Document:

Exhibit 4.3

                                                                  EXECUTION COPY

                        DIAMOND TRIUMPH AUTO GLASS, INC.

                                  $100,000,000

                          9 1/4% SENIOR NOTES DUE 2008

                             NOTE PURCHASE AGREEMENT

                                 MARCH 26, 1998

First Union Capital Markets
BT Alex. Brown Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation
c/o First Union Capital Markets
301 South College Street, TW-10
Charlotte, NC  28288-0606

Ladies and Gentlemen:

                  Diamond Triumph Auto Glass, Inc., a Delaware corporation (the
"Company"), proposes to issue and sell (the "Initial Placement") to First Union
Capital Markets, a division of Wheat First Securities, Inc., BT Alex. Brown
Incorporated and Donaldson, Lufkin & Jenrette Securities Corporation
(collectively, the "Initial Purchasers"), $100,000,000 principal amount of its 9
1/4% Senior Notes Due 2008 (the "Notes"). The Notes are to be issued under an
indenture (the "Indenture") to be dated as of the Closing Date (as defined
below) between the Company and State Street Bank and Trust Company, as trustee
(the "Trustee"). The Initial Placement is to occur concurrently with, and is
conditioned upon, (i) the consummation of a recapitalization of the Company
pursuant to a Second Amended and Restated Stock Purchase and Sale Agreement,
dated as of January 15, 1998 (the "Stock Purchase Agreement") among the Company,
Kenneth Levine and Richard Rutta (together, the "Company Principals"), Green
Equity Investors II, L.P. ("GEI") and certain affiliated entities of the Company
(the "Affiliated Companies"), whereby (a) the Company will declare and pay a
dividend of 3,500 shares of its preferred stock to each of the Company
Principals, (b) the Company Principals shall transfer all of the issued and
outstanding shares of certain of the Affiliated Companies to the Company and in
connection therewith the Company will issue shares of its common stock (the
"Stock Purchase Shares") to the Company Principals, (c) certain of the
Affiliated Companies will be merged with and into the Company, (d) GEI will
purchase (I) 770,000 shares of the Company's common stock, for aggregate
consideration of $15.4 million, and (II) 28,000 shares of the Company's
preferred stock for aggregate consideration of $28.0 million, (e) certain
members of the Company's management will purchase an aggregate of 30,000 shares
of the Company's common stock for aggregate consideration of $600,000, and (f)
the Company will redeem from the Company principals all of the Stock Purchase
Shares and certain other shares of common stock owned by them for cash; each of
the transactions described in clauses (a) through (f) above are collectively

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referred to herein as the "Recapitalization," and (ii) the initial borrowing of
approximately $14.4 million under a credit facility, to be executed on or prior
to the date on which the Notes are issued (the "Bank Facility") among the
Company, the lenders named therein and Bankers Trust Company as Administrative
Agent. This Agreement, the registration rights agreement, to be dated the
Closing Date, between the Initial Purchasers and the Company (the "Registration
Rights Agreement"), the Stock Purchase Agreement, the Notes and the Indenture
are hereinafter collectively referred to as the "Transaction Documents." The
Initial Placement, the offer and resale of the Notes by the Initial Purchasers
in accordance with this Agreement, the Recapitalization and the entering into by
the Company of the Bank Facility and the initial borrowing thereunder are
hereinafter referred to as the "Transactions."

                  The sale of the Notes to the Initial Purchasers will be made
without registration of the Notes under the Securities Act of 1933, as amended
(the "Securities Act"), in reliance upon certain exemptions from the
registration requirements of the Securities Act. You have advised the Company
that you will offer and sell the Notes purchased by you hereunder in accordance
with Section 4 hereof as soon as you deem advisable.

                  In connection with the sale of the Notes, the Company has
prepared a preliminary offering memorandum, dated March 10, 1998 (the
"Preliminary Memorandum"), and a final offering memorandum, dated March 26, 1998
(the "Final Memorandum"). Each of the Preliminary Memorandum and the Final
Memorandum sets forth certain information concerning the Company, the
Transaction Documents and the Transactions. The Company hereby confirms that it
has authorized the use of the Preliminary Memorandum and the Final Memorandum,
and any amendment or supplement thereto, in connection with the offer and sale
of the Notes by the Initial Purchasers. Unless stated to the contrary, all
references herein to the Final Memorandum are to the Final Memorandum at the
Execution Time (as defined below) and are not meant to include any amendment or
supplement, or any information incorporated by reference therein, subsequent to
the Execution Time.

                  As used herein, "Material Adverse Effect" means (i) a material
adverse effect upon the business, operations, properties, assets, condition
(financial or otherwise) or prospects of the Company whether before or after
giving effect to the Transactions or (ii) a material impairment of the ability
of the Company to execute, deliver or perform any of its obligations under, or
the material impairment of the ability of the Trustee and the holders of the
Notes (the "Holders") to enforce any obligations under, any of the Transaction
Documents. Capitalized terms used herein but not defined have the meaning
ascribed to them in the Final Memorandum.

                  1. The Company's Representations and Warranties. The Company
represents and warrants to the Initial Purchasers the following:

                  (a) The Preliminary Memorandum, at the date thereof, did not
         contain any untrue statement of a material fact or omit to state any
         material fact necessary to make the statements therein, in light of the
         circumstances under which they were made, not misleading. The Final
         Memorandum, at the date hereof, does not and at the Closing Date will
         not (and any amendment or supplement thereto, at the date thereof and
         at the Closing Date, will not), contain any untrue statement of a
         material fact or omit to state any material fact necessary to make the
         statements therein, in light of the circumstances under

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         which they were made, not misleading; provided, however, that the
         Company makes no representation or warranty as to any statements made
         in or omissions from the Preliminary Memorandum or the Final Memorandum
         (or any amendment or supplement thereto) in reliance upon and in
         conformity with information relating to any of the Initial Purchasers
         furnished to the Company in writing by or on behalf of any of the
         Initial Purchasers, expressly for use therein.

                  (b) Except as disclosed in the Preliminary Memorandum or the
         Final Memorandum, no holder of securities of the Company will be
         entitled to have such securities registered under any registration
         statement required to be filed by the Company.

                  (c) None of the Company or any of its Affiliates (as defined
         in Rule 501(b) of Regulation D under the Securities Act ("Regulation
         D")), nor any person acting on its or their behalf (other than the
         Initial Purchasers or any of their Affiliates, as to whom the Company
         makes no representation or warranty) has, directly or indirectly:

                           (i) made offers or sales of any security, or
                  solicited offers to buy any security, which is or will be
                  integrated with the sale of the Notes in a manner that would
                  require the registration of the Notes under the Securities
                  Act;

                           (ii) engaged in any form of general solicitation or
                  general advertising (within the meaning of Regulation D) in
                  connection with any offer or sale of the Notes;

                           (iii) taken any action designed to cause or result
                  in, or that has constituted or that might reasonably be
                  expected to constitute, stabilization or manipulation of the
                  price of the Notes;

                           (iv) except as disclosed in the Preliminary
                  Memorandum or the Final Memorandum, paid or agreed to pay to
                  any person any compensation for soliciting another to purchase
                  any of the Notes;

                           (v) engaged in any directed selling efforts (as that
                  term is defined in Regulation S under the Securities Act
                  ("Regulation S")) with respect to the Notes, and each of the
                  Company and its Affiliates and any person acting on its or
                  their behalf (other than the Initial Purchasers or any of
                  their Affiliates, as to whom the Company makes no
                  representation) has complied with the offering restrictions
                  requirement of Regulation S.

                  (d) The Notes satisfy the eligibility requirements of Rule
         144A(d)(3) under the Securities Act.

                  (e) Assuming the accuracy of your representations contained in
         Section 4 hereof and your compliance with your agreements therein set
         forth, it is not necessary in connection with the offer, sale and
         delivery of the Notes in the manner contemplated by this Agreement and
         the Final Memorandum to register the Notes under the Securities Act

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         or to qualify the Indenture under the Trust Indenture Act of 1939, as
         amended (the "Trust Indenture Act").

                  (f) The Company is a corporation duly organized, validly
         existing and in good standing under the laws of its jurisdiction of
         incorporation. The Company has the corporate power and authority to own
         its properties and to carry on its business as now conducted and as
         proposed to be conducted and is duly qualified to do business as a
         foreign corporation and is in good standing under the laws of each
         jurisdiction wherein it owns or leases material properties or conducts
         material business, except where the failure to be so qualified or in
         good standing, individually or in the aggregate, has not had or would
         not have a Material Adverse Effect.

                  (g) All of the outstanding shares of capital stock of the
         Company have been duly authorized and validly issued and are fully paid
         and nonassessable.

                  (h) The Company has the corporate power and requisite
         authority to execute, deliver and carry out the terms and provisions of
         the Transaction Documents.

                  (i) Each of the Transaction Documents and each other document
         or instrument to be delivered by the Company in connection therewith
         has been, or as of the Closing Date will have been, duly authorized by
         all necessary corporate action of the Company; this Agreement has been
         duly executed and delivered by the Company; and each of the other
         Transaction Documents and each other document or instrument to be
         delivered in connection herewith or therewith to be executed and
         delivered by the Company after the date hereof will be duly executed
         and delivered; and this Agreement is, and such other Transaction
         Documents and other documents and instruments to which the Company is a
         party will be, upon their execution and delivery by the Company (and
         assuming due execution by you and the other parties thereto), the
         legal, valid and binding obligation of the Company, enforceable against
         the Company in accordance with their respective terms, except to the
         extent that the enforceability thereof may be limited by applicable
         bankruptcy, insolvency, reorganization, fraudulent conveyance or
         similar laws affecting the enforcement of creditors' rights and
         remedies generally ("Bankruptcy Law") or by general principles of
         equity (regardless of whether such enforceability is considered in a
         proceeding in equity or at law) ("Equity").

                  (j) The execution, delivery and performance by the Company of
         the Transaction Documents and each other document and instrument to be
         executed, delivered or performed by the Company in connection
         therewith; and the consummation of each of the Transactions, do not and
         on the Closing Date will not (i) violate any statute, law, ordinance,
         regulation, rule, order, judgment, writ, injunction or decree of any
         state, commonwealth, nation, territory, possession, province, county,
         parish, township, village, municipality or other jurisdiction (singly,
         "Law," and collectively, the "Laws") applicable to the Company or any
         judgment, order, writ, injunction or decree of any government, any
         arbitration panel, any court or any governmental department,
         commission, board, bureau, agency, authority or instrumentality of any
         state, commonwealth, nation, territory, possession, province, county,
         parish, town, township, village, municipality or other jurisdiction,
         whether now or hereafter constituted and/or

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         existing ("Tribunal") binding on the Company, except, other than with
         respect to the Initial Placement and the offer and resale of the Notes
         by the Initial Purchasers pursuant to this Agreement, for such
         violations that individually or in the aggregate would not have a
         Material Adverse Effect (ii) conflict with, result in a breach or
         violation of or constitute a default under the certificate of
         incorporation or bylaws of the Company or any indenture, mortgage, deed
         of trust, loan agreement, lease or other agreement or instrument to
         which the Company is a party or by which the Company or any of its
         properties are bound ("Contracts"), except, other than with respect to
         the Initial Placement and the offer and resale of the Notes by the
         Initial Purchasers pursuant to this Agreement, for such violations that
         individually or in the aggregate would not have a Material Adverse
         Effect (iii) result in or require the creation or imposition of any
         lien upon any of the properties or assets of the Company (other than
         any liens created under the Bank Facility) or (iv) require any approval
         of stockholders or any approval or consent of any person under any
         Contracts except for such approvals or consents which have been
         obtained and disclosed in writing to the Initial Purchasers.

                  (k) No consent, approval, authorization or order of any
         Tribunal or other person is required in connection with the execution
         and delivery by the Company of the Transaction Documents or any other
         document or instrument to be delivered in connection therewith by the
         Company or is required in connection with the consummation of the other
         Transactions, other than any such consent, approval, authorization or
         order which has been obtained and remains in full force and effect or
         which has been waived in writing by the Initial Purchasers or such as
         may be required under applicable state securities or Blue Sky laws.

                  (l) The audited financial statements (including the notes
         thereto) of the Company included in the Final Memorandum comply as to
         form in all material respects with the requirements applicable to
         registration statements on Form S-1 under the Securities Act and fairly
         present in all material respects the combined financial position of the
         Company and the results of operations and cash flow thereof as of the
         dates and periods therein specified. Such financial statements have
         been prepared in accordance with generally accepted accounting
         principles ("GAAP") consistently applied throughout the periods
         involved. Since the date of the most recent financial statements
         included in the Final Memorandum, except as described therein and in
         the notes thereto or in the Final Memorandum, (i) the Company has not
         incurred any liabilities or obligations, direct or contingent, or
         entered into or agreed to enter into any transactions or Contracts
         (written or oral) not in the ordinary course of business which
         liabilities, obligations, transactions or Contracts would, individually
         or in the aggregate, have a Material Adverse Effect, (ii) except as
         contemplated by the Stock Purchase Agreement, the Company has not
         purchased any of its outstanding Capital Stock, nor declared, paid or
         otherwise made any dividend or distribution of any kind on its Capital
         Stock, (iii) there has not been any material change in the long-term
         indebtedness of the Company and (iv) none of the assets of the Company
         have materially diminished in value. The unaudited pro forma financial
         statements of the Company included in the Final Memorandum comply as to
         form in all material respects with the requirements of the Securities
         Act; the pro forma adjustments have been properly applied to the
         historical amounts in the compilation of such pro forma statements; the
         assumptions described in the notes to such

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         pro forma statements provide a reasonable basis for presenting the
         significant direct effects of the transactions contemplated therein;
         and such pro forma adjustments comply as to form in all material
         respects with the applicable accounting requirements of Regulation S-X
         under the Securities Act ("Regulation S-X").

                  (m) The Company maintains a system of internal accounting
         controls sufficient to provide reasonable assurance that (i)
         transactions are executed in accordance with management's general or
         specific authorizations; (ii) transactions are recorded as necessary to
         permit preparation of financial statements in conformity with GAAP and
         to maintain asset accountability; (iii) access to assets is permitted
         only in accordance with management's general or specific authorization;
         and (iv) the recorded accountability for inventory assets is compared
         with the existing inventory assets at reasonable intervals and
         appropriate action is taken with respect to any differences.

                  (n) The Company is not now, and immediately after giving
         effect to the consummation of the Transactions, will not be (i)
         insolvent, (ii) left with unreasonably small capital with which to
         engage in its anticipated businesses or (iii) incurring debts beyond
         its ability to pay such debts as they become due. The Company is not in
         liquidation, administration or receivership nor has any petition been
         presented for the winding-up of the Company.

                  (o) The Company has, and after consummation of the
         Transactions will have, good and marketable title to all of its
         properties and assets, and a valid leasehold interest in all properties
         held under lease by the Company, and none of the Company and, to the
         knowledge of the Company, any other party thereto, is in default under
         any lease, except in each case for such defects or defaults that,
         singly or in the aggregate, would not have a Material Adverse Effect.
         All such properties and assets owned or leased are so owned or leased
         free and clear of liens other than liens permitted under of the
         definition "Permitted Liens" set forth in the Final Memorandum. None of
         the material assets of the Company is subject to any restriction which
         would prevent continuation of the use currently made thereof or which
         would materially adversely affect the value thereof.

                  (p) The Company is not (i) in violation of its certificate of
         incorporation or bylaws, (ii) in breach or violation of any Laws or
         (iii) in breach of or default under (nor has any event occurred which,
         with notice or the passage of time or both, would constitute a default
         under) or in violation of any of the terms or provisions of any
         Contract, except for any such breach, default, violation or event in
         each case of (i), (ii) or (iii) which would, individually or in the
         aggregate, not have a Material Adverse Effect.

                  (q) There is no litigation pending or, to the knowledge of the
         Company after due investigation, threatened, by, against, or which may
         relate to or affect (a) any benefit plan or any fiduciary or
         administrator thereof, (b) the Transactions or (c) the Company which,
         individually or in the aggregate, would have a Material Adverse Effect.
         There are no outstanding injunctions or restraining orders prohibiting
         consummation of any of the Transactions or any other transactions
         contemplated in connection therewith. The Company is not in default
         with respect to any judgment, order, writ, injunction or decree of any
         Tribunal, and there are no unsatisfied judgments against the Company or
         its businesses

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         or properties, except for defaults and unsatisfied judgments that
         individually or in the aggregate would not have a Material Adverse
         Effect. The Company has not been advised that there is a reasonable
         likelihood of an adverse determination of any litigation which adverse
         determination, should it occur, would have a Material Adverse Effect.

                  (r) The proceeds from the issuance and sale of the Notes will
         be used solely for the purposes specified in the Final Memorandum. None
         of such proceeds will be used for the purpose of purchasing or carrying
         any Margin Stock within the meaning of the applicable provisions of
         Regulation G, T, U or X of the Board of Governors of the Federal
         Reserve System, or for the purpose of reducing or retiring any
         indebtedness which was originally incurred to purchase or carry Margin
         Stock or for any other purpose which might cause any of the Notes to be
         considered a "purpose credit" within the meaning of the applicable
         provisions of Regulation G, T, U or X.

