF COOK FOR SUCH
PURPOSES,  AND CUSTOMER  WAIVES ANY AND ALL RIGHTS TO CONTEST SAID  JURISDICTION
AND VENUE  AND THE  CONVENIENCE  OF ANY SUCH  FORUM,  AND ANY AND ALL  RIGHTS TO
REMOVE SUCH  ACTION FROM STATE TO FEDERAL  COURT.  CUSTOMER  FURTHER  WAIVES ANY
RIGHTS TO COMMENCE ANY ACTION  AGAINST MLBFS IN ANY  JURISDICTION  EXCEPT IN THE
COUNTY OF COOK AND STATE OF ILLINOIS.  CUSTOMER  AGREES THAT ALL SUCH SERVICE OF
PROCESS SHALL BE MADE BY MAIL OR MESSENGER  DIRECTED TO IT IN THE SAME MANNER AS
PROVIDED FOR NOTICES TO CUSTOMER IN THIS LOAN AGREEMENT AND THAT SERVICE SO MADE
SHALL BE DEEMED TO BE COMPLETED  UPON THE EARLIER OF ACTUAL RECEIPT OR THREE (3)
DAYS AFTER THE SAME SHALL HAVE BEEN  POSTED TO  CUSTOMER  OR  CUSTOMER'S  AGENT.
NOTHING  CONTAINED HEREIN SHALL AFFECT THE RIGHT OF MLBFS TO SERVE LEGAL PROCESS
IN ANY OTHER  MANNER  PERMITTED BY LAW OR AFFECT THE RIGHT OF MLBFS TO BRING ANY
ACTION OR PROCEEDING AGAINST CUSTOMER OR ITS PROPERTY IN THE COURTS OF ANY OTHER
JURISDICTION.  CUSTOMER  WAIVES,  TO THE EXTENT  PERMITTED  BY LAW,  ANY BOND OR
SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER,  BE REQUIRED
OF  MLBFS.  CUSTOMER  FURTHER  WAIVES  THE  RIGHT  TO BRING  ANY  NON-COMPULSORY
COUNTERCLAIMS.

(p) JURY WAIVER.  MLBFS AND  CUSTOMER  HEREBY EACH  EXPRESSLY  WAIVE ANY AND ALL
RIGHTS TO A TRIAL BY JURY IN ANY ACTION,  PROCEEDING OR COUNTERCLAIM  BROUGHT BY
EITHER OF THE  PARTIES  AGAINST  THE OTHER  PARTY  WITH  RESPECT  TO ANY  MATTER
RELATING  TO,  ARISING  OUT  OF OR IN ANY  WAY  CONNECTED  WITH  THE  LOAN,  THE
OBLIGATIONS,  THIS LOAN AGREEMENT ANY OF THE OTHER LOAN DOCUMENTS  AND/OR ANY OF
THE TRANSACTIONS WHICH ARE THE SUBJECT MATTER OF THIS LOAN AGREEMENT.

(q)  INTEGRATION.  THIS LOAN AGREEMENT  TOGETHER WITH THE OTHER LOAN  DOCUMENTS,
CONSTITUTES THE ENTIRE UNDERSTANDING AND REPRESENTS THE FULL AND FINAL AGREEMENT
BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT  MATTER  HEREOF,  AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR WRITTEN  AGREEMENTS OR PRIOR,  CONTEMPORANEOUS
OR  SUBSEQUENT  ORAL  AGREEMENTS  OF THE PARTIES.  THERE ARE NO  UNWRITTEN  ORAL
AGREEMENTS OF THE PARTIES. WITHOUT LIMITING THE FOREGOING, CUSTOMER ACKNOWLEDGES
THAT: (i) NO PROMISE OR COMMITMENT HAS BEEN MADE TO IT BY MLBFS,  MLPF&S, OR ANY
OF THEIR RESPECTIVE EMPLOYEES, AGENTS OR REPRESENTATIVES TO MAKE ANY LOAN ON ANY
TERMS OTHER THAN AS  EXPRESSLY  SET FORTH  HEREIN,  OR TO MAKE ANY OTHER LOAN OR
OTHERWISE  EXTEND ANY OTHER  CREDIT TO  CUSTOMER  OR ANY OTHER  PARTY;  AND (ii)
EXCEPT AS OTHERWISE  EXPRESSLY PROVIDED HEREIN,  THIS LOAN AGREEMENT  SUPERSEDES
AND  REPLACES  ANY AND  ALL  PROPOSALS,  LETTERS  OF  INTENT  AND  APPROVAL  AND
COMMITMENT  LETTERS FROM MLBFS TO CUSTOMER,  NONE OF WHICH SHALL BE CONSIDERED A
LOAN  DOCUMENT.  NO AMENDMENT OR  MODIFICATION  OF ANY OF THE LOAN  DOCUMENTS TO
WHICH CUSTOMER IS A PARTY SHALL BE EFFECTIVE  UNLESS IN A WRITING SIGNED BY BOTH
MLBFS AND CUSTOMER.

(r)  SURVIVAL.  All  representations,   warranties,   agreements  and  covenants
contained in the Loan  Documents  shall  survive the signing and delivery of the
Loan  Documents,  and all of the waivers  made and  indemnification  obligations
undertaken by Customer shall survive the termination,  discharge or cancellation
of the Loan Documents.

(s) CUSTOMER'S ACKNOWLEDGMENTS. The Customer acknowledges that the Customer: (i)
has had ample  opportunity  to consult  with  counsel and such other  parties as
deemed  advisable  prior to signing and  delivering  this Loan Agreement and the
other Loan Documents; (ii) understands the provisions of this Loan Agreement and
the other Loan Documents,  including all waivers  contained  therein;  and (iii)
signs and delivers this Loan Agreement and the other Loan  Documents  freely and
voluntarily, without duress or coercion.

THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS ARE EXECUTED UNDER SEAL AND ARE
INTENDED TO TAKE EFFECT AS SEALED INSTRUMENTS.

IN WITNESS WHEREOF, this Loan Agreement has been executed as of the day and year
first above written.

SEL-LEB MARKETING, INC.

By:  /s/HAL MARKOWITZ
     ---------------------------------------------------------------------------
              Signature (1)                     Signature (2)

     Hal Markowitz
--------------------------------------------------------------------------------
              Printed Name                      Printed Name

     Chairman
--------------------------------------------------------------------------------
              Title                             Title

Accepted at Chicago, Illinois:
MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.

By:  /s/[ILLEGIBLE]
     -----------------------------

                                      -10-

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