Document:

AMENDED AND RESTATED
                             CREDIT AGREEMENT

                               BY AND AMONG

                        UNIFAB INTERNATIONAL, INC.
                              (AS BORROWER),

                 BANK ONE, LOUISIANA, NATIONAL ASSOCIATION
                                (AS AGENT)

                                    AND

                         THE LENDERS PARTY HERETO

                    __________________________________

                       DATED AS OF OCTOBER 19, 2000

                    __________________________________

                             TABLE OF CONTENTS

                                                                   PAGE NO.

ARTICLE I.   DEFINITIONS

1.1  Definitions of Certain Terms Used Herein 1

ARTICLE II. THE CREDITS

2.1  Term Loans 13
2.2  Revolving Loans 13
2.3  Letters of Credit 13
2.4  Types of Advances 14
2.5  Commitment  Fee;  Reductions in Aggregate Revolving Loan Commitment
     14
2.6  Minimum Amount of Each Advance 15
2.7  Prepayments 15
2.8  Method of Selecting  Types  and Eurodollar Interest Periods for New
     Advances 16
2.9  Conversion and Continuation of Outstanding Advances 16
2.10 Changes in Interest Rate, etc. 17
2.11 Rates Applicable After Default 17
2.12 Method of Payment 18
2.13 Noteless Agreement; Evidence of Indebtedness 18
2.14 Telephonic Notices 19
2.15 Interest Payment Dates; Interest and Fee Basis 19
2.16 Notification of Advances, Interest Rates, Prepayments and
         Commitment Reductions 19
2.17 Lending Installations 19
2.18 Non-Receipt of Funds by the Agent 19
2.19 Collateral 20

ARTICLE III.  YIELD PROTECTION; TAXES

3.1  Yield Protection 21
3.2  Changes in Capital Adequacy Regulations 21
3.3  Availability of Types of Advances 22
3.4  Funding Indemnification 22
3.5  Taxes 22
3.6  Lender Statements; Survival of Indemnity 24

ARTICLE IV.  CONDITIONS PRECEDENT

4.1  Initial Advance 25
4.2  Each Advance 27

ARTICLE V.  REPRESENTATIONS AND WARRANTIES

5.1  Existence and Standing 28
5.2  Authorization and Validity 28
5.3  No Conflict; Government Consent 28
5.4  Financial Statements 29
5.5  Material Adverse Change 29
5.6  Taxes 29
5.7  Litigation and Contingent Obligations 29
5.8  Subsidiaries 29
5.9  ERISA 29
5.10 Accuracy of Information 30
5.11 Regulation U 30
5.12 Material Agreements 30
5.13 Compliance With Laws 30
5.14 Ownership of Properties 30
5.15 Plan Assets; Prohibited Transactions 30
5.16 Environmental Matters 30
5.17 Investment Company Act 31
5.18 Public Utility Holding Company Act 31
5.19 Solvency 31
5.20 Regulation O  31

ARTICLE VI.  COVENANTS

6.1  Financial Reporting 33
6.2  Use of Proceeds 35
6.3  Notice of Default 35
6.4  Conduct of Business 35
6.5  Taxes 35
6.6  Insurance 35
6.7  Compliance with Laws 35
6.8  Maintenance of Properties 36
6.9  Inspection 36
6.10 Dividends 36
6.11 Indebtedness 36
6.12 Merger 37
6.13 Sale of Assets 37
6.14 Investments and Acquisitions 38
6.15 Liens 38
6.16 Year 2000 39
6.17 Transactions with Affiliates 39
6.18 Appraisals 40
6.19 Financial Covenants 40

ARTICLE VII. DEFAULTS 42

ARTICLE VIII. ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

8.1  Acceleration 44
8.2  Amendments 44
8.3  Preservation of Rights 45

ARTICLE IX.  GENERAL PROVISIONS

9.1  Survival of Representations 46
9.2  Governmental Regulation 46
9.3  Headings 46
9.4  Entire Agreement 46
9.5  Several Obligations; Benefits of this Agreement 46
9.6  Expenses; Indemnification 46
9.7  Numbers of Documents 47
9.8  Accounting 47
9.9  Severability of Provisions 47
9.10 Nonliability of Lenders 47
9.11 Confidentiality 48
9.12 Nonreliance 48
9.13 Disclosure 48

ARTICLE X.  THE AGENT

10.1 Appointment; Nature of Relationship 49
10.2 Powers 49
10.3 General Immunity 49
10.4 No Responsibility for Loans, Recitals, etc. 49
10.5 Action on Instructions of Lenders 50
10.6 Employment of Agents and Counsel 50
10.7 Reliance on Documents; Counsel 50
10.8 Agent's Reimbursement and Indemnification 50
10.9 Notice of Default 51
10.10Rights as a Lender 51
10.11Lender Credit Decision 51
10.12Successor Agent 52
10.13Agent's Fee 52
10.14Delegation to Affiliates 52
10.15Execution of Collateral Documents 52
10.16Collateral Releases 53

ARTICLE XI.  SETOFF; RATABLE PAYMENTS

11.1 Setoff 54
11.2 Ratable Payments 54

ARTICLE XII.  BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

12.1 Successors and Assigns 55
12.2 Participations 55
12.3 Assignments 56
12.4 Dissemination of Information 57
12.5 Tax Treatment 57

ARTICLE XIII.  NOTICES

13.1 Notices 58
13.2 Change of Address 58

ARTICLE XIV. COUNTERPARTS      59

ARTICLE XV.  CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF
                           JURY TRIAL

15.1 Choice of Law 60
15.2 Consent to Jurisdiction 60
15.3 Waiver of Jury Trial 60

SCHEDULES

1    Commitment Amounts of the Lenders 63
2    Pricing Schedule 64
3    List of Borrower's Subsidiaries 66
4    Eligible Accounts and Eligible Fixed Assets......................67
5    Responses to Phase I Study 71

EXHIBITS

A    Compliance Certificate 72
B    Assignment Agreement  76
C    Borrowing Base Certificate 85

                          AMENDED AND RESTATED
                            CREDIT AGREEMENT

     This  Agreement, dated as of October  19,  2000,  is  among  UNIFAB
INTERNATIONAL,   INC.,   as  Borrower,  BANK  ONE,  LOUISIANA,  NATIONAL
ASSOCIATION, as Agent, and  the  Lenders  party  hereto,  who  agree  as
follows:

                                RECITALS

     A.   The  Borrower,  the  Agent  and  the  Lenders  have heretofore
executed a Credit Agreement dated as of November 30, 1999  (as  amended,
the "Original Credit Agreement").

     B.   The  Borrower  proposes to repay the Terms Loans in full  with
the proceeds of an issuance  of  stock,  and in connection therewith the
Borrower has requested that the Agent and  the Lenders modify certain of
the  financial covenants and other provisions  of  the  Original  Credit
Agreement.

     C.   In  view of the foregoing, the Borrower, the Agent and Lenders
wish to amend and  restate  the Original Credit Agreement to provide for
the foregoing.

                               AGREEMENT

     NOW, THEREFORE, the Borrower,  the  Agent  and  the  Lenders hereby
amend and restate the Original Credit Agreement to read as follows:

                               ARTICLE I

                              DEFINITIONS

     1.1. DEFINITIONS  OF  CERTAIN TERMS USED HEREIN.  As used  in  this
Agreement, the following terms shall have the following meanings:

     "Acquisition" means any  transaction,  or  any  series  of  related
transactions,  consummated  on  or after the date of this Agreement,  by
which the Borrower or any of its  Subsidiaries  (i)  acquires  any going
business  or  all  or  substantially  all  of  the  assets  of any firm,
corporation  or limited liability company, or division thereof,  whether
through purchase  of  assets,  merger  or  otherwise or (ii) directly or
indirectly  acquires  (in  one  transaction  or  as   the   most  recent
transaction in a series of transactions) at least a majority  (in number
of votes) of the securities of a corporation which have ordinary  voting
power  for  the election of directors (other than securities having such
power only by  reason  of  the happening of a contingency) or a majority
(by percentage or voting power)  of the outstanding ownership  interests
of a partnership or limited liability company.

     "Advance" means a borrowing hereunder,  (i)  made by the Lenders on
the same Borrowing Date, or (ii) converted or continued  by  the Lenders
on  the  same date of conversion or continuation, consisting, in  either
case, of the aggregate amount of the several Loans of the same Type and,
in the case  of  Eurodollar  Loans,  for  the  same  Eurodollar Interest
Period.

     "Affiliate"  of  any  Person  means  any other Person  directly  or
indirectly controlling, controlled by or under  common control with such
Person.   A  Person  shall be deemed to control another  Person  if  the
controlling Person owns  10%  or  more of any class of voting securities
(or other ownership interests) of the  controlled  Person  or possesses,
directly  or  indirectly, the power to direct or cause the direction  of
the management  or  policies  of  the controlled Person, whether through
ownership of stock, by contract or otherwise.

     "Agent" means Bank One, Louisiana,  National  Association,  in  its
capacity  as  contractual  representative  of  the  Lenders  pursuant to
Article  X,  and  not  in  its individual capacity as a Lender, and  any
successor Agent appointed pursuant to Article X.

     "Aggregate Revolving Loan  Commitment"  means  the aggregate of the
Revolving Loan Commitments of all the Lenders, as reduced  from  time to
time pursuant to the terms hereof.

     "Agreement"  means  this credit agreement, as it may be amended  or
modified and in effect from time to time.

     "Agreement  Accounting   Principles"   means   generally   accepted
accounting  principles  as  in  effect  from time to time, applied in  a
manner consistent with that used in preparing  the  financial statements
referred to in Section 5.4.

     "Alternate Base Rate" means, for any day, a rate  of  interest  per
annum equal to the higher of (i) the Corporate Base Rate for such day or
(ii)  the Federal Funds Effective Rate for such day plus 1/2% per annum.
"Corporate Base Rate" means a rate per annum equal to the corporate base
rate of interest announced from time to time by Bank One, N.A. (which is
not necessarily  the lowest rate charged to any customer), changing when
and as said corporate base  rate changes. "Federal Funds Effective Rate"
means, for any day,  an  interest  rate  per annum equal to the weighted
average  of  the  rates  on overnight Federal  funds  transactions  with
members of the Federal Reserve  System arranged by Federal funds brokers
on such day, as published for such  day  (or,  if  such  day  is  not  a
Business Day, for the immediately preceding Business Day) by the Federal
Reserve  Bank  of New York, or, if such rate is not so published for any
day  which  is  a  Business  Day,  the  average  of  the  quotations  at
approximately 10:00 a.m. (Chicago time) on such day on such transactions
received by the Agent  from  three  Federal  funds brokers of recognized
standing selected by the Agent in its sole discretion.

     "Applicable Fee Rate" means, at any time,  the  percentage rate per
annum  at which  commitment fees are accruing on the unused  portion  of
the Aggregate Revolving Loan Commitment at such time as set forth in the
Pricing Schedule.

     "Applicable  Letter  of  Credit  Fee Rate" means, at any time, with
respect to Letters of Credit, the percentage  rate  per  annum  which is
applicable at such time as set forth in the Pricing Schedule.

     "Applicable Margin" means, with respect to Advances of any Type  at
any time, the percentage rate per annum which is applicable at such time
with  respect  to  Advances  of  such  Type  as set forth in the Pricing
Schedule.

     "Arranger"  means  Banc  One  Capital  Markets,  Inc.,  a  Delaware
corporation, and its successors.

     "Article"  means  an  article  of  this  Agreement  unless  another
document is specifically referenced.

     "Assignment Agreement" means any assignment  agreement  in the form
of EXHIBIT B, executed and delivered pursuant to Section 12.3.

     "Authorized Officer" means any of the Chairman, President, or Chief
Financial Officer of the Borrower, acting singly.

     "Borrower" means UNIFAB  International,    Inc.,     a    Louisiana
corporation, and its successors and assigns.

     "Borrowing  Base"  means  at  any  time  an  amount equal to 80% of
Eligible  Accounts PLUS the lesser of 50% of Eligible  Fixed  Assets  or
$15,000,000, less any Reserves.

     "Borrowing  Base  Certificate"  means  a  certificate  executed and
delivered  by the Borrower to the Agent from time to time setting  forth
the Borrowing  Base  as  of a certain date, substantially in the form of
EXHIBIT C.

     "Borrowing  Date"  means  a  date  on  which  an  Advance  is  made
hereunder.

     "Borrowing Notice" is defined in Section 2.8.

     "Business Day" means  (i) with respect to any borrowing, payment or
rate selection of Eurodollar  Advances,  a day (other than a Saturday or
Sunday) on which banks generally are open in New Orleans for the conduct
of substantially all of their commercial lending  activities,  interbank
wire transfers can be made on the Fedwire system and dealings in  United
States  dollars  are  carried on in the London interbank market and (ii)
for all other purposes, a day (other than a Saturday or Sunday) on which
banks generally are open in New Orleans for the conduct of substantially
all of their commercial  lending activities and interbank wire transfers
can be made on the Fedwire system.

     "Capital Expenditures" means, without duplication, any expenditures
for any purchase or other  acquisition  of  any  asset  which  would  be
classified  as  a fixed or capital asset on a consolidated balance sheet
of  the  Borrower and  its  Subsidiaries  prepared  in  accordance  with
Agreement  Accounting  Principles  excluding  (i)  the  cost  of  assets
acquired  with  Capitalized  Lease  Obligations,  (ii)  expenditures  of
insurance proceeds to rebuild or replace any asset after a casualty loss
and (iii) leasehold improvement expenditures for which the Borrower or a
Subsidiary is reimbursed promptly by the lessor.

     "Capitalized Lease" of a Person means any lease of Property by such
Person  as  lessee which would be capitalized on a balance sheet of such
Person prepared in accordance with Agreement Accounting Principles.

     "Capitalized  Lease  Expenses" means, with reference to any period,
the lease payments of the Borrower  and its Subsidiaries with respect to
Capitalized Leases calculated on a consolidated basis for such period.

     "Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown
as a liability on a balance sheet of  such Person prepared in accordance
with Agreement Accounting Principles.

     "Change" is defined in Section 3.2.

     "Change in Control" means the acquisition  by any Person, or two or
more  Persons  acting  in concert, of beneficial ownership  (within  the
meaning of Rule 13d-3 of  the  Securities  and Exchange Commission under
the Securities Exchange Act of 1934) of 20%  or  more of the outstanding
shares of voting stock of the Borrower.

     "Closing Date" means the date upon which the  conditions  precedent
to the initial Advance have been satisfied or waived by the Lenders  and
the initial Revolving Loans are made hereunder.

     "Code"  means  the  Internal  Revenue  Code  of  1986,  as amended,
reformed or otherwise modified from time to time.

     "Collateral"  shall mean all of the types of property described  in
Section 2.19, or as otherwise described in any Collateral Documents.

     "Collateral Documents"  means, collectively, all guaranties and all
security agreements, financing  statements,  mortgages,  deeds of trust,
assignments  creating  and  perfecting  security  interests,  liens,  or
encumbrances in the assets of the Borrower and its Subsidiaries in favor
of  the  Agent,  for  the  benefit  of the Lenders to secure the Secured
Obligations.

     "Commitment" means, for each Lender,  collectively,  such  Lender's
Revolving Loan Commitment.

     "Compliance  Certificate"  means the certificate required from  the
Borrower from time to time in the form of EXHIBIT A, signed by the chief
financial officer of the Borrower.

     "Conversion/Continuation Notice" is defined in Section 2.9.

     "Default" means an event described in Article VII.

     "Domestic  Subsidiaries"  means   Subsidiaries   of   the  Borrower
incorporated  or  organized  under  the laws of any state of the  United
States.

     "EBITDA"  means  Net  Income PLUS,  to  the  extent  deducted  from
revenues in determining Net  Income,  (i) Interest Expense, (ii) expense
for  taxes  paid  or provided for (accrued),  (iii)  depreciation,  (iv)
amortization, (v) other  non-cash charges, and (vi) extraordinary losses
incurred other than in the  ordinary  course  of business, MINUS, to the
extent included in Net Income, extraordinary gains  realized  other than
in the ordinary course of business, all calculated for the Borrower  and
its Subsidiaries on a consolidated basis.

     "Eligible Accounts" is defined on SCHEDULE 4.

     "Eligible Fixed Assets" is defined on SCHEDULE 4.

     "Environmental  Laws"  means  any and all federal, state, local and
foreign  statutes,  laws, judicial decisions,  regulations,  ordinances,
rules,  judgments,  orders,   decrees,   plans,   injunctions,  permits,
concessions,   grants,  franchises,  licenses,  agreements   and   other
governmental  restrictions   relating  to  (i)  the  protection  of  the
environment, (ii) the effect of  the  environment on human health, (iii)
emissions, discharges or releases of pollutants, contaminants, hazardous
substances or wastes into surface water,  ground  water or land, or (iv)
the  manufacture,  processing,  distribution,  use, treatment,  storage,
disposal,  transport or handling of pollutants, contaminants,  hazardous
substances or wastes or the clean-up or other remediation thereof.

     "ERISA"  means the Employee Retirement Income Security Act of 1974,
as amended from  time  to  time,  and  any  rule  or  regulation  issued
thereunder.

     "Eurodollar  Advance"  means  an Advance which, except as otherwise
provided in Section 2.11, bears interest  at  the  applicable Eurodollar
Rate.

     "Eurodollar Base Rate" means, with respect to a  Eurodollar Advance
for  the  relevant  Eurodollar  Interest Period, the applicable  British
Bankers'  Association Interest Settlement  Rate  for  deposits  in  U.S.
dollars appearing  on Reuters Screen FRBD as of 11:00 a.m. (London time)
two Business Days prior  to  the  first  day of such Eurodollar Interest
Period, and having a maturity equal to such  Eurodollar Interest Period,
PROVIDED that, (i) if Reuters Screen FRBD is not  available to the Agent
for  any reason, the applicable Eurodollar Base Rate  for  the  relevant
Eurodollar  Interest  Period  shall  instead  be  the applicable British
Bankers'  Association  Interest  Settlement  Rate for deposits  in  U.S.
dollars  as  reported  by  any  other  generally  recognized   financial
information  service  as  of 11:00 a.m. (London time) two Business  Days
prior to the first day of such  Eurodollar Interest Period, and having a
maturity equal to such Eurodollar  Interest  Period, and (ii) if no such
British Bankers' Association Interest Settlement  Rate  is  available to
the  Agent,  the  applicable  Eurodollar  Base  Rate  for  the  relevant
Eurodollar  Interest Period shall instead be the rate determined by  the
Agent to be the  rate  at  which  Bank One, N.A. or one of its Affiliate
banks offers to place deposits in U.S. dollars with first-class banks in
the London interbank market at approximately  11:00  a.m.  (London time)
two  Business  Days  prior to the first day of such Eurodollar  Interest
Period, in the approximate  amount  of  the relevant Eurodollar Loan and
having a maturity equal to such Eurodollar Interest Period.

     "Eurodollar Interest Period" means,  with  respect  to a Eurodollar
Advance, a period of one, two or three months commencing on  a  Business
Day   selected  by  the  Borrower  pursuant  to  this  Agreement.   Such
Eurodollar  Interest  Period  shall  end  on  the  day which corresponds
numerically to such date one, two, or three months thereafter, PROVIDED,
HOWEVER, that if there is no such numerically corresponding  day in such
next, second or third succeeding month, such Eurodollar Interest  Period
shall  end  on  the  last  Business  Day  of  such next, second or third
succeeding month.  If an Eurodollar Interest Period  would otherwise end
on  a day which is not a Business Day, such Eurodollar  Interest  Period
shall  end  on the next succeeding Business Day, PROVIDED, HOWEVER, that
if said next succeeding Business Day falls in a new calendar month, such
Eurodollar Interest  Period  shall  end  on  the  immediately  preceding
Business Day.

     "Eurodollar  Loan" means a Loan which, except as otherwise provided
in Section 2.11, bears interest at the applicable Eurodollar Rate.

     "Eurodollar Rate"  means,  with respect to a Eurodollar Advance for
the relevant Eurodollar Interest  Period, the sum of (i) the quotient of
(a)  the Eurodollar Base Rate applicable  to  such  Eurodollar  Interest
Period, divided by (b) one minus the Reserve Requirement (expressed as a
decimal)  applicable  to  such Eurodollar Interest Period, plus (ii) the
Applicable Margin.

     "Excluded Taxes" means,  in  the  case of each Lender or applicable
Lending Installation and the Agent, taxes  imposed  on  its  overall net
income, and franchise taxes imposed on it, by (i) the jurisdiction under
the laws of which such Lender or the Agent is incorporated or  organized
or (ii) the jurisdiction in which the Agent's or such Lender's principal
executive  office  or  such Lender's applicable Lending Installation  is
located.

     "Exhibit" refers to  an  exhibit  to this Agreement, unless another
document is specifically referenced.

     "Financial Letter of Credit" means  a Letter of Credit delivered to
a Person to secure the performance by the  Borrower or any Subsidiary of
its purely financial obligations.

     "Floating Rate" means, for any day, a rate  per  annum equal to (i)
the Alternate Base Rate for such day plus (ii) the Applicable Margin, in
each case changing when and as the Alternate Base Rate changes.

     "Floating Rate Advance" means an Advance which, except as otherwise
provided in Section 2.11, bears interest at the Floating Rate.

     "Floating  Rate  Loan"  means  a  Loan  which, except as  otherwise
provided in Section 2.11, bears interest at the Floating Rate.

     "Funded Indebtedness" means at any time the aggregate dollar amount
of Indebtedness of the Borrower and its Subsidiaries,  calculated  on  a
consolidated basis, which has actually been funded and is outstanding at
such time, whether or not such amount is due or payable at such time.

     "Income  Taxes"  means,  with reference to any period, all federal,
state and local income taxes paid  or  provided  for  (accrued)  by  the
Borrower  and  its  Subsidiaries, calculated on a consolidated basis for
such period.

     "Indebtedness" of  a Person means such Person's (i) obligations for
borrowed  money, (ii) obligations  representing  the  deferred  purchase
price of Property  or  services  (other than accounts payable arising in
the ordinary course of such Person's business payable on terms customary
in the trade), (iii) obligations,  whether  or  not  assumed, secured by
Liens or payable out of the proceeds or production from  Property now or
hereafter owned or acquired by such Person, (iv) obligations  which  are
evidenced   by   notes,   bonds,   debentures,   acceptances,  or  other
instruments, (v) obligations to purchase securities  or  other  Property
arising  out  of  or  in  connection  with  the  sale  of  the  same  or
substantially  similar  securities  or  Property, (vi) Capitalized Lease
Obligations,  (vii) any other obligation for  borrowed  money  or  other
financial accommodation  which  in  accordance with Agreement Accounting
Principles would be shown as a liability  on  the  consolidated  balance
sheet  of such Person; (viii) all reimbursement obligations relating  to
letters  of  credit,  bankers'  acceptances and similar instruments (but
excluding  performance bonds), (ix)  all  liabilities  with  respect  to
unfunded vested  benefits  under  any  Plan, (x) all endorsements (other
than for collection or deposit in the ordinary  course of business), and
(xi) all obligations under guaranties for any obligations  described  in
clauses (i) through (x) hereof.

     "Interest  Expense"  means,  with  reference  to  any  period,  the
interest  expense  of  the Borrower and its Subsidiaries calculated on a
consolidated basis for such period.

     "Investment"  of a Person  means  any  loan,  advance  (other  than
commission, travel and  similar  advances to officers and employees made
in the ordinary course of business),  extension  of  credit  (other than
accounts receivable arising in the ordinary course of business  on terms
customary  in  the  trade)  or  contribution  of capital by such Person;
stocks, bonds, mutual funds, partnership interests, notes, debentures or
other  securities  owned  by  such  Person;  any  deposit  accounts  and
certificate  of  deposit  owned  by  such Person; and structured  notes,
derivative  financial  instruments  and  other  similar  instruments  or
contracts owned by  such Person.

     "Lenders" means the lending institutions  listed  on  the signature
pages of this Agreement and their respective successors and assigns.

     "Lending  Installation"  means,  with  respect to a Lender  or  the
Agent, the office, branch, subsidiary or affiliate of such Lender or the
Agent listed on the signature pages hereof or on a Schedule or otherwise
selected by such Lender or the Agent pursuant to Section 2.17.

     "Letter of Credit" of a Person means a letter  of credit or similar
instrument  which  is  issued  by a Lender upon the application  of  the
Borrower or any of its Subsidiaries as set forth in Section 2.3.

     "Lien"  means  any lien (statutory  or  other),  mortgage,  pledge,
hypothecation,   assignment,   deposit   arrangement,   encumbrance   or
preference,  priority   or  other  security  agreement  or  preferential
arrangement  of  any  kind  or  nature  whatsoever  (including,  without
limitation, the interest of a  vendor  or  lessor  under any conditional
sale, Capitalized Lease or other title retention agreement).

     "Loan"  means,  with respect to a Lender, such Lender's  loan  made
pursuant to Article II  (or any conversion or continuation thereof), and
collectively all Revolving  Loans,  whether  made  or  continued  as  or
converted to Floating Rate Loans or Eurodollar Loans.

     "Loan Documents" means this Agreement, any Notes issued pursuant to
Section 2.13 and the Collateral Documents.

     "Material  Adverse  Effect"  means a material adverse effect on (i)
the business, Property, condition (financial  or  otherwise), results of
operations, or prospects of the Borrower and its Subsidiaries taken as a
whole, (ii) the ability of the Borrower to perform its obligations under
the Loan Documents or (iii) the validity or enforceability of any of the
Loan  Documents or the rights or remedies of the Agent  or  the  Lenders
thereunder.

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

     "Net  Income"  means,  with reference to any period, the net income
(or  loss)  of  the  Borrower  and  its  Subsidiaries  calculated  on  a
consolidated basis for such period.

     "Non-U.S. Lender" is defined in Section 3.5(iv).

     "Note" means any Revolving Note.

     "Obligations"  means  all  Indebtedness  of  the  Borrower  to  the
Lenders, from time to time, including  without  limitation,  all  unpaid
principal  of  and  accrued  and  unpaid  interest  on  the  Loans,  all
commercial and standby letters of credit and bankers acceptances, issued
by   any   Lender,  all  accrued  and  unpaid  fees  and  all  expenses,
reimbursements, indemnities and other obligations of the Borrower to the
Lenders or to  any  Lender,  the  Agent or any indemnified party arising
under the Loan Documents.

     "Operating Lease" of a Person  means  any  lease of Property (other
than a Capitalized Lease) by such Person as lessee which has an original
term (including any required renewals and any renewals  effective at the
option of the lessor) of one year or more.

     "Other Taxes" is defined in Section 3.5(ii).

     "Participants" is defined in Section 12.2.1.

     "Payment Date" means the last day of each month.

     "PBGC"  means  the  Pension  Benefit Guaranty Corporation,  or  any
successor thereto.

     "Performance Letter of Credit"  means  a Letter of Credit delivered
to a Person to secure the performance by the  Borrower or any Subsidiary
of its obligations in connection with bidding on or performing under any
contract to manufacture, assemble, sell or deliver equipment.

     "Permitted Liens" is defined in Section 6.15.

     "Person"  means  any  natural  person,  corporation,   firm,  joint
venture,    partnership,   limited   liability   company,   association,
enterprise, trust  or other entity or organization, or any government or
political subdivision  or  any  agency,  department  or  instrumentality
thereof.

     "Plan" means an employee pension benefit plan which is  covered  by
Title  IV  of  ERISA  or  subject to the minimum funding standards under
Section 412 of the Code as to which the Borrower may have any liability.

     "Pricing Schedule" means SCHEDULE 2.

     "Pro Rata Share" means, with respect to any Lender at any time, the
percentage obtained by dividing  (i)  the sum of such Lender's Revolving
Loan Commitment at such time (in each case,  as  adjusted  from  time to
time  in  accordance with the provisions of this Agreement) by (ii)  the
Aggregate Revolving Loan Commitment at such time.