                  (s) All material Tax Returns, foreign and domestic, required
         to be filed by the Company in any jurisdiction have been timely filed,
         and all material Taxes (whether or not actually shown on such Tax
         Returns) for which it is directly or indirectly liable or to which any
         of its respective properties or assets is subject have been paid other
         than taxes being contested in good faith and for which adequate
         reserves have been established in accordance with GAAP; all such Tax
         Returns are true, correct and complete in all material respects and
         accurately set forth all items to the extent required to be reflected
         or included in such Tax Returns by applicable federal, state, local or
         foreign Tax laws, regulations or rules. There is no material proposed
         tax assessment against the Company and, to the best knowledge of the
         Company, there is no basis for such assessment, except for contested
         claims.

                  As used herein, the following terms shall have the respective
meaning ascribed to each below:

                  "Tax Return" means a report, return or other information
(including any amendments) required to be supplied to a governmental entity with
respect to Taxes including, where permitted or required, combined or
consolidated returns for any group of entities that includes the Company.

                  "Taxes" shall mean all taxes, however denominated, including
any interest or penalties that may become payable in respect thereof, imposed by
any federal, state, local or foreign government or any agency or political
subdivision of any such government, which taxes shall include, without limiting
the generality of the foregoing, all income taxes (including, but not limited
to, United States federal income taxes and state income Taxes), payroll and
employee withholding taxes, unemployment insurance, social security, sales and
use taxes, excise taxes, environmental, franchise taxes, gross receipts taxes,
occupation taxes, real and personal property taxes, stamp taxes, transfer taxes,
withholding taxes, workers' compensation, and other obligations of the same or
of a similar nature, whether arising before, on or after the Closing Date.

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                  (t) (A) After giving effect to the Transactions, no ERISA
         Events have occurred or are reasonably expected to occur which
         individually or in the aggregate resulted in or might reasonably be
         expected to result in a liability of the Company or any of its ERISA
         Affiliates which would have a Material Adverse Effect.

                  (B) In accordance with the most recent actuarial valuations,
         the Amount of Unfunded Benefit Liabilities individually or in the
         aggregate for all Pension Plans (excluding for purposes of such
         computation any Pension Plans which have a negative Amount of Unfunded
         Benefit Liabilities), is not an amount which would have a Material
         Adverse Effect.

                  As used herein, the following terms shall have the respective
meaning ascribed to each below:

                  "Amount of Unfunded Benefit Liability" means, with respect to
any Pension Plan, (i) if set forth on the most recent actuarial valuation report
with respect to such Pension Plan, the amount of unfunded benefit liabilities
(as defined in Section 4001(a)(18) of ERISA) and (ii) otherwise, the excess of
(a) the greater of the current liability (as defined in Section 412(1)(7) of the
Internal Revenue Code) or the actuarial present value of the accrued benefits
with respect to such Pension Plan over (b) the market value of the assets of
such Pension Plan.

                  "Employee Pension Benefit Plan" means any "employee pension
benefit plan" as defined in Section 3(2) of ERISA (i) which is, or, at any time
within the five calendar years immediately preceding the date hereof, was at any
time, sponsored, maintained or contributed to by the Company or any of its ERISA
Affiliates or (ii) with respect to which the Company retains any liability,
including any potential joint and several liability as a result of an
affiliation with an ERISA Affiliate or a party that would be an ERISA Affiliate
except for the fact the affiliation ceased more than five calendar years prior
to the date hereof.

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

                  "ERISA Affiliate," as applied to any person, means (i) any
corporation which is, or was at any time within the five calendar years
immediately preceding the date hereof, a member of a controlled group of
corporations within the meaning of Section 414(b) of the Internal Revenue. Code
of which that person is, or was at any time within the five calendar years
immediately preceding the date hereof, a member; (ii) any trade or business
(whether or not incorporated) which is, or was at any time within the five
calendar years immediately preceding the date hereof, a member of a group of
trades or businesses under common control within the meaning of Section 414(c)
of the Internal Revenue Code of which that person is, or was at any time within
the five calendar years immediately preceding the date hereof, a member; and
(iii) any member of an affiliated service group within the meaning of Section
414(m) or (o) of the Internal Revenue Code of which that person, any corporation
described in clause (i) above or any trade or business described in clause (ii)
above is, or was at any time within the five calendar years immediately
preceding the date hereof, a member.

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                  "ERISA Event" means (i) a "reportable event" within the
meaning of Section 4043 of ERISA and the regulations issued thereunder with
respect to any Pension Plan (excluding those for which the provision for 30-day
notice to the PBGC has been waived by regulation); (ii) the failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code with
respect to any Pension Plan (whether or not waived) or the failure to make any
required contribution with respect to any Multiemployer Plan; (iii) the
provision by the administrator of any Pension Plan pursuant to Section
4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress
termination described in Section 4041(c) of ERISA; (iv) the withdrawal by the
Company or any of its ERISA Affiliates from any Multiple Employer Plan or the
termination of any such Multiple Employer Plan resulting in liability pursuant
to Sections 4063 or 4064 of ERISA; (v) the institution by the PBGC of
proceedings to terminate any Pension Plan, or the occurrence of any event or
condition which might reasonably be expected to constitute grounds under ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan; (vi) the imposition of liability on the Company or any of its
ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of
the application of Section 4212(c) of ERISA; (vii) the withdrawal by the Company
or any of its ERISA Affiliates in a complete or partial withdrawal (within the
meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there
is any potential liability therefor, or the receipt by the Company or any of its
ERISA Affiliates of notice from any Multiemployer Plan that it is in
reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that
it intends to terminate or has terminated under Section 4041 A or 4042 of ERISA;
(viii) the occurrence of an act or omission which could reasonably be expected
to give rise to the imposition on the Company or any of its ERISA Affiliates of
fines, penalties, taxes or related charges under Chapter 43 of the Internal
Revenue Code or under Sections 406, 409 or 502(i) or (1) of ERISA in respect of
any Employee Benefit Pension Plan; (ix) receipt from the Internal Revenue
Service of notice of the failure of any Pension Plan (or any other Employee
Pension Benefit Plan intended to be qualified under Section 401 (a) of the
Internal Revenue Code) to qualify under Section 401 (a) of the Internal Revenue
Code, or the failure of any trust forming part of any Pension Plan or Employee
Pension Benefit Plan to qualify for exemption from taxation under Section 501
(a) of the Internal Revenue Code; or (x) the imposition of alien pursuant to
Section 401(a)(29) or 412(n) of the Internal Revenue Code or pursuant to ERISA
with respect to any Pension Plan.

                  "Internal Revenue Code" means the Internal Revenue Code of
1986, as amended from time to time, and any successor code or statute.

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

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

                                      -9-
<PAGE>

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

                  "PBGC" means the Pension Benefit Guaranty Corporation, and any
successor to all or any of the Pension Benefit Guaranty Corporation's functions
under ERISA.

                  "Single Employer Plan" means a "single-employer plan," as
defined in Section 4001(a)(15) of ERISA, that (i) is maintained for employees of
the Company or any of its ERISA Affiliates and no person other than the Company
or any of its ERISA Affiliates or (ii) was so maintained and in respect of which
such Company or ERISA Affiliates could have liability under Section 4069 of
ERISA in the event such plan has been or were to be terminated.

                  (u) The Company is not subject to regulation under the Public
         Utility Holding Company Act of 1935, the Federal Power Act of 1935, the
         Investment Company Act of 1940 (as any of the preceding acts have been
         amended) or other Law which regulates the incurrence by the Company of
         indebtedness, including, but not limited to, Laws relating to common
         contract carriers or the sale of electricity, gas, steam, water or
         other public utility services.

                  (v) (A) The Company owns or is licensed to use, and
         immediately after consummation of the Transactions, will own or be
         licensed to use, all patents, trademarks, tradenames, copyrights,
         technology, know-how and processes used in or necessary for the conduct
         of the business of the Company as currently conducted ("Intellectual
         Property") except where the failure to own or license the use of such
         Intellectual Property does not, singly or in the aggregate, have a
         Material Adverse Effect.

                      (B) To the Company's knowledge, no material claim has
                  been asserted by any person with respect to the use of any
                  such Intellectual Property, or challenging or questioning the
                  validity or effectiveness of any such Intellectual Property.
                  To the Company's knowledge, the use of such Intellectual
                  Property by the Company does not infringe on the rights of any
                  person, subject to such claims and infringements as do not,
                  singly or in the aggregate, have a Material Adverse Effect.
                  The consummation of the Transactions will not in any material
                  manner or to any material extent impair the ownership of (or
                  the license to use, as the case may be) such Intellectual
                  Property by the Company.

         (w) After giving effect to the Transactions:

                       (A) the operations of the Company (including, without
                  limitation, as the term is used throughout this Section 1(w),
                  all operations and conditions at or in the Facilities) comply
                  in all material respects with all Environmental Laws except
                  for any such noncompliance which would not reasonably be
                  expected to have a Material Adverse Effect;

                       (B) The Company has obtained all Permits under
                  Environmental Laws necessary to its operations, and all such
                  Permits are being maintained in good standing, including the
                  timely submission of any renewal applications, and the Company
                  is in compliance with all material terms and conditions of
                  such Permits

                                      -10-
<PAGE>

                  except for any such failure to obtain, maintain or comply
                  which would not reasonably be expected to have a Material
                  Adverse Effect;

                       (C) the Company is not aware of nor has it received
                  (a) any written notice or claim to the effect that it is or
                  may be liable to any person under any Environmental Law,
                  including without limitation, any notice or claim relating to
                  any Hazardous Materials except as would not reasonably be
                  expected to have a Material Adverse Effect or (b) any letter
                  or request for information under Section 104 of the
                  Comprehensive Environmental Response, Compensation, and
                  Liability Act (42 U.S.C.ss. 9604) or comparable foreign or
                  state laws regarding any matter which could reasonably be
                  expected to result in a Material Adverse Effect, and, to the
                  best of the Company's knowledge, the Company is not nor will
                  it be involved in any investigation, response or corrective
                  action relating to or in connection with any Hazardous
                  Materials at any Facility or at any other location except for
                  such of the foregoing which would not reasonably be expected
                  to have a Material Adverse Effect;

                       (D) the Company is not subject to any judicial or
                  administrative proceeding alleging the violation of or
                  liability under any Environmental Laws which if adversely
                  determined could reasonably be expected to have a Material
                  Adverse Effect;

                       (E) none of the Company or any of its respective
                  Facilities or operations is subject to any outstanding written
                  order or agreement with any governmental authority or private
                  party relating to (a) any actual or potential violation by the
                  Company of or liability of the Company under Environmental
                  Laws or (b) any Environmental Claims except for such of the
                  foregoing which would not reasonably be expected to have a
                  Material Adverse Effect;

                       (F) to the best of the Company's knowledge, the
                  Company does not have any contingent liability in connection
                  with any Release or threatened Release of any Hazardous
                  Materials by the Company except for such of the foregoing
                  which would not reasonably be expected to have a Material
                  Adverse Effect;

                       (G) to the best of the Company's knowledge, the
                  Company and all predecessors of the Company have filed any
                  notice required under any Environmental Law indicating past or
                  present treatment, storage or disposal of hazardous waste, as
                  defined under 40 C.F.R. Parts 260-270 or any comparable
                  foreign or state laws;

                       (H) to the best of the Company's knowledge, no
                  Hazardous Materials exist on, under or about any Facility in a
                  manner that would reasonably be expected to give rise to an
                  Environmental Claim having a Material Adverse Effect. The
                  Company has not filed any notice or report of a Release of any
                  Hazardous Materials that would reasonably be expected to give
                  rise to an Environmental Claim having a Material Adverse
                  Effect;

                                      -11-
<PAGE>

                       (I) neither the Company nor, to the best of the
                  Company's knowledge, any of the predecessors of the Company,
                  has disposed of any Hazardous Materials in a manner that would
                  reasonably be expected to give rise to an Environmental Claim
                  having a Material Adverse Effect;

                       (J) to the best of the Company's knowledge, no
                  underground storage tanks or surface impoundments are on or at
                  any Facility; and

                       (K) no lien in favor of any person relating to or in
                  connection with any Environmental Claim has been filed or has
                  been attached to any Facility or other assets of the Company
                  except for any such lien which would not reasonably be
                  expected to have a Material Adverse Effect.

                  Notwithstanding anything in this Section 1(w) to the contrary,
no event or condition has occurred which may interfere with present compliance
by the Company with any Environmental Law or which could reasonably be expected
to result in any liability under any Environmental Law which, individually or in
the aggregate, has had a Material Adverse Effect.

                  As used herein, the following terms shall have the respective
meaning ascribed to each below:

                  "Environmental Claims" means any allegation, notice of
violation, claim, demand, abatement order or other order by any governmental
authority or any person for any response or corrective action, any damage,
including, without limitation, personal injury (including sickness, disease or
death), property damage, contribution, indemnity, indirect or consequential
damages, damage to the environment, nuisance, pollution, contamination or other
adverse effects on the environment, or for fines, penalties or restrictions, in
each case arising under or relating to any Environmental Law, including without
limitation, relating to, resulting from or in connection with Hazardous
Materials and relating to the Company or any of its Facilities or predecessors
of the Company.

                  "Environmental Laws" means the common law and all statutes,
ordinances, orders, rules, regulations, requirements, judgments, policies or
decrees relating to (i) pollution, protection, preservation, cleanup or
reclamation of the environment, natural resources, human, plant or animal health
or welfare, (ii) the Release or threatened Release of Hazardous Materials, (iii)
manufacture, processing, treatment, handling, recycling, generation, use,
storage, transportation or disposal of Hazardous Materials including, without
limitation, investigation, study, assessment, testing, monitoring, containment,
removal, remediation, or clean-up of any such Release or (iv) occupational
safety and health and industrial hygiene.

                  "Facilities" means any and all real property (including,
without limitation, all buildings, fixtures or other improvements located
thereon) now, hereafter or heretofore owned, leased, operated or used by the
Company or any of its predecessors of the Company.

                  "Hazardous Materials" means (i) any chemical, material or
substance at any time defined as or included in the definition of "hazardous
substances," "hazardous wastes," "hazardous materials," "extremely hazardous
substance," "restricted hazardous waste," "infectious waste," "toxic substances"
or any other formulations intended to define, list or

                                      -12-
<PAGE>

classify substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, "TCLP
toxicity" or "EP toxicity" or words of similar import under any applicable
Environmental Laws or publications issued pursuant thereto; (ii) any oil,
petroleum, petroleum fraction or petroleum derived substance; (iii) any
flammable substances or explosives; (iv) any radioactive materials or gases; (v)
asbestos; (vi) urea formaldehyde foam insulation; (vii) electrical equipment
which contains any oil or dielectric fluid containing levels of polychlorinated
biphenyls in excess of fifty parts per million; (viii) pesticides; (ix)
lead-based paint; and (x) any other chemical, material or substance, exposure to
which is prohibited, limited or regulated by any governmental authority.

                  "Permits" has the meaning ascribed to it in Section 1(x)
below.

                  "Release" means any release, spill, emission, leaking,
pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of Hazardous Materials into the environment
(including, without limitation, the abandonment or disposal of any barrels,
containers or other closed receptacles containing any Hazardous Materials), or
onto or out of any Facility, including the movement of any Hazardous Material
through the air, soil, surface water, groundwater or property.

                  (x) The Company has, and immediately after the consummation of
         the Transactions will have, such certificates, permits, licenses,
         franchises, consents, approvals, authorizations and clearances
         ("Permits"), and is, and immediately after the consummation of the
         Transactions will be, in compliance in all material respects with all
         Laws as are necessary to own, lease or operate its properties and to
         conduct its businesses in the manner as presently conducted and to be
         conducted immediately after the consummation of the Transactions except
         where the failure to have such Permits or to comply with such Laws
         would not, singly or in the aggregate, have a Material Adverse Effect,
         and all such Permits are valid and in full force and effect and will be
         valid and in full force and effect immediately upon consummation of the
         Transactions. The Company is, and immediately after the consummation of
         the Transactions will be, in compliance in all material respects with
         its obligations under such Permits and no event has occurred or will
         occur as a result of the consummation of the Transactions that allows,
         or after notice or lapse of time or both would allow, revocation or
         termination of such Permits except for any such revocation or
         termination as would not, singly or in the aggregate, have a Material
         Adverse Effect.

                  (y) The Company carries or is entitled to the benefits of
         insurance (including self insurance) in such amounts and covering such
         risks as is generally maintained by companies of established repute
         engaged in the same or similar businesses, and all such insurance is
         (and will be immediately after the consummation of the Transactions) in
         full force and effect, except where the failure to carry such insurance
         or be entitled to the benefits of such insurance does not, singly or in
         the aggregate, have a Material Adverse Effect.

                  (z) No labor disturbance by the employees of the Company
         exists or, to the best knowledge of the Company, is threatened and the
         Company is not aware of any existing or imminent labor disturbance by
         the employees of the Company's principal

                                      -13-
<PAGE>

         suppliers, manufacturers or customers that could, singly or in the
         aggregate, have a Material Adverse Effect.

