Document:

<PAGE>

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

                       PEGASUS COMMUNICATIONS CORPORATION

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

                                  SUBORDINATED
                                    INDENTURE

                          Dated as of ________________

 Providing for Issuance of Senior Subordinated and Subordinated Debt
                              Securities in Series
                              ---------------------

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

                            FIRST UNION NATIONAL BANK

                                   as Trustee

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

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

<PAGE>

                                TABLE OF CONTENTS

ARTICLE 1.  DEFINITIONS AND INCORPORATION BY REFERENCE.........................1
    Section 1.01.  Definitions.................................................1
    Section 1.02.  Other Definitions...........................................6
    Section 1.03.  Incorporation by Reference of Trust Indenture Act...........6
    Section 1.04.  Rules of Construction.......................................7
ARTICLE 2.  THE SECURITIES.....................................................7
    Section 2.01.  Form and Dating.............................................7
    Section 2.02.  Amount Unlimited; Issuable in Series........................8
    Section 2.03.  Denominations..............................................12
    Section 2.04.  Execution and Authentication...............................12
    Section 2.05.  Registrar and Paying Agent.................................13
    Section 2.06.  Paying Agent to Hold Money in Trust........................13
    Section 2.07.  Holder Lists...............................................14
    Section 2.08.  Transfer and Exchange......................................14
    Section 2.09.  Replacement Securities.....................................20
    Section 2.10.  Outstanding Securities.....................................20
    Section 2.11.  Treasury Securities........................................20
    Section 2.12.  Temporary Securities.......................................21
    Section 2.13.  Cancellation...............................................21
    Section 2.14.  Defaulted Interest.........................................21
Article 3.  REDEMPTION AND PREPAYMENT.........................................21
    Section 3.01.  Selection of Securities to Be Redeemed.....................21
    Section 3.02.  Notice of Redemption.......................................22
    Section 3.03.  Effect of Notice of Redemption.............................23
    Section 3.04.  Deposit of Redemption or Purchase Price....................23
    Section 3.05.  Securities Redeemed or Purchased in Part...................23
    Section 3.06.  Mandatory Redemption.......................................23
Article 4.  COVENANTS.........................................................23
    Section 4.01.  Payment of Securities......................................23
    Section 4.02.  Maintenance of Office or Agency............................24
    Section 4.03.  Reports....................................................24
    Section 4.04.  Compliance Certificate.....................................25
    Section 4.05.  Continued Existence........................................25
    Section 4.06.  Waiver of Certain Covenants................................26
    Section 4.07.  Stay, Extension and Usury Laws.............................26
Article 5.  SUCCESSORS........................................................26
    Section 5.01.  Merger, Consolidation, or Sale of Assets...................26
    Section 5.02.  Successor Corporation Substituted..........................27
Article 6.  DEFAULTS AND REMEDIES.............................................27
    Section 6.01.  Events of Default..........................................27
    Section 6.02.  Acceleration...............................................29

                                      -i-

<PAGE>

    Section 6.03.  Other Remedies.............................................29
    Section 6.04.  Waiver of Past Defaults....................................29
    Section 6.05.  Control by Majority........................................30
    Section 6.06.  Limitation on Suits........................................30
    Section 6.07.  Rights of Holders of Securities to Receive Payment.........30
    Section 6.08.  Collection Suit by Trustee.................................31
    Section 6.09.  Trustee May File Proofs of Claim...........................31
    Section 6.10.  Priorities.................................................31
    Section 6.11.  Undertaking for Costs......................................32
Article 7.  TRUSTEE...........................................................32
    Section 7.01.  Duties of Trustee..........................................32
    Section 7.02.  Rights of Trustee..........................................33
    Section 7.03.  Individual Rights of Trustee...............................34
    Section 7.04.  Trustee's Disclaimer.......................................34
    Section 7.05.  Notice of Defaults.........................................34
    Section 7.06.  Reports by Trustee to Holders of the Securities............34
    Section 7.07.  Compensation and Indemnity.................................35
    Section 7.08.  Replacement of Trustee.....................................36
    Section 7.09.  Successor Trustee by Merger, etc...........................37
    Section 7.10.  Eligibility; Disqualification..............................37
    Section 7.11.  Preferential Collection of Claims Against Company..........37
Article 8.  LEGAL DEFEASANCE AND COVENANT DEFEASANCE..........................37
    Section 8.01.  Option to Effect Legal Defeasance or Covenant Defeasance...37
    Section 8.02.  Legal Defeasance and Discharge.............................37
    Section 8.03.  Covenant Defeasance........................................38
    Section 8.04.  Conditions to Legal or Covenant Defeasance.................38
    Section 8.05.  Deposited Money and Government Securities to be Held in
                   Trust; Other Miscellaneous Provisions......................40
    Section 8.06.  Repayment to Company.......................................40
    Section 8.07.  Reinstatement..............................................41
Article 9.  AMENDMENT, SUPPLEMENT AND WAIVER..................................41
    Section 9.01.  Without Consent of Holders of Securities...................41
    Section 9.02.  With Consent of Holders of Securities......................42
    Section 9.03.  Compliance with Trust Indenture Act........................43
    Section 9.04.  Revocation and Effect of Consents..........................43
    Section 9.05.  Notation on or Exchange of Securities......................44
    Section 9.06.  Trustee to Sign Amendments, etc............................44
Article 10. CONVERSION OR EXCHANGE OF SECURITIES..............................44
    Section 10.01. Applicability of Article...................................44
    Section 10.02. Exercise of Conversion or Exchange Privilege...............45
    Section 10.03. No Fractional Equity Securities............................46
    Section 10.04. Adjustment of Conversion or Exchange Price;
                   Consolidation or Merger....................................47
    Section 10.05. Notice of Certain Corporate Actions........................47

                                      -ii-

<PAGE>

    Section 10.06. Reservation of Equity Securities...........................48
    Section 10.07. Payment of Certain Taxes Upon Conversion or Exchange.......48
    Section 10.08. Duties of Trustee Regarding Conversion or Exchange.........48
    Section 10.09. Repayment of Certain Funds Upon Conversion or Exchange.....49
Article 11. SUBORDINATION OF SECURITIES.......................................49
    Section 11.01. Agreement to Subordinate...................................49
    Section 11.02. Certain Definitions........................................50
    Section 11.03. Liquidation; Dissolution; Bankruptcy.......................50
    Section 11.04. Default on Designated Senior Debt..........................50
    Section 11.05. Acceleration of Securities.................................51
    Section 11.06. When Distribution Must Be Paid Over........................51
    Section 11.07. Notice By Company..........................................52
    Section 11.08. Subrogation................................................52
    Section 11.09. Relative Rights............................................52
    Section 11.10. Subordination May Not Be Impaired By Company...............53
    Section 11.11. Distribution or Notice To Representative...................53
    Section 11.12. Rights of Trustee and Paying Agent.........................53
    Section 11.13. Authorization to Effect Subordination......................53
    Section 11.14. Amendments.................................................53
Article 12. MISCELLANEOUS.....................................................54
    Section 12.01. Trust Indenture Act Controls...............................54
    Section 12.02. Notices....................................................54
    Section 12.03. Communication by Holders of Securities with Other Holders
                   of Securities..............................................55
    Section 12.04. Certificate and Opinion as to Conditions Precedent.........56
    Section 12.05. Statements Required in Certificate or Opinion..............56
    Section 12.06. Rules by Trustee and Agents................................56
    Section 12.07. No Personal Liability of Directors, Officers, Employees
                   and Stockholders...........................................56
    Section 12.08. Governing Law..............................................57
    Section 12.09. No Adverse Interpretation of Other Agreements..............57
    Section 12.10. Successors.................................................57
    Section 12.11. Severability...............................................57
    Section 12.12. Counterpart Originals......................................57
    Section 12.13. Table of Contents, Headings, etc...........................57

                                     -iii-

<PAGE>

         INDENTURE dated as of __________________ between Pegasus Communications
Corporation, a Delaware corporation (the "Company"), and First Union National
Bank, a national banking association, as Trustee (the "Trustee").

         The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
subordinated debentures, securities or other evidences of indebtedness
("Securities") to be issued in one or more series as herein provided.

         All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

         For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the Holders of the Securities:

                                   ARTICLE 1
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

Section 1.01 DEFINITIONS.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided, however,
that beneficial ownership of 10% or more of the voting securities of a Person
shall be deemed to be control.

         "Agent" means any Registrar, Paying Agent or co-Registrar.

         "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.

         "Bearer Security" means any Security issued hereunder which is payable
to bearer.

         "Board" or "Board of Directors" means the Board of Directors of the
Company or any authorized committee of the Board of Directors.

         "Board Resolution" means a copy of a resolution of the Board of
Directors, certified by the Secretary or an Assistant Secretary of the Company
to have been duly adopted by the Board of Directors and to be in full force and
effect on the date of the certificate, and delivered to the Trustee.

<PAGE>

         "Business Day" means any day other than a Legal Holiday.

         "Capital Lease Obligation" means, at the time any determination thereof
is to be made, the amount of the liability in respect of a capital lease that
would at such time be required to be capitalized on a balance sheet in
accordance with GAAP.

         "Class A Common Stock" means the Company's Class A Common Stock, par
value $.01 per share.

         "Closing Date" means the original date of issuance of the Securities.

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

         "Company" means Pegasus Communications Corporation, a Delaware
corporation and any and all successors thereto.

         "Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 12.02 hereof or such other address as to which the
Trustee may give notice to the Company.

         "Credit Facility" means the Company's principal bank credit facility as
identified in any supplemental indenture establishing a series of Securities,
including any amendment, supplement, modification, restatement, replacement,
refunding or refinancing.

         "Custodian" means the Trustee, as custodian with respect to the
Securities in global form, or any successor entity thereto.

         "Default" means any event that is or with the passage of time or the
giving of notice or both would be an Event of Default.

         "Depositary" means, with respect to the Securities issuable or issued
in whole or in part in global form, the Person specified in Section 2.05 hereof
as the Depositary with respect to the Securities, and any and all successors
thereto appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect on the Closing Date.

                                      -2-

<PAGE>

         "Global Securities" means, individually and collectively, the
Securities issued in global form in accordance with Sections 2.01 and 2.08
hereof.

         "Global Security Legend" means the legend which is required to be
placed on all Global Securities issued under this Indenture.

         "Guarantee" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, co-borrowing
arrangements, letters of credit and reimbursement agreements in respect
thereof), of all or any part of any Indebtedness.

         "Hedging Obligations" means, with respect to any Person, the
obligations of such Person under (i) interest rate swap agreements, interest
rate cap agreements and interest rate collar agreements and (ii) other
agreements or arrangements designed to protect such Person against fluctuations
in interest rates.

         "Holder" means a Person in whose name a Security is registered.

         "Indebtedness" means, with respect to any Person, any indebtedness of
such Person, whether or not contingent, in respect of borrowed money or
evidenced by bonds, securities, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof) or banker's acceptances
or representing any Capital Lease Obligations or the balance deferred and unpaid
of the purchase price of any property or representing any Hedging Obligations,
except any such balance that constitutes an accrued expense or trade payable, if
and to the extent any of the foregoing indebtedness (other than letters of
credit and Hedging Obligations) would appear as a liability upon a balance sheet
of such Person prepared in accordance with GAAP, as well as all indebtedness of
others secured by a Lien on any asset of such Person (whether or not such
indebtedness is assumed by such Person) and, to the extent not otherwise
included, the guarantee by such Person of any indebtedness of any other Person.
The amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above and the
maximum liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date; provided that the amount
outstanding at any time of any Indebtedness issued with original issue discount
is the full amount of such Indebtedness less the remaining unamortized portion
of the original issue discount of such Indebtedness at such time as determined
in conformity with GAAP. The amount of any Indebtedness outstanding as of any
date shall be (i) the accreted value thereof, in the case of any Indebtedness
issued with original issue discount and (ii) the principal amount thereof,
together with any interest thereon that is more than 30 days past due, in the
case of any other Indebtedness.

         "Indenture" means this Subordinated Indenture as amended and restated
hereby or as amended, waived or supplemented from time to time and shall include
and incorporate by reference the forms and terms of particular series of
Securities established as contemplated hereunder.

                                      -3-

<PAGE>

         "Indirect Participant" means a Person who holds a beneficial interest
in a Global Security through a Participant.

         "Interest Payment Date" when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.

         "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

         "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
this Indenture or the applicable Securities.

         "Officer" means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller,
the Secretary, any Assistant Secretary, any Vice-President or any Assistant Vice
President of such Person.

         "Officers' Certificate" means a certificate signed on behalf of the
Company by two Officers of the Company, one of whom must be the principal
executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company, that meets the requirements of
Section 12.05 hereof.

         "Opinion of Counsel" means an opinion from legal counsel who is not
unsatisfactory to the Trustee, that meets the requirements of Section 12.05
hereof. The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

         "Participant" means, with respect to the Depositary, a Person who has
an account with the Depositary.

         "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or agency or political subdivision thereof (including any subdivision
or ongoing business of any such entity or substantially all of the assets of any
such entity, subdivision or business).

         "Registered Security" means any Security issued hereunder and
registered as to principal and interest in the Register.

                                      -4-

<PAGE>

         "Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of or within any series means the date specified for that
purpose as contemplated by Section 2.08.

         "Responsible Officer" when used with respect to the Trustee, means any
officer within the Corporate Trust Administration department of the Trustee (or
any successor group of the Trustee) or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

         "SEC" means the Securities and Exchange Commission.

         "Securities" has the meaning assigned to it in the preamble to this
Indenture.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Senior Bank Debt" means the Indebtedness (including letters of credit)
outstanding under the Credit Facility as such agreement may be restated, further
amended, supplemented or oterwise modified or replaced from time to time
hereafter, together with any refunding or replacement of such Indebtedness.

         "Senior Debt" means any Indebtedness unless the instrument under which
such Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Securities. Notwithstanding anything to
the contrary in the foregoing, Senior Debt will not include (w) any liability
for federal, state, local or other taxes owed or owing by the Company, (x) any
Indebtedness of the Company to any of its Subsiodiaries of other Affiliates ,
(y) any trade payables or (z) any Indebtedness that is incurred in violation of
this Indenture.

         "Significant Subsidiary" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date of this Indenture.

         "Stated Maturity" means, with respect to any interest or principal on
any series of Securities, the date on which such payment of interest or
principal was scheduled to be paid in the original documentation governing such
Indebtedness, and shall not include any contingent obligations to repay, redeem
or repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.

         "Subsidiary" means, with respect to any Person, (i) any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries (of such Person or a combination
thereof) and (ii) any partnership (a) the sole general partner or the managing
general partner of which is such a Person or a Subsidiary of such Person or (b)

                                      -5-

<PAGE>

the only general partners of which are such Person or one or more Subsidiaries
of such Person (or any combination thereof.)

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. ss.ss.
77aaa-77bbbb as amended) as in effect on the date on which this Indenture is
qualified under the TIA.

         "Trustee" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

Section 1.02 OTHER DEFINITIONS

                                                                      Defined in
Term                                                                  Section

"Authentication Order"...............................................  2.04
"Common Stock"....................................................... 10.01

"Covenant Defeasance"................................................  8.03
"custodian"..........................................................  6.01
"Equity Securities".................................................. 10.01
"Event of Default"...................................................  6.01
"Government Obligations".............................................  2.02
"incur"..............................................................  4.09
"Legal Defeasance"...................................................  8.02
"Notice of Default"..................................................  6.01
"outstanding"........................................................  8.02
"Paying Agent".......................................................  2.05
"Payment Default"....................................................  6.01

"Payment Blockage Notice"............................................ 11.04

"Preferred Stock".................................................... 10.01
"Purchase Date"......................................................  3.09
"Registrar"..........................................................  2.05

"trading day"........................................................ 10.03

Section 1.03 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

         Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.

         The following TIA terms used in this Indenture have the following
meanings:

         "indenture security Holder" means a Holder of a Security;

         "indenture to be qualified" means this Indenture;

                                      -6-

<PAGE>

         "indenture Trustee" or "institutional Trustee" means the Trustee;

         "obligor" on the Securities means the Company and any successor obligor
upon the Securities.

         All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

Section 1.04 RULES OF CONSTRUCTION.

         Unless the context otherwise requires:

         (1) a term has the meaning assigned to it;

         (2) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;

         (3) "or" is not exclusive;

         (4) words in the singular include the plural, and in the plural include
the singular;

         (5) provisions apply to successive events and transactions; and

         (6) references to sections of or rules under the Securities Act shall
be deemed to include substitute, replacement of successor sections or rules
adopted by the SEC from time to time.

                                   ARTICLE 2
                                 THE SECURITIES

Section 2.01 FORM AND DATING.

         (a) General. The Securities of each series and the interest coupons, if
any, to be attached thereto shall be in substantially such form as shall be
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any applicable securities exchange, organizational document,
governing instrument or law or as may, consistently herewith, be determined by
the officers executing such Securities and interest coupons, if any, as
evidenced by their execution of the Securities and interest coupons, if any. If
temporary Securities of any series are issued as permitted by Section 2.12, the
form thereof also shall be established as provided in the preceding sentence. If
the forms of Securities and interest coupons, if any, of any series are
established by, or by action taken pursuant to, a Board Resolution, a copy of
the Board Resolution together with an appropriate record of any such action
taken pursuant thereto, including a copy of the approved form of Securities or

                                      -7-

<PAGE>

interest coupons, if any, shall be delivered to the Trustee at or prior to the
delivery of the Authentication Order contemplated by Section 2.04 for the
authentication and delivery of such Securities. The Trustee's certificate of
authentication shall be in substantially the following form:

         This is one of the Securities of the series described in the
within-mentioned Indenture.

                                        _______________________________________,
                                        as Trustee

                                        By: ____________________________________
                                            Authorized Signatory

         (b) Global Securities. If Securities of or within a series are issuable
in whole or in part in global form, any such Security may provide that it shall
represent the aggregate or specified amount of outstanding Securities from time
to time endorsed thereon and may also provide that the aggregate amount of
outstanding Securities represented thereby may from time to time be reduced or
increased to reflect exchanges. Any endorsement of a Security in global form to
reflect the amount, or any increase or decrease in the amount, or changes in the
rights of Holders, of outstanding Securities represented thereby, shall be made
in such manner and by such Person or Persons as shall be specified therein or
upon the written order of the Company signed by an Officer to be delivered to
the Trustee pursuant to Section 2.04 or 2.12. Subject to the provisions of
Section 2.04, Section 2.12 if applicable, and Section 2.08, the Trustee shall
deliver and redeliver any Security in permanent global form in the manner and
upon instructions given by the Person or Persons specified therein or in the
applicable written order of the Company signed by an Officer. Any instructions
by the Company with respect to endorsement or delivery or redelivery of a
Security in global form shall be in writing.

         The provisions of the last paragraph of Section 2.04 shall apply to any
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with a written instructions with regard to the reduction in the
principal amount of Securities represented thereby, together with the written
statement contemplated by the last paragraph of Section 2.04.

         Notwithstanding the provisions of this Section 2.01, unless otherwise
specified as contemplated by Section 2.02, payment of principal of, premium, if
any, and interest on any Registered Security in permanent global form shall be
made to the registered holder thereof.

Section 2.02. AMOUNT UNLIMITED; ISSUABLE IN SERIES.

         (a) The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued from time to time in one or more series.

                                      -8-

<PAGE>

         (b) The following matters shall be established with respect to each
series of Securities issued hereunder (i) by a Board Resolution, (ii) by action
taken pursuant to a Board Resolution and (subject to Section 2.04) set forth, or
determined in the manner provided, in an Officers' Certificate or (iii) in one
or more indentures supplemental hereto:

             (1) the title of the Securities of the series (which title shall
distinguish the Securities of the series from all other series of Securities);

             (2) any limit upon the aggregate principal amount of the Securities
of the series which may be authenticated and delivered under this Indenture
(which limit shall not pertain to Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities
of the series pursuant to Section 2.08, 2.09, 2.12, 3.06 or 9.05 or any
Securities that, pursuant to Section 2.04, are deemed never to have been
authenticated and delivered hereunder);

             (3) the date or dates on which the principal of and premium, if
any, on the Securities of the series is payable or the method or methods of
determination thereof;

             (4) the rate or rates at which the Securities of the series shall
bear interest, if any, or the method or methods of calculating such rate or
rates of interest, the date or dates from which such interest shall accrue or
the method or methods by which such date or dates shall be determined, the
Interest Payment Dates on which any such interest shall be payable, the right,
if any, of the Company to defer or extend an Interest Payment Date and, with
respect to Registered Securities, the Regular Record Date, if any, for the
interest payable on any Registered Security on any Interest Payment Date, and
the basis upon which interest shall be calculated if other than that of a
360-day year of twelve 30-day months;

             (5) the place or places where the principal of, premium, if any,
and interest, if any, on Securities of the series shall be payable, any
Registered Securities of the series may be surrendered for registration of
transfer, Securities of the series may be surrendered for exchange and notices
and demands to or upon the Company in respect of the Securities of the series
and this Indenture may be served and where notices to Holders pursuant to
Section 12.02 will be published;

             (6) the period or periods within which, the price or prices at
which, the currency or currencies (including currency unit or units) in which,
and the other terms and conditions upon which, Securities of the series may be
redeemed, in whole or in part, at the option of the Company and, if other than
as provided in Section 3.02, the manner in which the particular Securities of
such series (if less than all Securities of such series are to be redeemed) are
to be selected for redemption;

             (7) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous provisions or
upon the happening of a specified event or at the option of a Holder thereof and
the period or periods within which, the price or prices at which, the currency
or currencies (including currency unit or units) in which, and the other terms

                                      -9-

<PAGE>

and conditions upon which, Securities of the series shall be redeemed or
purchased, in whole or in part, pursuant to such obligation;

             (8) if other than denominations of $1,000 and any integral multiple
thereof, if Registered Securities, and if other than denominations of $5,000 and
any integral multiple thereof, if Bearer Securities, the denominations in which
Securities of the series shall be issuable;

             (9) if other than dollars, the currency or currencies (including
currency unit or units) in which the principal of, premium, if any, and
interest, if any, on the Securities of the series shall be payable, or in which
the Securities of the series shall be denominated, and the particular provisions
applicable;

             (10) if the payments of principal of, premium, if any, or interest,
if any, on the Securities of the series are to be made, at the election of the
Company or a Holder, in a currency or currencies (including currency unit or
units) other than that in which such Securities are denominated or designated to
be payable, the currency or currencies (including currency unit or units) in
which such payments are to be made, the terms and conditions of such payments
and the manner in which the exchange rate with respect to such payments shall be
determined, and the particular provisions applicable thereto;

             (11) if the amount of payments of principal of, premium, if any,
and interest, if any, on the Securities of the series shall be determined with
reference to an index, formula or other method (which index, formula or method
may be based, without limitation, on a currency or currencies (including
currency unit or units) other than that in which the Securities of the series
are denominated or designated to be payable), the index, formula or other method
by which such amounts shall be determined and any special voting or defeasance
provisions in connection therewith;

             (12) if other than the principal amount thereof, the portion of the
principal amount of such Securities of the series which shall be payable upon
declaration of acceleration thereof pursuant to Section 6.02 or the method by
which such portion shall be determined;

             (13) the Person to whom any interest on any Registered Security of
the series shall be payable and the manner in which, or the Person to whom, any
interest on any Bearer Securities of the series shall be payable;

             (14) provisions, if any, granting special rights to the Holders of
Securities of the series upon the occurrence of such events as may be specified;

             (15) any deletions from, modifications of or additions to the
Events of Default set forth in Section 6.01 or covenants of the Company set
forth in Article 4 pertaining to the Securities of the series;

             (16) under what circumstances, if any, and with what procedures and
documentation the Company will pay additional amounts on the Securities and
interest coupons, if any, of that series held by a Person who is not a U.S.
Person (including any modification of the definition of such term) in respect of
taxes, assessments or similar charges withheld or deducted and, if so, whether

                                      -10-

<PAGE>

the Company will have the option to redeem such Securities rather than pay such
additional amounts (and the terms of any such option);

             (17) whether Securities of the series shall be issuable as
Registered Securities or Bearer Securities (with or without interest coupons),
or both, and any restrictions applicable to the offering, sale, transfer or
delivery of Bearer Securities and, if other than as provided in Section 2.08,
the terms upon which Bearer Securities of a series may be exchanged for
Registered Securities of the same series and vice versa;

             (18) the date as of which any Bearer Securities of the series and
any temporary global Security representing outstanding securities of the series
shall be dated if other than the date of original issuance of the first Security
of the series to be issued;

             (19) the forms of the Securities and interest coupons, if any, of
the series;

             (20) the applicability, if any, to the Securities and interest
coupons, if any, of or within the series of Sections 8.02 and 8.03, or such
other means of defeasance or covenant defeasance as may be specified for the
Securities and interest coupons, if any, of such series, and whether, for the
purpose of such defeasance or covenant defeasance, the term "Government
Obligations" shall include obligations referred to in the definition of such
term which are not obligations of the United States or an agency or
instrumentality of the United States;

             (21) if other than the Trustee, the identity of the Registrar and
any Paying Agent;

             (22) if the Securities of the series shall be issued in whole or in
part in global form, (i) the Depositary for such global Securities, (ii) whether
beneficial owners of interests in any Securities of the series in global form
may exchange such interests for certificated Securities of such series, to be
registered in the names of or to be held by such beneficial owners or their
nominees and to be of like tenor of any authorized form and denomination, and
(iii) if other than as provided in Section 2.08, the circumstances under which
any such exchange may occur;

             (23) the designation of the Depositary;

             (24) any restrictions on the registration, transfer or exchange of
the Securities;

             (25) if the Securities of the series may be issued or delivered
(whether upon original issuance or upon exchange of a temporary Security of such
series or otherwise), or any installment of principal or interest is payable,
only upon receipt of certain certificates or other documents or satisfaction of
other conditions in addition to those specified in this Indenture, the form and
terms of such certificates, documents or conditions;

             (26) the terms and conditions of any right to convert or exchange
Securities of the series into or for Equity Securities of the Company or other
securities or property of the Company;

                                      -11-

<PAGE>

             (27) whether the Securities are secured or unsecured, and if
secured, the Security and related terms in connection therewith;

             (28) the relative degree, if any, to which the Securities of the
series shall be senior to or be subordinated to other series of Securities in
right of payment, whether such other series of Securities are Outstanding or
not; and

             (29) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture) including any terms which
may be required by or advisable under United States laws or regulations or
advisable (as determined by the Company) in connection with the marketing of
Securities of the series.

         (c) All Securities of any one series and interest coupons, if any,
appertaining thereto shall be substantially identical except as to denomination
and except as may otherwise be provided (i) by a Board Resolution, (ii) by
action taken pursuant to a Board Resolution and (subject to Section 2.04) set
forth, or determined in the manner provided, in the related Officers'
Certificate or (iii) in an indenture supplemental hereto. All Securities of any
one series need not be issued at the same time and, unless otherwise provided, a
series may be reopened, without the consent of the Holders, for issuances of
additional Securities of such series.

         (d) If any of the terms of the Securities of any series are established
by action taken pursuant to a Board Resolution, a copy of such Board Resolution
shall be delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth, or providing the manner for determining, the terms of
the Securities of such series, and an appropriate record of any action taken
pursuant thereto in connection with the issuance of any Securities of such
series shall be delivered to the Trustee prior to the authentication and
delivery thereof.

Section 2.03. DENOMINATIONS.

         Unless otherwise provided as contemplated by Section 2.02, any
Registered Securities of a series denominated in Dollars shall be issuable in
denominations of U.S. $1,000 and any integral multiple thereof and any Bearer
Securities of a series denominated in Dollars shall be issuable in the
denomination of U.S. $5,000 and any integral multiple thereof. Securities
denominated in a foreign currency shall be issuable in such denominations as are
established with respect to such Securities in or pursuant to this Indenture.

Section 2.04. EXECUTION AND AUTHENTICATION.

         An Officer shall sign the Securities for the Company by manual or
facsimile signature.

         If an Officer whose signature is on a Security no longer holds that
office at the time a Security is authenticated, the Security shall nevertheless
be valid.

         A Security shall not be valid until authenticated by the manual
signature of the Trustee. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

                                      -12-

<PAGE>

         The Trustee shall, upon a written order of the Company signed by an
Officer (an "Authentication Order"), authenticate Securities for original issue
up to the aggregate principal amount.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or an
Affiliate of the Company.

         Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 2.13 together with a written statement stating that such
Security has never been issued and sold by the Company, for all purposes of this
Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall not be entitled to the benefits of this Indenture.

Section 2.05. REGISTRAR AND PAYING AGENT.

         The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange ("Registrar") and an
office or agency where Securities may be presented for payment ("Paying Agent").
The Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term "Registrar" includes any co-registrar and the
term "Paying Agent" includes any additional paying agent. The Company may change
any Paying Agent or Registrar without notice to any Holder. The Company shall
notify the Trustee in writing of the name and address of any Agent not a party
to this Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

         The Company initially appoints The Depository Trust Company to act as
Depositary with respect to the Global Securities.

         The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Custodian with respect to the Global Securities.

Section 2.06. PAYING AGENT TO HOLD MONEY IN TRUST.

         The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or interest on the Securities, and will notify the Trustee of
any default by the Company in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to
the Trustee. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent
(if other than the Company or a Subsidiary) shall have no further liability for
the money. If the Company or a Subsidiary acts as Paying Agent, it shall

                                      -13-

<PAGE>

segregate and hold in a separate trust fund for the benefit of the Holders all
money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee shall serve as Paying Agent for
the Securities.

Section 2.07. HOLDER LISTS.