     "Property"  of  a  Person means any and all property, whether real,
personal, tangible, intangible,  or  mixed,  of  such  Person,  or other
assets owned, leased or operated by such Person.

     "Purchasers" is defined in Section 12.3.1.

     "Rate  Management Transaction" means any transaction (including  an
agreement with  respect  thereto) now existing or hereafter entered into
between the Borrower and any Lender or Affiliate thereof which is a rate
swap, basis swap, forward  rate  transaction,  commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond
option,   interest  rate  option,  foreign  exchange  transaction,   cap
transaction, floor transaction, collar transaction, forward transaction,
currency  swap   transaction,   cross-currency  rate  swap  transaction,
currency option or any other similar  transaction  (including any option
with  respect to any of these transactions) or any combination  thereof,
whether  linked  to  one  or  more  interest  rates, foreign currencies,
commodity prices, equity prices or other financial measures.

     "Rate  Management  Obligations"  of  a Person  means  any  and  all
obligations of such Person, whether absolute or contingent and howsoever
and whensoever created, arising, evidenced  or  acquired  (including all
renewals,   extensions   and  modifications  thereof  and  substitutions
therefor), under (i) any and  all Rate Management Transactions, and (ii)
any  and  all  cancellations,  buy  backs,  reversals,  terminations  or
assignments of any Rate Management Transactions.

     "Regulation D" means Regulation  D of the Board of Governors of the
Federal Reserve System as from time to  time in effect and any successor
thereto or other regulation or official interpretation  of said Board of
Governors relating to reserve requirements applicable to member banks of
the Federal Reserve System.

     "Regulation U" means Regulation U of the Board of Governors  of the
Federal  Reserve System as from time to time in effect and any successor
or  other  regulation  or  official  interpretation  of  said  Board  of
Governors relating  to  the extension of credit by banks for the purpose
of purchasing or carrying  margin  stocks  applicable to member banks of
the Federal Reserve System.

     "Rental  Expense"  means,  with  reference   to  any  period,   the
aggregate  fixed  amounts payable by the Borrower and  its  Subsidiaries
under all Operating  Leases, calculated on a consolidated basis for such
period.

     "Reportable Event"  means  a reportable event as defined in Section
4043  of  ERISA and the regulations  issued  under  such  section,  with
respect to  a Plan, excluding, however, such events as to which the PBGC
has by regulation  waived  the  requirement  of Section 4043(a) of ERISA
that  it  be notified within 30 days of the occurrence  of  such  event,
PROVIDED, HOWEVER,  that  a failure to meet the minimum funding standard
of Section 412 of the Code  and  of  Section  302  of  ERISA  shall be a
Reportable  Event regardless of the issuance of any such waiver  of  the
notice requirement in accordance with either Section 4043(a) of ERISA or
Section 412(d) of the Code.

     "Reports" is defined in Section 9.6.

     "Required  Lenders"  means  Lenders  whose  Pro Rata Shares, in the
aggregate,  are  66  2/3 % or greater, but in any event,  at  least  two
Lenders.

     "Reserve Requirement" means, with respect to an Eurodollar Interest
Period, the maximum  aggregate reserve requirement (including all basic,
supplemental, marginal  and  other  reserves)  which  is  imposed  under
Regulation D on Eurocurrency liabilities.

     "Reserves"  means, with respect to the Borrowing Base such reserves
against Eligible Accounts  which the Agent may, in its reasonable credit
judgment, establish from time  to time.  Without limiting the generality
of the foregoing, Reserves established  to insure the payment of accrued
Interest Expense or Indebtedness shall be  deemed  to  be  a  reasonable
exercise of the Agent's credit judgment.

     "Revolving Loan" is defined in Section 2.2.1.

     "Revolving  Loan Commitment" means, for each Lender, the obligation
of such Lender to  make  Revolving  Loans  not  exceeding the amount set
forth on Schedule 1 for such Lender or as set forth  in  any  Assignment
Agreement relating to any assignment that has become effective  pursuant
to  Section  12.3,  as  such  amount  may  be modified from time to time
pursuant to the terms hereof.

     "Revolving Loan Termination Date" means  November  30,  2002 or any
earlier  date  upon  which  the  Aggregate Revolving Loan Commitment  is
reduced to zero or otherwise terminated pursuant to the terms of Section
2.5.

     "Revolving  Note" means any promissory  note  evidencing  Revolving
Loans issued at the request of a Lender pursuant to Section 2.13.

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

     "Schedule" refers  to a specific schedule to this Agreement, unless
another document is specifically referenced.

     "Section"  means  a numbered  section  of  this  Agreement,  unless
another document is specifically referenced.

     "Secured Obligations"  means, collectively, (i) the Obligations and
(ii) all Rate Management Obligations owing to one or more Lenders.

     "Subsidiary"  means (i) any  corporation,  more  than  50%  of  the
outstanding securities  having  ordinary  voting power of which shall at
the time be owned or controlled, directly or indirectly, by the Borrower
or by one or more of its Subsidiaries or by the Borrower and one or more
of its Subsidiaries, or (ii) any partnership, limited liability company,
association, joint venture or similar business  organization,  more than
50%  of  the  ownership  interests having ordinary voting power of which
shall at the time be so owned or controlled.

     "Substantial Portion"  means,  with  respect to the Property of the
Borrower and its Subsidiaries, Property which  (i)  represents more than
10% of the consolidated assets of the Borrower and its  Subsidiaries  as
would  be shown in the consolidated financial statements of the Borrower
and its  Subsidiaries  as  at  the  beginning of the twelve-month period
ending with the month in which such determination  is  made,  or (ii) is
responsible  for more than 10% of the consolidated net sales or  of  the
consolidated  net  income  of  the  Borrower  and  its  Subsidiaries  as
reflected in the financial statements referred to in clause (i) above.

     "Tangible  Net  Worth" means at any time total shareholders' equity
of the Borrower and its  Subsidiaries calculated on a consolidated basis
as of such time, LESS (i)  the  amount  of  any treasury stock, (ii) any
dividends paid, and (iii) the amount of any intangible  assets  (such as
patents, trademarks, copyrights or goodwill).

     "Taxes"  means any and all present or future taxes, duties, levies,
imposts,  deductions,   charges   or   withholdings,  and  any  and  all
liabilities with respect to the foregoing, but EXCLUDING Excluded Taxes.

     "Transferee" is defined in Section 12.4.

     "Type" means, with respect to any Advance, its nature as a Floating
Rate Advance or a Eurodollar Advance.

     "Unmatured Default" means an event  which but for the lapse of time
or the giving of notice, or both, would constitute a Default.

     "Wholly-Owned Subsidiary" of a Person  means (i) any Subsidiary all
of the outstanding voting securities of which shall at the time be owned
or controlled, directly or indirectly, by such  Person  or  one  or more
Wholly-Owned  Subsidiaries of such Person, or by such Person and one  or
more Wholly-Owned  Subsidiaries of such Person, or (ii) any partnership,
limited  liability  company,   association,  joint  venture  or  similar
business organization 100% of the  ownership  interests  having ordinary
voting power of which shall at the time be so owned or controlled.

     The foregoing definitions shall be equally applicable  to  both the
singular and plural forms of the defined terms.

                               ARTICLE II

                              THE CREDITS

     2.1. TERM LOANS. [INTENTIONALLY OMITTED]

     2.2. REVOLVING LOANS.

     2.2.1.  MAKING THE REVOLVING LOANS.  From and including the Closing
Date  and  prior  to  the  Revolving  Loan Termination Date, each Lender
severally  agrees,  on  the  terms  and conditions  set  forth  in  this
Agreement, to make revolving loans to  the Borrower from time to time in
amounts not to exceed in the aggregate at  any  one time outstanding the
LESSER  of  (i)  the  amount  of  its  Revolving  Loan Commitment  (each
individually  a  "Revolving  Loan"  and,  collectively,  the  "Revolving
Loans"), MINUS 100% of the principal amount  of  all  Letters of Credit,
or (ii) the Borrowing Base, MINUS 100% of the principal  amount  of  all
Financial  Letters  of  Credit  and  25%  of the principal amount of all
Performance Letters of Credit.  Each Advance  under  this  Section 2.2.1
shall  consist  of  Revolving  Loans  made  by  each  Lender ratably  in
proportion  to  such  Lender's  respective  Pro  Rata  Share,  it  being
understood  that no Lender shall be responsible for any failure  by  any
other Lender  to  perform  its  obligation  to  make  any Revolving Loan
hereunder  nor  shall  the  Revolving Loan Commitment of any  Lender  be
increased or decreased as a result  of any such failure.  Subject to the
terms of this Agreement, the Borrower  may  borrow,  repay  and reborrow
Revolving  Loans  at  any  time  prior to the Revolving Loan Termination
Date.  The Revolving Loan Commitments of the Lenders shall expire on the
Revolving Loan Termination Date.

     2.2.2.  REPAYMENT OF THE REVOLVING  LOANS.   On  the Revolving Loan
Termination  Date,  the  Borrower  shall  repay in full the  outstanding
principal balance of the Revolving Loans.

     2.3  LETTERS OF CREDIT.

     2.3.1  ISSUANCE  OF  LETTERS OF CREDIT.   From  and  including  the
Closing Date, the Agent shall  issue  one  or  more  standby  Letters of
Credit  for  the  account  of  the  Borrower or any of its Subsidiaries,
pursuant to the Agent's standard form of application for standby letters
of credit.  The aggregate face amount  of  all  outstanding  Letters  of
Credit  (i) shall constitute a portion of the Revolving Loan Commitments
(reducing  the  Revolving Loan Commitments available for Revolving Loans
on a dollar-for-dollar basis and (ii) shall not exceed $10,000,000.  The
expiry date of all  Letters  of  Credit  shall  be  not  later than five
Business Days prior to the Revolving Loan Termination Date.

     2.3.2  RISK  PARTICIPATION.   Immediately  upon the issuance  of  a
Letter  of  Credit by the Agent, each Lender shall  be  deemed  to  have
automatically,  unconditionally  and irrevocably (except as provided for
in Section 10.8) purchased from the  Agent  an  undivided  interest  and
participation  in  the  Letter  of  Credit,  the  obligations in respect
thereof, and the liability of the Agent, equal to the face amount of the
Letter of Credit multiplied by such Lender's Pro Rata Share.

     2.3.3 LETTER OF CREDIT FEES.  (a) The Borrower  agrees  to  pay the
Agent a fronting fee equal to 0.125% per annum on the face amount of the
Letter  of Credit, payable quarterly in arrears on the last day of  each
calendar  quarter,  for  the term of the Letter of Credit, together with
the Agent's customary letter  of  credit  issuance  and processing fees.
The fronting fee and customary letter of credit issuance  and processing
fees  shall  be retained by the Agent and shall not be shared  with  the
other Lenders;

          (b)  In  addition,  the  Borrower  agrees to pay the Agent the
following fees: (i) a fee equal to the Financial  Letter  of  Credit Fee
Rate  (on  a  per  annum  basis)  shown  on the Pricing Schedule for all
standby letters of credit issued to support the financial obligations of
the Borrower or Subsidiary for whose account  the  letter  of credit was
issued;  and  (ii)  a fee equal to the Performance Letter of Credit  Fee
Rate (on a per annum  basis)  shown  on  the  Pricing  Schedule  for all
standby  letters  of  credit  issued  to support performance obligations
(including bid bonds, performance bonds, milestone payments, guaranties,
warranties and fabrication performance  obligations)  of the Borrower or
Subsidiary  for  whose  account  the  Letter of Credit was issued.   The
foregoing Letter of Credit fees shall be  based  on the principal amount
of  the  Letters  of  Credit  (as  reduced  from time to  time)  payable
quarterly in arrears on the last day of each  calendar  quarter, for the
term  of the Letter of Credit and shall be shared by the Agent  and  the
Lenders on the basis of each Lender's Pro Rata Share.

     2.3.4 GUARANTY OF SUBSIDIARIES.  The Borrower hereby absolutely and
unconditionally  guarantees  the  prompt  and  punctual  payment  of all
Indebtedness  of  all Subsidiaries to the Agent and Lenders arising from
the issuance of any  Letters  of  Credit  for the account of one or more
Subsidiaries.

     2.4. TYPES OF ADVANCES.  The Advances  must be either Floating Rate
Advances or Eurodollar Advances, or a combination  thereof,  selected by
the Borrower in accordance with Sections 2.8 and 2.9.

     2.5. COMMITMENT   FEE;   REDUCTIONS  IN  AGGREGATE  REVOLVING  LOAN
COMMITMENT.  (a) The Borrower agrees  to  pay  to  the  Agent,  for  the
account  of the Pro Rate Share of each Lender, a commitment fee at a per
annum rate  equal to the Applicable Fee Rate on the daily unused portion
of the aggregate  Revolving  Loan Commitment from the date hereof to and
including  the Revolving Loan Termination  Date,  payable  quarterly  in
arrears on last  day  of  each  calendar  quarter  hereafter  and on the
Revolving  Loan  Termination  Date.   For  the  purposes hereof, "unused
portion" shall mean the aggregate Revolving Loan  Commitment,  MINUS the
principal  amount  outstanding  on  the  Revolving  Loan, MINUS the face
amount of all outstanding Letters of Credit.

     (b)  The  Borrower  may permanently reduce the Aggregate  Revolving
Loan Commitment in whole,  or  in  part  ratably  among  the  Lenders in
integral  multiples  of  $1,000,000,  upon  at least five Business Days'
written notice to the Agent, which notice shall  specify  the  amount of
any  such reduction, PROVIDED, HOWEVER, that the amount of the Aggregate
Revolving  Loan  Commitment  may  not  be  reduced  below  the aggregate
principal  amount  of  the  outstanding  Revolving  Loans.   All accrued
commitment   fees  shall  be  payable  on  the  effective  date  of  any
termination of  the  obligations  of the Lenders to make Revolving Loans
hereunder.

     2.6. MINIMUM AMOUNT OF EACH ADVANCE.  Each Eurodollar Advance shall
be in the minimum amount of $1,000,000  (and in multiples of $100,000 if
in  excess thereof), and each Floating Rate  Advance  shall  be  in  the
minimum  amount of $200,000 (and in multiples of $100,000,  if in excess
thereof),  PROVIDED,  HOWEVER,  that any Floating Rate Advance may be in
the amount of the unused Aggregate Revolving Loan Commitment.

     2.7. PREPAYMENTS.

     2.7.1. OPTIONAL PREPAYMENTS.   The  Borrower  may from time to time
pay, without penalty or premium, all outstanding Floating Rate Advances,
or, in a minimum aggregate amount of $200,000 or any  integral  multiple
of  $100,000  in excess thereof, any portion of the outstanding Floating
Rate Advances for  the  full  outstanding  balance  of all Floating Rate
Advances,  if  less  than  such minimum, upon one Business  Days'  prior
notice to the Agent.  The Borrower may from time to time pay, subject to
the payment of any funding indemnification  amounts  required by Section
3.4 but without penalty or premium, all outstanding Eurodollar Advances,
or, in a minimum aggregate amount of $1,000,000 or any integral multiple
of  $100,000  in  excess  thereof, any portion (or the full  outstanding
balance of all Eurodollar Advances,  if  less  than such minimum) of the
outstanding Eurodollar Advances upon five Business Days' prior notice to
the Agent.

     2.7.2.  MANDATORY PREPAYMENTS. (a) EQUITY ISSUANCE.   The  Borrower
shall make prepayments  of  the outstanding amount of the Revolving Loan
(and  the  aggregate Revolving  Loan  Commitment  shall  be  permanently
reduced), upon  one Business Days' prior notice to the Agent, in amounts
equal to 50% of the  net  sale  proceeds (total proceeds less reasonable
costs of issuance) received by the  Borrower  or  any Subsidiary (in the
form of cash or cash equivalents) from the issuance of shares of capital
stock (except in the case where a Subsidiary issues additional shares of
capital stock to the Borrower or to another of its  Subsidiaries).  Such
payment (and reduction in the aggregate Revolving Loan Commitment) shall
be  made  not  later than 15 days after the consummation  of  the  stock
issuance.  If such  payment  constitutes  a  repayment  of  a Eurodollar
Advance  on  a  date  which is not the last day of a Eurodollar Interest
Period, the Borrower shall not be required to pay any amounts that would
otherwise be due under  this  Agreement  (including  without limitation,
Section 3.4) for the repayment of a Eurodollar Rate Advance prior to the
last day of the Eurodollar Interest Period.

     (b)  OVERADVANCE.  If at any time the outstanding principal balance
of  the  Revolving  Loans  (PLUS  100%  of the principal amount  of  all
outstanding  Financial Letters of Credit,  PLUS  25%  of  the  principal
amount of all  outstanding  Performance  Letter  of  Credit) exceeds the
Borrowing Base as shown on the most recently timely submitted  Borrowing
Base Certificate, the Borrower shall, on or before the last day  of  the
month  in  which  the  Borrowing  Base  Certificate is timely delivered,
prepay  the  Revolving  Loans  in  an amount sufficient  to  reduce  the
outstanding principal balance of the  Revolving  Loans (PLUS 100% of the
principal amount of all outstanding Financial Letters  of  Credit,  PLUS
25%  of  the  principal  amount of all outstanding Performance Letter of
Credit)  to  the  Borrowing  Base   as  shown  on  such  Borrowing  Base
Certificate.

     2.8. METHOD OF SELECTING TYPES AND  EURODOLLAR INTEREST PERIODS FOR
NEW ADVANCES.  The Borrower shall select the Type of Advance and, in the
case  of  each  Eurodollar  Advance,  the  Eurodollar   Interest  Period
applicable thereto from time to time.  The Borrower shall give the Agent
irrevocable notice (a "Borrowing Notice") not later than 10:00 a.m. (New
Orleans  time)  at least one Business Day before the Borrowing  Date  of
each Floating Rate  Advance and three Business Days before the Borrowing
Date for each Eurodollar Advance, specifying:

  (i)     the Borrowing  Date,  which  shall  be a Business Day, of such
          Advance,

 (ii)     the aggregate amount of such Advance,

(iii)     the Type of Advance selected, and

 (iv)     in  the  case  of  each  Eurodollar  Advance,  the  Eurodollar
          Interest Period applicable thereto.

Not later than noon (Central time) on each Borrowing  Date,  each Lender
shall make available its Loan or Loans in funds immediately available in
New  Orleans  to the Agent at its address specified pursuant to  Article
XIII.  The Agent  will  make  the  funds  so  received  from the Lenders
available to the Borrower at the Agent's aforesaid address.

     The  Borrower  shall not be entitled to more than three  Eurodollar
Rate tranches and one  Floating  Rate  tranche  at  any  one time on the
Revolving Loan.

     2.9. CONVERSION AND CONTINUATION OF OUTSTANDING ADVANCES.  Floating
Rate Advances shall continue as Floating Rate Advances unless  and until
such  Floating  Rate  Advances  are  converted  into Eurodollar Advances
pursuant  to this Section 2.9 or are repaid.   Each  Eurodollar  Advance
shall continue  as  a  Eurodollar  Advance  until  the  end  of the then
applicable  Eurodollar  Interest  Period  therefor,  at which time  such
Eurodollar Advance shall be automatically converted into a Floating Rate
Advance  unless  (x)  such  Eurodollar  Advance  is  or  was  repaid  in
accordance  with  Section  2.7  or 2.1.2 or (y) the Borrower shall  have
given  the Agent a Conversion/Continuation  Notice  (as  defined  below)
requesting  that,  at  the  end of such Eurodollar Interest Period, such
Eurodollar Advance continue as  a  Eurodollar  Advance  for  the same or
another  Eurodollar  Interest  Period.   Subject to the terms of Section
2.6, the Borrower may elect from time to time to convert all or any part
of  a  Floating Rate Advance into a Eurodollar  Advance.   The  Borrower
shall give  the  Agent  irrevocable  notice  (a "Conversion/Continuation
Notice") of each conversion of a Floating Rate Advance into a Eurodollar
Advance or continuation of a Eurodollar Advance  not  later  than  10:00
a.m.  (New  Orleans time) at least three Business Days prior to the date
of the requested conversion or continuation, specifying:

  (i)     the  requested  date,  which  shall be a Business Day, of such
          conversion or continuation,

 (ii)     the aggregate amount and Type of  the  Advance  which is to be
          converted or continued, and

(iii)     the  amount of such Advance which is to be converted  into  or
          continued  as  a  Eurodollar  Advance  and the duration of the
          Eurodollar Interest Period applicable thereto.

     2.10.  CHANGES IN INTEREST RATE, ETC.  Each Floating  Rate  Advance
shall bear interest  on  the  outstanding  principal amount thereof, for
each  day  from  and  including  the date such Advance  is  made  or  is
automatically converted from a Eurodollar  Advance  into a Floating Rate
Advance pursuant to Section 2.9, to but excluding the date it is paid or
is converted into a Eurodollar Advance pursuant to Section  2.9  hereof,
at a rate per annum equal to the Floating Rate for such day.  Changes in
the  rate  of  interest  on that portion of any Advance maintained as  a
Floating Rate Advance will  take  effect simultaneously with each change
in the Alternate Base Rate.  Each Eurodollar Advance shall bear interest
on the outstanding principal amount thereof from and including the first
day of the Eurodollar Interest Period  applicable  thereto  to  (but not
including)  the  last  day  of  such  Eurodollar  Interest Period at the
interest rate determined by the Agent as applicable  to  such Eurodollar
Advance based upon the Borrower's selections under Sections  2.8 and 2.9
and  otherwise  in  accordance  with  the  terms  hereof.  No Eurodollar
Interest Period with respect to any Revolving Loan  may  end  after  the
Revolving Loan Termination Date.

     2.11.  RATES APPLICABLE AFTER DEFAULT.  Notwithstanding anything to
the contrary  contained in Section 2.8 or 2.9, during the continuance of
a Default or Unmatured  Default  the  Required  Lenders  may,  at  their
option,  by  notice  to the Borrower (which notice may be revoked at the
option of the Required  Lenders notwithstanding any provision of Section
8.2 requiring unanimous consent  of  the  Lenders to changes in interest
rates),  declare  that  no Advance may be made  as,  converted  into  or
continued as a Eurodollar  Advance.  During the continuance of a Default
the Required Lenders may, at  their  option,  by  notice to the Borrower
(which  notice  may  be  revoked  at the option of the Required  Lenders
notwithstanding any provision of Section 8.2 requiring unanimous consent
of the Lenders to changes in interest  rates),  declare  that  (i)  each
Eurodollar  Advance  shall  bear  interest  for  the  remainder  of  the
applicable  Eurodollar  Interest Period at the rate otherwise applicable
to such Eurodollar Interest  Period  plus  3%  per  annum  and (ii) each
Floating Rate Advance shall bear interest at a rate per annum  equal  to
the  Floating  Rate  in  effect  from  time  to  time plus 3% per annum,
PROVIDED that, during the continuance of a Default  under Section 7.6 or
7.7, the interest rates set forth in clauses (i) and (ii) above shall be
applicable to all Advances without any election or action on the part of
the Agent or any Lender.

     2.12.  METHOD OF PAYMENT.  All payments of the Secured  Obligations
hereunder shall  be made, without setoff, deduction, or counterclaim, in
immediately  available  funds  to  the  Agent  at  the  Agent's  address
specified pursuant to Article XIII, or at any other Lending Installation
of the Agent specified  in writing by the Agent to the Borrower, by noon
(Central time) on the date  when due and shall be applied ratably by the
Agent among the Lenders.  Each  payment  delivered  to the Agent for the
account of any Lender shall be delivered promptly by  the  Agent to such
Lender in the same type of funds that the Agent received at  its address
specified  pursuant  to  Article  XIII  or  at  any Lending Installation
specified in a notice received by the Agent from such Lender.  The Agent
is  hereby authorized to charge the account of the  Borrower  maintained
with  the  Agent  for each payment of principal, interest and fees as it
becomes due hereunder.

     2.13. NOTELESS  AGREEMENT;  EVIDENCE  OF  INDEBTEDNESS.   (i)  Each
Lender  shall  maintain in accordance with its usual practice an account
or accounts evidencing  the  indebtedness of the Borrower to such Lender
resulting  from  each Loan made  by  such  Lender  from  time  to  time,
including the amounts of principal and interest payable and paid to such
Lender from time to time hereunder.

     (ii)  The Agent  shall  also  maintain  accounts  in  which it will
record (a) the amount of each Loan made hereunder, the Type  thereof and
the  Eurodollar Interest Period with respect thereto, (b) the amount  of
any principal  or  interest due and payable or to become due and payable
from the Borrower to each Lender hereunder and (c) the amount of any sum
received by the Agent  hereunder  from  the  Borrower  and each Lender's
share thereof.

     (iii)   The entries maintained in the accounts maintained  pursuant
to paragraphs  (i)  and  (ii) above shall be PRIMA FACIE evidence of the
existence and amounts of the  Obligations  therein  recorded;  PROVIDED,
HOWEVER,  that  the failure of the Agent or any Lender to maintain  such
accounts or any error  therein  shall  not  in  any  manner  affect  the
obligation  of  the Borrower to repay the Obligations in accordance with
their terms.

     (iv)  Any Lender  may request that its Revolving Loans be evidenced
by a Note.  In such event,  the  Borrower  shall  execute and deliver to
such Lender a Note for such Loans payable to the order of such Lender in
a form supplied by the Agent and acceptable to such Lender.  Thereafter,
the Loans evidenced by such Note and interest thereon shall at all times
(including after any assignment pursuant to Section 12.3) be represented
by one or more Notes payable to the order of the payee  named therein or
any  assignee  pursuant to Section 12.3, except to the extent  that  any
such  Lender  or  assignee   subsequently  returns  any  such  Note  for
cancellation and requests that  such  Loans  once  again be evidenced as
described in paragraphs (i) and (ii) above.

     2.14.  TELEPHONIC  NOTICES.   The  Borrower hereby  authorizes  the
Lenders and the Agent to extend, convert  or  continue  Advances, effect
selections  of  Types  of  Advances  and  to  transfer  funds  based  on
telephonic notices made by any person or persons the Agent or any Lender
in good faith believes to be acting on behalf of the Borrower, it  being
understood that the foregoing authorization is specifically intended  to
allow  Borrowing Notices and Conversion/Continuation Notices to be given
telephonically.   The Borrower agrees to deliver promptly to the Agent a
written confirmation,  if such confirmation is requested by the Agent or
any Lender, of each telephonic  notice  signed by an Authorized Officer.
If the written confirmation differs in any  material  respect  from  the
action  taken by the Agent and the Lenders, the records of the Agent and
the Lenders shall govern absent manifest error.

     2.15.  INTEREST  PAYMENT  DATES;  INTEREST AND FEE BASIS.  Interest
accrued on each Floating Rate Advance shall  be  payable on each Payment
Date, commencing with the first such date to occur after the date hereof
and at maturity.  Interest accrued on each Eurodollar  Advance  shall be
payable on the last day of its applicable Eurodollar Interest Period, on
any  date  on  which  the  Eurodollar  Advance  is  prepaid,  whether by
acceleration  or  otherwise,  and  at maturity.  Interest and commitment
fees shall be calculated for actual  days  elapsed  on  the  basis  of a
360-day  year.  Interest shall be payable for the day an Advance is made
but not for  the  day  of  any  payment on the amount paid if payment is
received prior to noon (local time)  at  the  place  of payment.  If any
payment of principal of or interest on an Advance shall  become due on a
day which is not a Business Day, such payment shall be made  on the next
succeeding  Business  Day and, in the case of a principal payment,  such
extension of time shall  be included in computing interest in connection
with such payment.

     2.16. NOTIFICATION OF  ADVANCES,  INTEREST  RATES,  PREPAYMENTS AND
COMMITMENT REDUCTIONS.  Promptly after receipt thereof, the  Agent  will
notify  each  Lender  of  the  contents of each Aggregate Revolving Loan
Commitment reduction notice, Borrowing  Notice,  Conversion/Continuation
Notice, and repayment notice received by it hereunder.   The  Agent will
notify  each Lender of the interest rate and Eurodollar Interest  Period
applicable  to  each  Eurodollar  Advance promptly upon determination of
such  interest rate and will give each  Lender  prompt  notice  of  each
change in the Alternate Base Rate.