                  (aa) Except for the fees and expenses payable to the Initial
Purchasers and to Leonard Green & Partners, L.P., which fees and expenses will
be paid by the Company on the Closing Date, the Company did not employ any
investment banker, broker, finder, consultant, intermediary or other person in
connection with the transactions contemplated by this Agreement which would be
entitled to any investment banking, brokerage, finder's or other fee or
commission in connection with this Agreement or the transactions contemplated
hereby.

                  Any certificate signed by any officer of the Company and
delivered to the Initial Purchasers or their counsel shall be deemed to be a
representation and warranty by the Company to the Initial Purchasers as to the
matters covered thereby to the extent expressly set forth therein.

                  2. Purchase and Sale. Subject to the terms and conditions and
in reliance upon the representations and warranties herein set forth, the
Company agrees to sell to each of the Initial Purchasers, and each of the
Initial Purchasers agrees to purchase from the Company, severally and not
jointly, at a purchase price equal to 97% of the principal amount thereof, Notes
in the respective principal amount set forth opposite its name on Schedule I
hereto.

                  3. Delivery and Payment. Delivery of and payment for the Notes
shall be made at 10:00 AM, New York City time, on March 31, 1998, which date and
time may be postponed by agreement between the Initial Purchasers and the
Company (such date and time of delivery and payment for the Notes being herein
called the "Closing Date"). Delivery of the Notes shall be made to the Initial
Purchasers against payment by the Initial Purchasers of the purchase price
thereof to or upon the order of the Company by intrabank transfer payable in
same day funds or such other manner of payment as may be agreed by the Company
and the Initial Purchasers. Delivery of the Notes and payment for the Notes
shall be made at the office of Kramer, Levin, Naftalis & Frankel, 919 Third
Avenue, New York, NY 10022. Certificates for the Notes shall be registered in
such names and in such denominations as the Initial Purchasers may request not
less than two full Business Days in advance of the Closing Date.

                  The Company agrees to have the Notes available for inspection,
checking and packaging by the Initial Purchasers in New York, New York, not
later than 1:00 PM on the Business Day prior to the Closing Date.

                  4. Offering of Notes and the Initial Purchasers'
Representations and Warranties. (a) Each of the Initial Purchasers has advised
the Company that it is its intention, as promptly as it deems appropriate after
the Company shall have furnished it with copies of the Final Memorandum, to
resell the Notes pursuant to the procedures and upon the terms and subject to
the conditions set forth in the Final Memorandum.

                  (b) Each of the Initial Purchasers represents and warrants to
         and agrees with the Company that:

                           (i) It is not acquiring the Notes with a view to any
                  distribution thereof within the meaning of the Securities Act
                  or with any present intention of offering or selling any of
                  the Notes in a transaction that would violate the Securities
                  Act or the securities laws of any State of the United States
                  or any other applicable jurisdiction.

                                      -14-
<PAGE>

                           (ii) It has not offered or sold, and it will not
                  offer or sell, any Notes except (x) within the United States
                  to those it reasonably believes to be qualified institutional
                  buyers (as defined in Rule 144A under the Securities Act)
                  ("QIBs") in transactions meeting the requirements of Rule
                  144A, (y) to other institutional "accredited investors" (as
                  defined in Rule 501(a)(1), (2), (3) or (7) under the
                  Securities Act) who provide to it and to the Company a letter
                  in the form of Exhibit A hereto or (z) outside the United
                  States to persons other than U.S. persons (or the account or
                  benefit of U.S. persons) within the meaning of and in reliance
                  upon Regulation S under the Securities Act. In connection with
                  each sale pursuant to clause (x) above, each Initial Purchaser
                  has taken or will take reasonable steps to ensure that the
                  purchaser of such Notes is aware that such sale is being made
                  in reliance upon Rule 144A.

                           (iii) It is an institutional accredited investor with
                  such knowledge and experience in financial and business
                  matters as are necessary in order to evaluate the merits and
                  risks of an investment in the Notes.

                           (iv) Neither it nor any person acting on its behalf
                  has made or will make offers or sales of the Notes by means of
                  any form of general solicitation or general advertising
                  (within the meaning of Regulation D under the Securities Act).

                           (v) It has not offered or sold, and prior to the date
                  six months after the issue of the Notes, will not offer or
                  sell any Notes to persons in the United Kingdom except to
                  persons whose ordinary activities involve them in acquiring,
                  holding, managing or disposing of investments (as principal or
                  agent) for the purposes of their businesses, or otherwise in
                  circumstances which have not resulted and will not result in
                  an offer to the public in the United Kingdom within the
                  meaning of the Public Offers of Securities Regulations 1995.

                           (vi) It has complied and will comply with all
                  applicable provisions of the Financial Services Act 1986 with
                  respect to anything done by it in relation to the Notes in,
                  from or otherwise involving the United Kingdom.

                           (vii) It has only issued or passed on and will only
                  issue or pass on in the United Kingdom any document received
                  by it in connection with the issue of the Notes to a person
                  who is of a kind described in Article 11(3) of the Financial
                  Services Act 1986 (Investment Advertisements) (Exemptions)
                  Order 1996 (as amended) or is a person to whom the document
                  may otherwise lawfully be issued or passed on.

                  5.       Agreements. The Company agrees with the Initial
                           Purchasers that:

                  (a) The Company will furnish to the Initial Purchasers and to
         Cleary, Gottlieb, Steen & Hamilton ("Counsel for the Initial
         Purchasers"), without charge, during the

                                      -15-
<PAGE>

         period referred to in paragraph (c) below, as many copies of the Final
         Memorandum and any amendments and supplements thereto as they may
         reasonably request. The Company will pay the expenses of printing or
         other production of all documents relating to the offering of the Notes
         and will reimburse the Initial Purchasers for payment of the required
         PORTAL filing fee.

                  (b) The Company will not amend or supplement the Final
         Memorandum prior to the completion of the distribution of the Notes by
         the Initial Purchasers, without the prior written consent of each of
         the Initial Purchasers.

                  (c) If at any time prior to the completion of the distribution
         of the Notes acquired by the Initial Purchasers pursuant to this
         Agreement, during which time you are required to deliver a Final
         Memorandum in connection with sales of the Notes by you (as reasonably
         determined by the Initial Purchasers, upon the advice of counsel), any
         event occurs as a result of which the Final Memorandum, as then amended
         or supplemented, would include any untrue statement of a material fact
         or omit to state any material fact necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading, or if it should be necessary to amend or supplement the
         Final Memorandum to comply with applicable law, the Company will
         promptly notify the Initial Purchasers of the same and, subject to the
         requirements of paragraph (b) of this Section 5, will prepare and
         provide to the Initial Purchasers pursuant to paragraph (a) of this
         Section 5 an amendment or supplement that will correct such statement
         or omission or effect such compliance.

                  (d) The Company will arrange for the qualification of the
         Notes for sale by the Initial Purchasers under the laws of such
         jurisdictions as the Initial Purchasers may reasonably designate and
         will maintain such qualifications in effect so long as required by law
         for the sale of the Notes by the Initial Purchasers; provided, however,
         that the Company will not be required to qualify generally to do
         business in any jurisdiction in which it is not then so qualified, to
         file any general consent to service of process or to take any other
         action which would subject it to general service of process or to
         taxation in any such jurisdiction where it is not then so subject. The
         Company will promptly advise the Initial Purchasers of the receipt by
         the Company of any notification with respect to the suspension of the
         qualification of the Notes for sale in any jurisdiction or the
         initiation or threatening of any proceeding for such purpose.

                  (e) The Company, whenever it publishes or makes available to
         the public (by filing with any regulatory authority or securities
         exchange or by publishing a press release or otherwise) any information
         that could reasonably be expected to be material in the context of the
         issue of Notes under this Agreement, shall promptly notify the Initial
         Purchasers as to the nature of such information or event. The Company
         will likewise notify the Initial Purchasers of (i) any decrease in the
         rating of the Notes or any other debt securities of the Company by any
         nationally recognized statistical rating organization (as defined in
         Rule 436(g)(2) under the Securities Act) or (ii) any notice given of
         any intended or potential decrease in any such rating or of a possible
         change in any such rating that does not indicate the direction of the
         possible change, as soon as the Company becomes aware of any such
         decrease or notice. The Company will also deliver

                                      -16-
<PAGE>

         to the Initial Purchasers, as soon as available and without request,
         copies of its latest yearly and quarterly financial statements and any
         report of its auditors thereon.

                  (f) The Company will not, and will not permit any of its
         Affiliates to, resell any Notes that have been acquired by any of them,
         other than pursuant to an effective registration statement under the
         Securities Act.

                  (g) Except as contemplated in the Registration Rights
         Agreement and except as disclosed in the Final Memorandum, none of the
         Company or any of its Affiliates, nor any person acting on its or their
         behalf (other than the Initial Purchasers or any of their Affiliates,
         as to whom the Company expresses no opinion) will, directly or
         indirectly, make offers or sales of any security, or solicit offers to
         buy any security, under circumstances that would require the
         registration of the Notes under the Securities Act.

                  (h) None of the Company or any of its Affiliates, nor any
         person acting on its or their behalf (other than the Initial Purchasers
         or any of their Affiliates, as to whom the Company expresses no
         opinion) will engage in any form of general solicitation or general
         advertising (within the meaning of Regulation D) in connection with any
         offer or sale of the Notes.

                  (i) So long as any Notes remain outstanding, the Company shall
         provide the Trustee, the holders of the Notes and the Initial
         Purchasers with such annual reports and such information, documents and
         other reports (other than exhibits) as are specified in Sections 13 and
         15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
         Act") and applicable to a U.S. corporation subject to such Sections,
         such information, documents and other reports to be so provided within
         15 days after the times specified for the filing of such information,
         documents and reports under such Sections. Notwithstanding that the
         Company may not be subject to the reporting requirements of Section 13
         or 15(d) of the Exchange Act, the Company will, beginning on the
         earlier of (x) the date on which, pursuant to the Registration Rights
         Agreement, the Exchange Offer Registration Statement (as defined
         therein) becomes effective and (y) 730 days following the Issue Date,
         file with the Commission, to the extent permitted, such annual reports
         and such information, documents and other reports as are specified in
         Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
         corporation subject to such Sections, such information, documents and
         other reports to be so filed within 15 days after the times specified
         for the filing of such information, documents and reports under such
         Sections. In addition, the Company will make available, upon request,
         to any holder and any prospective purchaser of Notes the information
         required pursuant to Rule 144A(d)(4) under the Securities Act.

                  (j) The Company will cooperate with the Initial Purchasers and
         use its best efforts to (i) permit the Notes to be designated PORTAL
         securities in accordance with the Rules and regulations of the NASD
         relating to trading in the Private Offerings, Resale and Trading
         through Automated Linkages market ("PORTAL") and (ii) permit the Notes
         to be eligible for clearance and settlement as described under
         "Book-Entry; Delivery and Form" in the Final Memorandum.

                                      -17-
<PAGE>

                  (k) The Company will apply the net proceeds from the sale of
         the Notes as set forth under "Use of Proceeds" in the Final Memorandum.

                  (l) The Company will conduct its operations in a manner that
         will not subject the Company to registration as an investment company
         under the Investment Company Act of 1940, as amended.

                  (m) Each Note will bear a legend substantially to the
         following effect until such legend shall no longer be necessary or
         advisable because the Notes are no longer subject to the restrictions
         on transfer described therein:

         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
                  1933, AS AMENDED (THE "SECURITIES ACT"), AND ACCORDINGLY, MAY
                  NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR
                  THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN
                  THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER
                  (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
                  BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR
                  (B) IT IS AN "ACCREDITED INVESTOR" (AS DEFINED IN RULE
                  501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN
                  "ACCREDITED INVESTOR") OR (C) IT IS NOT A U.S. PERSON AND IS
                  ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE
                  WITH REGULATION S UNDER THE SECURITIES ACT; (2) AGREES THAT IT
                  WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
                  NOTE RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE
                  ISSUER OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES
                  TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
                  144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO
                  AN ACCREDITED INVESTOR THAT IS ACQUIRING THE NOTE FOR ITS OWN
                  ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, IN
                  EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE NOTES OF U.S.
                  $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR
                  FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN
                  VIOLATION OF THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER,
                  FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S.
                  BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING
                  CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
                  RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH
                  LETTER CAN BE OBTAINED FROM THE TRUSTEE), (D) OUTSIDE THE
                  UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE
                  SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM
                  REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
                  AVAILABLE), OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION
                  STATEMENT UNDER THE SECURITIES ACT; AND (3) AGREES THAT IT
                  WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED

                                      -18-
<PAGE>

                  A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
                  CONNECTION WITH ANY TRANSFER OF THIS NOTE WITHIN TWO YEARS
                  AFTER THE ORIGINAL ISSUANCE OF THIS NOTE, IF THE PROPOSED
                  TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR
                  TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH
                  CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER
                  OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
                  IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A
                  TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
                  THE SECURITIES ACT. AS USED HEREIN, THE TERMS "OFFSHORE
                  TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE
                  MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
                  ACT.

                  6. Conditions to the Obligations of the Initial Purchasers.
The obligations of the Initial Purchasers to purchase the Notes shall be subject
to the accuracy of the representations and warranties on the part of the Company
contained herein at the date and time that this Agreement is executed and
delivered by the parties hereto (the "Execution Time") and the Closing Date, to
the accuracy of the statements of the Company made in any certificates pursuant
to the provisions hereof, to the performance by the Company of its obligations
hereunder in all material respects and to the following additional conditions:

                  (a) The Company shall have furnished to the Initial Purchasers
         the opinions of Kramer, Levin, Naftalis & Frankel and Cooperman, Levitt
         Winikoff, Lester & Newman, P.C. ("Counsel for the Company"), each dated
         the Closing Date, in form and substance satisfactory to the initial
         Purchasers to the effect set forth in Exhibit B-1 and B-2 hereto.

                  (b) The Initial Purchasers shall have received from Counsel
         for the Initial Purchasers such opinion or opinions, dated the Closing
         Date, with respect to the issuance and sale of the Notes and other
         related matters as the Initial Purchasers may reasonably require, and
         the Company shall have furnished to such counsel such documents as it
         reasonably requests for the purpose of enabling it to pass upon such
         matters.

                  (c) The Company shall have furnished to the Initial Purchasers
         a certificate dated the Closing Date, signed on behalf of the Company
         by any two of its Co-Chairmen of the Board and Co-Chief Executive
         Officers, President, Chief Financial Officer and any Vice President to
         the effect that the signer of such certificate has carefully examined
         the Final Memorandum, any amendment or supplement to the Final
         Memorandum and this Agreement and that:

                           (i) the representations and warranties of the Company
                  contained in this Agreement are true and correct in all
                  material respects on and as of the Closing Date with the same
                  effect as if made on the Closing Date, and the Company has
                  complied in all material respects with all the agreements and
                  satisfied in all material respects all the conditions on its
                  part to be performed or satisfied hereunder at or prior to the
                  Closing Date; and

                                      -19-
<PAGE>

                           (ii) since the date of the most recent financial
                  statements included in the Final Memorandum, there has been no
                  change or development or event involving a prospective change
                  constituting a Material Adverse Effect, except as set forth in
                  or contemplated by the Final Memorandum (exclusive of any
                  amendment or supplement thereto).

                  (d) At the Execution Time and at the Closing Date, KPMG Peat
         Marwick LLP shall have furnished to the Initial Purchasers a letter or
         letters, dated respectively as of the Execution Time and as of the
         Closing Date, in form and substance reasonably satisfactory to the
         Initial Purchasers, confirming that they are independent public
         accountants within the meaning of Rule 101 of the Code of Professional
         Conduct of the American Institute of Certified Public Accountants (the
         "AICPA") and stating in effect that:

                           (i) they have (a) read the incomplete unaudited
                  monthly financial statements for January 31, 1998 prepared by
                  the Company, (b) read the minutes of the meetings of the
                  stockholders, directors and committees of the board of
                  directors of the Company made available to them by the Company
                  and (c) made inquiries of certain officials of the Company who
                  have responsibility for financial and accounting matters of
                  the Company whether the financial statements referred to in
                  clause (a) above are stated on a basis substantially
                  consistent with that of the audited combined financial
                  statements included in the Final Memorandum.