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders and shall otherwise comply with TIA ss.312(a). If the Trustee is not
the Registrar, the Company shall furnish to the Trustee at least seven Business
Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of the Holders of Securities
and the Company shall otherwise comply with TIA ss.312(a).

Section 2.08. TRANSFER AND EXCHANGE.

         (a) Upon surrender for registration of transfer of any Registered
Security of any series at the office or agency maintained pursuant to Section
4.02 in a place of payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Registered Securities of the same series, of any
authorized denominations and of a like aggregate principal amount and tenor and
containing identical terms and provisions.

         (b) Bearer Securities (except for any temporary global Bearer
Securities) or any interest coupons appertaining thereto (except for interest
coupons attached to any temporary global Bearer Security) shall be transferable
by delivery.

         (c) At the option of the Holder, Registered Securities of any series
(except a Registered Security in global form) may be exchanged for other
Registered Securities of the same series, of any authorized denominations, of a

                                      -14-

<PAGE>

like aggregate principal amount and tenor and containing identical terms and
provisions, upon surrender of the Registered Securities to be exchanged at such
office or agency. Whenever any Registered Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Registered Securities which the Holder making the exchange is
entitled to receive. Unless otherwise specified as contemplated by Section 2.02,
Bearer Securities may not be issued in exchange for Registered Securities.

         (d) Unless otherwise specified as contemplated by Section 2.02, at the
option of the Holder, Bearer Securities of such series may be exchanged for
Registered Securities (if the Securities of such series are issuable in
registered form) or Bearer Securities (if Bearer Securities of such series are
issuable in more than one denomination and such exchanges are permitted by such
series) of the same series, of any authorized denominations, of like aggregate
principal amount and tenor and containing identical terms and conditions, upon
surrender of the Bearer Securities to be exchanged at any such office or agency,
with all unmatured interest coupons and all matured interest coupons in default
thereto appertaining. If the Holder of a Bearer Security is unable to produce
any such unmatured interest coupon or coupons or matured interest coupon or
coupons in default, such exchange may be effected if the Bearer Securities are
accompanied by payment in funds acceptable to the Company and the Trustee in an
amount equal to the face amount of such missing interest coupon or coupons, or
the surrender of such missing interest coupon or interest coupons may be waived
by the Company and the Trustee if there be furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing interest coupon in respect of which such a payment
shall have been made, such Holder shall be entitled to receive the amount of
such payment; provided, however, that, except as otherwise provided in Section
4.02, interest represented by interest coupons shall be payable only upon
presentation and surrender of those interest coupons at an office or agency
located outside the United States. Notwithstanding the foregoing, in case any
Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of the same series after the close of
business at such office or agency on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any special record date and before the opening of business at such
office or agency on the related date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the interest coupon relating to
such Interest Payment Date or proposed date of payment, as the case may be (or,
if such interest coupon is so surrendered with such Bearer Security, such
interest coupon shall be returned to the Person so surrendering the Bearer
Security), and interest or Defaulted Interest, as the case may be, will not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of the Registered Security issued in exchange for such Bearer
Security, but will be payable only to the Holder of such interest coupon, when
due in accordance with the provisions of this Indenture.

         (e) Notwithstanding anything herein to the contrary, the exchange of
Bearer Securities for Registered Securities shall be subject to applicable laws
and regulations in effect at the time of exchange. Neither the Company, the
Trustee nor the Registrar shall exchange any Bearer Securities for Registered
Securities if it has received an Opinion of Counsel that as a result of such
exchange the Company would suffer adverse consequences under the United States

                                      -15-

<PAGE>

Federal income tax laws and regulations then in effect and the Company has
delivered to the Trustee a written order of the Company signed by an Officer
directing the Trustee not to make such exchanges thereafter, unless and until
the Trustee receives a written order of the Company signed by an Officer to the
contrary. The Company shall deliver copies of such written order of the Company
signed by an Officer to the Registrar.

         (f) Notwithstanding any other provision of this Section, unless and
until it is exchanged in whole or in part for Securities in certificated form, a
Security in global form representing all or a portion of the Securities of a
series may not be transferred except as a whole by the Depositary for such
series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or
any such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

         (g) If at any time the Depositary for the Securities of a series
notifies the Company that it is unwilling or unable to continue as Depositary
for the Securities of such series or if at any time the Depositary for the
Securities of such series shall no longer be eligible under Section 2.02, the
Company shall appoint a successor Depositary with respect to the Securities of
such series. If a successor Depositary for the Securities of such series is not
appointed by the Company prior to the resignation of the Depositary and, in any
event, within 90 days after the Company receives such notice or becomes aware of
such ineligibility, the Company's designation of the Depositary pursuant to
Section 2.02(b)(23) shall no longer be effective with respect to the Securities
of such series and the Company shall execute, and the Trustee, upon receipt of
an Authentication Order for the authentication and delivery of certificated
Securities of such series of like tenor, shall authenticate and deliver,
Securities of such series of like tenor in certificated form, in authorized
denominations and in an aggregate principal amount equal to the principal amount
of the Security or Securities of such series of like tenor in global form in
exchange for such Security or Securities in global form.

         (h) The Company may at any time in its sole discretion determine that
Securities issued in global form shall no longer be represented by such a
Security or Securities in global form. In such event the Company shall execute,
and the Trustee, upon receipt of an Authentication Order for the authentication
and delivery of certificated Securities of such series of like tenor, shall
authenticate and deliver, Securities of such series of like tenor in
certificated form, in authorized denominations and in an aggregate principal
amount equal to the principal amount of the Security or Securities of such
series of like tenor in global form in exchange for such Security or Securities
in global form.

         (i) If specified by the Company pursuant to Section 2.02 with respect
to a series of Securities, the Depositary for such series may surrender a
Security in global form of such series in exchange in whole or in part for
Securities of such series in certificated form on such terms as are acceptable
to the Company and such Depositary. Thereupon, the Company shall execute, and
the Trustee shall authenticate and deliver, without service charge,

             (i) to each Person specified by such depositary a new certificated
         Security or Securities of the same series of like tenor, of any
         authorized denomination as requested by such Person in aggregate

                                      -16-

<PAGE>

         principal amount equal to and in exchange for such Person's beneficial
         interest in the Security in global form;

         and

             (ii) to such Depositary a new Security in global form of like tenor
         in a denomination equal to the difference, if any, between the
         principal amount of the surrendered Security in global form and the
         aggregate principal amount of certificated Securities delivered to
         Holders thereof.

         (j) Upon the exchange of a Security in global form for Securities in
certificated form, such Security in global form shall be canceled by the
Trustee. Unless expressly provided with respect to the Securities of any series
that such Security may be exchanged for Bearer Securities, Securities in
certificated form issued in exchange for a Security in global form pursuant to
this Section shall be registered in such names and in such authorized
denominations as the Depositary for such Security in global form, pursuant to
instructions from its direct or Indirect Participants or otherwise, shall
instruct the Trustee in writing. The Trustee shall deliver such Securities to
the Persons in whose names such Securities are so registered.

         (k) Whenever any Securities are surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.

         (l) All Securities issued upon any registration of transfer or upon any
exchange of Securities shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the
Securities surrendered upon such registration of transfer or exchange.

         (m) Every Registered Security presented or surrendered for registration
of transfer or for exchange shall (if so required by the Company, the Registrar
or the Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company, the Registrar and the Trustee duly
executed by the Holder thereof or his attorney duly authorized in writing.

         (n) No service charge shall be made for any registration of transfer or
for any exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration or transfer or exchange of Securities, other
than exchanges pursuant to Section 2.12 or 3.06 not involving any transfer.

         (o) The Company shall not be required (i) to issue, register the
transfer of, or exchange any Securities for a period beginning at the opening of
business 15 days before any selection for redemption of Securities of like tenor
and of the series of which such Security is a part and ending at the close of
business on the earliest date on which the relevant notice of redemption is
deemed to have been given to all Holders of Securities of like tenor and of such
series to be redeemed; (ii) to register the transfer of or exchange any
Registered Security so selected for redemption, in whole or in part, except the
unredeemed portion of any Security being redeemed in part; or (iii) to exchange

                                      -17-

<PAGE>

any Bearer Security so selected for redemption, except that such a Bearer
Security may be exchanged for a Registered Security of that series and like
tenor; provided that such Registered Security shall be simultaneously
surrendered for redemption.

         (p) the foregoing provisions relating to registration, transfer and
exchange may be modified, supplemented or superseded with respect to any series
of Securities by a Board Resolution or in one or more indentures supplemental
hereto.

         (q) Legends. The following legend shall appear on the face of all
Global securities and definitive (bearer) securities under this Indenture unless
specifically stated otherwise in the applicable provision of this Indenture.

             (i) Global Security Legend. Each Global Security shall bear a
         legend in substantially the following form:

         "THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
         INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE
         BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
         PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE
         SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.09 OF
         THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT
         NOT IN PART, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE
         FOR CANCELLATION PURSUANT TO SECTION 2.13 OF THE INDENTURE AND (IV)
         THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH
         THE PRIOR WRITTEN CONSENT OF THE COMPANY."

         (r) Cancellation and/or Adjustment of Global Securities. At such time
as all beneficial interests in a particular Global Security have been exchanged
for definitive Securities or a particular Global Security has been redeemed,
repurchased or canceled in whole and not in part, each such Global Security
shall be returned to or retained and canceled by the Trustee in accordance with
Section 2.13 hereof. At any time prior to such cancellation, if any beneficial
interest in a Global Security is exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in another
Global Security or for definitive Securities, the principal amount of Securities
represented by such Global Security shall be reduced accordingly and an
endorsement shall be made on such Global Security by the Trustee or by the
Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global
Security, such other Global Security shall be increased accordingly and an
endorsement shall be made on such Global Security by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

                                      -18-

<PAGE>
     (s) General Provisions Relating to Transfers and Exchanges.

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate Global
         Securities upon the Company's order or at the Registrar's request.

                  (ii) No service charge shall be made to a holder of a
         beneficial interest in a Global Security or to a Holder of a Bearer
         Security for any registration of transfer or exchange, but the Company
         may require payment of a sum sufficient to cover any transfer tax or
         similar governmental charge payable in connection therewith (other than
         any such transfer taxes or similar governmental charge payable upon
         exchange or transfer).

                  (iii) The Registrar shall not be required to register the
         transfer of or exchange any Security selected for redemption in whole
         or in part, except the unredeemed portion of any Security being
         redeemed in part.

                  (iv) All Global Securities and Bearer Securities issued upon
         any registration of transfer or exchange of Global Securities or Bearer
         Securities shall be the valid obligations of the Company, evidencing
         the same debt, and entitled to the same benefits under this Indenture,
         as the Global Securities or Bearer Securities surrendered upon such
         registration of transfer or exchange.

                  (v) The Company shall not be required (A) to issue, to
         register the transfer of or to exchange any Securities during a period
         beginning at the opening of business 15 days before the day of any
         selection of Securities for redemption under Section 3.02 hereof and
         ending at the close of business on the day of selection, (B) to
         register the transfer of or to exchange any Security so selected for
         redemption in whole or in part, except the unredeemed portion of any
         Security being redeemed in part or (c) to register the transfer of or
         to exchange a Security between a record date and the next succeeding
         Interest Payment Date.

                  (vi) Prior to due presentment for the registration of a
         transfer of any Security, the Trustee, any Agent and the Company may
         deem and treat the Person in whose name any Security is registered as
         the absolute owner of such Security for the purpose of receiving
         payment of principal of and interest on such Securities and for all
         other purposes, and none of the Trustee, any Agent or the Company shall
         be affected by notice to the contrary.

                  (vii) The Trustee shall authenticate Global Securities and
         Bearer Securities in accordance with the provisions of Section 2.04
         hereof.

                  (viii) All certifications, certificates and Opinions of
         Counsel required to be submitted to the Registrar pursuant to this
         Section 2.08 to effect a registration of transfer or exchange may be
         submitted by facsimile.

                                      -19-

<PAGE>

Section 2.09. REPLACEMENT SECURITIES.

         If any mutilated Security is surrendered to the Trustee or the Company
and the Trustee receives evidence to its satisfaction of the destruction, loss
or theft of any Security, the Company shall issue and the Trustee, upon receipt
of an Authentication Order, shall authenticate a replacement Security if the
Trustee's requirements are met. If required by the Trustee or the Company, an
indemnity bond must be supplied by the Holder that is sufficient in the judgment
of the Trustee and the Company to protect the Company, the Trustee, any Agent
and any authenticating agent from any loss that any of them may suffer if a
Security is replaced. The Company may charge for its expenses in replacing a
Security.

         Every replacement Security is an additional obligation of the Company
and shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Securities duly issued hereunder.

Section 2.10. OUTSTANDING SECURITIES.

         The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest in a Global Security
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section as not outstanding. Except as set forth in Section
2.11 hereof, a Security does not cease to be outstanding because the Company or
an Affiliate of the Company holds the Security.

         If a Security is replaced pursuant to Section 2.09 hereof, it ceases to
be outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

         If the principal amount of any Security is considered paid under
Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to
accrue.

         If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Securities payable on that date, then on and after that date
such Securities shall be deemed to be no longer outstanding and shall cease to
accrue interest.

Section 2.11. TREASURY SECURITIES.

         In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company, shall
be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities that the Trustee knows are so
owned shall be so disregarded.

                                      -20-

<PAGE>

Section 2.12. TEMPORARY SECURITIES.

         Until certificates representing Securities are ready for delivery, the
Company may prepare and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form of certificated Securities but may have variations
that the Company considers appropriate for temporary Securities and as shall be
reasonably acceptable to the Trustee. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate definitive Securities in
exchange for temporary Securities.

         Holders of temporary Securities shall be entitled to all of the
benefits of this Indenture.

Section 2.13. CANCELLATION.

         The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee and no one else shall cancel all Securities surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
shall destroy canceled Securities (subject to the record retention requirement
of the Exchange Act). Certification of the destruction of all canceled
Securities shall be delivered to the Company. The Company may not issue new
Securities to replace Securities that it has paid or that have been delivered to
the Trustee for cancellation.

Section 2.14. DEFAULTED INTEREST.

         If the Company defaults in a payment of interest on the Securities, it
shall pay the defaulted interest in any lawful manner plus, to the extent
lawful, interest payable on the defaulted interest, to the Persons who are
Holders on a subsequent special record date, in each case at the rate provided
in the Securities and in Section 4.01 hereof. The Company shall notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on
each Security and the date of the proposed payment. The Company shall fix or
cause to be fixed each such special record date and payment date, provided that
no such special record date shall be less than 10 days prior to the related
payment date for such defaulted interest. At least 15 days before the special
record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be
mailed to Holders a notice that states the special record date, the related
payment date and the amount of such interest to be paid.

                                   ARTICLE 3.
                            REDEMPTION AND PREPAYMENT

Section 3.01. SELECTION OF SECURITIES TO BE REDEEMED.

         If less than all of the Securities are to be redeemed at any time, the
Trustee shall select the Securities to be redeemed among the Holders of the
Securities in compliance with the requirements of the principal national
securities exchange, if any, on which the Securities are listed or, if the

                                      -21-

<PAGE>

Securities are not so listed, to be redeemed among the Holders of Securities on
a pro rata basis, by lot or by such method as the Trustee deems fair and
appropriate; provided that no Securities of $1,000 or less shall be redeemed in
part. In the event of partial redemption by lot, the particular Securities to be
redeemed shall be selected, unless otherwise provided herein, not less than 30
nor more than 60 days prior to the redemption date by the Trustee from the
outstanding Securities not previously called for redemption.

         The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Security selected for
partial redemption, the principal amount thereof to be redeemed. Securities and
portions of Securities selected shall be in amounts of $1,000 or whole multiples
of $1,000; except that if all of the Securities of a Holder are to be redeemed,
the entire outstanding amount of Securities held by such Holder, even if not a
multiple of $1,000, shall be redeemed. A new Security in principal amount equal
to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. Securities called for
redemption shall become due on the redemption date. On and after the redemption
date, interest ceases to accrue on Securities or portions of them called for
redemption. Except as provided in this Section 3.01, provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

Section 3.02. NOTICE OF REDEMPTION.

         At least 30 days but not more than 60 days before a redemption date,
the Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Securities are to be redeemed at its registered
address.

         The notice shall identify the Securities to be redeemed and shall
state:

     (a) the redemption date;

     (b) the redemption price;

     (c) the name and address of the Paying Agent;

     (d) that Securities called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

     (e) that, unless the Company defaults in making such redemption payment,
interest on Securities called for redemption ceases to accrue on and after the
redemption date;

     (f) that any Security being redeemed in part, the portion of the principal
amount of such Security to be redeemed and that, after the redemption date upon
surrender of such Security, a new Security or Securities in principal amount
equal to the unredeemed portion shall be issued upon cancellation of the
original;

     (g) the paragraph of the Securities and/or Section of this Indenture
pursuant to which the Securities called for redemption are being redeemed; and

     (h) that no representation is made as to the correctness or accuracy of the
CUSIP number, if any, listed in such notice or printed on the Securities.

         At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the

                                      -22-

<PAGE>

Company shall have delivered to the Trustee, at least 30 days prior to the
redemption date, an Officers' Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph.

Section 3.03. EFFECT OF NOTICE OF REDEMPTION.

         Once notice of redemption is mailed in accordance with Section 3.02
hereof, Securities called for redemption become irrevocably due and payable on
the redemption date at the redemption price. A notice of redemption may not be
conditional.

Section 3.04. DEPOSIT OF REDEMPTION OR PURCHASE PRICE.

         One Business Day prior to 10:00 a.m. Eastern Time on any redemption
date, the Company shall deposit with the Trustee or with the Paying Agent money
in immediately available funds sufficient to pay the redemption or purchase
price of and accrued interest, if any, on all Securities to be redeemed or
purchased on that date. The Trustee or the Paying Agent shall promptly return to
the Company any money deposited with the Trustee or the Paying Agent by the
Company in excess of the amounts necessary to pay the redemption or purchase
price of, and accrued interest on, all Securities to be redeemed or purchased.

Section 3.05. SECURITIES REDEEMED OR PURCHASED IN PART.

         Upon surrender of a Security that is redeemed or purchased in part, the
Company shall issue and, upon the Company's written request, the Trustee shall
authenticate for the Holder at the expense of the Company a new Security equal
in principal amount to the unredeemed or unpurchased portion of the Security
surrendered.

Section 3.06. MANDATORY REDEMPTION.

         The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Securities.

                                   ARTICLE 4.
                                   COVENANTS

Section 4.01. PAYMENT OF SECURITIES.

         The Company shall pay or cause to be paid the principal of, premium, if
any, and interest on the Securities on the dates and in the manner provided in
the Securities. Principal, premium, if any, and interest shall be considered
paid on the date due if the Paying Agent, if other than the Company or a
Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date money
deposited by the Company in immediately available funds and designated for and
sufficient to pay all principal, premium, if any, and interest then due.

         The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
1% per annum in excess of the then applicable interest rate on the Securities to

                                      -23-

<PAGE>

the extent lawful; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace period) at the same rate to the extent
lawful.

Section 4.02. MAINTENANCE OF OFFICE OR AGENCY.

         The Company shall maintain in the Borough of Manhattan, the City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee, Registrar or co-Registrar) where Securities may be surrendered
for registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served.
The Company shall give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee.

         The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, the City of New York for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency.

         The Company hereby designates the Corporate Trust Office of the Trustee
as one such office or agency of the Company in accordance with Section 2.05.

Section 4.03. REPORTS.

     (a) Whether or not required by the rules and regulations of the SEC, so
long as any Securities are outstanding, the Company shall furnish to the Holders
of Securities (i) all quarterly and annual financial information that would be
required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the
Company were required to file such Forms, including "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and, with respect to
the annual information only, a report thereon by the Company's certified
independent accountants and (ii) all current reports that would be required to
be filed with the SEC on Form 8-K if the Company were required to file such
reports, in each case within the time periods specified in the SEC's rules and
regulations. In addition, the Company shall file a copy of all such information
and reports with the SEC for public availability within the time periods set
forth in the SEC's rules and regulations (unless the SEC will not accept such a
filing) and make such information available to securities analysts and
prospective investors upon request. In addition to the financial information
required by the Exchange Act, each such quarterly and annual report shall be
required to contain "summarized financial information" (as defined in Rule
1-02(aa)(1) of Regulation S-X under the Exchange Act) showing Adjusted Operating
Cash Flow for the Company and its Significant Subsidiaries, on a consolidated
basis, where Adjusted Operating Cash Flow for the Company is calculated in a
manner consistent with the manner described under the definition of "Adjusted

                                      -24-

<PAGE>

Operating Cash Flow" contained herein. The summarized financial information
required pursuant to the preceding sentence may, at the election of the Company,
be included in the footnotes to the audited consolidated financial statements or
unaudited quarterly financial statements of the Company and shall be as of the
same dates and for the same periods as the consolidated financial statements of
the Company and its Subsidiaries required pursuant to the Exchange Act.

Section 4.04. COMPLIANCE CERTIFICATE.

     (a) The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year, an Officers' Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company
has kept, observed, performed and fulfilled each and every covenant contained in
this Indenture and is not in default in the performance or observance of any of
the terms, provisions and conditions of this Indenture (or, if a Default or
Event of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is
taking or proposes to take with respect thereto) and that to the best of his or
her knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest on the Securities is
prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

     (b) The Company shall, so long as any of the Securities are outstanding,
deliver to the Trustee, forthwith upon any Officer of the Company becoming aware
of any Default or Event of Default, an Officers' Certificate specifying such
Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.

     (c) The Company shall file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from time to time by the
Commission, such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants provided for in this
Indenture, as may be required from time to time by such rules and regulations.

Section 4.05. CONTINUED EXISTENCE.

         Subject to Article 5 hereof, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect (i) its
corporate existence, and the corporate, partnership or other existence of each
of its Significant Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Significant Subsidiary and (ii) the rights (charter and
statutory), licenses and franchises of the Company and any of its Restrictive
Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any of its Significant Subsidiaries, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and its Significant Subsidiaries,

                                      -25-

<PAGE>

taken as a whole, and that the loss thereof is not adverse in any material
respect to the Holders of the Securities.

Section 4.06. WAIVER OF CERTAIN COVENANTS.

         Except as otherwise specified as contemplated by Section 2.02 for
Securities of such series, the Company may, with respect to the Securities of
any series, omit in any particular instance to comply with any term, provision
or condition set forth in any covenant provided pursuant to Section 2.02(15) and
9.01 for the benefit of the Holders of such series if before the time for such
compliance the Holders of at least a majority in principal amount of the
outstanding Securities of such series shall, by act of such, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

Section 4.07. STAY, EXTENSION AND USURY LAWS.

         The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, that may affect the covenants or
the performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it shall not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law has
been enacted.

                                   ARTICLE 5.
                                   SUCCESSORS

            Section 5.01. MERGER, CONSOLIDATION, OR SALE OF ASSETS.

         The Company shall not consolidate or merge with or into (whether or not
the Company is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets in one or more related transactions, to another corporation, Person or
entity unless (i) the Company is the surviving corporation or the entity or the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made is a corporation organized or existing
under the laws of the United States, any state thereof or the District of
Columbia; (ii) the entity or Person formed by or surviving any such
consolidation or merger (if other than the Company) or the entity or Person to
which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made assumes all the Obligations of the Company under the
Securities and this Indenture pursuant to a supplemental indenture in a form

                                      -26-

<PAGE>

reasonably satisfactory to the Trustee; and (iii) immediately after such
transaction no Default or Event of Default exists.

Section 5.02. SUCCESSOR CORPORATION SUBSTITUTED.

         Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the assets
of the Company in accordance with Section 5.01 hereof, the successor corporation
formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition is
made shall succeed to, and be substituted for (so that from and after the date
of such consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the "Company" shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided, however, that
the predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Securities except in the case of a sale of all
of the Company's assets that meets the requirements of Section 5.01 hereof.

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES

Section 6.01. EVENTS OF DEFAULT.

         An "Event of Default" occurs if:

         (a) the Company Defaults in the payment when due of interest on, with
respect to, the Securities and such Default continues for a period of 30 days;

         (b) the Company defaults in the payment when due of principal of or
premium, if any, on the Securities when the same becomes due and payable at
maturity, upon redemption or otherwise;

         (c) the Company fails to comply with any of the provisions of section
5.01 hereof;

         (d) the Company or any Subsidiary fails to observe or perform any other
covenant, representation, warranty or other agreement in this Indenture, the
Securities for 60 days after notice to comply;

         (e) a default occurs under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company (on the payment of which is
guaranteed by the Company), whether such Indebtedness or guarantee now exists,
or is created after the date of this Indenture, which default (i) is caused by a
failure to pay principal of or premium, if any, or interest on such Indebtedness
prior to the expiration of the grace period provided in such Indebtedness on the
date of such default (a "Payment Default") or (ii) results in the acceleration
of such Indebtedness prior to its express maturity and, in each case, the
principal amount of such Indebtedness, together with the principal amount of any
other such Indebtedness under which there has been a Payment Default or the

                                      -27-

<PAGE>

maturity of which has been so accelerated, aggregates to the amount specified in
the applicable supplemental indenture;

         (f) a final judgment or final judgments for the payment of money are
entered by a court or courts of competent jurisdiction against the Company or
any Subsidiary that would be a Significant Subsidiary and such judgment or
judgments remain unpaid, undischarged, or unstayed for a period of 60 days,
provided that the aggregate of all such undischarged judgments exceeds the
amount specified in the applicable supplemental indenture;

         (g) the Company or any of its Significant Subsidiaries or any group of
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary
pursuant to or within the meaning of Bankruptcy Law:

             (i) commences a voluntary case,

             (ii) consents to the entry of an order for relief against it in an
         involuntary case,

             (iii) consents to the appointment of a custodian of it or for all
         or substantially all of its property,

             (iv) makes a general assignment for the benefit of its creditors,
         or

             (v) generally is not paying its debts as they become due; or

         (h) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:

             (i) is for relief against the Company or any of its Significant
         Subsidiaries or any group of Subsidiaries that, taken as a whole, would
         constitute a Significant Subsidiary in an involuntary case;

             (ii) appoints a custodian of the Company or any of its Significant
         Subsidiaries or any group of Subsidiaries that, taken as a whole, would
         constitute a Significant Subsidiary or for all or substantially all of
         the property of the Company or any of its Significant Subsidiaries or
         any group of Subsidiaries that, taken as a whole, would constitute a
         Significant Subsidiary; or

             (iii) orders the liquidation of the Company or any of its
         Significant Subsidiaries or any group of Subsidiaries that, taken as a
         whole, would constitute a Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days.

         The term "custodian" as used in this Article VI means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

                                      -28-

<PAGE>

                  An Event of Default shall not be deemed to have occurred under
clause (c), (e) or (f) until the Trustee shall have received at the Corporate
Trust Office of the Trustee written notice from the Company or any of the
Holders or unless a Responsible Officer shall have actual knowledge of such
Event of Default. A Default under clause (e) is not an Event of Default until
the Trustee notifies the Company, or the Holders of at least 25% in principal
amount of the then outstanding Securities notify the Company and the Trustee, of
the Default and the Company does not cure the Default within 60 days after
receipt of the notice. The notice must specify the Default, demand that it be
remedied and state that the notice is a "Notice of Default."

Section 6.02. ACCELERATION.

         If any Event of Default (other than an Event of Default specified in
clause (g) or (h) of Section 6.01 hereof) occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the then outstanding
Securities may declare all the Securities to be due and payable immediately.
Upon any such declaration, the principal of, premium, if any, and accrued and
unpaid interest on the Securities shall become due and payable immediately.
Notwithstanding the foregoing, if an Event of Default specified in clause (g) or
(h) of Section 6.01 hereof occurs with respect to the Company, any of its
Significant Subsidiaries, or any group that, taken as a whole, would constitute
a Significant Subsidiary, all outstanding Securities shall be due and payable
immediately without further action or notice, provided that the payment of
principal and interest on such Securities shall remain subordinated to the
extent provided in Article 11. Holders of the Securities may not enforce this
Indenture or the Securities except as provided in this Indenture. Subject to
certain limitations, Holders of a majority in principal amount of the then
outstanding Securities may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Holders of the Securities notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest ) if it determines that
withholding notice is in their interest.

Section 6.03. OTHER REMEDIES.

         If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal, premium, if any, and
interest on the Securities or to enforce the performance of any provision of the
Securities or this Indenture.

         The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Security in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04. WAIVER OF PAST DEFAULTS.

         Holders of not less than a majority in aggregate principal amount of
the then outstanding Securities by notice to the Trustee may on behalf of the
Holders of all of the Securities waive an existing Default or Event of Default
and its consequences hereunder, except a continuing Default or Event of Default

                                      -29-

<PAGE>

in the payment of the principal of, premium, if any, or interest on, the
Securities (including in connection with an offer to purchase); provided,
however, that the Holders of a majority in aggregate principal amount of the
then outstanding Securities may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration. Upon
any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

Section 6.05. CONTROL BY MAJORITY.

         Holders of a majority in principal amount of the then outstanding
Securities may direct the time, method and place of conducting any proceeding
for exercising any remedy available to the Trustee or exercising any trust or
power conferred on it. However, the Trustee may refuse to follow any direction
that conflicts with law or this Indenture that the Trustee determines may be
unduly prejudicial to the rights of other Holders of Securities or that may
involve the Trustee in personal liability.

Section 6.06. LIMITATION ON SUITS.

