Document:

<PAGE>

                                                                   EXHIBIT 4.03

                                                       COMPOSITE CONFORMED COPY

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

                             Roper Industries, Inc.

               $40,000,000 7.58% Senior Guaranteed Secured Notes,

                           Series A, due May 18, 2007

                                      and

               $85,000,000 7.68% Senior Guaranteed Secured Notes,
                           Series B, due May 18, 2010

                                 ______________

                            Note Purchase Agreement

                                 _____________

                               Dated May 18, 2000

================================================================================
<PAGE>

                               Table of Contents

                         (Not a part of the Agreement)
<TABLE>
<CAPTION>
Section                                    Heading                                      Page
<S>                  <C>                                                               <C>
Section 1.           Authorization of Notes..........................................     1
Section 2.           Sale and Purchase of Notes......................................     1
Section 3.           Closing.........................................................     2
Section 4.           Conditions to Closing...........................................     2
   Section 4.1.      Representations and Warranties..................................     2
   Section 4.2.      Performance; No Default.........................................     2
   Section 4.3.      Compliance Certificates.........................................     2
   Section 4.4.      Opinions of Counsel.............................................     3
   Section 4.5.      Purchase Permitted By Applicable Law, etc.......................     3
   Section 4.6.      Sale of Other Notes.............................................     3
   Section 4.7.      Payment of Special Counsel Fees.................................     3
   Section 4.8.      Private Placement Number........................................     3
   Section 4.9.      Changes in Corporate Structure..................................     3
   Section 4.10.     Guaranty Agreement..............................................     4
   Section 4.11.     Recording; Delivery of Pledge Shares............................     4
   Section 4.12.     Delivery of Pledged Shares......................................     4
   Section 4.13.     Proceedings and Documents.......................................     4

Section 5.           Representations and Warranties of the Obligors..................     4
   Section 5.1.      Organization; Power and Authority...............................     4
   Section 5.2.      Authorization, etc..............................................     5
   Section 5.3.      Disclosure......................................................     5
   Section 5.4.      Organization and Ownership of Shares of Subsidiaries; Affiliates     5
   Section 5.5.      Financial Statements............................................     6
   Section 5.6.      Compliance with Laws, Other Instruments, etc....................     6
   Section 5.7.      Governmental Authorizations, etc................................     6
   Section 5.8.      Litigation; Observance of Agreements, Statutes and Orders.......     6
   Section 5.9.      Taxes...........................................................     7
   Section 5.10.     Title to Property; Leases.......................................     7
   Section 5.11.     Licenses, Permits, etc..........................................     7
   Section 5.12.     Compliance with ERISA...........................................     8
   Section 5.13.     Private Offering by the Company.................................     8
   Section 5.14.     Use of Proceeds; Margin Regulations.............................     9
   Section 5.15.     Existing Indebtedness; Future Liens.............................     9
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<CAPTION>
<S>                  <C>                                                                 <C>
   Section 5.16.     Foreign Assets Control Regulations, etc.........................     9
   Section 5.17.     Status under Certain Statutes...................................     9
   Section 5.18.     Environmental Matters...........................................    10
   Section 5.19.     Collateral; Pledged Shares; Guaranty Agreement..................    10
   Section 5.20.     Solvency........................................................    10
   Section 5.21.     Additional Bank Representations and Warranties..................    11
   Section 5.22.     Pari Passu Collateral...........................................    11

Section 6.           Representations of the Purchaser................................    11
   Section 6.1.      Purchase for Investment.........................................    11
   Section 6.2.      Source of Funds.................................................    11

Section 7.           Information as to Company.......................................    12
   Section 7.1.      Financial and Business Information..............................    12
   Section 7.2.      Officer's Certificate...........................................    15
   Section 7.3.      Inspection......................................................    15
   Section 7.4.      Additional Notices..............................................    16

Section 8.           Prepayment of the Notes.........................................    16
   Section 8.1.      No Required Prepayments.........................................    16
   Section 8.2.      Optional Prepayments with Make-Whole Amount.....................    16
   Section 8.3.      Change in Control...............................................    16
   Section 8.4.      Allocation of Partial Prepayments...............................    18
   Section 8.5.      Maturity; Surrender, etc........................................    18
   Section 8.6.      Purchase of Notes...............................................    19
   Section 8.7.      Make-Whole Amount...............................................    19

Section 9.           Affirmative Covenants...........................................    20
   Section 9.1.      Compliance with Law.............................................    20
   Section 9.2.      Insurance.......................................................    20
   Section 9.3.      Maintenance of Properties.......................................    21
   Section 9.4.      Payment of Taxes and Claims.....................................    21
   Section 9.5.      Corporate Existence, etc........................................    21
   Section 9.6.      Line of Business................................................    21
   Section 9.6.      Line of Business................................................    21
   Section 9.7.      Notes to Rank Pari Passu........................................    21
   Section 9.8.      Additional Security Arrangements................................    22

Section 10.          Negative and Financial Covenants................................    22
   Section 10.1.     Transactions with Affiliates....................................    22
   Section 10.2.     Merger, Consolidation, etc......................................    22
   Section 10.3.     Consolidated Net Worth..........................................    23
   Section 10.4.     General Limitation on Incurrence of all Indebtedness............    23
   Section 10.5.     Additional Limitation on Subsidiary Indebtedness................    24
</TABLE>

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<PAGE>

<TABLE>
<CAPTION>
<S>                  <C>                                                                 <C>
   Section 10.6.     Additional Limitation on Priority Debt..........................    24
   Section 10.7.     Fixed Charges Coverage Ratio....................................    24
   Section 10.8.     Restricted Investments..........................................    24
   Section 10.9.     Limitation on Liens.............................................    25
   Section 10.10.    Sale of Assets, Etc.............................................    27

Section 11.          Events of Default...............................................    28

Section 12.          Remedies on Default, etc........................................    30
   Section 12.1.     Acceleration....................................................    30
   Section 12.2.     Other Remedies..................................................    31
   Section 12.3.     Rescission......................................................    31
   Section 12.4.     No Waivers or Election of Remedies, Expenses, etc...............    31

Section 13.          Registration; Exchange; Substitution of Notes...................    32
   Section 13.1.     Registration of Notes...........................................    32
   Section 13.1.     Registration of Notes...........................................    32
   Section 13.2.     Transfer and Exchange of Notes..................................    32
   Section 13.3.     Replacement of Notes............................................    32

Section 14.          Payments on Notes...............................................    33
   Section 14.1.     Place of Payment................................................    33
   Section 14.2.     Home Office Payment.............................................    33

Section 15.          Expenses, Etc...................................................    33
   Section 15.1.     Transaction Expenses............................................    33
   Section 15.2.     Survival........................................................    34

Section 16.          Survival of Representations and Warranties; Entire Agreement....    34

Section 17.          Amendment and Waiver............................................    34
   Section 17.1.     Requirement.....................................................    34
   Section 17.2.     Solicitation of Holders of Notes................................    34
   Section 17.3.     Binding Effect, etc.............................................    35
   Section 17.4.     Notes Held by an Obligor, etc...................................    35

Section 18.          Notices.........................................................    35

Section 19.          Reproduction of Documents.......................................    36

Section 20.          Confidential Information........................................    36
</TABLE>

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<PAGE>

<TABLE>
<CAPTION>
<S>                  <C>                                                                 <C>
Section 21.          Substitution of Purchaser.......................................    37

Section 22.          Miscellaneous...................................................    37
   Section 22.1.     Successors and Assigns..........................................    37
   Section 22.2.     Payments Due on Non-Business Days...............................    38
   Section 22.3.     Severability....................................................    38
   Section 22.4.     Construction....................................................    38
   Section 22.5.     Counterparts....................................................    38
   Section 22.6.     Governing Law...................................................    38

Signatures...........................................................................    39

</TABLE>
                                     -iv-
<PAGE>

<TABLE>
<CAPTION>
<S>               <C>
Schedule A        -   Information Relating to Purchasers

Schedule B        -   Defined Terms

Schedule 5.4      -   Subsidiaries of the Company and Ownership of Subsidiary Stock

Schedule 5.5      -   Financial Statements

Schedule 5.15     -   Existing Indebtedness

Exhibit 1A        -   Form of 7.58%% Senior Guaranteed Secured Note, Series A, due May 18, 2007

Exhibit 1B        -   Form of 7.68% Senior Guaranteed Secured Note, Series B, due May 18, 2010

Exhibit 4.4(a)    -   Form of Opinion of Special Counsel to the Obligors

Exhibit 4.4(b)    -   Form of Opinion of Special Counsel to the Purchasers

</TABLE>
                                      -v-
<PAGE>

                             Roper Industries, Inc.

               $40,000,000 7.58% Senior Guaranteed Secured Notes,
                           Series A, due May 18, 2007
                                      and
               $85,000,000 7.68% Senior Guaranteed Secured Notes,
                           Series B, due May 18, 2010

                                                                    May 18, 2000

To each of the Purchasers listed in
 the attached Schedule A:

Ladies and Gentlemen:

     Roper Industries, Inc., a Delaware corporation (the "Company"), and the
other Obligors (defined below) parties hereto jointly and severally, agree with
you as follows:

Section 1.  Authorization of Notes.

     The Company will authorize the issue and sale of (i) $40,000,000 aggregate
principal amount of its 7.58% Senior Guaranteed Secured Notes, Series A, due May
18, 2007 (the "Series A Notes") and (ii) $85,000,000 aggregate principal amount
of its 7.68% Senior Guaranteed Secured Notes, Series B, due May 18, 2010 (the
"Series B Notes" and, together with the Series A Notes, the "Notes") such term
to include any such Notes issued in substitution therefor pursuant to Section 13
of this Agreement or the Other Agreements (as hereinafter defined).  The Series
A Notes and Series B Notes shall be substantially in the respective forms set
out in Exhibits 1A and 1B, with such changes therefrom, if any, as may be
approved by you and the Company.  Certain capitalized terms used in this
Agreement are defined in Schedule B; references to a "Schedule" or an "Exhibit"
are, unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement.  The Notes shall be unconditionally guaranteed pursuant to the
Guaranty Agreement and shall be secured pursuant to the provisions of the Pledge
Agreements.  The Company and the Guarantors are referred to, individually, as an
"Obligor" and, collectively, as "Obligors."

Section 2.  Sale and Purchase of Notes.

     Subject to the terms and conditions of this Agreement, the Company will
issue and sell to you and you will purchase from the Company, at the Closing
provided for in Section 3, Notes in the series and in the principal amount
specified opposite your name in Schedule A at the purchase price of 100% of the
principal amount thereof.  Contemporaneously with entering into this Agreement,
the Company is entering into separate Note Purchase Agreements (the "Other
Agreements") identical with this Agreement with each of the other purchasers
named in Schedule A (the "Other Purchasers"), providing for the sale at such
Closing to each of the Other Purchasers of Notes in the principal amount
specified opposite its name in Schedule A.  Your

<PAGE>

obligation hereunder, and the obligations of the Other Purchasers under the
Other Agreements, are several and not joint obligations, and you shall have no
obligation under any Other Agreement and no liability to any Person for the
performance or nonperformance by any Other Purchaser thereunder.

Section 3.  Closing.

     The sale and purchase of the Notes to be purchased by you and the Other
Purchasers shall occur at the offices of Chapman and Cutler, 111 W. Monroe
Street, Chicago, IL 60603, at 10:00 a.m., Chicago time, at a closing (the
"Closing") on May 18, 2000 or on such other Business Day on or prior to May 26,
2000 as may be agreed upon by the Company and you and the Other Purchasers.  At
the Closing the Company will deliver to you the Notes to be purchased by you in
the form of a single Note (or such greater number of Notes in denominations of
at least $100,000 as you may request) dated the date of the Closing and
registered in your name (or in the name of your nominee), against delivery by
you to the Company or its order of immediately available funds in the amount of
the purchase price therefor by wire transfer of immediately available funds for
the account of the Company to account name: Roper Industries Concentration,
account number 3751033792 at Bank of America-Atlanta, ABA# 111000012, Contact
Roper: Patrick Cline.  If at the Closing the Company shall fail to tender such
Notes to you as provided above in this Section 3, or any of the conditions
specified in Section 4 shall not have been fulfilled to your satisfaction, you
shall, at your election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights you may have by reason of such
failure or such nonfulfillment.

Section 4.  Conditions to Closing.

     Your obligation to purchase and pay for the Notes to be sold to you at the
Closing is subject to the fulfillment to your satisfaction, prior to or at the
Closing, of the following conditions:

     Section 4.1.  Representations and Warranties. The representations and
warranties of the Obligors in this Agreement shall be correct when made and at
the time of the Closing.

     Section 4.2.  Performance; No Default. The Obligors shall have performed
and complied with all agreements and conditions contained in this Agreement
required to be performed or complied with by it prior to or at the Closing and
after giving effect to the issue and sale of the Notes (and the application of
the proceeds thereof as contemplated by Schedule 5.14) no Default or Event of
Default shall have occurred and be continuing. Neither an Obligor nor any
Subsidiary shall have entered into any transaction since the date of the
Memorandum that would have been prohibited by the provisions hereof had such
provisions applied since such date.

                                      -2-
<PAGE>

     Section 4.3.  Compliance Certificates.

      (a) Officer's Certificate. Each Obligor shall have delivered to you an
Officer's Certificate, dated the date of the Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

      (b) Secretary's Certificate. Each Obligor shall have delivered to you a
certificate certifying as to the resolutions attached thereto and other
corporate proceedings relating to the authorization, execution and delivery of
the Financing Agreements.

     Section 4.4.  Opinions of Counsel. You shall have received opinions in form
and substance satisfactory to you, dated the date of the Closing (a) from
Powell, Goldstein, Frazer & Murphy, L.L.P., counsel for the Obligors, covering
the matters set forth in Exhibit 4.4(a) and covering such other matters incident
to the transactions contemplated hereby as you or your counsel may reasonably
request (and the Company hereby instructs its counsel to deliver such opinion to
you) and (b) from Chapman and Cutler, your special counsel in connection with
such transactions, substantially in the form set forth in Exhibit 4.4(b) and
covering such other matters incident to such transactions as you may reasonably
request. In addition to and not in limitation of the foregoing, you shall have
received such opinions from local counsel as you may reasonably request,
satisfactory to you in form and substance, covering such matters in respect of
the Pledge Agreements as you may reasonably request.

     Section 4.5.  Purchase Permitted By Applicable Law, etc. On the date of the
Closing your purchase of Notes shall (i) be permitted by the laws and
regulations of each jurisdiction to which you are subject, without recourse to
provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting
limited investments by insurance companies without restriction as to the
character of the particular investment, (ii) not violate any applicable law or
regulation (including, without limitation, Regulation T, U or X of the Board of
Governors of the Federal Reserve System) and (iii) not subject you to any tax,
penalty or liability under or pursuant to any applicable law or regulation,
which law or regulation was not in effect on the date hereof. If requested by
you, you shall have received an Officer's Certificate certifying as to such
matters of fact as you may reasonably specify to enable you to determine whether
such purchase is so permitted.

     Section 4.6.  Sale of Other Notes. Contemporaneously with the Closing, the
Company shall sell to the Other Purchasers, and the Other Purchasers shall
purchase the Notes to be purchased by them at the Closing as specified in
Schedule A.

     Section 4.7.  Payment of Special Counsel Fees. Without limiting the
provisions of Section 15.1, the Obligors shall have paid on or before the
Closing the fees, charges and disbursements of your special counsel referred to
in Section 4.4 to the extent reflected in a statement of such counsel rendered
to the Company at least one Business Day prior to the Closing.

     Section 4.8.  Private Placement Number. A Private Placement number issued
by Standard & Poor's CUSIP Service Bureau (in cooperation with the Securities
Valuation Office of

                                      -3-
<PAGE>

the National Association of Insurance Commissioners) shall have been obtained
for each series of Notes.

     Section 4.9. Changes in Corporate Structure. The Obligors shall not have
changed their respective jurisdiction of incorporation or been a party to any
merger or consolidation and shall not have succeeded to all or any substantial
part of the liabilities of any other entity, at any time following the date of
the most recent financial statements referred to in Schedule 5.5.

     Section 4.10. Guaranty Agreement. The Guaranty Agreement and the Sharing
Agreement shall have been executed and delivered by each of the Guarantors in
the case of the Guaranty Agreement, and each of the parties thereto in the case
of the Sharing Agreement, and shall be in full force and effect.

     Section 4.11. Recording; Delivery of Pledge Shares. The Pledge Agreements
and all financing statements and/or instruments shall have been recorded or
filed in public offices as may be necessary or desirable in order to perfect the
Liens granted thereby as against creditors of purchasers from the Pledgors under
the Pledge Agreements. The Pledge Shares shall have been pledged to and, if
certificated, deposited with the Collateral Agent and, if certificated, duly
endorsed in blank or accompanied by assignment or assignments sufficient in the
judgment of the Required Holders to transfer title thereto to the Collateral
Agent, subject to the Sharing Agreement.

     Section 4.12. Delivery of Pledged Shares. The Pledgors shall have executed
and delivered the Pledge Agreements and any Pledged Shares evidenced by
certificates shall have been delivered to the Collateral Agent under the Pledge
Agreements.

     Section 4.13. Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be
satisfactory to you and your special counsel, and you and your special counsel
shall have received all such counterpart originals or certified or other copies
of such documents as you or they may reasonably request.