                           (ii) Nothing came to their attention as a result of
                  the procedures performed in (a), (b) and (c) above that caused
                  them to believe that, (1) at January 31, 1998, there was any
                  change in capital stock, increase in long-term debt or
                  decrease in combined net current assets or stockholders'
                  equity of the Company as compared with amounts shown in the
                  December 31, 1997 audited combined balance sheet included in
                  the Final Memorandum, or (2) for the period from January 1,
                  1998 to January 31, 1998, there were any decreases, as
                  compared to the corresponding period in the preceding year, in
                  combined net sales or in the total amount of net income,
                  except in all instances for (I) changes, increases or
                  decreases that the Final Memorandum disclosed have occurred or
                  may occur or (II) as set forth in such letter, in which case
                  the letter shall be accompanied by an explanation by the
                  Company as to the significance thereof unless said explanation
                  is not deemed necessary by the Initial Purchasers;

                           (iii) they have inquired of certain officials of the
                  Company who have responsibility for financial and accounting
                  matters whether (a) at any specified date not more than three
                  Business Days prior to the date of the letter, there was any
                  change in the capital stock, increase in long-term debt or any
                  decrease in combined net current assets or stockholders'
                  equity of the Company as compared with amounts shown on the
                  January 31, 1998, unaudited combined balance sheet or (b) for
                  the period from January 31, 1998 to any specified date not
                  more than three Business Days prior to the date of the letter,
                  there were any decreases as compared with the corresponding
                  period in the preceding year, in combined net sales or in the
                  total amount of net income. On the basis of these inquiries,
                  nothing

                                      -20-
<PAGE>

                  came to their attention that caused them to believe that there
                  was any such change, increases or decrease, except in all
                  instances for (I) changes, increases, or decreases, that the
                  Final Memorandum discloses have occurred or may occur or (II)
                  as set forth in such letter, in which case the letter shall be
                  accompanied by an explanation by the Company as to the
                  significance thereof unless said explanation is not deemed
                  necessary by the Initial Purchaser;

                           (iv) they have performed certain other specified
                  procedures as a result of which they determined that certain
                  information of an accounting, financial or statistical nature
                  (which is limited to accounting, financial or statistical
                  information derived from the general accounting records of the
                  Company) set forth in the Final Memorandum, including without
                  limitation the information set forth under the captions
                  "Summary," "Risk Factors," "Use of Proceeds,"
                  "Capitalization," "Unaudited Pro Forma Combined Financial
                  Data," "Selected Historical Combined Financial Data,"
                  "Management's Discussion and Analysis of Financial Condition
                  and Results of Operations," "Business" and "Certain
                  Relationships and Related Transactions," in the Final
                  Memorandum agrees with the accounting records of the Company,
                  excluding any questions of legal interpretation; and

                           (v) as to pro forma financial information,

                           (A) they have read the unaudited pro forma combined
                  financial data included in the Final Memorandum;

                           (B) they have inquired of certain officials of the
                  Company who have responsibility for financial and accounting
                  matters as to the basis for their determination of the pro
                  forma adjustments;

                           (C) they have proved the arithmetic accuracy of the
                  application of the pro forma adjustments to the historical
                  financial amounts in the unaudited pro forma combined
                  consolidated financial data, and as a result of the procedures
                  specified in (A), (B) and (C), nothing came to their attention
                  that caused them to believe that the pro forma adjustments
                  have not been properly applied to the historical amounts in
                  the compilation of the unaudited pro forma combined
                  consolidated financial data included in the Final Memorandum;
                  and

                           (D) they have performed certain other specified
                  procedures as a result of which they determined that certain
                  pro forma information of an accounting, financial, or
                  statistical nature set forth in the Final Memorandum,
                  including without limitation the information set forth under
                  the captions "Summary," "Risk Factors," "Capitalization" and
                  "Unaudited Pro Forma Combined Financial Data" in the Final
                  Memorandum, agrees to or can be derived from the pro forma
                  financial data of the Company or the analysis completed in the
                  preparation of such pro forma financial data, excluding any
                  questions of legal interpretation.

                                      -21-
<PAGE>

                  All references in this Section 6(d) to the Final Memorandum
shall be deemed to include any amendment or supplement thereto at the date of
the letter or letters.

                           (e) At the Execution Time, Kronick Kalada Berdy & Co.
                  shall have furnished to the Initial Purchasers a letter, dated
                  as of the Execution Time, in form and substance reasonably
                  satisfactory to the Initial Purchasers, confirming that they
                  are independent public accountants within the meaning of Rule
                  101 of the Code of Professional Conduct of the American
                  Institute of Certified Public Accountants (the "AICPA") and
                  stating in effect that

                                    (i) they have (a) read the incomplete
                           unaudited monthly financial statements for January
                           31, 1998 and January 31, 1997 prepared by the
                           Company, (b) read the minutes of the meetings of the
                           stockholders, directors and committees of the board
                           of directors of the Company made available to them by
                           the Company and (c) made inquiries of certain
                           officials of the Company who have responsibility for
                           financial and accounting matters of the Company
                           whether the financial statements referred to in
                           clause (a) above are stated on a basis substantially
                           consistent with that of the audited combined
                           financial statements included in the Final
                           Memorandum; and

                                    (ii) they have performed certain specified
                           procedures as a result of which they determined that
                           certain information of an accounting, financial or
                           statistical nature (which is limited to accounting,
                           financial or statistical information derived from the
                           general accounting records of the Company) set forth
                           in the Final Memorandum, including without limitation
                           the information set forth under the captions
                           "Summary," "Selected Historical Combined Financial
                           Data," "Management's Discussion and Analysis of
                           Financial Condition and Results of Operations,"
                           "Business" and "Certain Relationships and Related
                           Transactions," in the Final Memorandum, agrees with
                           the accounting records of the Company, excluding any
                           questions of legal interpretation.

                  All references in this Section 6(e) to the Final Memorandum
shall be deemed to include any amendment or supplement thereto at the date of
the letter.

                  (f) Subsequent to the Execution Time or, if earlier, the dates
         as of which information is given in the Final Memorandum and prior to
         the Closing Date, there shall not have been (i) any change or decrease
         specified in the letter or letters referred to in paragraph (d) of this
         Section 6, or (ii) any change, or any development involving a
         prospective change, in or affecting the business or properties of the
         Company, the effect of which, in any case referred to in clause (i) or
         (ii) above, is, in the judgment of the Initial Purchasers, so material
         and adverse as to make it impractical or inadvisable to market the
         Notes as contemplated by the Final Memorandum.

                  (g) Subsequent to the respective dates as of which information
         is given in the Final Memorandum and after giving effect to the
         Transactions, (i) the Company shall not have incurred any material
         liability or obligation, direct or contingent, or entered into any
         material transaction not in the ordinary course of business; (ii) the
         Company shall not have purchased any of its outstanding Capital Stock,
         nor declared, paid or otherwise made any dividend or distribution of
         any kind on its Capital Stock; (iii) there shall not

                                      -22-
<PAGE>

         have been any material change in the Capital Stock of the Company or in
         the short-term debt or long-term debt of the Company; and (iv) none of
         the assets of the Company shall have materially diminished in value,
         except in each case as described in or contemplated by the Final
         Memorandum.

                  (h) Subsequent to the Execution Time and prior to the Closing
         Date, there shall not have been any decrease in the rating of the Notes
         by any "nationally recognized statistical rating organization" (as
         defined for purposes of Rule 436(g)(2) under the Securities Act) or any
         notice given of any intended or potential decrease in any such rating
         or of a possible change in any such rating that does not indicate the
         direction of the possible change.

                  (i) On or prior to the Closing Date, each of the Transaction
         Documents (including any amendments thereto) shall have been duly
         authorized, executed and delivered by each of the parties thereto, and
         the Initial Purchasers shall have received copies of each such
         Transaction Document (including any amendments thereto) as so executed
         and delivered in the form provided to the Initial Purchasers on or
         before the date hereof except for changes approved by the Initial
         Purchasers or changes which do not materially affect the rights or
         obligations of the Company.

                  (j) The Company shall have been advised by the National
         Association of Securities Dealers, Inc. (the "NASD") that the Notes
         have been designated PORTAL eligible securities in accordance with the
         Rules and regulations of the NASD relating to trading in the Private
         Offerings, Resales and Trading through Automated Linkages Market (the
         "PORTAL Market").

                  (k) On or before the Closing Date, all conditions to
         borrowings under the Bank Facility shall have been satisfied or waived,
         the initial borrowings thereunder shall have occurred concurrently with
         the closing of the sale of the Notes hereunder as contemplated in the
         Final Memorandum and all representations and warranties of the Company
         contained in the Bank Facility shall be true and correct in all
         material respects on the Closing Date as if made on the Closing Date.

                  (l) On or before the Closing Date, all conditions to
         consummation of the Recapitalization pursuant to the Stock Purchase
         Agreement shall have been satisfied or waived, the consummation of the
         Recapitalization shall have occurred concurrently with the closing of
         the sale of the Notes hereunder as contemplated in the Final Memorandum
         and all representations and warranties of the Company contained in the
         Stock Purchase Agreement shall be true and correct in all material
         respects on the Closing Date as if made on the Closing Date.

                  (m) Prior to the Closing Date, the Company shall have
         furnished to the Initial Purchasers such further information,
         certificates and documents as the Initial Purchasers may reasonably
         request.

                                      -23-
<PAGE>

                  If any of the conditions specified in this Section 6 shall not
have been fulfilled in all material respects when and as provided in this
Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement shall not be in all material respects reasonably
satisfactory in form and substance to the Initial Purchasers and Counsel for the
Initial Purchasers, this Agreement and all obligations of the Initial Purchasers
hereunder may be canceled at the Closing Date by the Initial Purchasers. Notice
of such cancellation shall be given to the Company in writing or by telephone or
by telegraph confirmed in writing.

                  The documents required to be delivered by this Section 6 will
be delivered at the office of Counsel for the Initial Purchasers on the Closing
Date.

                  7. Reimbursement of Expenses; Fees. The Company will, whether
or not the sale of the Notes provided for herein is consummated, pay all
expenses incident to the performance of its obligations under this Agreement and
the offering documents, including the fees and disbursements of its accountants
and counsel, the costs of printing or other production and delivery of the
Preliminary Memorandum, the Final Memorandum, all amendments thereof and
supplements thereto, each Transaction Document and all other documents relating
to the offering of the Notes, the costs of preparing, printing, packaging and
delivering the Notes, the fees and disbursements, including reasonable fees of
counsel incurred in compliance with Section 5(d), the fees and disbursements of
the Trustee and the fees of any agency that rates the Notes, and the fees and
expenses, if any, incurred in connection with the admission of the Notes for
trading in the PORTAL Market.

                  8. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless the Initial Purchasers, the directors, officers,
employees and agents of the Initial purchasers and each person who controls any
of the Initial Purchasers within the meaning of either the Securities Act or the
Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the Securities
Act, the Exchange Act or other federal or state statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the
Preliminary Memorandum, the Final Memorandum or any information provided by the
Company to any Holder or prospective purchaser of Notes pursuant to Section
5(i), or in any amendment thereof or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and
agrees to reimburse each such indemnified party, as incurred, for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any case to the extent that any such
loss, claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made in
the Preliminary Memorandum or the Final Memorandum, or in any amendment thereof
or supplement thereto, in reliance upon and in conformity with written
information relating to the Initial Purchasers furnished to the Company by or on
behalf of the Initial Purchasers specifically for inclusion therein; and,
provided, further, that with respect to any untrue statement or omission of
material fact made in the Preliminary Memorandum, the indemnity agreement
contained in this Section 8(a) shall not inure to the benefit of the Initial

                                      -24-
<PAGE>

Purchasers to the extent that any such losses, claims, damages or liabilities
asserted against the Initial Purchasers occurs under circumstances where it
shall have been determined by a court of competent jurisdiction by final and
nonappealable judgment that (x) the Company had previously furnished copies of
the Final Memorandum to the Initial Purchasers as required by this Agreement,
(y) the untrue statement or omission of a material fact contained in the
Preliminary Memorandum was corrected in the Final Memorandum and (z) there was
not sent or given to such person asserting any such losses, claims, damages or
liabilities, at or prior to the written confirmation of the sale of Notes to
such person, a copy of the Final Memorandum. Notwithstanding the foregoing, in
the event that it is finally determined by a court of competent jurisdiction
that indemnification under this Section 8(a) is not available to an indemnified
party, expenses paid in advance of the final disposition of such claim shall be
repaid to the Company by such indemnified party. This indemnity agreement will
be in addition to any liability which the company may otherwise have.

                  (b) The Initial Purchasers agree to indemnify and hold
         harmless the Company, its directors, officers, employees and agents and
         each person who controls the Company within the meaning of either the
         Securities Act or the Exchange Act to the same extent as the foregoing
         indemnity from the Company to the Initial Purchasers, but only with
         reference to written information relating to the Initial Purchasers
         furnished to the Company by or on behalf of the Initial Purchasers
         specifically for inclusion in the documents referred to in the
         foregoing indemnity. This indemnity agreement will be in addition to
         any liability which the Initial Purchasers may otherwise have. The
         Company acknowledges that the statements set forth in the last
         paragraph of the cover page and under the headings "Transfer
         Restrictions" and "Plan of Distribution" in the Preliminary Memorandum
         and the Final Memorandum constitute the only information furnished in
         writing by or on behalf of the Initial Purchasers for inclusion in the
         Preliminary Memorandum or Final Memorandum (or in any amendment or
         supplement thereto).

                  (c) Promptly after receipt by an indemnified party under this
         Section 8 of notice of the commencement of any action, such indemnified
         party will, if a claim in respect thereof is to be made against the
         indemnifying party under this Section 8, notify the indemnifying party
         in writing of the commencement thereof; but the failure so to notify
         the indemnifying party (i) will not relieve it from liability under
         paragraph (a) or (b) above unless and to the extent it did not
         otherwise learn of such action and such failure results in the
         forfeiture by the indemnifying party of substantial rights and defenses
         and (ii) will not, in any event, relieve the indemnifying party from
         any obligations to any indemnified party other than the indemnification
         obligation provided in paragraph (a) or (b) above. The indemnifying
         party shall be entitled to appoint counsel of the indemnifying party's
         choice at the indemnifying party's expense to represent the indemnified
         party in any action for which indemnification is sought (in which case
         the indemnifying party shall not thereafter be responsible for the fees
         and expenses of any separate counsel retained by the indemnified party
         or parties except as set forth below); provided, however, that such
         counsel shall be satisfactory to the indemnified party. Notwithstanding
         the indemnifying party's election to appoint counsel to represent the
         indemnified party in an action, the indemnified party shall have the
         right to employ separate counsel (including local counsel), and the
         indemnifying party shall bear the reasonable fees, costs and expenses
         of such separate counsel (and local counsel) if (i) the

                                      -25-
<PAGE>

         use of counsel chosen by the indemnifying party to represent the
         indemnified party would present such counsel with a conflict of
         interest, (ii) the actual or potential defendants in, or targets of,
         any such action include both the indemnified party and the indemnifying
         party and the indemnified party shall have reasonably concluded that
         there may be legal defenses available to it and/or other indemnified
         parties which are different from or additional to those available to
         the indemnifying party, (iii) the indemnifying party shall not have
         employed counsel satisfactory to the indemnified party to represent the
         indemnified party within a reasonable time after notice of the
         institution of such action or (iv) the indemnifying party shall have
         authorized the indemnified party to employ separate counsel at the
         expense of the indemnifying party; provided further, that the
         indemnifying party shall not be responsible for the fees and expenses
         of more than one separate counsel (together with appropriate local
         counsel) representing all the indemnified parties under paragraph (a)
         or paragraph (b) above. An indemnifying party will not, without the
         prior written consent of the indemnified party, settle or compromise or
         consent to the entry of any judgement with respect to any pending or
         threatened claim, action, suit or proceeding in respect of which
         indemnification or contribution may be sought hereunder (whether or not
         an indemnified party is an actual or potential party to such claim or
         action) unless such settlement, compromise or consent includes an
         unconditional release of each indemnified party from all liability
         arising out of such claim, action, suit or proceeding.

                  (d) In the event that the indemnity provided in paragraph (a)
         or (b) of this Section 8 is unavailable or insufficient to hold
         harmless an indemnified party for any reason, the Company, on the one
         hand, and the Initial Purchasers, on the other, agree to contribute to
         the aggregate losses, claims, damages and liabilities (including legal
         or other expenses reasonably incurred in connection with investigating
         or defending same) (collectively "Losses") to which the Company, on the
         one hand, and any Initial Purchaser, on the other, may be subject in
         such proportion as is appropriate to reflect the relative benefits
         received by the Company, on the one hand, and by the Initial
         Purchasers, on the other, from the offering of the Notes; provided,
         however, that in no case shall any Initial Purchaser be responsible for
         any amount in excess of the purchase discount or commission applicable
         to the Notes purchased by such Initial Purchaser hereunder. If the
         allocation provided by the immediately preceding sentence is
         unavailable for any reason, the Company, on the one hand, and any
         Initial Purchasers, on the other, shall contribute in such proportion
         as is appropriate to reflect not only such relative benefits but also
         the relative fault of the Company, on the one hand, and of any Initial
         Purchaser, on the other, in connection with the statements or omissions
         that resulted in such Losses as well as any other relevant equitable
         considerations. Benefits received by the Company shall be deemed to be
         equal to the total net proceeds from the offering (before deducting
         expenses), and benefits received by any Initial Purchaser shall be
         deemed to be equal to the total purchase discounts and commissions
         received by such Initial Purchaser from the Company in connection with
         the purchase of the Notes hereunder. Relative fault shall be determined
         by reference to, among other things, whether any alleged untrue
         statement or omission relates to information provided by the Company or
         any Initial Purchaser and the parties' relative intent, knowledge,
         access to information and opportunity to correct or prevent such
         statement or omission. The Company and the Initial Purchasers agree
         that it would not be just and equitable if contribution were determined
         by pro rata allocation or

                                      -26-
<PAGE>

         any other method of allocation that does not take account of the
         equitable considerations referred to above. The amount paid or payable
         by an indemnified party as a result of the losses, claims, damages,
         liabilities, expenses or judgments referred to in this paragraph (d)
         shall be deemed to include, subject to the limitations set forth above,
         any legal or other expenses reasonably incurred by such indemnified
         person in connection with investigating or defending any such action or
         claim. Notwithstanding the provisions of this paragraph (d), no person
         guilty of fraudulent misrepresentation (within the meaning of Section
         11(f) of the Securities Act) shall be entitled to contribution from any
         person who was not guilty of such fraudulent misrepresentation. For
         purposes of this Section 8, each person who controls any of the Initial
         Purchasers within the meaning of either the Securities Act or the
         Exchange Act and each director, officer, employee and agent of the
         Initial Purchasers shall have the same rights to contribution as the
         Initial Purchasers, and each person who controls the Company within the
         meaning of either the Securities Act or the Exchange Act and each
         officer, director, employee and agent of the Company shall have the
         same rights to contribution as the Company, subject in each case to the
         applicable terms and conditions of this paragraph (d).