         A Holder of a Security may pursue a remedy with respect to this
Indenture or the Securities only if:

     (a) the Holder of a Security gives to the Trustee written notice of a
continuing Event of Default;

     (b) the Holders of at least 25% in principal amount of the then outstanding
Securities make a written request to the Trustee to pursue the remedy;

     (c) such Holder of a Security or Holders of Securities offer and, if
requested, provide to the Trustee indemnity satisfactory to the Trustee against
any loss, liability or expense;

     (d) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer and, if requested, the provision of
indemnity; and

     (e) during such 60-day period the Holders of a majority in principal amount
of the then outstanding Securities do not give the Trustee a direction
inconsistent with the request.

         A Holder of a Security may not use this Indenture to prejudice the
rights of another Holder of a Security or to obtain a preference or priority
over another Holder of a Security.

Section 6.07. RIGHTS OF HOLDERS OF SECURITIES TO RECEIVE PAYMENT.

                  Notwithstanding any other provision of this Indenture, the
right of any Holder of a Security to receive payment of principal, premium, if
any, and interest on the Security, on or after the respective due dates

                                      -30-

<PAGE>

expressed in the Security (including in connection with an offer to purchase),
or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

Section 6.08. COLLECTION SUIT BY TRUSTEE.

         If an Event of Default specified in Section 6.01(a) or (b) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name and
as Trustee of an express trust against the Company for the whole amount of
principal of, premium, if any, and interest remaining unpaid on the Securities
and interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

Section 6.09. TRUSTEE MAY FILE PROOFS OF CLAIM.

         The Trustee is authorized to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Securities allowed in any judicial proceedings relative to the
Company (or any other obligor upon the Securities), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof out of the estate in any such proceeding, shall be denied
for any reason, payment of the same shall be secured by a Lien on, and shall be
paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder, or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

Section 6.10. PRIORITIES.

         If the Trustee collects any money pursuant to this Article, it shall
pay out the money in the following order:

         First: to the Trustee, its agents and attorneys for amounts due under
Section 7.07 hereof, including payment of all compensation, expense and
liabilities incurred, and all advances made, by the Trustee and the costs and
expenses of collection;

                                      -31-

<PAGE>

         Second: to Holders of Securities for amounts due and unpaid on the
Securities for principal, premium, if any, and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Securities for principal, premium, if any, and interest, respectively; and

         Third: to the Company or to such party as a court of competent
jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders of Securities pursuant to this Section 6.10.

Section 6.11. UNDERTAKING FOR COSTS.

         In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section does not apply to a suit by the Trustee, a suit by a Holder of a
Security pursuant to Section 6.07 hereof, or a suit by Holders of more than 10%
in principal amount of the then outstanding Securities.

                                   ARTICLE 7.
                                    TRUSTEE

Section 7.01. DUTIES OF TRUSTEE.

         (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in its exercise, as a prudent person would
exercise or use under the circumstances in the conduct of its own affairs.

         (b) Except during the continuance of an Event of Default:

             (i) the duties of the Trustee shall be determined solely by the
         express provisions of this Indenture and the Trustee need perform only
         those duties that are specifically set forth in this Indenture and no
         others, and no implied covenants or obligations shall be read into this
         Indenture against the Trustee; and

             (ii) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

         (c) The Trustee may not be relieved from liabilities for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                                      -32-

<PAGE>

             (i) this paragraph does not limit the effect of paragraph (b) of
         this Section;

             (ii) the Trustee shall not be liable for any error of judgment made
         in good faith by a Responsible Officer, unless it is proven that the
         Trustee was negligent in ascertaining the pertinent facts; and

             (iii) the Trustee shall not be liable with respect to any action it
         takes or omits to take in good faith in accordance with a direction
         received by it pursuant to Section 6.05 hereof.

         (d) Whether or not therein expressly so provided, every provision of
this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), and (c) of this Section.

         (e) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or incur any liability. The Trustee shall be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holders shall have offered to the Trustee
security and indemnity satisfactory to it against any loss, liability or
expense.

         (f) The Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

Section 7.02. RIGHTS OF TRUSTEE.

         (a) The Trustee may conclusively rely upon any document believed by it
to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

         (b) Before the Trustee acts or refrains from acting, it may require an
Officers' Certificate or an Opinion of Counsel or both. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers' Certificate or Opinion of Counsel. The Trustee may consult with
counsel and the written advice of such counsel or any Opinion of Counsel shall
be full and complete authorization and protection from liability in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon.

         (c) The Trustee may act through its attorneys and agents and shall not
be responsible for the misconduct or negligence of any agent appointed with due
care.

         (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.

         (e) Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.

                                      -33-

<PAGE>

         (f) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that might be incurred by it in compliance with such request or direction.

Section 7.03. INDIVIDUAL RIGHTS OF TRUSTEE.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

Section 7.04. TRUSTEE'S DISCLAIMER.

         The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture or the Securities, it shall not be
accountable for the Company's use of the proceeds from the Securities or any
money paid to the Company or upon the Company's direction under any provision of
this Indenture, it shall not be responsible for the use or application of any
money received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the
Securities or any other document in connection with the sale of the Securities
or pursuant to this Indenture other than its certificate of authentication.

Section 7.05. NOTICE OF DEFAULTS.

         If a Default or Event of Default occurs and is continuing and if a
Responsible Officer of the Trustee has actual knowledge of such Default or Event
of Default, the Trustee shall mail to Holders of Securities a notice of the
Default or Event of Default within 90 days after it occurs. Except in the case
of a Default or Event of Default in payment of principal of, or interest on, any
Security, the Trustee may withhold the notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice is
in the interests of the Holders of the Securities.

Section 7.06. REPORTS BY TRUSTEE TO HOLDERS OF THE SECURITIES.

         Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, and for so long as Securities remain outstanding,
the Trustee shall mail to the Holders of the Securities a brief report dated as
of such reporting date that complies with TIA ss. 313(a) (but if no event
described in TIA ss. 313(a) has occurred within the twelve months preceding the
reporting date, no report need be transmitted). The Trustee also shall comply
with TIA ss. 313(b)(2). The Trustee shall also transmit by mail all reports as
required by TIA ss. 313(c). A copy of each report at the time of its mailing to
the Holders of Securities shall be mailed to the Company and filed with the SEC
and each stock exchange on which the Securities are listed in accordance with

                                      -34-

<PAGE>

TIA ss. 313(d). The Company shall promptly notify the Trustee when the
Securities are listed on any stock exchange.

Section 7.07. COMPENSATION AND INDEMNITY.

         The Company shall pay to the Trustee from time to time such
compensation for its acceptance of this Indenture and services hereunder as the
Company and Trustee have separately agreed. The Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee's agents and counsel.

         The Company shall indemnify the Trustee against any and all losses,
liabilities or expenses incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Indenture, including the
costs and expenses of enforcing this Indenture against the Company (including
this Section 7.07) and defending itself against any claim (whether asserted by
the Company or any Holder or any other person) or liability in connection with
the exercise or performance of any of its powers or duties hereunder, except to
the extent any such loss, liability or expense may be attributable to its
negligence or bad faith. The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company
shall defend the claim and the Trustee shall cooperate in the defense. The
Trustee may have separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel. The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld.

         The obligations of the Company under this Section 7.07 shall survive
the satisfaction and discharge of this Indenture.

         To secure the Company's payment obligations in this Section, the
Trustee shall have a Lien prior to the Securities on all money or property held
or collected by the Trustee, except that held in trust to pay principal and
interest on particular Securities. Such Lien shall survive the satisfaction and
discharge of this Indenture.

         When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(g) or (h) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

         The Trustee shall comply with the provisions of TIA ss. 313(b)(2) to
the extent applicable.

                                      -35-

<PAGE>

Section 7.08. REPLACEMENT OF TRUSTEE.

         A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section.

         The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Holders of a majority
in principal amount of the then outstanding Securities may remove the Trustee by
so notifying the Trustee and the Company in writing. The Company may remove the
Trustee if:

     (a) the Trustee fails to comply with Section 7.10 hereof;

     (b) the Trustee is adjudged a bankrupt or an insolvent or an order for
relief is entered with respect to the Trustee under any Bankruptcy Law;

     (c) a custodian or public officer takes charge of the Trustee or its
property; or

     (d) the Trustee becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Securities may appoint
a successor Trustee to replace the successor Trustee appointed by the Company.

         If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company, or
the Holders of at least 10% in principal amount of the then outstanding
Securities may petition any court of competent jurisdiction for the appointment
of a successor Trustee.

         If the Trustee, after written request by any Holder of a Security who
has been a Holder of a Security for at least six months, fails to comply with
Section 7.10, such Holder of a Security may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of the Securities. The retiring Trustee shall promptly
transfer all property held by it as Trustee to the successor Trustee, provided
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company's obligations under Section 7.07
hereof shall continue for the benefit of the retiring Trustee.

                                      -36-

<PAGE>

Section 7.09. SUCCESSOR TRUSTEE BY MERGER, ETC.

         If the Trustee consolidates, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation,
the successor corporation without any further act shall be the successor
Trustee.

Section 7.10. ELIGIBILITY; DISQUALIFICATION.

         There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least the amount
specified in the applicable supplemental indenture as set forth in its most
recent published annual report of condition.

         This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee is subject to TIA
ss. 310(b).

Section 7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

         The Trustee is subject to TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) Section 0.01 to the extent indicated
therein.

                                   ARTICLE 8.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01. OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE.

                  The Company may, at the option of its Board of Directors
evidenced by a resolution set forth in an Officers' Certificate, at any time,
elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding
Securities of one or more series upon compliance with the conditions set forth
below in this Article 8.

SECTION 8.02. LEGAL DEFEASANCE AND DISCHARGE.

         Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, relating to one or more series of Securities,
the Company shall, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be deemed to have been discharged from its obligations with
respect to all outstanding Securities of such series on the date the conditions
set forth below are satisfied (hereinafter, "Legal Defeasance"). For this
purpose, Legal Defeasance means that the Company shall be deemed to have paid
and discharged the entire Indebtedness represented by the outstanding Securities
of the applicable series, which shall thereafter be deemed to be "outstanding"
only for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all of its
other Obligations under the Securities of the applicable series and this
Indenture (and the Trustee, on demand of and at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Securities of the
applicable series to receive solely from the trust fund described in Section
8.04 hereof, and as more fully set forth in such Section, payments in respect of
the principal of, premium, if any, and interest, on such Securities

                                      -37-

<PAGE>

when such payments are due, (b) the Company's obligations with respect to such
Securities under Article 2 and Section 4.02 hereof, (c) the rights, powers,
trusts, duties and immunities of the Trustee hereunder, and the Company's
obligations in connection therewith and (d) this Article 8. Subject to
compliance with this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03
hereof.

Section 8.03. COVENANT DEFEASANCE.

         Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03 relating to one or more series of Securities,
the Company shall, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be released from its obligations under the covenants
contained in Sections 3.09 and 5.01 hereof with respect to the outstanding
Securities of the applicable series on and after the date the conditions set
forth below are satisfied (hereinafter, "Covenant Defeasance"), and the
Securities of the applicable series shall thereafter be deemed not "outstanding"
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants,
but shall continue to be deemed "outstanding" for all other purposes hereunder
(it being understood that the Securities of the applicable series shall not be
deemed outstanding for accounting purposes). For this purpose, Covenant
Defeasance means that, with respect to the "outstanding" Securities of the
applicable series, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and such
Securities shall be unaffected thereby. In addition, upon the Company's exercise
under Section 8.01 hereof of the option applicable to this Section 8.03, subject
to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections
6.01(d) through 6.01(f) hereof shall not constitute Events of Default.

Section 8.04. CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.

         The following shall be the conditions to the application of either
Section 8.02 or 8.03 hereof to the outstanding Securities of one or more series:

         In order to exercise either Legal Defeasance or Covenant Defeasance:

     (a) the Company must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders of the Securities of the applicable series, cash in
United States dollars, non-callable Government Securities, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay the principal of,
interest and premium, if any, on the outstanding Securities of the applicable
series on the stated maturity or on the applicable redemption date, as the case
may be, and the Company must specify whether the Securities of the applicable
series are being defeased to maturity or to a particular redemption date;

                                      -38-

<PAGE>

     (b) in the case of an election under Section 8.02 hereof, the Company shall
have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling or (ii) since the date of this Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
outstanding Securities of the applicable series will not recognize income, gain
or loss for federal income tax purposes as a result of such Legal Defeasance and
will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had
not occurred;

     (c) in the case of an election under Section 8.03 hereof, the Company shall
have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that the Holders of the
outstanding Securities of the applicable series will not recognize income, gain
or loss for federal income tax purposes as a result of such Covenant Defeasance
and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;

     (d) no Default or Event of Default shall have occurred and be continuing on
the date of such deposit (other than a Default or Event of Default resulting
from the borrowing of funds to be applied to such deposit) or insofar as
Sections 6.01(g) or (h) hereof are concerned, at any time in the period ending
on the 91st day after the date of deposit (or greater period of time in which
any such deposit of trust funds may remain subject to bankruptcy or insolvency
laws insofar as those apply to the deposit by the Company);

     (e) such Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

     (f) the Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that, as of the date of such opinion, (i) the trust funds will not
be subject to the rights of holders of Indebtedness other than the Securities of
the applicable series and (ii) assuming no intervening bankruptcy of the Company
between the date of deposit and the 91st day (or greater period of time in which
any such deposit of trust funds may remain subject to bankruptcy or insolvency
laws insofar as those apply to the deposit by the Company) following the deposit
and assuming no Holder of Securities is an insider of the Company, after the
91st day (or later date until which any such deposit of trust funds may remain
subject to bankruptcy or insolvency laws insofar as those apply to the deposit
by the Company) following the deposit, the trust funds will not be subject to
the effects of any applicable bankruptcy, insolvency, reorganization or similar
laws affecting creditors' rights generally under any applicable United States or
state law;

     (g) the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders of Securities of the applicable series over the other
creditors of the Company or with the intent of defeating, hindering, delaying or
defrauding creditors of the Company or others; and

                                      -39-

<PAGE>

     (h) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

Section 8.05. DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST;
              OTHER MISCELLANEOUS PROVISIONS.

         Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding
Securities of the applicable series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Securities of all sums due and to become due thereon in
respect of principal, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding
Securities of the applicable series.

         Anything in this Article 8 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(a) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance
of the applicable series.

Section 8.06. REPAYMENT TO COMPANY.

         Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of, premium or
interest on any Security and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
a secured creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

                                      -40-

<PAGE>

Section 8.07. REINSTATEMENT.

         If the Trustee or Paying Agent is unable to apply any United States
dollars or non-callable Government Securities in accordance with Section 8.02 or
8.03 hereof, as the case may be, by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations of the Company under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying
Agent is permitted to apply all such money in accordance with Section 8.02 or
8.03 hereof, as the case may be; provided, however, that, if the Company makes
any payment of principal of, premium or interest on any Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money held by
the Trustee or Paying Agent.

                                   ARTICLE 9.
                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01. WITHOUT CONSENT OF HOLDERS OF SECURITIES.

         Notwithstanding Section 9.02 of this Indenture, the Company and the
Trustee may amend or supplement this Indenture or the Securities without the
consent of any Holder of a Security:

     (a) to cure any ambiguity, defect or inconsistency;

     (b) to provide for the assumption of the Company's obligations to Holders
of Securities in the case of a merger or consolidation pursuant to Article 5
hereof, as applicable;

     (c) modify the provisions in Article 11 of this Indenture with respect to
the subordination of outstanding securities of any series in a manner not
adverse to the Holders thereof;

     (d) to make any change that would provide any additional rights or benefits
to the Holders of Securities or that does not adversely affect the legal rights
hereunder of any such Holder; or

     (e) to comply with the requirements of the SEC in order to effect or
maintain the qualification of this Indenture under the TIA or to allow any other
person to guarantee the Securities.

         Upon the request of the Company accompanied by a resolution of the
Board of Directors of the Company authorizing the execution of any such amended
or supplemental Indenture, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee shall join with the Company in the
execution of any amended or supplemental Indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and

                                      -41-

<PAGE>

stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

Section 9.02. WITH CONSENT OF HOLDERS OF SECURITIES.

         Except as provided below in this Section 9.02, the Company and the
Trustee may amend or supplement this Indenture or the Securities may be amended
or supplemented with the consent of the Holders of at least a majority in
principal amount of the Securities then outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities), and, subject to Sections 6.04 and 6.07
hereof, any existing Default or Event of Default (other than a Default or Event
of Default in the payment of the principal of, premium or interest on the
Securities) or compliance with any provision of this Indenture or the Securities
may be waived with the consent of the Holders of a majority in principal amount
of the then outstanding Securities (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for
the Securities). Any amendment to the provisions of Article 12 hereof including
the related definitions will require the consent of the Holders of at least 75%
in aggregate principal amount of the Securities then outstanding if such
amendment would adversely affect the rights of Holders of Securities.

         Upon the request of the Company accompanied by a resolution of the
Board of Directors of the Company, authorizing the execution of any such amended
or supplemental Indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Securities as
aforesaid, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee shall join with the Company in the execution of such
amended or supplemental Indenture unless such amended or supplemental Indenture
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amended or supplemental Indenture.

         It shall not be necessary for the consent of the Holders of Securities
under this Section 9.02 to approve the particular form of any proposed amendment
or waiver, but it shall be sufficient if such consent approves the substance
thereof.

         After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders of Securities affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such amended or
supplemental Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the
Holders of a majority in aggregate principal amount of the Securities then
outstanding may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Securities. However, without the consent

                                      -42-

<PAGE>

of each Holder affected, an amendment or waiver may not (with respect to any
Securities held by a non-consenting Holder):

     (a) reduce the principal amount of Securities whose Holders must consent to
an amendment, supplement or waiver;

     (b) reduce the principal of or change the fixed maturity of any Security or
alter the provisions with respect to the redemption of the Securities (other
than provisions relating to Section 3.09 hereof);

     (c) reduce the rate of or change the time for payment of interest,
including default interest, on any Security;

     (d) waive a Default or Event of Default in the payment of principal of or
interest or premium on the Securities (except a rescission of acceleration of
the Securities by the Holders of a majority in aggregate principal amount of the
Securities and a waiver of the payment default that resulted from such
acceleration);

     (e) make any Security payable in money other than that stated in the
Securities;

     (f) make any change in the provisions of this Indenture relating to waivers
of past Defaults or the rights of Holders of Securities to receive payments of
principal of or interest or premium on the Securities;

     (g) waive a redemption payment with respect to any Security (other than a
payment required by the provisions of Section 3.09 hereof);

     (h) modify the provisions in Article 11 of this Indenture with respect to
the subordination of outstanding securities of any series in a manner adverse to
the Holders thereof; or

     (i) make any change in Section 6.04 or 6.07 hereof or in the foregoing
amendment and waiver provisions.

Section 9.03. COMPLIANCE WITH TRUST INDENTURE ACT.

         Every amendment or supplement to this Indenture or the Securities shall
be set forth in an amended or supplemental Indenture that complies with the TIA
as then in effect.

Section 9.04. REVOCATION AND EFFECT OF CONSENTS.

         Until an amendment, supplement or waiver becomes effective, a consent
to it by a Holder of a Security is a continuing consent by the Holder of a

                                      -43-

<PAGE>

Security and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder's Securities, even if notation
of the consent is not made on any Securities. However, any such Holder of a
Security or subsequent Holder of a Security may revoke the consent as to its
Securities if the Trustee receives written notice of revocation before the date
the waiver, supplement or amendment becomes effective. An amendment, supplement
or waiver becomes effective in accordance with its terms and thereafter binds
every Holder.

Section 9.05. NOTATION ON OR EXCHANGE OF SECURITIES.

         The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Securities thereafter authenticated. The Company in
exchange for all Securities may issue and the Trustee shall authenticate new
Securities that reflect the amendment, supplement or waiver.

         Failure to make the appropriate notation or to issue new Securities
shall not affect the validity and effect of such amendment, supplement or
waiver.

Section 9.06. TRUSTEE TO SIGN AMENDMENTS, ETC.

         The Trustee shall sign any amendment or supplemental Indenture
authorized pursuant to this Article 9 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
The Company may not sign an amendment or supplemental Indenture until its Board
of Directors approves it. If it does, the Trustee may, but need not, sign it. In
signing or refusing to sign such amendment or supplemental Indenture, the
Trustee shall be entitled to receive and, subject to Section 7.01 hereof, shall
be fully protected in relying upon, an Officers' Certificate and an Opinion of
Counsel as conclusive evidence that such amendment or supplemental Indenture is
authorized or permitted by this Indenture, that it is not inconsistent herewith,
and that it will be valid and binding upon the Company in accordance with its
terms.

                                  ARTICLE 10.
                      CONVERSION OR EXCHANGE OF SECURITIES

Section 10.01. APPLICABILITY OF ARTICLE.

     (a) The provisions of this Article 10 shall be applicable to the Securities
of any series which are convertible or exchangeable into Equity Securities of
the Company, and to the issuance of such Equity Securities upon the conversion
or exchange of such Securities, except as otherwise specified as contemplated by
Section 2.02 for the Securities of such series.

     (b) For purposes of this Article 10, the term "Equity Securities" shall
mean all or any of the following, authorized from time to time: (i) the Class A
Common Stock, (ii) the Company's Non-voting Common Stock par value $.01 per
share (together with the Class A Common Stock, the "Common Stock"), (iii) the
Company's Preferred Stock par value $.01 per share (the "Preferred Stock"), and
(iv) any other equity securities of the Company.

                                      -44-

<PAGE>

Section 10.02. EXERCISE OF CONVERSION OR EXCHANGE PRIVILEGE.

     (a) In order to exercise a conversion or exchange privilege, the Holder of
a Security of a series with such privilege shall surrender such Security,
together, in the case of any Bearer Security, with all unmatured interest
coupons and any matured interest coupons in default appertaining thereto, to the
Company at the office or agency maintained for that purpose pursuant to Section
4.02, accompanied by written notice to the Company that the Holder elects to
convert or exchange such Security or a specified portion thereof. Such notice
shall also state, if different from the name and address of such Holder, the
name or names (with address) in which the certificate or certificates for Equity
Securities which shall be issuable on such conversion or exchange shall be
issued. Registered Securities surrendered for conversion or exchange shall (if
so required by the Company or the Trustee) be duly endorsed by or accompanied by
instruments of transfer in forms satisfactory to the Company and the Trustee
duly executed by the registered Holder or its attorney duly authorized in
writing.

     (b) Registered Securities so surrendered for conversion or exchange during
the period from the close of business on any Regular Record Date to the opening
of business on the corresponding Interest Payment Date (excluding Securities or
portions thereof called for redemption during such period) shall also be
accompanied by payment in funds acceptable to the Company of an amount equal to
the interest payable on such Interest Payment Date on the principal amount of
such Security then being converted or exchanged, and such interest shall be
payable to such registered Holder on such Interest Payment Date notwithstanding
the conversion or exchange of such Security.

     (c) As promptly as practicable after the receipt of such notice and of any
payment required pursuant to a Board Resolution and, subject to Section 2.04,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto setting forth the
terms of such series of Security, and the surrender of such Security in
accordance with such reasonable regulations as the Company may prescribe, the
Company shall issue and shall deliver, at the office or agency at which such
Security is surrendered, to such Holder or on its written order, a certificate
or certificates for the number of Equity Securities issuable upon the conversion
or exchange of such Security (or specified portion thereof), in accordance with
the provisions of such Board Resolution, Officers' Certificate or supplemental
indenture, and cash as provided therein in respect of any fractional share of
such Equity Security otherwise issuable upon such conversion or exchange.

     (d) Such conversion or exchange shall be deemed to have been effected
immediately prior to the close of business on the date on which such notice and
such payment, if required, shall have been received in proper order for
conversion or exchange by the Company and such Security shall have been
surrendered as aforesaid and at such time the rights of the Holder of such
Security as such Security Holder shall cease and the person or persons in whose
name or names any certificate or certificates for Equity Securities of the
Company shall be issuable upon such conversion or exchange shall be deemed to
have become the Holder or Holders of record of the Equity Securities represented
thereby. No payment or adjustment shall be made upon any conversion or exchange
on account of any interest accrued on the Securities surrendered for conversion
or exchange, or on account of any dividends on the Equity Securities of the

                                      -45-

<PAGE>

Company issued upon such conversion or exchange if the record date for the
payment of such dividends occurs prior to or on the date on which such
conversion or exchange shall be deemed to have been effected.

         In the case of any Security which is converted or exchanged in part
only, upon such conversion or exchange the Company shall execute and the Trustee
shall authenticate and deliver to or on the order of the Holder thereof, at the
expense of the Company, a new Security or Securities of the same series, of
authorized denominations, in aggregate principal amount equal to the unconverted
or unexchanged portion of such Security.

Section 10.03. NO FRACTIONAL EQUITY SECURITIES.

         No fractional Equity Security of the Company shall be issued upon
conversions or exchanges of Securities of any series. If more than one Security
shall be surrendered for conversion or exchange at one time by the same Holder,
the number of full shares of the Equity Security which shall be issuable upon
conversion or exchange shall be computed on the basis of the aggregate principal
amount of the Securities (or specified portions thereof to the extent permitted
hereby) so surrendered. If, except for the provisions of this Section 10.03, any
Holder of a Security or Securities would be entitled to a fractional share of
any Equity Security of the Company upon the conversion or exchange of such
Security or Securities, or specified portions thereof, the Company shall pay to
such Holder an amount in cash equal to the current market value of such
fractional share computed, (i) if such Equity Security is listed or admitted to
unlisted trading privileges on a national securities exchange, on the basis of
the last reported sale price regular way on the principal exchange where such
Equity Security is listed or admitted, on the last trading day prior to the date
of conversion or exchange upon which such a sale shall have been effected, (ii)
if such Equity Security is not at the time so listed or admitted on a national
securities exchange but is quoted on the Nasdaq Stock Market, on the basis of
the average of the bid and asked prices of such Equity Security on the Nasdaq
Stock Market on the last trading day prior to the date of conversion or
exchange, (iii) if such Equity Security is not at the time so listed or admitted
to unlisted trading privileges on a national securities exchange or quoted on
the Nasdaq Stock Market, on the basis of the average of the bid and asked prices
of such Equity Security in the over-the-counter market, on the last trading day
prior to the date of conversion or exchange, as reported by the National
Quotation Bureau Incorporated or similar organization if the National Quotation
Bureau Incorporated is no longer reporting such information, or (iv) in
accordance with the terms of the supplemental indenture or Board Resolutions
setting the terms of the Securities of such series. For purposes of this
Section, "trading day" shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday other than any day on which the applicable Equity Security is not traded
or quoted on a national securities exchange, or if the applicable Equity
Security is not traded or quoted on a national securities exchange, on the
Nasdaq Stock Market or the principal exchange or market on which the applicable
Equity Security is traded or quoted.

                                      -46-

<PAGE>

Section 10.04. ADJUSTMENT OF CONVERSION OR EXCHANGE PRICE; CONSOLIDATION OR
               MERGER.

         The conversion or exchange price of Securities of any series that is
convertible or exchangeable into an Equity Security of the Company shall be
adjusted for any stock dividends, stock splits, reclassification, combinations
or similar transactions, and the securities, assets or other property into or
for which such Securities may be converted or exchanged as a result of any
consolidation, merger, combination or similar transaction shall be determined,
in accordance with the terms of the supplemental indenture or Board Resolutions
setting the terms of the Securities of such series.

         Whenever the conversion or exchange price is adjusted, the Company
shall compute the adjusted conversion or exchange price in accordance with the
terms of the applicable Board Resolution or supplemental indenture and shall
prepare an Officers' Certificate setting forth the adjusted conversion or
exchange price and showing in reasonable detail the facts upon which such
adjustment is based. Whenever the securities, assets or other property into or
for which Securities of any series may be converted or exchanged are changed as
a result of any consolidation, merger or similar transaction, the Company shall
determine the nature and amount of such securities, assets or other property in
accordance with the terms of the applicable Board Resolution or supplemental
indenture and shall prepare an Officers' Certificate describing such securities,
assets or other property and stating the amount of such securities, assets or
other property into or for which such Securities have become convertible or
exchangeable. Such certificates shall forthwith be filed at each office or
agency maintained for the purpose of conversion or exchange of Securities
pursuant to Section 4.02 and, if different, with the Trustee. The Company shall
forthwith cause a notice setting forth the adjusted conversion or exchange price
or describing such securities, assets or other property, as applicable, to be
mailed, first class postage prepaid, to each Holder of Registered Securities of
such series at its address appearing on the Register and to any conversion or
exchange agent other than the Trustee.

Section 10.05. NOTICE OF CERTAIN CORPORATE ACTIONS.

         If any series of Securities which are directly or indirectly
convertible or exchangeable for any Equity Securities are Outstanding, in case:

     (a) the Company shall declare a dividend (or any other distribution) on any
class of such Equity Securities payable otherwise than in cash out of its
retained earnings (other than a dividend for which approval of any stockholder
of the Company is required); or

     (b) the Company shall authorize the granting to the holders of any class of
such Equity Securities of rights, options or warrants to subscribe for or
purchase any shares of capital stock of any class or of any other rights (other
than any such grant for which approval of any stockholder of the Company is
required); or

     (c) of any reclassification of any class of such Equity Securities (other
than a subdivision or combination of its outstanding Equity Securities, or of

                                      -47-

<PAGE>

any consolidation, merger or share exchange to which the Company is a party and
for which approval of any stockholder of the Company is required), or of the
sale of all or substantially all of the assets of the Company; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up
of the Company;

then the Company shall cause to be filed with the Trustee, and shall cause to be
mailed to all Holders at their addresses as they shall appear in the Register,
at least 15 days (or 10 days in any case specified in clause (a) or (b) above)
prior to the applicable record date hereinafter specified, a notice stating (i)
the date on which a record is to be taken for the purpose of such dividend,
distribution, rights, options or warrants, or, if a record is not to be taken,
the date as of which the Holders of such Equity Securities of record to be
entitled to such dividend, distribution, rights, options or warrants are to be
determined, or (ii) the date on which such reclassification, consolidation,
merger, share exchange, sale, dissolution, liquidation or winding up is expected
to become effective, and the date as of which it is expected that holders of
such Equity Securities of record shall be entitled to exchange such Equity
Securities for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, share exchange, sale, dissolution,
liquidation or winding up. If at any time the Trustee shall not be the
conversion or exchange agent, a copy of such notice shall also forthwith be
filed by the Company with the Trustee.