     2.17. LENDING INSTALLATIONS.  Each Lender may book its Loans at any
Lending  Installation selected by such Lender and may change its Lending
Installation from time to time.  All terms of this Agreement shall apply
to any such  Lending  Installation  and  the  Loans and any Notes issued
hereunder shall be deemed held by each Lender for  the  benefit  of  any
such  Lending  Installation.   Each Lender may, by written notice to the
Agent  and  the  Borrower in accordance  with  Article  XIII,  designate
replacement or additional Lending Installations through which Loans will
be made by it and for whose account Loan payments are to be made.

     2.18. NON-RECEIPT  OF FUNDS BY THE AGENT.  Unless the Borrower or a
Lender, as the case may be,  notifies  the  Agent  prior  to the date on
which it is scheduled to make payment to the Agent of (i) in the case of
a Lender, the proceeds of a Loan or (ii) in the case of the  Borrower, a
payment  of principal, interest or fees to the Agent for the account  of
the Lenders, that it does not intend to make such payment, the Agent may
assume that such payment has been made.  The Agent may, but shall not be
obligated  to, make the amount of such payment available to the intended
recipient in  reliance  upon  such  assumption.   If  such Lender or the
Borrower, as the case may be, has not in fact made such  payment  to the
Agent,  the  recipient  of  such  payment shall, on demand by the Agent,
repay to the Agent the amount so made  available  together with interest
thereon in respect of each day during the period commencing  on the date
such amount was so made available by the Agent until the date  the Agent
recovers  such  amount  at a rate per annum equal to (x) in the case  of
payment by a Lender, the  Federal  Funds Effective Rate for such day for
the first three days and, thereafter,  the  interest  rate applicable to
the  relevant  Loan or (y) in the case of payment by the  Borrower,  the
interest rate applicable to the relevant Loan.

     2.19 COLLATERAL.   The  Secured Obligations shall be secured by the
following:  (i)  first  priority   mortgage,   security   agreement  and
assignment  of  leases  and  rents covering all of the immovable  (real)
property owned, or leased by the  Borrower  or  any Domestic Subsidiary,
including any such property acquired after the Closing  Date; (ii) first
priority   perfected  security  interest  in  all  inventory,  accounts,
equipment, instruments,  chattel  paper,  documents, general intangibles
(and  proceeds  thereof  and  in  the  case of inventory,  all  products
thereof)  of  the  Borrower  or  any Domestic  Subsidiary;  (iii)  first
priority perfected security interest  in all outstanding shares of stock
or partnership or membership interests,  as  the  case  may  be, of each
Subsidiary (except in the case of any direct Subsidiary of the  Borrower
or  any  Domestic  Subsidiary incorporated outside of the United States,
the security interest  shall  extend  to  66%  of the outstanding shares
thereof); and (iv) solidary (joint and several)  guaranties  by  each of
the  Domestic Subsidiaries, including any Domestic Subsidiaries acquired
or created  after  the Closing Date.   The Borrower covenants and agrees
to cause any Domestic  Subsidiary  acquired or created after the Closing
Date to execute a guaranty of the Secured  Obligations  and  to  execute
appropriate  Collateral  Documents concerning the assets of the Domestic
Subsidiary to further secure  the  Obligations, within 60 days after the
acquisition or creation of such Domestic  Subsidiary.   In addition, the
Borrower covenants and agrees to execute a security agreement granting a
first priority security interest in all of the outstanding capital stock
or  membership  or  partnership  interest  of  any  Domestic  Subsidiary
acquired  or  created  after the Closing Date, or 66% of the outstanding
capital  stock or membership  or  partnership  interest  of  any  direct
foreign Subsidiary  acquired  or created after the Closing Date, in each
case to further secure the Secured Obligations, within 60 days after the
acquisition or creation of such Subsidiary.

                              ARTICLE III

                        YIELD PROTECTION; TAXES

     3.1. YIELD  PROTECTION.    If,   on  or  after  the  date  of  this
Agreement,   the   adoption   of   any  law  or  any   governmental   or
quasi-governmental  rule, regulation,  policy,  guideline  or  directive
(whether  or not having  the  force  of  law),  or  any  change  in  the
interpretation  or  administration thereof by any governmental or quasi-
governmental authority,  central  bank or comparable agency charged with
the  interpretation or administration  thereof,  or  compliance  by  any
Lender  or applicable Lending Installation with any request or directive
(whether  or not having the force of law) of any such authority, central
bank or comparable agency:

  (i)     subjects  any Lender or any applicable Lending Installation to
          any Taxes, or changes the basis of taxation of payments (other
          than with respect  to Excluded Taxes) to any Lender in respect
          of its Eurodollar Loans, or

 (ii)     imposes  or  increases   or   deems  applicable  any  reserve,
          assessment,  insurance  charge,  special  deposit  or  similar
          requirement  against  assets  of, deposits  with  or  for  the
          account  of,  or  credit  extended   by,  any  Lender  or  any
          applicable  Lending  Installation  (other  than  reserves  and
          assessments  taken  into account in determining  the  interest
          rate applicable to Eurodollar Advances), or

(iii)     imposes any other condition the result of which is to increase
          the cost to any Lender  or any applicable Lending Installation
          of  making, funding or maintaining  its  Eurodollar  Loans  or
          reduces  any amount receivable by any Lender or any applicable
          Lending Installation  in connection with its Eurodollar Loans,
          or requires any Lender  or any applicable Lending Installation
          to make any payment calculated  by  reference to the amount of
          Eurodollar Loans held or interest received by it, by an amount
          deemed material by such Lender,

and the result of any of the foregoing is to increase  the  cost to such
Lender  or applicable Lending Installation of making or maintaining  its
Eurodollar  Loans or Commitment or to reduce the return received by such
Lender  or applicable  Lending  Installation  in  connection  with  such
Eurodollar  Loans  or Commitment, then, within 15 days of demand by such
Lender, the Borrower  shall  pay  such  Lender such additional amount or
amounts  as  will  compensate such Lender for  such  increased  cost  or
reduction in amount received.

     3.2. CHANGES  IN   CAPITAL   ADEQUACY  REGULATIONS.   If  a  Lender
determines the amount of capital required  or  expected to be maintained
by  such  Lender,  any  Lending  Installation  of  such  Lender  or  any
corporation  controlling  such  Lender is increased as  a  result  of  a
Change, then, within 15 days of demand  by  such  Lender,  the  Borrower
shall  pay  such  Lender  the  amount  necessary  to  compensate for any
shortfall in the rate of return on the portion of such increased capital
which  such  Lender  determines  is attributable to this Agreement,  its
Loans  or  its Commitment to make Loans  hereunder  (after  taking  into
account such  Lender's policies as to capital adequacy).  "Change" means
(i) any change  after  the  date  of  this  Agreement  in the Risk-Based
Capital Guidelines or (ii) any adoption of or change in  any  other law,
governmental  or quasi-governmental rule, regulation, policy, guideline,
interpretation,  or  directive  (whether or not having the force of law)
after the date of this Agreement  which  affects  the  amount of capital
required  or  expected  to  be  maintained by any Lender or any  Lending
Installation  or any corporation controlling  any  Lender.   "Risk-Based
Capital Guidelines"  means  (i)  the  risk-based  capital  guidelines in
effect  in  the  United  States on the date of this Agreement, including
transition  rules,  and  (ii)   the  corresponding  capital  regulations
promulgated  by  regulatory  authorities   outside   the  United  States
implementing  the  July  1988 report of the Basle Committee  on  Banking
Regulation and Supervisory Practices Entitled "International Convergence
of Capital Measurements and  Capital  Standards,"  including  transition
rules, and any amendments to such regulations adopted prior to  the date
of this Agreement.

     3.3. AVAILABILITY  OF  TYPES OF ADVANCES.  If any Lender determines
that  maintenance  of  its  Eurodollar   Loans  at  a  suitable  Lending
Installation  would violate any applicable  law,  rule,  regulation,  or
directive, whether  or  not  having the force of law, or if the Required
Lenders determine that (i) deposits  of  a type and maturity appropriate
to match fund Eurodollar Advances are not available or (ii) the interest
rate applicable to Eurodollar Advances does  not  accurately reflect the
cost of making or maintaining Eurodollar Advances,  then the Agent shall
suspend the availability of Eurodollar Advances and require any affected
Eurodollar Advances to be repaid or converted to Floating Rate Advances,
subject to the payment of any funding indemnification  amounts  required
by Section 3.4.

     3.4. FUNDING  INDEMNIFICATION.   If  any  payment  of  a Eurodollar
Advance  occurs  on  a  date which is not the last day of the applicable
Eurodollar Interest Period,  whether because of acceleration, prepayment
or otherwise (but excluding a mandatory prepayment under Section 2.7.2),
or  a Eurodollar Advance is not  made  on  the  date  specified  by  the
Borrower  for any reason other than default by the Lenders, the Borrower
will indemnify each Lender for any loss or cost incurred by it resulting
therefrom,   including,   without   limitation,  any  loss  or  cost  in
liquidating or employing deposits acquired  to  fund  or  maintain  such
Eurodollar Advance.

     3.5. TAXES.   (i)   All  payments  by  the  Borrower  to or for the
account of any Lender or the Agent hereunder or under any Note  shall be
made free and clear of and without deduction for any and all Taxes.   If
the  Borrower  shall  be  required by law to deduct any Taxes from or in
respect of any sum payable hereunder to any Lender or the Agent, (a) the
sum payable shall be increased  as  necessary  so  that after making all
required deductions (including deductions applicable  to additional sums
payable under this Section 3.5) such Lender or the Agent  (as  the  case
may  be)  receives an amount equal to the sum it would have received had
no  such  deductions  been  made,  (b)  the  Borrower  shall  make  such
deductions,  (c)  the Borrower shall pay the full amount deducted to the
relevant authority  in  accordance  with  applicable  law  and  (d)  the
Borrower  shall  furnish  to  the  Agent  the original copy of a receipt
evidencing payment thereof within 30 days after such payment is made.

     (ii)  In addition, the Borrower hereby agrees to pay any present or
future  stamp  or  documentary taxes and any other  excise  or  property
taxes, charges or similar  levies  which  arise  from  any  payment made
hereunder  or  under any Note or from the execution or delivery  of,  or
otherwise with respect to, this Agreement or any Note ("Other Taxes").

     (iii)  The  Borrower  hereby agrees to indemnify the Agent and each
Lender for the full amount of  Taxes  or Other Taxes (including, without
limitation, any Taxes or Other Taxes imposed  on  amounts  payable under
this  Section  3.5)  paid  by the Agent or such Lender and any liability
(including penalties, interest  and  expenses) arising therefrom or with
respect thereto.  Payments due under this  indemnification shall be made
within  30  days  of  the  date the Agent or such  Lender  makes  demand
therefor pursuant to Section 3.6.

     (iv)  Each Lender that  is  not  incorporated under the laws of the
United States of America or a state thereof  (each  a "Non-U.S. Lender")
agrees that it will, not less than ten Business Days  after  becoming  a
party  to  this  Agreement,  (i) deliver to each of the Borrower and the
Agent  two  duly completed copies  of  United  States  Internal  Revenue
Service Form 1001 or 4224, certifying in either case that such Lender is
entitled to receive  payments  under this Agreement without deduction or
withholding of any United States  federal income taxes, and (ii) deliver
to each of the Borrower and the Agent  a  United States Internal Revenue
Form W-8 or W-9, as the case may be, and certify  that it is entitled to
an exemption from United States backup withholding  tax.   Each Non-U.S.
Lender  further  undertakes to deliver to each of the Borrower  and  the
Agent (x) renewals  or  additional copies of such form (or any successor
form) on or before the date  that such form expires or becomes obsolete,
and (y) after the occurrence of any event requiring a change in the most
recent forms so delivered by it,  such  additional  forms  or amendments
thereto  as  may  be reasonably requested by the Borrower or the  Agent.
All  forms or amendments  described  in  the  preceding  sentence  shall
certify  that  such  Lender  is  entitled to receive payments under this
Agreement without deduction or withholding  of any United States federal
income taxes, UNLESS an event (including without  limitation  any change
in  treaty,  law or regulation) has occurred prior to the date on  which
any such delivery  would  otherwise  be  required which renders all such
forms  inapplicable  or  which  would  prevent  such  Lender  from  duly
completing and delivering any such form  or amendment with respect to it
and  such  Lender advises the Borrower and the  Agent  that  it  is  not
capable of receiving  payments  without  any deduction or withholding of
United States federal income tax.

     (v)  For any period during which a Non-U.S.  Lender  has  failed to
provide  the Borrower with an appropriate form pursuant to clause  (iv),
above (unless  such  failure  is  due  to  a  change  in  treaty, law or
regulation,  or  any  change  in  the  interpretation  or administration
thereof by any governmental authority, occurring subsequent  to the date
on  which a form originally was required to be provided), such  Non-U.S.
Lender  shall  not be entitled to indemnification under this Section 3.5
with respect to  Taxes  imposed  by  the  United  States; PROVIDED that,
should a Non-U.S. Lender which is otherwise exempt  from or subject to a
reduced rate of withholding tax become subject to Taxes  because  of its
failure  to  deliver  a  form  required  under  clause  (iv), above, the
Borrower shall take such steps as such Non-U.S. Lender shall  reasonably
request to assist such Non-U.S. Lender to recover such Taxes.

     (vi)  Any Lender that is entitled to an exemption from or reduction
of withholding tax with respect to payments under this Agreement  or any
Note  pursuant  to  the  law  of any relevant jurisdiction or any treaty
shall deliver to the Borrower (with a copy to the Agent), at the time or
times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable  law as will permit such payments
to be made without withholding or at a reduced rate.

     (vii)   If  the  U.S.  Internal  Revenue   Service   or  any  other
governmental authority of the United States or any other country  or any
political  subdivision  thereof  asserts  a claim that the Agent did not
properly withhold tax from amounts paid to  or  for  the  account of any
Lender  (because  the  appropriate  form  was  not delivered or properly
completed, because such Lender failed to notify the Agent of a change in
circumstances which rendered its exemption from withholding ineffective,
or for any other reason), such Lender shall indemnify  the  Agent  fully
for  all  amounts  paid,  directly  or  indirectly, by the Agent as tax,
withholding therefor, or otherwise, including  penalties  and  interest,
and  including  taxes imposed by any jurisdiction on amounts payable  to
the Agent under this  subsection,  together  with all costs and expenses
related thereto (including attorneys fees and  time charges of attorneys
for  the Agent, which attorneys may be employees  of  the  Agent).   The
obligations of the Lenders under this Section 3.5(vii) shall survive the
payment of the Obligations and termination of this Agreement.

     3.6. LENDER  STATEMENTS;  SURVIVAL  OF  INDEMNITY.  To  the  extent
reasonably  possible,  each  Lender shall designate an alternate Lending
Installation  with  respect  to  its  Eurodollar  Loans  to  reduce  any
liability of the Borrower to such Lender under Sections 3.1, 3.2 and 3.5
or to avoid the unavailability of Eurodollar Advances under Section 3.3,
so long as such designation is not,  in  the  judgment  of  such Lender,
disadvantageous  to  such  Lender.  Each Lender shall deliver a  written
statement of such Lender to  the  Borrower (with a copy to the Agent) as
to the amount due, if any, under Section  3.1,  3.2,  3.4  or 3.5.  Such
written  statement shall set forth in reasonable detail the calculations
upon which  such  Lender  determined  such  amount  and  shall be final,
conclusive and binding on the Borrower in the absence of manifest error.
Determination of amounts payable under such Sections in connection  with
a  Eurodollar  Loan shall be calculated as though each Lender funded its
Eurodollar Loan  through  the  purchase  of  a  deposit  of the type and
maturity corresponding to the deposit used as a reference in determining
the Eurodollar Rate applicable to such Loan, whether in fact that is the
case or not.  Unless otherwise provided herein, the amount  specified in
the  written  statement  of any Lender shall be payable on demand  after
receipt by the Borrower of  such  written statement.  The obligations of
the Borrower under Sections 3.1, 3.2,  3.4 and 3.5 shall survive payment
of the Obligations and termination of this Agreement.

                               ARTICLE IV

                          CONDITIONS PRECEDENT

     4.1. INITIAL ADVANCE.  The Lenders  shall  not  be required to make
the initial Advance hereunder unless the Borrower has  furnished  to the
Agent with sufficient copies for the Lenders (or has otherwise satisfied
the Agent):

  (i)     Copies  of  the  articles of incorporation of the Borrower and
          the  corresponding   organization  documents  of  all  of  its
          Domestic Subsidiaries,  together  with  all  amendments, and a
          certificate   of   good   standing,  each  certified  by   the
          appropriate  governmental  officer   in  its  jurisdiction  of
          incorporation, and copies of the articles  of incorporation of
          any foreign Subsidiary, together with all amendments certified
          by the secretary of said Subsidiary.

 (ii)     Copies, certified by the Secretary or Assistant  Secretary  of
          the Borrower and the authorized person for each Subsidiary, of
          its  Board  of Directors' resolutions or consent of members or
          partners, and  of  resolutions  or  actions  of any other body
          authorizing the execution of the Loan Documents  to  which the
          Borrower or any Subsidiary is a party.

(iii)     An  incumbency  certificate,  executed  by  the  Secretary  or
          Assistant  Secretary  of the Borrower, which shall identify by
          name  and title and bear  the  signatures  of  the  Authorized
          Officers  and any other officers of the Borrower authorized to
          sign the Loan Documents to which the Borrower is a party, upon
          which certificate  the Agent and the Lenders shall be entitled
          to  rely until informed  of  any  change  in  writing  by  the
          Borrower.

 (iv)     A written  opinion of the Borrower's counsel, addressed to the
          Lenders, in form and substance satisfactory to the Agent.

  (v)     This Agreement executed by the Borrower, Agent and Lenders.

 (vi)Any Notes requested by a Lender pursuant to Section 2.13 payable to
          the order of each such requesting Lender.

(vii)The Collateral Documents executed by the Borrower and/or all of its
          Domestic Subsidiaries,  together  with  the stock certificates
          affected by the security interests described in Section 2.19.

          (viii)Lien  searches  covering  the Collateral  evidencing  no
          liens or encumbrances against the Collateral, except for liens
          and encumbrances securing Indebtedness that will be refinanced
          in full with the proceeds of the initial Advances on the Loans
          and for Permitted Liens.

        (ix)A  title insurance policy issued  by  First  American  Title
          Insurance  Company  insuring  all mortgages (as first priority
          mortgages) by the Borrower or any  Domestic Subsidiary bearing
          against all immovable (real) property  owned  by  the Borrower
          and  all  Domestic  Subsidiaries  (including  copies  of   all
          proposed exceptions).

  (x)Letter   from  each  creditor  of  the  Borrower  and  all  of  its
          Subsidiaries   whose  Indebtedness  will  be  refinanced  with
          proceeds of the  initial Advances on the Loan stating the full
          amount due such creditor  as  of the Closing Date and agreeing
          to  execution,  cancellation or termination  of  any  security
          interest in assets  of  the  Borrower  and  its  Subsidiaries,
          promptly upon receipt of payment in full of such Indebtedness.

 (xi)     Written money transfer instructions addressed to the Agent and
          signed  by  an  Authorized  Officer, together with such  other
          related money transfer authorizations  as  the  Agent may have
          reasonably requested.

(xii)     Information satisfactory to the Agent and the Required Lenders
          regarding the Borrower's Year 2000 Program.

          (xiii) For any Collateral that constitutes leasehold interest,
          copies of the leases, together with estoppel certificates from
          each  landlord  in  favor  of  the Agent in form and substance
          satisfactory to the Agent.

            (xiv)  A  Phase  I environmental survey  for  any  immovable
          property owned by the Borrower and any of its Subsidiaries, in
          form and substance satisfactory to the Agent and the Lenders.

 (xv)One  or  more  insurance  certificates   evidencing  the  insurance
          required  to be maintained by the Borrower  and  the  Domestic
          Subsidiaries  pursuant  to  this  Agreement and the Collateral
          Documents.

    (xvi)Audited consolidated financial statements  of  the Borrower and
          its  Subsidiaries  for the fiscal year ended March  31,  2000,
          accompanied  by  the unqualified  opinion  of  the  Borrower's
          independent  certified   public   accountants;   and   interim
          unaudited  consolidated  financial  statements of the Borrower
          and  its Subsidiaries for the fiscal quarter  ended  June  30,
          2000,   certified  by  the  chief  financial  officer  of  the
          Borrower,  all in form and substance satisfactory to the Agent
          and the Lenders.

  (xvii)Projections of  the  Borrower  giving  effect  to  all completed
          acquisitions and the closing of the Loan, together  with  such
          information as the Agent may reasonably require to confirm the
          tax,  legal  and  business  assumptions  made in the financial
          statements  provided  to  the  Agent,  in form  and  substance
          satisfactory to the Agent and the Lenders.

  (xviii)Accounts receivable aging report for the  Borrower  and each of
          its Subsidiaries as of August 31, 2000, in form and  substance
          satisfactory  to  the  Agent  (including  notations indicating
          which accounts receivable are supported by  letters  of credit
          or insurance).

  (xix)   An environmental indemnity agreement executed by the Borrower.

  (xx)    Such  other  documents  as any Lender or its counsel may  have
          reasonably requested.

      (xxi)Payment to the Agent of  an  amendment  fee  of $30,000 to be
shared ratably by the Lenders.

4.2.EACH ADVANCE.  The Lenders shall not be required to make any Advance
unless on the applicable Borrowing Date:

  (i)There exists no Default or Unmatured Default.

 (ii)The representations and warranties contained in Article  V are true
and  correct  as  of  such Borrowing Date except to the extent any  such
representation or warranty  is  stated  to  relate  solely to an earlier
date, in which case such representation or warranty shall have been true
and correct in all material respects on and as of such earlier date.

     (iii)All matters incident to the making of such  Advance  shall  be
          satisfactory to the Lenders and their counsel.

     (iv) No  Material  Adverse  Effect relating to the Borrower and its
          Subsidiaries has occurred  since  the Closing Date or the date
          of  any  financial  statements  of  the   Borrower   submitted
          subsequent to the Closing Date.

     Each  Borrowing  Notice  with  respect  to  each such Advance shall
constitute  a  representation  and  warranty  by the Borrower  that  the
conditions contained in Sections 4.2(i) and (ii) have been satisfied.

                               ARTICLE V

                     REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Lenders that:

     5.1. EXISTENCE AND STANDING.  The Borrower  is  a  corporation  and
each  of  its  Subsidiaries  is  a  corporation,  partnership or limited
liability company duly and properly incorporated or  organized,  as  the
case may be, validly existing and (to the extent such concept applies to
such  entity)  in  good  standing  under the laws of its jurisdiction of
incorporation or organization and has all requisite authority to conduct
its business in each jurisdiction in which its business is conducted.

     5.2. AUTHORIZATION AND VALIDITY.   Each  of  the  Borrower  and its
Subsidiaries has the power and authority and legal right to execute  and
deliver  the  Loan  Documents  to which it is a party and to perform its
obligations thereunder.  The execution  and delivery by the Borrower and
its Subsidiaries of the Loan Documents to  which  it  is a party and the
performance of its obligations thereunder have been duly  authorized  by
proper  corporate  proceedings,  and  the  Loan  Documents  to which the
Borrower  and  its  Subsidiaries is a party constitute legal, valid  and
binding obligations of  the  Borrower  and  its Subsidiaries enforceable
against the Borrower and Subsidiaries in accordance  with  their  terms,
except  as  enforceability  may  be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors' rights generally.

     5.3. NO CONFLICT; GOVERNMENT  CONSENT.   Neither  the execution and
delivery by the Borrower and its Subsidiaries of the Loan  Documents  to
which  it  is  a party, nor the consummation of the transactions therein
contemplated, nor  compliance  with  the provisions thereof will violate
(i) any law, rule, regulation, order, writ, judgment, injunction, decree
or award binding on the Borrower or any  of its Subsidiaries or (ii) the
Borrower's or any Subsidiary's articles or certificate of incorporation,
partnership   agreement,   certificate  of  partnership,   articles   or
certificate of organization,  by-laws,  or operating or other management
agreement, as the case may be, or (iii) the provisions of any indenture,
instrument or agreement to which the Borrower or any of its Subsidiaries
is a party or is subject, or by which it,  or its Property, is bound, or
conflict  with  or constitute a default thereunder,  or  result  in,  or
require, the creation  or  imposition  of  any  Lien  in,  of  or on the
Property  of  the Borrower or a Subsidiary pursuant to the terms of  any
such  indenture,   instrument   or   agreement.    No   order,  consent,
adjudication,  approval,  license, authorization, or validation  of,  or
filing, recording or registration with, or exemption by, or other action
in respect of any governmental  or  public  body  or  authority,  or any
subdivision thereof, which has not been obtained by the Borrower or  any
of  its  Subsidiaries, is required to be obtained by the Borrower or any
of its Subsidiaries in connection with the execution and delivery of the
Loan Documents,  the  borrowings  under  this Agreement, the payment and
performance  by  the  Borrower  of  the  Obligations  or  the  legality,
validity, binding effect or enforceability of any of the Loan Documents.

     5.4. FINANCIAL STATEMENTS.  The March  31,  2000  and June 30, 2000
consolidated  financial statements of the Borrower and its  Subsidiaries
heretofore delivered  to  the  Lenders  were prepared in accordance with
generally accepted accounting principles  in  effect  on  the  date such
statements  were  prepared and fairly present the consolidated financial
condition and operations  of  the  Borrower and its Subsidiaries at such
date and the consolidated results of  their  operations  for  the period
then ended.

     5.5. MATERIAL  ADVERSE CHANGE.  Since June 30, 2000 there has  been
no change in the business,  Property, prospects, condition (financial or
otherwise) or results of operations of the Borrower and its Subsidiaries
which could reasonably be expected to have a Material Adverse Effect.

     5.6. TAXES.  The Borrower  and  its  Subsidiaries  have  filed  all
United  States  federal  tax returns and all other tax returns which are
required to be filed and have  paid  all  taxes  due  pursuant  to  said
returns or pursuant to any assessment received by the Borrower or any of
its  Subsidiaries,  except such taxes, if any, as are being contested in
good faith and as to  which  adequate  reserves  have  been  provided in
accordance with Agreement Accounting Principles and as to which  no Lien
exists.   The  United States income tax returns of the Borrower and  its
Subsidiaries have  been  audited  (or are no longer subject to audit) by
the   Internal   Revenue  Service  through   the   fiscal   year   ended
______________, ____.   No  tax  liens have been filed and no claims are
being asserted with respect to any  such  taxes.   The charges, accruals
and  reserves  on  the  books  of  the Borrower and its Subsidiaries  in
respect of any taxes or other governmental charges are adequate.

     5.7. LITIGATION AND CONTINGENT OBLIGATIONS. There is no litigation,
arbitration, governmental investigation,  proceeding  or inquiry pending
or,  to  the knowledge of any of their officers, threatened  against  or
affecting the Borrower or any of its Subsidiaries which could reasonably
be expected to have a Material Adverse Effect or which seeks to prevent,
enjoin or  delay  the  making  of  any  Loans.  Other than any liability
incident to any litigation, arbitration or  proceeding  which  could not
reasonably  be  expected to have a Material Adverse Effect, the Borrower
has no material contingent  obligations not provided for or disclosed in
the financial statements referred to in Section 5.4.

     5.8. SUBSIDIARIES.  Schedule  3  contains  an  accurate list of all
Subsidiaries of the Borrower as of the Closing Date, setting forth their
respective  jurisdictions  of organization and the percentage  of  their
respective capital stock or  other  ownership  interests  owned  by  the
Borrower  or  other  Subsidiaries.   All  of  the issued and outstanding
shares   of  capital  stock  or  other  ownership  interests   of   such
Subsidiaries  have  been  (to the extent such concepts are relevant with
respect to such ownership interests)  duly authorized and issued and are
fully paid and non-assessable.