                  9. Termination. This Agreement shall be subject to termination
by notice given by the Initial Purchasers to the Company prior to delivery of
and payment for the Notes if, after the date hereof and prior to such time,
there shall have occurred a material adverse change in the condition of the
financial, banking or capital markets the effect of which, in the judgment of
the initial Purchasers, makes it impractical to market the Notes or to enforce
sale contracts with respect to the Notes.

                  10. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Initial Purchasers set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of
any investigation made by or on behalf of the Initial Purchasers or the Company
or any of its officers, directors or controlling persons referred to in Section
8 hereof, and will survive delivery of and payment for the Notes. The provisions
of Sections 7 and 8 hereof shall survive the termination or cancellation of this
Agreement.

                  11. Notices. All communications hereunder will be in writing
and effective only on receipt, and, if sent to the Initial Purchasers, will be
mailed, delivered or telecopied and confirmed to it at 301 South College Street,
TW-10, Charlotte, NC 28288-0606, Telecopy No.: (704) 383-9527, Attention: Eric
Lloyd; or, if sent to the Company, will be mailed, delivered or telecopied and
confirmed to them at 220 Division Street, Kingston, PA 18704, Telecopy No.:
(717) 287-2149, Attention: General Counsel.

                  12. Successors. This Agreement will inure to the benefit of
and be binding upon the parties hereto and their respective successors and
assigns and the officers and directors and controlling persons referred to in
Section 8 hereof, and, except as expressly set forth in Section 5(i) hereof,
nothing expressed or mentioned in this Agreement is intended or shall be
construed to give any other person, firm, corporation or other entity any legal
or equitable right, remedy or claim under or in respect to this Agreement or any
provisions herein contained. No purchaser of Notes from the Initial Purchasers
shall be deemed to be a successor merely by reason of such purchase.

                                      -27-
<PAGE>

                  13. Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED IN SAID STATE.

                  14. Business Day. For purposes of this Agreement, "Business
Day" means any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of Charlotte, North Carolina or of New York, New York, or
is a day on which banking institutions therein located are authorized or
required by law or other governmental action to close.

                  15. Counterparts. This Agreement may be executed in one or
more counterparts, each of which will be deemed to be an original, but all such
counterparts will together constitute one and the same instrument.

                                      -28-

<PAGE>

                  If the foregoing is in accordance with your understanding of
our agreement, please sign and return to us the enclosed duplicate hereof,
whereupon this Agreement and your acceptance shall represent a binding agreement
among the Company and the Initial Purchasers.

                                          Very truly yours,

                                          DIAMOND TRIUMPH AUTO GLASS, INC.

                                          By:     /s/ Kenneth Levine
                                                  ------------------------------
                                                  Name:  Kenneth Levine
                                                  Title: CEO

The foregoing Agreement is hereby
confirmed and accepted as of the
date first written above on behalf of itself
and the other Initial Purchasers

FIRST UNION CAPITAL MARKETS,
A DIVISION OF WHEAT FIRST SECURITIES, INC.

 By:  /s/ Eric Lloyd
      ---------------------------
      Name:  Eric Lloyd
      Title: Director

<PAGE>Exhibit 10.1

                             MANAGEMENT SUBSCRIPTION
                           AND STOCKHOLDERS AGREEMENT

         This   Management   Subscription   and   Stockholders   Agreement  (the
"Agreement")  is entered into as of March 31, 1998 by and among Diamond  Triumph
Auto Glass, Inc., a Delaware corporation (the "Company"), Green Equity Investors
II, L.P., a Delaware limited partnership  ("GEI"),  and the person identified on
Annex A attached hereto (hereinafter referred to as the "Management  Investor"),
with reference to the following facts:

         WHEREAS, GEI is the principal shareholder of the Company;

         WHEREAS,  Management  Investor is a key executive of the Company or one
of  its  subsidiaries  and,  accordingly,  as an  incentive  to  the  Management
Investor,  the Company desires to issue  uncertificated  shares of the Company's
common  stock (the  "Common  Stock")  to the  Management  Investor  as set forth
herein; and

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable   consideration,   the  receipt   and   adequacy  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

         1.       Management Investor Representations.

                  (a) Investment  Risk. The Management  Investor  represents and
acknowledges  that (i) as a result of the  Management  Investor's  (A)  existing
relationship  with the  Company  and by virtue of being a key  executive  of the
Company or one of its subsidiaries, and (B) experience in financial matters, the
Management  Investor is properly  able to evaluate the capital  structure of the
Company, the business of the Company and its subsidiaries and the risks inherent
therein;  (ii) the Management  Investor has been given the opportunity to obtain
any additional  information or documents from and to ask questions,  and receive
answers of, the officers and representatives of the Company and its subsidiaries
to the  extent  necessary  to  evaluate  the  merits  and  risks  related  to an
investment in the Company;  (iii) the Management  Investor has been and will be,
to the extent the Management Investor deems necessary,  advised by legal counsel
of  the  Management  Investor's  choice  at  Management  Investor's  expense  in
connection  with  this  Agreement  and the  issuance  and sale of  Common  Stock
hereunder and (iv) the purchase of Common Stock hereunder will be consistent, in
both  nature and  amount,  with the  Management  Investor's  overall  investment
program  and  financial  condition,  and  the  Management  Investor's  financial
condition  will be such that the  Management  Investor  will be able to bear the
economic risk of holding  unregistered Common Stock for which there is no market
and to suffer a complete loss of the Management  Investor's  investment therein.
The Management Investor further acknowledges that investment in the Common Stock
hereunder  involves  significant  risks and that these  risks  include,  without
limitation, the fact that the Company will have a leveraged financial structure.

<PAGE>

                  (b)      Purchase for Investment.

                           (i) The Management  Investor  represents and warrants
that: (A) the Common Stock acquired by the Management Investor hereunder will be
acquired for the Management  Investor's own account for investment,  without any
present intention of selling or further distributing the same and the Management
Investor  does not have any reason to  anticipate  any change in the  Management
Investor's  circumstances or any other particular  occasion or event which would
cause the Management Investor to desire to sell any of such Common Stock and (B)
the  Management  Investor  is fully aware that in agreeing to sell or issue such
Common  Stock to the  Management  Investor  the Company will be relying upon the
truth and  accuracy of these  representations  and  warranties.  The  Management
Investor agrees that the Management  Investor will not sell or otherwise dispose
of any Common Stock except in  compliance  with the  Securities  Act of 1933, as
amended (the "Act"),  the rules and  regulations  of the Securities and Exchange
Commission  thereunder,  the relevant state  securities  laws  applicable to the
Management Investor's action and the terms of this Agreement.

                           (ii)  Subject to Section 6 below,  in addition to the
other restrictions  provided in this Agreement,  the Management  Investor agrees
that prior to making any  disposition  of any Common  Stock  acquired  hereunder
(other than a disposition to the Company), the Management Investor will give not
less than 10 days' advance  written notice to the Company  describing the manner
of such proposed  disposition.  The Management  Investor further agrees that the
Management  Investor will not effect such proposed  disposition until either (A)
the  Management  Investor has  provided to the  Company,  if so requested by the
Company, an opinion of counsel reasonably  satisfactory in form and substance to
the Company that such proposed disposition is exempt from registration under the
Act and any applicable  state  securities  laws or (B) a registration  statement
under the Act covering such proposed  disposition  has been filed by the Company
under the Act and has become  effective and  compliance  with  applicable  state
securities laws has been effected.

                           (iii) The Management  Investor  acknowledges  that no
trading market for the Common Stock exists  currently or is expected to exist at
any time in the  foreseeable  future  and  that,  as a  result,  the  Management
Investor may be unable to sell any of the Common Stock acquired hereunder for an
indefinite period. Further, the Company has no obligation to register any of the
Common Stock, except as expressly provided in Section 7 of this Agreement.

                           (iv) The Management Investor  acknowledges and agrees
that nothing herein,  including the opportunity to make any equity investment in
the Company,  shall be deemed to create any implication  concerning the adequacy
of the Management  Investor's services to the Company or any of its subsidiaries
or shall be construed as an agreement by the Company or any of its subsidiaries,
express or  implied,  to employ the  Management  Investor  or  contract  for the
Management  Investor's services,  to restrict the right of the Company or any of
its subsidiaries to discharge the Management  Investor or cease  contracting for
the Management  Investor's services or to modify,  extend or otherwise affect in
any manner  whatsoever  the terms of any  employment  agreement  or contract for
services which may exist between the Management  Investor and the Company or any
of its subsidiaries.

                                      -2-

<PAGE>

         2.       Grant of Management Shares and Legend on Certificates.

                  (a) Grant of Management  Shares.  The Company hereby grants to
the Management  Investor the right to purchase,  on the terms and conditions set
forth in this  Agreement,  all or any part of the number of shares  indicated on
Annex A hereto at the purchase price of $20.00 (the "Purchase Price") per share.
All shares of Common Stock issued hereunder shall be subject to all of the terms
and restrictions  contained in this Agreement,  including,  without  limitation,
those in  Sections  1(b),  3, 4, 8 and 9, and  shall be  uncertificated  shares.
Subject to the  limitations  set forth in Section 2(b), the Management  Investor
shall be entitled,  upon written  request to the Company,  to have a certificate
issued to him or her representing Common Stock issued hereunder.

                  (b) Legend on Certificates.  Each stock certificate  issued to
the Management Investor upon written request to the Company  representing Common
Stock issued  hereunder shall bear the following (or  substantially  equivalent)
legends on the face or reverse side thereof:

                  THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN
                  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"),  AND  MAY  NOT  BE  SOLD,  TRANSFERRED,   ASSIGNED  OR
                  HYPOTHECATED   UNLESS  THERE  IS  AN  EFFECTIVE   REGISTRATION
                  STATEMENT UNDER THE ACT COVERING SUCH SECURITIES,  THE SALE IS
                  MADE IN ACCORDANCE  WITH RULE 144 OR ANY SUCCESSOR  RULE UNDER
                  THE ACT OR DIAMOND  TRIUMPH AUTO GLASS,  INC. (THE  "COMPANY")
                  RECEIVES  AN OPINION OF COUNSEL  SATISFACTORY  TO THE  COMPANY
                  THAT AN EXEMPTION  FROM SUCH  REGISTRATION  IS AVAILABLE.  THE
                  SECURITIES  REPRESENTED BY THIS  CERTIFICATE  ARE SUBJECT TO A
                  MANAGEMENT SUBSCRIPTION AND STOCKHOLDERS AGREEMENT DATED AS OF
                  MARCH 31,  1998,  AMONG THE  PURCHASER  PARTY  THERETO,  GREEN
                  EQUITY INVESTORS II, L.P., AND THE COMPANY, A COPY OF WHICH IS
                  ON FILE WITH THE SECRETARY OF THE COMPANY,  AND THE SECURITIES
                  REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,  SOLD,
                  ASSIGNED,  PLEDGED,  HYPOTHECATED  OR  OTHERWISE  DISPOSED  OF
                  UNLESS SUCH TRANSFER, SALE, ASSIGNMENT,  PLEDGE, HYPOTHECATION
                  OR OTHER  DISPOSITION  COMPLIES  WITH THE  PROVISIONS  OF SUCH
                  AGREEMENT.

Any stock  certificate  issued at any time in exchange or  substitution  for any
certificates  bearing such  legends  (except a new  certificate  issued upon the
completion of a public  distribution of Common Stock represented  thereby) shall
also bear such (or substantially  equivalent)  legends,  unless the Common Stock
represented  by such  certificate  is no longer  subject  to the  provisions  of
Sections 1(b)(ii),  3(a), 3(b), 4, 8 and 9 of this Agreement and, in the opinion
of counsel for the

                                      -3-

<PAGE>

Company,  the  Common  Stock  represented  thereby  need no longer be subject to
restrictions pursuant to the Act or applicable state securities law. The Company
shall not be required to transfer on its books any  certificate for Common Stock
in violation of the provisions of this Agreement.

         3.       Transfer of Stock.

                  (a)  Prohibition  on Transfer.  Subject to the  provisions  of
Section 6, neither the  Management  Investor nor any other Holder (as defined in
Section 7(a)) shall,  on or prior to the fifth  anniversary  of this  Agreement,
directly or indirectly, sell, pledge, give, bequeath, transfer, assign or in any
other way whatsoever  encumber or dispose of (a  "transfer")  any Covered Shares
(as defined in Section 7(a)) (or any interest therein), except for transfers (i)
pursuant to this  Section 3 or Sections 4, 7, 8, or 9 of this  Agreement or (ii)
as may be  specifically  authorized  by the Board of Directors of the Company in
its sole discretion (either of (i) or (ii), a "Permitted Transfer").

                  (b) Transfer  Procedure;  Right of First Refusal.  Neither the
Management  Investor  nor any  other  Holder  shall,  prior to the  lapse of the
restriction in clause (a) of this Section 3, transfer any Covered Shares (or any
interest  therein),  except for  Permitted  Transfers or transfers in accordance
with the following:

                           (i) If any  Holder  shall  have  received a bona fide
         arms'  length  written  offer (a "Bona Fide  Offer")  which such Holder
         desires to accept from an  independent  party  unrelated to such Holder
         (the  "Outside   Party")  for  the  purchase  of  Covered   Shares  for
         consideration  consisting entirely of cash, then such Holder shall give
         a notice in writing  (the  "Option  Notice") to GEI setting  forth such
         desire,  which  notice shall set forth at least the name and address of
         the Outside Party and the price and terms of the Bona Fide Offer and be
         accompanied by a copy of the Bona Fide Offer.

                           (ii) Upon the giving of such Option Notice, GEI shall
         have an option  (transferable,  in the sole  discretion  of GEI,  to an
         Affiliate  (as  defined in Section  7(b)) of GEI or to the Company or a
         subsidiary  of the  Company)  to  purchase  all of the  Covered  Shares
         specified  in the Option  Notice,  said option to be  exercised  within
         thirty  (30) days after the giving of such Option  Notice,  by giving a
         counter-notice (the "Election Notice") to the Holder.

                           (iii) If GEI (or an  Affiliate of GEI, the Company or
         a subsidiary of the Company,  if applicable)  elects to purchase all of
         such Covered Shares, it shall be obligated to purchase,  and the Holder
         shall be obligated to sell,  such Covered  Shares at the cash price and
         terms indicated in the Bona Fide Offer,  except that the closing of the
         purchase by GEI (or an Affiliate of GEI, the Company or a subsidiary of
         the  Company,  if  applicable)  shall be held on a business  day within
         sixty (60) days after the giving of the Election  Notice at 10:30 a.m.,
         Eastern  Standard  Time,  at  the  principal  executive  office  of the
         Company,  or at such other time and place as may be mutually  agreed to
         by GEI (or an  Affiliate  of GEI,  the Company or a  subsidiary  of the
         Company, if applicable) and the Holder.

                                      -4-

<PAGE>

                           (iv) If an Election  Notice is not  delivered  by GEI
         (or an Affiliate of GEI, the Company or a subsidiary of the Company, if
         applicable)  within the period specified above, the Holder  thereafter,
         at any time  within a period of sixty (60) days from the giving of said
         Option Notice, may transfer all (but not less than all) of such Covered
         Shares to the Outside  Party at the cash price and terms  contained  in
         the Bona Fide Offer,  and the Outside Party shall thereafter be subject
         to and  bound by all of the  provisions  of this  Agreement  and,  as a
         condition  precedent  to the  completion  of such  transfer  of Covered
         Shares to such  Outside  Party,  such Outside  Party shall  execute and
         deliver to the Company and GEI a written consent to such effect in form
         and substance  satisfactory to the Company and GEI; provided,  however,
         that in the event the Holder has not so transferred said Covered Shares
         to the  Outside  Party  within  said sixty (60) day  period,  then said
         Covered  Shares  thereafter  shall continue to be subject to all of the
         restrictions contained in this Agreement.

                           (c) No Waiver by GEI. Any election in any instance by
GEI (or an  Affiliate of GEI,  the Company or a  subsidiary  of the Company,  if
applicable)  not to exercise  its rights of first  refusal  under this Section 3
shall not  constitute a waiver of such rights with respect to any other proposed
transfer of Covered Shares.