Section 5.  Representations and Warranties of the Obligors.

     Each Obligor represents and warrants to you that:

    Section 5.1. Organization; Power and Authority. Each Obligor is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation, and is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. Each
Obligor has the corporate power and authority to own or hold under lease the
properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver the Financing
Agreements to which it is a party and to perform the provisions hereof and
thereof.

                                      -4-
<PAGE>

     Section 5.2. Authorization, etc. The Financing Agreements have been duly
authorized by all necessary corporate action on the part of the Obligors, and
the Financing Agreements constitute, and upon execution and delivery thereof,
each Note will constitute, a legal, valid and binding obligation of the Obligor
which is a party thereto enforceable against such Obligor in accordance with its
terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

     Section 5.3. Disclosure. The Company, through its agent, Banc One Capital
Markets, Inc. has delivered to you and each Other Purchaser a copy of a
Confidential Offering Memorandum, dated March, 2000 (the "Memorandum"), relating
to the transactions contemplated hereby. The Memorandum fairly describes, in all
material respects, the general nature of the business and principal properties
of the Company and its Subsidiaries. This Agreement, the Memorandum, the
documents, certificates or other writings delivered to you by or on behalf of
any Obligor in connection with the transactions contemplated hereby and the
financial statements listed in Schedule 5.5, taken as a whole, do not contain
any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein not misleading in light of the
circumstances under which they were made. Except as disclosed in the Memorandum,
or in one of the documents, certificates or other writings identified therein,
or in the financial statements listed in Schedule 5.5, since January 31, 2000,
there has been no change in the financial condition, operations, business,
properties or prospects of the Company or any Subsidiary except changes that
individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect. There is no fact known to any Obligor that could
reasonably be expected to have a Material Adverse Effect that has not been set
forth herein or in the Memorandum or in the other documents, certificates and
other writings delivered to you by or on behalf of any Obligor specifically for
use in connection with the transactions contemplated hereby.

     Section 5.4. Organization and Ownership of Shares of Subsidiaries;
Affiliates. (a) Schedule 5.4 contains (except as noted therein) complete and
correct lists of the Company's Subsidiaries, showing, as to each Subsidiary, the
correct name thereof, the jurisdiction of its organization, and the percentage
of shares of each class of its capital stock or similar equity interests
outstanding owned by the Company and each other Subsidiary. The Company has no
Affiliates, other than Subsidiaries. The Company's senior officers are described
in the Memorandum and its directors are described in Schedule 5.4.

      (b) All of the outstanding shares of capital stock or similar equity
interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company
and its Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by the Company or another Subsidiary free and clear of any Lien
(except as otherwise disclosed in Schedule 5.4).

      (c) Each Subsidiary identified in Schedule 5.4 is a corporation or other
legal entity duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to

                                      -5-
<PAGE>

which the failure to be so qualified or in good standing could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Each such Subsidiary has the corporate or other power and authority to own or
hold under lease the properties it purports to own or hold under lease and to
transact the business it transacts and proposes to transact.

      (d) No Subsidiary is a party to, or otherwise subject to any legal
restriction or any agreement (other than this Agreement, the agreements listed
on Schedule 5.4 and customary limitations imposed by corporate law statutes)
restricting the ability of such Subsidiary to pay dividends out of profits or
make any other similar distributions of profits to the Company or any of its
Subsidiaries that owns outstanding shares of capital stock or similar equity
interests of such Subsidiary.

     Section 5.5. Financial Statements. The Company has delivered to each
Purchaser copies of the consolidated financial statements of the Company and its
Subsidiaries listed on Schedule 5.5. Said consolidated financial statements
(including in each case the related schedules and notes) fairly present in all
material respects the consolidated financial position of the Company and its
Subsidiaries as of the respective dates specified in such Schedule and the
consolidated results of their operations and cash flows for the respective
periods so specified and have been prepared in accordance with GAAP consistently
applied throughout the periods involved except as set forth in the notes thereto
(subject, in the case of any interim financial statements, to normal year-end
adjustments).

     Section 5.6. Compliance with Laws, Other Instruments, etc. The execution,
delivery and performance by the Obligors of the Financing Agreements will not
(i) contravene, result in any breach of, or constitute a default under, or
result in the creation of any Lien in respect of any property of the Company or
any Subsidiary (other than the Collateral pursuant to the Pledge Agreements)
under, any indenture, mortgage, deed of trust, loan, purchase or credit
agreement, lease, corporate charter or by-laws, or any other agreement or
instrument to which the Company or any Subsidiary is bound or by which the
Company or any Subsidiary or any of their respective properties may be bound or
affected, (ii) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to the Company or any Subsidiary
or (iii) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary.

     Section 5.7. Governmental Authorizations, etc. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Obligors of the Financing Agreements.

     Section 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a)
There are no actions, suits or proceedings pending or, to the knowledge of the
Obligors, threatened against or affecting the Company or any Subsidiary or any
property of the Company or any Subsidiary in any court or before any arbitrator
of any kind or before or by any Governmental Authority that, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect.

                                      -6-
<PAGE>

      (b) Neither the Company nor any Subsidiary is in default under any term of
any agreement or instrument to which it is a party or by which it is bound, or
any order, judgment, decree or ruling of any court, arbitrator or Governmental
Authority or is in violation of any applicable law, ordinance, rule or
regulation (including without limitation Environmental Laws) of any Governmental
Authority, which default or violation, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

     Section 5.9.  Taxes. The Company and its Subsidiaries have filed all
material tax returns that are required to have been filed in any jurisdiction,
and have paid all taxes shown to be due and payable on such returns and all
other taxes and assessments levied upon them or their properties, assets, income
or franchises, to the extent such taxes and assessments have become due and
payable and before they have become delinquent, except for any taxes and
assessments (i) the amount of which is not individually or in the aggregate
Material or (ii) the amount, applicability or validity of which is currently
being contested in good faith by appropriate proceedings and with respect to
which the Company or a Subsidiary, as the case may be, has established adequate
reserves in accordance with GAAP. The Company knows of no basis for any other
tax or assessment that could reasonably be expected to have a Material Adverse
Effect. The charges, accruals and reserves on the books of the Company and its
Subsidiaries in respect of Federal, state or other taxes for all fiscal periods
are adequate. The Federal income tax liabilities of the Company and its
Subsidiaries have been audited by the Internal Revenue Service and paid for all
fiscal years up to and including the fiscal year ended October 31, 1994.

     Section 5.10. Title to Property; Leases. The Company and its Subsidiaries
have good and sufficient title to their respective properties that individually
or in the aggregate are Material, including all such properties reflected in the
most recent audited balance sheet referred to in Section 5.5 or purported to
have been acquired by the Company or any Subsidiary after said date (except as
sold or otherwise disposed of in the ordinary course of business), in each case
free and clear of Liens prohibited by this Agreement. All leases that
individually or in the aggregate are Material are valid and subsisting and are
in full force and effect in all material respects.

     Section 5.11.  Licenses, Permits, etc.

      (a) the Company and its Subsidiaries own or possess all licenses, permits,
franchises, authorizations, patents, copyrights, service marks, trademarks and
trade names, or rights thereto, that individually or in the aggregate are
Material, without known conflict with the rights of others;

      (b) to the best knowledge of the Company, no product of the Company
infringes in any material respect any license, permit, franchise, authorization,
patent, copyright, service mark, trademark, trade name or other right owned by
any other Person; and

      (c) to the best knowledge of the Company, there is no Material violation
by any Person of any right of the Company or any of its Subsidiaries with
respect to any patent, copyright, service mark, trademark, trade name or other
right owned or used by the Company or any of its Subsidiaries.

                                      -7-
<PAGE>

     Section 5.12. Compliance with ERISA. (a) The Company and each ERISA
Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted
in and could not reasonably be expected to result in a Material Adverse Effect.
Neither the Company nor any ERISA Affiliate has incurred any liability pursuant
to Title I or IV of ERISA or the penalty or excise tax provisions of the Code
relating to employee benefit plans (as defined in Section 3 of ERISA), and no
event, transaction or condition has occurred or exists that could reasonably be
expected to result in the incurrence of any such liability by the Company or any
ERISA Affiliate, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions
or to Section 401(a)(29) or 412 of the Code, other than such liabilities or
Liens as would not be individually or in the aggregate Material.

      (b) The present value of the aggregate benefit liabilities under each of
the Plans (other than Multiemployer Plans), determined as of the end of such
Plan's most recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan's most recent actuarial valuation
report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities.  The term "benefit liabilities" has the
meaning specified in section 4001 of ERISA and the terms "current value" and
"present value" have the meaning specified in section 3 of ERISA.

      (c) The Company and its ERISA Affiliates have not incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material.

      (d) The expected post-retirement benefit obligation (determined as of the
last day of the Company's most recently ended fiscal year in accordance with
Financial Accounting Standards Board Statement No. 106, without regard to
liabilities attributable to continuation coverage mandated by section 4980B of
the Code) of the Company and its Subsidiaries is not Material.

      (e) The execution and delivery of this Agreement and the issuance and sale
of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of section 406 of ERISA or in connection with which a tax could be
imposed pursuant to section 4975(c)(1)(A)-(D) of the Code.  The representation
by the Company in the first sentence of this Section 5.12(e) is made in reliance
upon and subject to (i) the accuracy of your representation in Section 6.2 as to
the sources of the funds used to pay the purchase price of the Notes to be
purchased by you and (ii) the assumption, made solely for the purpose of making
such representation, that Department of Labor Interpretive Bulletin 75-2 with
respect to prohibited transactions remains valid in the circumstances of the
transactions contemplated herein.

     Section 5.13. Private Offering by the Company. Neither any Obligor nor
anyone acting on behalf of any Obligor has offered the Notes or any similar
securities for sale to, or solicited any offer to buy any of the same from, or
otherwise approached or negotiated in respect thereof with, any person other
than you, the Other Purchasers and not more than 60 other Institutional
Investors, each of which has been offered the Notes and the Guaranty Agreement
at a private sale

                                      -8-
<PAGE>

for investment. Neither any Obligor nor anyone acting on behalf of an Obligor
has taken, or will take, any action that would subject the issuance or sale of
the Notes on the Guaranty Agreement to the registration requirements of Section
5 of the Securities Act.

     Section 5.14. Use of Proceeds; Margin Regulations. The Obligors will apply
the proceeds of the sale of the Notes to refinance existing indebtedness and for
general corporate purposes. No part of the proceeds from the sale of the Notes
hereunder will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System (12 CFR 221), or for the purpose of
buying or carrying or trading in any securities under such circumstances as to
involve the Company in a violation of Regulation X of said Board (12 CFR 224) or
to involve any broker or dealer in a violation of Regulation T of said Board (12
CFR 220). Margin stock does not constitute more than 1.00% of the value of the
consolidated assets of the Company and its Subsidiaries and the Company does not
have any present intention that margin stock will constitute more than 1.00% of
the value of such assets. As used in this Section, the terms "margin stock" and
"purpose of buying or carrying" shall have the meanings assigned to them in said
Regulation U.

     Section 5.15. Existing Indebtedness; Future Liens. (a) Schedule 5.15 sets
forth a complete and correct list of all outstanding Indebtedness of the Company
and its Subsidiaries as of April 30, 2000, since which date there has been no
Material change in the amounts, interest rates, sinking funds, installment
payments or maturities of the Indebtedness of the Company or its Subsidiaries
other than the incurrence of Indebtedness under the Credit Agreement and the
application of the proceeds thereof. Neither the Company nor any Subsidiary is
in default and no waiver of default is currently in effect, in the payment of
any principal or interest on any Indebtedness of the Company or such Subsidiary
and no event or condition exists with respect to any Indebtedness of the Company
or any Subsidiary that would permit (or that with notice or the lapse of time,
or both, would permit) one or more Persons to cause such Indebtedness to become
due and payable before its stated maturity or before its regularly scheduled
dates of payment.

      (b) Except as disclosed in Schedule 5.15, neither the Company nor any
Subsidiary has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned
or hereafter acquired, to be subject to a Lien not permitted by Section 10.9.

     Section 5.16. Foreign Assets Control Regulations, etc. Neither the sale of
the Notes by the Company hereunder nor its use of the proceeds thereof will
violate the Trading with the Enemy Act, as amended, or any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto.

     Section 5.17. Status under Certain Statutes. Neither the Company nor any
Subsidiary is subject to regulation under the Investment Company Act of 1940, as
amended, the Public Utility Holding Company Act of 1935, as amended, the ICC
Termination Act of 1995, as amended, or the Federal Power Act, as amended.

                                      -9-
<PAGE>

     Section 5.18. Environmental Matters. Neither the Company nor any Subsidiary
has knowledge of any claim or has received any notice of any claim, and no
proceeding has been instituted raising any claim against the Company or any of
its Subsidiaries or any of their respective real properties now or formerly
owned, leased or operated by any of them or other assets, alleging any damage to
the environment or violation of any Environmental Laws, except, in each case,
such as could not reasonably be expected to result in a Material Adverse Effect.
Except as otherwise disclosed to you in writing:

            (a) neither the Company nor any Subsidiary has knowledge of any
     facts which would give rise to any claim, public or private, of violation
     of Environmental Laws or damage to the environment emanating from,
     occurring on or in any way related to real properties now or formerly
     owned, leased or operated by any of them or to other assets or their use,
     except, in each case, such as could not reasonably be expected to result in
     a Material Adverse Effect;

            (b) neither the Company nor any of its Subsidiaries has stored any
     Hazardous Materials on real properties now or formerly owned, leased or
     operated by any of them and has not disposed of any Hazardous Materials in
     a manner contrary to any Environmental Laws in each case in any manner that
     could reasonably be expected to result in a Material Adverse Effect; and

            (c) all buildings on all real properties now owned, leased or
     operated by the Company or any of its Subsidiaries are in compliance with
     applicable Environmental Laws, except where failure to comply could not
     reasonably be expected to result in a Material Adverse Effect.

          Section 5.19. Collateral; Pledged Shares; Guaranty Agreement. The
Collateral is adequately described in and is subject to the Lien of the Pledge
Agreements subject only to the Lien of the Pledge Agreements and of the Bank
Pledge Agreements.  All documents and instruments have been (or will on the date
of Closing be) recorded, filed for record or delivered in such manner and in
such places as required to establish such Liens and to perfect and preserve
perfected Liens intended to be created thereby with the priority intended
therefor and no further action (other than the filing of continuation statements
as required by law) is (or will on the date of Closing be) required to maintain
and preserve, or effectively to put third parties on notice of, such Liens.  All
taxes and filing fees which are required to be paid or are payable in connection
with the execution, delivery or recordation of such Liens have (or at or prior
to Closing will have) been paid.  Each Domestic Subsidiary has executed the
Guaranty Agreement (other than any SPV and other than each Newly Acquired
Subsidiary).

          Section 5.20. Solvency. As of Closing, before and after giving
effect to the transactions contemplated by the Financing Agreements, (i) the
fair saleable value of the assets of the Obligors on a going concern basis will
be in excess of the total amount of its liabilities (including for purposes of
this definition all liabilities, whether or not reflected on a balance sheet
prepared in accordance with GAAP, and whether direct or indirect, fixed or
contingent, secured or unsecured, disputed or undisputed); (ii) the Obligors
will be able to pay their respective debts and obligations as they mature in the
ordinary course of its business as proposed to be conducted and

                                      -10-
<PAGE>

the Obligors will be able to make all scheduled payments on their respective
Debt; (iii) the Obligors will not have unreasonably small capital to carry out
their respective businesses as proposed to be conducted; and (iv) the Obligors
have not taken any actions with respect to the transactions contemplated by the
Financing Agreements, with actual intent to hinder, delay or defraud either
present or future creditors.

     Section 5.21. Additional Bank Representations and Warranties. Each Obligor
represents and warrants that the representations and warranties contained in the
Bank Financing Agreements are true and correct in all material respects as of
the date given.

     Section 5.22. Pari Passu Collateral. Each Obligor represents and warrants
that (excluding the exercise of rights of set-off) no Guaranty, collateral,
security or other credit enhancement has been given, directly or indirectly, for
the benefit of the Bank Financing Agreements other than (i) the Subsidiary
Guaranty, (ii) the Parent Guaranty, (iii) the Alternate Currency Guaranty and
(iv) the Bank Pledge Agreements.

Section 6.  Representations of the Purchaser.

     Section 6.1. Purchase for Investment. You represent that you are purchasing
the Notes for your own account or for one or more separate accounts maintained
by you or for the account of one or more pension or trust funds and not with a
view to the distribution thereof, provided that the disposition of your or their
property shall at all times be within your or their control. You understand that
the Notes and the Guaranty Agreement have not been registered under the
Securities Act or any state securities laws and may be resold only if registered
pursuant to the provisions of the Securities Act and any applicable state
securities laws or if an exemption from registration is available, except under
circumstances where neither such registration nor such an exemption is required
by law, and that the Obligors are not required to register the Notes or the
Guaranty Agreement under the Securities Act or any state securities laws.