Section 10.06. RESERVATION OF EQUITY SECURITIES.

         The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Equity Securities, for the
purpose of effecting the conversion or exchange of Securities, the full number
of Equity Securities of the Company then issuable upon the conversion or
exchange of all outstanding securities of any series that has conversion or
exchange rights.

Section 10.07. PAYMENT OF CERTAIN TAXES UPON CONVERSION OR EXCHANGE.

         The Company will pay any and all taxes that may be payable in respect
of the issue or delivery of its Equity Securities on conversion or exchange of
Securities pursuant hereto. The Company shall not, however, be required to pay
any tax which may be payable in respect of any transfer involved in the issue
and delivery of its Equity Securities in a name other than that of the Holder of
the Security or Securities to be converted or exchanged, and no such issue or
delivery shall be made unless and until the Person requesting such issue has
paid to the Company the amount of any such tax, or has established, to the
satisfaction of the Company, that such tax has been paid.

Section 10.08. DUTIES OF TRUSTEE REGARDING CONVERSION OR EXCHANGE.

         Neither the Trustee nor any conversion or exchange agent shall at any
time be under any duty or responsibility to any Holder of Securities of any
series that is convertible or exchangeable into Equity Securities of the Company
to determine whether any facts exist which may require any adjustment of the
conversion or exchange price, or with respect to the nature or extent of any

                                      -48-

<PAGE>

such adjustment when made, or with respect to the method employed, whether
herein or in any supplemental indenture, any resolutions of the Board of
Directors or written instrument executed by one or more officers of the Company
provided to be employed in making the same. Neither the Trustee nor any
conversion or exchange agent shall be accountable with respect to the validity
or value (or the kind or amount) of any Equity Securities of the Company, or of
any securities or property, which may at any time be issued or delivered upon
the conversion or exchange of any Securities and neither the Trustee nor any
conversion or exchange agent makes any representation with respect thereto.
Subject to the provisions of Section 7.01, neither the Trustee nor any
conversion or exchange agent shall be responsible for any failure of the Company
to issue, transfer or deliver any of its Equity Securities or stock certificates
or other securities or property upon the surrender of any Security for the
purpose of conversion or exchange or to comply with any of the covenants of the
Company contained in this Article 10 or in the applicable supplemental
indenture, resolutions of the Board of Directors or written instrument executed
by one or more duly authorized officers of the Company.

Section 10.09. REPAYMENT OF CERTAIN FUNDS UPON CONVERSION OR EXCHANGE.

         Any funds which at any time have been deposited by the Company or on
its behalf with the Trustee or any Paying Agent for the purpose of paying the
principal of, and premium, if any, and interest, if any, on any of the
Securities and which shall not be required for such purposes because of the
conversion or exchange of such Securities as provided in this Article 10 shall
after such conversion or exchange be repaid to the Company by the Trustee upon
the Company's written request.

                                  ARTICLE 11.
                                 SUBORDINATION

Section 11.01.  AGREEMENT TO SUBORDINATE.

     (a) The Company agrees, and each Holder by accepting a Security agrees,
that the Indebtedness evidenced by the Securities is subordinated in right of
payment, to the extent and in the manner provided in this Article, to the prior
payment in full of all Senior Debt (whether outstanding on the date hereof or
hereafter created, incurred, assumed or guaranteed), and that the subordination
is for the benefit of the holders of Senior Debt.

     (b) If any holder of Senior Debt is required by any court or otherwise to
return to the Company, or any Custodian, trustee, or similar official acting in
relation to the Company, any amount paid by the Company to such holder of Senior
Debt, the provisions of this Article 11, to the extent theretofore discharged,
shall be reinstated in full force and effect; provided, however, that any
amounts paid pursuant to this Indenture to Holders of Securities shall not be
subject to disgorgement pursuant to the provisions of this paragraph (b).

                                      -49-

<PAGE>

Section 11.02. CERTAIN DEFINITIONS.

         "Designated Senior Debt" means (i) the Senior Bank Debt and (ii) any
other Senior Debt permitted under this Indenture the principal amount of which
at least the amount specified in the applicable supplemental indenture and that
has been designated by the Company as "Designated Senior Debt."

         "Representative" means the indenture trustee or other trustee, agent or
representative for any Senior Debt.

         A "distribution" may consist of cash, securities or other property, by
set-off or otherwise.

Section 11.03. LIQUIDATION; DISSOLUTION; BANKRUPTCY.

         Upon any distribution to creditors of the Company in a liquidation or
dissolution of the Company or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, an
assignment for the benefit of creditors or any marshalling of the Company's
assets and liabilities:

         (1) holders of Senior Debt shall be entitled to receive payment in full
     of all Obligations due in respect of such Senior Debt (including interest
     after the commencement of any such proceeding at the rate specified in the
     applicable Senior Debt) before the Holders of Securities shall be entitled
     to receive any payment with respect to the Securities (except that Holders
     may receive (i) securities that are subordinated to at least the same
     extent as the Securities to (a) Senior Debt and (b) any securities issued
     in exchange for Senior Debt and (ii) payments and other distributions made
     from any defeasance trust created pursuant to Section 8.05 hereof); and

         (2) until all Obligations with respect to Senior Debt (as provided in
     subsection (1) above) are paid in full, any distribution to which the
     Holders of Securities would be entitled but for this Article shall be made
     to holders of Senior Debt (except that Holders may receive (i) securities
     that are subordinated to at least the same extent as the Securities to (a)
     Senior Debt and (b) any securities issued in exchange for Senior Debt and
     (ii) payments and other distributions made from any defeasance trust
     created pursuant to Section 8.05 hereof), as their interests may appear.

Section 11.04.  DEFAULT ON DESIGNATED SENIOR DEBT.

     (a) The Company may not make any payment or distribution to the Trustee or
any Holder in respect of the Securities and may not acquire from the Trustee or
any Holder any Securities for cash or property (other than (1) securities that
are subordinated to at least the same extent as the Securities to (A) Senior
Debt and (B) any securities issued in exchange for Senior Debt and (2) payments
and other distributions made from any defeasance trust created pursuant to
Section 8.05 hereof) until all principal and other Obligations with respect to
the Senior Debt have been paid in full if:

                                      -50-

<PAGE>

         (1) a default in the payment of the principal of, premium, if any, or
interest on Designated Senior Debt occurs and is continuing beyond any
applicable grace period in the agreement, indenture or other document governing
such Designated Senior Debt; or

         (2) a default, other than a default specified in Section 11.04(a)(i),
on Designated Senior Debt occurs and is continuing with respect to Designated
Senior Debt that then permits holders of the Designated Senior Debt as to which
such default relates to accelerate its maturity and the Trustee receives a
notice of the default (a "Payment Blockage Notice") from a Person who may give
it pursuant to Section 11.12 hereof. If the Trustee receives any such Payment
Blockage Notice, no subsequent Payment Blockage Notice shall be effective for
purposes of this Section unless and until (I) at least 360 days shall have
elapsed since the effectiveness of the immediately prior Payment Blockage Notice
and (II) all scheduled payments of principal and premium, if any, and interest
on the Securities that have come due (other than by reason of acceleration) have
been paid in full in cash. No default described in this paragraph (2) that
existed or was continuing on the date of delivery of any Payment Blockage Notice
to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage
Notice.

     (b) The Company may and shall resume payments on and distributions in
respect of the Securities and may acquire them:

         (i) in the case of a default described in Section 11.04(a)(1), upon the
     date on which the default is cured or waived, and

         (ii) in the case of a default referred to in Section 11.04(a)(2)
     hereof, the earlier of the date on which such default is cured or waived or
     179 days after the date on which the applicable Payment Blockage Notice is
     received, unless the maturity of any Designated Senior Debt has been
     accelerated,

if this Article otherwise permits the payment, distribution or acquisition at
the time of such payment or acquisition.

Section 11.05. ACCELERATION OF SECURITIES.

         If payment of the Securities is accelerated because of an Event of
Default, the Company shall promptly notify holders of Senior Debt of the
acceleration.

Section 11.06. WHEN DISTRIBUTION MUST BE PAID OVER.

         In the event that the Trustee or any Holder receives any payment of any
Obligations with respect to the Securities at a time when the Trustee or such
Holder, as applicable, has actual knowledge that such payment is prohibited by
Section 11.04 hereof, such payment shall be held by the Trustee or such Holder,
in trust for the benefit of, and shall be paid forthwith over and delivered,
upon written request, to, the holders of Senior Debt as their interests may
appear or their Representative under the indenture or other agreement (if any)
pursuant to which Senior Debt may have been issued, as their respective
interests may appear, for application to the payment of all Obligations with

                                      -51-

<PAGE>

respect to Senior Debt remaining unpaid to the extent necessary to pay such
Obligations in full in accordance with their terms, after giving effect to any
concurrent payment or distribution to or for the holders of Senior Debt.

         With respect to the holders of Senior Debt, the Trustee undertakes to
perform only such obligations on the part of the Trustee as are specifically set
forth in this Article 11, and no implied covenants or obligations with respect
to the holders of Senior Debt shall be read into this Indenture against the
Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and shall not be liable to any such holders if the
Trustee shall pay over or distribute to or on behalf of Holders or the Company
or any other Person money or assets to which any holders of Senior Debt shall be
entitled by virtue of this Article 11, except if such payment is made as a
result of the willful misconduct or gross negligence of the Trustee.

Section 11.07. NOTICE BY COMPANY.

         The Company shall promptly notify the Trustee and the Paying Agent of
any facts known to the Company that would cause a payment of any Obligations
with respect to the Securities to violate this Article, but failure to give such
notice shall not affect the subordination of the Securities to the Senior Debt
as provided in this Article.

Section 11.08. SUBROGATION.

         After all Senior Debt is paid in full and until the Securities are paid
in full, Holders shall be subrogated (equally and ratably with all other
Indebtedness pari passu with the Securities) to the rights of holders of Senior
Debt to receive distributions applicable to Senior Debt to the extent that
distributions otherwise payable to the Holders have been applied to the payment
of Senior Debt. A distribution made under this Article to holders of Senior Debt
that otherwise would have been made to Holders is not, as between the Company
and Holders, a payment by the Company on the Senior Debt.

Section 11.09. RELATIVE RIGHTS.

         This Article defines the relative rights of Holders and holders of
Senior Debt. Nothing in this Indenture shall:

         (i)   impair, as between the Company and Holders, the obligation of the
     Company, which is absolute and unconditional, to pay principal or and
     interest on the Securities in accordance with their terms;

         (ii)  affect the relative rights of Holders and creditors of the
     Company other than their rights in relation to holders of Senior Debt; or

         (iii) prevent the Trustee or any Holder from exercising its available
     remedies upon a Default or Event of Default, subject to the rights of
     holders and owners of Senior Debt to receive distributions and payments
     otherwise payable to Holders.

                                      -52-

<PAGE>

         If the Company fails because of this Article to pay principal of or
interest on a Security on the due date, the failure is still a Default or Event
of Default.

Section 11.10. SUBORDINATION MAY NOT BE IMPAIRED BY COMPANY.

         No right of any holder of Senior Debt to enforce the subordination of
the Indebtedness evidenced by the Securities shall be impaired by any act or
failure to act by the Company or any Holder or by the failure of the Company or
any Holder to comply with this Indenture.

Section 11.11. DISTRIBUTION OR NOTICE TO REPRESENTATIVE.

         Whenever a distribution is to be made or a notice given to holders of
Senior Debt, the distribution may be made and the notice given to their
Representative.

         Upon any payment or distribution of assets of the Company referred to
in this Article 11, the Trustee and the Holders shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction or upon any
certificate of such Representative or of the liquidating trustee or agent or
other Person making any distribution to the Trustee or to the Holders for the
purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Debt and other Indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 11.

Section 11.12. RIGHTS OF TRUSTEE AND PAYING AGENT.

         Notwithstanding the provisions of this Article 11 or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Securities, unless the Trustee shall have received at
its Corporate Trust Office of the Trustee at least five Business Days prior to
the date of such payment written notice of facts that would cause the payment of
any Obligations with respect to the Securities to violate this Article. Only the
Company or a Representative may give the notice. Nothing in this Article 11
shall impair the claims of, or payments to, the Trustee under or pursuant to
Section 7.07 hereof.

         The Trustee in its individual or any other capacity may hold Senior
Debt with the same rights it would have if it were not Trustee. Any Agent may do
the same with like rights.

Section 11.13. AUTHORIZATION TO EFFECT SUBORDINATION.

         Each Holder of a Security by the Holder's acceptance thereof authorizes
and directs the Trustee on the Holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article 11, and appoints the Trustee to act as the Holder's attorney-in-fact for
any and all such purposes. If the Trustee does not file a proper proof of claim
or proof of debt in the form required in any proceeding referred to in Section

                                      -53-

<PAGE>

6.09 hereof at least 30 days before the expiration of the time to file such
claim, the agent under the Credit Facility (or in the absence of such agent, the
lender) is hereby authorized to file an appropriate claim for and on behalf of
the Holders of the Securities.

Section 11.14. AMENDMENTS.

         The provisions of this Article 11 shall not be amended or modified
without the written consent of the holders of all Senior Debt.

                                  ARTICLE 12.
                                 MISCELLANEOUS

Section 12.01. TRUST INDENTURE ACT CONTROLS.

         If any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by TIA ss.318(c), the imposed duties shall control.

Section 12.02. NOTICES.

         Any notice or communication by the Company or the Trustee to the others
is duly given if in writing and delivered in Person or mailed by first class
mail (registered or certified, return receipt requested), telex, telecopier or
overnight air courier guaranteeing next day delivery, to the others' address:

         If to the Company:

                  Pegasus Communications Corporation
                  c/o Pegasus Communications Management Company
                  225 City Lane Avenue, Suite 200
                  Bala Cynwyd, PA 19004
                  Telecopier No.:  (610) 934-7121
                  Attention:  Chief Financial Officer

         With a copy to:

                  Drinker Biddle & Reath LLP
                  One Logan Square
                  Eighteenth & Cherry Streets
                  Philadelphia, PA 19103
                  Telecopier No.:  (215) 988-2757
                  Attention:  Michael B. Jordan, Esq.

                                      -54-

<PAGE>

         If to the Trustee:

                  First Union National Bank
                  230 S. Tryon Street
                  Charlotte, NC  28288-1153
                  Telecopier No.:  (704) 374-6114
                  Attention:  Client Service Group

         With a copy to:

                  First Union National Bank
                  123 South Broad Street
                  PA 1249
                  Philadelphia, PA 19109
                  Telecopier No.:  (215) 985-7290
                  Attention:  Corporate Trust Administration

         The Company or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.

         All notices and communications (other than those sent to Holders) shall
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

         Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA ss. 313(c), to the extent required by the TIA. Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders.

         If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

         If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.

Section 12.03. COMMUNICATION BY HOLDERS OF SECURITIES WITH OTHER HOLDERS OF
               SECURITIES.

         Holders may communicate pursuant to TIA ss. 312(b) with other Holders
with respect to their rights under this Indenture or the Securities. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA ss. 312(c).

                                      -55-

<PAGE>

Section 12.04. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

         Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

     (a) an Officers' Certificate in form and substance reasonably satisfactory
to the Trustee (which shall include the statements set forth in Section 12.05
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

     (b) an Opinion of Counsel in form and substance reasonably satisfactory to
he Trustee (which shall include the statements set forth in Section 12.05
hereof) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been satisfied.

Section 12.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

         Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA ss.
314(e) and shall include:

     (a) a statement that the Person making such certificate or opinion has read
such covenant or condition;

     (b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;

     (c) a statement that, in the opinion of such Person, he or she has made
such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
satisfied; and

     (d) a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been satisfied.

Section 12.06. RULES BY TRUSTEE AND AGENTS.

         The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

Section 12.07. NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND
               STOCKHOLDERS.

         No past, present or future director, officer, employee, incorporator or
stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Securities, this Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation.

                                      -56-

<PAGE>

Each Holder of Securities by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Securities.

Section 12.08. GOVERNING LAW.

         THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE AND THE SECURITIES.

Section 12.09. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

         This Indenture may not be used to interpret any other indenture, loan
or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

Section 12.10. SUCCESSORS.

         All agreements of the Company in this Indenture and the Securities
shall bind its respective successors. All agreements of the Trustee in this
Indenture shall bind its successors.

Section 12.11. SEVERABILITY.

         In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Section 12.12. COUNTERPART ORIGINALS.

         The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.

Section 12.13. TABLE OF CONTENTS, HEADINGS, ETC.

         The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part of this Indenture and shall in
no way modify or restrict any of the terms or provisions hereof.

                                      -57-

<PAGE>

                               SIGNATURES

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

                                              PEGASUS COMMUNICATIONS CORPORATION

                                              By: ______________________________
                                              Name:
                                              Title:
FIRST UNION NATIONAL BANK

By: _______________________________
Name:
Title:<PAGE>

                      $15,000,000 REVOLVING CREDIT FACILITY

                                CREDIT AGREEMENT

                                  by and among

                             U.S. INTERACTIVE, INC.

                                       and

                        U.S. INTERACTIVE CORP. (DELAWARE)

                                       and

                             THE BANKS PARTY HERETO

                                       and

                    PNC BANK, NATIONAL ASSOCIATION, as Agent

                              Dated March 21, 2000

<PAGE>

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT is dated March 21, 2000 and is made by and among
U.S. INTERACTIVE, INC., a Delaware corporation ("Parent") and U.S. INTERACTIVE
CORP. (DELAWARE), a Delaware corporation ("Corp") (Parent and Corp are
hereinafter referred to collectively as "Borrowers" and, individually, as a
"Borrower"), the BANKS (as hereinafter defined) and PNC BANK, NATIONAL
ASSOCIATION, in its capacity as agent for the Banks under this Agreement
(hereinafter referred to in such capacity as the "Agent").

                                   WITNESSETH:

         WHEREAS, the Borrowers have requested the Banks to provide a revolving
credit facility to the Borrowers in an aggregate principal amount not to exceed
$15,000,000; and

         WHEREAS, the revolving credit and facility shall be used to finance the
acquisition of Soft Plus, Inc. pursuant to the terms of the Soft Plus
Transaction (as defined herein) and for general corporate purposes; and

         WHEREAS, the Banks are willing to provide such credit upon the terms
and conditions hereinafter set forth;

         NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:

                             1. CERTAIN DEFINITIONS

                  1.1 Certain Definitions.

                  In addition to words and terms defined elsewhere in this
Agreement, the following words and terms shall have the following meanings,
respectively, unless the context hereof clearly requires otherwise:

                  Account shall mean any account, contract right, general
intangible, chattel paper, instrument or document representing any right to
payment for goods sold or services rendered, whether or not earned by
performance and whether or not evidenced by a contract, instrument or document,
which is now owned or hereafter acquired by a Borrower.

                  Account Debtor shall mean any person which is or which may
become obligated to a Borrower under, with respect to, or on account of, an
Account.

                  Affiliate as to any Person shall mean any other Person (i)
which directly or indirectly controls, is controlled by, or is under common
control with such Person, (ii) which beneficially owns or holds 5% or more of
any class of the voting or other equity interests of such Person, or (iii) 5% or
more of any class of voting interests or other equity interests of which is
beneficially owned or held, directly or indirectly, by such Person. Control, as
used in this definition, shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise, including the power to elect a majority of the directors or trustees
of a corporation or trust, as the case may be.

<PAGE>

                           Agent shall mean PNC Bank, National Association, and
its successors and assigns.

                           Agent's Letter shall mean that certain confidential
letter, dated March 10, 2000, from
PNC Capital Markets to Parent, with respect to certain agency duties and fees.

                           Agreement shall mean this Credit Agreement, as the
same may be supplemented or amended from time to time, including all schedules
and exhibits.

                           Assignment and Assumption Agreement shall mean an
Assignment and Assumption Agreement by and among a Purchasing Bank, a Transferor
Bank and the Agent, as Agent and on behalf of the remaining Banks, substantially
in the form of Exhibit 1.1(A).

                           Banks shall mean the financial institutions named on
Schedule 1.1(B) and their respective successors and assigns as permitted
hereunder, each of which is referred to herein as a Bank.

                           Base Rate shall mean the higher of (i) the interest
rate per annum announced from time to time by the Agent at its Principal Office
as its then prime rate, which rate may not be the lowest rate then being charged
commercial borrowers by the Agent, or (ii) the Federal Funds Effective Rate,
plus one half percent (1/2% ) per annum.

                           Benefit Arrangement shall mean at any time an
"employee benefit plan," within the meaning of Section 3(3) of ERISA, which is
neither a Plan nor a Multiemployer Plan and which is maintained, sponsored or
otherwise contributed to by any member of the ERISA Group.

                           Borrowers shall mean U.S. Interactive, Inc. and U.S.
Interactive Corp. (Delaware) and Borrower shall mean any of them.

                           Borrower Agent shall mean Parent in its capacity as
Borrower Agent under the Borrower Agency Agreement.

                           Borrower Agency Agreement shall mean the Borrower
Agency Agreement executed and delivered by all of the Borrowers and the Borrower
Agent on the Closing Date pursuant to which the Borrower Agent is authorized to
act in certain circumstances on behalf of all of the Borrowers under or with
respect to the Loan Documents.

                           Borrowing Base shall mean an amount equal to 80% of
Eligible Accounts.

                           Borrowing Base Certificate shall mean the certificate
prepared and delivered by the Borrower Agent each month on the form attached
hereto as Exhibit 1.1(BB).

<PAGE>

                           Business Day shall mean any day other than a Saturday
or Sunday or a legal holiday on which commercial banks are authorized or
required to be closed for business in Philadelphia, Pennsylvania.

                           Closing Date shall mean the date hereof. The closing
shall take place at 10:00 a.m., Philadelphia time, on the Closing Date at the
offices of Buchanan Ingersoll Professional Corporation in Philadelphia or at
such other time and place as the parties agree.

                           Collateral shall mean the Pledged Collateral, the UCC
Collateral and the Intellectual Property Collateral.

                           Commercial Letter of Credit shall mean any Letter of
Credit which is a commercial letter of credit issued in respect of the purchase
of goods or services by one or more of the Borrowers in the ordinary course of
their business

                           Consideration shall mean with respect to any
Permitted Acquisition, the aggregate of (i) the cash paid by any of the
Borrowers, directly or indirectly, to the seller in connection therewith, (ii)
the Indebtedness incurred or assumed by any of the Borrowers, whether in favor
of the seller or otherwise and whether fixed or contingent, (iii) any Guaranty
given or incurred by any Borrower in connection therewith, and (iv) any other
consideration given or obligation incurred by any of the Borrowers in connection
therewith.

                           Dollar, Dollars, U.S. Dollars and the symbol $ shall
mean lawful money of the United States of America.

                           EBITDA for any period of determination shall mean (i)
the sum of net income, depreciation, amortization, other non-cash charges to net
income, interest expense and income tax expense minus (ii) non-cash credits to
net income, in each case of the Borrower and its Subsidiaries for such period
determined and consolidated in accordance with GAAP.

                           Eligible Accounts shall have the meaning provided on
Exhibit 1.1(EA).

                           ERISA shall mean the Employee Retirement Income
Security Act of 1974, as the same may be amended or supplemented from time to
time, and any successor statute of similar import, and the rules and regulations
thereunder, as from time to time in effect.

                           ERISA Group shall mean, at any time, Parent and all
members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control and all other entities which,
together with Parent, are treated as a single employer under Section 414 of the
Internal Revenue Code.

                           Existing Facility shall mean the secured $3,250,000
revolving credit facility provided to Parent by Progress Bank and the $4,000,000
facility provided by Venture Lending and Leasing II, Inc., the credit facility
provider for Soft Plus, the Indebtedness under both of which shall be repaid in
full on the Closing Date.

                           Expiration Date shall mean, with respect to the
Revolving Credit Commitments, December 7, 2000, provided, however, if on or
before December 7, 2000 the Soft Plus Seller Note has been paid in full, it
shall mean March 19, 2001, or such earlier date this Agreement is terminated in
accordance with its terms.

<PAGE>

                           Federal Funds Effective Rate for any day shall mean
the rate per annum (based on a year of 360 days and actual days elapsed and
rounded upward to the nearest 1/100 of 1%) announced by the Federal Reserve Bank
of New York (or any successor) on such day as being the weighted average of the
rates on overnight federal funds transactions arranged by federal funds brokers
on the previous trading day, as computed and announced by such Federal Reserve
Bank (or any successor) in substantially the same manner as such Federal Reserve
Bank computes and announces the weighted average it refers to as the "Federal
Funds Effective Rate" as of the date of this Agreement; provided, if such
Federal Reserve Bank (or its successor) does not announce such rate on any day,
the "Federal Funds Effective Rate" for such day shall be the Federal Funds
Effective Rate for the last day on which such rate was announced.

                           GAAP shall mean generally accepted accounting
principles as are in effect from time to time, subject to the provisions of
Section 1.3, and applied on a consistent basis both as to classification of
items and amounts.

                           Guaranty of any Person shall mean any obligation of
such Person guaranteeing or in effect guaranteeing any liability or obligation
of any other Person in any manner, whether directly or indirectly, including any
agreement to indemnify or hold harmless any other Person, any performance bond
or other suretyship arrangement and any other form of assurance against loss,
except endorsement of negotiable or other instruments for deposit or collection
in the ordinary course of business.

                           Indebtedness shall mean, as to any Person at any
time, any and all indebtedness, obligations or liabilities (whether matured or
unmatured, liquidated or unliquidated, direct or indirect, absolute or
contingent, or joint or several) of such Person for or in respect of: (i)
borrowed money, (ii) amounts raised under or liabilities in respect of any note
purchase or acceptance credit facility, (iii) reimbursement obligations
(contingent or otherwise) under any letter of credit, currency swap agreement,
interest rate swap, cap, collar or floor agreement or other interest rate
management device, (iv) any other transaction (including forward sale or
purchase agreements, capitalized leases and conditional sales agreements) having
the commercial effect of a borrowing of money entered into by such Person to
finance its operations or capital requirements (but not including trade payables
and accrued expenses incurred in the ordinary course of business which are not
represented by a promissory note or other evidence of indebtedness and which are
not more than thirty (30) days past due), or (v) any Guaranty of Indebtedness
for borrowed money.

                           Ineligible Security shall mean any security which may
not be underwritten or dealt in by member banks of the Federal Reserve System
under Section 16 of the Banking Act of 1933 (12 U.S.C. Section 24, Seventh), as
amended.

                           Insolvency Proceeding shall mean, with respect to any
Person, (a) a case, action or proceeding with respect to such Person (i) before
any court or any other Official Body under any bankruptcy, insolvency,
reorganization or other similar Law now or hereafter in effect, or (ii) for the
appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or similar official) of any Borrower or otherwise
relating to the liquidation, dissolution, winding-up or relief of such Person,
or (b) any general assignment for the benefit of creditors, composition,
marshaling of assets for creditors, or other, similar arrangement in respect of
such Person's creditors generally or any substantial portion of its creditors;
undertaken under any Law.

<PAGE>

                           Intellectual Property Collateral shall mean all of
the property described in the Patent, Trademark and Copyright Security
Agreement.

                           Intercompany Subordination Agreement shall mean a
Subordination Agreement executed and delivered and among the Borrowers in favor
of the Agent on the Closing Date in respect of obligations or Indebtedness owing
by any Borrower to any other Borrower.

                           Internal Revenue Code shall mean the Internal Revenue
Code of 1986, as the same may be amended or supplemented from time to time, and
any successor statute of similar import, and the rules and regulations
thereunder, as from time to time in effect.

                           Joinder shall mean a joinder by a Person as a
Borrower under this Agreement and the other Loan Documents pursuant to the
Joinder and Assumption in the form of Exhibit 1.1(J).

                           Labor Contracts shall mean all collective bargaining
agreements among any Borrower or Subsidiary of a Borrower and its employees.

                           Law shall mean any law (including common law),
constitution, statute, treaty, regulation, rule, ordinance, opinion, release,
ruling, order, injunction, writ, decree, consent decree, bond, judgment,
authorization, lien or award of any Official Body.

                           Letter of Credit Borrowing shall mean an extension of
credit resulting from a drawing under any Letter of Credit which shall not have
been reimbursed on the date when made and shall not have been converted into a
Revolving Credit Loan under the terms of Exhibit 2.10.

                           Letters of Credit Outstanding shall mean at any time
the sum of (i) the aggregate undrawn face amount of outstanding Letters of
Credit and (ii) the aggregate amount of all unpaid and outstanding Reimbursement
Obligations.

                           Lien shall mean any mortgage, deed of trust, pledge,
lien, security interest, charge or other encumbrance or security arrangement of
any nature whatsoever, whether voluntarily or involuntarily given, including any
conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or
not a lien or other encumbrance is created or exists at the time of the filing).

                           Loan Documents shall mean this Agreement, the
Borrower Agency Agreement, the Agent's Letter, the Intercompany Subordination
Agreement, the Notes, the Patent, Trademark and Copyright Security Agreement,
the Pledge Agreement, the Security Agreement, and any other instruments,
certificates or documents delivered or contemplated to be delivered hereunder or
thereunder or in connection herewith or therewith, as the same may be
supplemented or amended from time to time in accordance herewith or therewith,
and Loan Document shall mean any of the Loan Documents.