                           (d) Transfer to Related Transferees.  Notwithstanding
anything to the contrary contained in clauses (a) through (c) of this Section 3,
the Management  Investor or any other Holder may transfer Covered Shares without
restriction to the Management  Investor's Related Transferees (as defined below)
provided  that each such  Related  Transferee  shall first (i) execute a written
consent in form and substance satisfactory to the Company and GEI to be bound by
all of the  provisions of this  Agreement and (ii) give a duplicate  original of
such consent to the Company and GEI. The "Related Transferees" of the Management
Investor  shall consist of the  Management  Investor's  spouse,  the  Management
Investor's  adult  lineal   descendants,   the  adult  spouses  of  such  lineal
descendants,  trusts solely for the benefit of the Management  Investor's spouse
or the Management Investor's minor or adult lineal descendants and, in the event
of  death,  the  Management   Investor's  personal   representatives  (in  their
capacities  as  such),  estate  and  named  beneficiaries.  In the  event of any
transfer by the  Management  Investor to his Related  Transferees  of all or any
part of the Covered  Shares (or in the event of any  subsequent  transfer by any
such  Related  Transferee  to  another  Related  Transferee  of  the  Management
Investor),  such Related  Transferees shall receive and hold said Covered Shares
subject  to and be  bound  by the  terms of this  Agreement.  There  shall be no
further  transfer  of such  Covered  Shares  by a Related  Transferee  except as
permitted by this Agreement.

         4.       "Call" Option.

                  (a)  Upon  the   termination  of  the  Management   Investor's
employment  with,  or cessation of services as a director of, the Company or any
of its  subsidiaries  for any reason  (including  without  limitation  Voluntary
Termination,  a Just Cause Dismissal,  Involuntary  Termination Without Cause or
the  Retirement,  death or Permanent  Disability of the Management  Investor (as
such terms are defined in Section 5 below)) (a "Call Purchase  Event"),  subject
to the provisions of Section 6 and this Section 4, the Company shall give prompt
written notice of such  termination or cessation to GEI and GEI (or an Affiliate
of GEI  designated by GEI) may, at its

                                      -5-

<PAGE>

option  exercisable  by written  notice (a "Purchase  Notice")  delivered to the
Management  Investor  and each other  Holder  within  ninety (90) days after the
applicable  Call Purchase Event (or, in the event the  applicable  Call Purchase
Event is the death of the Management Investor, within thirty (30) days after the
appointment and  qualification of the deceased  Management  Investor's  personal
representative,  if  later),  elect to  purchase  and,  upon the  giving of such
notice,  GEI (or an  Affiliate of GEI  designated  by GEI) shall be obligated to
purchase  and the  Management  Investor  and each other Holder (each a "Seller")
shall be obligated to sell, all, or any lesser portion indicated in the Purchase
Notice, of the Covered Shares held by such Holder at a per share price equal to:

                           (i) in the case of  Voluntary  Termination  or a Just
         Cause Dismissal,  the lower of the Adjusted  Purchase Price or the Fair
         Market Value (as each such term is defined in Section 5 below); or

                           (ii) in the case of any other termination  (including
         without  limitation  Involuntary   Termination  Without  Cause,  death,
         Retirement or Permanent Disability), the Fair Market Value.

                                      -6-

<PAGE>

Notwithstanding the foregoing provisions of this Section 4(a), in the event that
the  applicable  Call  Purchase  Event  occurs more than one year after the date
hereof,  in the case of Voluntary  Termination  or a Just Cause  Dismissal,  the
price per share for the Applicable Percentage of the Covered Shares held by each
Holder shall be the Fair Market Value and the price per share for the  remaining
Covered  Shares held by such Holder shall be the lower of the Adjusted  Purchase
Price or the Fair Market Value. The "Applicable  Percentage" shall be determined
from the following table, based upon the period during which the applicable Call
Purchase Event occurs.

                 Period during which Call
                 Purchase Event Occurs      Applicable Percentage

                 12 months commencing on the
                 first anniversary of the
                 date of this Agreement                          33-1/3%

                 12 months commencing on the
                 second anniversary of the
                 date of this Agreement                          66-2/3%

                 On or after the third anniversary
                 of the date of this Agreement                      100%

If, as a result of the provisions of the two preceding sentences,  there are two
different  prices per share applicable to the Covered Shares held by each Holder
and  less  than all  Covered  Shares  held by each  Holder  are to be  purchased
pursuant to this Section 4, the Covered  Shares not  purchased  from such Holder
shall be those having the higher price per share.

                  (b) If GEI (or an Affiliate of GEI designated by GEI) does not
elect to exercise its option set forth in  paragraph  (a) of this Section 4, GEI
shall give written  notice that it is not so electing to the Company  within the
time periods  specified in paragraph (a) of this Section 4 for the giving of the
Purchase  Notice.  Upon receipt of such notice from GEI, the Company  shall have
the  option,  exercisable  by  written  notice  (a  "Company  Purchase  Notice")
delivered to the  Management  Investor and each other Holder within fifteen (15)
days after  receipt of such notice from GEI, to purchase  from each Seller (and,
upon the giving of the Company Purchase  Notice,  the Company shall be obligated
to  purchase  and each  Seller  shall be  obligated  to sell) all, or any lesser
portion  indicated in the Company Purchase Notice, of the Covered Shares held by
such Seller at the per share price set forth in paragraph (a) of this Section 4.

                  (c) In the event a purchase of Covered Shares pursuant to this
Section 4 by the  Company  shall be  prohibited  by law or would cause a default
under the terms of any indenture or loan agreement or other  instrument to which
the Company or any of its  subsidiaries  may be a party, the obligations of each
Seller and the Company  pursuant to this Section 4 shall be suspended until such
time as such prohibition  first lapses or is waived and no such default would be
caused; provided, however, that (x) the purchase price to be paid by the Company
for the Covered  Shares  shall accrue  interest at the lowest rate  necessary to
prevent the imputation of interest or original issue discount under the Internal
Revenue Code of 1986, as amended,  reduced

                                      -7-

<PAGE>

by any dividends or  distributions  on such Covered  Shares during the period of
such  suspension,  which interest  shall likewise be paid when such  prohibition
first  lapses or is waived  and no such  default  would be caused and (y) in the
event of any such suspension,  if GEI so elects and no violation of law would be
caused and no default  under the terms of any  indenture  or loan  agreement  or
other  instrument to which the Company or any of its subsidiaries may be a party
would result, the Company shall transfer its obligations under this Section 4 to
GEI or to an Affiliate of GEI, in which case GEI or the  Affiliate  (as the case
may be) and the  Seller(s)  shall be  obligated to complete the purchase of such
Covered Shares pursuant to this Section 4.

         5. Purchase Price, Closing and Terms of Payment for "Call" Sales.

                  (a)      (i) For purposes of this Agreement,  the "Fair Market
Value" of each share of Common Stock shall be  determined  as of the time of the
Call Purchase  Event by the Board of Directors of the Company in the exercise of
its reasonable discretion;  provided,  however, that such determination shall be
based upon the Company as a going  concern and shall not  discount  the value of
such shares  either  because they are subject to the  restrictions  set forth in
this  Agreement  or because  they  constitute  only a minority  interest  in the
Company.  Upon  delivery of notice of such Fair  Market  Value to GEI and to the
Seller(s) of Common  Stock  pursuant to Section 4 (which  shall  indicate,  in a
general fashion, the factors considered by the Board of Directors in determining
such amount), the Management Investor shall have ten (10) business days in which
to notify the Company in writing of any  disagreement.  If no written  notice of
disagreement  is given by the  Management  Investor,  the Fair  Market  Value as
determined  by the Board of Directors  of the Company  shall be  conclusive  and
binding on each Seller and on GEI or any Affiliate of GEI. If written  notice is
given by the  Management  Investor  of a  disagreement,  GEI and the  Management
Investor  shall  mutually  agree upon an  independent  appraiser  experienced in
making  valuations  of such sort which  shall make a  determination  of the Fair
Market Value. Such determination shall be final,  binding and nonappealable upon
GEI (or an Affiliate of GEI or the Company,  as applicable) and each Seller. The
costs and expenses  incurred in connection  with the  determination  made by the
independent  appraiser  shall be borne equally by GEI (or an Affiliate of GEI or
the Company, as applicable) and by the Management Investor.

                           (ii) For purposes of this  Agreement,  the  "Adjusted
Purchase Price" of each share of Common Stock shall be determined as of the time
of the Call  Purchase  Event and shall equal (A)  $20.00,  plus (or minus in the
case of a loss) (B) an amount  equal to the  quotient of (1) the  aggregate  net
income  (loss) of the Company  applicable  to the Common  Stock,  determined  in
accordance with generally accepted accounting  principles  consistently applied,
for the period (treated as one accounting  period) beginning on April 1, 1998 to
the end of the most recent fiscal  quarter  ending prior to the date of the Call
Purchase Event,  divided by (2) the number of outstanding shares of Common Stock
(determined  on a fully diluted  basis) as of the end of such most recent fiscal
quarter, less (C) an amount equal to the aggregate dividends per share of Common
Stock paid during the period from April 1, 1998 to the date of the Call Purchase
Event.

                  (b) For purposes of this  Agreement,  the Management  Investor
shall be deemed to be "Permanently  Disabled" if the Management Investor becomes
unable to engage in any substantial  gainful activity by reason of any medically
determinable  physical or mental

                                      -8-

<PAGE>

impairment  which can be  expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than twelve (12) months.
The Company, at its option and expense,  shall be entitled to retain a physician
to confirm the existence of such incapacity or disability and the  determination
of such  physician  shall be binding upon the Company (or GEI or an Affiliate of
GEI, as applicable) and each Seller;  provided,  however, that if the Management
Investor  disagrees  with such  determination  of  Permanent  Disability  within
fifteen  (15) days of being  notified  of it, the  Management  Investor  and the
Company  shall  jointly  agree upon an  independent  physician  (or, if they are
unable to agree upon such  physician,  they shall each  select a  physician  and
those two physicians shall select the independent  physician) who shall make the
determination,  whose  decision  shall be binding upon the Company (or GEI or an
Affiliate of GEI, as applicable) and each Seller.

                  (c)  For  the  purposes  of  this  Agreement,  the  Management
Investor shall be deemed to be "Involuntarily Terminated Without Cause" upon the
later of the termination of the Management  Investor's employment by, or removal
or  failure  to be  reelected  as a  director  of,  the  Company  or  any of its
subsidiaries, unless such termination, removal or failure to be reelected is due
to  Retirement,   death,   Permanent  Disability  or  a  Just  Cause  Dismissal.
"Retirement" shall mean retirement in accordance with the retirement policies or
practices  of the  Company  or its  subsidiaries  applicable  to  executives  or
directors,  as the case may be,  but in no event at an age of less than  seventy
(70).  "Voluntary  Termination"  shall mean the  termination  by the  Management
Investor of his  employment  with,  or his  resignation  or refusal to stand for
reelection  as a director  of, the Company or any of its  subsidiaries,  for any
reason other than death,  Permanent  Disability,  or  Retirement.  A "Just Cause
Dismissal" shall mean termination of the Management  Investor's employment with,
or service as a director of, the Company or any of its  subsidiaries as a result
of any of the following (each, a "Cause"):

                           (i) the Management Investor commits any act of fraud,
         intentional  misrepresentation or serious misconduct in connection with
         the  business of the  Company or its  subsidiaries,  including  but not
         limited to,  falsifying  any  documents or  agreements  (regardless  of
         form); or

                           (ii) the Management  Investor materially violates any
         rule or  policy  of the  Company  or its  subsidiaries  (A)  for  which
         violation  an  employee  may be  terminated  pursuant  to  the  written
         policies of the Company or its subsidiaries  reasonably applicable to a
         key employee,  or (B) which violation results in material damage to the
         Company or its subsidiaries,  or (C) which,  after written notice to do
         so, the Management  Investor fails to correct within a reasonable time;
         or

                           (iii) the Management  Investor  wilfully  breaches or
         habitually  neglects any material  aspect of the Management  Investor's
         duties  (A)  as  described  in  the  Management  Investor's  employment
         contract,  or (B) in the ordinary  course of the Management  Investor's
         employment or service as a director,  or (C) assigned to the Management
         Investor  by the  Company or its  subsidiaries,  which  assignment  was
         reasonable  in light of the  Management  Investor's  position  with the
         Company or its subsidiaries (all of the foregoing duties, "Duties"); or

                                      -9-

<PAGE>

                           (iv) the  Management  Investor  fails,  after written
         notice, adequately to perform any Duties and such failure is reasonably
         likely to have an adverse impact upon the Company,  its subsidiaries or
         the operations of any of them; or

                           (v)  the  Management  Investor  materially  fails  to
         comply with a direction  from the Board of  Directors of the Company or
         its subsidiaries with respect to a material matter, which direction was
         reasonable  in light of the  Management  Investor's  position  with the
         Company or its subsidiaries; or

                           (vi)   while   employed   by  the   Company   or  its
         subsidiaries,  and without the written  approval of the Chief Executive
         Officer of the  Company  (or, in case the  Management  Investor is such
         Chief Executive Officer, approval of the Company's Board of Directors),
         the Management  Investor performs services for any other corporation or
         person which competes with the Company or its subsidiaries; or

                           (vii) the Management Investor is convicted by a court
         of competent  jurisdiction  of a felony (other than a traffic or moving
         violation) or any crime involving dishonesty; or

                           (viii) the Management Investor engages in any conduct
         which is materially  injurious or damaging to the Company or any of its
         subsidiaries   or  the   reputation  of  the  Company  or  any  of  its
         subsidiaries; or

                           (ix) any willful breach by the Management Investor of
         his or her fiduciary  duties as a director of the Company or any of its
         subsidiaries.

In the event that there is a dispute  between the  Seller(s) and the Company (or
GEI or an Affiliate of GEI, as applicable) as to whether "Cause" for termination
exists:  (x) such termination shall  nonetheless be effective,  (y) such dispute
shall be subject to  arbitration  pursuant  to Section 12 (f) hereof and (z) the
payments  or  deliveries,  if  any,  to be  made  by the  Company  (or GEI or an
Affiliate of GEI, as applicable) in connection with a purchase of Covered Shares
held by the  Seller(s)  pursuant  to Section 4 shall be delayed  until the final
resolution of such dispute in such arbitration.

                           (d)  The  closing  for all  purchases  and  sales  of
Covered Shares provided for in Section 4 hereof (the "Call Closing") shall be at
the principal  executive offices of the Company at 10:30 a.m.,  Eastern Standard
Time,  on the later of (A) the sixtieth  day after the giving of the  applicable
Purchase  Notice or Company  Purchase  Notice and (B), if the per share price is
the Fair Market Value,  the thirtieth day after the final  determination  of the
Fair Market  Value of the Common Stock as set forth  above;  provided,  however,
that if any Seller is deceased on the closing  date and such  deceased  person's
personal  representative  shall not have been  appointed  and  qualified by such
date,  then the closing in respect of such Seller shall be  postponed  until the
tenth  day  after  the   appointment   and   qualification   of  such   personal
representative.  If the  aforesaid  closing  date  falls on a day which is not a
business  day, then the closing  shall be held on the next  succeeding  business
day.

                           (e) The  purchase  price for the purchase and sale of
Covered  Shares  pursuant to the  provisions  hereof  shall be paid in cash,  by
certified or by official bank check.

                                      -10-

<PAGE>

                           (f) On the  date of the  Call  Closing,  each  Seller
authorizes the Company (or the Company's  transfer  agent,  if any) to record in
the  Company's  books and records the transfer of all of such  Seller's  Covered
Shares to be sold at the Call Closing,  which are not represented by one or more
certificates  issued by the  Company,  from such Seller to the  purchaser at the
Call Closing.  On the date of the Call  Closing,  each Seller shall also deliver
all  certificates,  if any, issued by the Company which represent Covered Shares
to be sold at the Call Closing by such Seller,  duly  endorsed for transfer with
signatures guaranteed,  to the purchaser at the Call Closing. In addition,  each
Seller shall take all actions as the Company or any other  purchaser at the Call
Closing  shall request as necessary to vest in the purchaser at the Call Closing
all  shares  sold by such  Seller  pursuant  to  Section  4 hereof,  whether  in
certificated or  uncertificated  form, free and clear of all liens,  charges and
encumbrances of any kind.

         6.       Termination and Lapse of Rights and Restrictions;  Application
to Other Stock.

                  (a) The provisions of Sections 1(b)(ii),  3(a), 3(b), 4, 8 and
9 of this  Agreement  shall lapse and be of no further  effect  with  respect to
Covered  Shares upon the  commencement  of the public  trading of the  Company's
Common Stock (or any capital stock exchanged for or distributed upon such Common
Stock  as  described  in  paragraph  (b) of  this  Section  6) on  any  national
securities  exchange,  on the  NASDAQ  National  Market  System or on the NASDAQ
"Small Cap" Issues System; provided,  however, that nothing in this Section 6(a)
shall affect any options to purchase,  or any  obligations to purchase and sell,
Covered Shares which arose prior to the commencement of such public trading.