     5.9. ERISA.  Each Plan complies in  all  material respects with all
applicable requirements of law and regulations,  no Reportable Event has
occurred with respect to any Plan, and the Borrower  has  not  withdrawn
from any Plan or initiated steps to do so, and no steps have been  taken
to reorganize or terminate any Plan.

     5.10.  ACCURACY  OF INFORMATION.  No information, exhibit or report
furnished by the Borrower  or any of its Subsidiaries to the Agent or to
any Lender in connection with  the  negotiation  of, or compliance with,
the  Loan  Documents  contained  any material misstatement  of  fact  or
omitted to state a material fact or  any  fact  necessary  to  make  the
statements contained therein not misleading.

     5.11.  REGULATION  U.   Margin  stock  (as defined in Regulation U)
constitutes less than 25% of the value of those  assets  of the Borrower
and  its  Subsidiaries  which  are  subject  to any limitation on  sale,
pledge, or other restriction hereunder.

     5.12. MATERIAL AGREEMENTS.  Neither the Borrower  nor  any  of  its
Subsidiaries is a party to any agreement or instrument or subject to any
charter  or  other  corporate  restriction  which  could  reasonably  be
expected  to  have  a Material Adverse Effect.  Neither the Borrower nor
any of its Subsidiaries  is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained
in  (i) any agreement to which  it  is  a  party,  which  default  could
reasonably  be  expected  to  have a Material Adverse Effect or (ii) any
agreement or instrument evidencing or governing Indebtedness.

     5.13. COMPLIANCE WITH LAWS.  The Borrower and its Subsidiaries have
complied with all laws, rules,  regulations,  orders and restrictions of
any  domestic  or  foreign government or any instrumentality  or  agency
thereof  having  jurisdiction  over  the  conduct  of  their  respective
businesses or the  ownership  of  their  respective Property, including,
without limitation, Regulation U, T and X  of  the Board of Governors of
the Federal Reserve System, and all Environmental  Laws,  except for any
failure  to comply with any of the foregoing which could not  reasonably
be expected to have a Material Adverse Effect.

     5.14.  OWNERSHIP OF PROPERTIES.  On the date of this Agreement, the
Borrower and  its  Subsidiaries  will have good title, free of all Liens
other than Permitted Liens, to all  of the Property and assets reflected
in the Borrower's most recent consolidated financial statements provided
to the Agent as owned by the Borrower and its Subsidiaries.

     5.15. PLAN ASSETS; PROHIBITED TRANSACTIONS.  The Borrower is not an
entity deemed to hold "plan assets" within  the  meaning  of  29  C.F.R.
<section>  2510.3-101 of an employee benefit plan (as defined in Section
3(3) of ERISA)  which is subject to Title I of ERISA or any plan (within
the meaning of Section  4975  of the Code), and neither the execution of
this  Agreement  nor the making of  Loans  hereunder  gives  rise  to  a
prohibited transaction  within  the  meaning  of Section 406 of ERISA or
Section 4975 of the Code.

     5.16.  ENVIRONMENTAL  MATTERS.   In  the  ordinary  course  of  its
business,  the  officers  of  the  Borrower  consider   the   effect  of
Environmental Laws on the business of the Borrower and its Subsidiaries,
in  the  course of which they identify and evaluate potential risks  and
liabilities  accruing to the Borrower due to Environmental Laws.  On the
basis of this consideration, the Borrower has concluded that there is no
non-compliance  with  the  Environmental  Laws  that could reasonably be
expected to have a Material Adverse Effect.  Neither  the  Borrower  nor
any  of  its Subsidiaries has received any notice to the effect that its
operations  are  not in material compliance with any of the requirements
of applicable Environmental  Laws  or  are the subject of any federal or
state investigation evaluating whether any  remedial action is needed to
respond to a release of any toxic or hazardous  waste  or substance into
the   environment,   which  non-compliance  or  remedial  action   could
reasonably be expected to have a Material Adverse Effect.

     5.17. INVESTMENT  COMPANY ACT.  Neither the Borrower nor any of its
Subsidiaries is an "investment  company" or a company "controlled" by an
"investment company", within the  meaning  of the Investment Company Act
of 1940, as amended.

     5.18. PUBLIC UTILITY HOLDING COMPANY ACT.  Neither the Borrower nor
any of its Subsidiaries is a "holding company" or a "subsidiary company"
of a "holding company", or an "affiliate" of a "holding company" or of a
"subsidiary company" of a "holding company",  within  the meaning of the
Public Utility Holding Company Act of 1935, as amended.

     5.19.   SOLVENCY.   (i) Immediately after the consummation  of  the
transactions to occur on the  date  hereof and immediately following the
making of each Loan, if any, made on  the  date  hereof and after giving
effect to the application of the proceeds of such  Loans,  (a)  the fair
value  of  the  assets  of  the  Borrower  and  its  Subsidiaries  on  a
consolidated  basis,  at  a  fair  valuation,  will exceed the debts and
liabilities, subordinated, contingent or otherwise,  of the Borrower and
its Subsidiaries on a consolidated basis; (b) the present  fair saleable
value  of  the  Property  of  the  Borrower  and  its Subsidiaries on  a
consolidated basis will be greater than the amount that will be required
to pay the probable liability of the Borrower and its  Subsidiaries on a
consolidated  basis on their debts and other liabilities,  subordinated,
contingent or otherwise,  as  such  debts  and  other liabilities become
absolute  and  matured;  (c)  the  Borrower  and its Subsidiaries  on  a
consolidated  basis  will  be able to pay their debts  and  liabilities,
subordinated, contingent or  otherwise,  as  such  debts and liabilities
become absolute and matured; and (d) the Borrower and  its  Subsidiaries
on  a  consolidated basis will not have unreasonably small capital  with
which to  conduct  the  businesses  in  which  they  are engaged as such
businesses are now conducted and are proposed to be conducted  after the
date hereof.  The Borrower does not intend to, or to permit any  of  its
Subsidiaries to, and does not believe that it or any of its Subsidiaries
will,  incur  debts beyond its ability to pay such debts as they mature,
taking into account  the timing of and amounts of cash to be received by
it or any such Subsidiary  and  the  timing of the amounts of cash to be
payable on or in respect of its Indebtedness  or the Indebtedness of any
such Subsidiary.

     5.20 REGULATION O.  To the best of the Borrower's knowledge, (i) no
Person is a director or executive officer of the  Borrower or any of its
Subsidiaries, owning more than 10% of any class of  voting securities of
the Borrower, and (ii) no Person owning more than 10%  of  any  class of
voting securities of the Borrower and is the largest shareholder of that
class of securities of the Borrower, is a director, executive officer or
principal shareholder of any Lender or any Affiliate of any Lender.

                               ARTICLE VI

                               COVENANTS

     During  the  term  of  this  Agreement, unless the Required Lenders
shall otherwise consent in writing:

     6.1. FINANCIAL REPORTING.  The  Borrower  will maintain, for itself
and  for  each  Subsidiary,  a  system  of  accounting  established  and
administered  in  accordance with Agreement Accounting  Principles,  and
furnish to the Lenders:

  (i)     Within 90  days  after  the  end  of each of Borrower's fiscal
          years  (ending  December  31),  an  unqualified  audit  report
          certified   by   independent   certified  public   accountants
          acceptable  to  the  Lenders,  prepared   in  accordance  with
          Agreement   Accounting   Principles  on  a  consolidated   and
          consolidating  basis (consolidating  statements  need  not  be
          certified  by  such   accountants)   for   Borrower   and  its
          Subsidiaries,  including balance sheets as of the end of  such
          period,  related  profit  and  loss  statement,  statement  of
          changes in  shareholders  equity  and statement of cash flows,
          accompanied by a certificate of said  accountants that, in the
          course of their examination necessary for  their certification
          of  the  foregoing,  they  have obtained no knowledge  of  any
          Default or Unmatured Default,  or  if,  in the opinion of such
          accountants,  any  Default or Unmatured Default  shall  exist,
          stating the nature and status thereof.

 (ii)     Within  45  days  after   the  end  of  each  calendar  month,
          consolidated and consolidating  unaudited balance sheets as at
          the  end  of  such  month and consolidated  and  consolidating
          profit and loss statements,  for the period from the beginning
          of such fiscal year to the end of such month, all certified by
          its chief financial officer.

(iii)     Together with the financial statements required under Sections
          6.1(i)   and   (ii)   (but  only  quarterly),   a   Compliance
          Certificate.

       (iv)Within 20 days after the  end  of  each  calendar  month  (or
          within  5  days  after  any request by the Agent), a Borrowing
          Base  Certificate  with  respect   to  the  Borrower  and  its
          Subsidiaries,  accompanied  by  such  supporting   detail  and
          documentation as shall be requested by the Agent.

       (v)Within 20 days after the end of each calendar month,  a report
          of  the  work  in  progress inventory of the Borrower and each
          Subsidiary as of the  end of such month, in form and substance
          satisfactory to the Agent.

 (vi)     Within  20 days after the  end  of  each  calendar  month,  an
          accounts  receivable aging report for the Borrower and each of
          its Subsidiaries  as  of  the  end  of such month, in form and
          substance  satisfactory  to  the  Agent  (including  notations
          indicating which accounts receivable are supported  by letters
          of  credit issued or confirmed by banks located in the  United
          States).

     (vii)Within  45 days of the end of each calendar month, a report of
          the  backlog/jobs   in  progress  of  the  Borrower  and  each
          Subsidiary as of the  end of such month, in form and substance
          satisfactory to the Agent.

     (viii)Within 45 days after the  end  of  each  calendar  month,  an
          accounts  payable  report  for  the  Borrower  and each of its
          Subsidiaries  as  of  the  end  of  such  month,  in form  and
          substance satisfactory to the Agent.

        (ix)As soon as available, but in any event within 30  days after
          the beginning of each of Borrower's fiscal year, a copy of the
          plan  and  forecast  (including  a projected consolidated  and
          consolidating balance sheet, income  statement  and funds flow
          statement)  of  the  Borrower and its Subsidiaries   for  each
          fiscal quarter of such fiscal year and for such fiscal year as
          a whole.

  (x)     As soon as possible and  in any event within 10 days after the
          Borrower knows that any Reportable  Event  has  occurred  with
          respect to any Plan, a statement signed by the chief financial
          officer  of the Borrower, describing said Reportable Event and
          the action  which  the  Borrower proposes to take with respect
          thereto.

       (xi)As soon as possible and  in  any  event  within 10 days after
          receipt by the Borrower, a copy of (a) any  notice or claim to
          the effect that the Borrower or any of its Subsidiaries  is or
          may be liable to any Person as a result of the release by  the
          Borrower,  any of its Subsidiaries, or any other Person of any
          toxic or hazardous  waste  or  substance into the environment,
          and  (b) any notice alleging any  violation  of  any  federal,
          state   or  local  environmental,  health  or  safety  law  or
          regulation  by the Borrower or any of its Subsidiaries, which,
          in  either case,  could  reasonably  be  expected  to  have  a
          Material Adverse Effect.

(xii)     Promptly  upon  the  furnishing thereof to the shareholders of
          the Borrower, copies of  all financial statements, reports and
          proxy statements so furnished.

          (xiii)  Promptly  upon  the  filing  thereof,  copies  of  all
          registration  statements  and annual,  quarterly,  monthly  or
          other  regular  reports which  the  Borrower  or  any  of  its
          Subsidiaries  files   with   the   Securities   and   Exchange
          Commission.

(xiv)     Such  other  information (including non-financial information)
          as the Agent or  any  Lender  may from time to time reasonably
          request.

     6.2. USE  OF PROCEEDS.  The Borrower  will,  and  will  cause  each
Subsidiary to use  the proceeds of the Revolving Loan for one or more of
the following: (i) to  refinance  existing  indebtedness of the Borrower
and  its Subsidiaries existing on the Closing  Date,  (ii)  for  Capital
Expenditures  and  acquisitions  of  shares  or  assets of other Persons
permitted by this Agreement and incurred after November  30, 1999, up to
the  aggregate  amount  of  $5,000,000, and (iii) for general  corporate
purposes.   The Borrower will  not,  nor  will  it  permit  any  of  its
Subsidiaries  to, use any of the proceeds of the Advances to purchase or
carry any "margin stock" (as defined in Regulation U).

     6.3. NOTICE  OF  DEFAULT.  The Borrower will (a) give prompt notice
in writing to the Lenders  of the occurrence of any Default or Unmatured
Default and of any other development, financial or otherwise which could
reasonably  be expected to have  a  Material  Adverse  Effect,  and  (b)
promptly  advise  by  written  notice  to  the  Agent  of  any  material
inaccuracy  in  any  representation  or  warranty set forth in Article V
which occurs due to events or circumstances  arising  after  the Closing
Date (whether or not the subject of such inaccuracy could reasonably  be
expected to cause or give rise to a Material Adverse Effect).

     6.4. CONDUCT  OF  BUSINESS.  The Borrower will, and will cause each
of  its  Subsidiaries  to,   carry   on  and  conduct  its  business  in
substantially the same manner and in substantially  the  same  fields of
enterprise  as it is presently conducted and do all things necessary  to
remain duly incorporated  or  organized,  validly  existing  and (to the
extent  such  concept  applies  to  such  entity) in good standing as  a
domestic corporation, partnership or limited  liability  company  in its
jurisdiction  of incorporation or organization, as the case may be,  and
maintain  all requisite  authority  to  conduct  its  business  in  each
jurisdiction in which its business is conducted.

     6.5. TAXES.   The  Borrower  will,  and  will  cause  each  of  its
Subsidiaries  to, timely file complete and correct United States federal
and applicable  foreign, state and local tax returns required by law and
pay when due all  taxes, assessments and governmental charges and levies
upon it or its income, profits or Property, except those which are being
contested in good faith  by  appropriate proceedings and with respect to
which adequate reserves have been set aside in accordance with Agreement
Accounting Principles.

     6.6. INSURANCE.  The Borrower  will,  and  will  cause  each of its
Subsidiaries to, maintain with financially sound and reputable insurance
companies  insurance on all their Property in such amounts and  covering
such  risks as  is  consistent  with  sound  business  practice,  or  as
otherwise  provided  in  the Collateral Documents, and the Borrower will
furnish to any Lender upon  request full information as to the insurance
carried.

     6.7. COMPLIANCE  WITH  LAWS;   ENVIRONMENTAL   MATTERS.   (a)   The
Borrower will, and will cause each of its Subsidiaries  to,  comply with
all  laws,  rules,  regulations,  orders, writs, judgments, injunctions,
decrees or awards to which it or its  Property may be subject including,
without limitation, Regulations U, T, and X of the Board of Governors of
the  Federal  Reserve  System, and also including,  without  limitation,
ERISA and Environmental Laws.

     (b) The Borrower will,  and will cause each of its Subsidiaries to,
and will use its best efforts to cause each of their agents, contractors
and sub-contractors (while such  Persons  are acting within the scope of
their contractual relationship with the Borrower or the Subsidiaries) to
comply in all material respects with all applicable  Environmental Laws,
and to prevent the unauthorized release, discharge, disposal,  escape or
spill  of  hazardous  substances  on  or  about  the properties owned or
operated by the Borrower or the Subsidiaries.

     (c)  Attached  as Schedule 5 hereto is the Borrower's  response  to
findings ("Response")  of  the  environmental  engineer who prepared the
Phase I environmental study on the land owned by  the  Borrower  at  the
Port  of  Iberia.   The  Borrower  will,  and  will cause any applicable
subsidiary  to,  complete  all  of  the items listed  under  the  column
"Solution" on the Responses within the  time  periods  listed  under the
column "Timing" on the Responses.

     6.8. MAINTENANCE OF PROPERTIES.  The Borrower will, and will  cause
each  of  its  Subsidiaries  to,  do  all  things necessary to maintain,
preserve, protect and keep its Property in good  repair,  working  order
and  condition,  and make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may
be properly conducted at all times.

     6.9. INSPECTION.   The  Borrower  will,  and will cause each of its
Subsidiaries to, permit the Agent and the Lenders,  by  their respective
representatives  and agents, to inspect any of the Property,  books  and
financial records  of  the  Borrower  and  each  of its Subsidiaries, to
examine  and  make copies of the books of accounts and  other  financial
records of the Borrower and each of its Subsidiaries, and to discuss the
affairs,  finances  and  accounts  of  the  Borrower  and  each  of  its
Subsidiaries with, and to be advised as to the same by, their respective
officers at  such  reasonable  times  and  intervals,  subject  to prior
reasonable notice and during business hours,  as the Agent or any Lender
may designate.

     6.10. DIVIDENDS.  The Borrower will not, nor will it permit  any of
its   Subsidiaries  to,  declare  or  pay  any  dividends  or  make  any
distributions  on its capital stock (other than dividends payable in its
own capital stock)  or redeem, repurchase or otherwise acquire or retire
any of its capital stock  at  any  time  outstanding,  except  that  any
Subsidiary  may  declare  and pay dividends or make distributions to the
Borrower or to a Wholly-Owned Subsidiary.

     6.11. INDEBTEDNESS.  The  Borrower will not, nor will it permit any
of  its  Subsidiaries  to,  create,   incur   or  suffer  to  exist  any
Indebtedness, except:

  (i)     The Loans.

 (ii)     Indebtedness   arising  under  Rate  Management   Transactions
          related to the Loans.

(iii)Trade credit or other  contractual  obligations  to  acquire goods,
          supplies,   and   services,   including,  without  limitation,
          obligations  incurred  to  employees   for   compensation  for
          services  rendered  in  the  ordinary  course of business,  or
          merchandise on terms similar to those granted to purchasers in
          similar lines of business as Borrower as  of  the  date hereof
          and incurred in the ordinary course of business.

 (iv)Rental payments on Operating Leases.

  (v)Deferred taxes.

 (vi)Unfunded  pension  fund and other employee benefit plan obligations
          and liabilities,  but only to the extent they are permitted to
          remain unfunded under applicable law.

     (vii)     Indebtedness to  secure  the  unpaid  purchase  price  of
               equipment  used in the operations of the Borrower and its
               Subsidiaries  up  to  the aggregate amount of $500,000 at
               any one time.

     (viii)Endorsements  for collection,  deposits  or  negotiation  and
          warranties or products  or  services, in each case incurred in
          the ordinary course of business.

     (ix) Indebtedness in respect of performance, surety or appeal bonds
          obtained  in  the  ordinary  course   of   Borrower's  or  any
          Subsidiary' business.

     (x)  Indebtedness from the Borrower in favor of one  or more of its
          Subsidiaries or from one or more of its Subsidiaries  in favor
          of the Borrower.

     6.12. MERGER.  The Borrower will not, nor will it permit any of its
Subsidiaries  to,  merge  or  consolidate with or into any other Person,
except that a Subsidiary may merge  into  the Borrower or a Wholly-Owned
Subsidiary, the Borrower or a Subsidiary may  merge  with another Person
to affect an Acquisition permitted by Section 6.14.

     6.13. SALE OF ASSETS.  The Borrower will not, nor  will  it  permit
any  of  its  Subsidiaries  to,  lease, sell or otherwise dispose of its
Property to any other Person, except:

     (i)  Sales of inventory in the ordinary course of business.

           (ii)Leases, sales or other dispositions of its Property that,
          together with all other  Property  of  the  Borrower  and  its
          Subsidiaries  previously  leased,  sold  or disposed of (other
          than  inventory  in  the  ordinary  course  of  business)   as
          permitted  by  this  Section  during  the  twelve-month period
          ending with the month in which any such lease,  sale  or other
          disposition occurs, do not constitute a Substantial Portion of
          the Property of the Borrower and its Subsidiaries.

     (iii)Transfers of Property among the Borrower and its Subsidiaries.

     (iv) A  sale  of  assets which are promptly replaced thereafter  by
          assets of a similar type and value.

      (v) Obsolete or worn-out  equipment sold in the ordinary course of
          business.

     6.14. INVESTMENTS AND ACQUISITIONS.   The  Borrower  will  not, nor
will  it permit any of its Subsidiaries to, make or suffer to exist  any
Investments or to make any Acquisition of any Person, except:

     (i)  Short-term  obligations of, or fully guaranteed by, the United
          States of America, commercial paper rated A-1 or better by S&P
          or  P-1  or  better   by   Moody's,  demand  deposit  accounts
          maintained   in   the  ordinary  course   of   business,   and
          certificates of deposit  issued  by,  and  time deposits with,
          commercial banks (whether domestic or foreign)  having capital
          and  surplus  in  excess  of $100,000,000 or with any  Lender;
          PROVIDED in each case that  the  same  provides for payment of
          both  principal  and  interest  (and  not principal  alone  or
          interest  alone)  and  is  not  subject  to  any   contingency
          regarding the payment of principal or interest.

 (ii)     Existing Investments in Subsidiaries and other Investments  in
          existence on the date hereof and described as follows:

(iii)Future acquisitions of substantially all of the shares or assets of
          another   Person   in   a  single  transaction,  for  a  total
          consideration   of  not  more   than   $5,000,000   for   each
          transaction.

 (iv)Acquisition of current  assets or liabilities arising from the sale
          or  lease  or  goods,  the    rendition  of  services  or  the
          extension of credit in the  ordinary course of business of the
          Borrowers and its Subsidiaries, including, without limitation,
          investments in accounts, contract  rights,  chattel  paper and
          notes receivable.

  (v)Advances  to officers, shareholders, and employees of Borrower  not
          to exceed $100,000 in the aggregate at any one time.

 (vi)Rate Management Obligations in favor of any Lender.

(vii)Advances or Investments by the Borrower in or to any one or more of
          its Subsidiaries or by any Subsidiary in or to the Borrower or
          any other Subsidiary.

6.15.LIENS.  The  Borrower  will  not,  nor  will  it  permit any of its
Subsidiaries to, create, incur, or suffer to exist any Lien in, of or on
the Property of the Borrower or any of its Subsidiaries,  except for the
following (collectively, the "Permitted Liens"):

  (i)Liens for taxes, assessments or governmental charges or  levies  on
          its  Property  if the same shall not at the time be delinquent
          or thereafter can  be  paid  without  penalty,  or  are  being
          contested in good faith and by appropriate proceedings and for
          which   adequate   reserves   in   accordance  with  Agreement
          Accounting Principles shall have been set aside on its books.

 (ii)Liens  imposed  by  law,  such  as  carriers',  warehousemen's  and
          mechanics'  liens  and  other similar  liens  arising  in  the
          ordinary  course  of  business   which   secure   payment   of
          obligations  not more than 60 days past due or which are being
          contested in good  faith  by  appropriate  proceedings and for
          which  adequate  reserves  shall have been set  aside  on  its
          books.

(iii)     Liens  arising  out  of pledges  or  deposits  under  worker's
          compensation laws, unemployment  insurance,  old age pensions,
          or  other social security or retirement benefits,  or  similar
          legislation.

 (iv)     Utility   easements,  building  restrictions  and  such  other
          encumbrances  or  charges  against  real  property as are of a
          nature  generally  existing  with respect to properties  of  a
          similar character and which do  not in any material way affect
          the  marketability  of  the same or  interfere  with  the  use
          thereof in the business of the Borrower or its Subsidiaries.

  (v)Liens  in  favor of the Agent, for  the  benefit  of  the  Lenders,
          granted pursuant to any Collateral Document.

 (vi)     Liens  constituting   purchase  money  security  interests  in
          equipment  securing Indebtedness  permitted  by  Section  6.11
          (vii).

     (vii)Attachment,  judgment  and  other  similar,  non-tax  Liens in
connection  with  court proceedings, but only if and for so long as  the
execution or other  enforcement  of  such  Liens  is and continues to be
effectively  stayed  and  bonded  on  appeal  in  a  manner   reasonably
satisfactory to Lenders for the full amount of such Liens, the  validity
and amount of the claims secured thereby are being actively contested in
good faith and by appropriate lawful proceedings, such Liens do not,  in
the  aggregate, materially detract from the value of the Property of the
Borrower or any of its Subsidiaries or materially impair the use thereof
in the  operation of the Borrower's or any of its Subsidiaries' business
and such  Liens  are and remain junior in priority to the Liens in favor
of the Lender.

6.16.YEAR 2000. [Intentionally Omitted]

6.17.  TRANSACTIONS  WITH  AFFILIATES.   The Borrower will not, and will
not  permit  any  of  its Subsidiaries to, enter  into  any  transaction
(including, without limitation,  the purchase or sale of any Property or
service) with, or make any payment  or transfer to, any Affiliate except
in  the  ordinary  course of business and  pursuant  to  the  reasonable
requirements of the  Borrower's  or  such Subsidiary's business and upon
fair and reasonable terms no less favorable  to  the  Borrower  or  such
Subsidiary  than  the  Borrower  or  such  Subsidiary  would obtain in a
comparable arms-length transaction.

6.18 APPRAISALS.  The Agent shall have the right to retain  one  or more
nationally  recognized firms to prepare appraisals of the Assets of  the
Borrower and  its  Subsidiaries  and  to  conduct  field  audits  of the
Borrower  and  its  Subsidiaries,  as  of  June  30 of each year, at the
Borrower's expense.  The Borrower shall cooperate with the Agent and the
appraiser so as to facilitate the delivery of the  appraisal  within  45
days after the Agent's request therefor.

6.19 FINANCIAL COVENANTS.

6.19.1  MAXIMUM  FUNDED  INDEBTEDNESS  TO TANGIBLE NET WORTH RATIO.  The
Borrower will not permit the ratio, determined  as  of  the  end of each
fiscal quarter, of (i) Funded Indebtedness to (ii) Tangible Net Worth to
be greater than the following:

     PERIOD                                       MAXIMUM RATIO
     Closing Date through December 31, 2001       1.00 to 1.00
     January 1, 2002 through December 31, 2002 0.75 to 1.00
     January 1, 2003 and thereafter          0.50 to 1.00

6.19.2  MAXIMUM FUNDED INDEBTEDNESS TO EBITDA RATIO.  The Borrower  will
not permit  the  ratio, determined as of the end of each fiscal quarter,
of (i) Funded Indebtedness  to  (ii)  EBITDA  for the then most-recently
ended four fiscal quarters (except as noted below),  be greater than the
following:

     PERIOD                                       MAXIMUM RATIO
     January 1, 2001 through March 31, 2001       4.50 to 1.00
     April 1, 2001 through June 30, 2001     4.50 to 1.00
     July 1,  2001 through September 30, 2001     4.00 to 1.00
     October 1, 2001 through December 31, 20013.50 to 1.00
     January 1, 2002 through March 31, 2002       3.25 to 1.00
     April 1, 2002 through June 30, 2002          3.00 to 1.00
     July 1, 2002 through September 30, 2002      2.75 to 1.00
     October 1, 2002 and thereafter          2.50 to 1.00

Notwithstanding the foregoing, for the fiscal quarter  ending  March 31,
2001,  EBITDA  shall  be  calculated on the basis of that fiscal quarter
annualized; for the fiscal quarter ending June 30, 2001, EBITDA shall be
calculated on the basis of  the two fiscal quarters ending June 30, 2001
annualized; for the fiscal quarter  ending  September  30,  2001, EBITDA
shall  be  calculated  on the basis of the three fiscal quarters  ending
September 30, 2001 annualized.