     Section 6.2. Source of Funds. You represent that at least one of the
following statements is an accurate representation as to each source of funds (a
"Source") to be used by you to pay the purchase price of the Notes to be
purchased by you hereunder:

               (a) the Source is an "insurance company general account" within
      the meaning of the Department of Labor Prohibited Transactions Exemption
      ("PTE") 95-60 (issued July 12, 1995) and there is no employee benefit
      plan, treating as a single plan, all plans maintained by the same employer
      or employee organization, with respect to which the amount of the general
      account reserves and liabilities for all contracts held by or on behalf of
      such plan, exceeds ten percent (10%) of the total reserves and liabilities
      of such general account (exclusive of separate account liabilities) plus
      surplus, as set forth in NAIC Annual Statement field with your state of
      domicile; or

               (b) the Source is either (i) an insurance company pooled separate
      account, within the meaning of Prohibited Transaction Exemption ("PTE")
      90-1 (issued January 29, 1990), or (ii) a bank collective investment fund,
      within the meaning of the PTE 91-38 (issued July 12, 1991) and, except as
      you have disclosed to the Company in writing

                                      -11-
<PAGE>

      pursuant to this paragraph (b), no employee benefit plan or group of plans
      maintained by the same employer or employee organization beneficially owns
      more than 10% of all assets allocated to such pooled separate account or
      collective investment fund; or

               (c) the Source constitutes assets of an "investment fund" (within
      the meaning of Part V of the QPAM Exemption) managed by a "qualified
      professional asset manager" or "QPAM" (within the meaning of Part V of the
      QPAM Exemption), no employee benefit plan's assets that are included in
      such investment fund, when combined with the assets of all other employee
      benefit plans established or maintained by the same employer or by an
      affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of
      such employer or by the same employee organization and managed by such
      QPAM, exceed 20% of the total client assets managed by such QPAM, the
      conditions of Part l(c) and (g) of the QPAM Exemption are satisfied,
      neither the QPAM nor a person controlling or controlled by the QPAM
      (applying the definition of "control" in Section V(e) of the QPAM
      Exemption) owns a 5% or more interest in the Company and (i) the identity
      of such QPAM and (ii) the names of all employee benefit plans whose assets
      are included in such investment fund have been disclosed to the Company in
      writing pursuant to this paragraph (c); or

               (d) the Source is a governmental plan; or

               (e) the Source is one or more employee benefit plans, or a
      separate account or trust fund comprised of one or more employee benefit
      plans, each of which has been identified to the Company in writing
      pursuant to this paragraph (e); or

               (f) the Source does not include assets of any employee benefit
      plan, other than a plan exempt from the coverage of ERISA.

      As used in this Section 6.2, the terms "employee benefit plan",
"governmental plan", "party in interest" and "separate account" shall have the
respective meanings assigned to such terms in Section 3 of ERISA.

Section 7.  Information as to Company.

     Section 7.1. Financial and Business Information. The Company shall deliver
to each holder of Notes that is an Institutional Investor:

                (a) Quarterly Statements -- within 45 days after the end of each
      quarterly fiscal period in each fiscal year of the Company (other than the
      last quarterly fiscal period of each such fiscal year), duplicate copies
      of:

                    (i) a consolidated balance sheet of the Company and its
              Subsidiaries as at the end of such quarter, and

                   (ii) consolidated statements of income, changes in
              stockholders' equity and cash flows of the Company and its
              Subsidiaries for such quarter and (in the

                                      -12-
<PAGE>

              case of the second and third quarters) for the portion of the
              fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding
periods in the previous fiscal year, all in reasonable detail, prepared in
accordance with GAAP applicable to quarterly financial statements generally, and
certified by a Senior Financial Officer as fairly presenting, in all material
respects, the financial position of the companies being reported on and their
results of operations and cash flows, subject to changes resulting from year-end
adjustments, provided that delivery within the time period specified above of
copies of the Company's Quarterly Report on Form 10-Q prepared in compliance
with the requirements therefor and filed with the Securities and Exchange
Commission shall be deemed to satisfy the requirements of this Section 7.1(a);

                (b) Annual Statements -- within 90 days after the end of each
      fiscal year of the Company, duplicate copies of,

                    (i) a consolidated balance sheet of the Company and its
              Subsidiaries, as at the end of such year, and

                   (ii) consolidated statements of income, changes in
              stockholders' equity and cash flows of the Company and its
              Subsidiaries, for such year, setting forth in each case in
              comparative form the figures for the previous fiscal year, all in
              reasonable detail, prepared in accordance with GAAP, and
              accompanied by an opinion thereon of independent certified public
              accountants of recognized national standing, which opinion shall
              state that such financial statements present fairly, in all
              material respects, the financial position of the companies being
              reported upon and their results of operations and cash flows and
              have been prepared in conformity with GAAP, and that the
              examination of such accountants in connection with such financial
              statements has been made in accordance with generally accepted
              auditing standards, and that such audit provides a reasonable
              basis for such opinion in the circumstances, and

provided that the delivery within the time period specified above of the
Company's Annual Report on Form 10-K for such fiscal year (together with the
Company's annual report to stockholders, if any, prepared pursuant to Rule 14a-3
under the Exchange Act) prepared in accordance with the requirements therefor
and filed with the Securities and Exchange Commission, shall be deemed to
satisfy the requirements of this Section 7.1(b);

                (c) SEC and Other Reports -- promptly upon their becoming
      available, one copy of (i) each financial statement, report, notice or
      proxy statement sent by the Company or any Subsidiary to public securities
      holders generally, and (ii) each regular or periodic report, each
      registration statement (without exhibits except as expressly requested by
      such holder), and each prospectus and all amendments thereto filed by the
      Company or any Subsidiary with the Securities and Exchange Commission and
      of all press releases and other statements made available generally by the
      Company or any Subsidiary to the public concerning developments that are
      Material;

                                      -13-
<PAGE>

                (d) Notice of Default or Event of Default -- promptly, and in
      any event within five days after a Responsible Officer becoming aware of
      the existence of any Default or Event of Default or that any Person has
      given any notice or taken any action with respect to a claimed default
      hereunder or that any Person has given any notice or taken any action with
      respect to a claimed default of the type referred to in Section 11(f), a
      written notice specifying the nature and period of existence thereof and
      what action the Company is taking or proposes to take with respect
      thereto;

                (e) ERISA Matters -- promptly, and in any event within five days
      after a Responsible Officer becoming aware of any of the following, a
      written notice setting forth the nature thereof and the action, if any,
      that the Company or an ERISA Affiliate proposes to take with respect
      thereto:

                    (i) with respect to any Plan, any reportable event, as
              defined in section 4043(b) of ERISA and the regulations
              thereunder, for which notice thereof has not been waived pursuant
              to such regulations as in effect on the date hereof; or

                   (ii) the taking by the PBGC of steps to institute, or the
              threatening by the PBGC of the institution of, proceedings under
              section 4042 of ERISA for the termination of, or the appointment
              of a trustee to administer, any Plan, or the receipt by the
              Company or any ERISA Affiliate of a notice from a Multiemployer
              Plan that such action has been taken by the PBGC with respect to
              such Multiemployer Plan; or

                  (iii) any event, transaction or condition that could result in
              the incurrence of any liability by the Company or any ERISA
              Affiliate pursuant to Title I or IV of ERISA or the penalty or
              excise tax provisions of the Code relating to employee benefit
              plans, or in the imposition of any Lien on any of the rights,
              properties or assets of the Company or any ERISA Affiliate
              pursuant to Title I or IV of ERISA or such penalty or excise tax
              provisions, if such liability or Lien, taken together with any
              other such liabilities or Liens then existing, could reasonably be
              expected to have a Material Adverse Effect;

                (f) Notices from Governmental Authority -- promptly, and in any
      event within 30 days of receipt thereof, copies of any notice to the
      Company or any Subsidiary from any Federal or state Governmental Authority
      relating to any order, ruling, statute or other law or regulation that
      could reasonably be expected to have a Material Adverse Effect; and

                (g) Requested Information -- with reasonable promptness, such
      other data and information relating to the business, operations, affairs,
      financial condition, assets or properties of the Company or any of its
      Subsidiaries or relating to the ability of any Obligor to perform its
      obligations under the Financing Agreements as from time to time may be
      reasonably requested by any such holder of Notes.

                                      -14-
<PAGE>

     Section 7.2. Officer's Certificate. Each set of financial statements
delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b)
hereof shall be accompanied by a certificate of a Senior Financial Officer
setting forth:

                (a) Covenant Compliance -- the information (including detailed
      calculations) required in order to establish whether the Company was in
      compliance with the requirements of Section 10 hereof, inclusive, during
      the quarterly or annual period covered by the statements then being
      furnished (including with respect to each such Section, where applicable,
      the calculations of the maximum or minimum amount, ratio or percentage, as
      the case may be, permissible under the terms of such Sections, and the
      calculation of the amount, ratio or percentage then in existence); and

                (b) Event of Default -- a statement that such officer has
      reviewed the relevant terms hereof and has made, or caused to be made,
      under his or her supervision, a review of the transactions and conditions
      of the Company and its Subsidiaries from the beginning of the quarterly or
      annual period covered by the statements then being furnished to the date
      of the certificate and that such review shall not have disclosed the
      existence during such period of any condition or event that constitutes a
      Default or an Event of Default or, if any such condition or event existed
      or exists (including, without limitation, any such event or condition
      resulting from the failure of the Company or any Subsidiary to comply with
      any Environmental Law), specifying the nature and period of existence
      thereof and what action the Company shall have taken or proposes to take
      with respect thereto.

     Section 7.3. Inspection. The Company shall permit the representatives of
each holder of Notes that is an Institutional Investor:

                (a) No Default -- if no Default or Event of Default then exists,
      at the expense of such holder and upon reasonable prior notice to the
      Company, to visit the principal executive office of the Company, to
      discuss the affairs, finances and accounts of the Company and its
      Subsidiaries with the Company's officers, and (with the consent of the
      Company, which consent will not be unreasonably withheld) its independent
      public accountants, and (with the consent of the Company, which consent
      will not be unreasonably withheld) to visit the other offices and
      properties of the Company and each Subsidiary, all at such reasonable
      times (which shall be normal business hours) and as often as may be
      reasonably requested in writing; and

                (b) Default -- if a Default or Event of Default then exists, at
      the expense of the Company to visit and inspect any of the offices or
      properties of the Company or any Subsidiary, to examine all their
      respective books of account, records, reports and other papers, to make
      copies and extracts therefrom, and to discuss their respective affairs,
      finances and accounts with their respective officers and independent
      public accountants (and by this provision the Company authorizes said
      accountants to discuss the affairs, finances and accounts of the Company
      and its Subsidiaries), all at such times and as often as may be requested.

                                      -15-
<PAGE>

     Section 7.4. Additional Notices. In addition to, and not in limitation of
the foregoing provisions of this Section 7, (i) in the event that any Collateral
is proposed to be sold or transferred, the Company will give prompt written
notice thereof to the holders not less than ten (10) Business Days prior to such
disposition which notice shall include a certification by the Company with
respect to whether or not any Default or Event of Default hereunder or any
Default under the Credit Agreement would exist at the time of such proposed
disposition or after giving effect thereto and (ii) the Company will furnish
prompt written notice of any proposed payment under the Guaranty Agreement or
under the Subsidiary Guaranty to each of the holders not less than ten (10)
Business Days prior to such payment, which notice shall be accompanied by a
certificate of the Company as to whether or not a Default or Event of Default
hereunder or any Default under the Credit Agreement would exist at the time of
or after giving effect to such payment under either the Guaranty Agreement or
the Subsidiary Guaranty. Concurrently with the giving of any such notice, the
Company shall cause a copy of such notice to be furnished to the Administrative
Agent under the Credit Agreement and to the Collateral Agent under the Sharing
Agreement.

Section 8.  Prepayment of the Notes.

     Section 8.1. No Required Prepayments. The Notes are not subject to any
regularly scheduled required prepayment or installment of principal.

     Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may,
at its option, upon notice as provided below, prepay at any time all, or from
time to time any part of, the Notes, in an amount not less than 10% of the
aggregate principal amount of the Notes then outstanding in the case of a
partial prepayment, at 100% of the principal amount so prepaid, plus the Make-
Whole Amount determined for the prepayment date with respect to such principal
amount. The Company will give each holder of Notes written notice of each
optional prepayment under this Section 8.2 not less than 30 days and not more
than 60 days prior to the date fixed for such prepayment. Each such notice shall
specify such date, the aggregate principal amount of the Notes to be prepaid on
such date, the principal amount of each Note held by such holder to be prepaid
(determined in accordance with Section 8.4), and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid, and shall
be accompanied by a certificate of a Senior Financial Officer as to the
estimated Make-Whole Amount due in connection with such prepayment (calculated
as if the date of such notice were the date of the prepayment), setting forth
the details of such computation. Two Business Days prior to such prepayment, the
Company shall deliver to each holder of Notes a certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date of principal.

     Section 8.3. Change in Control.

                (a) Notice of Change in Control or Control Event. The Company
will, within five Business Days after any Responsible Officer has knowledge of
the occurrence of any Change in Control or Control Event, give written notice of
such Change in Control or Control Event to each holder of Notes unless notice in
respect of such Change in Control (or the Change in Control contemplated by such
Control Event) shall have been given pursuant to subparagraph (b) of this

                                      -16-
<PAGE>

     Section 8.3. If a Change in Control has occurred, such notice shall contain
and constitute an offer to purchase Notes as described in subparagraph (c) of
this Section 8.3 and shall be accompanied by the certificate described in
subparagraph (g) of this Section 8.3.

                (b) Condition to Company Action. The Company will not take any
action that consummates or finalizes a Change in Control unless (i) at least 60
days prior to such action it shall have given to each holder of Notes written
notice containing and constituting an offer to purchase Notes as described in
subparagraph (c) of this Section 8.3, accompanied by the certificate described
in subparagraph (g) of this Section 8.3, and (ii) contemporaneously with such
action, it purchases all Notes required to be purchased in accordance with this
Section 8.3.

                (c) Offer to Purchase Notes. The offer to purchase Notes
contemplated by subparagraphs (a) and (b) of this Section 8.3 shall be an offer
to purchase, in accordance with and subject to this Section 8.3, all, but not
less than all, of the Notes held by each holder (in this case only, "holder" in
respect of any Note registered in the name of a nominee for a disclosed
beneficial owner shall mean such beneficial owner) on a date specified in such
offer (the "Proposed Purchase Date"). If such Proposed Purchase Date is in
connection with an offer contemplated by subparagraph (a) of this Section 8.3,
such date shall be not less than 60 days and not more than 90 days after the
date of such offer (if the Proposed Purchase Date shall not be specified in such
offer, the Proposed Purchase Date shall be the 75th day after the date of such
offer).

                (d) Acceptance. A holder of Notes may accept or reject the offer
to purchase made pursuant to this Section 8.3 by causing a notice of such
acceptance or rejection to be delivered to the Company at least 15 days prior to
the Proposed Purchase Date. A failure by a holder of Notes to respond to an
offer to purchase made pursuant to this Section 8.3 shall be deemed to
constitute an acceptance of such offer by such holder.

                (e) Purchase. Purchase of the Notes to be purchased pursuant to
this Section 8.3 shall be at 100% of the principal amount of such Notes,
together with interest on such Notes accrued to the date of purchase and without
premium. The purchase shall be made on the Proposed Purchase Date except as
provided in subparagraph (f) of this Section 8.3.

                (f) Deferral Pending Change in Control. The obligation of the
Company to purchase Notes pursuant to the offers required by subparagraph (b)
and accepted in accordance with subparagraph (d) of this Section 8.3 is subject
to the occurrence of the Change in Control in respect of which such offers and
acceptances shall have been made. In the event that such Change in Control does
not occur on or prior to the Proposed Purchase Date in respect thereof, the
purchase shall be deferred until and shall be made on the date on which such
Change in Control occurs. The Company shall keep each holder of Notes reasonably
and timely informed of (i) any such deferral of the date of purchase, (ii) the
date on which such Change in Control and the purchase are expected to occur, and
(iii) any determination by the Company that efforts to effect such Change in
Control have ceased or been abandoned (in which case the offers and acceptances
made pursuant to this Section 8.3 in respect of such Change in Control shall be
deemed rescinded).

                                      -17-
<PAGE>

                (g) Officer's Certificate. Each offer to purchase the Notes
      pursuant to this Section 8.3 shall be accompanied by a certificate,
      executed by a Senior Financial Officer of the Company and dated the date
      of such offer, specifying: (i) the Proposed Purchase Date; (ii) that such
      offer is made pursuant to this Section 8.3; (iii) the principal amount of
      each Note offered to be purchased; (iv) the interest that would be due on
      each Note offered to be purchased, accrued to the Proposed Purchase Date;
      (v) that the conditions of this Section 8.3 have been fulfilled; and (vi)
      in reasonable detail, the nature and date or proposed date of the Change
      in Control.

                (h) "Change in Control" shall be deemed to have occurred if
      either (i) any person (as such term is used in section 13(d) and section
      14(d)(2) of the Exchange Act as in effect on the date of the Closing) or
      related persons constituting a Group, become the "beneficial owners" (as
      such term is used in Rule 13d-3 under the Exchange Act as in effect on the
      date of the Closing), directly or indirectly, of more than 50% of the
      total voting power of all classes then outstanding of the Company's voting
      stock or (ii) a "Change of Control" (or an event of like import) shall
      have occurred under the Credit Agreement. "Group", as used in clause (i)
      of the preceding sentence, shall mean any group of related persons
      constituting a "Group" for the purposes of Section 13(d) of the Exchange
      Act, or any successor provision.