                  (b) In the event any capital stock of the Company or any other
corporation  shall be distributed on, with respect to, or in exchange for shares
of Common  Stock of the  Company as a stock  dividend,  stock  split,  spin-off,
reclassification   or   recapitalization   in  connection  with  any  merger  or
reorganization, the restrictions, rights and options set forth in Sections 3, 4,
7, 8 and 9 shall  apply with  respect to such  other  capital  stock to the same
extent as they are, or would have been applicable,  to the Covered Shares on, or
with respect to, which such other capital stock was distributed.

         7.       Piggyback Registration Rights.

                  (a)      As used in this Agreement:

                           (i) the term "Holder" means the Management  Investor,
         any Related  Transferee of the Management  Investor  and/or any Outside
         Party that, at the time, owns Covered Shares; provided,  however, that,
         unless the Company is otherwise  notified,  the record owner of Covered
         Shares shall be deemed to be the Holder of such Covered Shares;

                           (ii) the term  Covered  Shares  means  the  shares of
         Common  Stock  acquired  by the  Management  Investor  pursuant to this
         Agreement.

                  (b) Subject to the  provisions  herein,  if the Company at any
time  proposes  to  include  all or any part of GEI's  Common  Stock in a public
offering of Common Stock registered  under the Act (other than  registration (x)
on Forms S-4 or S-8 or any  successor  forms  thereto or (y) filed in connection
with an exchange  offer),  the Company shall give written notice of the

                                      -11-

<PAGE>

proposed  registration  to each  Holder at least  thirty  (30) days prior to the
filing thereof,  and each Holder shall have the right to request that all or any
part of its Covered  Shares be included in such  registration  by giving written
notice to the Company  within  fifteen (15) days after the giving of such notice
by the Company (any Holder giving the Company a notice  requesting  that Covered
Shares owned by it be included in such proposed  registration  being hereinafter
referred to in this Section 7 as a  "Registering  Holder");  provided,  however,
that (i) if the  registration  is in whole  or in part an  underwritten  primary
registration  on behalf of the Company  and the  managing  underwriters  of such
offering  determine that the aggregate amount of securities of the Company which
all Registering Holders and all other security holders of the Company,  pursuant
to contractual  rights to participate in such  registration  ("Other  Holders"),
propose to include in such registration  statement exceeds the maximum amount of
securities  that should be included  therein,  the Company  will include in such
registration,  first, the shares which the Company proposes to sell and, second,
the shares of such  Registering  Holders and other securities to be sold for the
account of Other Holders,  pro rata among all such Registering Holders and Other
Holders,  taken together,  on the basis of the relative equity  interests in the
Company of all  Registering  Holders and Other Holders who have  requested  that
securities  owned  by them be so  included  (it  being  agreed  and  understood,
however,  that such underwriters  shall have the right to eliminate entirely the
participation  in  such  registration  of  all  Registering  Holders  and  Other
Holders),  (ii) if the registration is an underwritten secondary registration on
behalf of any of the Other Holders pursuant to demand registration rights (other
than  such  right  of GEI or  its  Affiliates)  and  the  managing  underwriters
determine that the aggregate amount of securities which all Registering  Holders
and all Other  Holders  propose  to  include in such  registration  exceeds  the
maximum amount of securities that should be included  therein,  the Company will
include in such  registration,  first, the securities to be sold for the account
of the Other Holders  demanding  registration (but only to the extent such Other
Holders are entitled to demand inclusion  thereof) second,  any securities to be
sold for the account of the Company,  and, third, the shares of such Registering
Holders and other  securities  to be sold for the  account of the Other  Holders
electing to include (but not being  entitled to demand  inclusion of) securities
in such  registration,  pro rata among all such  Registering  Holders  and Other
Holders,  taken  together,  on the basis of  relative  equity  interests  in the
Company of all  Registering  Holders and such Other  Holders who have  requested
that  securities  owned by them be  included  (it being  agreed and  understood,
however,  that such underwriters  shall have the right to eliminate entirely the
participation  therein of all such  Registering  Holders  and Other  Holders not
entitled to demand  inclusion of  securities  in such  registration).  Shares of
Common  Stock  proposed  to be  registered  and  sold  for  the  account  of any
Registering  Holder  shall  be  sold to  prospective  underwriters  selected  or
approved  by the Company on the terms and  subject to the  conditions  of one or
more underwriting agreements negotiated between the Company and/or Other Holders
demanding  registration  and the  prospective  underwriters,  and  (iii)  if the
registration is an underwritten  secondary  registration on behalf of GEI or any
of its  Affiliates  pursuant  to demand  registration  rights  and the  managing
underwriters  determine  that the  aggregate  amount  of  securities  which  all
Registering  Holders  and GEI and its  Affiliates  propose  to  include  in such
registration  exceeds the maximum  amount of securities  that should be included
therein,  the  Company  will  include  in such  registration  the shares of such
Registering  Holders and other  securities to be sold for the account of GEI and
its  Affiliates  pro rata  among all such  Registering  Holders  and GEI and its
Affiliates, taken together, on the basis of the relative equity interests in the
Company of all Registering Holders and GEI and its Affiliates who have requested
that  securities  owned  by  them  be

                                      -12-

<PAGE>

included.  For the purposes hereof, an "Affiliate" of any person or entity means
any other person or entity  controlling,  controlled by or under common  control
with such  person or  entity;  provided,  however,  that none of the  Management
Stockholders (defined below) or any of their Affiliates shall be deemed to be an
Affiliate of GEI. "Management Stockholders" means, collectively,  all holders of
capital stock or other  securities  issued by the Company who are also employees
of the Company or its subsidiaries.

         In the event the Company  proposes to register  any of its Common Stock
under the Act on Form S-8 (or any successor thereto),  if the Company determines
that it is  permissible  to do so and will not result in material added costs to
the Company from such registration, the Company shall, at a Registering Holder's
request,  include in such registration a percentage of such Registering Holder's
Covered Shares equal to the percentage,  if any, of GEI's shares of Common Stock
held as of the date of this Agreement sold by GEI in private  transactions  from
the date hereof to the date of such request.

         The Registering Holders shall be permitted to withdraw all or a part of
the Covered Shares held by such Registering Holders which were to be included in
such registration at any time prior to the effective date of such  registration.
The  Company  shall  not  be  required  to  maintain  the  effectiveness  of the
registration  statement for such registration beyond the earlier to occur of 120
days after the effective date thereof or consummation of the distribution by the
Registering  Holders included in such  registration  statement.  The Company may
withdraw any registration statement at any time before it becomes effective,  or
postpone  the offering of  securities,  without  obligation  or liability to any
Holder.

                  (c) The registration  rights set forth in this Section 7 shall
terminate and be of no further effect with respect to the Covered Shares held by
a Holder:  (i) at such  time as the  Company  has  filed,  and there has  become
effective,  one  registration  statement in which all Holders have been afforded
the  opportunity  to include all Covered Shares held by them or (ii) if earlier,
after an initial  public  offering,  at such time as all Covered Shares owned by
such Holder are eligible for sale  pursuant to the  provisions of Rule 144 under
the Act.

                  (d) In connection  with any  registration  of shares under the
Act  pursuant to this  Section 7, the Company  will  furnish  each Holder  whose
Covered  Shares  are  registered  thereunder  with  a copy  of the  registration
statement  and all  amendments  thereto  and will  supply  each such Holder with
copies of any prospectus  included therein  (including a preliminary  prospectus
and all  amendments  and  supplements  thereto),  in such  quantities  as may be
reasonably  necessary  for the  purpose  of the  proposed  sale or  distribution
covered by such  registration.  The Company shall not,  however,  be required to
maintain the  registration  statement and to supply copies of a prospectus for a
period beyond 120 days after the effective date of such  registration  statement
and, at the end of such period,  the Company may deregister any shares of Common
Stock covered by such  registration  statement and not then sold or distributed.
In connection with any such  registration of shares of Common Stock, the Company
will, at the request of the managing  underwriter with respect thereto,  use its
best efforts to qualify  such  registered  shares for sale under the  securities
laws of such states as is reasonably required to permit the distribution of such
registered shares; provided,  however, that the Company shall not be required in
connection therewith or as condition thereof to qualify as a foreign corporation
or

                                      -13-

<PAGE>

to execute a general consent to service of process in any jurisdiction or become
subject to taxation in any jurisdiction.

                  (e)  Notwithstanding any other provision of this Section 7, in
the event of an underwritten  public offering of Common Stock for the account of
the  Company,  no Holder shall offer for public sale (other than as part of such
underwritten  public  offering)  any shares of Common  Stock during the ten (10)
days  prior to,  and such  number of days  (not in  excess  of 180)  after,  the
effective  date of the  registration  statement  in  connection  with such pubic
offering as the underwriters and the Company may request in writing, without the
consent of the underwriters;  provided, however, that, in the case of death of a
Holder,  if  consented  to by the  underwriters,  a Holder shall be permitted to
offer for public sale prior to the  expiration  of such period  shares of Common
Stock reasonably necessary to generate funds for the payment of estate taxes.

                  (f) Except as otherwise  required by state  securities laws or
the rules and regulations  promulgated thereunder,  all expenses,  disbursements
and fees incurred by the Company in connection with carrying out its obligations
under this Section 7 shall be borne by the Company; provided, however, that each
Holder shall pay (i) all costs and expenses of counsel for such Holder,  if such
counsel is not also counsel for the Company,  (ii) all  underwriting  discounts,
commissions  and expenses  and all transfer  taxes with respect to the shares of
Common Stock sold by such Holder and (iii) all other  expenses  incurred by such
Holder and  incidental to the sale and delivery of the shares of Common Stock to
be sold by such Holder.

                  (g) It shall be a condition of each Holder's rights  hereunder
to have Covered Shares owned by such Holder registered that:

                           (i) such Holder shall  cooperate  with the Company by
         supplying  information and executing  documents relating to such Holder
         or the  securities  of the Company  owned by such Holder in  connection
         with such registration;

                           (ii) such Holder  shall  enter into any  undertakings
         and take such other  action  relating  to the  conduct of the  proposed
         offering which the Company or the underwriters  may reasonably  request
         as  being  necessary  to  insure  compliance  with  federal  and  state
         securities  laws and the rules or other  requirements  of the  National
         Association  of  Securities  Dealers,  Inc. or which the Company or the
         underwriters  may  reasonably  request  to  otherwise   effectuate  the
         offering; and

                           (iii)  such  Holder  shall  execute  and  deliver  an
         agreement to  indemnify  and hold  harmless  the  Company,  each of its
         directors,  each  of its  officers  who  has  signed  the  registration
         statement,  any underwriter (as defined in the Act) and each person, if
         any who controls the Company or such underwriter  within the meaning of
         the Act, against such losses, claims, damages or liabilities (including
         reimbursement for legal and other expenses) to which the Company or any
         such director,  officer,  underwriter or controlling  person may become
         subject under the Act or otherwise,  in such manner as is customary for
         registration of the type then proposed and, in any event, equivalent in
         scope to  indemnities  given by the  Company  in  connection  with such
         registration, but only with respect to written information furnished by
         such  Holder  in  his or  her  capacity  as a  selling  shareholder  in
         connection with such registration.

                                      -14-

<PAGE>

                  (h) In the  event  of any  registration  under  the Act of any
Covered  Shares  pursuant  to this  Section  7, the  Company  hereby  agrees  to
indemnify and hold harmless  each Holder  disposing of such shares  against such
losses, claims,  damages or liabilities  (including  reimbursement for legal and
other  expenses)  to which  such  Holder  may  become  subject  under the Act or
otherwise,  in such manner as is customary  for  registrations  of the type then
proposed,  but not with respect to written information  furnished by such Holder
in his capacity as a selling shareholder in connection with such registration.

         8.       Tag-Along Rights.

                  (a)  Right to  Participate  in  Sale.  If GEI  enters  into an
agreement to transfer,  sell or otherwise  dispose of for value (such  transfer,
sale or other disposition being referred to as a "Tag-Along Sale") a majority of
its shares of Common  Stock of the  Company  held on the date  hereof,  then GEI
shall afford each Holder the opportunity to participate  proportionately in such
Tag-Along  Sale in  accordance  with this  Section 8. Each Holder shall have the
right, but not the obligation  (except as provided in Section 9), to participate
in such  Tag-Along  Sale.  The number of shares of Common Stock that each Holder
will be entitled to include in such Tag-Along  Sale (such Holder's  "Allotment")
shall be determined  by  multiplying  (i) the number of Covered  Shares owned by
such  Holder as of the close of business on the day  immediately  preceding  the
Tag-Along Notice Date (as defined below),  by (ii) a fraction,  the numerator or
which  shall  equal the number of shares of Common  Stock  proposed by GEI to be
sold or otherwise disposed of pursuant to the Tag-Along Sale and the denominator
of which  shall  equal the total  number  of  shares  of Common  Stock  that are
beneficially owned as of the close of business on the day immediately  preceding
the  Tag-Along  Notice  Date by (a) GEI and (b) all  holders of shares of Common
Stock  (including the Holders) to the extent that such holders have the right to
"tag-along" in the Tag-Along Sale. The "Tag Along Notice Date" shall be the date
that the Tag-Along Sale Notice (as defined below) is first delivered,  mailed or
sent by courier, Telex or telecopy to the Holders.

                  (b) Terms of Tag-Along  Sale. Any sales of Covered Shares by a
Holder as a result of the "Tag-Along  Rights"  granted to the Holder pursuant to
this  agreement  shall be on the  same  terms  and  conditions  as the  proposed
Tag-Along Sale by GEI.

                  (c) Sale  Notice.  GEI shall  provide each Holder with written
notice  (the  "Tag-Along  Sale  Notice")  not more than sixty (60) nor less than
twenty  (20)  days  prior  to the  proposed  date  of the  Tag-Along  Sale  (the
"Tag-Along  Sale Date").  Each  Tag-Along  Sale Notice shall set forth:  (i) the
number of shares  proposed to be  transferred  or sold by GEI; (ii) the proposed
amount and form of  consideration  to be paid for such  shares and the terms and
conditions of payment  offered by each proposed  transferee or purchaser;  (iii)
the aggregate number of shares of Common Stock held of record as of the close of
business on the day immediately preceding the Tag-Along Notice Date by GEI; (iv)
such Holder's  Allotment assuming such Holder elected to sell the maximum number
of Covered Shares  possible;  (v)  confirmation  that the proposed  purchaser or
transferee has been informed of the "Tag-Along  Rights"  provided for herein and
has agreed to purchase  Covered Shares in accordance with the terms hereof;  and
(vi) the Tag-Along Sale Date.

                                      -15-

<PAGE>

                  (d) Tag-Along Notice. If a Holder wishes to participate in the
Tag-Along  Sale,  such Holder  shall  provide  written  notice  (the  "Tag-Along
Notice") to GEI no less than ten (10) days prior to the Tag-Along Sale Date. The
Tag-Along  Notice shall set forth the number of Covered  Shares that such Holder
elects to include in the  Tag-Along  Sale,  which shall not exceed such Holder's
Allotment.  The  Tag-Along  Notice  shall also specify the  aggregate  number of
additional Covered Shares owned of record as of the close of business on the day
immediately  preceding the Tag-Along  Notice Date by such Holder,  if any, which
such Holder desires also to include in the Tag-Along Sale ("Additional  Shares")
in the  event  there is any  under-subscription  for the  entire  amount  of all
Holders'  Allotments  and of all shares that may be included by persons  having,
pursuant to agreements of even date  herewith in form  substantially  similar to
this  Agreement  (the  "Other  Agreements"),  tag-along  rights  relative to GEI
(collectively, the "Management Investors' Allotments"). In the event there is an
under-subscription  by all holders of Management  Investors'  Allotments for the
entire amount of the Management Investors'  Allotments,  GEI shall apportion the
unsubscribed  Management  Investors'  Allotments  to such  holders on a pro rata
basis in  accordance  with the  number  of  Additional  Shares  (as such term is
defined  in this  Agreement  and the  Other  Agreements)  specified  by all such
holders in their  Tag-Along  Notices (as such term is defined in this  Agreement
and the Other  Agreements).  The  Tag-Along  Notice  given by each Holder  shall
constitute such Holder's binding  agreement to sell the Covered Shares specified
in such Tag-Along  Notice  (including  any Additional  Shares to the extent such
Additional  Shares are to be  included  in the  Tag-Along  Sale  pursuant to the
apportionment  described in the preceding  sentence) on the terms and conditions
applicable to the  Tag-Along  Sale,  subject to the  provisions of Section 8 (b)
above; provided, however, that in the event that there is any material change in
the terms and conditions of such  Tag-Along Sale  applicable to any Holder after
such Holder gives its Tag-Along Notice, then, notwithstanding anything herein to
the contrary, such Holder shall have the right to withdraw from participation in
the Tag-Along Sale with respect to all of its Covered Shares  affected  thereby.
If the purchaser  does not  consummate the purchase of all of such shares on the
same  terms and  conditions  applicable  to GEI  (except as  otherwise  provided
herein) then GEI shall not consummate the Tag-Along Sale of any of its shares to
such  transferee  or  purchaser,  unless the  shares of each  Holder and GEI are
reduced or limited pro rata in  proportion  to the  respective  number of shares
actually sold in such Tag-Along Sale.