6.19.3 MINIMUM FIXED CHARGE  COVERAGE RATIO.  (a)  The Borrower will not
permit the ratio, determined as  of the last day of each fiscal quarter,
of (i) the sum of EBITDA PLUS Capitalized  Lease  Expenses,  PLUS Rental
Expense,  MINUS  cash  Income  Taxes actually paid, MINUS cash dividends
actually  paid,  to (ii) the sum of  Capitalized  Lease  Expenses,  PLUS
Rental Expense,  PLUS  Interest  Expense, in each case for the then most
recently ended quarter to be less than the following:

     PERIOD                                       MINIMUM RATIO
     Closing Date through December 31, 2000       1.25 to 1.00

(b)  The Borrower will not permit the ratio, determined as of the end of
each fiscal quarter, of (i) the sum  of  EBITDA  PLUS  Capitalized Lease
Expenses,  PLUS  Rental Expense, MINUS cash Income Taxes actually  paid,
MINUS cash dividends  actually paid, MINUS Capital Expenditures actually
incurred to maintain the then current level of operation of the Borrower
and its Subsidiaries, or  $250,000  per  year (whichever is greater), to
(ii) the sum of Capitalized Lease Expenses,  PLUS  Rental  Expense, PLUS
Interest  Expense,  plus  scheduled  principal  payments (excluding  any
mandatory prepayments) made on Funded Indebtedness, in each case for the
then  most  recently ended four fiscal quarters, to  be  less  than  the
following:

     PERIOD                                       MINIMUM RATIO
                                             January    1,    2001   and
                                             thereafter2.00 to 1.00

Notwithstanding  the foregoing, for the fiscal quarter ending March  31,
2001, the fixed charge  ratio  shall  be calculated on the basis of that
fiscal quarter annualized; for the fiscal  quarter ending June 30, 2001,
the fixed charge coverage ratio shall be calculated  on the basis of the
two  fiscal  quarters  ending June 30, 2001 annualized; for  the  fiscal
quarter ending September 30, 2001, the fixed charge coverage ratio shall
be calculated on the basis of the three fiscal quarters ending September
30, 2001 annualized.

6.19.4 MINIMUM CURRENT RATIO.   The  Borrower will not permit the ratio,
determined as of the end of each fiscal  quarter,  of  current assets to
current liabilities to be less than 1.50 to 1.00.

6.19.5  ADJUSTMENT  TO FINANCIAL COVENANTS.  The Agent and  the  Lenders
reserve the right to  modify  the  foregoing financial and/or additional
other  financial  covenants  in  the event  that  the  Borrower  obtains
additional  equity  in  excess  of  10%   of   its  shareholders  equity
immediately preceding the closing of such equity issuance.

                              ARTICLE VII

                                DEFAULTS

The  occurrence  of  any  one  or  more  of the following  events  shall
constitute a Default:

 7.1.Any representation or warranty made or  deemed made by or on behalf
of the Borrower or any of its Subsidiaries to  the  Lenders or the Agent
under or in connection with this Agreement, any Loan, or any certificate
or information delivered in connection with this Agreement  or any other
Loan Document shall be materially false on the date as of which made.

 7.2.Nonpayment of any interest or principal on the Loan, or  nonpayment
of  any  commitment  fee  or  other  obligations  under  any of the Loan
Documents,  or  nonpayment  of  any Rate Management Obligations  to  any
Lender, or nonpayment of any reimbursement obligations to a Lender under
any Letter of Credit, in each case  within  five  days  after  the  same
becomes due.

  7.3.The  breach  by  the Borrower of any of the terms or provisions of
Section 6.2, 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.17, 6.18 and 6.19.

 7.4.The breach by the Borrower (other than a breach which constitutes a
Default under another Section  of  this Article VII) of any of the terms
or provisions of this Agreement or any  other Loan Document which is not
remedied  within 30 days after written notice  from  the  Agent  or  any
Lender.

 7.5.Failure  of the Borrower or any of its Subsidiaries to pay when due
any Indebtedness  to  any  Person  other than the Lenders aggregating in
excess of $500,000 ("Material Indebtedness");  or  the  default  by  the
Borrower  or  any  of  its  Subsidiaries  in the performance (beyond the
applicable  grace period with respect thereto,  if  any)  of  any  term,
provision or  condition  contained in any agreement under which any such
Material Indebtedness was  created  or  is  governed, or any other event
shall occur or condition exist, the effect of  which default or event is
to  cause,  or  to  permit  the  holder  or  holders  of  such  Material
Indebtedness to cause, such Material Indebtedness to become due prior to
its stated maturity; or any Material Indebtedness of the Borrower or any
of its Subsidiaries shall be declared to be due and payable  or required
to  be  prepaid  or  repurchased  (other  than  by a regularly scheduled
payment) prior to the stated maturity thereof; or the Borrower or any of
its  Subsidiaries shall not pay, or admit in writing  its  inability  to
pay, its debts generally as they become due.

 7.6.The Borrower or any of its Subsidiaries shall (i) have an order for
relief  entered  with respect to it under the Federal bankruptcy laws as
now or hereafter in  effect,  (ii) make an assignment for the benefit of
creditors, (iii) apply for, seek,  consent  to,  or  acquiesce  in,  the
appointment  of  a receiver, custodian, trustee, examiner, liquidator or
similar official for it or any Substantial Portion of its Property, (iv)
institute any proceeding  seeking  an order for relief under the Federal
bankruptcy laws as now or hereafter  in  effect or seeking to adjudicate
it  a  bankrupt  or  insolvent,  or  seeking  dissolution,  winding  up,
liquidation, reorganization, arrangement, adjustment  or  composition of
it  or  its  debts  under any law relating to bankruptcy, insolvency  or
reorganization or relief  of  debtors or fail to file an answer or other
pleading denying the material allegations  of  any such proceeding filed
against it, (v) take any corporate or partnership action to authorize or
effect any of the foregoing actions set forth in  this  Section  7.6  or
(vi)  fail  to  contest  in  good  faith  any  appointment or proceeding
described in Section 7.7.

 7.7.Without the application, approval or consent of the Borrower or any
of  its  Subsidiaries,  a  receiver,  trustee, examiner,  liquidator  or
similar official shall be appointed for  the  Borrower  or  any  of  its
Subsidiaries or any Substantial Portion of its Property, or a proceeding
described in Section 7.6(iv) shall be instituted against the Borrower or
any  of  its Subsidiaries and such appointment continues undischarged or
such proceeding  continues  undismissed  or  unstayed for a period of 30
consecutive days.

 7.8.Any court, government or governmental agency  shall  condemn, seize
or  otherwise  appropriate,  or take custody or control of, all  or  any
portion of the Property of the Borrower and its Subsidiaries which, when
taken  together  with  all  other  Property  of  the  Borrower  and  its
Subsidiaries so condemned, seized,  appropriated,  or  taken  custody or
control  of,  during  the  twelve-month period ending with the month  in
which any such action occurs, constitutes a Substantial Portion.

 7.9.The Borrower or any of  its  Subsidiaries shall fail within 60 days
to pay, bond or otherwise discharge  one or more (i) judgments or orders
for  the  payment  of money in excess of  $100,000  (or  the  equivalent
thereof in currencies other than U.S. Dollars) in the aggregate, or (ii)
nonmonetary judgments or orders which, individually or in the aggregate,
could reasonably be  expected  to  have a Material Adverse Effect, which
judgment(s), in any such case, is/are  not stayed on appeal or otherwise
being appropriately contested in good faith.

7.10.  Any Change in Control shall occur.

7.11.  Any Collateral Document shall for  any  reason  fail  to create a
valid  and perfected first priority security interest in any Substantial
Portion  of  the  collateral  purported to be covered thereby, except as
permitted by the terms of any Collateral  Document,  or  any  Collateral
Document  shall  fail  to  remain  in full force or effect or any action
shall  be  taken  to  discontinue  or  to   assert   the  invalidity  or
unenforceability of any Collateral Document, or the Borrower  shall fail
to  comply  with  any  of  the  terms  or  provisions  of any Collateral
Document.

                              ARTICLE VIII

             ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

8.1.ACCELERATION.  If any Default described in Section 7.6 or 7.7 occurs
with  respect  to the Borrower, the obligations of the Lenders  to  make
Loans hereunder  shall automatically terminate and the Obligations shall
immediately become due and payable without any election or action on the
part of the Agent  or  any  Lender.   If  any  other Default occurs, the
Required Lenders (or the Agent with the consent of the Required Lenders)
may terminate or suspend the obligations of the  Lenders  to  make Loans
hereunder,  or  declare the Obligations to be due and payable, or  both,
whereupon the Obligations  shall  become  immediately  due  and payable,
without presentment, demand, protest or notice of any kind, all of which
the Borrower hereby expressly waives.

If, within 30 days after acceleration of the maturity of the Obligations
or termination of the obligations of the Lenders to make Loans hereunder
as  a  result  of  any  Default (other than any Default as described  in
Section 7.6 or 7.7 with respect to the Borrower) and before any judgment
or  decree for the payment  of  the  Obligations  due  shall  have  been
obtained  or  entered,  the  Required Lenders (in their sole discretion)
shall so direct, the Agent shall, by notice to the Borrower, rescind and
annul such acceleration and/or termination.

8.2.AMENDMENTS.  Subject to the  provisions  of  this  Article VIII, the
Required  Lenders  (or  the  Agent  with the consent in writing  of  the
Required   Lenders)  and  the  Borrower  may   enter   into   agreements
supplemental   hereto  for  the  purpose  of  adding  or  modifying  any
provisions to the Loan Documents or changing in any manner the rights of
the Lenders or the  Borrower hereunder or waiving any Default hereunder;
PROVIDED, HOWEVER, that  no  such  supplemental agreement shall, without
the consent of each Lender affected thereby:

  (i)     Extend the maturity of Loan, or extend or postpone any payment
          of principal and/or interest  due  under  any Loan, or forgive
          all or any portion of the principal amount  of  any  Loan,  or
          reduce  the  rate or extend the time of payment of interest or
          fees thereon,  or  forebear  in the collection of any Loan, or
          grant  a  payment  moratorium  on   any  Loan;  or  amend  the
          definitions  of  "Alternate Base Rate,"  "Applicable  Margin",
          "Eurodollar  Base  Rate",  "Eurodollar  Interest  Period,"  or
          "Eurodollar Rate" or amend the Pricing Schedule.

 (ii)     Reduce the percentage  specified in the definition of Required
          Lenders or any other percentage of Lenders specified to be the
          applicable percentage in  this  Agreement  to act on specified
          matters,  or  amend the definitions of "Required  Lenders"  or
          "Pro Rata Share".

(iii)     Extend the Revolving  Loan  Termination  Date,  or increase or
          reduce  the amount of the Aggregate Revolving Loan  Commitment
          or of the  Revolving  Loan Commitment of any Lender hereunder,
          or  permit  the Borrower  to  assign  its  rights  under  this
          Agreement.

 (iv)     Amend this Section 8.2.

  (v)     Except as provided in the Collateral Documents, release all or
          any Substantial  Portion  of  the  Collateral  (including  any
          guarantor of the Secured Obligations); provided, however, that
          the  Agent  may release any Collateral in order to give effect
          to, or otherwise  in connection with, any asset sale, lease or
          other disposition,  or  secured  financing  or other financing
          transaction  permitted  by this Agreement, in which  case  the
          Lenders authorize the Agent to execute and deliver any and all
          related release documents  without  the further consent of any
          Lender.

 (vi)Waive any Default if the practical effect of such waiver allows the
          Agent and/or Required Lenders to effectuate  any  of the items
          or  matters listed in clauses (i) through (v) of this  Section
          8.2 (except  that  any  waiver  or amendments of the financial
          covenants set forth in Section 6.19  shall require the consent
          of the Required Lenders).

No amendment of any provision of this Agreement  relating  to  the Agent
shall be effective without the written consent of the Agent.  The  Agent
may  waive  payment  of  the  fee  required under Section 12.3.2 without
obtaining the consent of any other party to this Agreement.

8.3.PRESERVATION OF RIGHTS.  No delay  or omission of the Lenders or the
Agent to exercise any right under the Loan  Documents  shall impair such
right  or be construed to be a waiver of any Default or an  acquiescence
therein,  and  the  making  of a Loan notwithstanding the existence of a
Default  or the inability of the  Borrower  to  satisfy  the  conditions
precedent  to such Loan shall not constitute any waiver or acquiescence.
Any single or  partial  exercise  of  any  such right shall not preclude
other or further exercise thereof or the exercise  of  any  other right,
and no waiver, amendment or other variation of the terms, conditions  or
provisions  of  the  Loan  Documents whatsoever shall be valid unless in
writing signed by the Lenders required pursuant to Section 8.2, and then
only to the extent in such writing specifically set forth.  All remedies
contained in the Loan Documents  or  by law afforded shall be cumulative
and  all  shall be available to the Agent  and  the  Lenders  until  the
Secured Obligations have been paid in full.

                               ARTICLE IX

                           GENERAL PROVISIONS

9.1.SURVIVAL  OF REPRESENTATIONS.  All representations and warranties of
the Borrower contained in this Agreement shall survive the making of the
Loans herein contemplated.

9.2.GOVERNMENTAL  REGULATION.   Anything  contained in this Agreement to
the contrary notwithstanding, no Lender shall  be  obligated  to  extend
credit  to  the  Borrower  in violation of any limitation or prohibition
provided by any applicable statute or regulation.

9.3.HEADINGS.   Section  headings   in   the   Loan  Documents  are  for
convenience of reference only, and shall not govern  the  interpretation
of any of the provisions of the Loan Documents.

9.4.ENTIRE  AGREEMENT.   The Loan Documents embody the entire  agreement
and understanding among the  Borrower,  the  Agent  and  the Lenders and
supersede  all  prior agreements and understandings among the  Borrower,
the Agent and the  Lenders  relating to the subject matter thereof other
than the fee letter described in Section 10.13.

9.5.SEVERAL OBLIGATIONS; BENEFITS  OF  THIS  AGREEMENT.   The respective
obligations  of the Lenders hereunder are several and not joint  and  no
Lender shall be  the partner or agent of any other (except to the extent
to which the Agent  is  authorized  to act as such).  The failure of any
Lender to perform any of its obligations hereunder shall not relieve any
other  Lender  from any of its obligations  hereunder.   This  Agreement
shall not be construed  so  as  to  confer any right or benefit upon any
Person other than the parties to this  Agreement  and  their  respective
successors  and  assigns,  PROVIDED,  HOWEVER,  that  the parties hereto
expressly  agree  that  the  Arranger  shall enjoy the benefits  of  the
provisions of Sections 9.6, 9.10 and 10.11  to  the  extent specifically
set forth therein and shall have the right to enforce such provisions on
its own behalf and in its own name to the same extent  as  if  it were a
party to this Agreement.

9.6.EXPENSES;  INDEMNIFICATION.   (i)  The Borrower shall reimburse  the
Agent and the Arranger for any costs, internal charges and out-of-pocket
expenses (including attorneys' fees  and  time  charges of attorneys for
the  Agent,  which  attorneys  may be employees of the  Agent)  paid  or
incurred  by  the  Agent  or  the  Arranger   in   connection  with  the
preparation,  negotiation,  execution,  delivery,  syndication,  review,
amendment, modification, and administration of the Loan  Documents.  The
Borrower  also  agrees  to  reimburse  the Agent, the Arranger  and  the
Lenders  for  any  costs, internal charges  and  out-of-pocket  expenses
(including attorneys'  fees and time charges of attorneys for the Agent,
the Arranger and the Lenders,  which  attorneys  may be employees of the
Agent, the Arranger or the Lenders) paid or incurred  by  the Agent, the
Arranger or any Lender in connection with the collection and enforcement
of the Loan Documents.  Expenses being reimbursed by the Borrower  under
this  Section  include,  without  limitation,  the  cost  and expense of
obtaining  an  appraisal of each parcel of real property or interest  in
real property described  in  the  relevant  Collateral  Documents, which
appraisal shall be in conformity with the applicable requirements of any
law or any governmental rule, regulation, policy, guideline or directive
(whether or not having the force of law), or any interpretation thereof,
including,  without  limitation,  the  provisions  of  Title XI  of  the
Financial Institutions Reform, Recovery and Enforcement  Act of 1989, as
amended, reformed or otherwise modified from time to time, and any rules
promulgated  to  implement  such  provisions,  and  costs  and  expenses
incurred  in  connection  with  the  Reports  described in the following
sentence.  The Borrower acknowledges that from  time  to  time the Agent
may  prepare  and  may  distribute  to  the  Lenders (but shall have  no
obligation or duty to prepare or to distribute  to  the Lenders) certain
audit  reports (the "Reports") pertaining to the Borrower's  assets  for
internal  use  by  the  Agent  from information furnished to it by or on
behalf of the Borrower, after the  Agent  has  exercised  its  rights of
inspection pursuant to this Agreement.

(ii)   The  Borrower  hereby further agrees to indemnify the Agent,  the
Arranger, each Lender,  their  respective  affiliates, and each of their
directors, officers and employees against all  losses,  claims, damages,
penalties,  judgments,  liabilities  and  expenses  (including,  without
limitation, all expenses of litigation or preparation  therefor  whether
or  not  the Agent, the Arranger, any Lender or any affiliate is a party
thereto) which  any  of them may pay or incur arising out of or relating
to  this  Agreement,  the   other   Loan   Documents,  the  transactions
contemplated hereby or the direct or indirect  application  or  proposed
application  of  the proceeds of any Loan hereunder except to the extent
that they are determined  in  a final non-appealable judgment by a court
of competent jurisdiction to have  resulted from the gross negligence or
willful   misconduct  of  the  party  seeking   indemnification.     The
obligations  of  the  Borrower  under this Section 9.6 shall survive the
termination of this Agreement.

9.7.NUMBERS OF DOCUMENTS.  All statements,  notices,  closing documents,
and requests hereunder shall be furnished to the Agent  with  sufficient
counterparts so that the Agent may furnish one to each of the Lenders.

9.8.ACCOUNTING.    Except  as  provided  to  the  contrary  herein,  all
accounting terms used  herein  shall  be  interpreted and all accounting
determinations  hereunder  shall  be made in accordance  with  Agreement
Accounting Principles.

9.9.SEVERABILITY OF PROVISIONS.  Any provision in any Loan Document that
is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall,  as  to  that  jurisdiction, be  inoperative,  unenforceable,  or
invalid without affecting  the remaining provisions in that jurisdiction
or the operation, enforceability,  or  validity of that provision in any
other jurisdiction, and to this end the provisions of all Loan Documents
are declared to be severable.

9.10.NONLIABILITY OF LENDERS.  The relationship  between the Borrower on
the one hand and the Lenders and the Agent on the  other  hand  shall be
solely that of borrower and lender.  Neither the Agent, the Arranger nor
any  Lender  shall  have any fiduciary responsibilities to the Borrower.
Neither  the  Agent,  the   Arranger   nor  any  Lender  undertakes  any
responsibility to the Borrower to review  or  inform the Borrower of any
matter  in  connection  with  any  phase of the Borrower's  business  or
operations.  The Borrower agrees that  neither  the  Agent, the Arranger
nor any Lender shall have liability to the Borrower (whether sounding in
tort,  contract  or  otherwise) for losses suffered by the  Borrower  in
connection  with, arising  out  of,  or  in  any  way  related  to,  the
transactions  contemplated  and the relationship established by the Loan
Documents,  or  any  act, omission  or  event  occurring  in  connection
therewith, unless it is determined in a final non-appealable judgment by
a court of competent jurisdiction  that  such  losses  resulted from the
gross negligence or willful misconduct of the party from  which recovery
is  sought.  Neither the Agent, the Arranger nor any Lender  shall  have
any liability  with respect to, and the Borrower hereby waives, releases
and agrees not to  sue  for,  any  special,  indirect  or  consequential
damages suffered by the Borrower in connection with, arising  out of, or
in   any   way  related  to  the  Loan  Documents  or  the  transactions
contemplated thereby.

9.11.CONFIDENTIALITY.   Each  Lender  agrees  to  hold  any confidential
information  which  it  may receive from the Borrower pursuant  to  this
Agreement in confidence, except for disclosure (i) to its Affiliates and
to other Lenders and their respective Affiliates, (ii) to legal counsel,
accountants, and other professional  advisors  to  such  Lender  or to a
Transferee,  (iii)  to  regulatory  officials,  (iv)  to  any  Person as
requested  pursuant  to  or  as  required  by  law, regulation, or legal
process, (v) to any Person in connection with any  legal  proceeding  to
which  such  Lender is a party, (vi) to such Lender's direct or indirect
contractual counterparties  in  swap  agreements  or  to  legal counsel,
accountants and other professional advisors to such counterparties,  and
(vii) permitted by Section 12.4.

9.12.NONRELIANCE.   Each Lender hereby represents that it is not relying
on or looking to any  margin  stock  (as  defined in Regulation U of the
Board of Governors of the Federal Reserve System)  for  the repayment of
the Loans provided for herein.

9.13.DISCLOSURE The Borrower and each Lender hereby (i) acknowledge  and
agree  that  the  Agent and/or its Affiliates from time to time may hold
investments in, make other loans to or have other relationships with the
Borrower and its Affiliates,  and  (ii) waive any liability of the Agent
or  such  Affiliate  of  the  Agent  to  the  Borrower  or  any  Lender,
respectively, arising out of or resulting  from  such investments, loans
or  relationships  other  than  liabilities  arising out  of  the  gross
negligence or willful misconduct of the Agent or its Affiliates.

                               ARTICLE X

                               THE AGENT

10.1.APPOINTMENT; NATURE OF RELATIONSHIP.  Bank One, Louisiana, National
Association  is  hereby  appointed  by  each  of  the   Lenders  as  its
contractual representative (herein referred to as the "Agent") hereunder
and under each other Loan Document, and each of the Lenders  irrevocably
authorizes  the Agent to act as the contractual representative  of  such
Lender with the  rights and duties expressly set forth herein and in the
other Loan Documents.   The  Agent  agrees  to  act  as such contractual
representative upon the express conditions contained in  this Article X.
Notwithstanding  the  use  of the defined term "Agent," it is  expressly
understood  and agreed that the  Agent  shall  not  have  any  fiduciary
responsibilities  to any Lender by reason of this Agreement or any other
Loan Document and that  the  Agent  is  merely acting as the contractual
representative of the Lenders with only those  duties  as  are expressly
set  forth  in  this  Agreement  and  the other Loan Documents.  In  its
capacity as the Lenders' contractual representative,  the Agent (i) does
not hereby assume any fiduciary duties to any of the Lenders,  (ii) is a
"representative"  of the Lenders within the meaning of Section 9-105  of
the Uniform Commercial  Code  and  (iii)  is  acting  as  an independent
contractor,  the  rights  and  duties  of  which  are  limited  to those
expressly  set  forth  in  this  Agreement and the other Loan Documents.
Each of the Lenders hereby agrees  to  assert no claim against the Agent
on any agency theory or any other theory  of  liability  for  breach  of
fiduciary duty, all of which claims each Lender hereby waives.

10.2.POWERS.   The  Agent  shall have and may exercise such powers under
the Loan Documents as are specifically  delegated  to  the  Agent by the
terms  of  each  thereof,  together  with  such powers as are reasonably
incidental thereto; PROVIDED, HOWEVER in the event of a conflict between
the  terms  and  provisions  of  any  Loan  Document  (other  than  this
Agreement)  and  this  Agreement,  the  terms  and  conditions  of  this
Agreement shall control.  The Agent shall have no  implied duties to the
Lenders, or any obligation to the Lenders to take any  action thereunder
except  any action specifically provided by the Loan Documents,  subject
to any limitation contained in this Agreement, to be taken by the Agent.

10.3.GENERAL  IMMUNITY.   Neither  the  Agent  nor any of its directors,
officers,  agents  or  employees shall be liable to  the  Borrower,  the
Lenders or any Lender for  any action taken or omitted to be taken by it
or them hereunder or under any  other  Loan  Document  or  in connection
herewith  or  therewith except to the extent such action or inaction  is
determined in a  final  non-appealable  judgment by a court of competent
jurisdiction  to  have  arisen  from  the gross  negligence  or  willful
misconduct of such Person.

10.4.NO RESPONSIBILITY FOR LOANS, RECITALS,  ETC.  Neither the Agent nor
any of its directors, officers, agents or employees shall be responsible
for  or  have any duty to ascertain, inquire into,  or  verify  (a)  any
statement,  warranty  or representation made in connection with any Loan
Document or any borrowing  hereunder;  (b) the performance or observance
of any of the covenants or agreements of  any  obligor  under  any  Loan
Document, including, without limitation, any agreement by an obligor  to
furnish information directly to each Lender; (c) the satisfaction of any
condition  specified  in Article IV, except receipt of items required to
be  delivered  solely to  the  Agent;  (d)  the  existence  or  possible
existence  of any  Default  or  Unmatured  Default;  (e)  the  validity,
enforceability,  effectiveness,  sufficiency  or genuineness of any Loan
Document  or  any  other instrument or writing furnished  in  connection
therewith; (f) the value,  sufficiency, creation, perfection or priority
of any Lien in any collateral  security;  or (g) the financial condition
of the Borrower or any guarantor of any of  the Obligations or of any of
the  Borrower's  or any such guarantor's respective  Subsidiaries.   The
Agent shall have no  duty to disclose to the Lenders information that is
not required to be furnished  by the Borrower to the Agent at such time,
but is voluntarily furnished by the Borrower to the Agent (either in its
capacity as Agent or in its individual capacity).

10.5.ACTION ON INSTRUCTIONS OF  LENDERS.   Except  as  may  otherwise be
provided in Section 8.2, the Agent shall in all cases be fully protected
in acting, or in refraining from acting, hereunder and under  any  other
Loan  Document  in  accordance  with  written instructions signed by the
Required Lenders, and such instructions  and any action taken or failure
to act pursuant thereto shall be binding on  all  of  the  Lenders.  The
Lenders hereby acknowledge that the Agent shall be under no duty to take
any  discretionary  action permitted to be taken by it pursuant  to  the
provisions of this Agreement  or any other Loan Document unless it shall
be requested in writing to do so  by  the  Required  Lenders.  The Agent
shall  be  fully  justified  in failing or refusing to take  any  action
hereunder and under any other  Loan  Document  unless  it shall first be
indemnified to its satisfaction by the Lenders pro rata  against any and
all liability, cost and expense that it may incur by reason of taking or
continuing to take any such action.

10.6.EMPLOYMENT  OF  AGENTS  AND  COUNSEL.   Except as may otherwise  be
provided in Section 8.2, the Agent may execute  any  of  its  duties  as
Agent  hereunder  and  under  any  other  Loan  Document  by  or through
employees, agents, and attorneys-in-fact and shall not be answerable  to
the  Lenders,  except  as  to  money or securities received by it or its
authorized agents, for the default  or  misconduct of any such agents or
attorneys-in-fact selected by it with reasonable  care.  The Agent shall
be entitled to advice of counsel concerning the contractual  arrangement
between  the  Agent  and  the Lenders and all matters pertaining to  the
Agent's duties hereunder and under any other Loan Document.

10.7.RELIANCE ON DOCUMENTS;  COUNSEL.   The  Agent  shall be entitled to
rely  upon  any  Note, notice, consent, certificate, affidavit,  letter,
telegram, statement,  paper or document believed by it to be genuine and
correct and to have been signed or sent by the proper person or persons,
and, in respect to legal  matters,  upon the opinion of counsel selected
by the Agent, which counsel may be employees of the Agent.

10.8.AGENT'S REIMBURSEMENT AND INDEMNIFICATION.   The  Lenders  agree to
reimburse  and  indemnify  the  Agent  ratably  in  proportion  to their
respective  Pro  Rata  Shares (i) for any amounts not reimbursed by  the
Borrower  for  which the Agent  is  entitled  to  reimbursement  by  the
Borrower under the  Loan Documents, (ii) for any other expenses incurred
by  the  Agent  on  behalf  of  the  Lenders,  in  connection  with  the
preparation, execution,  delivery, administration and enforcement of the
Loan Documents (including, without limitation, for any expenses incurred
by the Agent in connection  with  any  dispute between the Agent and any
Lender  or  between  two  or  more of the Lenders)  and  (iii)  for  any
liabilities,   obligations,   losses,   damages,   penalties,   actions,
judgments, suits, costs, expenses  or  disbursements  of  any  kind  and
nature  whatsoever  which  may  be  imposed  on, incurred by or asserted
against  the Agent in any way relating to or arising  out  of  the  Loan
Documents or any other document delivered in connection therewith or the
transactions  contemplated  thereby  (including, without limitation, for
any such amounts incurred by or asserted against the Agent in connection
with any dispute between the Agent and any Lender or between two or more
of the Lenders), or the enforcement of  any  of  the  terms  of the Loan
Documents  or  of any such other documents, PROVIDED that (a) no  Lender
shall be liable  for  any  of  the  foregoing  to  the extent any of the
foregoing  is found in a final non-appealable judgment  by  a  court  of
competent jurisdiction  to  have  resulted  from the gross negligence or
willful  misconduct  of  the Agent and (b) any indemnification  required
pursuant to Section 3.5(vii)  shall,  notwithstanding  the provisions of
this Section 10.8, be paid by the relevant Lender in accordance with the
provisions thereof.  The obligations of the Lenders under  this  Section
10.8  shall  survive  payment of the Obligations and termination of this
Agreement.