               (i)  "Control Event" means:

                    (i) the execution by the Company or any of its Subsidiaries
              or Affiliates of any agreement or letter of intent with respect to
              any proposed transaction or event or series of transactions or
              events which, individually or in the aggregate, may reasonably be
              expected to result in a Change in Control.

                   (ii) the execution of any written agreement which, when fully
              performed by the parties thereto, would result in a Change in
              Control, or

                  (iii) the making of any written offer by any person (as such
              term is used in section 13(d) and section 14(d)(2) of the Exchange
              Act as in effect on the date of the Closing) or related persons
              constituting a group (as such term is used in Rule 13d-5 under the
              Exchange Act as in effect on the date of the Closing) to the
              holders of the common stock of the Company, which offer, if
              accepted by the requisite number of holders, would result in a
              Change in Control.

     Section 8.4.  Allocation of Partial Prepayments.  In the case of
each partial prepayment of the Notes pursuant to Section 8.2, the principal
amount of the Notes to be prepaid shall be allocated among all of the Notes at
the time outstanding in proportion, as nearly as practicable, to the respective
unpaid principal amounts thereof not theretofore called for prepayment and
without distinction as to series.

     Section 8.5.  Maturity; Surrender, etc.  In the case of each
prepayment of Notes pursuant to this Section 8, the principal amount of each
Note to be prepaid shall mature and become due and payable on the date fixed for
such prepayment, together with interest on such principal amount accrued to such
date and the applicable Make-Whole Amount, if any.  From and after such date,
unless the Company shall fail to pay such principal amount when so due and
payable,

                                      -18-
<PAGE>

together with the interest and Make-Whole Amount, if any, as aforesaid, interest
on such principal amount shall cease to accrue. Any Note paid or prepaid in full
shall be surrendered to the Company and cancelled and shall not be reissued, and
no Note shall be issued in lieu of any prepaid principal amount of any Note.

     Section 8.6. Purchase of Notes. The Company will not and will not permit
any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or
indirectly, any of the outstanding Notes except upon the payment or prepayment
of the Notes in accordance with the terms of this Agreement and the Notes. The
Company will promptly cancel all Notes acquired by it or any Affiliate pursuant
to any payment, prepayment or purchase of Notes pursuant to any provision of
this Agreement and no Notes may be issued in substitution or exchange for any
such Notes.

     Section 8.7. Make-Whole Amount. The term "Make-Whole Amount" means, with
respect to any Note of any particular Series, an amount equal to the excess, if
any, of the Discounted Value of the Remaining Scheduled Payments with respect to
the Called Principal of such Note of such series over the amount of such Called
Principal, provided that the Make-Whole Amount may in no event be less than
zero. For the purposes of determining the Make-Whole Amount, the following terms
have the following meanings:

                "Called Principal" means, with respect to any Note of any
      particular Series, the principal of such Note of such Series that is to be
      prepaid pursuant to Section 8.2 or has become or is declared to be
      immediately due and payable pursuant to Section 12.1, as the context
      requires.

                "Discounted Value" means, with respect to the Called Principal
      of any Note of any particular Series, the amount obtained by discounting
      all Remaining Scheduled Payments with respect to such Called Principal
      from their respective scheduled due dates to the Settlement Date with
      respect to such Called Principal, in accordance with accepted financial
      practice and at a discount factor (applied on the same periodic basis as
      that on which interest on the Notes is payable) equal to the Reinvestment
      Yield with respect to such Called Principal.

                "Reinvestment Yield" means, with respect to the Called Principal
      of any Note of any particular Series, the sum of (a) 0.50% per annum plus
      (b) the yield to maturity implied by (i) the yields reported, as of 10:00
      A.M. (New York City time) on the second Business Day preceding the
      Settlement Date with respect to such Called Principal, on the display
      designated as "USD" of the Bloomberg Financial Markets Services Screen (or
      such other display as may replace) for actively traded U.S. Treasury
      securities having a maturity equal to the Remaining Average Life of such
      Called Principal as of such Settlement Date, or (ii) if such yields are
      not reported as of such time or the yields reported as of such time are
      not ascertainable (including by interpolation), the Treasury Constant
      Maturity Series Yields reported, for the latest day for which such yields
      have been so reported as of the second Business Day preceding the
      Settlement Date with respect to such Called Principal, in Federal Reserve
      Statistical Release H.15 (519) (or any comparable successor publication)
      for actively traded U.S. Treasury securities having a constant maturity
      equal to the Remaining Average Life of such Called Principal as of

                                      -19-
<PAGE>

      such Settlement Date. Such implied yield will be determined, if necessary,
      by (1) converting U.S. Treasury bill quotations to bond-equivalent yields
      in accordance with accepted financial practice and (2) interpolating
      linearly between (A) the actively traded U.S. Treasury security with the
      maturity closest to and greater than the Remaining Average Life and (B)
      the actively traded U.S. Treasury security with the maturity closest to
      and less than the Remaining Average Life.

                "Remaining Average Life" means, with respect to any Called
      Principal, the number of years (calculated to the nearest one-twelfth
      year) obtained by dividing (i) such Called Principal into (ii) the sum of
      the products obtained by multiplying (a) the principal component of each
      Remaining Scheduled Payment with respect to such Called Principal by (b)
      the number of years (calculated to the nearest one-twelfth year) that will
      elapse between the Settlement Date with respect to such Called Principal
      and the scheduled due date of such Remaining Scheduled Payment.

                "Remaining Scheduled Payments" means, with respect to the Called
      Principal of any Note of a particular Series, all payments of such Called
      Principal and interest thereon that would be due after the Settlement Date
      with respect to such Called Principal if no payment of such Called
      Principal were made prior to its scheduled due date, provided that if such
      Settlement Date is not a date on which interest payments are due to be
      made under the terms of the Notes of such Series, then the amount of the
      next succeeding scheduled interest payment will be reduced by the amount
      of interest accrued to such Settlement Date and required to be paid on
      such Settlement Date pursuant to Section 8.2 or 12.1.

                "Settlement Date" means, with respect to the Called Principal of
      any Note of a particular Series, the date on which such Called Principal
      is to be prepaid pursuant to Section 8.2 or has become or is declared to
      be immediately due and payable pursuant to Section 12.1, as the context
      requires.

Section 9.  Affirmative Covenants.

      The Company covenants that so long as any of the Notes are outstanding:

     Section 9.1. Compliance with Law. The Company will and will cause each of
its Subsidiaries to comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation,
Environmental Laws, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations
necessary to the ownership of their respective properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure that
non-compliance with such laws, ordinances or governmental rules or regulations
or failures to obtain or maintain in effect such licenses, certificates,
permits, franchises and other governmental authorizations could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     Section 9.2. Insurance. The Company will and will cause each of its
Subsidiaries to maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms

                                      -20-
<PAGE>

and in such amounts (including deductibles, co-insurance and self-insurance, if
adequate reserves are maintained with respect thereto) as is customary in the
case of entities of established reputations engaged in the same or a similar
business and similarly situated.

     Section 9.3.  Maintenance of Properties. The Company will and will cause
each of its Subsidiaries to maintain and keep, or cause to be maintained and
kept, their respective properties in good repair, working order and condition
(other than ordinary wear and tear), so that the business carried on in
connection therewith may be properly conducted at all times, provided that this
Section shall not prevent the Company or any Subsidiary from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is
desirable in the conduct of its business and the Company has concluded that such
discontinuance could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     Section 9.4. Payment of Taxes and Claims. The Company will and will cause
each of its Subsidiaries to file all tax returns required to be filed in any
jurisdiction and to pay and discharge all taxes shown to be due and payable on
such returns and all other taxes, assessments, governmental charges, or levies
imposed on them or any of their properties, assets, income or franchises, to the
extent such taxes and assessments have become due and payable and before they
have become delinquent and all claims for which sums have become due and payable
that have or might become a Lien on properties or assets of the Company or any
Subsidiary, provided that neither the Company nor any Subsidiary need pay any
such tax or assessment or claims if (i) the amount, applicability or validity
thereof is contested by the Company or such Subsidiary on a timely basis in good
faith and in appropriate proceedings, and the Company or a Subsidiary has
established adequate reserves therefor in accordance with GAAP on the books of
the Company or such Subsidiary or (ii) the nonpayment of all such taxes and
assessments in the aggregate could not reasonably be expected to have a Material
Adverse Effect.

     Section 9.5. Corporate Existence, etc. The Company will at all times
preserve and keep in full force and effect its corporate existence. Subject to
Section 10.2, the Company will at all times preserve and keep in full force and
effect the corporate existence of each of its Subsidiaries (unless merged into
the Company or a Subsidiary) and all rights and franchises of the Company and
its Subsidiaries unless, in the good faith judgment of the Company, the
termination of or failure to preserve and keep in full force and effect such
corporate existence, right or franchise could not, individually or in the
aggregate, have a Material Adverse Effect.

     Section 9.6. Line of Business. The Company will not, and will not permit
any of its Subsidiaries to, engage to any substantial extent in any business
other than the businesses in which the Company and its Subsidiaries are engaged
on the date of this Agreement as described in the Memorandum and businesses
reasonably related thereto or in furtherance thereof.

     Section 9.7. Notes to Rank Pari Passu. The Notes, the Guaranty Agreement,
the Pledge Agreements and all other obligations of the Obligors under these
Financing Agreements are and at all times shall remain direct obligations of the
Obligors party thereto ranking pari passu as against the assets of the Obligors
party thereto with all other present and future Senior Debt (actual or
contingent) of the Obligors party thereto.

                                      -21-
<PAGE>

     Section 9.8. Additional Security Arrangements. The Company will (i) cause
each Person which becomes a Domestic Subsidiary subsequent to the date of
Closing and, in addition, each Newly Acquired Subsidiary, to execute and
deliver, as promptly as practicable and in any case within 20 days after the
Closing Date in the case of a Newly Acquired Subsidiary and within 60 days in
the case of any other Person becoming a Domestic Subsidiary (other than an SPV),
to the holders of the Notes, a supplement to the Guaranty Agreement reasonably
satisfactory in form and substance to the Required Holders, where under each
such Domestic Subsidiary and, in addition, each Newly Acquired Subsidiary,
becomes a party to the Guaranty Agreement as if it were an original signatory
thereto and (ii) deliver, or cause the appropriate Subsidiary to deliver, as
promptly as practicable and in any event within 60 days following the
acquisition or creation of the Material Foreign Subsidiary, the outstanding
shares of capital stock of each Person which becomes a Material Foreign
Subsidiary after the date of closing, to the Collateral Agent, and to execute
and deliver a pledge agreement reasonably satisfactory in form and substance to
the Required Holders to the end that such shares of capital stock of such new
Subsidiary become subject to the Lien of the Pledge Agreements. In addition to,
and not in limitation of, the foregoing, the Obligors will not deliver any
Guaranty, collateral, security or other credit enhancement in respect of the
Bank Financing Agreements (excluding the exercise of any right of set-off)
unless, concurrently therewith, such credit enhancement is also delivered to the
holders for the benefit of the Notes on a pari passu basis, it being agreed that
any credit enhancement subject to the Sharing Agreement shall be deemed to be on
a pari passu basis.

Section 10.  Negative and Financial Covenants.

       The Company covenants that so long as any of the Notes are outstanding:

     Section 10.1.  Transactions with Affiliates. The Company will not and will
not permit any Subsidiary to enter into directly or indirectly any Material
transaction or group of related transactions (including without limitation the
purchase, lease, sale or exchange of properties of any kind or the rendering of
any service) with any Affiliate (other than the Company or another Subsidiary),
except in the ordinary course and pursuant to the reasonable requirements of the
Company's or such Subsidiary's business and upon fair and reasonable terms no
less favorable to the Company or such Subsidiary than would be obtainable in a
comparable arm's-length transaction with a Person not an Affiliate.

     Section 10.2. Merger, Consolidation, etc. No Obligor shall consolidate with
or merge with any other corporation or convey, transfer or lease substantially
all of its assets in a single transaction or series of transactions to any
Person unless:

                (a) the successor formed by such consolidation or the survivor
      of such merger or the Person that acquires by conveyance, transfer or
      lease substantially all of the assets of such Obligor, as an entirety, as
      the case may be, shall be a solvent corporation organized and existing
      under the laws of the United States or any State thereof (including the
      District of Columbia), and, if such Obligor is not such corporation, (i)
      such corporation shall have executed and delivered to each holder of any
      Notes its assumption of the due and punctual performance and observance of
      each covenant and condition of the Financing Agreements, to which such
      Obligor was a party and (ii) shall have caused

                                      -22-
<PAGE>

      to be delivered to each holder of any Notes an opinion of nationally
      recognized independent counsel, or other independent counsel reasonably
      satisfactory to the Required Holders, to the effect that all agreements or
      instruments effecting such assumption are enforceable in accordance with
      their terms and comply with the terms hereof;

                (b) immediately after giving effect to such transaction, no
      Default or Event of Default shall have occurred and be continuing; and

                (c) immediately after giving effect to such transaction, the
      successor would be permitted to incur at least $1.00 of additional
      Indebtedness.

No such conveyance, transfer or lease of substantially all of the assets of any
Obligor shall have the effect of releasing such Obligor or any successor
corporation that shall theretofore have become such in the manner prescribed in
this Section 10.2 from its liability under the Financing Agreements to which it
is a party.  Notwithstanding anything contained in the Financing Agreements
(including, without limitation, the terms and provisions of this Section 10.2
(other than subsection 10.2(b)) to the contrary, in the event that (i) the
Obligors sell, transfer or otherwise divest themselves of 100% of their equity
interest in any other Obligor other than the Company (such Obligor then being
sold being referred to as the "Released Obligor"), and (ii) at the time of such
sale, transfer or other divestiture and after giving effect thereto, no Default
or Event of Default exists hereunder (including, without limitation, any Default
or Event of Default under Section 10.10 hereof), all obligations of such
Released Obligor hereunder and under the other Financing Agreements shall be
released concurrently with the consummation of such sale, transfer or
divestiture.

     Section 10.3. Consolidated Net Worth. The Company will at all times keep
and maintain Consolidated Net Worth at an amount not less than the sum of (a)
$185,000,000 plus (b) 40% of positive Consolidated Net Earnings on a cumulative
basis for each full fiscal quarter ending on and after July 31, 2000, provided
that for purposes of the foregoing calculation, Consolidated Net Earnings shall
be deemed to be zero (and, accordingly, shall not increase or decrease the
amount of Consolidated Net Worth required to be maintained pursuant to this
Section 10.3) for any such fiscal quarter for which Consolidated Net Earnings is
a deficit figure.

     Section 10.4. General Limitation on Incurrence of all Indebtedness. The
Company will not, and will not permit any Subsidiary to, directly or indirectly,
create, incur, assume, guarantee, or otherwise become directly or indirectly
liable with respect to, any Indebtedness, if on the date the Company or such
Subsidiary becomes liable with respect to any such Indebtedness or immediately
after giving affect thereto and the concurrent retirement of any other
Indebtedness,

                (a) any Default or Event of Default exists, or

                (b) the ratio of (i) Consolidated Debt to (ii) Consolidated
      Operating Cash Flow (which Consolidated Operating Cash Flow shall be
      determined as of the most recently ended fiscal quarter of the Company for
      the immediately preceding 12 months then ended (taken as a single
      accounting period) would exceed 3.50 to 1.00.

                                      -23-
<PAGE>

     Section 10.5. Additional Limitation on Subsidiary Indebtedness. The Company
will not at any time permit any Subsidiary to, directly or indirectly, create,
incur, assume, guarantee, have outstanding, or otherwise become or remain
directly or indirectly liable with respect to, any Indebtedness other than:

                (a) Indebtedness of a Subsidiary outstanding on the date hereof
      and described on Schedule 5.15 and any extension, renewal or refunding
      thereof, provided that the principal amount thereof is not increased;

                (b) Indebtedness of Roper Germany in an aggregate principal
      amount not in excess of U.S. $50,000,000 (or its equivalent);

                (c) Indebtedness of Subsidiary owed to the Company or a Wholly-
      Owned Subsidiary;

                (d) Indebtedness of a Subsidiary in connection with a Permitted
      Receivables Securitization Transaction, provided, that such Indebtedness,
      together with any other Indebtedness incurred pursuant to Permitted
      Receivables Securitization Transactions, shall at any time not exceed
      $100,000,000 aggregate principal amount; and

                (e) Indebtedness of a Subsidiary (including, without limitation,
      Roper Germany) in addition to the Indebtedness permitted by the foregoing
      provisions, provided, that on the date the Subsidiary incurs or otherwise
      becomes liable with respect to any such additional Debt and immediately
      after giving effect thereto and the concurrent retirement of any other
      Indebtedness, no Default or Event of Default exists including, without
      limitation, under Section 10.6.

     Section 10.6.  Additional Limitation on Priority Debt.  The Company
will not, at any time, permit Priority Debt to exceed an amount equal to 15% of
Consolidated Net Worth (which Consolidated Net Worth shall be calculated as of
the end of the then most recent full fiscal quarter of the Company).

     Section 10.7. Fixed Charges Coverage Ratio. The Company will not permit the
ratio of Consolidated Earnings Available for Fixed Charges to Consolidated Fixed
Charges to be less 1.75 to 1 determined as of the end of each fiscal quarter for
the immediately preceding twelve months then ended (taken as a single accounting
period).