<PAGE>

                           Loans shall mean collectively and Loan shall mean
separately all Revolving Credit Loans or any Revolving Credit Loan.

                           Material Adverse Change shall mean any set of
circumstances or events which (a) has or would reasonably be expected to have
any material adverse effect whatsoever upon the validity or enforceability of
this Agreement or any other Loan Document, (b) is or would reasonably be
expected to be material and adverse to the business, properties, assets,
financial condition, results of operations or prospects of the Borrowers taken
as a whole, (c) impairs materially or would reasonably be expected to impair
materially the ability of the Borrowers taken as a whole to duly and punctually
pay or perform its Indebtedness, or (d) impairs materially or would reasonably
be expected to impair materially the ability of the Agent or any of the Banks,
to the extent permitted, to enforce their legal remedies pursuant to this
Agreement or any other Loan Document, to the fullest extent provided therein, at
law or in equity.

                           Multiemployer Plan shall mean any employee benefit
plan which is a "multiemployer plan" within the meaning of Section 4001(a)(3) of
ERISA and to which the Borrower or any member of the ERISA Group is then making
or accruing an obligation to make contributions or, within the preceding five
Plan years, has made or had an obligation to make such contributions.

                           Multiple Employer Plan shall mean a Plan which has
two or more contributing sponsors (including the Borrower or any member of the
ERISA Group) at least two of whom are not under common control, as such a plan
is described in Sections 4063 and 4064 of ERISA.

                           Non-US Subsidiary shall mean a Subsidiary of a
Borrower which is not organized in one of the fifty (50) states of the United
States of America or the District of Columbia, including those listed on
Schedule 5.1.3 hereof.

                           Obligations shall mean any obligation or liability of
any of the Borrowers to the Agent or any of the Banks, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due, under or in connection with this
Agreement, the Notes, the Agent's Letter, the Letters of Credit or any other
Loan Document.

                           Official Body shall mean any national, federal,
state, local or other government or political subdivision or any agency,
authority, bureau, central bank, commission, department or instrumentality of
either, or any court, tribunal, grand jury or arbitrator, in each case whether
foreign or domestic.

                           Participation Advance shall mean, with respect to any
Bank, such Bank's payment in respect of its participation in a Letter of Credit
Borrowing according to its Ratable Share pursuant to Exhibit 2.10.

                           Patent, Trademark and Copyright Security Agreement
shall mean, collectively, the two (2) Patent, Trademark and Copyright Collateral
Assignment executed and delivered on the Closing Date by each of the Borrowers
to the Agent for the benefit of the Banks.

<PAGE>

                           PBGC shall mean the Pension Benefit Guaranty
Corporation established pursuant to Subtitle A of Title IV of ERISA or any
successor.

                           Permitted Acquisition shall have the meaning provided
for such term in Section 7.2.6(2).

                           Person shall mean any individual, corporation,
partnership, limited liability company, association, joint-stock company, trust,
unincorporated organization, joint venture, government or political subdivision
or agency thereof, or any other entity.

                           Plan shall mean at any time an employee pension
benefit plan (including a Multiple Employer Plan, but not a Multiemployer Plan)
which is covered by Title IV of ERISA or is subject to the minimum funding
standards under Section 412 of the Internal Revenue Code and either (i) is
maintained by any member of the ERISA Group for employees of any member of the
ERISA Group or (ii) has at any time within the preceding five years been
maintained by any entity which was at such time a member of the ERISA Group for
employees of any entity which was at such time a member of the ERISA Group.

                           Pledge Agreement shall mean the Pledge Agreement
executed and delivered on the Closing Date by Parent to the Agent for the
benefit of the Banks in respect of all of the Subsidiary Shares.

                           Pledged Collateral shall mean the property of the
Borrowers in which security interests are to be granted under the Pledge
Agreement.

                           PNC Bank shall mean PNC Bank, National Association,
its successors and assigns.

                           Potential Default shall mean any event or condition
which with notice, passage of time or a determination by the Agent or the
Required Banks, or any combination of the foregoing, would constitute an Event
of Default.

                           Principal Office shall mean the main banking office
of the Agent in Philadelphia, Pennsylvania.

                           Prior Security Interest shall mean a valid and
enforceable perfected first-priority security interest under the Uniform
Commercial Code in the UCC Collateral and the Pledged Collateral which is
subject only to Liens for taxes not yet due and payable to the extent such
prospective tax payments are given priority by statute or Purchase Money
Security Interests as permitted hereunder.

                           Prohibited Transaction shall mean any prohibited
transaction as defined in Section 4975 of the Internal Revenue Code or Section
406 of ERISA for which neither an individual nor a class exemption has been
issued by the United States Department of Labor.

                           Projections shall have the meaning provided in
Section 5.1.9(ii).

                           Property shall mean all real property, both owned and
leased, of any Borrower or Subsidiary of a Borrower.

<PAGE>

                           Purchase Money Security Interest shall mean Liens
upon tangible personal property securing loans to any Borrower or Subsidiary of
a Borrower or deferred payments by such Borrower or Subsidiary for the purchase
of such tangible personal property.

                           Purchasing Bank shall mean a Bank which becomes a
party to this Agreement by executing an Assignment and Assumption Agreement.

                           Ratable Share shall mean the proportion that a Bank's
Commitment bears to the Commitments of all of the Banks.

                           Regulation U shall mean Regulation U, T, G or X as
promulgated by the Board of Governors of the Federal Reserve System, as amended
from time to time.

                           Reportable Event shall mean a reportable event
described in Section 4043 of ERISA and regulations thereunder with respect to a
Plan or Multiemployer Plan.

                             Required Banks shall mean

                                    (i)  if there are no Loans, Reimbursement
Obligations or Letter of Credit Borrowings outstanding, Banks whose Commitments
aggregate at least 66 2/3% of the Commitments of all of the Banks but in all
events two (2) Banks; or

                                    (ii) if there are Loans, Reimbursement
Obligations, or Letter of Credit Borrowings outstanding, any Bank or group of
Banks if the sum of the Loans Reimbursement Obligations and Letter of Credit
Borrowings of such Banks then outstanding aggregates at least 66 2/3% of the
total principal amount of all of the Loans, Reimbursement Obligations and Letter
of Credit Borrowings then outstanding but in all events two (2) Banks.
Reimbursement Obligations and Letter of Credit Borrowings shall be deemed, for
purposes of this definition, to be in favor of the Agent and not a participating
Bank if such Bank has not made its Participation Advance in respect thereof and
shall be deemed to be in favor of such Bank to the extent of its Participation
Advance if it has made its Participation Advance in respect thereof.

                           Revolving Credit Commitment or Commitment shall mean,
as to any Bank at any time, the amount initially set forth opposite its name on
Schedule 1.1(B) in the column labeled "Amount of Commitment for Revolving Credit
Loans," and thereafter on Schedule I to the most recent Assignment and
Assumption Agreement, and Revolving Credit Commitments shall mean the aggregate
Revolving Credit Commitments of all of the Banks.

                           Revolving Credit Loans or Loans shall mean
collectively and Revolving Credit Loan or Loan shall mean separately all
Revolving Credit Loans or any Revolving Credit Loan made by the Banks or one of
the Banks to the Borrower pursuant to Section 2.1 or Paragraph 3(b) of Exhibit
2.10.

                           Revolving Credit Notes or Notes shall mean
collectively and Revolving Credit Note shall mean separately all the Revolving
Credit Notes of the evidencing the Revolving Credit Loans together with all
amendments, extensions, renewals, replacements, refinancings or refundings
thereof in whole or in part.

<PAGE>

                           Revolving Facility Usage shall mean at any time the
sum of the Revolving Credit Loans outstanding and the Letters of Credit
Outstanding.

                           Section 20 Subsidiary shall mean the Subsidiary of
the bank holding company controlling any Bank, which Subsidiary has been granted
authority by the Federal Reserve Board to underwrite and deal in certain
Ineligible Securities.

                           Security Agreement shall mean, collectively, the two
(2) security Agreements executed and delivered by each of the Borrowers to the
Agent for the benefit of the Banks in respect of all the UCC Collateral of all
of the Borrowers.

                           Soft Plus shall mean Soft Plus, Inc., a California
corporation, the separate corporate existence of which has ceased, and a party
to the Soft Plus Transaction.

                           Soft Plus Seller Note shall mean the unsecured
promissory note of Parent payable to the former shareholders of Soft Plus dated
March 8, 2000 in the original principal amount of $80,000,000.

                           Soft Plus Transaction shall mean the statutory
merger, effective March 8, 2000, by which Soft Plus merged with and into Corp
and the separate corporate existence of Soft Plus ceased, all pursuant to the
Agreement and Plan of Merger dated February 1, 2000.

                           Standard & Poor's shall mean Standard & Poor's
Ratings Services, a division of The McGraw-Hill Companies, Inc.

                           Standby Letter of Credit shall mean a Letter of
Credit issued to support obligations of one or more of the Borrower, contingent
or otherwise, which finance the working capital and business needs of the
Borrower incurred in the ordinary course of business.

                           Subsidiary of any Person at any time shall mean (i)
any corporation or trust of which 50% or more (by number of shares or number of
votes) of the outstanding capital stock or shares of beneficial interest
normally entitled to vote for the election of one or more directors or trustees
(regardless of any contingency which does or may suspend or dilute the voting
rights) is at such time owned directly or indirectly by such Person or one or
more of such Person's Subsidiaries, (ii) any partnership of which such Person is
a general partner or of which 50% or more of the partnership interests is at the
time directly or indirectly owned by such Person or one or more of such Person's
Subsidiaries, (iii) any limited liability company of which such Person is a
member or of which 50% or more of the limited liability company interests is at
the time directly or indirectly owned by such Person or one or more of such
Person's Subsidiaries or (iv) any corporation, trust, partnership, limited
liability company or other entity which is controlled or capable of being
controlled by such Person or one or more of such Person's Subsidiaries.

                           Transferor Bank shall mean the selling Bank pursuant
to an Assignment and Assumption Agreement.

                           UCC Collateral shall mean the property of the
Borrowers in which security interests are to be granted under the Security
Agreement.

<PAGE>

                           In addition to the foregoing definitions, the
following capitalized terms have the meanings given to them in the referenced
sections: Agent's Letter, Exhibit 10; Agent's Fee, Exhibit 10; Commitment Fee,
2.3; Event of Default, 8.1; Facility Fees, 2.4; Governmental Acts, Exhibit 2.10;
Historical Statements, 5.1.9; Interim Statements, 5.1.9; LLC Interests, 5.1.3;
Letter of Credit, Exhibit 2.10, Section 1; Letter of Credit Fee, Exhibit 2.10,
Section 2; Letter of Credit Sublimit, Exhibit 2.10, Section 1; Loan Request,
2.5; Notices, 10.6; Partnership Interests, 5.1.3; Permitted Acquisitions, 8.2.6;
Permitted Liens, 7.2.2; Pledged Shares, 5.1.17; Projections, 5.1.9;
Reimbursement Obligations, Exhibit 2.10, Section 3(b); Shares, 6.1.2; Subsidiary
Shares, 5.1.3; and Uniform Commercial Code, 5.1.16.

                  1.2 Construction.

                  Unless the context of this Agreement otherwise clearly
requires, the following rules of construction shall apply to this Agreement and
each of the other Loan Documents: (a) references to the plural include the
singular, the plural, the part and the whole; "or" has the inclusive meaning
represented by the phrase "and/or," and "including" has the meaning represented
by the phrase "including without limitation"; (b) references to "determination"
of or by the Agent or the Banks shall be deemed to include good-faith estimates
by the Agent or the Banks (in the case of quantitative determinations) and
good-faith beliefs by the Agent or the Banks (in the case of qualitative
determinations) and such determination shall be conclusive, absent manifest
error; (c) whenever the Agent or the Banks are granted the right herein to act
in its or their sole discretion or to grant or withhold consent such right shall
be exercised in good faith; (d) the words "hereof," "herein," "hereunder,"
"hereto" and similar terms in this Agreement or any other Loan Document refer to
this Agreement or such other Loan Document as a whole and not to any particular
provision of this Agreement or such other Loan Document; (e) the section and
other headings contained in this Agreement or such other Loan Document and the
Table of Contents, preceding this Agreement or such other Loan Document are for
reference purposes only and shall not control or affect the construction of this
Agreement or such other Loan Document or the interpretation thereof in any
respect; (f) article, section, subsection, clause, schedule and exhibit
references are to this Agreement or other Loan Document, as the case may be,
unless otherwise specified; (g) reference to any Person includes such Person's
successors and assigns but, if applicable, only if such successors and assigns
are permitted by this Agreement or such other Loan Document, as the case may be,
and reference to a Person in a particular capacity excludes such Person in any
other capacity; (h) reference to any agreement (including this Agreement and any
other Loan Document together with the schedules and exhibits hereto or thereto),
document or instrument means such agreement, document or instrument as amended,
modified, replaced, substituted for, superseded or restated; (i) relative to the
determination of any period of time, "from" means "from and including," "to"
means "to but excluding," and "through" means "through and including"; and (j)
references to "shall" and "will" are intended to have the same meaning.

                  1.3 Accounting Principles.

                  Except as otherwise provided in this Agreement, all
computations and determinations as to accounting or financial matters and all
financial statements to be delivered pursuant to this Agreement shall be made
and prepared in accordance with GAAP (including principles of consolidation
where appropriate), and all accounting or financial terms shall have the
meanings ascribed to such terms by GAAP; provided, however, that all accounting
terms used in Section 7.2 [Negative Covenants] (and all defined terms used in
the definition of any accounting term used in Section 7.2 shall have the meaning
given to such terms (and defined terms) under GAAP as in effect on the date
hereof applied on a basis consistent with those used in preparing the Historical
Statements referred to in Section 5.1.9((i)) [Historical Statements].

<PAGE>

                          2. REVOLVING CREDIT FACILITY

                  2.1 Revolving Credit Commitments.

                  Subject to the terms and conditions hereof and relying upon
the representations and warranties herein set forth, each Bank severally agrees
to make Revolving Credit Loans to the Borrowers and, subject to the terms and
conditions of Exhibit 2.10, issue Letters of Credit on behalf of the Borrowers,
at any time or from time to time on or after the date hereof to the Expiration
Date provided that after giving effect to such Loan the aggregate amount of
Revolving Credit Loans from such Bank shall not exceed such Bank's Revolving
Credit Commitment minus such Bank's Ratable Share of the Letters of Credit
Outstanding; provided that the outstanding principal amount of all Loans and
Letters of Credit Outstanding may not exceed the Borrowing Base. Within such
limits of time and amount and subject to the other provisions of this Agreement,
the Borrowers may borrow, repay and reborrow pursuant to this Section 2.1.

                  2.2 Nature of Banks' Obligations with Respect to Revolving
                      Credit Loans.

                  Provided that no Potential Default or Event of Default exists,
each Bank shall be obligated to participate in each request for Revolving Credit
Loans pursuant to Section 2.5 [Revolving Credit Loan Requests] in accordance
with its Ratable Share. The aggregate of each Bank's Revolving Credit Loans
outstanding hereunder to the Borrowers at any time shall never exceed its
Revolving Credit Commitment minus its Ratable Share of the Letter of Credit
Outstandings. The obligations of each Bank hereunder are several. The failure of
any Bank to perform its obligations hereunder shall not affect the Obligations
of the Borrowers to any other party. The Banks shall have no obligation to make
Revolving Credit Loans hereunder on or after the Expiration Date.

                  2.3 Commitment Fees.

                  Accruing from the date hereof until the Expiration Date, the
Borrowers agree to pay to the Agent for the account of each Bank, as
consideration for such Bank's Revolving Credit Commitment hereunder, a
nonrefundable commitment fee (the "Commitment Fee") equal to .30% per annum
(computed on the basis of a year of 360 days, and actual days elapsed) on the
average daily difference between the amount of (i) such Bank's Revolving Credit
Commitment as the same may be constituted from time to time and the (ii) the sum
of such Bank's Revolving Credit Loans plus its Ratable Share of Letters of
Credit Outstanding. All Commitment Fees shall be payable in arrears on the first
Business Day of each April, July, October and January after the date hereof and
on the Expiration Date or upon acceleration of the Notes.

<PAGE>

                  2.4 Revolving Credit Facility Fee.

                  The Borrowers agree to pay to the Agent for the account of
each Bank, as consideration for such Bank's Revolving Credit Commitment, a
nonrefundable facility fee ("Facility Fee") equal to .5% of such Bank's
Revolving Credit Commitment, payable on the Closing Date.

                  2.5 Revolving Credit Loan Requests.

                  Except as otherwise provided herein, the Borrower Agent may
from time to time prior to the Expiration Date request the Banks to make
Revolving Credit Loans by delivering to the Agent, not later than 10:00 a.m.,
Philadelphia time, one (1) Business Day prior to the proposed Borrowing Date
with respect to the making of a Revolving Credit Loan of a duly completed
request therefor substantially in the form of Exhibit 2.5 or a request by
telephone immediately confirmed in writing by letter or facsimile in such form
(each, a "Loan Request"), it being understood that the Agent may rely on the
authority of any individual making such a telephonic request without the
necessity of receipt of such written confirmation. Each Loan Request shall be
irrevocable and shall specify (i) the proposed Borrowing Date; (ii) the
aggregate amount of the proposed Loans comprising each Loan, which shall be in
integral multiples of $50,000. The Loan requested shall not be less than
$100,000 and shall not exceed the maximum amount available for Loans

                  2.6 Making Revolving Credit Loans.

                  The Agent shall, promptly after receipt by it of a Loan
Request pursuant to Section 2.5 [Revolving Credit Loan Requests], notify the
Banks of its receipt of such Loan Request specifying: (i) the proposed Borrowing
Date and the time and method of disbursement of the Revolving Credit Loans
requested thereby; (ii) the amount of each such Revolving Credit Loan and (iii)
the apportionment among the Banks of such Revolving Credit Loans as determined
by the Agent in accordance with Section 2.2 [Nature of Banks' Obligations]. Each
Bank shall remit the principal amount of each Revolving Credit Loan to the Agent
such that the Agent is able to, and the Agent shall, to the extent the Banks
have made funds available to it for such purpose and subject to Section 6.2
[Each Additional Loan], fund such Revolving Credit Loans to the Borrower in U.S.
Dollars and immediately available funds at the Principal Office prior to 2:00
p.m., Philadelphia time, on the applicable Borrowing Date, provided that if any
Bank fails to remit such funds to the Agent in a timely manner, the Agent may
elect in its sole discretion to fund with its own funds the Revolving Credit
Loans of such Bank on such Borrowing Date, and such Bank shall be subject to the
repayment obligation in Paragraph 16 of Exhibit 10.

                  2.7 Revolving Credit Notes.

                  The Obligation of the Borrower to repay the aggregate unpaid
principal amount of the Revolving Credit Loans made to it by each Bank, together
with interest thereon, shall be evidenced by a Revolving Credit Note dated the
Closing Date payable to the order of such Bank in a face amount equal to the
Revolving Credit Commitment of such Bank.

<PAGE>

                  2.8 Use of Proceeds.

                  The proceeds of the Revolving Credit Loans shall be used in
accordance with Section 7.1.10 [Use of Proceeds].

                  2.9 Nature of the Borrower's Obligations.

                  All of the Obligations and the other obligations duties,
promises undertakings, representations and warranties of the Borrowers to or for
the Agent, any Bank or the Banks under any Loan Document or otherwise in
connection with any Loan shall be joint and several.

                  2.10 Letter of Credit Subfacility.

                  The Letters of Credit, in the aggregate amount not to exceed
the Letter of Credit Sublimit, shall be described and governed by the provisions
of Exhibit 2.10.

                               3. INTEREST RATES

                  3.1 Interest Rate.

                  The Borrower shall pay interest in respect of the outstanding
unpaid principal amount of the Loans at the annual rate of interest set forth in
Section 3.1.1. If at any time the designated rate applicable to any Loan made by
any Bank exceeds such Bank's highest lawful rate, the rate of interest on such
Bank's Loan shall be limited to such Bank's highest lawful rate.

                      3.1.1 Revolving Credit Interest Rate.

                      The Revolving Credit Loans shall bear interest at a
fluctuating rate per annum (computed on the basis of a year of 360 days, and
actual days elapsed) equal to the Base Rate plus one half percent (0.5%), such
interest rate to change automatically from time to time effective as of the
effective date of each change in the Base Rate; or

                      3.1.2 Rate Quotations.

                      The Borrower may call the Agent on or before the date on
which a Loan Request is to be delivered to receive an indication of the Base
Rate then in effect, but it is acknowledged that such projection shall not be
binding on the Agent or the Banks nor affect the rate of interest which
thereafter is actually in effect when any Loan is made.

                  3.2 Interest After Default.

                  To the extent permitted by Law, upon the occurrence of an
Event of Default and until such time such Event of Default shall have been cured
or waived, each Obligation hereunder if not paid when due shall bear interest at
a rate per annum equal to the sum of the rate of interest applicable to the
Revolving Credit Loans plus an additional two percent (2%) per annum from the
time such Obligation becomes due and payable and until it is paid in full.

<PAGE>

                      3.2.1 Acknowledgment.

                      The Borrower acknowledges that the increase in rates
referred to in this Section 3.2 reflects, among other things, the fact that such
Loans or other amounts have become a substantially greater risk given their
default status and that the Banks are entitled to additional compensation for
such risk; and all such interest shall be payable by Borrowers upon demand by
Agent.

                                  4. PAYMENTS

                  4.1 Payments.

                  All payments and prepayments to be made in respect of
principal, interest, Commitment Fees, Facility Fees, Letter of Credit Fees,
Agent's Fee or other fees or amounts due from the Borrower hereunder shall be
payable prior to 11:00 a.m., Philadelphia time, on the date when due without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived by the Borrower, and without set-off, counterclaim or other
deduction of any nature, and an action therefor shall immediately accrue. Such
payments shall be made to the Agent at the Principal Office for the ratable
accounts of the Banks with respect to the Loans in U.S. Dollars and in
immediately available funds, and the Agent shall promptly distribute such
amounts to the Banks in immediately available funds, provided that in the event
payments are received by 11:00 a.m., Philadelphia time, by the Agent with
respect to the Loans and such payments are not distributed to the Banks on the
same day received by the Agent, the Agent shall pay the Banks the Federal Funds
Effective Rate with respect to the amount of such payments for each day held by
the Agent and not distributed to the Banks. The Agent's and each Bank's
statement of account, ledger or other relevant record shall be conclusive,
absent manifest error, as the statement of the amount of principal of and
interest on the Loans and other amounts owing under this Agreement and shall be
deemed an "account stated."

                  4.2 Pro Rata Treatment of Banks.

                  Each borrowing shall be allocated to each Bank according to
its Ratable Share and each payment or prepayment by the Borrower with respect to
principal, interest, Commitment Fees, Letter of Credit Fees, Facility Fees, or
other fees (except for the Agent's Fee) or amounts due from the Borrower
hereunder to the Banks with respect to the Loans, shall (except as provided in
Section 4.7 [Additional Compensation in Certain Circumstances]) be made in
proportion to the applicable Loans outstanding from each Bank and, if no such
Loans are then outstanding, in proportion to the Ratable Share of each Bank.

                  4.3 Interest Payment Dates.

                  Interest on Loans shall be due and payable in arrears on the
first Business Day of each month after the date hereof and on the Expiration
Date or upon acceleration of the Notes. Interest on mandatory prepayments of
principal under Section 4.5 [Mandatory Prepayments] shall be due on the date
such mandatory prepayment is due. Interest on the principal amount of each Loan
or other monetary Obligation shall be due and payable on demand after such
principal amount or other monetary Obligation becomes due and payable (whether
on the stated maturity date, upon acceleration or otherwise).

<PAGE>

                  4.4 Voluntary Prepayments.

                      4.4.1 Right to Prepay.

                      The Borrowers shall have the right at their option from
time to time to prepay the Loans in whole or part without premium or penalty at
any time. Whenever the Borrowers desire to prepay any part of the Loans, it
shall provide a prepayment notice to the Agent by 1:00 p.m. at least one (1)
Business Day prior to the date of prepayment of Loans setting forth the
following information: (x) the date, which shall be a Business Day, on which the
proposed prepayment is to be made; and (y) the total principal amount of such
prepayment, which shall not be less than $25,000. All prepayment notices shall
be irrevocable. The principal amount of the Loans for which a prepayment notice
is given, together with interest on such principal amount, shall be due and
payable on the date specified in such prepayment notice as the date on which the
proposed prepayment is to be made.

                  4.5 Mandatory Payment of Principal.

                  The Borrowers shall repay the principal amount of Loans to the
extent of any excess of Revolving Facility Usage over the Borrowing Base. Such
payment shall be made within two (2) Business Days of the determination by any
Borrower of any such excess.

                  4.6 Reduction of Commitment.

                  The Borrowers shall have the right at any time and from time
to time upon five (5) Business Days' prior written notice to the Agent to reduce
permanently in whole or in part, in a minimum amount of $1,000,000 and whole
multiples of $100,000 of principal, or terminate the Commitments, without
penalty or premium except as hereinafter set forth, provided that any such
reduction or termination shall be accompanied by prepayment of the Notes,
together with outstanding fees, and the full amount of interest accrued on the
principal sum to be prepaid, to the extent that the aggregate amount thereof
then outstanding exceeds the Commitment as so reduced or terminated. All notices
to reduce the Commitment shall be irrevocable.

                  4.7 Additional Compensation in Certain Circumstances.

                      4.7.1 Increased Costs or Reduced Return Resulting from
                      Taxes, Reserves, Capital Adequacy Requirements, Expenses,
                      Etc.

                      If any Law, guideline or interpretation or any change in
any Law, guideline or interpretation or application thereof by any Official Body
charged with the interpretation or administration thereof or compliance with any
request or directive (whether or not having the force of Law) of any central
bank or other Official Body:

                            (i) subjects any Bank to any tax or changes the
basis of taxation with respect to this Agreement, the Notes, the Loans or
payments by the Borrower of principal, interest, Commitment Fees, or other
amounts due from the Borrower hereunder or under the Notes (except for taxes on
the overall net income of such Bank),

<PAGE>

                            (ii) imposes, modifies or deems applicable any
reserve, special deposit or similar requirement against credits or commitments
to extend credit extended by, or assets (funded or contingent) of, deposits with
or for the account of, or other acquisitions of funds by, any Bank, or

                            (iii) imposes, modifies or deems applicable any
capital adequacy or similar requirement (A) against assets (funded or
contingent) of, or letters of credit, other credits or commitments to extend
credit extended by, any Bank, or (B) otherwise applicable to the obligations of
any Bank under this Agreement,

and the result of any of the foregoing is to increase the cost to, reduce the
income receivable by, or impose any expense (including loss of margin) upon any
Bank with respect to this Agreement, the Notes or the making, maintenance or
funding of any part of the Loans (or, in the case of any capital adequacy or
similar requirement, to have the effect of reducing the rate of return on any
Bank's capital, taking into consideration such Bank's customary policies with
respect to capital adequacy) by an amount which such Bank in its sole and
reasonable discretion deems to be material, such Bank shall from time to time
notify the Borrowers and the Agent of the amount determined in good faith (using
any averaging and attribution methods employed in good faith) by such Bank to be
necessary to compensate such Bank for such increase in cost, reduction of
income, additional expense or reduced rate of return. Such notice shall set
forth in reasonable detail the basis for such determination. Such amount shall
be due and payable by the Borrowers to such Bank ten (10) Business Days after
such notice is given.

                      4.7.2 Indemnity.

                      In addition to the compensation required by Section 4.7.1
[Increased Costs, Etc.], the Borrowers shall indemnify each Bank against all
liabilities, losses or expenses (including loss of margin, any loss or expense
incurred in liquidating or employing deposits from third parties) which such
Bank reasonably and actually sustains or incurs as a direct consequence of any

                            (i) attempt by the Borrowers to revoke (expressly,
by later inconsistent notices or otherwise) in whole or part any Loan Requests
under Section 2.5 [Revolving Credit Loan Requests] or to revoke notice relating
to prepayments under Section 4.4 [Voluntary Prepayments], or

                            (ii) default by the Borrowers in the performance or
observance of any covenant or condition contained in this Agreement or any other
Loan Document, including any failure of the Borrower to pay when due (by
acceleration or otherwise) any principal, interest, Agent's Fee, Commitment Fee,
Letter of Credit Fee, or any other amount due hereunder.

                  If any Bank sustains or incurs any such loss or expense, it
shall from time to time notify the Borrowers of the amount determined in good
faith by such Bank (which determination may include such assumptions,
allocations of costs and expenses and averaging or attribution methods as such
Bank shall deem reasonable) to be necessary to indemnify such Bank for such loss
or expense. Such notice shall set forth in reasonable detail the basis for such
determination. Such amount shall be due and payable by the Borrowers to such
Bank ten (10) Business Days after such notice is given.

<PAGE>

                       5. REPRESENTATIONS AND WARRANTIES

                  5.1 Representations and Warranties.

                  The Borrowers, jointly and severally, represent and warrant to
the Agent and each of the Banks as follows:

                      5.1.1 Organization and Qualification.

                      Each Borrower and each Subsidiary of each Borrower is a
corporation, partnership or limited liability company duly organized, validly
existing and in good standing (or the equivalent thereof, if any) under the laws
of its jurisdiction of organization. Each Borrower and each Subsidiary of each
Borrower has the lawful power to own or lease its properties and to engage in
the business it presently conducts or proposes to conduct. Each Borrower and
each Subsidiary of each Borrower is duly licensed or qualified and in good
standing in each jurisdiction listed on Schedule 5.1.1 and in all other
jurisdictions where the property owned or leased by it or the nature of the
business transacted by it or both makes such licensing or qualification
necessary, except where the failure to do so would not result in a Material
Adverse Change.