10.9.NOTICE OF DEFAULT.  The Agent shall not be deemed to have knowledge
or  notice  of  the occurrence  of  any  Default  or  Unmatured  Default
hereunder unless  the Agent has received written notice from a Lender or
the Borrower referring  to  this  Agreement  describing  such Default or
Unmatured Default and stating that such notice is a "notice of default".
In the event that the Agent receives such a notice, the Agent shall give
prompt notice thereof to the Lenders.

10.10.RIGHTS AS A LENDER.  In the event the Agent is a Lender, the Agent
shall have the same rights and powers hereunder and under any other Loan
Document  with  respect to its Term Loan Commitment, its Revolving  Loan
Commitment and its  Loans  as  any  Lender  and may exercise the same as
though it were not the Agent, and the term "Lender"  or "Lenders" shall,
at  any  time  when the Agent is a Lender, unless the context  otherwise
indicates, include  the Agent in its individual capacity.  The Agent and
its Affiliates may accept  deposits  from,  lend money to, and generally
engage  in  any  kind of trust, debt, equity or  other  transaction,  in
addition to those  contemplated  by  this  Agreement  or  any other Loan
Document,  with  the  Borrower  or any of its Subsidiaries in which  the
Borrower or such Subsidiary is not  restricted hereby from engaging with
any other Person.

10.11.LENDER CREDIT DECISION.  Each Lender  acknowledges  that  it  has,
independently  and  without reliance upon the Agent, the Arranger or any
other Lender and based  on  the  financial  statements  prepared  by the
Borrower  and  such  other  documents  and  information as it has deemed
appropriate, made its own credit analysis and  decision  to  enter  into
this   Agreement  and  the  other  Loan  Documents.   Each  Lender  also
acknowledges  that  it will, independently and without reliance upon the
Agent, the Arranger or  any other Lender and based on such documents and
information as it shall deem  appropriate  at the time, continue to make
its  own  credit  decisions in taking or not taking  action  under  this
Agreement and the other Loan Documents.

10.12.SUCCESSOR AGENT.   The  Agent  may  resign  at  any time by giving
written notice thereof to the Lenders and the Borrower, such resignation
to  be  effective upon the appointment of a successor Agent  or,  if  no
successor  Agent  has been appointed, forty-five days after the retiring
Agent gives notice of its intention to resign.  The Agent may be removed
at any time with or  without  cause  by  written  notice received by the
Agent  from the Required Lenders, such removal to be  effective  on  the
date specified  by  the  Required Lenders.  Upon any such resignation or
removal, the Required Lenders shall have the right to appoint, on behalf
of the Borrower and the Lenders,  a  successor  Agent.   If no successor
Agent shall have been so appointed by the Required Lenders within thirty
days  after  the  resigning  Agent's  giving notice of its intention  to
resign, then the resigning Agent may appoint,  on behalf of the Borrower
and  the  Lenders,  a  successor  Agent.  Notwithstanding  the  previous
sentence, the Agent may at any time  without the consent of the Borrower
or any Lender, appoint any of its Affiliates  which is a commercial bank
as  a  successor  Agent hereunder.  If the Agent has  resigned  or  been
removed and no successor  Agent  has  been  appointed,  the  Lenders may
perform  all  the  duties of the Agent hereunder and the Borrower  shall
make all payments in respect of the Obligations to the applicable Lender
and for all other purposes  shall  deal  directly  with the Lenders.  No
successor  Agent  shall be deemed to be appointed hereunder  until  such
successor Agent has  accepted the appointment.  Any such successor Agent
shall be a commercial  bank  having  capital and retained earnings of at
least $100,000,000.  Upon the acceptance  of  any  appointment  as Agent
hereunder  by  a  successor  Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and
duties of the resigning or removed Agent.  Upon the effectiveness of the
resignation or removal of the  Agent,  the  resigning  or  removed Agent
shall be discharged from its duties and obligations hereunder  and under
the  Loan  Documents.   After  the  effectiveness of the resignation  or
removal of an Agent, the provisions of  this Article X shall continue in
effect for the benefit of such Agent in respect  of any actions taken or
omitted to be taken by it while it was acting as the Agent hereunder and
under the other Loan Documents.

10.13.AGENT'S  FEE.  The Borrower agrees to pay to  the  Agent  and  the
Arranger, for their  own  accounts,  the fees agreed to by the Borrower,
the Agent and the Arranger pursuant to  that  certain  letter  agreement
dated October 6, 1999, or as otherwise agreed from time to time.

10.14.DELEGATION TO AFFILIATES.  The Borrower and the Lenders agree that
the Agent may delegate any of its duties under this Agreement to  any of
its  Affiliates.   Any  such  Affiliate (and such Affiliate's directors,
officers, agents and employees) which performs duties in connection with
this  Agreement  shall  be  entitled   to   the  same  benefits  of  the
indemnification, waiver and other protective  provisions  to  which  the
Agent is entitled under Articles IX and X.

10.15.EXECUTION OF COLLATERAL DOCUMENTS.  The Lenders hereby empower and
authorize  the  Agent  to  execute  and deliver to the Borrower on their
behalf the Collateral Documents and all related financing statements and
any financing statements, agreements,  documents or instruments as shall
be necessary or appropriate to effect the  purposes  of  the  Collateral
Documents.

10.16.COLLATERAL RELEASES.  The Lenders hereby empower and authorize the
Agent  to  execute  and  deliver  to  the  Borrower  on their behalf any
agreements,   documents   or  instruments  as  shall  be  necessary   or
appropriate  to  effect  any  releases  of  Collateral  which  shall  be
permitted by the terms hereof or  of  any  other  Loan Document or which
shall  otherwise  have  been approved by the Required  Lenders  (or,  if
required by the terms of Section 8.2, all of the Lenders) in writing.

                               ARTICLE XI

                        SETOFF; RATABLE PAYMENTS

11.1.SETOFF.  In addition  to,  and without limitation of, any rights of
the Lenders under applicable law,  if  the  Borrower  becomes insolvent,
however   evidenced,  or  any  Default  occurs,  any  and  all  deposits
(including  all  account  balances,  whether  provisional  or  final and
whether or not collected or available) and any other Indebtedness at any
time  held or owing by any Lender or any Affiliate of any Lender  to  or
for the  credit  or  account  of  the Borrower may be offset and applied
toward the payment of the Obligations  owing  to such Lender, whether or
not the Obligations, or any part hereof, shall then be due.

11.2.RATABLE PAYMENTS.  If any Lender, whether  by  setoff or otherwise,
has  payment  made  to  it upon its Loans (other than payments  received
pursuant to Section 3.1,  3.2,  3.4 or 3.5) in a greater proportion than
that received by any other Lender,  such  Lender  agrees,  promptly upon
demand, to purchase a portion of the Loans held by the other  Lenders so
that after such purchase each Lender will hold its ratable proportion of
Loans.   If  any  Lender,  whether  in connection with setoff or amounts
which might be subject to setoff or otherwise,  receives  collateral  or
other  protection  for  its  Obligations  or  such  amounts which may be
subject  to setoff, such Lender agrees, promptly upon  demand,  to  take
such action  necessary  such  that  all Lenders share in the benefits of
such collateral ratably in proportion  to their Loans.  In case any such
payment is disturbed by legal process, or otherwise, appropriate further
adjustments shall be made.

If an amount to be setoff is to be applied  to permitted Indebtedness of
the Borrower to a Lender other than Obligations  under  this  Agreement,
such amount shall be applied ratably to such other Indebtedness  and  to
the Obligations.

                              ARTICLE XII

           BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

12.1.SUCCESSORS  AND  ASSIGNS.   The  terms  and  provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrower
and the Lenders and their respective successors and assigns, except that
(i)  the  Borrower  shall  not have the right to assign  its  rights  or
obligations under the Loan Documents  and  (ii)  any  assignment  by any
Lender  must  be  made  in compliance with Section 12.3.  The parties to
this Agreement acknowledge that clause (ii) of this Section 12.1 relates
only to absolute assignments  and does not prohibit assignments creating
security  interests,  including,   without  limitation,  any  pledge  or
assignment by any Lender of all or any  portion of its rights under this
Agreement  and any Note to a Federal Reserve  Bank;  PROVIDED,  HOWEVER,
that no such  pledge  or  assignment  creating a security interest shall
release the transferor Lender from its  obligations hereunder unless and
until the parties thereto have complied with  the  provisions of Section
12.3.  The Agent may treat the Person which made any Loan or which holds
any Note as the owner thereof for all purposes hereof  unless  and until
such  Person  complies  with  Section 12.3; PROVIDED, HOWEVER, that  the
Agent  may in its discretion (but  shall  not  be  required  to)  follow
instructions from the Person which made any Loan or which holds any Note
to direct payments relating to such Loan or Note to another Person.  Any
assignee  of  the rights to any Loan or any Note agrees by acceptance of
such assignment  to be bound by all the terms and provisions of the Loan
Documents.  Any request,  authority or consent of any Person, who at the
time of making such request  or  giving such authority or consent is the
owner of the rights to any Loan (whether  or  not a Note has been issued
in evidence thereof), shall be conclusive and binding  on any subsequent
holder or assignee of the rights to such Loan.

12.2.PARTICIPATIONS

     12.2.1.  PERMITTED PARTICIPANTS; EFFECT.  Any Lender  may,  in  the
ordinary  course  of its business and in accordance with applicable law,
at any time sell to one or more banks or other entities ("Participants")
participating interests  in  any  Obligations  owing to such Lender, any
Note held by such Lender, any Revolving Loan Commitment  of  such Lender
or  any other interest of such Lender under the Loan Documents,  or  any
Letter  of  Credit issued by said Lender.  In the event of any such sale
by a Lender of  participating  interests to a Participant, such Lender's
obligations under the Loan Documents shall remain unchanged, such Lender
shall remain solely responsible  to  the  other  parties  hereto for the
performance of such obligations, such Lender shall remain the  owner  of
its  Loans  and  the holder of any Note issued to it in evidence thereof
for all purposes under  the  Loan  Documents, all amounts payable by the
Borrower under this Agreement shall  be determined as if such Lender had
not sold such participating interests,  and  the  Borrower and the Agent
shall  continue  to  deal  solely  and  directly  with  such  Lender  in
connection  with  such  Lender's rights and obligations under  the  Loan
Documents.

     12.2.2.  VOTING RIGHTS.  Each Lender shall retain the sole right to
approve,  without  the  consent   of  any  Participant,  any  amendment,
modification or waiver of any provision of the Loan Documents other than
any  amendment, modification or waiver  with  respect  to  any  Loan  or
Commitment  in  which  such  Participant  has an interest which forgives
principal, interest or fees or reduces the interest rate or fees payable
with respect to any such Loan or Commitment,  extends the Revolving Loan
Termination Date, postpones any date fixed for  any  regularly-scheduled
payment  of  principal  of,  or  interest or fees on, any such  Loan  or
Revolving Loan Commitment, releases  any  guarantor  of any such Loan or
releases  all  or a Substantial Portion all of the collateral,  if  any,
securing any such Loan.

     12.2.3.   BENEFIT   OF  SETOFF.   The  Borrower  agrees  that  each
Participant shall be deemed  to  have  the  right  of setoff provided in
Section 11.1 in respect of its participating interest  in  amounts owing
under  the  Loan  Documents to the same extent as if the amount  of  its
participating interest  were  owing directly to it as a Lender under the
Loan Documents, PROVIDED that each  Lender  shall  retain  the  right of
setoff   provided  in  Section  11.1  with  respect  to  the  amount  of
participating  interests sold to each Participant.  The Lenders agree to
share with each  Participant,  and  each  Participant, by exercising the
right  of setoff provided in Section 11.1, agrees  to  share  with  each
Lender,  any  amount  received  pursuant to the exercise of its right of
setoff, such amounts to be shared  in accordance with Section 11.2 as if
each Participant were a Lender.

     12.3. ASSIGNMENTS

     12.3.1.  PERMITTED ASSIGNMENTS.   Any  Lender  may, in the ordinary
course  of its business and in accordance with applicable  law,  at  any
time assign to one or more banks or other entities ("Purchasers") all or
any part  of  its rights and obligations under the Loan Documents.  Such
assignment shall  be  substantially  in the form of EXHIBIT B or in such
other form as may be agreed to by the  parties  thereto.  The consent of
the  Borrower  and the Agent shall be required prior  to  an  assignment
becoming effective  with respect to a Purchaser which is not a Lender or
an Affiliate thereof;  PROVIDED, HOWEVER, that if a Default has occurred
and is continuing, the consent  of  the  Borrower shall not be required.
Any required consent of the Borrower shall  not be unreasonably withheld
or delayed.  Each such assignment with respect  to  a Purchaser which is
not a Lender or an Affiliate thereof shall (unless each  of the Borrower
and  the  Agent  otherwise consents) be in an amount not less  than  the
lesser of (i) $5,000,000  or  (ii) the remaining amount of the assigning
Lender's Commitment (calculated  as  at  the date of such assignment) or
outstanding Loans (if the applicable Commitment  has  been  terminated).
Furthermore, the assigning Lender shall pay the Agent an assignment  fee
of $3,500 for each assignment.

     12.3.2.  EFFECT; EFFECTIVE DATE.  Upon (i) delivery to the Agent of
an  assignment,  together  with any consents required by Section 12.3.1,
and (ii) payment of a $3,500  fee  to  the  Agent  for  processing  such
assignment  (unless  such  fee  is waived by the Agent), such assignment
shall  become  effective  on  the  effective   date  specified  in  such
assignment.   The  assignment  shall  contain  a representation  by  the
Purchaser to the effect that none of the consideration  used to make the
purchase of the Revolving Loan Commitment and Loans under the applicable
assignment  agreement constitutes "plan assets" as defined  under  ERISA
and that the rights and interests of the Purchaser in and under the Loan
Documents will  not  be  "plan  assets"  under  ERISA.  On and after the
effective date of such assignment, such Purchaser shall for all purposes
be a Lender party to this Agreement and any other Loan Document executed
by  or  on  behalf  of  the Lenders and shall have all  the  rights  and
obligations of a Lender under  the Loan Documents, to the same extent as
if it were an original party hereto, and no further consent or action by
the Borrower, the Lenders or the  Agent shall be required to release the
transferor  Lender  with  respect to the  percentage  of  the  Aggregate
Revolving Loan Commitment and  Loans  assigned  to such Purchaser.  Upon
the  consummation  of  any assignment to a Purchaser  pursuant  to  this
Section 12.3.2, the transferor Lender, the Agent and the Borrower shall,
if the transferor Lender  or  the  Purchaser  desires  that its Loans be
evidenced by Notes, make appropriate arrangements so that  new Notes or,
as  appropriate, replacement Notes are issued to such transferor  Lender
and new  Notes or, as appropriate, replacement Notes, are issued to such
Purchaser, in each case in principal amounts reflecting their respective
Revolving Loan Commitments, as adjusted pursuant to such assignment.

     12.4.  DISSEMINATION  OF INFORMATION.  The Borrower authorizes each
Lender to disclose to any Participant  or  Purchaser or any other Person
acquiring an interest in the Loan Documents  by operation of law (each a
"Transferee") and any prospective Transferee any  and all information in
such Lender's possession concerning the creditworthiness of the Borrower
and  its  Subsidiaries,  including  without limitation  any  information
contained in any Reports; PROVIDED that  each Transferee and prospective
Transferee agrees to be bound by Section 9.11 of this Agreement.

     12.5.  TAX TREATMENT.  If any interest  in  any  Loan  Document  is
transferred to  any  Transferee which is organized under the laws of any
jurisdiction other than  the  United  States  or  any State thereof, the
transferor  Lender  shall cause such Transferee, concurrently  with  the
effectiveness of such transfer, to comply with the provisions of Section
3.5(iv).

                              ARTICLE XIII

                                NOTICES

     13.1. NOTICES.   Except as otherwise permitted by Section 2.14 with
respect  to  borrowing  notices,   all   notices,   requests  and  other
communications  to  any  party hereunder shall be in writing  (including
electronic transmission, facsimile  transmission or similar writing) and
shall be given to such party: (x) in  the  case  of  the Borrower or the
Agent,  at  UNIFAB  International, Inc., 500 Port Road, New  Iberia,  LA
70562, Facsimile (337)  373-5627  or  Bank  One,  Louisiana,  N.A.,  600
Jefferson  Street, Lafayette, LA 70521, Facsimile (337) 265-3248, (y) in
the case of  any  Lender,  at  its address or facsimile number set forth
below its signature hereto or (z)  in  the  case  of  any party, at such
other  address  or facsimile number as such party may hereafter  specify
for the purpose by  notice  to  the Agent and the Borrower in accordance
with the provisions of this Section  13.1.  Each such notice, request or
other  communication  shall  be effective  (i)  if  given  by  facsimile
transmission, when transmitted to the facsimile number specified in this
Section and confirmation of receipt  is received, (ii) if given by mail,
72 hours after such communication is deposited  in  the mails with first
class postage prepaid, addressed as aforesaid, or (iii)  if given by any
other means, when delivered (or, in the case of electronic transmission,
received)  at  the  address  specified  in  this Section; PROVIDED  that
notices  to  the  Agent under Article II shall not  be  effective  until
received.

     13.2. CHANGE OF  ADDRESS.   The  Borrower, the Agent and any Lender
may each change the address for service of notice upon it by a notice in
writing to the other parties hereto.

                              ARTICLE XIV

                              COUNTERPARTS

     14.1 COUNTERPARTS.  This Agreement may be executed in any number of
counterparts,  all  of  which  taken  together   shall   constitute  one
agreement, and any of the parties hereto may execute this  Agreement  by
signing any such counterpart.  This Agreement shall be effective when it
has  been  executed  by the Borrower, the Agent and the Lenders and each
party has notified the Agent by facsimile transmission or telephone that
it has taken such action.

                               ARTICLE XV

      CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     15.1.  CHOICE  OF  LAW.   THE  LOAN  DOCUMENTS  (OTHER  THAN  THOSE
CONTAINING  A  CONTRARY  EXPRESS  CHOICE  OF  LAW  PROVISION)  SHALL  BE
CONSTRUED IN ACCORDANCE WITH  THE  INTERNAL  LAWS (BUT OTHERWISE WITHOUT
REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF  THE  STATE  OF LOUISIANA,
BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     15.2.  CONSENT  TO  JURISDICTION.   THE BORROWER HEREBY IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION  OF  ANY UNITED STATES FEDERAL
OR LOUISIANA STATE COURT SITTING IN NEW ORLEANS, LOUISIANA IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO ANY  LOAN  DOCUMENTS AND THE
BORROWER  HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT  OF  SUCH
ACTION OR PROCEEDING  MAY  BE HEARD AND DETERMINED IN ANY SUCH COURT AND
IRREVOCABLY WAIVES ANY OBJECTION  IT MAY NOW OR HEREAFTER HAVE AS TO THE
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING  BROUGHT IN SUCH A COURT OR
THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING  HEREIN  SHALL  LIMIT
THE  RIGHT  OF  THE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE
BORROWER  IN  THE  COURTS  OF  ANY  OTHER  JURISDICTION.   ANY  JUDICIAL
PROCEEDING BY THE BORROWER  AGAINST  THE  AGENT  OR  ANY  LENDER  OR ANY
AFFILIATE  OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY,
ANY MATTER IN  ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY
LOAN  DOCUMENT SHALL  BE  BROUGHT  ONLY  IN  A  COURT  IN  NEW  ORLEANS,
LOUISIANA.

     15.3.  WAIVER  OF  JURY  TRIAL.   THE  BORROWER, THE AGENT AND EACH
LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL  PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING  IN  TORT, CONTRACT
OR  OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED  WITH
ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

     IN  WITNESS  WHEREOF,  the Borrower, the Lenders and the Agent have
executed this Agreement as of the date first above written.

BORROWER:                          UNIFAB INTERNATIONAL, INC.

                                   By: /S/   PETER J. ROMAN
                                      -------------------------------
                                      Name: Peter J. Roman
                                      Title:  Chief Financial Officer

AGENT:                             BANK ONE, LOUISIANA,
                                    NATIONAL ASSOCIATION, as Agent

                                   By: /S/ ROSE M. MILLER
                                      --------------------------------
                                      Name: Rose M. Miller
                                      Title: First Vice President

LENDERS:                           BANK ONE, LOUISIANA,
                                    NATIONAL ASSOCIATION

                                   By: /S/ ROSE M. MILLER
                                      --------------------------------
                                      Name: Rose M. Miller
                                      Title: First Vice President

                                   IBERIABANK

                                   By:  /S/ KEITH SHORT
                                      --------------------------------
                                      Name: Keith Short
                                      Title:   Senior Vice President

                                        REGIONS BANK

                                   By:   /S/ JEROME WEBER
                                      -----------------------------
                                      Name: Jerome Weber
                                      Title: Senior Vice President

                                   WHITNEY NATIONAL BANK

                                   By:  /S/ WILLIAM A. HENDRIX
                                      -----------------------------
                                      Name: William A. Hendrix
                                      Title:   Vice President

                               SCHEDULE I

                   COMMITMENT AMOUNTS OF THE LENDERS

<TABLE>
<CAPTION>
Name and Address of  Lender        Revolving       Pro
                              Loan           Rata
                                  Commitment
                                             Share
<S>                           <C>            <C>
Bank One, Louisiana, N.A.
600 Jefferson Street          $15,000,000    50.0%
Lafayette, LA 70501

Attention: Market Manager
Telephone: (318) 265-3216
Facsimile: (318) 265-3248
Regions Bank                      $3,750,000
800 South Lewis Street                       12.5%
New Iberia, LA 70560

Attention: Jerome Weber, SVP
Telephone: (318) 373-1203
Facsimile: (318) 373-1386
IberiaBank                        $3,750,000
2110 West Pinhook                            12.5%
Lafayette, LA 70508

Attention: Lafayette City
                 President
Telephone: (318) 268-4000
Facsimile: (318) 268-5190
Whitney National Bank             $7,500,000
91 Lee Avenue, 2nd Floor                   25.0%
Lafayette, LA 70501

Attention: William A. Hendrix
Telephone: (337) 593-6057
Facsimile:   (337) 593-6030
Aggregate Commitments
                              $30,000,000    100.00%
</TABLE>
                               SCHEDULE 2

                            PRICING SCHEDULE

<TABLE>
<CAPTION>
          APPLICABLE MARGIN (LOAN)            Level  Level  Level  Level
                                                I     II     III    IV
                                             Status Status Status Status
<S>                                          <C>    <C>    <C>    <C>
               Eurodollar Rate                2.00%  2.75%  3.50%  4.00%
                Floating Rate                 0.00%  0.75%  1.25%  1.50%
</TABLE>

<TABLE>
<CAPTION>
             APPLICABLE FEE RATE              Level  Level  Level  Level
                                                I     II     III    IV
                                             Status Status Status Status
<S>                                          <C>    <C>    <C>    <C>
               COMMITMENT FEE                 0.25%  0.30% 0.375%  0.50%
</TABLE>

<TABLE>
<CAPTION>
                 APPLICABLE                   Level  Level  Level  Level
          LETTER OF CREDIT FEE RATE             I     II     III    IV
                                             Status Status Status Status
<S>                                          <C>    <C>    <C>    <C>
       Financial Letter of Credit Fee Rate
                                              2.00%  2.75%  3.50%  4.00%
    Performance Letter of Credit Fee Rate     1.25%  2.00%  2.50%  2.75%
</TABLE>

     For the purposes of this Pricing Schedule, the following terms have
the  following  meanings, subject to the final paragraph of this Pricing
Schedule:

     "Financials"  means  the  annual,  quarterly  or  monthly financial
statements of the Borrower delivered pursuant to Section 6.1(i) or (ii).

     "Level I Status" exists at any date if, as of the last  day  of the
fiscal   quarter  of  the  Borrower  referred  to  in  the  most  recent
Financials, the Leverage Ratio is less than or equal to 2.00 to 1.00.

     "Level  II Status" exists at any date if, as of the last day of the
fiscal  quarter   of  the  Borrower  referred  to  in  the  most  recent
Financials, (i) the  Borrower  has  not qualified for Level I Status and
(ii) the Leverage Ratio is less than or equal to 3.00 to 1.00.

     "Level III Status" exists at any date if, as of the last day of the
fiscal  quarter  of  the  Borrower  referred   to  in  the  most  recent
Financials, (i) the Borrower has not qualified for  Level  I  Status  or
Level  II  Status  and  (ii) the Leverage Ratio is less than or equal to
4.00 to 1.00.

     "Level IV Status" exists  at  any  date  if  the  Borrower  has not
qualified for Level I Status, Level II Status or Level III Status.

     "Leverage Ratio" means, as of any date of calculation, the ratio of
(i) Funded Indebtedness outstanding on such date to (ii) EBITDA for  the
four  fiscal quarters ended on such date.  Notwithstanding the foregoing
(i) the  Leverage Ratio as of June 30, 2000 shall be based on EBITDA for
the one fiscal  quarter  ended  on  June  30,  2000 annualized; (ii) the
Leverage Ratio as of September 30, 2000 shall be based on EBITDA for the
two fiscal quarters ended on September 30, 2000  annualized;  and  (iii)
the Leverage Ratio as of December 31, 2000 shall be based on EBITDA  for
the three fiscal quarters ended on December 31, 2000 annualized.

     "Status"  means  either  Level I Status, Level II Status, Level III
Status or Level IV Status.

     The Applicable Margin, Applicable Fee Rate and Applicable Letter of
Credit Fee Rates shall be determined  in  accordance  with the foregoing
table  based  on  the  Borrower's Status as reflected in the  then  most
recent Financials.  Adjustments,  if  any,  to  the  Applicable  Margin,
Applicable  Fee Rate, or Applicable Letter of Credit Fee Rates shall  be
effective 5 Business  Days  after  the Agent has received the applicable
Financials,  except that the Applicable  Margin  on  a  Eurodollar  Rate
Advance shall  be  adjusted  after  the  last  day  of  the then current
Eurodollar  Interest  Period.   If  the  Borrower  fails to deliver  the
Financials to the Agent at the time required by Section  6.1,  then  the
Applicable  Margin,  Applicable Fee Rate and Applicable Letter of Credit
Fee Rates shall be the  highest  Applicable  Margin, Applicable Fee Rate
and Applicable Letter of Credit Fee Rates set  forth  in  the  foregoing
table until 5 days after such Financials are so delivered.