     Section 10.8. Restricted Investments. The Company will not, and will not
permit its Subsidiaries, to make any Investments other than the following:

                (a) Investments in property to be used in the ordinary course of
      business of the Company and/or its Subsidiaries;

                (b) Investments in current assets arising from the sale of goods
      and services in the ordinary course of business of the Company and/or its
      Subsidiaries;

                                      -24-
<PAGE>

                (c)  [Intentionally Blank];

                (d) Investments in or advances to one or more Subsidiaries or
      any Person that concurrently with such Investment becomes a Subsidiary;

                (e) Investments in certificates of deposit and banker's
      acceptances with final maturities of one year or less issued by U.S. or
      Canadian commercial banks having capital and surplus in excess of U.S.
      $100,000,000 (or its equivalent);

                (f) Investments in commercial paper with a minimum rating of
      "A1" or "P1" by either S&P or Moody's respectively, and maturing not more
      than 270 days from the date acquired;

                (g) Investments in direct obligations of the United States
      Governmental Securities with a maturity, in each case, of one year or
      less;

                (h) Investments in Repurchase Agreements;

                (i) Investments in tax exempt state or municipal general
      obligation bond rated "AA" or better by S&P, "Aa2" or better by Moody's or
      an equivalent rating by any other credit rating agency of recognized
      national standing, provided that such obligations mature within 365 days
      from the date of acquisition thereof; and

                (j) Other Investments not to exceed, in the aggregate, 15% of
      the Consolidated Net Worth.

For the purposes of this Agreement, an Investment shall be valued at the lesser
of (i) costs or (ii) the value at which such Investment is shown on the books of
the Company and its Subsidiaries in accordance with GAAP.

     Section 10.9. Limitation on Liens. The Company will not, and will not
permit any of its Subsidiaries to, create or incur, or suffer to be incurred or
to exist, any Lien on its or their property or assets, whether now owned or
hereafter acquired or upon any income or profits therefrom, or transfer any
property for the purpose of subjecting the same to the payment of obligations in
priority to the payment of its or their general creditors, or acquire or agree
to acquire, or permit any of its Subsidiaries to acquire, any property or assets
upon conditional sales agreements or other title retention devices, except:

                (a) Liens for property taxes and assessments or governmental
      charges or levies and Liens securing claims or demands of mechanics and
      materialmen, provided payment thereof is not at the time required by
      Section 9.4;

                (b) Liens of or resulting from any judgment or award, the time
      for the appeal or petition for rehearing of which shall not have expired,
      or in respect of which the Company or a Subsidiary shall at any time in
      good faith be prosecuting an appeal or proceeding for a review and in
      respect of which a stay of execution pending such appeal

                                      -25-
<PAGE>

      or proceeding for review shall have been secured which Liens do not,
      individually or in the aggregate, materially impair the use of the
      property encumbered by any such Liens in the operation of the business of
      the Company and its Subsidiaries, taken as a whole, or the value of the
      property so encumbered for the purposes of such business;

                (c) Liens incidental to the conduct of business or the ownership
      of properties and assets (including Liens in connection with worker's
      compensation, unemployment insurance and other like laws, warehousemen's
      and attorneys' liens and landlords' liens) and Liens to secure the
      performance of bids, tenders or trade contracts, or to secure statutory
      obligations, surety or appeal bonds or other Liens of like general nature
      incurred in the ordinary course of business and not in connection with the
      incurrence of Indebtedness, provided that such Liens do not, individually
      or in the aggregate, materially impair the use of the property encumbered
      by any such Lien in the operation of the business of the Company and its
      Subsidiaries, taken as a whole, or the value of the property so encumbered
      for the purposes of such business;

                (d) minor survey exceptions or minor encumbrances, easements or
      reservations, or rights of others for rights-of-way, utilities and other
      similar purposes, or zoning or other restrictions as to the use of real
      properties, which are necessary for the conduct of the activities of the
      Company and its Subsidiaries or which customarily exist on properties of
      corporations engaged in similar activities and similarly situated and
      which do not in any event materially impair their use in the operation of
      the business of the Company and its Subsidiaries;

                (e) Liens securing Indebtedness of a Subsidiary to the Company
      or to a Wholly-Owned Subsidiary;

                (f) Liens securing Indebtedness of the Company or any Subsidiary
      existing as of the date of Closing and reflected in Schedule 5.15 hereto;

                (g) the extension, renewal or replacement of any Lien permitted
      by 10.9(f) in respect to the same property subject thereto or the
      extension or renewal of such replacement Liens (without increase of the
      principal amount of the Indebtedness secured).

                (h) Liens incurred after the date of Closing given to secure the
      payment of the purchase price incurred in connection with the acquisition,
      construction or improvement of fixed or capital assets of the Company or
      any Subsidiary, which Liens are incurred contemporaneously with or within
      180 days after the payment of such purchase price or completion of such
      construction or improvement, and Liens existing on fixed or capital assets
      at the time of acquisition thereof or at the time of acquisition by the
      Company or any Subsidiary of any business entity then owning such fixed or
      capital assets whether by merger, consolidation or acquisition of
      substantially all of its assets, and whether or not such existing Liens
      were given to secure the payment of the purchase price of the fixed or
      capital assets to which they attach, provided that (i) the Lien shall
      attach solely to the fixed or capital assets acquired, constructed or
      improved, (ii) at the time of acquisition, construction or improvement of
      such fixed assets, the aggregate amount remaining unpaid

                                      -26-
<PAGE>

      on all Indebtedness secured by Liens on such fixed or capital assets
      whether or not assumed by the Company or any Subsidiary shall not exceed
      an amount equal to 100% of the fair market value at the time of
      acquisition, construction or improvement of such fixed or capital assets
      (as determined in good faith by the Board of Directors of the Company),
      and (iii) all Indebtedness secured by such Liens shall have been incurred
      within the applicable limitations of this Agreement including, without
      limitation, Sections 10.4, 10.5 and 10.6;

                (i) any Lien on the receivables of a Subsidiary securing
      Indebtedness of such Subsidiary pursuant to a Permitted Receivables
      Securitization Transaction; and

                (j) in addition to the Liens permitted under Sections 10.9(a)
      through (i), Liens securing Indebtedness of the Company or any Subsidiary,
      provided, that such Indebtedness is permitted by the provisions hereof
      including, without limitation, Section 10.4, 10.5 and 10.6.

     Section 10.10. Sale of Assets, Etc. Except as permitted under Section 10.2,
the Company will not, and will not permit any Subsidiary to, make any Asset
Disposition unless:

                (a) in the good faith opinion of the management or the Board of
      Directors of the Company, the Asset Disposition is in exchange for
      consideration having a fair market value at least equal to that of the
      property exchanged and is in the best interests of the Company or such
      Subsidiary;

                (b) immediately after giving effect to the Asset Disposition, no
      Default or Event of Default would exist;

                (c) immediately after giving effect to the Asset Disposition,
      the net book value of all property that was the subject of any Asset
      Disposition occurring in the period of 365 days then ending would not
      exceed 15% of Consolidated Total Assets as of the end of the then most
      recently ended fiscal quarter of the Company; and

                (d) the Company would be permitted to incur at least $1.00 of
      additional Debt pursuant to the provisions of Section 10.4.

                To the extent that the Net Proceeds Amount for any Asset
      Disposition is applied to a Debt Offered Prepayment Application and/or is
      applied to, or committed in writing to, a Property Reinvestment
      Application, in each case within 365 days after the consummation of such
      Asset Disposition (and, in the case of any such commitment, such Property
      Reinvestment Application is actually consummated within 30 days after the
      expiration of such 365-day period), then, to the extent of such
      application, such Asset Disposition shall be excluded from any
      calculations set forth in clause (c) above.

                For purposes of determining the net book value of any property
      that is the subject of an Asset Disposition, such net book value shall be
      the net book value of such property, as determined in accordance with
      GAAP, at the time of the consummation of such Asset

                                      -27-
<PAGE>

      Disposition, provided that, in the case of a Transfer of any capital stock
      or other equity interests of a Subsidiary, the net book value thereof
      shall be deemed to be an amount equal to

                        (A) the difference (determined after eliminating all
                intra-company transactions, assets and liabilities in accordance
                with GAAP) of

                            (1) the net book value of the total assets of such
                                Subsidiary less

                            (2) the liabilities of such Subsidiary times

                        (B) a percentage that is equal to the percentage of
                total equity interests of such Subsidiary attributable to the
                capital stock or other equity interest being so Transferred.

Section 11.  Events of Default.

      An "Event of Default" shall exist if any of the following conditions or
events shall occur and be continuing:

                (a) default in the payment of any principal or Make-Whole
      Amount, if any, on any Note when the same becomes due and payable, whether
      at maturity or at a date fixed for prepayment or by declaration or
      otherwise; or

                (b) default in the payment of any interest on any Note for more
      than five Business Days after the same becomes due and payable; or

                (c) default in the performance of or compliance with any term
      contained in Section 10; or

                (d) an Obligor defaults in the performance of or compliance with
      any term contained herein (other than those referred to in paragraphs (a),
      (b) and (c) of this Section 11) or in any other term of any Financing
      Agreement and such default is not remedied within 30 days after the
      earlier of (i) a Responsible Officer obtaining actual knowledge of such
      default and (ii) the Company receiving written notice of such default from
      any holder of a Note (any such written notice to be identified as a
      "notice of default" and to refer specifically to this paragraph (d) of
      Section 11), or the Guaranty Agreement or any Pledge Agreement fails to be
      in full force and effect; or

                (e) any representation or warranty made in writing by or on
      behalf of an Obligor or by any officer of an Obligor in any Financing
      Agreement or in any writing furnished in connection with the transactions
      contemplated hereby proves to have been false or incorrect in any material
      respect on the date as of which made; or

                                      -28-
<PAGE>

                (f) (i) the Company or any Subsidiary is in default (as
      principal or as guarantor or other surety) in the payment of any principal
      of or premium or make-whole amount or interest on any Indebtedness that is
      outstanding in an aggregate principal amount of at least $10,000,000
      beyond any period of grace provided with respect thereto, or (ii) the
      Company or any Subsidiary is in default in the performance of or
      compliance with any term of any evidence of any Indebtedness in an
      aggregate outstanding principal amount of at least $10,000,000 or of any
      mortgage, indenture or other agreement relating thereto or any other
      condition exists, and as a consequence of such default or condition such
      Indebtedness has become, or has been declared (or one or more Persons are
      entitled for a period of at least 30 days to declare such Indebtedness to
      be), due and payable before its stated maturity or before its regularly
      scheduled dates of payment, or (iii) as a consequence of the occurrence or
      continuation of any event or condition (other than the passage of time or
      the right of the holder of Indebtedness to convert such Indebtedness into
      equity interests), (x) the Company or any Subsidiary has become obligated
      to purchase or repay Indebtedness before its regular maturity or before
      its regularly scheduled dates of payment in an aggregate outstanding
      principal amount of at least $10,000,000, or (y) one or more Persons have
      the right to require the Company or any Subsidiary so to purchase or repay
      such Indebtedness for a period of at least 30 days; or

                (g) the Company or any Subsidiary (i) is generally not paying,
      or admits in writing its inability to pay, its debts as they become due,
      (ii) files, or consents by answer or otherwise to the filing against it
      of, a petition for relief or reorganization or arrangement or any other
      petition in bankruptcy, for liquidation or to take advantage of any
      bankruptcy, insolvency, reorganization, moratorium or other similar law of
      any jurisdiction, (iii) makes an assignment for the benefit of its
      creditors, (iv) consents to the appointment of a custodian, receiver,
      trustee or other officer with similar powers with respect to it or with
      respect to any substantial part of its property, (v) is adjudicated as
      insolvent or to be liquidated, or (vi) takes corporate action for the
      purpose of any of the foregoing; or

                (h) a court or governmental authority of competent jurisdiction
      enters an order appointing, without consent by the Company or any of its
      Subsidiaries, a custodian, receiver, trustee or other officer with similar
      powers with respect to it or with respect to any substantial part of its
      property, or constituting an order for relief or approving a petition for
      relief or reorganization or any other petition in bankruptcy or for
      liquidation or to take advantage of any bankruptcy or insolvency law of
      any jurisdiction, or ordering the dissolution, winding-up or liquidation
      of the Company or any of its Subsidiaries, or any such petition shall be
      filed against the Company or any of its Subsidiaries and such petition
      shall not be dismissed within 60 days; or

                (i) a final judgment or judgments for the payment of money
      aggregating in excess of $10,000,000 (net of insurance coverage, provided,
      that (i) the insurance carrier has acknowledged in writing its obligation
      to satisfy such judgment or judgments and (ii) such insurance carrier is
      solvent and has a long term debt rating which is at least investment
      grade) are rendered against one or more of the Company and its
      Subsidiaries and which judgments are not, within 60 days after entry
      thereof, bonded, discharged or

                                      -29-
<PAGE>

      stayed pending appeal, or are not discharged within 60 days after the
      expiration of such stay; or

                (j) if (i) any Plan shall fail to satisfy the minimum funding
      standards of ERISA or the Code for any plan year or part thereof or a
      waiver of such standards or extension of any amortization period is sought
      or granted under section 412 of the Code, (ii) a notice of intent to
      terminate any Plan shall have been or is reasonably expected to be filed
      with the PBGC or the PBGC shall have instituted proceedings under ERISA
      section 4042 to terminate or appoint a trustee to administer any Plan or
      the PBGC shall have notified the Company or any ERISA Affiliate that a
      Plan may become a subject of any such proceedings, (iii) the aggregate
      "amount of unfunded benefit liabilities" (within the meaning of section
      4001(a)(18) of ERISA) under all Plans, determined in accordance with Title
      IV of ERISA, shall exceed $10,000,000, (iv) the Company or any ERISA
      Affiliate shall have incurred or is reasonably expected to incur any
      liability pursuant to Title I or IV of ERISA or the penalty or excise tax
      provisions of the Code relating to employee benefit plans, (v) the Company
      or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the
      Company or any Subsidiary establishes or amends any employee welfare
      benefit plan that provides post-employment welfare benefits in a manner
      that would increase the liability of the Company or any Subsidiary
      thereunder; and any such event or events described in clauses (i) through
      (vi) above, either individually or together with any other such event or
      events, could reasonably be expected to have a Material Adverse Effect.

As used in Section 11(j), the terms "employee benefit plan" and "employee
welfare benefit plan" shall have the respective meanings assigned to such terms
in Section 3 of ERISA.

Section 12.  Remedies on Default, etc.

     Section 12.1. Acceleration. (a) If an Event of Default with respect to the
Company described in paragraph (g) or (h) of Section 11 (other than an Event of
Default described in clause (i) of paragraph (g) or described in clause (vi) of
paragraph (g) by virtue of the fact that such clause encompasses clause (i) of
paragraph (g)) has occurred, all the Notes then outstanding shall automatically
become immediately due and payable.

      (b) If any other Event of Default has occurred and is continuing, any
holder or holders of more than 51% in principal amount of the Notes at the time
outstanding may at any time at its or their option, by notice or notices to the
Company, declare all the Notes then outstanding to be immediately due and
payable.

      (c) If any Event of Default described in paragraph (a) or (b) of Section
11 has occurred and is continuing, any holder or holders of Notes at the time
outstanding affected by such Event of Default may at any time, at its or their
option, by notice or notices to the Company, declare all the Notes held by it or
them to be immediately due and payable.

     Upon any Notes becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal

                                      -30-
<PAGE>

amount of such Notes, plus (x) all accrued and unpaid interest thereon and (y)
the Make-Whole Amount determined in respect of such principal amount (to the
full extent permitted by applicable law), shall all be immediately due and
payable, in each and every case without presentment, demand, protest or further
notice, all of which are hereby waived. The Company acknowledges, and the
parties hereto agree, that each holder of a Note has the right to maintain its
investment in the Notes free from repayment by the Company (except as herein
specifically provided for), and that the provision for payment of a Make-Whole
Amount by the Company in the event that the Notes are prepaid or are accelerated
as a result of an Event of Default, is intended to provide compensation for the
deprivation of such right under such circumstances.

     Section 12.2. Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become or
have been declared immediately due and payable under Section 12.1, the holder of
any Note at the time outstanding may proceed to protect and enforce the rights
of such holder by an action at law, suit in equity or other appropriate
proceeding, whether for the specific performance of any agreement contained
herein or in any Note or in any other Financing Agreement, or for an injunction
against a violation of any of the terms hereof or thereof, or in aid of the
exercise of any power granted hereby or thereby or by law or otherwise.

     Section 12.3. Rescission. At any time after any Notes have been declared
due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of
not less than 51% in principal amount of the Notes then outstanding, by written
notice to the Company, may rescind and annul any such declaration and its
consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of and Make-Whole Amount, if any, on any Notes that are due and
payable and are unpaid other than by reason of such declaration, and all
interest on such overdue principal and Make-Whole Amount, if any, and (to the
extent permitted by applicable law) any overdue interest in respect of the
Notes, at the Default Rate, (b) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17, and (c)
no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this Section
12.3 will extend to or affect any subsequent Event of Default or Default or
impair any right consequent thereon.