                      5.1.2 Capitalization and Ownership.

                      The authorized capital stock of Parent are described on
Schedule 5.1.2. All of the shares of capital stock of Parent (collectively, the
"Shares") have been validly issued and are fully paid and nonassessable. There
are no options, warrants or other rights outstanding to purchase any such shares
except as indicated on Schedule 5.1.2.

                      5.1.3 Subsidiaries.

                      Schedule 5.1.3 states the name of each of Parent's
Subsidiaries (including Corp), its jurisdiction of incorporation, its authorized
capital stock, the issued and outstanding shares (referred to herein as the
"Subsidiary Shares") and the owners thereof if it is a corporation, its
outstanding partnership interests (the "Partnership Interests") if it is a
partnership and its outstanding limited liability company interests, interests
assigned to managers thereof and the voting rights associated therewith (the
"LLC Interests") if it is a limited liability company. Except as set forth on
Schedule 5.1.3, the Borrower and each Subsidiary of the Borrower has good and
valid title to all of the Subsidiary Shares, Partnership Interests and LLC
Interests it purports to own, free and clear in each case of any Lien. All
Subsidiary Shares, Partnership Interests and LLC Interests have been validly
issued, and all Subsidiary Shares are fully paid and nonassessable. All capital
contributions and other consideration required to be made or paid in connection
with the issuance of the Partnership Interests and LLC Interests have been made
or paid, as the case may be. There are no options, warrants or other rights
outstanding to purchase any such Subsidiary Shares, Partnership Interests or LLC
Interests except as indicated on Schedule 5.1.3. Each Subsidiary of Parent and
of each Borrower is also a Borrower hereunder, except the Non-US Subsidiaries
listed on Schedule 5.1.3.

<PAGE>

                      5.1.4 Power and Authority.

                      Each Borrower has full power to enter into, execute,
deliver and carry out this Agreement and the other Loan Documents to which it is
a party, to incur the Indebtedness contemplated by the Loan Documents and to
perform its Obligations under the Loan Documents to which it is a party, and all
such actions have been duly authorized by all necessary proceedings on its part.

                      5.1.5 Validity and Binding Effect.

                      This Agreement has been duly and validly executed and
delivered by each Borrower, and each other Loan Document which any Borrower is
required to execute and deliver on or after the date hereof will have been duly
executed and delivered by such Borrower on the required date of delivery of such
Loan Document. This Agreement and each other Loan Document constitutes, or will
constitute, legal, valid and binding obligations of each Borrower which is or
will be a party thereto on and after its date of delivery thereof, enforceable
against such Borrower in accordance with its terms, except to the extent that
enforceability of any of such Loan Document may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforceability of creditors' rights generally or limiting the right of specific
performance.

                      5.1.6 No Conflict.

                      Neither the execution and delivery of this Agreement or
the other Loan Documents by any Borrower nor the consummation of the
transactions herein or therein contemplated or compliance with the terms and
provisions hereof or thereof by any of them will conflict with, constitute a
default under or result in any breach of (i) the terms and conditions of the
certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation, limited liability company
agreement or other organizational documents of any Borrower or (ii) any Law or
any material agreement or instrument or order, writ, judgment, injunction or
decree to which any Borrower or any of its Subsidiaries is a party or by which
it or any of its Subsidiaries is bound or to which it is subject, or result in
the creation or enforcement of any Lien, charge or encumbrance whatsoever upon
any property (now or hereafter acquired) of any Borrower or any of its
Subsidiaries (other than Liens granted under the Loan Documents).

                      5.1.7 Litigation.

                      There are no actions, suits, proceedings or investigations
pending or, to the knowledge of any Borrower, threatened against such Borrower
or any Subsidiary of such Borrower at law or equity before any Official Body
which individually or in the aggregate would result in any Material Adverse
Change. To the best of the Borrowers knowledge, none of the Borrowers or any
Subsidiaries of any Borrower is in violation of any order, writ, injunction or
any decree of any Official Body applicable to it which would result in any
Material Adverse Change.

<PAGE>

                  5.1.8 Title to Properties.

                  The real property owned or leased by each Borrower and each
Subsidiary of each Borrower is described on Schedule 5.1.8. Each Borrower and
each Subsidiary of each Borrower has good and marketable title to or valid
leasehold interest in all properties, assets and other rights which it purports
to own or lease or which are reflected as owned or leased on its books and
records, free and clear of all Liens and encumbrances except Permitted Liens,
and subject to the terms and conditions of the applicable leases. All leases of
property are in full force and effect without the necessity for any consent
which has not previously been obtained upon consummation of the transactions
contemplated hereby.

                  5.1.9 Financial Statements.

                            (i) Historical Statements. The Borrowers have
delivered to the Agent copies of their audited year-end financial statements for
and as of the end of the fiscal year ending December 31, 1999. In addition, the
Borrowers have delivered to the Agent copies of their pro forma combined
financial statements for Parent and U.S. Interactive Corp. (Delaware) and Soft
Plus for the fiscal year ended December 31, 1999 (together, the "Historical
Statements"). The Historical Statements were compiled from the books and records
maintained by Parent and Soft Plus' management, are correct and complete and
fairly represent the consolidated financial condition of Parent and its
Subsidiaries as of their dates and the results of operations for the fiscal
periods then ended and have been prepared in accordance with GAAP consistently
applied (except as noted), subject (in the case of the Interim Statements) to
normal year-end audit adjustments.

                            (ii) Projections. The Borrower has delivered to the
Agent financial projections of Parent and its Subsidiaries for the fiscal years
2000 and 2001 derived from various assumptions of the Borrower's management (the
"Projections"). The Projections represent Borrower's current estimate of a
reasonable range of possible results in light of the history of the business,
present and reasonably foreseeable conditions and the current intentions of
Parent's management. The Projections accurately reflect the liabilities of
Parent and its Subsidiaries in all material respects upon consummation of the
transactions contemplated hereby as of the Closing Date.

                            (iii) Accuracy of Financial Statements. Neither
Parent nor any Subsidiary of the Borrower has any material liabilities,
contingent or otherwise, or forward or long-term commitments that are not
disclosed in the Historical Statements or in the notes thereto, and except as
disclosed therein there are no material unrealized or anticipated losses from
any commitments of the Borrower or any Subsidiary of the Borrower which will
cause a Material Adverse Change. Since December 31, 1999, no Material Adverse
Change has occurred.

                      5.1.10 Margin Stock; Section 20 Subsidiaries.

                             5.1.10.1 Margin Stock.

                              None of the Borrowers or any Subsidiaries of any
Borrower engages or intends to engage principally, or as one of its important
activities, in the business of extending credit for the purpose, immediately,
incidentally or ultimately, of purchasing or carrying margin stock (within the
meaning of Regulation U). No part of the proceeds of any Loan has been or will
be used, immediately, incidentally or ultimately, to purchase or carry any
margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or to refund Indebtedness originally incurred for such
purpose, or for any purpose which entails a violation of or which is
inconsistent with the provisions of the regulations of the Board of Governors of
the Federal Reserve System. None of the Borrowers or any Subsidiary of any
Borrower holds or intends to hold margin stock in such amounts that more than
25% of the reasonable value of the assets of any Borrower or Subsidiary of any
Borrower are or will be represented by margin stock.

<PAGE>

                             5.1.10.2 Section 20 Subsidiaries.

                              The Borrowers do not intend to use and shall not
use any portion of the proceeds of the Loans, directly or indirectly, to
purchase during the underwriting period, or for thirty (30) days thereafter,
Ineligible Securities being underwritten by a Section 20 Subsidiary.

                      5.1.11   Full Disclosure.

                      To the best knowledge of the Borrowers, neither this
Agreement nor any other Loan Document, nor any certificate, statement, agreement
or other documents furnished to the Agent or any Bank in connection herewith or
therewith, contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein and
therein, in light of the circumstances under which they were made, not
misleading.

                      5.1.12   Taxes.

                      All federal, state, local and other tax returns required
to have been filed with respect to each Borrower and each Subsidiary of each
Borrower (other than for minor use taxes the non-payment of which would not
cause a Material Adverse Change) have been filed, and payment or adequate
provision has been made for the payment of all taxes, fees, assessments and
other governmental charges which have or may become due pursuant to said returns
or to assessments received, except to the extent that such taxes, fees,
assessments and other charges are being contested in good faith by appropriate
proceedings diligently conducted or for which an extension to file has been
timely and properly requested and for which such reserves or other appropriate
provisions, if any, as shall be required by GAAP shall have been made. There are
no agreements or waivers extending the statutory period of limitations
applicable to any federal income tax return of any Borrower or Subsidiary of any
Borrower for any period, except for extensions lawfully requested by the
Borrowers for the filing of the most current fiscal year's tax return.

                      5.1.13   Consents and Approvals.

                      Except for the filing of financing statements in the state
and county filing offices, no consent, approval, exemption, order or
authorization of, or a registration or filing with, any Official Body or any
other Person is required by any Law or any agreement in connection with the
execution, delivery and carrying out of this Agreement and the other Loan
Documents by any Borrower, except as listed on Schedule 5.1.13, all of which
shall have been obtained or made on or prior to the Closing Date except as
otherwise indicated on Schedule 5.1.13.

<PAGE>

                      5.1.14 No Event of Default; Compliance with Instruments.

                      To the best knowledge of the Borrowers, no event has
occurred and is continuing and no condition exists or will exist after giving
effect to the borrowings or other extensions of credit to be made on the Closing
Date under or pursuant to the Loan Documents which constitutes an Event of
Default or Potential Default. None of the Borrowers or any Subsidiaries of any
Borrower is in violation of (i) any term of its certificate of incorporation,
bylaws, certificate of limited partnership, partnership agreement, certificate
of formation, limited liability company agreement or other organizational
documents or (ii) any material agreement or instrument to which it is a party or
by which it or any of its properties may be subject or bound where such
violation would constitute a Material Adverse Change.

                      5.1.15 Patents, Trademarks, Copyrights, Licenses, Etc.

                      Each Borrower and each Subsidiary of each Borrower owns or
possesses all the material patents, trademarks, service marks, trade names,
copyrights, licenses, registrations, franchises, permits and rights necessary to
own and operate its properties and to carry on its business as presently
conducted and planned to be conducted by such Borrower or Subsidiary, without
known possible, alleged or actual conflict with the rights of others. All
material patents, trademarks, service marks, trade names, copyrights, licenses,
registrations, franchises and permits of each Borrower and each Subsidiary of
each Borrower are listed and described on Schedule 5.1.15.

                      5.1.16 Security Interests.

                      The Liens and security interests granted to the Agent for
the benefit of the Banks pursuant to the Patent, Trademark and Copyright
Security Agreement, the Pledge Agreement and the Security Agreement in the
Collateral (other than the Real Property) constitute and will continue to
constitute Prior Security Interests under the Uniform Commercial Code as in
effect in each applicable jurisdiction (the "Uniform Commercial Code") or other
applicable Law entitled to all the rights, benefits and priorities provided by
the Uniform Commercial Code or such Law, once the Liens existing under Existing
Facilities are removed of record. Upon the filing of financing statements
relating to said security interests in each office and in each jurisdiction
where required in order to perfect the security interests described above,
taking possession of any stock certificates or other certificates evidencing the
Pledged Collateral, recordation of the Patent, Trademark and Copyright Security
Agreement in the United States Patent and Trademark Office and United States
Copyright Office, as applicable, and removal of the Liens existing under the
Existing Facilities, all such action as is necessary or advisable to establish
such rights of the Agent will have been taken, and there will be upon execution
and delivery of the Patent, Trademark and Copyright Security Agreement, the
Pledge Agreement and the Security Agreement, such filings and such taking of
possession, no necessity for any further action in order to preserve, protect
and continue such rights, except the filing of continuation statements with
respect to such financing statements within six months prior to each five-year
anniversary of the filing of such financing statements. All filing fees and
other expenses in connection with each such action have been or will be paid by
the Borrowers.

<PAGE>

                      5.1.17 Status of the Pledged Collateral.

                      All the shares of capital stock (the "Pledged Shares"),
Partnership Interests or LLC Interests included in the Pledged Collateral to be
pledged pursuant to the Pledge Agreement are or will be upon issuance validly
issued and nonassessable and owned beneficially and of record by the pledgor
free and clear of any Lien or restriction on transfer, except as otherwise
provided by the Pledge Agreement and except as the right of the Banks to dispose
of the Pledged Shares, Partnership Interests or LLC Interests may be limited by
the Securities Act of 1933, as amended, and the regulations promulgated by the
Securities and Exchange Commission thereunder and by applicable state securities
laws. There are no shareholder, partnership, limited liability company or other
agreements or understandings with respect to the Pledged Shares, Partnership
Interests or LLC Interests included in the Pledged Collateral except for the
partnership agreements and limited liability company agreements described on
Schedule 5.1.17. The Borrowers have delivered true and correct copies of such
partnership agreements and limited liability company agreements to the Agent.

                      5.1.18 Insurance.

                      Schedule 5.1.18 lists all insurance policies and other
bonds to which any Borrower or Subsidiary of any Borrower is a party, all of
which are valid and in full force and effect. No notice has been given or claim
made and no grounds exist to cancel or avoid any of such policies or bonds or to
reduce the coverage provided thereby. Such policies and bonds provide adequate
coverage from reputable and financially sound insurers in amounts sufficient to
insure the assets and risks of each Borrower and each Subsidiary of each
Borrower in accordance with prudent business practice in the industry of the
Borrowers and their Subsidiaries and shall show the Agent as loss payee.

                      5.1.19 Compliance with Laws.

                      The Borrowers and their Subsidiaries are in compliance in
all material respects with all applicable Laws in all jurisdictions in which any
Borrower or Subsidiary of any Borrower is presently or will be doing business
except where the failure to do so would not result in a Material Adverse Change.

                      5.1.20 Material Contracts; Burdensome Restrictions.

                      Schedule 5.1.20 lists all material contracts relating to
the business operations of ach Borrower and each Subsidiary of any Borrower,
including all employee benefit plans and Labor Contracts. All such material
contracts are valid, binding and enforceable upon such Borrower or Subsidiary
and each of the other parties thereto in accordance with their respective terms,
and there is no default thereunder, to the Borrowers' knowledge, with respect to
parties other than such Borrower or Subsidiary. None of the Borrowers or their
Subsidiaries is bound by any contractual obligation, or subject to any
restriction in any organization document, or any requirement of Law which could
result in a Material Adverse Change.

                      5.1.21 Investment Companies; Regulated Entities.

                      None of the Borrowers or any Subsidiaries of any Borrower
is an "investment company" registered or required to be registered under the
Investment Company Act of 1940 or under the "control" of an

<PAGE>

"investment company" as such terms are defined in the Investment Company Act of
1940 and shall not become such an "investment company" or under such "control."
None of the Borrowers or any Subsidiaries of any Borrower is subject to any
other Federal state statute or regulation limiting its ability to incur
Indebtedness for borrowed money.

                      5.1.22 Plans and Benefit Arrangements.

                     Except as set forth on Schedule 5.1.22:

                            (i) Parent and each other member of the ERISA Group
are in compliance in all material respects with any applicable provisions of
ERISA with respect to all Benefit Arrangements, Plans and Multiemployer Plans.
There has been no Prohibited Transaction with respect to any Benefit Arrangement
or any Plan or, to the best knowledge of Parent, with respect to any
Multiemployer Plan or Multiple Employer Plan, which could result in any material
liability of the Borrower or any other member of the ERISA Group. To the best
knowledge of Parent, Parent and all other members of the ERISA Group have made
when due any and all payments required to be made under any agreement relating
to a Multiemployer Plan or a Multiple Employer Plan or any Law pertaining
thereto. With respect to each Plan and Multiemployer Plan, the Borrower and each
other member of the ERISA Group, to the best of their knowledge (i) have
fulfilled in all material respects their obligations under the minimum funding
standards of ERISA, (ii) have not incurred any liability to the PBGC, and (iii)
have not had asserted against them any penalty for failure to fulfill the
minimum funding requirements of ERISA.

                            (ii) To the best of each Borrower's knowledge, each
Multiemployer Plan and Multiple Employer Plan is able to pay benefits thereunder
when due.

                            (iii) No Borrower nor any other member of the ERISA
Group has instituted or currently intends to institute proceedings to terminate
any Plan.

                            (iv) To the best knowledge of the Borrowers, no
event requiring notice to the PBGC under Section 302(f)(4)(A) of ERISA has
occurred or is reasonably expected to occur with respect to any Plan, and no
amendment with respect to which security is required under Section 307 of ERISA
has been made or is reasonably expected to be made to any Plan.

                            (v) The aggregate actuarial present value of all
benefit liabilities (whether or not vested) under each Plan, determined on a
plan termination basis, as disclosed in, and as of the date of, the most recent
actuarial report for such Plan, if any, does not exceed the aggregate fair
market value of the assets of such Plan.

                            (vi) To the best knowledge of the Borrowers, no
Borrower nor any other member of the ERISA Group has incurred or reasonably
expects to incur any material withdrawal liability under ERISA to any
Multiemployer Plan or Multiple Employer Plan. No Borrower nor any other member
of the ERISA Group has been notified by any Multiemployer Plan or Multiple
Employer Plan that such Multiemployer Plan or Multiple Employer Plan has been
terminated within the meaning of Title IV of ERISA and, to the best knowledge of
each Borrower, no Multiemployer Plan or Multiple Employer Plan is reasonably
expected to be reorganized or terminated, within the meaning of Title IV of
ERISA.

<PAGE>

                            (vii) To the extent that any Benefit Arrangement is
insured, the Borrower and all other members of the ERISA Group have paid when
due all premiums required to be paid for all periods through the Closing Date.
To the extent that any Benefit Arrangement is funded other than with insurance,
Parent and all other members of the ERISA Group have made when due all
contributions required to be paid for all periods through the Closing Date.

                            (viii) All Plans, Benefit Arrangements and
Multiemployer Plans have been administered in accordance with their terms and
applicable Law.

                      5.1.23 Employment Matters.

                      Each of the Borrowers and each of their Subsidiaries is in
compliance with the Labor Contracts and all applicable federal, state and local
labor and employment Laws including those related to equal employment
opportunity and affirmative action, labor relations, minimum wage, overtime,
child labor, medical insurance continuation, worker adjustment and relocation
notices, immigration controls and worker and unemployment compensation, where
the failure to comply would result in a Material Adverse Change. There are no
outstanding grievances, arbitration awards or appeals therefrom arising out of
the Labor Contracts or current or threatened strikes, picketing, handbilling or
other work stoppages or slowdowns at facilities of any of the Borrowers or any
of their Subsidiaries which in any case would constitute a Material Adverse
Change. The Borrowers have delivered to the Agent true and correct copies of
each of the Labor Contracts.

                      5.1.24 Environmental Matters.

                            (i) None of the Borrowers or any Subsidiary has
received any notice, alert, citation or complaint relating to any hazardous
material, waste or any environmental law regulation or order and has no reason
to believe that it will receive any of the foregoing.

                            (ii) There are no regulated substances present on,
in, under, or emanating from, or to Borrowers' knowledge emanating to, the
Property or any portion thereof which result in any event described in items (i)
of this Section 5.1.24.

                      5.1.25 Year 2000.

                      The Borrowers and their Subsidiaries have reviewed the
areas within their business and operations which would be adversely affected by,
and have developed or are developing a program to address on a timely basis, the
risk that certain computer applications used by the Borrowers and their
Subsidiaries (or any of their respective material suppliers, customers or
vendors) may be unable to recognize and perform properly date-sensitive
functions involving dates prior to and after December 31, 1999 (the "Year 2000
Problem"). The Year 2000 Problem will not result in any Material Adverse Change.

<PAGE>

                      5.1.26 Senior Debt Status.

                      The Obligations of each Borrower under this Agreement, the
Notes, and each of the other Loan Documents to which it is a party do rank and
will rank at least pari passu in priority of payment with all other Indebtedness
of such Borrower except Indebtedness of such Borrower to the extent secured by
Permitted Liens. There is no Lien upon or with respect to any of the properties
or income of any Borrower or Subsidiary of any Borrower which secures
indebtedness or other obligations of any Person except for Permitted Liens.

                  5.2 Updates to Schedules.

                  Should any of the information or disclosures provided on any
of the Schedules attached hereto become outdated or incorrect in any material
respect, the Borrowers shall promptly provide the Agent in writing with such
revisions or updates to such Schedule as may be necessary or appropriate to
update or correct same; provided, however, that no Schedule shall be deemed to
have been amended, modified or superseded by any such correction or update, nor
shall any breach of warranty or representation resulting from the inaccuracy or
incompleteness of any such Schedule be deemed to have been cured thereby, unless
and until the Required Banks, according to the standards set forth in Section
10.1, shall have accepted in writing such revisions or updates to such Schedule.

                            6. CONDITIONS OF LENDING

         The obligation of each Bank to make Loans and to issue Letters of
Credit hereunder is subject to the performance by each of the Borrowers of its
Obligations to be performed hereunder at or prior to the making of any such
Loans or issuance of such Letters of Credit and to the satisfaction of the
following further conditions:

                  6.1 First Loans.

                  On the Closing Date:

                      6.1.1 Officer's Certificate.

                      The representations and warranties of each of the
Borrowers contained in Section 5 and in each of the other Loan Documents shall
be true and accurate in all material respects on and as of the Closing Date with
the same effect as though such representations and warranties had been made on
and as of such date (except representations and warranties which relate solely
to an earlier date or time, which representations and warranties shall be true
and correct in all material respects on and as of the specific dates or times
referred to therein), and each of the Borrowers shall have performed and
complied in all material respects with all covenants and conditions hereof and
thereof; no Event of Default or Potential Default shall have occurred and be
continuing or shall exist; and, on the date of any Loan Request delivered after
the Closing Date,there shall be delivered to the Agent for the benefit of each
Bank a certificate of each of the Borrowers, dated the Closing Date and signed
by the Chief Executive Officer, President or Chief Financial Officer of the
Borrower Agent, to each such effect.

<PAGE>

                      6.1.2 Secretary's Certificate.

                      There shall be delivered to the Agent for the benefit of
each Bank a certificate dated the Closing Date and signed by the Secretary or an
Assistant Secretary of each of the Borrowers, certifying as appropriate as to:

                            (i) all action taken by each Borrower in connection
with this Agreement and the other Loan Documents;

                            (ii) the names of the officer or officers authorized
to sign this Agreement and the other Loan Documents and the true signatures of
such officer or officers and specifying the officers authorized to act on behalf
of each Borrower for purposes of this Agreement and the true signatures of such
officers, on which the Agent and each Bank may conclusively rely; and

                            (iii) copies of its organizational documents,
including its certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, and limited
liability company agreement as in effect on the Closing Date certified by the
appropriate state official where such documents are filed in a state office
together with certificates from the appropriate state officials as to the
continued existence and good standing of each Borrower in each state where
organized or qualified to do business.

                      6.1.3 Delivery of Loan Documents.

                      This Agreement, Borrower Agency Agreement, Notes, Patent,
Trademark and Copyright Security Agreement, Pledge Agreement, Intercompany
Subordination Agreement and Security Agreement shall have been duly executed and
delivered to the Agent for the benefit of the Banks, together with all
appropriate financing statements and appropriate stock powers and certificates
evidencing the Pledged Shares, the Partnership Interests and the LLC Interests.

                      6.1.4 Opinion of Counsel.

                      There shall be delivered to the Agent for the benefit of
each Bank a written opinion of Dilworth Paxson, LLP, counsel for the Borrowers
(who may rely on the opinions of such other counsel as may be acceptable to the
Agent), dated the Closing Date and in form and substance reasonably satisfactory
to the Agent and its counsel as to such matters incident to the transactions
contemplated herein as the Agent may reasonably request.

                      6.1.5 Legal Details.

                      All legal details and proceedings in connection with the
transactions contemplated by this Agreement and the other Loan Documents shall
be in form and substance reasonably satisfactory to the Agent and counsel for
the Agent, and the Agent shall have received all such other counterpart
originals or certified or other copies of such documents and proceedings in
connection with such transactions, in form and substance reasonably satisfactory
to the Agent and said counsel, as the Agent or said counsel may reasonably
request.

<PAGE>

                      6.1.6 Payment of Fees.

                      The Borrower shall have paid or caused to be paid to the
Agent for itself and for the account of the Banks to the extent not previously
paid the Facility Fees, all other commitment and other fees accrued through the
Closing Date and the costs and expenses for which the Agent and the Banks are
entitled to be reimbursed.

                      6.1.7 Intentionally Omitted..

                      6.1.8 Consents.

                      All material consents required to effectuate the
transactions contemplated hereby as set forth on Schedule 5.1.13 shall have been
obtained.

                      6.1.9 Intentionally Omitted.

                      6.1.10 No Violation of Laws.

                      The making of the Loans and the issuance of the Letters of
Credit shall not contravene any Law applicable to any Borrower or any of the
Banks.

                      6.1.11 No Actions or Proceedings.

                      No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, this Agreement, the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby or which, in the
Agent's sole and reasonable discretion, would make it inadvisable to consummate
the transactions contemplated by this Agreement or any of the other Loan
Documents.

                      6.1.12 Insurance Policies; Certificates of Insurance;
Endorsements.

                      The Borrowers shall have delivered evidence acceptable to
the Agent that adequate insurance in compliance with Section 7.1.3 [Maintenance
of Insurance] is in full force and effect and that all premiums then due thereon
have been paid, together with a evidence of coverage satisfactory to the Agent,
with additional insured, mortgagee and lender loss payable special endorsements
attached thereto in form and substance satisfactory to the Agent and its counsel
naming the Agent as additional insured and lender loss payee.

<PAGE>

                      6.1.13 Intentionally Omitted.

                      6.1.14 Intentionally Omitted.

                      6.1.15 Repayment of Existing Facility.

                      The Borrowers shall repay with proceeds of the Loans all
of the Indebtedness and satisfied the other related obligations under the
Existing Facility and shall have delivered fully executed UCC-3 (or UCC-2 in
California) termination statements and all other satisfaction or discharge items
so as to evidence, when filed, the Agent's Prior Security Interest in all of the
Collateral, subject to the Permitted Liens.

                  6.2 Each Additional Loan or Letter of Credit.

                  At the time of making any Loans or issuing any Letters of
Credit or issuing any other than Loans made or Letters of Credit issued on the
Closing Date and after giving effect to the proposed extensions of credit: the
representations and warranties of the Borrowers contained in Section 5 and in
the other Loan Documents shall be true in all material respects on and as of the
date of such additional Loan with the same effect as though such representations
and warranties had been made on and as of such date (except representations and
warranties which expressly relate solely to an earlier date or time, which
representations and warranties shall be true and correct on and as of the
specific dates or times referred to therein) and the Borrowers shall have
performed and complied in all material respects with all covenants and
conditions hereof; no Event of Default or Potential Default shall have occurred
and be continuing or shall exist; the making of the Loans or issuance of such
Letter of Credit shall not contravene any Law applicable to any Borrower or
Subsidiary of any Borrower or any of the Banks; and the Borrowers shall have
delivered to the Agent a duly executed and completed Loan Request or application
for a Letter of Credit as the case may be.

                                  7. COVENANTS

                  7.1 Affirmative Covenants.

                  The Borrowers, jointly and severally, covenant and agree that
until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings and interest thereon, satisfaction of all of the Borrowers'
other Obligations under the Loan Documents and termination of the Commitments,
and expiration or termination of all Letters of Credit, the Borrowers shall
comply at all times with the following affirmative covenants:

                      7.1.1 Preservation of Existence, Etc.

                      Each Borrower shall, and shall cause each of its
Subsidiaries to, maintain its legal existence as a corporation, limited
partnership or limited liability company and its license or qualification and
good standing in each jurisdiction in which its ownership or lease of property
or the nature of its business makes such license or qualification necessary,
except where the failure to so maintain such license or qualification would not
result in a Material Adverse Change and except as otherwise expressly permitted
in Section 7.2.6 [Liquidations, Mergers, Etc.].

<PAGE>

                      7.1.2 Payment of Liabilities, Including Taxes, Etc.

                      Each Borrower shall, and shall cause each of its
Subsidiaries to, duly pay and discharge all liabilities to which it is subject
or which are asserted against it, promptly as and when the same shall become due
and payable, including all taxes, assessments and governmental charges upon it
or any of its properties, assets, income or profits, prior to the date on which
penalties attach thereto, except to the extent that such liabilities, including
taxes, assessments or charges, are being contested in good faith and by
appropriate and lawful proceedings diligently conducted and for which such
reserve or other appropriate provisions, if any, as shall be required by GAAP
shall have been made, but only to the extent that failure to discharge any such
liabilities would not result in any additional liability which would adversely
affect to a material extent the financial condition of any Borrower or
Subsidiary of any Borrower or which would affect the Collateral, provided that
the Borrowers and their Subsidiaries will pay all such liabilities forthwith
upon the commencement of proceedings to foreclose any Lien which may have
attached as security therefor.