                               SCHEDULE 3

                    LIST OF BORROWER'S SUBSIDIARIES

<TABLE>
<CAPTION>
  SUBSIDIARY                            JURISDICTION OF   ORGANIZATION    OWNED          PERCENT
  NAME                                    ORGANIZATION        TYPE         BY           OWNERSHIP
-------------------------------------------------------------------------------------------------
<S>                                        <C>            <C>          <C>              <C>
Universal Fabricators L.L.C.                LA                LLC       Borrower         100%

UNIFAB International West, LLC              LA                LLC       Borrower         100%

Allen Process Systems, L.L.C.               LA                LLC       Borrower         100%

Oil Barges, Inc.                            LA               Corp.      Borrower         100%

Latoka U.S.A. Inc.                          LA               Corp.      Borrower         100%

Superior Derrick Services of Texas, L.L.C.  TX                LLC     Oil Barges, Inc.   100%

Allen Process Systems Limited               UK               Corp.    Latoka U.S.A. Inc. 100%

</TABLE>

                               SCHEDULE 4

              ELIGIBLE ACCOUNTS AND ELIGIBLE FIXED ASSETS

                         I.  ELIGIBLE ACCOUNTS

     Based  on  the most recent Borrowing Base Certificate delivered  to
the Agent and on  other  information  available  to the Agent, the Agent
shall  in  its reasonable credit judgment determine  which  Accounts  of
Borrowers shall  be  "ELIGIBLE ACCOUNTS" for purposes of this Agreement.
"ACCOUNTS" means all amounts owed to the Borrower or its Subsidiaries on
account of sales, leases or rentals of equipment or services rendered in
the ordinary course of  the Borrower's trade or business, net of (i) any
reserve for bad debts, and  (ii) unearned interest, discounts or finance
charges.  In determining whether  a  particular  Account  constitutes an
Eligible Account, the Agent shall not include any such Account  to which
any  of  the  exclusionary  criteria set forth below applies.  The Agent
reserves the right, at any time  and from time to time after the Closing
Date, to adjust any such criteria,  to  establish  new  criteria  and to
adjust   advance  rates  with  respect  to  Eligible  Accounts,  in  its
reasonable  credit  judgment,  subject  to  the approval of the Required
Lenders in the case of adjustments or new criteria or changes in advance
rates which have the effect of making more credit  available.   Eligible
Accounts  shall  not  include  any  Account  of  the  Borrower  and  its
Subsidiaries:

     (a)  which does not arise from the sale of goods, leasing of assets
or  property  or  the  performance  of  services  by the Borrower or its
Subsidiaries in the ordinary course of its business;

     (b)  upon which (i) the Borrower's and its Subsidiaries'  right  to
receive  payment  is  not  absolute,  is not then due and payable, or is
contingent upon the fulfillment of any  condition whatsoever or (ii) the
Borrower or its Subsidiaries are not able  to  bring  suit  or otherwise
enforce  its  remedies  against  the  Account  Debtor  through  judicial
process;

     (c)  that  is  not  a  true  and  correct  statement  of  bona fide
indebtedness incurred in the amount of the Account for merchandise  sold
or assets or property leased to or services rendered and accepted by the
applicable Account Debtor;

     (d)  with  respect  to  which an invoice or other notice of amounts
owing has not been sent to the applicable Account Debtor;

     (e)  that (i) is not owned  by  the Borrower or its Subsidiaries or
(ii)  is  subject  to  any rights, claim,  security  interest  or  other
interest of any other Person, other than Liens in favor of the Agent, on
behalf of itself and Lenders;

     (f)  that arises from  a  sale  to  any  director,  officer,  other
employee or affiliate of the Borrower;

     (g)  that is the obligation of an Account Debtor that is the United
States  government  or  a political subdivision thereof, or any state or
municipality or department, agency or instrumentality thereof unless the
Agent, in its sole discretion, has agreed to the contrary in writing and
the  Borrower  or  its Subsidiaries,  if  necessary  or  desirable,  has
complied with the Federal  Assignment  of  Claims  Act  of 1940, and any
amendments  thereto,  or  any  applicable  state  statute  or  municipal
ordinance   of   similar  purpose  and  effect,  with  respect  to  such
obligation;

     (h)  that is  the  obligation  of  an  Account  Debtor located in a
foreign country, unless payment thereof is assured by a letter of credit
or insurance satisfactory to the Agent as to form, amount and issuer;

     (i)  to the extent the Borrower or its Subsidiaries  is  liable for
goods sold or services rendered by the applicable Account Debtor  to the
Borrower  or  its  Subsidiaries, but only to the extent of the potential
offset;

     (j)  that arises  with  respect  to  goods which are delivered on a
bill-and-hold,   cash-on-delivery  basis  or  placed   on   consignment,
guaranteed sale or  other  terms  by  reason of which the payment by the
Account Debtor is or may be conditional;

     (k)  that  is  in default; PROVIDED,  THAT,  without  limiting  the
generality of the foregoing,  an Account shall be deemed in default upon
the occurrence of any of the following:

          (i)  it is not paid within  the  earlier  of: ninety (90) days
following its original invoice date in the case of Account Debtors other
than major oil and gas companies (defined as companies  integrate  to  a
substantial   degree,   that   is,   engaged  in  production,  refining,
transportation and marketing of oil and  gas)  and  one  hundred  twenty
(120)  days  following  its original invoice date in the case of Account
Debtors that are major oil companies;

          (ii) if  any  Account   Debtor  obligated  upon  such  Account
suspends  business,  makes  a general  assignment  for  the  benefit  of
creditors or fails to pay its debts generally as they come due; or

          (iii) if any petition  is  filed  by  or  against  any Account
Debtor obligated upon such Account under any bankruptcy law or any other
federal,  state  or  foreign  (including  any  provincial) receivership,
insolvency relief or other law or laws for the relief of debtors;

     (l)  which is the obligation of an Account  Debtor  that  is  not a
major  oil  and  gas  company if ten percent (10%) or more of the dollar
amount of all Accounts owing by that Account Debtor are ineligible under
the other criteria set forth in this SCHEDULE 4.

     (m)  which is the  obligation  of an Account Debtor that is a major
oil and gas company if twenty percent (20%) or more of the dollar amount
of all Accounts owing by that Account  Debtor  are  ineligible under the
other criteria set forth in this SCHEDULE 4.

     (n)  as  to  which the Agent's interest, on behalf  of  itself  and
Lenders, therein is not a first priority perfected security interest;

     (o)  as  to  which   any   of  the  representations  or  warranties
pertaining to Accounts set forth  in  this  Agreement  or the Collateral
Documents is untrue;

     (p)  to  the  extent  such  Account  is  evidenced  by  a judgment,
instrument or chattel paper;

     (q)  which  is  payable  in  any  currency other than United States
Dollars; or

     (r)  which is unacceptable to the Agent  in  its  reasonable credit
judgment.

For  the  purposes  hereof,  "Account Debtor" means any Person  who  may
become obligated to the Borrower or its Subsidiaries under, with respect
to, or on account of, an Account.

                       II.  ELIGIBLE FIXED ASSETS

     Based on the most recent  Borrowing  Base  Certificate delivered to
the  Agent  and  on appraisals and other information  available  to  the
Agent, the Agent shall in its reasonable credit judgment determine which
Fixed Assets of Borrowers  shall be "ELIGIBLE FIXED ASSETS" for purposes
of this Agreement.  "FIXED ASSETS" means the appraised fair market value
of all real estate owned by  the  Borrower and its Subsidiaries, and the
appraised orderly liquidation value  of  equipment owned by the Borrower
and its Subsidiaries.  In determining whether a particular type of fixed
asset constitutes Eligible Fixed Assets, the Agent shall not include any
such  fixed asset to which any of the exclusionary  criteria  set  forth
below applies.   The Agent reserves the right, at any time and from time
to  time after the  Closing  Date,  to  adjust  any  such  criteria,  to
establish  new  criteria  and  to  adjust  advance rates with respect to
Eligible Fixed Assets, in its reasonable credit judgment, subject to the
approval  of  the Required Lenders in the case  of  adjustments  or  new
criteria or changes  in  advance  rates  which have the effect of making
more  credit available.  Eligible Fixed Assets  shall  not  include  any
fixed asset of the Borrower and its Subsidiaries:

     (a)  that is not subject to a perfected Lien in favor the Agent and
Lenders;

     (b)  that is located outside of the United States of America; and

     (c)  that  is obsolete or worn beyond normal wear and tear in light
          of the intended uses of such equipment.

<PAGE>

                                  SCHEDULE 5
                          RESPONSES TO PHASE I STUDY

<TABLE>
<CAPTION>
<S>             <C>             <C>             <C>                             <C>
Photo           Location        Finding         Solution                        Timing
-----------------------------------------------------------------------------------------------
Wastewater
----------
1&2             Mechanic        Hand sink       Connect hand                    December
                Shop            discharges to   sink drain to
                                storm water     sewerage system
                                drain
Spill
Control
Program
----------
none            Diesel          Containment     Install containment             60-90 days
                Storage         pan is          pan of appropriate
                Tank            insufficient    specifications
                                for 4,500 gal
                                fuel tank

none            Paint           Secondary       Organize stored containers and   60-90 days
                Storage         containment     provide secondary containment
                Warehouse       is not          pans in compliance with
                                provided        SPCC and SPC requirements

4&5             Paint           Significant     This build up was from           Complete
                Storage         waste           a specific job and has since
                Warehouse --    storage         been disposed of
                exterior        outside
                                designated
                                area

6, 7&8          Mechanic        Storage of      Organize stored containers       60-90 days
                Shop            oil drums and   under roof and provide secondary
                                containers      containment pans in compliance
                                outside         with SPCC and SPC requirements
                                containment
                                area

10              Mechanic        Storage of      a) Replace covers and  monitor   a) Complete
                Shop            grease in       on a daily basis;                b) 30-60 days
                                uncovered       b) determine whether
                                containers      covered storage area is
                                                available, provide cover
                                                to this area if needed

None            SPCC /          General         Review contingency               30-60 days
                SPC Plan        Comment         plan to assure
                General                         compliance with SPCC
                Comment                         and SPC requirements

Solid
Waste
Management
----------
15&16           Main Fab        Oil spill       General cleanup and              30-60 days
                Shop,           cleanup         maintenance procedure
                Mechanic        materials       is being developed
                Shop            should be
                                containerized
                                for off site
                                recycling or
                                disposal

2, 4, 5, 9      Various         Contaminated    Addressed above                  60-90 days
&10             locations       storm water
                                generated by
                                rainfall into
                                uncovered
                                secondary
                                containment
                                areas

3, 6, 7,        Various         Sealed,         Inventory and mark all drums     60-90 days
8,              locations       unmarked        on facility
9, 15                           drums

18&19           Blasting        Spills and      a) General cleanup               a) 60-90 days
                Area            contaminated    and maintenance                  b) 30-60 days
                Mechanic        soils           procedure is being
                Shop                            developed
                                                b) Spent blasting sand
                                                disposal procedure
                                                has been initiated

None            Various         General Trash   General cleanup and maintenance  60-90 days
                locations       on site         procedure is being developed

</TABLE>

<PAGE>
                               EXHIBIT A

                         COMPLIANCE CERTIFICATE

To:  The Lenders parties to the

     Credit Agreement Described Below

     This Compliance  Certificate  is furnished pursuant to that certain
Amended and Restated Credit Agreement dated as of September 30, 2000 (as
amended, modified, renewed or extended  from  time  to time, the "Credit
Agreement") among UNIFAB International, Inc. (the "Borrower"), Bank One,
Louisiana,  National  Association,  as  Agent,  and  the  Lenders  party
thereto.   Unless  otherwise defined herein, capitalized terms  used  in
this Compliance Certificate  have  the  meanings  defined  in the Credit
Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

     1.  I am the duly elected                       of the Borrower;

     2.   I have reviewed the terms of the Credit Agreement and  I  have
made, or have  caused to be made under my supervision, a detailed review
of the transactions  and  conditions  of  the  Borrower  and each of its
Subsidiaries  during  the  accounting  period  covered  by  the attached
financial statements;

     3.  The examinations described in paragraph 2 did not disclose, and
I  have  no knowledge of, the existence of any condition or event  which
constitutes  a  Default or Unmatured Default during or at the end of the
accounting period  covered by the attached financial statements or as of
the date of this Certificate, except as set forth below; and

     4.  SCHEDULE I  attached  hereto  sets  forth  financial  data  and
computations evidencing the Borrower's compliance with certain covenants
of  the  Credit  Agreement, all of which data and computations are true,
complete and correct.

     5. SCHEDULE I,  ITEM  B  hereto sets forth the determination of the
Applicable Margin, Applicable Fee  Rate  and Applicable Letter of Credit
Fee Rates, commencing on the fifth Business  Day  following the delivery
hereof.

     Described  below  are  the exceptions, if any, to  Paragraph  3  by
listing, in detail, the nature  of  the  condition  or event, the period
during which it has existed and the action which the Borrower has taken,
is  taking, or proposes to take with respect to each such  condition  or
event:

__________________________________________________________________________

____________________________________________________________________________

__________________________________________________________________________
__________________________________________________________________________

__________________________________________________________________________

     The  foregoing  certifications,  together with the computations set
forth in SCHEDULE I hereto and the financial  statements  delivered with
this Certificate in support hereof, are made and delivered this      day
of               ,        .

<PAGE>
                  SCHEDULE I TO COMPLIANCE CERTIFICATE

                     BORROWER'S FINANCIAL COVENANTS

                          (AS OF ____________)

A.   FUNDED INDEBTEDNESS TO TANGIBLE NET WORTH RATIO

          Funded Indebtedness                          $____________

          Tangible Net Worth                      $____________

          Ratio (actual)                               _____ to 1.00

          Ratio (required)                        _____ to 1.00

B.   FUNDED INDEBTEDNESS TO EBITDA RATIO

          Funded Indebtedness                          $____________

          Net Income               $____________

               Plus Interest Expense   ____________

               Plus Taxes                 ____________

               Plus Depreciation and

               Amortization         _____________

               EBITDA                             $____________

          Ratio (actual)                               _____ to 1.00

          Ratio (required)                        _____ to 1.00

C.   FIXED CHARGE COVERAGE RATIO

          EBITDA (see B above)     $____________

               Plus Capitalized Lease Expenses   ____________

               Plus Rental Expenses   ____________

               Minus Income Taxes (cash)   ____________

               Minus Dividends (cash)   ____________

               Minus Capitalized Expenses

                 (maintenance; $250,000

                 minimum)           ____________

              Adjusted Cash Flow                  $____________

          Capitalized Lease Expenses    $____________

               Plus Rental Expenses   ____________

               Plus Interest Expense   ____________

               Plus Scheduled Principal

                 Payments on Funded

                 Indebtedness       ____________

               Total Fixed Charges                $____________

          Ratio (actual)                               _____ to 1.00

          Ratio (required)                        _____ to 1.00

D.   MINIMUM CURRENT RATIO

          Current Assets                          $____________

          Current Liabilities                      _____________

          Ratio (actual)                                _____ to 1.00

          Ratio (required)                         _____ to 1.00

                               EXHIBIT B

                          ASSIGNMENT AGREEMENT

     This  Assignment  Agreement  (this "Assignment Agreement")  between
(the "Assignor") and                                                (the
"Assignee") is dated as of    , 19 .    The   parties  hereto  agree  as
follows:

     1.  PRELIMINARY STATEMENT.  The Assignor is  a  party  to  a Credit
Agreement  (which,  as  it may be amended, modified, renewed or extended
from time to time is herein  called the "Credit Agreement") described in
Item 1 of SCHEDULE 1 attached  hereto ("Schedule 1").  Capitalized terms
used herein and not otherwise defined  herein  shall  have  the meanings
attributed to them in the Credit Agreement.

     2.   ASSIGNMENT  AND  ASSUMPTION.   The  Assignor hereby sells  and
assigns to the Assignee, and the Assignee hereby  purchases  and assumes
from  the  Assignor,  an  interest  in and to the Assignor's rights  and
obligations under the Credit Agreement  and  the  other  Loan Documents,
such that after giving effect to such assignment the Assignee shall have
purchased pursuant to this Assignment Agreement the percentage  interest
specified  in  Item  3  of  Schedule  1  of  all  outstanding rights and
obligations  under  the  Credit Agreement and the other  Loan  Documents
relating  to the facilities  listed  in  Item  3  of  SCHEDULE  1.   The
aggregate Commitment  (or  Loans,  if the applicable Commitment has been
terminated) purchased by the Assignee  hereunder  is set forth in Item 4
of SCHEDULE 1.

     3.   EFFECTIVE  DATE.   The  effective  date  of  this   Assignment
Agreement  (the  "Effective  Date")  shall  be  the  later  of  the date
specified  in Item 5 of SCHEDULE 1 or two Business Days (or such shorter
period agreed to by the Agent) after this Assignment Agreement, together
with any consents  required under the Credit Agreement, are delivered to
the Agent. In no event  will  the  Effective  Date occur if the payments
required  to be made by the Assignee to the Assignor  on  the  Effective
Date are not made on the proposed Effective Date.

     4.   PAYMENT  OBLIGATIONS.   In  consideration  for  the  sale  and
assignment  of  Loans hereunder, the Assignee shall pay the Assignor, on
the Effective Date,  the  amount  agreed  to  by  the  Assignor  and the
Assignee.   On  and  after  the  Effective  Date,  the Assignee shall be
entitled  to receive from the Agent all payments of principal,  interest
and fees with  respect  to  the  interest assigned hereby.  The Assignee
will promptly remit to the Assignor  any  interest  on  Loans  and  fees
received from the Agent which relate to the portion of the Commitment or
Loans  assigned  to  the  Assignee  hereunder  for  periods prior to the
Effective Date and not previously paid by the Assignee  to the Assignor.
In the event that either party hereto receives any payment  to which the
other party hereto is entitled under this Assignment Agreement, then the
party  receiving such amount shall promptly remit it to the other  party
hereto.

     5.   RECORDATION  FEE.  The Assignor and Assignee each agree to pay
one-half of the recordation  fee  required  to  be  paid to the Agent in
connection with this Assignment Agreement unless otherwise  specified in
Item 6 of SCHEDULE 1.

     6.  REPRESENTATIONS OF THE ASSIGNOR; LIMITATIONS ON THE  ASSIGNOR'S
LIABILITY.   The  Assignor  represents  and warrants that (i) it is  the
legal  and  beneficial  owner  of  the interest  being  assigned  by  it
hereunder, (ii) such interest is free  and  clear  of  any adverse claim
created  by  the Assignor and (iii) the execution and delivery  of  this
Assignment  Agreement  by  the  Assignor  is  duly  authorized.   It  is
understood and  agreed  that the assignment and assumption hereunder are
made without recourse to  the  Assignor  and  that the Assignor makes no
other representation or warranty of any kind to  the  Assignee.  Neither
the  Assignor nor any of its officers, directors, employees,  agents  or
attorneys  shall  be  responsible  for  (i) the due execution, legality,
validity, enforceability, genuineness, sufficiency  or collectability of
any Loan Document, including without limitation, documents  granting the
Assignor  and  the  other Lenders a security interest in assets  of  the
Borrower  or  any  guarantor,   (ii)  any  representation,  warranty  or
statement made in or in connection with any of the Loan Documents, (iii)
the  financial condition or creditworthiness  of  the  Borrower  or  any
guarantor,  (iv)  the performance of or compliance with any of the terms
or provisions of any  of  the  Loan Documents, (v) inspecting any of the
property,  books  or  records  of  the   Borrower,  (vi)  the  validity,
enforceability, perfection, priority, condition, value or sufficiency of
any collateral securing or purporting to secure  the  Loans or (vii) any
mistake, error of judgment, or action taken or omitted  to  be  taken in
connection with the Loans or the Loan Documents.

     7.  REPRESENTATIONS AND UNDERTAKINGS OF THE ASSIGNEE.  The Assignee
(i)  confirms  that  it  has  received  a  copy of the Credit Agreement,
together  with  copies  of  the financial statements  requested  by  the
Assignee and such other documents  and  information  as  it  has  deemed
appropriate  to  make its own credit analysis and decision to enter into
this Assignment Agreement,  (ii)  agrees that it will, independently and
without reliance upon the Agent, the  Assignor  or  any other Lender and
based on such documents and information at it shall deem  appropriate at
the  time,  continue to make its own credit decisions in taking  or  not
taking action  under  the  Loan Documents, (iii) appoints and authorizes
the Agent to take such action  as  agent  on  its behalf and to exercise
such powers under the Loan Documents as are delegated  to  the  Agent by
the   terms  thereof,  together  with  such  powers  as  are  reasonably
incidental  thereto,  (iv)  confirms  that the execution and delivery of
this Assignment Agreement by the Assignee is duly authorized, (v) agrees
that  it  will  perform  in  accordance with  their  terms  all  of  the
obligations which by the terms  of the Loan Documents are required to be
performed by it as a Lender, (vi)  agrees  that its payment instructions
and notice instructions are as set forth in  the  attachment to SCHEDULE
1,  (vii)  confirms  that  none  of the funds, monies, assets  or  other
consideration being used to make the  purchase  and assumption hereunder
are "plan assets" as defined under ERISA and that  its  rights, benefits
and interests in and under the Loan Documents will not be  "plan assets"
under  ERISA, (viii) agrees to indemnify and hold the Assignor  harmless
against  all  losses, costs and expenses (including, without limitation,
reasonable attorneys'  fees) and liabilities incurred by the Assignor in
connection  with  or  arising   in   any   manner  from  the  Assignee's
non-performance  of  the  obligations  assumed  under   this  Assignment
Agreement, and (ix) if applicable, attaches the forms prescribed  by the
Internal  Revenue  Service  of  the  United  States  certifying that the
Assignee  is  entitled  to  receive  payments  under the Loan  Documents
without  deduction  or withholding of any United States  federal  income
taxes.

     8.  GOVERNING LAW.   This Assignment Agreement shall be governed by
the  internal  law, and not the  law  of  conflicts,  of  the  State  of
Louisiana.

     9.   NOTICES.    Notices  shall  be  given  under  this  Assignment
Agreement in the manner  set  forth  in  the  Credit Agreement.  For the
purpose hereof, the addresses of the parties hereto  (until  notice of a
change is delivered) shall be the address set forth in the attachment to
SCHEDULE 1.

     10. COUNTERPARTS; DELIVERY BY FACSIMILE.  This Assignment Agreement
may  be  executed  in  counterparts.   Transmission  by facsimile of  an
executed  counterpart of this Assignment Agreement shall  be  deemed  to
constitute  due  and  sufficient  delivery  of such counterpart and such
facsimile  shall  be  deemed  to  be  an  original counterpart  of  this
Assignment Agreement.

     IN WITNESS WHEREOF, the duly authorized  officers  of  the  parties
hereto  have executed this Assignment Agreement by executing SCHEDULE  1
hereto as of the date first above written.

                               SCHEDULE 1

                        TO ASSIGNMENT AGREEMENT

1.   Description  and  Date  of  Amended  and Restated Credit Agreement:
     Credit  Agreement  dated  as of September  30,  2000  among  UNIFAB
     International, Inc., Bank One,  Louisiana, National Association, as
     Agent, and the Lenders party thereto.

2.   Date of Assignment Agreement:               , _________

3.   Amounts Outstanding (As of Date of Item 2 above):

                              Term Loan      Revolving Loan
                              FACILITY       FACILITY

     a.   Assignee's percentage
          of each Facility purchased
          under the Assignment
          Agreement                 %         %

     b.   Amount of each Facility
          purchased under the
          Assignment Agreement $  $

4.   Assignee's Revolving
     Loan Commitment purchased
      hereunder:               $

5.   Proposed Effective Date:

6.   Non-standard Recordation Fee
     Arrangement

ACCEPTED AND CONSENTED TO/BY       ACCEPTED AND CONSENTED TO/BY

UNIFAB INTERNATIONAL, INC.,        BANK ONE, LOUISIANA, NATIONAL
                                   ASSOCIATION

By:                                By:
     Name:                                   Name:
     Title:                             Title:

            ATTACHMENT TO SCHEDULE 1 TO ASSIGNMENT AGREEMENT

                    ADMINISTRATIVE INFORMATION SHEET

     Attach Assignor's Administrative Information Sheet, which must

       include notice addresses for the Assignor and the Assignee

                       (Sample form shown below)

ASSIGNOR INFORMATION

CONTACT:

Name:                                   Telephone No.:

Fax No.:

PAYMENT INFORMATION:

Name & ABA # of Destination Bank:

Account Name & Number for Wire Transfer:

Other Instructions:

ADDRESS FOR NOTICES FOR ASSIGNOR:

ASSIGNEE INFORMATION

CREDIT CONTACT:

Name:                                   Telephone No.:

Fax No.:

KEY OPERATIONS CONTACTS:

Booking Installation:                   Booking Installation:

Name:                                   Name:

Telephone No.:                     Telephone No.:

Fax No.:                           Fax No.:

PAYMENT INFORMATION:

Name & ABA # of Destination Bank:

Account Name & Number for Wire Transfer:

Other Instructions:

ADDRESS FOR NOTICES FOR ASSIGNEE:

AGENT INFORMATION

Assignee will be called promptly upon receipt of the signed agreement.

INITIAL FUNDING CONTACT:           SUBSEQUENT OPERATIONS CONTACT:

Name:                                   Name:

Telephone No.:                     Telephone No.:

Fax No.:                                               Fax          No.:

INITIAL FUNDING STANDARDS:

Cibor - Fund 2 days after rates are set.

AGENT WIRE INSTRUCTIONS:

ADDRESS FOR NOTICES FOR AGENt:

<PAGE>
                               EXHIBIT C

                       BORROWING BASE CERTIFICATE

FAX TO BANK ONE - COMMERCIAL CLIENT SUPPORT: (337) 265-3516 TODAY'S DATE
_____________

<TABLE>
<CAPTION>
(000's)                         FABRICATORS ALLEN PROCESS, LLC    OBI  ALLEN PROCESSING, LTD    UNIFAB WEST
                                ----------- ------------------    ---  ---------------------    -----------
<S>                             <C>         <C>                  <C>   <C>                      <C>
Total A/R                                $0                $0      $0                     $0             $0
Less over 120 days for Majors            $0                $0      $0                     $0             $0
Less over 90 days for all                $0                $0      $0                     $0             $0
others                                   $0                $0      $0                     $0             $0
Less Sold/Current of 20% for             $0                $0      $0                     $0             $0
Majors                                   $0                $0      $0                     $0             $0
Less Sold/Current of 10% for             $0                $0      $0                     $0             $0
all others                               $0                $0      $0                     $0             $0
Less Inter-Company                       $0                $0      $0                     $0             $0
Less Contra Accts *                      $0                $0      $0                     $0             $0
                                ----------- ------------------    ---  ---------------------    -----------
Total Eligible A/R                       $0                $0      $0                     $0             $0

Total Consolidated, Eligible A/R                              $0
Advance Rate                                                 80%
A/R Borrowing Base                                            $0

A/V of Real Estate (excl Lk Charles)                     $15,321 (Lewis Derbes, MAI on May 15, 2000)
A/V of Lake Charles Real Estate                           $5,175 (Russ Wilson, MAI on September 22, 2000)
OLV of equipment                                          $8,539 (Revpro, March 9-15, 2000)

Sub Total                                                $29,035

Advance Rate                                                 50%

Fixed Assets Borrowing Base                              $14,518

(Subject to the $15MM SUB-LIMIT)                         $15,000

TOTAL CURRENT BORROWING BASE                             $14,518

Less tranches o/s on the line                                 $0

Less Financial L/C issued (@ 100%)                            $0
Less Performance L/C's issued (@25%)                          $0

Total Available (deficit) to draw based on the proposed
   borrowing base                                        $14,518

Amount of today's draw request                                $0

Available after today's draw                             $14,518

</TABLE>

*   I  certify  that  the  above  borrowing base certificate is true and
correct to the best of my knowledge, and that the attached accounts
receivable  aging  is  a  true  and  valid  representation  of
receivables at ______________________.  I further certify that currently
there  are  no  contra  accounts,  and I understand  that  each  foreign
receivable that is included in the above borrowing base  will  be  backed
by  either a letter  of  credit  or  appropriate insurance, copies of
which have been sent to the bank.  Finally, this collateral is pledged to
the Bank One in Lafayette, LA.

Sincerely Yours,

_______________________________________

Pete Roman, CFO, Unifab International, Inc.EXHIBIT 4.4

                                  EXALINK LTD.
                     THE ISRAELI EMPLOYEE STOCK OPTION PLAN

1.       NAME
This Plan, as amended from time to time, shall be known as the EXALINK LTD.
Israeli Employee Stock Option Plan (the "ISOP").