     Section 12.4. No Waivers or Election of Remedies, Expenses, etc. No course
of dealing and no delay on the part of any holder of any Note in exercising any
right, power or remedy shall operate as a waiver thereof or otherwise prejudice
such holder's rights, powers or remedies. No right, power or remedy conferred by
this Agreement or by any Note upon any holder thereof shall be exclusive of any
other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the
obligations of the Company under Section 15, the Company will pay to the holder
of each Note on demand such further amount as shall be sufficient to cover all
reasonable costs and expenses of such holder incurred in any enforcement or
collection under this Section 12, including, without limitation, reasonable
attorneys' fees, expenses and disbursements.

                                      -31-
<PAGE>

Section 13.  Registration; Exchange; Substitution of Notes.

     Section 13.1. Registration of Notes. The Company shall keep at its
principal executive office a register for the registration and registration of
transfers of Notes. The name and address of each holder of one or more Notes,
each transfer thereof and the name and address of each transferee of one or more
Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered
shall be deemed and treated as the owner and holder thereof for all purposes
hereof, and the Company shall not be affected by any notice or knowledge to the
contrary. The Company shall give to any holder of a Note that is an
Institutional Investor promptly upon request therefor, a complete and correct
copy of the names and addresses of all registered holders of Notes.

     Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note at
the principal executive office of the Company for registration of transfer or
exchange (and in the case of a surrender for registration of transfer, duly
endorsed or accompanied by a written instrument of transfer duly executed by the
registered holder of such Note or his attorney duly authorized in writing and
accompanied by the address for notices of each transferee of such Note or part
thereof), the Company shall execute and deliver, at the Company's expense
(except as provided below), one or more new Notes of the appropriate series (as
requested by the holder thereof) in exchange therefor, in an aggregate principal
amount equal to the unpaid principal amount of the surrendered Note provided,
however, that the Company shall not be obligated to effect a transfer of Notes
which would constitute a public distribution requiring registration of such
Notes under applicable federal or state securities laws. Each such new Note
shall be payable to such Person as such holder may request and shall be
substantially in the form of Exhibit 1. Each such new Note shall be dated and
bear interest from the date to which interest shall have been paid on the
surrendered Note or dated the date of the surrendered Note if no interest shall
have been paid thereon. The Company may require payment of a sum sufficient to
cover any stamp tax or governmental charge imposed in respect of any such
transfer of Notes. Notes shall not be transferred in denominations of less than
$100,000, provided that if necessary to enable the registration of transfer by a
holder of its entire holding of Notes, one Note may be in a denomination of less
than $100,000. Any transferee, by its acceptance of a Note registered in its
name (or the name of its nominee), shall be deemed to have made the
representation set forth in Section 6.2.

     Section 13.3. Replacement of Notes. Upon receipt by the Company of evidence
reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

                (a) in the case of loss, theft or destruction, of indemnity
      reasonably satisfactory to it (provided that if the holder of such Note
      is, or is a nominee for, an original Purchaser or another holder of a Note
      with a minimum net worth of at least $10,000,000, such Person's own
      unsecured agreement of indemnity shall be deemed to be satisfactory), or

                (b) in the case of mutilation, upon surrender and cancellation
      thereof,

                                      -32-
<PAGE>

the Company at its own expense shall execute and deliver, in lieu thereof, a new
Note of the appropriate series, dated and bearing interest from the date to
which interest shall have been paid on such lost, stolen, destroyed or mutilated
Note or dated the date of such lost, stolen, destroyed or mutilated Note if no
interest shall have been paid thereon.

Section 14.  Payments on Notes.

     Section 14.1. Place of Payment. Subject to Section 14.2, payments of
principal, Make-Whole Amount, if any, and interest becoming due and payable on
the Notes shall be made in Chicago, Illinois at the principal office of Bank
One, NA, in such jurisdiction. The Company may at any time, by notice to each
holder of a Note, change the place of payment of the Notes so long as such place
of payment shall be either the principal office of the Company in such
jurisdiction or the principal office of a bank or trust company in such
jurisdiction.

     Section 14.2.  Home Office Payment. So long as you or your nominee shall be
the holder of any Note, and notwithstanding anything contained in Section 14.1
or in such Note to the contrary, the Company will pay all sums becoming due on
such Note for principal, Make-Whole Amount, if any, and interest by the method
and at the address specified for such purpose below your name in Schedule A, or
by such other method or at such other address as you shall have from time to
time specified to the Company in writing for such purpose, without the
presentation or surrender of such Note or the making of any notation thereon,
except that upon written request of the Company made concurrently with or
reasonably promptly after payment or prepayment in full of any Note, you shall
surrender such Note for cancellation, reasonably promptly after any such
request, to the Company at its principal executive office or at the place of
payment most recently designated by the Company pursuant to Section 14.1. Prior
to any sale or other disposition of any Note held by you or your nominee you
will, at your election, either endorse thereon the amount of principal paid
thereon and the last date to which interest has been paid thereon or surrender
such Note to the Company in exchange for a new Note or Notes pursuant to Section
13.2. The Company will afford the benefits of this Section 14.2 to any
Institutional Investor that is the direct or indirect transferee of any Note
purchased by you under this Agreement and that has made the same agreement
relating to such Note as you have made in this Section 14.2.

Section 15.  Expenses, Etc.

     Section 15.1.  Transaction Expenses. Whether or not the transactions
contemplated hereby are consummated, the Obligors, jointly and severally, will
pay all costs and expenses (including reasonable attorneys' fees of a special
counsel and, if reasonably required, local or other counsel) incurred by you and
each Other Purchaser or holder of a Note in connection with such transactions
and in connection with any amendments, waivers or consents under or in respect
of this Agreement or the Notes or any other Financing Document (whether or not
such amendment, waiver or consent becomes effective), including, without
limitation: (a) the costs and expenses incurred in enforcing or defending (or
determining whether or how to enforce or defend) any rights under this Agreement
or the Notes or any other Financing Document or in responding to any subpoena or
other legal process or informal investigative demand issued in

                                      -33-
<PAGE>

connection with this Agreement or the Notes or any other Financing Document, or
by reason of being a holder of any Note, and (b) the costs and expenses,
including financial advisors' fees, incurred in connection with the insolvency
or bankruptcy of the Company or any Subsidiary or in connection with any work-
out or restructuring of the transactions contemplated hereby and by the Notes or
any other Financing Document. The Obligors, jointly and severally, will pay, and
will save you and each other holder of a Note harmless from, all claims in
respect of any fees, costs or expenses, if any, of brokers and finders (other
than those retained by you).

     Section 15.2. Survival. The obligations of the Obligors under this Section
15 will survive the payment or transfer of any Note, the enforcement, amendment
or waiver of any provision of this Agreement or the Notes or any other Financing
Agreement, and the termination of this Agreement or any other Financing
Agreement.

Section 16.  Survival of Representations and Warranties; Entire Agreement.

     All representations and warranties contained herein and in the other
Financing Agreements shall survive the execution and delivery of this Agreement
and the other Financing Agreements, the purchase or transfer by you of any Note
or portion thereof or interest therein and the payment of any Note, and may be
relied upon by any subsequent holder of a Note, regardless of any investigation
made at any time by or on behalf of you or any other holder of a Note.  All
statements contained in any certificate or other instrument delivered by or on
behalf of the Company pursuant to any Financing Agreement shall be deemed
representations and warranties of the Company under this Agreement.  Subject to
the preceding sentence, the Financing Agreements embody the entire agreement and
understanding between you and the Obligors and supersede all prior agreements
and understandings relating to the subject matter hereof.

Section 17.  Amendment and Waiver.

     Section 17.1. Requirements. This Agreement and the Notes may be amended,
and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of the
Obligors and the Required Holders, except that (a) no amendment or waiver of any
of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term
(as it is used therein), will be effective as to you unless consented to by you
in writing, and (b) no such amendment or waiver may, without the written consent
of the holder of each Note at the time outstanding affected thereby, (i) subject
to the provisions of Section 12 relating to acceleration or rescission, change
the amount or time of any prepayment or payment of principal of, or reduce the
rate or change the time of payment or method of computation of interest or of
the Make-Whole Amount on, the Notes, (ii) change the percentage of the principal
amount of the Notes the holders of which are required to consent to any such
amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or
20.

     Section 17.2.  Solicitation of Holders of Notes.

      (a) Solicitation.  The Company will provide each holder of the Notes
(irrespective of the amount of Notes then owned by it) with sufficient
information, sufficiently far in advance of

                                      -34-
<PAGE>

the date a decision is required, to enable such holder to make an informed and
considered decision with respect to any proposed amendment, waiver or consent in
respect of any of the provisions hereof or of the Notes. The Company will
deliver executed or true and correct copies of each amendment, waiver or consent
effected pursuant to the provisions of this Section 17 to each holder of
outstanding Notes promptly following the date on which it is executed and
delivered by, or receives the consent or approval of, the requisite holders of
Notes.

      (b) Payment.  No Obligor will directly or indirectly pay or cause to be
paid any remuneration, whether by way of supplemental or additional interest,
fee or otherwise, or grant any security, to any holder of Notes as consideration
for or as an inducement to the entering into by any holder of Notes or any
waiver or amendment of any of the terms and provisions hereof unless such
remuneration is concurrently paid, or security is concurrently granted, on the
same terms, ratably to each holder of Notes then outstanding even if such holder
did not consent to such waiver or amendment.

     Section 17.3. Binding Effect, etc. Any amendment or waiver consented to as
provided in this Section 17 applies equally to all holders of Notes and is
binding upon them and upon each future holder of any Note and upon the Obligors
without regard to whether such Note has been marked to indicate such amendment
or waiver. No such amendment or waiver will extend to or affect any obligation,
covenant, agreement, Default or Event of Default not expressly amended or waived
or impair any right consequent thereon. No course of dealing between an Obligor
and the holder of any Note nor any delay in exercising any rights hereunder or
under any Note shall operate as a waiver of any rights of any holder of such
Note. As used herein, the term "this Agreement" and references thereto shall
mean this Agreement as it may from time to time be amended or supplemented.

     Section 17.4. Notes Held by an Obligor, etc. Solely for the purpose of
determining whether the holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes, or
have directed the taking of any action provided herein or in the Notes to be
taken upon the direction of the holders of a specified percentage of the
aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by an Obligor or any of its Affiliates shall be deemed not to
be outstanding.

Section 18.  Notices.

     All notices and communications provided for hereunder shall be in writing
and sent (a) by telecopy if the sender on the same day sends a confirming copy
of such notice by a recognized overnight delivery service (charges prepaid), or
(b) by registered or certified mail with return receipt requested (postage
prepaid), or (c) by a recognized overnight delivery service (with charges
prepaid).  Any such notice must be sent:

             (i) if to you or your nominee, to you or it at the address
     specified for such communications in Schedule A, or at such other address
     as you or it shall have specified to the Company in writing,

                                      -35-
<PAGE>

            (ii) if to any other holder of any Note, to such holder at such
     address as such other holder shall have specified to the Company in
     writing, or

           (iii) if to an Obligor, to the Company at its address set forth at
     the beginning hereof to the attention of Chief Financial Officer, or at
     such other address as the Company shall have specified to the holder of
     each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

Section 19.  Reproduction of Documents.

     The Financing Agreements and all documents relating thereto, including,
without limitation, (a) consents, waivers and modifications that may hereafter
be executed, (b) documents received by you at the Closing (except the Notes
themselves), and (c) financial statements, certificates and other information
previously or hereafter furnished to you, may be reproduced by you by any
photographic, photostatic, microfilm, microcard, miniature photographic or other
similar process and you may destroy any original document so reproduced.  Each
Obligor agrees and stipulates that, to the extent permitted by applicable law,
any such reproduction shall be admissible in evidence as the original itself in
any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by you in the regular
course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence.  This Section 19
shall not prohibit an Obligor or any other holder of Notes from contesting any
such reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.

Section 20.  Confidential Information.

     For the purposes of this Section 20, "Confidential Information" means
information delivered to you by or on behalf of the Company or any Subsidiary in
connection with the transactions contemplated by or otherwise pursuant to the
Financing Agreements that is proprietary in nature and that was clearly marked
or labeled or otherwise adequately identified when received by you as being
confidential information of the Company or such Subsidiary, provided that such
term does not include information that (a) was publicly known or otherwise known
to you prior to the time of such disclosure, (b) subsequently becomes publicly
known through no act or omission by you or any person acting on your behalf, (c)
otherwise becomes known to you other than through disclosure by the Company or
any Subsidiary or (d) constitutes financial statements delivered to you under
Section 7.1 that are otherwise publicly available.  You will maintain the
confidentiality of such Confidential Information in accordance with procedures
adopted by you in good faith to protect confidential information of third
parties delivered to you, provided that you may deliver or disclose Confidential
Information to (i) your directors, officers, employees, agents, attorneys and
affiliates (to the extent such disclosure reasonably relates to the
administration of the investment represented by your Notes), (ii) your financial
advisors and other professional advisors who agree to hold confidential the
Confidential Information substantially in accordance with the terms of this
Section 20, (iii) any other holder of

                                      -36-
<PAGE>

any Note, (iv) any Institutional Investor to which you sell or offer to sell
such Note or any part thereof or any participation therein (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 20), (v) any Person from which you offer
to purchase any security of the Company (if such Person has agreed in writing
prior to its receipt of such Confidential Information to be bound by the
provisions of this Section 20), (vi) any federal or state regulatory authority
having jurisdiction over you, (vii) the National Association of Insurance
Commissioners or any similar organization, or any nationally recognized rating
agency that requires access to information about your investment portfolio or
(viii) any other Person to which such delivery or disclosure may be necessary or
appropriate (w) to effect compliance with any law, rule, regulation or order
applicable to you, (x) in response to any subpoena or other legal process, (y)
in connection with any litigation to which you are a party or (z) if an Event of
Default has occurred and is continuing, to the extent you may reasonably
determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under your Notes
and the Financing Agreements. Each holder of a Note, by its acceptance of a
Note, will be deemed to have agreed to be bound by and to be entitled to the
benefits of this Section 20 as though it were a party to this Agreement. On
reasonable request by the Company in connection with the delivery to any holder
of a Note of information required to be delivered to such holder under this
Agreement or requested by such holder (other than a holder that is a party to
this Agreement or its nominee), such holder will enter into an agreement with
the Company embodying the provisions of this Section 20.

Section 21.  Substitution of Purchaser.

     You shall have the right to substitute any one of your Affiliates as the
purchaser of the Notes that you have agreed to purchase hereunder, by written
notice to the Company, which notice shall be signed by both you and such
Affiliate, shall contain such Affiliate's agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in Section 6.  Upon receipt
of such notice, wherever the word "you" is used in this Agreement (other than in
this Section 21), such word shall be deemed to refer to such Affiliate in lieu
of you.  In the event that such Affiliate is so substituted as a purchaser
hereunder and such Affiliate thereafter transfers to you all of the Notes then
held by such Affiliate, upon receipt by the Company of notice of such transfer,
wherever the word "you" is used in this Agreement (other than in this Section
21), such word shall no longer be deemed to refer to such Affiliate, but shall
refer to you, and you shall have all the rights of an original holder of the
Notes under this Agreement.

Section 22.  Miscellaneous.

     Section 22.1. Successors and Assigns. All covenants and other agreements
contained in this Agreement by or on behalf of any of the parties hereto bind
and inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent holder of a Note) whether so expressed or
not. In the event of any sale or transfer of the Notes, the holder selling its
Notes specifically acknowledges and agrees that it is assigning its right title
and interest in the Notes and the other Financing Agreements to the transferee
thereof and the

                                      -37-
<PAGE>

transferee or purchaser of such Notes specifically accepts the assignment by the
selling or transferring holder of all of its right title and interest under the
Notes and the other Financing Agreements.

     Section 22.2. Payments Due on Non-Business Days.  Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal
of or Make-Whole Amount or interest on any Note that is due on a date other than
a Business Day shall be made on the next succeeding Business Day without
including the additional days elapsed in the computation of the interest payable
on such next succeeding Business Day.

     Section 22.3. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law)
not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 22.4. Construction. Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

     Section 22.5. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which together shall
constitute one instrument. Each counterpart may consist of a number of copies
hereof, each signed by less than all, but together signed by all, of the parties
hereto.

     Section 22.6. Governing Law. This Agreement shall be construed and enforced
in accordance with, and the rights of the parties shall be governed by, the law
of the State of Illinois excluding choice-of-law principles of the law of such
State that would require the application of the laws of a jurisdiction other
than such State.

                           *     *     *     *     *

                                      -38-
<PAGE>

     If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company, whereupon the foregoing shall become a binding agreement between you
and each of the respective Obligors.

                                 Very truly yours,

                                 Roper Industries, Inc.
                                 Acton Research Corporation
                                 Amot Controls Corporation
                                 Amot/Metrix Investment Company, Inc.
                                 Amot Sales Corporation
                                 Compressor Controls Corporation
                                 Cornell Pump Company
                                 Cornell Pump Manufacturing Corporation
                                 Cybor Corporation
                                 Fluid Metering, Inc.
                                 ISL International, Inc.
                                 Petrotech, Inc.
                                 Redlake Imaging Corporation
                                 Roper Holdings, Inc.
                                 Roper Pump Company
                                 Roper Scientific MASD, Inc.
                                 Roper Scientific, Inc.
                                 Integrated Designs L.P.
                                 Metrix Instrument Co., L.P.
                                 Petroleum Analyzer L.P.
                                 Uson L.P.
                                 Roper International, Inc.
                                 Compressor Controls Corporation
                                 Roper Industrial Products Investment Company
                                 Gatan International Inc.
                                 Gatan Inc.
                                 Gatan Service Corporation
                                 Flowdata Inc.
                                 Molecular Imaging Corporation
                                 Petrotech International, Inc.