                      7.1.3 Maintenance of Insurance.

                      Each Borrower will maintain or cause to be maintained,
with financially sound and reputable insurers, public liability and property
damage insurance with respect to its business and properties and the business
and properties of its Subsidiaries against loss or damage of the kinds
customarily carried or maintained by Persons of established reputation engaged
in similar businesses and in amounts acceptable to Agent and will deliver
evidence thereof to Agent. The Borrowers shall cause, pursuant to endorsements
and assignments in form and substance reasonably satisfactory to Agent, the
Agent, for the benefit of Agent and Banks, to be named as lender's loss payee in
the case of casualty insurance, Agent, for the benefit of Agent and Banks, to be
named as additional insured in the case of all liability insurance and Agent,
for the benefit of Agent and Banks, to be named as assignee in the case of all
business interruption insurance; provided, that notwithstanding the foregoing,
in the absence of a Potential Default or an Event of Default, the Borrowers may
receive and retain proceeds from such casualty policies to the extent that such
proceeds are less than or equal to $7,500,000.

                      7.1.4 Maintenance of Properties and Leases.

                      Each Borrower shall, and shall cause each of its
Subsidiaries to, maintain in good repair, working order and condition (ordinary
wear, tear and obsolescence excepted) in accordance with the general practice of
other businesses of similar character and size, all of those properties useful
and necessary to its business, and from time to time, such Borrower will make or
cause to be made all appropriate repairs, renewals or replacements thereof.

                      7.1.5 Maintenance of Patents, Trademarks, Etc.

                      Each Borrower shall, and shall cause each of its
Subsidiaries to, maintain in full force and effect all patents, trademarks,
service marks, trade names, copyrights, licenses, franchises, permits and other
authorizations necessary for the ownership and operation of its properties and
business if the failure so to maintain the same would result in a Material
Adverse Change.

<PAGE>

                      7.1.6 Visitation Rights.

                      Each Borrower shall, and shall cause each of its
Subsidiaries to, permit any of the officers or authorized employees, agents or
representatives of the Agent or any of the Banks to visit as often as
semi-annually at the Borrowers' expense and inspect any of its properties and to
examine and make excerpts from its books and records and discuss its business
affairs, finances and accounts with its officers, all in such detail and at such
reasonable times during ordinary business hours and as often as any of the Banks
may reasonably request, provided that each Bank shall provide the Borrowers and
the Agent with reasonable notice prior to any visit or inspection. In the event
any Bank desires to visit and inspect any Borrower, such Bank shall make a
reasonable effort to conduct such visit and inspection contemporaneously with
any and inspection to be performed by the Agent. The Agent, at the sole cost and
expense of the Borrowers, may obtain appraisals or valuations of the Borrowers'
and their Subsidiaries' assets, including the Collateral and all Accounts as the
Agent may require in form and substance satisfactory to the Agent in all
respects.

                      7.1.7 Keeping of Records and Books of Account.

                      The Borrowers shall, and shall cause each Subsidiary of
the Borrower to, maintain and keep commercially reasonable books of record and
account which enable the Borrower and its Subsidiaries to issue financial
statements in accordance with GAAP and as otherwise required by applicable Laws
of any Official Body having jurisdiction over the Borrowers or any Subsidiary of
the Borrowers, and in which full, true and correct entries shall be made in all
material respects of all its dealings and business and financial affairs.

                      7.1.8 Plans and Benefit Arrangements.

                      Parent shall, and shall cause each other member of the
ERISA Group to, comply with ERISA, the Internal Revenue Code and other
applicable Laws applicable to Plans and Benefit Arrangements except where such
failure, alone or in conjunction with any other failure, would not result in a
Material Adverse Change. Without limiting the generality of the foregoing, the
Borrower shall cause all of its Plans and all Plans maintained by any member of
the ERISA Group to be funded in material accordance with the minimum funding
requirements of ERISA and shall make, and cause each member of the ERISA Group
to make, in a timely manner, all contributions due to Plans, Benefit
Arrangements and Multiemployer Plans.

                      7.1.9 Compliance with Laws.

                      Each Borrower shall, and shall cause each of its
Subsidiaries to, comply with all applicable Laws in all respects, provided that
it shall not be deemed to be a violation of this Section 7.1.9 if any failure to
comply with any Law would not result in fines, penalties, remediation costs,
other similar liabilities or injunctive relief which in the aggregate would
result in a Material Adverse Change.

                      7.1.10 Use of Proceeds.

                      The Borrowers will use the Letters of Credit and the
proceeds of the Loans only for (i) financing a portion of the Soft Plus
Transaction (ii) general corporate purposes and for working capital, (iii) to
finance Permitted Acquisitions, or (iv) to repay and terminate Indebtedness

<PAGE>

outstanding under the Existing Facility. The Borrowers shall not use the
proceeds of the Loans and the Letters of Credit for any purpose which
contravenes any applicable Law or any provision hereof.

                      7.1.11 Further Assurances.

                      Each Borrower shall, from time to time, at its expense,
faithfully preserve and protect the Agent's Lien on and Prior Security Interest
in the Collateral as a continuing first priority perfected Lien, subject only to
Permitted Liens, and shall do such other acts and things as the Agent in its
sole discretion may deem necessary or advisable from time to time in order to
preserve, perfect and protect the Liens granted under the Loan Documents and to
exercise and enforce its rights and remedies thereunder with respect to the
Collateral.

                      7.1.12 Subordination of Intercompany Loans.

                      Each Borrower shall cause any intercompany Indebtedness,
loans or advances owed by any Borrower to any other Borrower to be subordinated
pursuant to the terms of the Intercompany Subordination Agreement.

                      7.1.13 Maintenance of Bank Accounts.

                      Commencing on or before June 30, 2000, Parent and each
other Borrower shall maintain their primary operating and treasury function
accounts, and at least 50% (measured by Dollar amount) of their investment
accounts, at PNC Bank or Affiliates thereof.

                      7.1.14 Landlord's Waiver.

                      Within forty-five (45) days after the date of this
Agreement, the Borrowers shall use their best efforts to deliver to Agent an
executed Landlord's Waiver in substantially the form of that used in the
Existing Facility from the lessor of the leased Collateral location where the
books and records of the Borrowers are maintained. Within sixty (60) days after
the date of this Agreement, the Borrowers shall use their best efforts to
deliver to the Agent an executed Landlord's Waiver in substantially the form of
that used in the Existing Facility from the lessor for each other leased
Collateral location, as listed on Schedule A to the Security Agreement. Such
Landlord's Waivers shall be substantially in the form delivered to Progress Bank
in connection with the Existing Facility.

                      7.1.15 Non-US Subsidiary Pledge.

                      Within sixty (60) days after the date of this Agreement,
Corp shall use its best efforts to execute and deliver to the Agent a pledge
agreement (in the form of the Pledge Agreement) with respect to the Non-US
Subsidiaries, and all stock certificates and stock powers requested by Agent
with respect thereto; upon such delivery, the definition of Collateral shall
include such stock and the definition of Pledge Agreement shall include such
pledge agreement.

<PAGE>

                  7.2 Negative Covenants.

                  The Borrowers, jointly and severally, covenant and agree that
until payment in full of the Loans, Reimbursement Obligations, Letter of Credit
Borrowings and interest thereon, satisfaction of all of the Borrowers' other
Obligations hereunder, expiration or termination of all Letters of Credit and
termination of the Commitments, the Borrowers shall comply with the following
negative covenants:

                      7.2.1 Indebtedness.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Indebtedness, except:

                            (i) Indebtedness under the Loan Documents;

                            (ii) Existing Indebtedness as set forth on Schedule
7.2.1 (including any extensions or renewals thereof, provided there is no
increase in the amount thereof or other significant change in the terms thereof
unless otherwise specified on Schedule 7.2.1);

                            (iii) Capitalized and operating leases as and to the
extent not prohibited by this Agreement;

                            (iv) Indebtedness secured by Purchase Money Security
Interests not exceeding $5,000,000;

                            (v) Indebtedness of a Borrower to another Borrower
which is subordinated in accordance with the provisions of Section 7.1.12
[Subordination of Intercompany Loans]; and

                            (vi) Aggregate Indebtedness of each Borrower not in
excess of $5,000,000 incurred in connection with Permitted Acquisitions.

                      7.2.2 Liens.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Lien on any of its property or assets, tangible or intangible, now owned or
hereafter acquired, or agree or become liable to do so, except as follows (such
following exceptions referred to herein as "Permitted Liens"):

                            (i) Liens for taxes, assessments, or similar
charges, incurred in the ordinary course of business and which are not yet due
and payable after the expiration of all applicable grace and cure periods;

                            (ii) Pledges or deposits made in the ordinary course
of business to secure payment of workers' compensation, or to participate in any
fund in connection with workers' compensation, unemployment insurance, old-age
pensions or other social security programs;

<PAGE>

                            (iii) Liens of mechanics, materialmen, warehousemen,
carriers, or other like Liens, securing obligations incurred in the ordinary
course of business that are not yet due and payable and Liens of landlords
securing obligations to pay lease payments that are not yet due and payable or
in default, following the expiration of all applicable grace and cure periods;

                            (iv) Good-faith pledges or deposits made in the
ordinary course of business to secure performance of bids, tenders, contracts
(other than for the repayment of borrowed money) or leases, not in excess of the
aggregate amount due thereunder, or to secure statutory obligations, or surety,
appeal, indemnity, performance or other similar bonds required in the ordinary
course of business; (v) Encumbrances consisting of zoning restrictions,
easements or other restrictions on the use of real property, none of which
materially impairs the use of such property or the value thereof, and none of
which is violated in any material respect by existing or proposed structures or
land use;

                            (vi) Liens, security interests and mortgages in
favor of the Agent for the benefit of the Banks;

                            (vii) Liens on property leased by any Borrower or
Subsidiary of a Borrower under capital and operating leases not prohibited by
this Agreement securing obligations of such Borrower or Subsidiary to the lessor
under such leases;

                            (viii) Any Lien existing on the date of this
Agreement and described on Schedule 7.2.2, provided that the principal amount
secured thereby is not hereafter increased, and no additional assets become
subject to such Lien;

                            (ix) Purchase Money Security Interests, provided
that the aggregate amount of loans and deferred payments secured by
such Purchase Money Security Interests shall not exceed $5,000,000 (excluding
for the purpose of this computation any loans or deferred payments secured by
Liens described on Schedule 7.2.2); and

                            (x) The following, (A) if the validity or amount
thereof is being contested in good faith by appropriate and lawful proceedings
diligently conducted so long as levy and execution thereon have been stayed and
continue to be stayed or (B) if a final judgment is entered and such judgment is
discharged within thirty (30) days of entry, and in either case they do not
materially adversely affect the Collateral or, in the aggregate, materially
impair the ability of any Borrower to perform its Obligations hereunder or under
the other Loan Documents:

                      (1) Claims or Liens for taxes, assessments or charges due
and payable and subject to interest or penalty, provided that the applicable
Borrower maintains such reserves or other appropriate provisions as shall be
required by GAAP and pays all such taxes, assessments or charges forthwith upon
the commencement of proceedings to foreclose any such Lien;

                      (2) Claims, Liens or encumbrances upon, and defects of
title to, real or personal property other than the Collateral, including any
attachment of personal or real property or other legal process prior to
adjudication of a dispute on the merits; or

<PAGE>

                      (3) Claims or Liens of mechanics, materialmen,
warehousemen, carriers, or other statutory nonconsensual Liens.

                      (4) Liens resulting from final judgments or orders
described in Section 8.1.6.

                      7.2.3 Guaranties.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, at any time, directly or indirectly, become or be liable
in respect of any Guaranty, or assume, guarantee, become surety for, endorse or
otherwise agree, become or remain directly or contingently liable upon or with
respect to any obligation or liability of any other Person, not an Affiliate of
either Borrower, except for Guaranties of Indebtedness of the Borrowers
permitted hereunder; provided that under no circumstances shall any Borrower
violate Section 7.2.1 hereof.

                      7.2.4 Loans and Investments.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, at any time make or suffer to remain outstanding any
loan or advance to, or purchase, acquire or own any stock, bonds, notes or
securities of, or any partnership interest (whether general or limited) or
limited liability company interest in, or any other investment or interest in,
or make any capital contribution to, any other Person, or agree, become or
remain liable to do any of the foregoing, except:

                            (i) trade credit extended on usual and customary
terms in the ordinary course of business;

                            (ii) advances to employees to meet expenses incurred
by such employees in the ordinary course of business;

                            (iii) loans, advances and investments in other
Borrowers;

                            (iv) the following permitted investments: (i) direct
obligations of the United States of America or any agency or instrumentality
thereof or obligations backed by the full faith and credit of the United States
of America maturing in twelve (12) months or less from the date of acquisition;
(ii) commercial paper maturing in 180 days or less rated not lower than A-1, by
Standard & Poor's or P-1 by Moody's Investors Service, Inc. on the date of
acquisition; and (iii) demand deposits, time deposits or certificates of deposit
maturing within one year in commercial banks whose obligations are rated A-1, A
or the equivalent or better by Standard & Poor's on the date of acquisition; and

                            (v) loans and investments not to exceed $10,000,000
which have been described in a writing provided to the Banks on or before the
date hereof.

<PAGE>

                      7.2.5 Dividends and Related Distributions.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, make or pay, or agree to become or remain liable to make
or pay, any dividend or other distribution of any nature (whether in cash,
property, securities or otherwise) on account of or in respect of its shares of
capital stock, partnership interests or limited liability company interests on
account of the purchase, redemption, retirement or acquisition of its shares of
capital stock (or warrants, options or rights therefor), partnership interests
or limited liability company interests, except dividends or other distributions
payable to another Borrower.

                      7.2.6 Liquidations, Mergers, Consolidations, Acquisitions.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, dissolve, liquidate or wind-up its affairs, or become a
party to any merger or consolidation, or acquire by purchase, lease or otherwise
all or substantially all of the assets or capital stock of any other Person,
provided that

                      (1) any Borrower other than Parent may consolidate or
merge into another Borrower which is wholly-owned by one or more of the other
Borrowers, and

                      (2) any Borrower may acquire, whether by purchase or by
merger, (A) all of the ownership interests of another Person or (B)
substantially all of assets of another Person or of a business or division of
another Person (each an "Permitted Acquisition"), provided that each of the
following requirements is met:

                            (i) if the Borrowers are acquiring the ownership
interests in such Person, such Person shall execute a Joinder and join this
Agreement as a Guarantor pursuant to Section 10.18 [Joinder of Borrowers] on or
before the date of such Permitted Acquisition;

                            (ii) the Borrowers, such Person and its owners, as
applicable, shall grant Liens in the assets of or acquired from and stock or
other ownership interests in such Person and otherwise comply with Section 10.18
[Joinder of Guarantors] on or before the date of such Permitted Acquisition.

                            (iii) the board of directors or other equivalent
governing body of such Person shall have approved such Permitted Acquisition
and, if the Borrowers shall use any portion of the Loans to fund such Permitted
Acquisition, the Borrowers also shall have delivered to the Banks written
evidence of the approval of the board of directors (or equivalent body) of such
Person for such Permitted Acquisition,

                            (iv) the business acquired, or the business
conducted by the Person whose ownership interests are being acquired, as
applicable, shall be substantially the same as one or more line or lines of
business conducted by the Borrowers and shall comply with Section 7.2.10
[Continuation of or Change in Business],

                            (v) no Potential Default or Event of Default shall
exist immediately prior to and after giving effect to such Permitted
Acquisition,

<PAGE>

                            (vi) the Borrowers shall demonstrate that they shall
be in compliance with the covenants contained in Sections 7.2.15, 7.2.16 and
7.2.17 after giving effect to such Permitted Acquisition (including in such
computation Indebtedness or other liabilities assumed or incurred in connection
with such Permitted Acquisition but excluding income earned or expenses incurred
by the Person, business or assets to be acquired prior to the date of such
Permitted Acquisition) by delivering at least five (5) Business Days prior to
such Permitted Acquisition a certificate in the form of Exhibit 7.2.6 evidencing
such compliance.

                            (vii) the Consideration paid by the Borrowers for
all Permitted Acquisitions made during each twelve (12) month period ending on
the anniversary of the date of this Agreement, of the Borrowers shall not exceed
$50,000,000 (comprised of up to $10,000,000 in cash and the remainder in stock)
and shall not violate the terms of Section 7.2.4 hereof; and

                            (viii) the Borrowers shall deliver to the Agent at
least five (5) Business Days before such Permitted Acquisition copies of any
agreements entered into or proposed to be entered into by such Borrowers in
connection with such Permitted Acquisition and shall deliver to the Agent such
other information about such Person or its assets as any Borrower may reasonably
require.

                      7.2.7 Dispositions of Assets or Subsidiaries.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise
transfer or dispose of, voluntarily or involuntarily, any of its properties or
assets, tangible or intangible (including sale, assignment, discount or other
disposition of accounts, contract rights, chattel paper, equipment or general
intangibles with or without recourse or of capital stock, shares of beneficial
interest, partnership interests or limited liability company interests of a
Subsidiary of such Borrower), except:

                            (i) transactions involving the sale of inventory in
the ordinary course of business;

                            (ii) any sale, transfer or lease of assets in the
ordinary course of business which are no longer necessary or required in the
conduct of such Borrower's or such Subsidiary's business;

                            (iii) any sale, transfer or lease of assets by any
wholly owned Subsidiary of such Borrower to another Borrower;

                            (iv) any sale, transfer or lease of assets in the
ordinary course of business which are replaced by substitute assets, provided
such substitute assets are subject to the Agent's Prior Security Interest; or

                            (v) any sale, transfer or lease of assets, other
than those specifically excepted pursuant to clauses (i) through (iv) above,
which is approved by the Required Banks.

<PAGE>

                      7.2.8 Affiliate Transactions.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, enter into or carry out any transaction (including
purchasing property or services from or selling property or services to any
Affiliate of any Borrower) unless such transaction is not otherwise prohibited
by this Agreement, is entered into in the ordinary course of business upon fair
and reasonable arm's-length terms and conditions which are in accordance with
all applicable Law.

                      7.2.9 Subsidiaries, Partnerships and Joint Ventures.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, own or create directly or indirectly any Subsidiaries
other than (i) any Subsidiary which has joined this Agreement as Borrower on the
Closing Date; and (ii) any Subsidiary formed after the Closing Date which joins
this Agreement as Borrower pursuant to Section 10.18 [Joinder], provided that
the Required Banks shall have consented to such formation and joinder and that
such Subsidiary and the Borrowers, as applicable, shall grant and cause to be
perfected first priority Liens to the Agent for the benefit of the Banks in the
assets held by, and stock of or other ownership interests in, such Subsidiary.
Each of the Borrowers shall not become or agree to (1) become a general or
limited partner in any general or limited partnership, except that the Borrowers
may be general or limited partners in other Borrowers, (2) become a member or
manager of, or hold a limited liability company interest in, a limited liability
company, except that the Borrowers may be members or managers of, or hold
limited liability company interests in, other Borrowers, or (3) become a joint
venturer or hold a joint venture interest in any joint venture. Nothing in this
Section 7.2.9 shall prohibit a transaction otherwise permitted by Section 7.2.4
[Loans and Investment] or Section 7.2.6 [Liquidations, Mergers, Consolidations,
Acquisitions] provided that incident to such transaction either (i) a
wholly-owned Subsidiary of Parent, intended to remain a wholly-owned Subsidiary,
shall become a Borrower hereunder as required by this Section 7.2.9, or (ii) if
such investment does not represent a wholly-owned Subsidiary or is not intended
to remain a wholly-owned Subsidiary, then (A) 100% of the Borrowers' interest
in, or arising under, such transaction is pledged as Collateral to the Agent on
behalf of the Banks and (B) the assets of such Subsidiary shall not be pledged
to any Person other than the Agent.

                      7.2.10 Continuation of or Change in Business.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, engage in any business other than providing strategic,
marketing and technical services and support with respect to connection to and
use of the internet and related media and services substantially as conducted
and operated by such Borrower or Subsidiary during the present fiscal year, and
such Borrower or Subsidiary shall not permit any material change in such
business.

                      7.2.11 Plans and Benefit Arrangements.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to:

<PAGE>

                            (i) fail to satisfy the minimum funding requirements
of ERISA and the Internal Revenue Code with respect to any Plan within any
applicable grace period and time to cure;

                            (ii) request a minimum funding waiver from the
Internal Revenue Service with respect to any Plan;

                            (iii) engage in a Prohibited Transaction with any
Plan, Benefit Arrangement or Multiemployer Plan which, alone or in conjunction
with any other circumstances or set of circumstances resulting in liability
under ERISA, would result in a Material Adverse Change;

                            (iv) permit the aggregate actuarial present value of
all benefit liabilities (whether or not vested) under each Plan, determined on a
plan termination basis, as disclosed in the most recent actuarial report
completed with respect to such Plan, to exceed, as of any actuarial valuation
date, the fair market value of the assets of such Plan;

                            (v) fail to make when due any contribution to any
Multiemployer Plan that Parent or any member of the ERISA Group may be required
to make under any agreement relating to such Multiemployer Plan, or any Law
pertaining thereto;

                            (vi) withdraw (completely or partially) from any
Multiemployer Plan or withdraw (or be deemed under Section 4062(e) of ERISA to
withdraw) from any Multiple Employer Plan, where any such withdrawal is likely
to result in a material liability of the Borrower or any member of the ERISA
Group;

                            (vii) terminate, or institute proceedings to
terminate, any Plan, where such termination is likely to result in a material
liability to the Borrower or any member of the ERISA Group;

                            (viii) make any amendment to any Plan with respect
to which security is required under Section 307 of ERISA; or

                            (ix) fail to give any and all notices and make all
disclosures and governmental filings required under ERISA or the Internal
Revenue Code, where such failure is likely to result in a Material Adverse
Change.

                      7.2.12 Fiscal Year.

                      The Borrowers shall not, and shall not permit any
Subsidiary of any Borrower to, change its fiscal year from the twelve-month
period ending December 31.

                      7.2.13 Issuance of Stock.

                      Each of the Borrowers other than Parent shall not, and
shall not permit any of its Subsidiaries to, issue any additional shares of its
capital stock or any options, warrants or other rights in respect thereof.

<PAGE>

                      7.2.14 Changes in Organizational Documents.

                      Each of the Borrowers shall not, and shall not permit any
of its Subsidiaries to, amend in any respect its certificate of incorporation
(including any provisions or resolutions relating to capital stock), by-laws,
certificate of limited partnership, partnership agreement, certificate of
formation, limited liability company agreement or other organizational documents
without providing at least twenty (20) calendar days' prior written notice to
the Agent and the Banks and, in the event such change would be materially
adverse to the Banks as determined by the Agent in its sole discretion,
obtaining the prior written consent of the Required Banks, it being understood
that a change in the name of a Non-US Subsidiary will not constitute, by itself,
a material adverse change.

                      7.2.15 Minimum Quick Ratio.

                      The Borrowers shall not permit the ratio of (x) cash plus
Accounts to (y) current liabilities (less deferred revenue and principal of Soft
Plus Note) (calculated according to GAAP), plus Revolving Facility Usage
calculated as of the end of each fiscal quarter to be less than (i) 1.0 to 1.0
through the end of the quarter in which a secondary offering of Parent's common
stock is effective and (ii) 1.5 to 1.0 thereafter.

                      7.2.16 Minimum EBITDA.

                      The Borrowers shall not permit after December 31, 2000
their consolidated EBITDA to be less than zero ($0), as of the end of each
calendar quarter.

                      7.2.17 Minimum Net Income.

                      The Borrowers shall not permit their consolidated adjusted
net income, measured as of the end of each fiscal quarter, commencing with the
quarter ending March 31, 2000, to be less than the amounts set forth below for
the periods indicated.

      Quarter Ended                                Minimum Net Income (Loss) ($)
      -------------                                -----------------------------

         March 31, 2000                            (5,000,000)
         June 30, 2000                             (4,000,000)
         September 30, 2000                        (1,250,000)
         December 31, 2000 and thereafter                   0

As used herein, "adjusted net income" shall mean (i) net income as defined under
GAAP, plus (ii) goodwill amortization incident to the Soft Plus Transaction,
plus (iii) goodwill amortization incident to Permitted Acquisitions.

                  7.3 Reporting Requirements.

                  The Borrowers, jointly and severally, covenant and agree that
until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings and interest thereon, expiration or termination of all Letters
of Credit, satisfaction of all of the Borrowers' other Obligations hereunder and
under the other Loan Documents and termination of the Commitments, the Borrowers
will furnish or cause to be furnished to the Agent and each of the Banks the
financial reports and other information set forth on Exhibit 7.3.

<PAGE>

                                   8. DEFAULT

                  8.1 Events of Default.

                  An Event of Default shall mean the occurrence or existence of
any one or more of the following events or conditions (whatever the reason
therefor and whether voluntary, involuntary or effected by operation of Law):

                      8.1.1 Payments Under Loan Documents.

                      The Borrowers shall fail to pay any principal of any Loan
(including scheduled installments, mandatory prepayments or the payment due at
maturity), Reimbursement Obligation or Letter of Credit Borrowing or shall fail
to pay any interest on any Loan, Reimbursement Obligation or Letter of Credit
Borrowing or any other amount owing hereunder or under the other Loan Documents
after such principal, interest or other amount becomes due in accordance with
the terms hereof or thereof;

                      8.1.2 Breach of Warranty.

                      Any representation or warranty made at any time by any of
the Borrowers herein or by any of the Borrowers in any other Loan Document, or
in any certificate, other instrument or statement furnished pursuant to the
provisions hereof or thereof, shall prove to have been false or misleading in
any material respect as of the time it was made or furnished;

                      8.1.3 Breach of Negative Covenants or Visitation Rights.

                      Any of the Borrowers shall default in the observance or
performance of any covenant contained in Section 7.1.6 [Visitation Rights] or
Section 7.2 [Negative Covenants];

                      8.1.4 Breach of Other Covenants.

                      Any of the Borrowers shall default in the observance or
performance of any other covenant, condition or provision hereof or of any other
Loan Document and such default shall continue unremedied for ten (10) Business
Days after the date of notice of such default from Agent to the Borrowers (such
grace period to be applicable only in the event such default can be remedied by
corrective action of the Borrowers as determined by the Agent in its sole
discretion);

                      8.1.5 Defaults in Other Agreements or Indebtedness.

                      A default or event of default shall occur at any time
under the terms of any other agreement involving borrowed money or the extension
of credit or any other Indebtedness under which any Borrower or Subsidiary of
any Borrower may be obligated as a borrower or guarantor in excess of $2,000,000
in the aggregate, and such breach, default or event of default consists of the
failure to pay (beyond any period of grace permitted with respect thereto,
whether waived or not) any indebtedness when due (whether at stated maturity, by
acceleration or otherwise) or if such breach or default permits or causes the

<PAGE>

acceleration of any indebtedness (whether or not such right shall have been
waived) or the termination of any commitment to lend;

                      8.1.6 Final Judgments or Orders.

                      Any final judgments or orders for the payment of money in
excess of $2,000,000 in the aggregate shall be entered against any Borrower by a
court having jurisdiction in the premises, which judgment is not discharged,
vacated, bonded or stayed pending appeal within a period of thirty (30) days
from the date of entry;

                      8.1.7 Loan Document Unenforceable.

                      Any of the Loan Documents shall cease to be legal, valid
and binding agreements enforceable against the party executing the same or such
party's successors and assigns (as permitted under the Loan Documents) in
accordance with the respective terms thereof or shall in any way be terminated
(except in accordance with its terms) or become or be declared ineffective or
inoperative or shall in any way be challenged or contested or cease to give or
provide the respective Liens, security interests, rights, titles, interests,
remedies, powers or privileges intended to be created thereby;

                      8.1.8 Uninsured Losses; Proceedings Against Assets.

                      There shall occur any material uninsured damage to or
loss, theft or destruction of any of the Collateral in excess of $1,000,000 or
the Collateral or any other of the Borrowers' or any of their Subsidiaries'
assets are attached, seized, levied upon or subjected to a writ or distress
warrant; or such come within the possession of any receiver, trustee, custodian
or assignee for the benefit of creditors and the same is not cured within thirty
(30) days thereafter;

                      8.1.9 Notice of Lien or Assessment.

                      A notice of Lien or assessment in excess of $1,000,000
which is not a Permitted Lien is filed of record with respect to all or any part
of any of the Borrowers' or any of their Subsidiaries' assets by the United
States, or any department, agency or instrumentality thereof, or by any state,
county, municipal or other governmental agency, including the PBGC, or any taxes
or debts owing at any time or times hereafter to any one of these becomes
payable and the same is not paid, discharged or stayed within thirty (30) days
after the same becomes payable;

                      8.1.10 Insolvency.

                      Any Borrower or any Subsidiary of a Borrower ceases to be
solvent or admits in writing its inability to pay its debts as they mature;

                      8.1.11 Events Relating to Plans and Benefit Arrangements.

                      Any of the following occurs: (i) any Reportable Event,
which the Agent determines in good faith constitutes grounds for the termination
of any Plan by the PBGC or the appointment of a trustee to administer or
liquidate any Plan, shall have occurred and be continuing; (ii) proceedings
shall have been instituted or other action taken to terminate any Plan, or a

<PAGE>

termination notice shall have been filed with respect to any Plan; (iii) a
trustee shall be appointed to administer or liquidate any Plan; (iv) the PBGC
shall give notice of its intent to institute proceedings to terminate any Plan
or Plans or to appoint a trustee to administer or liquidate any Plan; and, in
the case of the occurrence of (i), (ii), (iii) or (iv) above, the Agent
determines in good faith that the amount of the Borrowers' liability is likely
to exceed 10% of its Consolidated Tangible Net Worth; (v) the Borrower or any
member of the ERISA Group shall fail to make any contributions when due to a
Plan or a Multiemployer Plan; (vi) the Borrower or any other member of the ERISA
Group shall make any amendment to a Plan with respect to which security is
required under Section 307 of ERISA; (vii) the Borrowers or any other member of
the ERISA Group shall withdraw completely or partially from a Multiemployer
Plan; (viii) the Borrowers or any other member of the ERISA Group shall withdraw
(or shall be deemed under Section 4062(e) of ERISA to withdraw) from a Multiple
Employer Plan; or (ix) any applicable Law is adopted, changed or interpreted by
any Official Body with respect to or otherwise affecting one or more Plans,
Multiemployer Plans or Benefit Arrangements and, with respect to any of the
events specified in (v), (vi), (vii), (viii) or (ix), the Agent determines in
good faith that any such occurrence would be reasonably likely to materially and
adversely affect the total enterprise represented by the Borrower and the other
members of the ERISA Group;

                      8.1.12 Cessation of Business.

                      Any Borrower or Subsidiary of a Borrower ceases to conduct
its business as contemplated, except as expressly permitted under Section 7.2.6
[Liquidations, Mergers, Etc.] or Section 7.2.7, or any Borrower or Subsidiary of
a Borrower is enjoined, restrained or in any way prevented by court order from
conducting all or any material part of its business and such injunction,
restraint or other preventive order is not dismissed within thirty (30) days
after the entry thereof;

                      8.1.13 Change of Control.

                      Any person or group of persons not stockholders of Parent
on the Closing Date (within the meaning of Sections 13(d) or 14(a) of the
Securities Exchange Act of 1934, as amended) shall have acquired beneficial
ownership of (within the meaning of Rule 13d-3 promulgated by the Securities and
Exchange Commission under said Act) 25% or more of the voting capital stock of
Parent;

                      8.1.14 Involuntary Proceedings.

                      A proceeding shall have been instituted in a court having
jurisdiction in the premises seeking a decree or order for relief in respect of
any Borrower or Subsidiary of a Borrower in an involuntary case under any
applicable bankruptcy, insolvency, reorganization or other similar law now or
hereafter in effect, or for the appointment of a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator (or similar official) of any
Borrower or Subsidiary of a Borrower for any substantial part of its property,
or for the winding-up or liquidation of its affairs, and such proceeding shall
remain undismissed or unstayed and in effect for a period of sixty (60)
consecutive days or such court shall enter a decree or order granting any of the
relief sought in such proceeding; or

<PAGE>

                      8.1.15 Voluntary Proceedings.

                      Any Borrower or Subsidiary of a Borrower shall commence a
voluntary case under any applicable bankruptcy, insolvency, reorganization or
other similar law now or hereafter in effect, shall consent to the entry of an
order for relief in an involuntary case under any such law, or shall consent to
the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator (or other similar official) of
itself or for any substantial part of its property or shall make a general
assignment for the benefit of creditors, or shall fail generally to pay its
debts as they become due, or shall take any action in furtherance of any of the
foregoing.