2.       PURPOSE OF THE ISOP
The ISOP is intended as an incentive to retain, in the employ of EXALINK LTD.
(the "COMPANY") and its Subsidiaries, persons of training, experience, and
ability, to attract new employees directors, consultants and service providers,
whose services are considered valuable, to encourage the sense of proprietorship
of such persons, and to stimulate the active interest of such persons in the
development and financial success of the Company by providing them with
opportunities to purchase Shares in the Company, pursuant to the ISOP approved
by the board of directors of the company (the "BOARD"). Options granted under
the ISOP may or may not contain such terms as will qualify such Options for the
special tax treatment under section 102 of the Israeli Tax Ordinance ("SECTION
102").

Options containing such terms as will qualify them for the special tax treatment
under section 102 of the Israeli Tax Ordinance, shall be referred to herein as
"102 OPTIONS".

Options that do not contain such terms as will qualify them for the special tax
treatment under section 102 of the Israeli Tax Ordinance, shall be referred to
herein as "3(I) OPTIONS".

All Options granted hereunder, whether together or separately, shall be
hereinafter referred to as "OPTIONS".

The term "SUBSIDIARY" shall mean for the purposes of the ISOP: any company
(other than the Company) in an unbroken chain of companies beginning with the
Company if, at the time of granting an option, each of the companies other than
the last company in the unbroken chain owns shares possessing fifty percent
(50%) or more of the total combined voting power of all classes of shares in one
of the other companies in such chains.

<PAGE>

3.       ADMINISTRATION OF THE ISOP
The Board or a committee appointed and maintained by the Board for such purpose
(the "COMMITTEE") shall have the power to administer the ISOP. Notwithstanding
the above, the Board shall automatically have a residual authority if no
Committee shall be constituted or if such Committee shall cease to operate for
any reason whatsoever.

The Committee shall consist of such number of members (not less than two (2) in
number) as may be fixed by the Board. The Committee shall select one of its
members as its chairman (the "CHAIRMAN") and shall hold its meetings at such
times and places as the Chairman shall determine. The Committee shall keep
records of its meetings and shall make such rules and regulations for the
conduct of its business as it shall deem advisable.

Any member of such Committee shall be eligible to receive Options under the ISOP
while serving on the Committee, unless otherwise specified herein.

The Committee shall recommend the Board and the board shall have full power and
authority regarding:

3.1      The participants.

         3.1.1    The terms and provisions of respective Option agreements
                  (which need not be identical) including, but not limited to,
                  the number of shares in the Company to be covered by each
                  Option, provisions concerning the time or times when and the
                  extent to which the Options may be exercised and the nature
                  and duration of restrictions as to transferability or
                  restrictions constituting substantial risk of forfeiture.

         3.1.2    Acceleration of the right of an Optionee to exercise, in whole
                  or in part, any previously granted Option.

                  The Committee shall have full power and authority to:

         3.1.3    To designate Options as 102 Options or 3(i) options.

         3.1.4    Interpret the provisions and supervise the administration of
                  the ISOP;

         3.1.5    Determine the Fair Market Value (as defined below) of the
                  Shares (as defined below).

         3.1.6    Determine any other matter that is necessary or desirable for,
                  or incidental to administration of the ISOP.

Notwithstanding the above, the identity of each of the Optionees and the number
of Shares covered by each Option must be ratified by the Board.

                                       14
<PAGE>

The Board shall have the authority to grant, in its discretion, to the holder of
an outstanding Option, in exchange for the surrender and cancellation of such
Option, a new Option having a purchase price equal to, lower than or higher than
the Purchase Price provided in the Option so surrendered and canceled, and
containing such other terms and conditions as the Committee may prescribe in
accordance with the provisions of the ISOP.

All decisions and selections made by the Board or the Committee pursuant to the
provisions of the ISOP shall be made by a majority of its members except that no
member of the Board or the Committee shall vote on, or be counted for quorum
purposes, with respect to any proposed action of the Board or the Committee
relating to any Option to be granted to that member. Any decision reduced to
writing and signed by a majority of the members who are authorized to make such
decision shall be fully effective as if it had been made by a majority at a
meeting duly held.

The interpretation and construction by the Committee of any provision of the
ISOP or of any Option thereunder shall be final and conclusive unless otherwise
determined by the Board. Subject to the company's decision and to all approvals
legally required, including, but not limited to the provisions of the Israeli
Companies Law each member of the Board or the Committee shall be indemnified and
held harmless by the Company against any cost or expense (including counsel
fees) reasonably incurred by him, or any liability (including any sum paid in
settlement of a claim with the approval of the Company) arising out of any act
or omission to act in connection with the ISOP unless arising out of such
member's own fraud or bad faith, to the extent permitted by applicable law. Such
indemnification shall be in addition to any rights of indemnification the member
may have as a director or otherwise under the Company's Articles of Association,
any agreement, any vote of shareholders or disinterested directors, insurance
policy or otherwise.

3.2.     "FAIR MARKET VALUE" means, as of any date, the value of a Share
         determined as follows:

         (i) If the Shares are listed on any established stock exchange or a
         national market system, including without limitation the Nasdaq
         National Market system, or The Nasdaq SmallCap Market of the Nasdaq
         Stock Market , the Fair Market Value shall be the closing sales price
         for such Shares (or the closing bid, if no sales were reported), as
         quoted on such exchange or system for the last market trading day prior
         to time of determination, as reported in the Wall Street Journal, or
         such other source as the Administrator deems reliable.

                                       15
<PAGE>

         (ii) If the Shares are regularly quoted by a recognized securities
         dealer but selling prices are not reported, the Fair Market Value shall
         be the mean between the high bid and low asked prices for the Shares on
         the last market trading day prior to the day of determination, or;

         (iii) In the absence of an established market for the Shares, the Fair
         Market Value thereof shall be determined in good faith by the
         Committee.

4.       DESIGNATION OF PARTICIPANTS
The persons eligible for participation in the ISOP as recipients of Options
shall include any employees, directors, consultants and service providers of the
Company or of any Subsidiary of the Company. The grant of an Option hereunder
shall neither entitle the recipient thereof to participate nor disqualify him
from participating in, any other grant of Options pursuant to the ISOP or any
other option or stock plan of the Company or any of its affiliates.

To the extent applicable and anything in the ISOP to the contrary
notwithstanding, all grants of Options to directors and office holders ("Nosei
Misra" - as such term is defined in the Israeli Companies Law -(the "COMPANIES
LAW")) shall be authorized and implemented in accordance with the provisions of
the Companies Law, as in effect from time to time.

5.       TRUSTEE
102 Options which shall be granted under the ISOP and/or any Shares issued upon
exercise of such 102 Options and/or other shares received subsequently following
any realization of rights, shall be issued to a Trustee nominated by the
Committee, and approved in accordance with the provisions of Section 102 (the
"TRUSTEE") and held for the benefit of the Optionees.

102 Options and any Shares received subsequently following exercise of 102
Options, shall be held by the Trustee for a period of not less than two years
(24 months) from the Date Of Grant.

3(i) Options granted under the ISOP, may be issued to a Trustee nominated by the
Committee, and held for the benefit of the Optionees.

                                       16
<PAGE>

Anything to the contrary notwithstanding, the Trustee shall not release any
Options which were not already exercised into Shares by the Optionee or release
any Shares issued upon exercise of Options prior to the full payment of the
Optionee's tax liabilities arising from Options which were granted to him and/or
any Shares issued upon exercise of such Options.

Upon receipt of the Option, the Optionee will sign an undertaking to release the
Trustee from any liability in respect of any action or decision duly taken and
bona fide executed in relation with the ISOP, or any Option or Share granted to
him thereunder.

6.       SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON
6.1      The Company has reserved 1,500,000 after split and bonus shares (1:100)
         authorized but unissued Ordinary Shares par value NIS 0.01 each in the
         Share capital of the Company (the "SHARES"), for the purposes of the
         ISOP and for the purpose of the Exalink Ltd U.S Stock Option Plan (the
         "USSOP"), subject to adjustment as set forth in paragraph 8 below. Any
         of such Shares covered by the ISOP, which remain unissued and are not
         subject to outstanding Options at the termination of the ISOP, shall
         cease to be reserved for the purpose of the ISOP. Should any Option for
         any reason expire or be canceled prior to its exercise or
         relinquishment in full, the Shares therefore subject to such Option may
         again be subjected to an Option under the ISOP.

6.2      An Optionee who purchased Shares hereunder upon exercise of Options
         shall have no voting rights as a shareholder (in any and all matters
         whatsoever) until the consummation of a public offering of the
         Company's shares ("THE IPO"). Until an IPO, such Shares shall be voted
         by an irrevocable Proxy (attached hereto as EXHIBIT "C" to the Option
         Agreement)(the "PROXY") pursuant to the directions of the Board, such
         Proxy to be assigned to the person or persons designated by the Board.
         Such person or persons designated by the Board shall be indemnified and
         held harmless by the Company against any cost or expense (including
         counsel fees) reasonably incurred by him/her, or any liability
         (including any sum paid in settlement of a claim with the approval of
         the Company) arising out of any act or omission to act in connection
         with the voting of such Proxy unless arising out of such member's own
         fraud or bad faith, to the extent permitted by applicable law. Such
         indemnification shall be in addition to any rights of indemnification
         the person(s) may have as a director or otherwise under the Company's
         Articles of Association, any agreement, any vote of shareholders or
         disinterested directors, insurance policy or otherwise.

                                       17
<PAGE>

6.3      Each Option granted pursuant to the Plan, shall be evidenced by a
         written agreement between the Company and the Optionee ("THE OPTION
         AGREEMENT"), in such form as the Board or the Committee shall from time
         to time approve. Each Option Agreement shall state a number of the
         Shares to which the Option relates and the type of Option granted
         thereunder (whether a 102 Option or a 3(i) Option).

6.4      All Shares allocated or issued upon exercise of the Options shall
         entitle the holder thereof to receive dividends and other distributions
         thereon.

7.       PURCHASE PRICE
7.1      The purchase price of each Share subject to an Option granted or any
         portion thereof shall be determined by the Committee in its sole and
         absolute discretion in accordance with applicable law, subject to any
         guidelines as may be determined by the Board from time to time. Each
         Option Agreement will contain the Purchase Price determined for each
         Optionee, and in any event not less than the nominal value of the
         shares subject to the Option. ("THE PURCHASE PRICE").

7.2      The Purchase Price shall be payable upon the exercise of the Option in
         a form satisfactory to the Committee, including without limitation, by
         cash or check. The Committee shall have the authority to postpone the
         date of payment on such terms as it may determine.

8.       ADJUSTMENTS
Upon the occurrence of any of the following described events, Optionee's rights
to purchase Shares under the ISOP shall be adjusted as hereafter provided:

8.1      In the event of a merger of the Company with or into another company
         (the "SUCCESSOR COMPANY"), or the sale of all or substantially all of
         the assets or shares of the Company (the "TRANSACTION") while
         unexercised Options remain outstanding under the ISOP, then each
         Unexercised Option shall be assumed, or substituted for by an
         appropriate number of shares, of each class of shares or other
         securities of the Successor Company (or a parent or subsidiary of the
         Successor Company) which were distributed to the shareholders of the
         Company in respect of such shares. In the case of such assumption
         and/or substitution of shares, appropriate adjustments shall be made in
         the Purchase Price to reflect such action, and all other terms and
         conditions of the Option Agreements, such as the Vesting Dates, shall
         remain in force, all as will be determined by the Committee whose
         determination shall be final.

                                       18
<PAGE>

8.2      Notwithstanding the above and subject to any applicable law, unless the
         Board or the Committee determines otherwise with respect to certain
         Option Agreements, there shall be a clause in each Option Agreement
         instructing that if in any such Transaction as described in section 8.1
         above, the Successor Company (or parent or subsidiary of the Successor
         Company) does not agree to assume or substitute for the Options, all
         Unexercised Options shall be expired as of the date of the Transaction.

8.3      For the purposes of section 8.1 above, the Option shall be considered
         assumed or substituted if, following the merger or acquisition, the
         Option confers the right to purchase or receive, for each Share of
         Optioned Shares immediately prior to the Transaction, the consideration
         (whether shares, options, cash, or other securities or property)
         received in the Transaction by holders of Shares for each Share held on
         the effective date of the Transaction (and if such holders were offered
         a choice of consideration, the type of consideration chosen by the
         holders of a majority of the outstanding Shares); provided, however,
         that if such consideration received in the Transaction is not solely
         ordinary shares (or their equivalent) of the Successor Company or its
         parent or subsidiary, the Committee may, with the consent of the
         Successor Company, provide for the consideration to be received upon
         the exercise of the Option to be solely ordinary shares (or their
         equivalent) of the Successor Company or its parent or subsidiary equal
         in Fair Market Value to the per Share consideration received by holders
         of a majority of the outstanding Shares in the Transaction; and
         provided further that the Committee may determine, in its discretion
         and subject to the boards approval, that in lieu of such assumption or
         substitution of Options for options of the Successor Company or its
         parent or subsidiary, such Options will be substituted for any other
         type of asset or property including cash which is fair under the
         circumstances.

8.3      If the Company is liquidated or dissolved while unexercised Options
         remain outstanding under the ISOP, then the Board in its own discretion
         may determine that all such outstanding Options may be exercised in
         full by the Optionees as of the effective date of any such liquidation
         or dissolution of the Company without regard to the vesting provisions
         hereof. If the Board determines that the outstanding Options may be
         exercised, the Optionees, giving notice in writing to the Company of
         their intention to so, may exercise all such outstanding Options in
         full.

                                       19
<PAGE>

8.5      If the outstanding shares of the Company shall at any time be changed
         or exchanged by declaration of a stock dividend (bonus shares), stock
         split, combination or exchange of shares, recapitalization, or any
         other like event by or of the Company, and as often as the same shall
         occur, then the number, class and kind of Shares subject to the ISOP or
         subject to any Options therefore granted, and the purchase prices,
         shall be appropriately and equitably adjusted so as to maintain the
         proportionate number of Shares without changing the aggregate purchase
         price, provided, however, that no adjustment shall be made by reason of
         the distribution of subscription rights (rights offering) on
         outstanding shares. Upon happening of any of the foregoing, the class
         and aggregate number of Shares issuable pursuant to the ISOP (as set
         forth in paragraph 6 hereof), in respect of which Options have not yet
         been exercised, shall be appropriately adjusted, all as will be
         determined by the Board whose determination shall be final.

8.6      Anything herein to the contrary notwithstanding, if prior to the
         completion of an IPO all or substantially all of the shares of the
         Company are to be sold, or upon a Transaction reorganization or the
         like, all or substantially all of the shares of the Company are to be
         exchanged for securities of another Company, then each Optionee shall
         be obliged to sell or exchange, as the case may be, any Shares such
         Optionee purchased under the ISOP, in accordance with the instructions
         issued by the Board in connection with the Transaction, whose
         determination shall be final.

                                       20
<PAGE>

9.       PURCHASE FOR INVESTMENT
The Company's obligation to issue Shares upon exercise of an Option granted
under the Plan is expressly conditioned upon (a) the Company's completion of any
registration or other qualifications of such Shares under any state and/or
federal law, rulings or regulations or (b) representations and undertakings by
the Optionee (or his legal representative, heir or legatee, in the event of the
Optionee's death) to assure that the sale of the Shares complies with any
registration exemption requirements which the Company in its sole discretion
shall deem necessary or advisable. Such required representations and
undertakings may include representations and agreements that such Optionee (or
his legal representative, heir, or legatee): (a) is purchasing such Shares for
investment and not with any present intention of selling or otherwise disposing
thereof; and (b) agrees to have placed upon the face and reverse of any
certificates evidencing such Shares a legend setting forth (i) any
representations and undertakings which such Optionee has given to the Company or
a reference thereto and (ii) that, prior to effecting any sale or other
disposition of any such Shares, the Optionee must furnish to the Company an
opinion of counsel, satisfactory to the Company, that such sale or disposition
will not violate the applicable laws, rules and regulations whether of the state
of Israel or of the United States or any other State having jurisdiction over
the Company and/or the Optionee requirements of State and federal laws and
regulatory agencies.

10.      TERM AND EXERCISE OF OPTIONS
10.1     Options shall be exercised by the Optionee by giving written notice to
         the Company, in such form and method as may be determined by the
         Company and the Trustee and when applicable, in accordance with the
         requirements of Section 102, which exercise shall be effective upon
         receipt of such notice by the Company at its principal office. The
         notice shall specify the number of Shares with respect to which the
         Option is being exercised.

10.2     Options, to the extent not previously exercised, shall terminate
         forthwith upon the earlier of: (i) the date set forth in Section 4 of
         exhibit B to the Option Agreement; and - (ii) the expiration of any
         extended period in any of the events set forth in Section 9.7 below
         (and such earlier date shall be hereinafter referred to as the
         "EXPIRATION DATE").

10.3     Each Option shall be exercisable following the Vesting Periods and
         subject to the provisions of the ISOP for the number of Shares as shall
         be provided in Exhibit B to the Option Agreement. However no Option
         shall be exercisable after the Expiration Date.

                                       21
<PAGE>

10.4     Options granted under the ISOP shall not be transferable by Optionees
         other than by will or laws of descent and distribution, and during an
         Optionee's lifetime shall be exercisable only by that Optionee.

10.5     The Options may be exercised by the Optionee in whole at any time or in
         part from time to time, to the extent that the Options become vested
         and excercisable, prior to the Expiration Date, and provided that,
         subject to the provisions of Section 10.7below and unless the Board or
         Committee resolves otherwise, the Optionee is an employee of the
         Company or any of its Subsidiaries or continuing to provide services to
         such entities, at all times during the period beginning with the
         granting of the Option and ending upon the date of exercise.

10.6     Subject to the provisions of Section 10.7 below, in the event of
         termination of Optionee's employment with the Company or any of its
         subsidiaries, or if applicable, the termination of services given by
         the Optionee to the Company or any of its subsidiaries all Options
         granted to him will immediately expire. A notice of termination of
         employment or services shall be deemed to constitute termination of
         employment or services.

10.7     Notwithstanding anything to the contrary in Section 10.6 above, an
         Option may be exercised after the date of termination of Optionee's
         service or employment with the Company or any subsidiary of the Company
         only with respect to the number of Options already vested and unexpired
         at the time of such termination according to the vesting and expiration
         periods of the Options set forth in exhibit B of such Optionee's Option
         Agreement, and only provided that either:

         10.71    prior to the date of such termination, the Board or Committee
                  shall authorize an extension of the terms of all or part of
                  the Options beyond the date of such termination for a period
                  not to exceed the period during which the Options by their
                  terms would otherwise have been exercisable; or -

         10.7.2   Such termination is without Cause (as defined below), in which
                  event the Options may be exercised within a period of 90 days
                  from the date of such termination; or -

         10.7.3   Termination is the result of death or disabillity of the
                  Optionee, in which event the Options may be exercised within a
                  period of 12 (twelve) months from such date of termination.

                                       22
<PAGE>

         The term "CAUSE" shall mean (i) conviction of any felony involving
         moral turpitude or affecting the Company; (ii) any refusal to carry out
         a reasonable directive of the CEO which involves the business of the
         Company or its affiliates and was capable of being lawfully performed;
         (iii) embezzlement of funds of the Company or its affiliates; (iv) any
         breach of the Optionee's fiduciary duties or duties of care of the
         Company; including without limitation disclosure of confidential
         information of the Company; and (v) any conduct (other than conduct in
         good faith) as reasonably determined by the Board of Directors to be
         materially detrimental to the Company.

10.8     Subject to the provisions of Section 11 below, the holders of Options
         shall not have any of the rights or privileges of shareholders of the
         Company in respect of any Shares purchasable upon the exercise of any
         part of an Option, nor shall they be deemed to be a class of
         shareholders or creditors of the Company for purpose of the operation
         of section 350 and 351 of the Companies Law or successor to such
         section, until registration of the Optionee as holder of such Shares in
         the Company's register of members upon exercise of the Option in
         accordance with the provisions of the ISOP.

10.9     Any form of Option Agreement authorized by the ISOP may contain such
         other provisions as the Committee may, from time to time, deem
         advisable. Without limiting the foregoing, the Committee may, with the
         consent of the Optionee, from time to time cancel all or any portion of
         any Option then subject to exercise, and the Company's obligation in
         respect of such Option may be discharged by (i) payment to the Optionee
         of an amount in cash equal to the excess, if any, of the Fair Market
         Value of the Shares at the date of such cancellation subject to the
         portion of the Option so canceled over the aggregate Purchase Price of
         such Shares, (ii) the issuance or transfer to the Optionee of Shares of
         the Company with a Fair Market Value at the date of such transfer equal
         to any such excess, or (iii) a combination of cash and shares with a
         combined value equal to any such excess, all as determined by the
         Committee in its sole discretion.

10.10    Options shall vest (i.e., Options shall become exercisable) at the
         dates set forth in Section 3 of EXHIBIT "B" to the Option Agreement
         (the "VESTING DATE"). An Option may be subject to such other terms and
         conditions on the time or times when it may be exercised, as the
         Committee or the Board may deem appropriate.

11.      SHARES SUBJECT TO RIGHT OF FIRST REFUSAL
11.1     Notwithstanding anything to the contrary in the Articles of Association
         of the Company, none of the Optionees shall have a right of first
         refusal in relation with any sale of shares in the Company.

                                       23
<PAGE>

11.2     Sale of Shares by the Optionee shall be subject to the right of first
         refusal of other shareholders as set forth in the Articles of
         Association of the Company. In the event that the Articles of
         Association of the Company shall not contain any provision regarding
         rights of first refusal, then, unless otherwise provided by the Board,
         until such time as the Company shall effectuate an IPO, the sale of
         Shares issuable upon exercise of an Option, shall be subject to a right
         of first refusal on the part of the Repurchaser(s). Repurchaser(s)
         means (i) the Company, if permitted by applicable laws; (ii) if the
         Company is not permitted by applicable laws, then any affiliate or
         Subsidiary of the Company designated by a unanimous decision is reached
         by the Board of Directors; or (iii) if no unanimous decision is reached
         by the Board of Directors , then the company existing shareholders
         (save, for avoidance of doubt , for other Optionees who already
         exercised their Options), pro rata in accordance with their
         shareholding. The Optionee shall give a notice of sale ("THE NOTICE")
         to the Company in order to offer the Shares to the Repurchaser(s), and
         the Company will forward the Notice to the existing shareholders.

         The Notice shall specify the Number of Shares offered for sale, the
         price per Share, the payment terms the name of each proposed purchaser
         or other Transferee ("PROPOSED TRANSFEREE"). The Repurchaser(s) will be
         entitled for 30 days from the day of receipt of the Notice ("THE 30
         DAYS PERIOD"), to purchase all or part of the offered Shares. If by the
         end of the 30 Days Period not all of the offered Shares have been
         purchased by the Repurchaser(s), the Optionee will be entitled to sell
         such Shares at any time during the 90 days following the end of the 30
         Days Period on terms not more favorable than those set out in the
         Notice, provided that the proposed Transferee agrees in writing that
         the provisions of this section shall continue to apply to the Shares in
         the hands of such proposed Transferee.

                                       24
<PAGE>

12.      VESTING OF OPTIONS
Options shall vest (i.e., Options shall become exercisable) at the dates set
forth in Section 3 of exhibit B to the Option Agreement (the "VESTING PERIODS").
An Option may be subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or other criteria)
as the Board may deem appropriate. The vesting provisions of individual
Optionees may vary.

13.      DIVIDENDS
With respect to all Shares (in contrast to unexercised Options) issued upon the
exercise of Options purchased by the Optionee and held by the Trustee, the
Optionee shall be entitled to receive dividends in accordance with the quantity
of such Shares, and subject to any applicable taxation on distribution of
dividends. During the period in which Shares issued to the Trustee on behalf of
a Optionee are held by the Trustee, the cash dividends paid with respect thereto
shall be paid directly to the Optionee.

14.      ASSIGNABILITY AND SALE OF OPTIONS
No Option, purchasable hereunder, whether fully paid or not, shall be
assignable, transferable or given as collateral or any right with respect to
them given to any third party whatsoever, and during the lifetime of the
Optionee each and all of such Optionee's rights to purchase Shares hereunder
shall be exercisable only by the Optionee. Any such action made directly or
indirectly, for an immediate validation or for a future one, shall be void.

As long as the Shares are held by the Trustee in favor of the Optionee, than all
rights the last possesses over the Shares are personal, can not be transferred,
assigned, pledged or mortgaged, other than by will or laws of descent and
distribution.

15.      TERM OF THE ISOP
The ISOP shall be effective as of the date that it is adopted by the Board and
shall terminate at the end of ten (10) years from such day of adoption.

16.      AMENDMENTS OR TERMINATION
Board may, at any time and from time to time, but after consultation with the
Trustee, amend, alter or discontinue the ISOP, except that no amendment or
alteration shall be made which would impair the rights of the holder of any
Option therefore granted, without his written consent. Termination of the ISOP
shall not affect the committee's and/or the Board's ability to exercise the
powers granted to it hereunder with respect to the Options granted under the
ISOP prior to the date of such termination.

                                       25
<PAGE>

17.      GOVERNMENT REGULATIONS
The ISOP, the granting and exercise of Options hereunder, and the obligation of
the Company to sell and deliver Shares under such Options, shall be subject to
all applicable laws, rules, and regulations, whether of the State of Israel or
of the United States or any other State having jurisdiction over the Company and
the Optionee, including the registration of the Shares under the United States
Securities Act of 1933, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

18.      CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES
Neither the ISOP nor the Option Agreement with the Optionee shall impose any
obligation on the Company or a Subsidiary thereof, to continue any Optionee in
its employ, or the hiring by the Company of the Optionee's services and nothing
in the ISOP or in any Option granted pursuant thereto shall confer upon any
Optionee any right to continue in the employ or service of the Company or a
Subsidiary thereof or restrict the right of the Company or a Subsidiary thereof
to terminate such employment or service at any time.

19.      GOVERNING LAW & JURISDICTION
The ISOP shall be governed by and construed and enforced in accordance with the
laws of the State of Israel applicable to contracts made and to be performed
therein, without giving effect to the principles of conflict of laws. The
competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters
pertaining to the ISOP.

20.      TAX CONSEQUENCES
Any tax consequences arising from the grant or exercise of any Option, from the
payment for Shares covered thereby or from any other event or act (of the
Company, the Trustee or the Optionee), hereunder, shall be borne solely by the
Optionee. The Company and/or its subsidiaries and/or the Trustee shall withhold
taxes according to the requirements under the applicable laws, rules, and
regulations, including withholding taxes at source. Furthermore, the Optionee
shall agree to indemnify the Company and/or the subsidiaries and/or the Trustee
and hold them harmless against and from any and all liability for any such tax
or interest or penalty thereon, including without limitation, liabilities
relating to the necessity to withhold, or to have withheld, any such tax from
any payment made to the Optionee.

The Committee and/or the Trustee shall not be required to release any Share
certificate to an Optionee until all required payments have been fully made.

                                       26
<PAGE>

21.      NON-EXCLUSIVITY OF THE ISOP
The adoption of the ISOP by the Board shall not be construed as amending,
modifying or rescinding any previously approved incentive arrangements or as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock Options otherwise then under the ISOP, and such arrangements
may be either applicable generally or only in specific cases. For the avoidance
of doubt, prior grant of options to Optionees of the Company under their
employment agreements, and not in the framework of any previous option plan,
shall not be deemed an approved incentive arrangement for the purpose of this
Section.

22.      MULTIPLE AGREEMENTS
The terms of each Option may differ from other Options granted under the ISOP at
the same time, or at any other time. The Committee may also grant more than one
Option to a given Optionee during the term of the Option Plan, either in
addition to, or in substitution for, one or more Options previously granted to
that Optionee.

                                       27

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