                                 By  /s/ Martin S. Headley
                                     Title:  Vice President

                                      -39-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Pacific Life Insurance Company

                                 By  /s/ Larry Card
                                     Name:  /s/ Larry Card
                                     Title:  Executive Vice President

                                 By  /s/ Peter S. Fiek
                                     Name:  /s/ Peter S. Fiek
                                     Title:  Assistant Secretary

                                      -40-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Connecticut General Life Insurance Company

                                 By:  CIGNA Investments, Inc. (authorized agent)

                                      By  /s/ Lawrence A. Drake
                                          Name:  /s/ Lawrence A. Drake
                                          Title:  Managing Director

                                      -41-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 Life Insurance Company of North America

                                 By:  CIGNA Investments, Inc. (authorized agent)

                                      By  /s/ Lawrence A. Drake
                                          Name:  /s/ Lawrence A. Drake
                                          Title:  Managing Director

                                      -42-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 American Family Life Insurance Company

                                 By  /s/ Phillip Hannifan
                                     Name:  /s/ Phillip Hannifan
                                     Title:  Investment Director

                                      -43-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 Berkshire Life Insurance Company

                                 By  /s/ Ellen I. Whittaker
                                     Name:  /s/ Ellen I. Whittaker
                                     Title:  Senior Investment Officer

                                      -44-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Allstate Life Insurance Company

                                 By  /s/ Ronald A. Mendel
                                     Name:  /s/ Ronald A. Mendel

                                 By  /s/ Patricia W. Wilson
                                     Name:  /s/ Patricia W. Wilson
                                     Authorized Signatories

                                      -45-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Allstate Insurance Company

                                 By  /s/ Ronald A. Mendel
                                     Name:  /s/ Ronald A. Mendel

                                 By  /s/ Patricia W. Wilson
                                     Name:  /s/ Patricia W. Wilson
                                     Authorized Signatories

                                      -46-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Columbia Universal Life Insurance Co.

                                 By /s/ Ronald A. Mendel
                                    Name: /s/ Ronald A. Mendel

                                 By /s/ Patricia W. Wilson
                                    Name: /s/ Patricia W. Wilson
                                    Authorized Signatories

                                      -47-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Massachusetts Mutual Life Insurance Company

                                 By:  David L. Babson & Company Inc., as
                                      Investment Adviser

                                      By  /s/ Kathleen Lynch
                                          Name:  /s/ Kathleen Lynch
                                          Title:  Managing Director

                                      -48-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 C.M. Life Insurance Company

                                 By:  David L. Babson & Company Inc., as
                                      Investment Sub-adviser

                                      By  /s/ Kathleen Lynch
                                          Name:  /s/ Kathleen Lynch
                                          Title:  Managing Director

                                      -49-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.
                                 Mutual of Omaha Insurance Company

                                 By  /s/ Edwin H. Garrison Jr.
                                     Name:  /s/ Edwin H. Garrison Jr.
                                     Title:  First Vice President

                                      -50-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 United of Omaha Life Insurance Company

                                 By  /s/ Edwin H. Garrison Jr.
                                     Name:  /s/ Edwin H. Garrison Jr.
                                     Title:  First Vice President

                                      -51-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 Companion Life Insurance Company

                                 By  /s/ Edwin H. Garrison Jr.
                                     Name:  /s/ Edwin H. Garrison Jr.
                                     Title:  Assistant Treasurer

                                      -52-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 United World Life Insurance Company

                                 By  /s/ Edwin H. Garrison Jr.
                                     Name:  /s/ Edwin H. Garrison Jr.
                                     Title:  Authorized Signer

                                      -53-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                                 Ameritas Life Insurance Corp.

                                 By:  Ameritas Investment Advisors, Inc., as
                                      Agent

                                      By  /s/ Patrick J. Henry
                                      Name:  /s/ Patrick J. Henry
                                      Title:  Vice President - Fixed Income
                                      Securities

                                      -54-
<PAGE>

The foregoing is hereby agreed
to as of the date thereof.

                               Acacia Life Insurance Company

                               By:  Ameritas Investment Advisors, Inc., as
                                    Agent

                                    By  /s/ Patrick J. Henry
                                        Name:  /s/ Patrick J. Henry
                                        Vice President - Fixed Income Securities

                                     -55-<PAGE>

                                                                   EXHIBIT 10.06

              ROPER INDUSTRIES, INC. NON-QUALIFIED RETIREMENT PLAN

     THIS INDENTURE is made as of this 1st day of November, 1997, by Roper
Industries, Inc., a corporation duly organized and existing under the laws of
the State of Delaware (hereinafter called the "Primary Sponsor").

                              W I T N E S S E T H:
                              -------------------

     WHEREAS, the Primary Sponsor and certain of its affiliates maintain the
Roper Industries, Inc. Employees' Retirement Savings 003 Plan (the "003 Plan")
and/or the Roper Industries, Inc. Employees' Retirement Savings 004 Plan (the
"004 Plan"), both of which are defined contribution plans under which
participating employees may contribute on a pre-tax basis pursuant to a
qualified cash or deferred arrangement within the meaning of Section 401(k) of
the Internal Revenue Code of 1986.

     WHEREAS, the limitations of Sections 401(a)(17), 401(k)(3), 401(m), 402(g)
and 415 of the Internal Revenue Code of 1986 may, separately or in combination,
limit the amount of pre-tax employee contributions and employer matching
contributions that otherwise could be made under the 003 Plan and the 004 Plan
on behalf of certain participants.

     WHEREAS, effective January 1, 1995, the Primary Sponsor established the
Roper Industries, Inc. Non-Qualified Retirement Plan (the "Plan") for the
benefit of those 003 Plan participants whose benefits under those plans may be
limited by one or more of those Internal Revenue Code limitations described
above for the purpose of providing, to the extent possible on a non-qualified
and unfunded basis, an opportunity for such participants to continue to
accumulate retirement savings as if such persons had been able to continue to
participate in the 003 Plan without regard to such limitations in addition to an
opportunity to accumulate retirement savings separate and apart from
participation in the 003 Plan.

     WHEREAS, effective November 1, 1997, the Primary Sponsor desires to amend
the Plan, among other reasons, to clarify that its provisions extend to eligible
participants under the 004 Plan.

     NOW, THEREFORE, the Primary Sponsor does hereby amend and restate the Plan
in its entirety, effective as of the date first above written, to read as
follows:
<PAGE>

              ROPER INDUSTRIES, INC. NON-QUALIFIED RETIREMENT PLAN

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                           PAGE
                                                                                                           ----
<S>           <C>                                                                                          <C>
SECTION 1     DEFINITIONS................................................................................     3

SECTION 2     ELIGIBILITY................................................................................     5

SECTION 3     CONTRIBUTIONS..............................................................................     5

SECTION 4     CREDITING ACCOUNTS.........................................................................     7

SECTION 5     EMERGENCY WITHDRAWALS......................................................................     7

SECTION 6     DEATH BENEFITS.............................................................................     8

SECTION 7     PAYMENT OF BENEFITS ON RETIREMENT OR DEATH.................................................     8

SECTION 8     PAYMENT OF BENEFITS ON OTHER TERMINATIONS OF EMPLOYMENT....................................     9

SECTION 9     ADMINISTRATION OF THE PLAN.................................................................     9

SECTION 10    CLAIM REVIEW PROCEDURE.....................................................................    11

SECTION 11    LIMITATION OF ASSIGNMENT, PAYMENTS TO LEGALLY INCOMPETENT DISTRIBUTEE AND
              UNCLAIMED PAYMENTS.........................................................................    12

SECTION 12    LIMITATION OF RIGHTS.......................................................................    13

SECTION 13    AMENDMENT TO OR TERMINATION OF THE PLAN....................................................    13

SECTION 14    ADOPTION OF PLAN BY AFFILIATES.............................................................    13

SECTION 15    MISCELLANEOUS..............................................................................    14
</TABLE>

                                      -2-
<PAGE>

                                   SECTION 1
                                  DEFINITIONS
                                  -----------

     Whenever used herein, the masculine pronoun shall be deemed to include the
feminine, and the singular to include the plural, unless the context clearly
indicates otherwise, and the following words and phrases shall, when used
herein, have the meanings set forth below:

     1.1  "Account" means the bookkeeping accounts established and maintained by
           -------
the Plan Administrator to reflect the interest of a Member under the Plan and
shall include the following:

          (a) "Employee Deferral Account" which shall reflect credits to a
               -------------------------
     Member's Account made on his or her behalf pursuant to Section 3.1, as
     adjusted to reflect other credits or charges.

          (b) "Employer Base Account" which shall reflect credits to a Member's
               ---------------------
     Account made on his or her behalf pursuant to Section 3.2 and, if
     applicable Section 3.5, as adjusted to reflect other credits or charges.

          (c) "Employer Matching Account" which shall reflect credits to a
               -------------------------
     Member's Account made on his or her behalf pursuant to Section 3.3 and, if
     applicable, Section 3.5, as adjusted to reflect other credits or charges.

          (d) "Profit Sharing Account" which shall reflect credits to a Member's
               ----------------------
     Account made on his or her behalf pursuant to Section 3.4, as adjusted to
     reflect other credits or charges.

     1.2  "Accrued Benefit" means the balance of a Member's Account.
           ---------------

     1.3  "Affiliate" means (a) any corporation which is a member of the same
           ---------
controlled group of corporations (within the meaning of Code Section 414(b)) as
is a Plan Sponsor and (b) any other trade or business (whether or not
incorporated) under common control (within the meaning of Code Section 414(c))
with a Plan Sponsor.

     1.4 "Annual Compensation" means "Compensation," as that term is defined
          -------------------
under the 003 Plan or 004 Plan, as applicable, for purposes of making
contributions pursuant to a salary deferral election, as the same may be amended
from time to time, but without regard to the limit on compensation that may be
recognized under Code Section 401(a)(17), plus any Deferral Amounts credited to
a Member during the Plan Year.

     1.5 "Beneficiary" means the person or persons designated by the Member (and
          -----------
in the absence of any such designation, the Member's estate) to receive the
Member's Account in the

                                      -3-
<PAGE>

event of the Member's death.

     1.6 "Board of Directors" means the Board of Directors of the Primary
          ------------------
Sponsor.

     1.7 "Code" means the Internal Revenue Code of 1986, as amended.
          ----

     1.8  "Deferral Amounts" means amounts credited to the Employee Deferral
           ----------------
Account of a Member at the election of a Member pursuant to Section 3.1.

     1.9  "Disability" means a condition determined to exist pursuant to the
           ----------
definition of the term "Disability" under the 003 Plan or 004 Plan, as
applicable.

     1.10 "Disabled Employee" means each former Eligible Employee who terminates
           -----------------
active employment as a result of a Disability.

     1.11 "Eligible Employee" means a member of a select group of management or
           -----------------
highly compensated employees of a Plan Sponsor who is designated as being
eligible to participate in the Plan pursuant to Section 2.

     1.12 "Employee" means any person who is classified by a Plan Sponsor or an
           --------
Affiliate as a common law employee.

     1.13 "Member" means any Eligible Employee or former Eligible Employee who
           ------
has become a participant in the Plan, for so long as his or her benefits
hereunder have not been paid out.

     1.14 "Plan Administrator" means the organization or person designated by
           ------------------
the Primary Sponsor to administer the Plan or, in the absence of any such
designation, the Primary Sponsor.

     1.15 "Plan Sponsor" means individually the Primary Sponsor and any other
           ------------
Affiliate or other entity which has adopted the Plan pursuant to Section 14.

     1.16 "Plan Year" means each fiscal year beginning November 1 through
           ---------
October 31, 1997, the short period from November 1, 1997 through December 31,
1997 and, thereafter, the calendar year.

     1.17 "Retirement Date" means the date on which the Member retires on or
           ---------------
after (a) attaining age 65, or (b) becoming subject to a Disability.

     1.18 "Valuation Date" means each business day or any other day which the
           --------------
Plan Administrator declares to be a Valuation Date.

     1.19 "Withdrawal Circumstance" means a circumstance permitting a hardship
           -----------------------
withdrawal under the 003 Plan or 004 Plan, as applicable.  The Plan
Administrator retains the sole

                                      -4-
<PAGE>

discretion to approve or deny any request for an in-service withdrawal based
upon a Withdrawal Circumstance. In no event, however, will a request be approved
to the extent a Withdrawal Circumstance is or may be relieved (a) through
reimbursement or compensation by insurance or otherwise, (b) by liquidation of
the Member's assets, to the extent the liquidation of such assets would not
itself cause severe financial hardship; or (c) by cessation of active
participation in the Plan.

                                   SECTION 2
                                  ELIGIBILITY
                                  -----------

     2.1 Eligibility. An Eligible Employee shall become a Member after (a) being
         -----------
designated for membership in the Plan by appropriate action of the Director of
Human Resources of the Primary Sponsor; and (b) completing an enrollment form
prescribed by the Plan Administrator in which the Eligible Employee elects to
participate in the Plan. A Member's election to participate shall be effective
until the Member notifies the Plan Administrator, in such manner and form as the
Plan Administrator shall from time to time prescribe, that the Member wishes to
suspend active participation. A Member who suspends active participation under
the Plan may resume active participation in the Plan by delivering a new
enrollment form to the Plan Administrator. A Member may modify his or her
election or, if applicable, resume active participation in the Plan effective as
of the beginning of the payroll period immediately following the date such
enrollment is processed and made effective pursuant to the Plan Administrator's
normal administrative procedures then in effect.

     2.2 Effective Date of Participation. Eligible Employees shall be eligible
         -------------------------------
to participate in the Plan as of the date the Eligible Employee is designated
for participation in the Plan pursuant to Section 2.1.

     2.3 Cessation of Participation.  A Member who ceases to be an Eligible
         --------------------------
Employee will no longer be eligible to make further deferrals under the Plan
pursuant to Section 3, but shall continue to be subject to all other terms of
the Plan so long as he or she remains a Member of the Plan.

     2.4 Coordination with 401(k) Arrangements.  In the event the Member
         -------------------------------------
participates in a plan of a Plan Sponsor or Affiliate intended to qualify under
Code Section 401(a) and containing a tax-qualified cash or deferred arrangement
qualified under Code Section 401(k), the Member shall be suspended from
continued participation under this Plan to the extent required by such other
plan as a result of a hardship withdrawal made by such Member under such other
plan.

                                   SECTION 3
                                 CONTRIBUTIONS
                                 -------------

     3.1 Deferral Amounts. (a) Each Plan Year a Member who is an Eligible
         ----------------
     Employee for all or any portion of the Plan Year and who has an effective
     enrollment form

                                      -5-
<PAGE>

     on file with the Plan Administrator shall be deemed to have elected to
     defer under the Plan that portion of the Annual Compensation otherwise
     payable to him or her for the Plan Year which the Member has elected to
     defer under the 003 Plan or 004 Plan, as applicable, but which can not be
     deferred under that plan because of one or more of the following
     limitations: (i) the provisions relating to the annual limit on salary
     deferrals set forth in Code Section 402(g); (ii) the provisions relating to
     the limit on includable compensation as set forth in Code Section
     401(a)(17); (iii) the provisions relating to the non-discrimination testing
     limitations under Code Sections 401(k)(3) or 401(m); or (iv) the provisions
     relating to the limit on "annual additions," within the meaning of Code
     Section 415.

         (b) Each Plan Year a Member (i) who is an Eligible Employee for all
     or any portion of the Plan Year; (ii) who has an effective enrollment form
     on file with the Plan Administrator; and (iii) (A) who has in effect an
     election to make the maximum elective deferrals under the 003 Plan or 004
     Plan, as applicable, for which matching contributions may be made under
     that plan or (B) who has not met the eligibility requirements to
     participate in the 003 Plan or 004 Plan, as applicable, may also elect to
     defer under the Plan a separate percentage of Annual Compensation otherwise
     payable to him or her for the Plan Year; provided such election may not
     apply to more than fifteen percent (15%) of the Member's Annual
     Compensation.

     3.2 Base Contributions. Each Plan Sponsor which also sponsors the 003 Plan
         ------------------
proposes to credit on behalf of each Member employed by that Plan Sponsor (other
than Members to whose Employer Base Accounts amounts are not to be credited) for
the Plan Year an amount equal to three percent (3%) of the Member's Annual
Compensation in excess of the dollar limitation then in effect pursuant to Code
Section 401(a)(17).

     3.3 Matching Contributions. Each Plan Sponsor proposes to credit on behalf
         ----------------------
of each Member employed by that Plan Sponsor (other than Members to whose
Employer Matching Accounts amounts are not to be credited) for allocation to
that Member's Employer Matching Account an amount equal to (X) reduced by (Y)
where:

         (a) (X) an amount determined by applying the matching contribution
     provisions of the 003 Plan or 004 Plan, as adopted by the Plan Sponsor,
     (but without regard to any direct or indirect limitation described under
     Section 3.1(a)) to the aggregate elective deferrals made on behalf of the
     Member under the 003 Plan or 004 Plan, as applicable, and the Deferral
     Amounts made on behalf of the Member under the Plan for the applicable
     period; and

         (b) (Y) is the matching contribution actually credited to the Member
     for the same period under the 003 Plan or 004 Plan, as applicable.