         If a Tag-Along  Notice is not  received by GEI from any Holder prior to
the  ten-day  period  specified  above,  GEI  shall  have  the  right to sell or
otherwise transfer the number of shares specified in the Tag-Along Notice to the
proposed  purchaser or transferee  without any participation by such Holder, but
only on terms and conditions which are no more favorable in any material respect
to GEI than as stated in the  Tag-Along  Notice to such  Holder and only if such
Tag-Along Sale occurs on a date within sixty (60) business days of the Tag-Along
Sale Date.

                  (e) Authority to Record Transfer/Delivery of Certificates.  On
the  Tag-Along  Sale Date,  each  Holder,  if a  participant  in the  applicable
Tag-Along Sale, authorizes the Company (or the Company's transfer agent, if any)
to record  in the  Company's  books  and  records  the  transfer  of all of such
Holder's   Covered  Shares  included  in  such  Tag-Along  Sale  which  are  not
represented by one or more certificates  issued by the Company,  from the Holder
to the purchaser in the Tag-Along Sale. On the Tag-Along Sale Date, each Holder,
if a  participant  in the  applicable  Tag-Along  Sale,  shall also  deliver all
certificates, if any, issued by the

                                      -16-

<PAGE>

Company which  represent  Covered  Shares owned by such Holder  included in such
Tag-Along Sale, duly endorsed for transfer with  signatures  guaranteed,  to the
purchaser in the Tag-Along  Sale, in the manner and at the address  indicated in
the Tag-Along Notice against delivery of the purchase price for such shares.  In
addition,  each Holder, if a participant in the applicable Tag-Along Sale, shall
take all action as GEI or the purchaser in the  Tag-Along  Sale shall request as
necessary to vest in the  purchaser  in the  Tag-Along  Sale all Covered  Shares
owned by such Holder included in such Tag-Along Sale, whether in certificated or
uncertificated  form, free and clear of all liens,  charges and  encumbrances of
any kind.

                  (f) Exempt  Transfers.  The provisions of this Section 8 shall
not  apply to (i) any sale of Common  Stock by GEI in a bona  fide  underwritten
offering of Common Stock pursuant to an effective  registration  statement under
the Act or any bona fide public  distribution of Common Stock by GEI pursuant to
Rule 144  thereunder;  (ii) any bona fide  pledge  by GEI of  Common  Stock to a
commercial  bank,  savings and loan  institution  or any other  similar  lending
institution  as security  for any  indebtedness  to such lender or any sale upon
foreclosure of any such pledge; (iii) any transfer, sale or other disposition of
Common Stock by GEI to one of its Affiliates  (except that (A) prior to any such
disposition,  the party  receiving  such  shares of Common  Stock shall agree in
writing to be bound by the terms of this Agreement  applicable to GEI as if such
transferee were an original party hereto and (B) any such shares of Common Stock
shall  continue to be subject to this  Agreement);  (iv) any  redemption  by the
Company of its Common Stock; or (v) any GEI  Distribution (as defined in Section
13). In the event of any transfer,  sale or other disposition of Common Stock by
GEI to one of its Affiliates,  to the extent  provided in any agreement  between
GEI and such  Affiliate,  such Affiliate  shall have any or all of the rights of
GEI under this Agreement and references in this Agreement to GEI shall be deemed
to be references to such Affiliate.

         9.       Drag-Along Sales.

                  (a) Right to Require Sale. Notwithstanding any other provision
hereof, if GEI agrees to sell 100% of the shares of Common Stock held by it to a
third person who is not an  Affiliate of GEI (a "Third  Party") or if GEI agrees
to sell a portion of its shares pursuant to a transaction in which more than 50%
of the total Common  Stock of the Company will be sold to a Third Party  (either
of such sales, a "Drag-Along  Sale"),  then, upon the demand of GEI, each Holder
hereby  agrees  to sell to such  Third  Party the same  percentage  of the total
number of  Covered  Shares  held by such  Holder  on the date of the  Drag-Along
Notice  (as  defined  below),  as the  number of shares  GEI is  selling  in the
Drag-Along  Sale bears to the total  number of shares held by GEI as of the date
of the Drag-Along Notice (the "Sale  Percentage"),  at the same price and on the
same terms and conditions as GEI has agreed to with such Third Party.

                  (b) Drag-Along Notice. Prior to making any Drag-Along Sale, if
GEI elects to exercise the option described in this Section 9, GEI shall provide
each Holder with written  notice (the  "Drag-Along  Notice") not more than sixty
(60) nor less than twenty (20) days prior to the proposed date of the Drag-Along
Sale (the  "Drag-Along Sale Date").  The Drag-Along  Notice shall set forth: (i)
the  proposed  amount and form of  consideration  to be paid per share of Common
Stock and the terms and conditions of payment  offered by the Third Party;  (ii)
the  aggregate  number of shares of Common Stock held by GEI as of the date that
the Drag-Along  Notice is first delivered,  mailed or sent by courier,  telex or
telecopy to the Holder(s);  (iii) the

                                      -17-

<PAGE>

Sale  Percentage;  (iv) the Drag-Along Sale Date and (v)  confirmation  that the
proposed  Third  Party has agreed to purchase  the  Holder's  Covered  Shares in
accordance with the terms hereof.

                  (c) Authority to Record Transfer/Delivery of Certificates.  On
the  Drag-Along  Sale Date,  each Holder,  if a  participant  in the  applicable
Drag-Along  Sale,  authorizes the Company (or the Company's  transfer  agent, if
any) to record in the  Company's  books and records the  transfer of all of such
Holder's  Covered  Shares  included  in  such  Drag-Along  Sale  which  are  not
represented by one or more certificates issued by the Company,  from such Holder
to the purchaser in the  Drag-Along  Sale.  On the  Drag-Along  Sale Date,  each
Holder,  if a participant in the applicable  Drag-Along Sale, shall also deliver
all  certificates,  if any, issued by the Company which represent Covered Shares
owned by such  Holder  included  in such  Drag-Along  Sale,  duly  endorsed  for
transfer with signatures guaranteed, to the purchaser in the Drag-Along Sale, in
the  manner  and at the  address  indicated  in the  Drag-Along  Notice  against
delivery of the purchase price for such shares.  In addition,  each Holder, if a
participant in the applicable  Drag-Along  Sale, shall take all action as GEI or
the purchaser in the  Drag-Along  Sale shall request as necessary to vest in the
purchaser  in the  Drag-Along  Sale all  Covered  Shares  owned  by such  Holder
included in such Drag-Along  Sale,  whether in  certificated  or  uncertificated
form, free and clear of all liens, charges and encumbrances of any kind.

                  (d)  Consideration.  The  provisions  of this  Section 9 shall
apply regardless of the form of consideration received in the Drag-Along Sale.

         10. Notices.  All notices or other  communications under this Agreement
shall be given in writing  and shall be deemed  duly given and  received  on the
third full business day  following the day of the mailing  thereof by registered
or certified mail or when delivered personally or sent by facsimile transmission
as follows:

                  (a) if to the Company,  at its principal  executive offices at
the time of the giving of such  notice,  or at such other  place as the  Company
shall have  designated by notice as herein provided to GEI and to the Management
Investor and any other Holders, Attention: Chief Executive Officer;

                  (b) if to the  Management  Investor,  at  the  address  of the
Management  Investor  as it  appears  in Annex A or at such  other  place as the
Management  Investor shall have  designated by notice as herein  provided to the
Company and GEI;

                  (c) if to any Holder other than the  Management  Investor,  at
the address of such  Holder as set forth in the stock  records of the Company or
at such other place as such  Holder  shall have  designated  by notice as herein
provided to the Company and GEI; and

                  (d) if to GEI, at its principal  executive offices at the time
of the  giving  of such  notice,  or at  such  other  place  as GEI  shall  have
designated  by notice as herein  provided to the  Company and to the  Management
Investor and any other Holders, Attention: Gregory J. Annick.

         11.  Specific  Performance.  Due to the fact that the securities of the
Company  cannot be readily  purchased  or sold in the open  market and for other
reasons,  the  parties  will be  irreparably  damaged  in the  event  that  this
Agreement is not specifically  enforced.  In the event of a breach or threatened
breach of the terms, covenants and/or conditions of this Agreement by any

                                      -18-

<PAGE>

of the  parties  hereto,  the other  parties  shall,  in  addition  to all other
remedies,  be entitled  (without any bond or other security being required) to a
temporary and/or permanent injunction, without showing any actual damage or that
monetary  damages  would not  provide an  adequate  remedy,  and/or a decree for
specific performance, in accordance with the provisions hereof.

         12.      Miscellaneous.

                  (a) This  writing  constitutes  the  entire  agreement  of the
parties  with  respect to the subject  matter  hereof and may not be modified or
amended  except  by a  written  agreement  signed  by the  Company,  GEI and the
Holders; provided, however, that any of the provisions of this Agreement (except
as hereinafter provided) may be modified,  amended or eliminated by agreement of
the  Company,  GEI and a  majority  in  interest  (on the basis of the number of
"covered  shares"  of Common  Stock  then  owned of all of the  Holders  and all
holders of securities pursuant to agreements in forms  substantially  similar to
this  Agreement,  which  agreement  shall bind each  Holder  whether or not such
Holder has agreed thereto;  provided further,  that no modification or amendment
which would materially  adversely affect the rights of any Holder under Sections
3, 4, 5, 6, 7, 8, 9 or 12(a) of this  Agreement  shall be  effective  as to such
Holder if such Holder shall not have consented in writing  thereto.  Anything in
this Agreement to the contrary notwithstanding, any modification or amendment of
this  Agreement by a written  agreement  signed by, or binding upon,  any Holder
shall be valid and binding  upon any and all persons or entities who may, at any
time, have or claim any rights under or pursuant to this Agreement in respect of
Covered Shares acquired from such Holder.

                  (b) No waiver  of any  breach or  default  hereunder  shall be
considered valid unless in writing,  and no such waiver shall be deemed a waiver
of any subsequent  breach or default of the same or similar nature.  Anything in
this  Agreement to the contrary  notwithstanding,  any waiver,  consent or other
instrument  under or pursuant to this Agreement  signed by, or binding upon, the
Management  Investor or any other Holder shall be valid and binding upon any and
all persons or entities  (other than the Company,  GEI or any  Affiliate of GEI)
who may,  at any  time,  have or claim  any  rights  under or  pursuant  to this
Agreement in respect of Covered Shares acquired from such Holder.

                  (c)  Except  as  otherwise  expressly  provided  herein,  this
Agreement shall be binding upon and inure to the benefit of the Company and GEI,
their  respective  successors  and assigns and the  Management  Investor and the
other Holders and their respective heirs, personal  representatives,  successors
and assigns; provided, however, that nothing contained herein shall be construed
as  granting to any Holder the right to transfer  any Covered  Shares  except in
accordance with this Agreement and any transferee shall hold such Covered Shares
having only those rights and being subject to the  restrictions  provided for in
this Agreement.

                  (d) If any  provision  of this  Agreement  shall be invalid or
unenforceable,  such  invalidity or  unenforceability  shall attach only to such
provision and shall not in any manner affect or render invalid or  unenforceable
any other  severable  provision of this  Agreement,  and this Agreement shall be
carried out as if any such invalid or unenforceable provision were not contained
herein.

                  (e)  The  provisions  of this  Agreement  shall  apply  to all
Covered Shares.

                                      -19-

<PAGE>

                  (f) Except as set forth in Section  11,  arbitration  shall be
the  exclusive  remedy for  resolving  any  dispute or  controversy  between the
Company,  any of its  subsidiaries  or GEI and any Management  Investor or other
Holder.  Such  arbitration  shall be conducted in accordance  with the then most
applicable rules of the American Arbitration  Association.  The arbitrator shall
be  empowered to grant only such relief as would be available in a court of law.
In the  event  of any  conflict  between  this  Agreement  and the  rules of the
American  Arbitration  Association,  the provisions of this  Agreement  shall be
determinative. If the parties are unable to agree upon an arbitrator, they shall
select a single  arbitrator from a list of seven  arbitrators  designated by the
office of the American  Arbitration  Association  having  responsibility for the
city in which the Management Investor last resided while employed by the Company
or its  subsidiaries,  all of whom  shall be  retired  judges  who are  actively
involved  in  hearing  private  cases or  members  of the  National  Academy  of
Arbitrators.  If the  parties are unable to agree upon an  arbitrator  from such
list, they shall each strike names  alternatively  from the list, with the first
to strike being determined by lot. After each party has used three strikes,  the
remaining name on the list shall be the arbitrator. The fees and expenses of the
arbitrator shall initially be borne equally by the parties;  provided,  however,
that each party shall  initially be responsible for the fees and expenses of its
own representatives  and witnesses.  If the parties cannot agree upon a location
for the arbitration,  the arbitrator shall determine the location.  Judgment may
be entered on the award of the arbitrator in any court having jurisdiction.  The
prevailing party in the arbitration proceeding, as determined by the arbitrator,
and in any  enforcement  or other  court  proceedings,  shall be entitled to the
extent  provided  by law to  reimbursement  from the other  party for all of the
prevailing  party's  costs  (including  but  not  limited  to  the  arbitrator's
compensation), expenses and reasonable attorneys' fees.

                  (g) Should any party to this Agreement be required to commence
any  litigation  concerning  any  provision of this  Agreement or the rights and
duties of the parties  hereunder,  the prevailing party in such proceeding shall
be  entitled,  in  addition  to such  other  relief  as may be  granted,  to the
reasonable   attorneys'  fees  and  court  costs  incurred  by  reason  of  such
litigation.

                  (h) The section headings contained herein are for the purposes
of convenience only and are not intended to define or limit the contents of said
sections.

                  (i) Each  party  hereto  shall  cooperate  and shall take such
further  action and shall  execute and deliver such further  documents as may be
reasonably requested by any other party in order to carry out the provisions and
purposes of this Agreement.

                  (j) The Management Investor represents that, if the Management
Investor is married and resides in a community  property  state,  the Management
Investor's spouse has signed the Acknowledgment and Agreement of Spouse relating
to the Management Investor at the end of this Agreement.

                  (k)  Words in the  singular  shall be read  and  construed  as
though in the  plural  and words in the plural  shall be read and  construed  as
though in the singular in all cases where they would so apply.

                                      -20-

<PAGE>

                  (l)  This   Agreement   may  be   executed   in  one  or  more
counterparts, all of which taken together shall be deemed one original.

                  (m) The  Management  Investor  and each  other  Holder  hereby
irrevocably  and  unconditionally  consents to the  jurisdiction of any New York
State court or federal  court of the United  States  sitting in the State of New
York in any action or  proceeding  relating to this  Agreement  and  consents to
service of process in  connection  therewith  by the  delivery of notice to such
Management  Investor's  or  Holder's  address at the address for notices to such
Holder pursuant to this Agreement.

                  (n) This Agreement  shall be deemed to be a contract under the
laws of the  State of New  York and for all  purposes  shall  be  construed  and
enforced in accordance  with the internal  laws of said state without  regard to
the principles of conflicts of law.

         13.      GEI Distributions Exempt.

                  It is expressly  understood and agreed that GEI may distribute
to its partners or other equity  participants,  in accordance  with the terms of
its  limited  partnership  agreement,  all or any  part  of  the  shares  of the
Company's  capital  stock  or  other  Company  securities  held by it (any  such
distribution,  a "GEI Distribution").  Notwithstanding  anything to the contrary
contained in this Agreement, any GEI Distribution shall not constitute a "sale,"
"transfer" or  "disposition"  for any purpose under this  Agreement and shall be
exempt in all respects from the terms and  conditions of this  Agreement.  As an
example,  and without limiting the generality of the foregoing,  it is expressly
understood and agreed that a GEI  Distribution  shall not constitute a Tag-Along
Sale for the  purposes  of  Section  8  hereof.  Further,  it is also  expressly
understood and agreed that, following a GEI Distribution,  (i) the shares of the
Company's capital stock or other Company securities  distributed to the partners
or equity  participants  of GEI shall in no way be subject to this Agreement and
(ii) any  partner  or equity  participant  of GEI which  receives  shares of the
Company's  capital  stock  or  other  Company  securities   pursuant  to  a  GEI
Distribution shall not be required or deemed to become a party to this Agreement
or otherwise be subject to this Agreement.

                                      -21-

<PAGE>

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

                                     DIAMOND TRIUMPH AUTO GLASS, INC.

                                     By:  /s/ Kenneth Levine
                                         ------------------------
                                     Name: Kenneth Levine
                                     Its:  Co-Chairman & Co-Chief
                                           Executive Officer

                                     GREEN EQUITY INVESTORS II, L.P.

                                     By: Grand Avenue Capital Partners, L.P.

                                     By: Grand Avenue Capital Corporation, its
                                           general partner

                                     By: /s/ Gregory Annick
                                         -----------------------
                                     Name: Gregory Annick

                                     Management Investor

                                     By: /s/ Norman Harris
                                        ---------------------
                                     Name: Norman Harris

                                      -22-

<PAGE>

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