     3.4 Profit Sharing Contributions. Each Plan Sponsor which also sponsors the
         ----------------------------
003 Plan and makes a discretionary profit sharing contribution under that plan
for the Plan Year proposes to

                                      -6-
<PAGE>

credit on behalf of each Member employed by that Plan Sponsor (other than
Members to whose Profit Sharing Accounts amounts are not to be credited) for
allocation to that Member' Profit Sharing Account an amount equal to (X) reduced
by (Y) where:

           (a) (X) the amount which would have been credited to the Member under
     the 003 Plan determined by applying the discretionary profit sharing
     contribution provisions of the 003 Plan (but without regard to any
     applicable limitation described under Section 3.1(a)) for the period; and

           (b) (Y) is the discretionary profit sharing contribution actually
     credited to the Member for the same period under the 003 Plan.

     3.5  Contributions on Behalf of Disabled Employees.  In lieu of any
          ---------------------------------------------
contributions pursuant to Section 3.2 and 3.3 for a Plan Year, each Plan Sponsor
which also sponsors the 003 Plan proposes to credit on behalf of each Member who
is a Disabled Employee of that Plan Sponsor (other than Disabled Employees who
are Normal Retirement Age or older or who recover and are no longer a Disabled
Employee) contributions equal to the amounts (but without regard to any direct
or indirect limitation described under Section 3.1(a)) described under Sections
4.1 and 4.3 of the 003 Plan for allocation to that Member's appropriate
subaccounts.

                                   SECTION 4
                               CREDITING ACCOUNTS
                               ------------------

     4.1  As soon as reasonably practicable following the date of withholding by
the Plan Sponsor, Deferral Amounts previously elected by a Member shall be
credited to the Member's Employee Deferral Account.

     4.2  No later than as of the last day of each Plan Year or at such earlier
times as the Plan Administrator shall determine, the amounts to be credited for
the applicable period pursuant to Sections 3.2, and 3.3 (and, to the extent
applicable, Sections 3.4 and 3.5) on behalf of a Member shall be credited to the
Member's Employer Base Account; Employer Matching Account or Profit Sharing
Account, as applicable.

     4.3  As of each Valuation Date, each Member's Account (other than any
Member who has received a distribution of his or her Accrued Benefit prior to
that Valuation Date) shall be credited with rate(s) of return in a manner
prescribed by the Plan Administrator.

                                   SECTION 5
                             EMERGENCY WITHDRAWALS
                             ---------------------

     5.1  The Plan Administrator may pay all or a portion of a Member's Account
prior to the time such amounts otherwise become payable in accordance with the
provisions of the Plan; provided, however, that the Member demonstrates that he
or she has a Withdrawal Circumstance.

                                      -7-
<PAGE>

     5.2  Distributions in the event of a Withdrawal Circumstance shall be made
to a Member only in accordance with such rules, policies, procedures,
restrictions, and conditions as the Plan Administrator may from time to time
adopt. Any determination of the amount to be distributed on account of a
Withdrawal Circumstance shall be made by the Plan Administrator in accordance
with rules applied in a uniform and nondiscriminatory manner. A payment under
this Section shall be made in a lump sum in cash to the Member and shall be
charged against the Member's Account as of the Valuation Date coinciding with or
immediately preceding the date of the payment.

     5.3  Notwithstanding the foregoing, a Member who receives a payment of all
or any portion of his or her Account pursuant to this Section 5.3 shall be
suspended from making deferrals under Section 3 for a period of twelve (12)
months immediately following the date the Member receives a payment under this
Section 5.3.

                                   SECTION 6
                                DEATH BENEFITS
                                --------------

     6.1  Upon the death of a Member who dies prior to the date on which the
Member is entitled to the commencement of payments of his or her Account, the
Member's Beneficiary shall be entitled to the full value of the Member's
Account.

     6.2  Upon the death of a Member who is no longer an Employee, but prior to
the complete payment of his or her Account, the Member's Beneficiary shall be
entitled to receive the entire unpaid vested portion of the Member's Account in
a lump sum in cash.

     6.3  If, subsequent to the death of a Member, the Member's Beneficiary dies
while entitled to receive benefits under the Plan, the successor Beneficiary, if
any, or, if none, the Member's estate shall generally be entitled to receive
benefits under the Plan.

     6.4  Except as otherwise provided in this Section 6, any benefit payable
under this Section 6 shall be paid in accordance with and subject to the
provisions of Section 7 after receipt by the Plan Administrator of notice of the
death of the Member.

                                   SECTION 7
                   PAYMENT OF BENEFITS ON RETIREMENT OR DEATH
                   ------------------------------------------

     7.1  Upon the retirement or death of a Member, the Accrued Benefit of the
Member shall be determined as of the Valuation Date coinciding with or
immediately preceding the Member's Retirement Date or death, increased by
Deferral Amounts and matching contributions credited pursuant to Section 3.3 (or
Section 3.5, as applicable) and adjusted for interest credited pursuant to
Section 4.3 through the Valuation Date immediately preceding the date the
Accrued Benefit is paid.  Payment of the Member's Accrued Benefit shall commence
as soon as practicable after the Retirement Date or death of the Member.

                                      -8-
<PAGE>

     7.2  The method of payment of the Accrued Benefit of a Member shall be
determined by the Primary Sponsor and may be in any form then authorized by the
003 Plan or 004 Plan, as applicable.  If the Accrued Benefit is not paid in a
lump sum, the Member's Account will continue to be credited with a rate or rates
of return in accordance with Section 4.3 until the Account is fully distributed.

                                   SECTION 8
            PAYMENT OF BENEFITS ON OTHER TERMINATIONS OF EMPLOYMENT
            -------------------------------------------------------

     8.1  A Member shall be considered to have terminated employment with the
Plan Sponsor or any Affiliate on the date determined by the Plan Administrator.
Transfer of a Member from one Plan Sponsor to another Plan Sponsor shall not be
deemed for any purpose under the Plan to be a termination of employment by the
Member.

     8.2  In the event of the termination of employment of a Member for reasons
other than those specified in Sections 6 and 7 above, the Accrued Benefit of the
Member shall be determined as of the Valuation Date coinciding with or
immediately preceding the date of the termination of employment and shall be
increased by any Deferral Amounts credited to the Employee Deferral Account of
the Member since that Valuation Date.  While no further amounts credited
pursuant to any other provision of Section 3 shall be made to the Member's
Account after that Valuation Date, the Member's Account shall be adjusted for a
rate or rates of return credited pursuant to Section 4.3 through the Valuation
Date immediately preceding the date the Accrued Benefit is paid.

     8.3  A Member shall be entitled to payment of his or her Accrued Benefit in
cash in a lump sum.  Payment shall commence as soon as practicable following the
Member's termination of employment.

                                   SECTION 9
                           ADMINISTRATION OF THE PLAN
                           --------------------------

     9.1  Operation of the Plan Administrator.  The Primary Sponsor shall be the
          -----------------------------------
Plan Administrator, unless it appoints another Plan Administrator.  If an
organization is appointed to serve as the Plan Administrator, then the Plan
Administrator may designate in writing a person who may act on behalf of the
Plan Administrator.  The Primary Sponsor shall have the right to remove the Plan
Administrator at any time by notice in writing.  The Plan Administrator may
resign at any time by written notice or resignation to the Primary Sponsor.
Upon removal or resignation, or in the event of the dissolution of the Plan
Administrator, the Primary Sponsor shall appoint a successor.

                                      -9-
<PAGE>

     9.2  Duties of the Plan Administrator.
          --------------------------------

          (a) The Plan Administrator shall perform any act which the Plan
     authorizes or requires of the Plan Administrator by action taken in
     compliance with the Plan and may designate in writing other persons to
     carry out its duties under the Plan. The Plan Administrator may employ
     persons to render advice with regard to any of the Plan Administrator's
     duties.

          (b) The Plan Administrator shall from time to time establish rules,
     not contrary to the provisions of the Plan, for the administration of the
     Plan and the transaction of its business. All elections and designations
     under the Plan by a Member or Beneficiary shall be made on forms prescribed
     by the Plan Administrator. The Plan Administrator shall have discretionary
     authority to construe the terms of the Plan and shall determine all
     questions arising in the administration, interpretation and application of
     the Plan, including, but not limited to, those concerning eligibility for
     benefits and it shall not act so as to discriminate in favor of any person.
     All determinations of the Plan Administrator shall be conclusive and
     binding on all persons, subject to the provisions of the Plan and subject
     to applicable law.

          (c) The Plan Administrator shall furnish Members and Beneficiaries
     with all disclosures now or hereafter required by the Employee Retirement
     Income Security Act of 1974, as amended ("ERISA"). The Plan Administrator
     shall file, as required, the various reports and disclosures concerning the
     Plan and its operations as required by ERISA and by the Code, and shall be
     solely responsible for establishing and maintaining all records of the
     Plan.

          (d) The statement of specific duties for a Plan Administrator in this
     Section is not in derogation of any other duties which a Plan Administrator
     has under the provisions of the Plan or under applicable law.

          (e) Each Plan Sponsor shall indemnify and hold harmless each person
     constituting the Plan Administrator from and against any and all claims and
     expenses (including, without limitation, attorney's fees and related costs)
     arising in connection with the performance by the person of his or her
     duties in that capacity, other than any of the foregoing arising in
     connection with the willful neglect or willful misconduct of the person
     acting.

     9.3  Action by the Primary Sponsor or a Plan Sponsor. Any action to be
          -----------------------------------------------
taken by the Primary Sponsor or a Plan Sponsor shall be taken by resolution or
written direction duly adopted by its board of directors or appropriate
governing body, as the case may be; provided, however, that by such resolution
or written direction, the board of directors or appropriate governing body, as
the case may be, may delegate to any officer or other appropriate person of a
Plan Sponsor the authority to take any such actions as may be specified in such
resolution or written direction, other

                                      -10-
<PAGE>

than the power to amend, modify or terminate the Plan or to determine the basis
of any payment obligations of any Plan Sponsor.

                                   SECTION 10
                             CLAIM REVIEW PROCEDURE
                             ----------------------

     10.1 In the event that a Member or Beneficiary is denied a claim for
benefits under a Plan, the Plan Administrator shall provide to such claimant
written notice of the denial which shall set forth:

          (a) the specific reasons for the denial;

          (b) specific references to the pertinent provisions of the Plan on
     which the denial is based;

          (c) a description of any additional material or information necessary
     for the claimant to perfect the claim and an explanation of why such
     material or information is necessary; and

          (d) an explanation of the Plan's claim review procedure.

     10.2 After receiving written notice of the denial of a claim, a claimant
may:

          (a) request a full and fair review of such denial by written
     application to the Plan Administrator;

          (b) review pertinent documents; and

          (c) submit issues and comments in writing to the Plan Administrator.

     10.3 If the claimant wishes such a review of the decision denying his or
her claim to benefits under the Plan, he or she must submit such written
applications to the Plan Administrator within sixty (60) days after receiving
written notice of the denial.

     10.4 Upon receiving such written application for review, the Plan
Administrator may schedule a hearing for purposes of reviewing the claimant's
claim, which hearing shall take place not more than thirty (30) days from the
date on which the Plan Administrator received such written application for
review.

     10.5 At least ten (10) days prior to the scheduled hearing, the claimant
shall receive written notice of the date, time, and place of such scheduled
hearing.  The claimant may request that the hearing be rescheduled, for his or
her convenience, on another reasonable date or at another reasonable time or
place.

                                      -11-
<PAGE>

     10.6 No later than sixty (60) days following the receipt of the written
application for review, the Plan Administrator shall submit its decision on the
review in writing to the claimant involved; provided, however, a decision on the
written application for review may be extended, in the event special
circumstances such as the need to hold a hearing require an extension of time,
to a day no later than one hundred twenty (120) days after the date of receipt
of the written application for review.  The decision shall include specific
reasons for the decision and specific references to the pertinent provisions of
the Plan on which the decision is based.

                                   SECTION 11
                 LIMITATION OF ASSIGNMENT, PAYMENTS TO LEGALLY
                 INCOMPETENT DISTRIBUTEE AND UNCLAIMED PAYMENTS
                 ----------------------------------------------

     11.1 No benefit which shall be payable under the Plan to any person shall
be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge, and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge the same shall be
void; and no such benefit shall in any manner be liable for, or subject to, the
debts, contracts, liabilities, engagements or torts of any person, nor shall it
be subject to attachment or legal process for, or against, such person, and the
same shall not be recognized under the Plan, except to such extent as may be
required by law.

     11.2 If any person who shall be entitled to any benefit under the Plan
shall become bankrupt or shall attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge such benefit under the Plan, then the payment
of any such benefit in the event a Member or Beneficiary is entitled to payment
shall, in the discretion of the Plan Administrator, cease and terminate and in
that event the Plan Administrator shall apply the same for the benefit of such
person, his or her spouse, children, other dependents or any of them in such
manner and in such proportion as the Plan Administrator shall determine.

     11.3 Whenever any benefit which shall be payable under the Plan is to be
paid to or for the benefit of any person who is then a minor or determined to be
incompetent by qualified medical advice, the Plan Administrator need not require
the appointment of a guardian or custodian, but shall be authorized to cause the
same to be paid over to the person having custody of such minor or incompetent,
or to cause the same to be paid to such minor or incompetent without the
intervention of a guardian or custodian, or to cause the same to be paid to a
legal guardian or custodian of such minor or incompetent if one has been
appointed or to cause the same to be used for the benefit of such minor or
incompetent.

     11.4 Whenever the Plan Administrator cannot, within a reasonable time after
payments are to commence, locate any person to or for the benefit of whom such
payments are to be made, after making a reasonable effort to locate such person,
the Plan Administrator may direct that the payment and any remaining payments
otherwise due to the Member be cancelled on the records of the Plan, except that
in the event the Member later notifies the Plan Administrator of his or her

                                      -12-
<PAGE>

whereabouts and requests the payments due to him or her under the Plan, the Plan
Sponsor shall re-credit the Member's account and provide for payment of the re-
credited amount to the Member as soon as administratively feasible.

                                   SECTION 12
                              LIMITATION OF RIGHTS
                              --------------------

     Membership in the Plan shall not give any Employee any right or claim
except to the extent that such right is specifically fixed under the terms of
the Plan. The adoption of the Plan by any Plan Sponsor shall not be construed to
give any Employee a right to be continued in the employ of a Plan Sponsor or as
interfering with the right of a Plan Sponsor to terminate the employment of any
Employee at any time.

                                   SECTION 13
                    AMENDMENT TO OR TERMINATION OF THE PLAN
                    ---------------------------------------

     13.1 The Primary Sponsor reserves the right at any time to modify or amend
or terminate the Plan. No such modifications or amendments shall have the effect
of retroactively changing or depriving Members or Beneficiaries of benefits
already accrued under the Plan. No Plan Sponsor other than the Primary Sponsor
shall have the right to so modify, amend or terminate the Plan. Notwithstanding
the foregoing, each Plan Sponsor may terminate its own participation in the
Plan.

     13.2 Each Plan Sponsor other than the Primary Sponsor shall have the right
to terminate its participation in the Plan by resolution of its board of
directors or other appropriate governing body and notice in writing to the
Primary Sponsor. Any termination by a Plan Sponsor shall not be a termination as
to any other Plan Sponsor.

     13.3 If the Plan is terminated by the Primary Sponsor, it shall terminate
as to all Plan Sponsors.

                                   SECTION 14
                         ADOPTION OF PLAN BY AFFILIATES
                         ------------------------------

     Any corporation or other business entity related to the Primary Sponsor by
function or operation and any Affiliate, if the corporation, business entity or
Affiliate is authorized to do so by written direction adopted by the Board of
Directors, may adopt the Plan by action of the board of directors or other
appropriate governing body of such corporation, business entity or Affiliate.
Any adoption shall be evidenced by certified copies of the resolutions of the
foregoing board of directors or governing body indicating the adoption by the
adopting corporation, or business entity or Affiliate.

                                      -13-
<PAGE>

                                   SECTION 15
                                 MISCELLANEOUS
                                 -------------

     15.1  All payments provided under the Plan shall be paid from the general
assets of the applicable Plan Sponsor and no separate fund shall be established
to secure payment.  Notwithstanding the foregoing, the Primary Sponsor may
establish a grantor trust to assist it and other Plan Sponsors in funding Plan
obligations, and any payments made to a Member or Beneficiary from such trust
shall relieve the Plan Sponsor from any further obligations under the Plan only
to the extent of such payment.  Nothing herein shall constitute the creation of
a trust or other fiduciary relationship between a Plan Sponsor and any other
person.

     15.2  Each Plan Sponsor shall withhold from any benefits payable under the
Plan all federal, state and local income taxes or other taxes required to be
withheld pursuant to applicable law.

     15.3  To the extent not preempted by applicable federal law, the Plan shall
be governed by and construed in accordance with the laws of the State of
Georgia.

     IN WITNESS WHEREOF, the Primary Sponsor has caused this indenture to be
executed as of the date first above written.

                              ROPER INDUSTRIES, INC.

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

                              Title:
                                    --------------------
ATTEST:

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

Title:
      --------------

  [CORPORATE SEAL]

                                      -14-

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