                  8.2 Consequences of Event of Default.

                      8.2.1 Events of Default Other Than Bankruptcy, Insolvency
or Reorganization Proceedings.

                      If an Event of Default specified under Sections 8.1.1
through 8.1.13 shall occur and be continuing, the Banks and the Agent shall be
under no further obligation to make Loans or issue Letters of Credit, as the
case may be, and the Agent may, and upon the request of the Required Banks,
shall by written notice to the Borrowers, declare the unpaid principal amount of
the Notes then outstanding and all interest accrued thereon, any unpaid fees and
all other Indebtedness of the Borrowers to the Banks hereunder and thereunder to
be forthwith due and payable, and the same shall thereupon become and be
immediately due and payable to the Agent for the benefit of each Bank without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived, and require the Borrowers to, and the Borrowers shall
thereupon, deposit in a non-interest-bearing account with the Agent, as cash
collateral for its Obligations under the Loan Documents, an amount equal to the
maximum amount currently or at any time thereafter available to be drawn on all
outstanding Letters of Credit, and the Borrower and the Borrower hereby pledges
to the Agent and the Banks, and grants to the Agent and the Banks a security
interest in, all such cash as security for such Obligations. Upon the curing of
all existing Events of Default to the satisfaction of the Required Banks, the
Agent shall return such cash collateral to the Borrowers.

                      8.2.2 Bankruptcy, Insolvency or Reorganization
Proceedings.

                      If an Event of Default specified under Section 8.1.14
[Involuntary Proceedings] or 8.1.15 [Voluntary Proceedings] shall occur, the
Banks shall be under no further obligations to make Loans hereunder and the
unpaid principal amount of the Loans then outstanding and all interest accrued
thereon, any unpaid fees and all other Indebtedness of the Borrower to the Banks
hereunder and thereunder shall be immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived; and

                      8.2.3 Set-off.

                      If an Event of Default shall occur and be continuing, any
Bank to whom any Obligation is owed by any Borrower hereunder or under any other
Loan Document or any participant of such Bank which has agreed in writing to be
bound by the provisions of Exhibit 10 and any branch, Subsidiary or Affiliate of
such Bank or participant anywhere in the world shall have the right, in addition

<PAGE>

to all other rights and remedies available to it, without notice to such
Borrower, to set-off against and apply to the then unpaid balance of all the
Loans and all other Obligations of the Borrowers and the other Borrowers
hereunder or under any other Loan Document, any debt owing to, and any other
funds held in any manner for the account of, the Borrowers or such other
Borrower by such Bank or participant or by such branch, Subsidiary or Affiliate,
including all funds in all deposit accounts (whether time or demand, general or
special, provisionally credited or finally credited, or otherwise) now or
hereafter maintained by the Borrower or such other Borrower for its own account
(but not including funds held in custodian or trust accounts) with such Bank or
participant or such branch, Subsidiary or Affiliate. Such right shall exist
whether or not any Bank or the Agent shall have made any demand under this
Agreement or any other Loan Document, whether or not such debt owing to or funds
held for the account of the Borrowers or such other Borrower is or are matured
or unmatured and regardless of the existence or adequacy of any Collateral,
Guaranty or any other security, right or remedy available to any Bank or the
Agent; and

                      8.2.4 Suits, Actions, Proceedings.

                      If an Event of Default shall occur and be continuing, and
whether or not the Agent shall have accelerated the maturity of Loans pursuant
to any of the foregoing provisions of this Section 8.2, the Agent, if any Bank
is owed any amount with respect to the Loans, may proceed to protect and enforce
the Agent or any Banks rights by suit in equity, action at law and/or other
appropriate proceeding, whether for the specific performance of any covenant or
agreement contained in this Agreement or the other Loan Documents, including as
permitted by applicable Law the obtaining of the appointment of a receiver, and,
if such amount shall have become due, by declaration or otherwise, proceed to
enforce the payment thereof or any other legal or equitable right of the Agent
or such Bank; and

                      8.2.5 Application of Proceeds.

                      From and after the date on which the Agent has taken any
action pursuant to this Section 8.2 and until all Obligations of the Borrowers
have been paid in full, any and all proceeds received by the Agent from any sale
or other disposition of the Collateral, or any part thereof, or the exercise of
any other remedy by the Agent, shall be applied as follows:

                            (i) first, to reimburse the Agent for out-of-pocket
costs, expenses and disbursements, including reasonable attorneys' and
paralegals' fees and legal expenses, incurred by the Agent or the Banks in
connection with realizing on the Collateral or collection of any Obligations of
any of the Borrowers under any of the Loan Documents, including advances made by
the Banks or any one of them or the Agent for the reasonable maintenance,
preservation, protection or enforcement of, or realization upon, the Collateral,
including advances for taxes, insurance, repairs and the like and reasonable
expenses incurred to sell or otherwise realize on, or prepare for sale or other
realization on, any of the Collateral;

                            (ii) second, to the repayment of all Indebtedness
then due and unpaid of the Borrowers to the Banks incurred under this Agreement
or any of the other Loan Documents, whether of principal, interest, fees,
expenses or otherwise, in such manner as the Agent may determine in its
discretion; and

<PAGE>

                            (iii) the balance, if any, as required by Law.

                      8.2.6 Other Rights and Remedies.

                      In addition to all of the rights and remedies contained in
this Agreement or in any of the other Loan Documents the Agent shall have all of
the rights and remedies of a secured party under the Uniform Commercial Code or
other applicable Law, all of which rights and remedies shall be cumulative and
non-exclusive, to the extent permitted by Law. The Agent may, and upon the
request of the Required Banks shall, exercise all post-default rights granted to
the Agent and the Banks under the Loan Documents or applicable Law.

                  8.3 Notice of Sale.

                  Any notice required to be given by the Agent of a sale, lease,
or other disposition of the Collateral or any other intended action by the
Agent, if given ten (10) days prior to such proposed action, shall constitute
commercially reasonable and fair notice thereof to the Borrowers.

                                  9. THE AGENT

                  In addition to the other provisions set forth in this
Agreement, the Agent's rights and obligations are described in and governed by
the provisions of Exhibit 10.

                               10. MISCELLANEOUS

                  10.1 Modifications, Amendments or Waivers.

                  With the written consent of the Required Banks, the Agent,
acting on behalf of all the Banks, and the Borrower Agent, on behalf of the
Borrowers, may from time to time enter into written agreements amending or
changing any provision of this Agreement or any other Loan Document or the
rights of the Banks or the Borrowers hereunder or thereunder, or may grant
written waivers or consents to a departure from the due performance of the
Obligations of the Borrowers hereunder or thereunder; any such agreement, waiver
or consent made with such written consent shall be effective to bind all of the
Banks and the Borrowers; provided, that, without the written consent of all the
Banks, no such agreement, waiver or consent may be made which will:

                      10.1.1 Increase of Commitment; Extension or Expiration
Date.

                      Increase the amount of the Revolving Credit Commitment of
any Bank hereunder or extend the Expiration Date;

                      10.1.2 Extension of Payment; Reduction of Principal
Interest or Fees; Modification Terms of Payment.

                      Whether or not any Loans are outstanding, extend the time
for payment of principal or interest of any Loan (excluding the due date of any
mandatory prepayment of a Loan or any mandatory Commitment reduction in
connection with such a mandatory prepayment hereunder except for mandatory
reductions of the Commitments on the Expiration Date), the Commitment Fee or any

<PAGE>

other fee payable to any Bank, or reduce the principal amount of or the rate of
interest borne by any Loan or reduce the Commitment Fee or any other fee payable
to any Bank, or otherwise affect the terms of payment of the principal of or
interest of any Loan, the Commitment Fee or any other fee payable to any Bank;

                      10.1.3 Release of Collateral or Guarantor.

                      Except for sales of assets permitted by Section 7.2.7
[Disposition of Assets or Subsidiaries], release any Collateral consisting of
capital stock or other ownership interests of any Borrower or its Subsidiary or
substantially all of the assets of any Borrower, or any other security for any
of the Borrowers' Obligations; or

                      10.1.4 Miscellaneous

                      Amend Section 4.2 [Pro Rata Treatment of Banks],
Paragraphs 6 or 13 of Exhibit 10 [Exculpatory Provisions, Etc.; Equalization of
Banks] or this Section 10.1, alter any provision regarding the pro rata
treatment of the Banks, change the definition of Required Banks, or change any
requirement providing for the Banks or the Required Banks to authorize the
taking of any action hereunder;

provided, further, that no agreement, waiver or consent which would modify the
interests, rights or obligations of the Agent in its capacity as Agent or as the
issuer of Letters of Credit shall be effective without the written consent of
the Agent.

                  10.2 No Implied Waivers; Cumulative Remedies; Writing
Required.

                  No course of dealing and no delay or failure of the Agent or
any Bank in exercising any right, power, remedy or privilege under this
Agreement or any other Loan Document shall affect any other or future exercise
thereof or operate as a waiver thereof, nor shall any single or partial exercise
thereof or any abandonment or discontinuance of steps to enforce such a right,
power, remedy or privilege preclude any further exercise thereof or of any other
right, power, remedy or privilege. The rights and remedies of the Agent and the
Banks under this Agreement and any other Loan Documents are cumulative and not
exclusive of any rights or remedies which they would otherwise have. Any waiver,
permit, consent or approval of any kind or character on the part of any Bank of
any breach or default under this Agreement or any such waiver of any provision
or condition of this Agreement must be in writing and shall be effective only to
the extent specifically set forth in such writing.

                  10.3 Reimbursement and Indemnification of Banks by the
Borrower; Taxes.

                  The Borrowers agree unconditionally upon demand to pay or
reimburse to each Bank (other than the Agent, as to which the Borrower's
Obligations are set forth in Paragraph 5 of Exhibit 10 [Reimbursement of Agent
By Borrower, Etc.]) and to save such Bank harmless against (i) liability for the
payment of all reasonable out-of-pocket costs, expenses and disbursements
(including fees and expenses of outside counsel for each Bank except with
respect to (a) and (b) below), incurred by such Bank (a) in connection with the
administration and interpretation of this Agreement, and other instruments and
documents to be delivered hereunder, (b) relating to any amendments, waivers or
consents pursuant to the provisions hereof, (c) in connection with the
enforcement of this Agreement or any other Loan Document, or collection of
amounts due hereunder or thereunder or the proof and allowability of any claim

<PAGE>

arising under this Agreement or any other Loan Document, whether in bankruptcy
or receivership proceedings or otherwise, and (d) in any workout or
restructuring or in connection with the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, or (ii) all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against such Bank, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Documents or any action taken or omitted
by such Bank hereunder or thereunder, provided that the Borrowers shall not be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements (A) if
the same results from such Bank's gross negligence or willful misconduct, or (B)
if the Borrower was not given notice of the subject claim and the opportunity to
participate in the defense thereof, at its expense (except that the Borrowers
shall remain liable to the extent such failure to give notice does not result in
a loss to the Borrowers), or (C) if the same results from a compromise or
settlement agreement entered into without the consent of the Borrowers, which
shall not be unreasonably withheld. The Banks will attempt to minimize the fees
and expenses of legal counsel for the Banks which are subject to reimbursement
by the Borrower hereunder by considering the usage of one law firm to represent
the Banks and the Agent if appropriate under the circumstances. The Borrowers
agree unconditionally to pay all stamp, document, transfer, recording or filing
taxes or fees and similar impositions now or hereafter determined by the Agent
or any Bank to be payable in connection with this Agreement or any other Loan
Document, and the Borrowers agree unconditionally to save the Agent and the
Banks harmless from and against any and all present or future claims,
liabilities or losses with respect to or resulting from any omission to pay or
delay in paying any such taxes, fees or impositions.

                  10.4 Holidays.

                  Whenever payment of a Loan to be made or taken hereunder shall
be due on a day which is not a Business Day such payment shall be due on the
next Business Day and such extension of time shall be included in computing
interest and fees, except that the Loans shall be due on the Business Day
preceding the Expiration Date if the Expiration Date is not a Business Day.
Whenever any payment or action to be made or taken hereunder (other than payment
of the Loans) shall be stated to be due on a day which is not a Business Day,
such payment or action shall be made or taken on the next following Business Day
and such extension of time shall not be included in computing interest or fees,
if any, in connection with such payment or action.

                  10.5 Funding by Branch, Subsidiary or Affiliate.

                      10.5.1 Notional Funding.

                      Each Bank shall have the right from time to time, without
notice to the Borrowers, to deem any branch, Subsidiary or Affiliate (which for
the purposes of this Section 10.5 shall mean any corporation or association
which is directly or indirectly controlled by or is under direct or indirect
common control with any corporation or association which directly or indirectly
controls such Bank) of such Bank to have made, maintained or funded any Loan
provided that immediately following (on the assumption that a payment were then
due from the Borrowers to such other office), and as a result of such change,
the Borrowers would not be under any greater financial obligation pursuant to

<PAGE>

Section 4.7 [Additional Compensation in Certain Circumstances] than it would
have been in the absence of such change. Notional funding offices may be
selected by each Bank without regard to such Bank's actual methods of making,
maintaining or funding the Loans or any sources of funding actually used by or
available to such Bank.

                      10.5.2 Actual Funding.

                      Each Bank shall have the right from time to time to make
or maintain any Loan by arranging for a branch, Subsidiary or Affiliate of such
Bank to make or maintain such Loan subject to the last sentence of this Section
10.5.2. If any Bank causes a branch, Subsidiary or Affiliate to make or maintain
any part of the Loans hereunder, all terms and conditions of this Agreement
shall, except where the context clearly requires otherwise, be applicable to
such part of the Loans to the same extent as if such Loans were made or
maintained by such Bank, but in no event shall any Bank's use of such a branch,
Subsidiary or Affiliate to make or maintain any part of the Loans hereunder
cause such Bank or such branch, Subsidiary or Affiliate to incur any cost or
expenses payable by the Borrower hereunder or require the Borrowers to pay any
other compensation to any Bank (including any expenses incurred or payable
pursuant to Section 4.7 [Additional Compensation in Certain Circumstances])
which would otherwise not be incurred.

                      10.6 Notices.

                      All notices, requests, demands, directions and other
communications (as used in this Section 10.6, collectively referred to as
"notices") given to or made upon any party hereto under the provisions of this
Agreement shall be by telephone or in writing (including by means of electronic
transmission (i.e., "e-mail") or facsimile transmission or by setting forth such
notice on a site on the World Wide Web [a "website posting"] if notice of such
website posting, including the information necessary to access such website, has
previously been delivered to the applicable parties hereto by another method of
notice permitted hereunder, unless otherwise expressly permitted hereunder and
shall be delivered or sent by facsimile to the respective parties at the
addresses and numbers set forth under their respective names on Schedule 1.1(B)
hereof or in accordance with any subsequent unrevoked written direction from any
party to the others. No notices to a Borrower of Potential Defaults or Events of
Default shall be made solely by a website posting. All notices shall, except as
otherwise expressly herein provided, be effective (a) in the case of facsimile,
when received, (b) in the case of hand-delivered notice, when hand-delivered,
(c) in the case of telephone, when telephoned, provided, however, that in order
to be effective, telephonic notices must be confirmed in writing no later than
the next day by letter or facsimile, (d) if given by mail, four (4) days after
such communication is deposited in the mail with first-class postage prepaid,
return receipt requested, (e) if by electronic transmission, when actually
received, (f) if by website posting, upon delivery of a notice (including the
information necessary to access such website) by another means permitted
hereunder and (g) if given by any other means (including by air courier), when
delivered; provided, that notices to the Agent shall not be effective until
received. Any Bank giving any notice to any Borrower shall simultaneously send a
copy thereof to the Agent, and the Agent shall promptly notify the other Banks
of the receipt by it of any such notice.

<PAGE>

                      10.7 Severability.

                      The provisions of this Agreement are intended to be
severable. If any provision of this Agreement shall be held invalid or
unenforceable in whole or in part in any jurisdiction, such provision shall, as
to such jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without in any manner affecting the validity or enforceability
thereof in any other jurisdiction or the remaining provisions hereof in any
jurisdiction.

                      10.8 Governing Law.

                      Each Letter of Credit, Section 2.10 [Letter of Credit
Subfacility] and Exhibit 2.10 shall be subject to the Uniform Customs and
Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500, as the same may be revised or amended from time to
time, and to the extent not inconsistent therewith, the internal laws of the
Commonwealth of Pennsylvania without regard to its conflict of laws principles
and the balance of this Agreement shall be deemed to be a contract under the
Laws of the Commonwealth of Pennsylvania and for all purposes shall be governed
by and construed and enforced in accordance with the internal laws of the
Commonwealth of Pennsylvania without regard to its conflict of laws principles.

                      10.9 Prior Understanding.

                      This Agreement and the other Loan Documents supersede all
prior understandings and agreements (excluding the Agent's Letter, as described
in Exhibit 10), whether written or oral, between the parties hereto and thereto
relating to the transactions provided for herein and therein, including any
prior confidentiality agreements and commitments.

                      10.10 Duration; Survival.

                      All representations and warranties of the Borrowers
contained herein or made in connection herewith shall survive the making of
Loans and issuance of Letters of Credit and shall not be waived by the execution
and delivery of this Agreement, any investigation by the Agent or the Banks, the
making of Loans, issuance of Letters of Credit, or payment in full of the Loans.
All covenants and agreements of the Borrowers contained in Sections 7.1
[Affirmative Covenants], 7.2 [Negative Covenants] and 7.3 [Reporting
Requirements] and Exhibit 8.3 herein shall continue in full force and effect
from and after the date hereof so long as the Borrower may borrow or request
Letters of Credit hereunder and until termination of the Commitments and payment
in full of the Loans and expiration or termination of all Letters of Credit. All
covenants and agreements of the Borrower contained herein relating to the
payment of principal, interest, premiums, additional compensation or expenses
and indemnification, including those set forth in the Notes, Section 4
[Payments], Paragraphs 5 and 7 of Exhibit 10 [Reimbursement of Agent by
Borrower, Etc.; Reimbursement of Agent by Banks, Etc.] and 10.3 [Reimbursement
of Banks by Borrower; Etc.], shall survive payment in full of the Loans,
expiration or termination of the Letters of Credit and termination of the
Commitments.

<PAGE>

                      10.11 Successors and Assigns.

                            (i) This Agreement shall be binding upon and shall
inure to the benefit of the Banks, the Agent, the Borrowers and their respective
successors and assigns, except that none of the Borrowers may assign or transfer
any of its rights and Obligations hereunder or any interest herein. Each Bank
may, at its own cost, make assignments of or sell participations in all or any
part of its Commitments and the Loans made by it to one or more banks or other
entities, subject to the consent of the Borrowers and the Agent with respect to
any assignee, such consent not to be unreasonably withheld, provided that (1) no
consent of the Borrower shall be required (A) if an Event of Default exists and
is continuing, or (B) in the case of an assignment by a Bank to an Affiliate of
such Bank, and (2) any assignment by a Bank to a Person other than an Affiliate
of such Bank may not be made in amounts less than the lesser of $2,500,000 or
the amount of the assigning Bank's Commitment. In the case of an assignment,
upon receipt by the Agent of the Assignment and Assumption Agreement, the
assignee shall have, to the extent of such assignment (unless otherwise provided
therein), the same rights, benefits and obligations as it would have if it had
been a signatory Bank hereunder, the Commitments shall be adjusted accordingly,
and upon surrender of any Note subject to such assignment, the Borrowers shall
execute and deliver a new Note to the assignee in an amount equal to the amount
of the Revolving Credit Commitment assumed by it and a new Revolving Credit Note
to the assigning Bank in an amount equal to the Revolving Credit Commitment
retained by it hereunder. Any Bank which assigns any or all of its Commitment or
Loans to a Person other than an Affiliate of such Bank shall pay to the Agent a
service fee in the amount of $3,500 for each assignment. In the case of a
participation, the participant shall only have the rights specified in Section
8.2.3 [Set-off] (the participant's rights against such Bank in respect of such
participation to be those set forth in the agreement executed by such Bank in
favor of the participant relating thereto and not to include any voting rights
except with respect to changes of the type referenced in Sections 10.1.1
[Increase of Commitment, Etc.], 10.1.2 [Extension of Payment, Etc.], or 10.1.3
[Release of Collateral or Guarantor]), all of such Bank's obligations under this
Agreement or any other Loan Document shall remain unchanged, and all amounts
payable by any Borrower hereunder or thereunder shall be determined as if such
Bank had not sold such participation.

                            (ii) Any assignee or participant which is not
incorporated under the Laws of the United States of America or a state thereof
shall deliver to the Borrowers and the Agent the form of certificate described
in Section 10.17 [Tax Withholding Clause] relating to federal income tax
withholding. Each Bank may furnish any publicly available information concerning
any Borrower or its Subsidiaries and any other information concerning any
Borrower or its Subsidiaries in the possession of such Bank from time to time to
assignees and participants (including prospective assignees or participants),
provided that such assignees and participants agree to be bound by the
provisions of Section 10.12 [Confidentiality].

                            (iii) Notwithstanding any other provision in this
Agreement, any Bank may at any time pledge or grant a security interest in all
or any portion of its rights under this Agreement, its Note and the other Loan
Documents to any Federal Reserve Bank in accordance with Regulation A of the FRB
or U.S. Treasury Regulation 31 CFR Section 203.14 without notice to or consent
of the Borrower or the Agent. No such pledge or grant of a security interest
shall release the Transferor Bank of its obligations hereunder or under any
other Loan Document.

<PAGE>

                  10.12 Confidentiality.

                      10.12.1 General.

                      The Agent and the Banks each agree to keep confidential
all information obtained from any Borrower or its Subsidiaries which is
nonpublic and confidential or proprietary in nature (including any information
the Borrowers specifically designate as confidential), except as provided below,
and to use such information only in connection with their respective capacities
under this Agreement and for the purposes contemplated hereby. The Agent and the
Banks shall be permitted to disclose such information (i) to outside legal
counsel, accountants and other professional advisors who need to know such
information in connection with the administration and enforcement of this
Agreement, subject to agreement of such Persons to maintain the confidentiality,
(ii) to assignees and participants as contemplated by Section 10.11, (iii) to
the extent requested by any bank regulatory authority or, as otherwise required
by applicable Law or by any subpoena or similar legal process, or in connection
with any investigation or proceeding arising out of the transactions
contemplated by this Agreement, (iv) if it becomes publicly available other than
as a result of a breach of this Agreement or becomes available from a source not
known to be subject to confidentiality restrictions, or (v) if the Borrowers
shall have consented to such disclosure.

                      10.12.2 Sharing Information With Affiliates of the Banks.

                      Each Borrower acknowledges that from time to time
financial advisory, investment banking and other services may be offered or
provided to the Borrowers or one or more of its Affiliates (in connection with
this Agreement or otherwise) by any Bank or by one or more Subsidiaries or
Affiliates of such Bank and each of the Borrowers hereby authorizes each Bank to
share any information delivered to such Bank by such Borrower and its
Subsidiaries pursuant to this Agreement on a need-to-know basis, or in
connection with the decision of such Bank to enter into this Agreement, to any
such Subsidiary or Affiliate of such Bank, it being understood that any such
Subsidiary or Affiliate of any Bank receiving such information shall be bound by
the provisions of Section 10.12.1 as if it were a Bank hereunder; provided,
however, that Agent shall not share any such information without the prior
written consent of the Parent. Such authorization shall survive the repayment of
the Loans and other Obligations and the termination of the Commitments.

                  10.13 Counterparts.

                  This Agreement may be executed by different parties hereto on
any number of separate counterparts, each of which, when so executed and
delivered, shall be an original, and all such counterparts shall together
constitute one and the same instrument.

                  10.14 Agent's or Bank's Consent.

                  Whenever the Agent's or any Bank's consent is required to be
obtained under this Agreement or any of the other Loan Documents as a condition
to any action, inaction, condition or event, the Agent and each Bank shall be
authorized to give or withhold such consent in its sole and absolute discretion
and to condition its consent upon the giving of additional collateral, the
payment of money or any other matter.

<PAGE>

                  10.15 Exceptions.

                  The representations, warranties and covenants contained herein
shall be independent of each other, and no exception to any representation,
warranty or covenant shall be deemed to be an exception to any other
representation, warranty or covenant contained herein unless expressly provided,
nor shall any such exceptions be deemed to permit any action or omission that
would be in contravention of applicable Law.

                  10.16 CONSENT TO FORUM; WAIVER OF JURY TRIAL.

                  EACH BORROWER HEREBY IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE
JURISDICTION OF THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY AND THE UNITED
STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA, AND WAIVES
PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH
SERVICE OF PROCESS BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO SUCH
BORROWER AT THE ADDRESSES PROVIDED FOR IN SECTION 10.6 AND SERVICE SO MADE SHALL
BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF. EACH BORROWER WAIVES ANY
OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED AGAINST IT AS
PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY DEFENSE BASED ON LACK OF
JURISDICTION OR VENUE. EACH BORROWER, THE AGENT AND THE BANKS HEREBY WAIVE TRIAL
BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT
OF OR RELATED TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE COLLATERAL TO
THE FULL EXTENT PERMITTED BY LAW.

                  10.17 Tax Withholding Clause.

                  Each Bank or assignee or participant of a Bank that is not
incorporated under the Laws of the United States of America or a state thereof
agrees that it will deliver to each of the Borrower and the Agent two (2) duly
completed copies of the following: (i) Internal Revenue Service Form W-9, 4224
or 1001, or other applicable form prescribed by the Internal Revenue Service,
certifying that such Bank, assignee or participant is entitled to receive
payments under this Agreement and the other Loan Documents without deduction or
withholding of any United States federal income taxes, or is subject to such tax
at a reduced rate under an applicable tax treaty, or (ii) Internal Revenue
Service Form W-8 or other applicable form or a certificate of such Bank,
assignee or participant indicating that no such exemption or reduced rate is
allowable with respect to such payments. Each Bank, assignee or participant
required to deliver to the Borrower and the Agent a form or certificate pursuant
to the preceding sentence shall deliver such form or certificate as follows: (A)
each Bank which is a party hereto on the Closing Date shall deliver such form or
certificate at least five (5) Business Days prior to the first date on which any
interest or fees are payable by the Borrower hereunder for the account of such
Bank; (B) each assignee or participant shall deliver such form or certificate at
least five (5) Business Days before the effective date of such assignment or
participation (unless the Agent in its sole discretion shall permit such
assignee or participant to deliver such form or certificate less than five (5)
Business Days before such date in which case it shall be due on the date
specified by the Agent). Each Bank, assignee or participant which so delivers a
Form W-8, W-9, 4224 or 1001 further undertakes to deliver to each of the
Borrower and the Agent two (2) additional copies of such form (or a successor

<PAGE>

form) on or before the date that such form expires or becomes obsolete or after
the occurrence of any event requiring a change in the most recent form so
delivered by it, and such amendments thereto or extensions or renewals thereof
as may be reasonably requested by the Borrower or the Agent, either certifying
that such Bank, assignee or participant is entitled to receive payments under
this Agreement and the other Loan Documents without deduction or withholding of
any United States federal income taxes or is subject to such tax at a reduced
rate under an applicable tax treaty or stating that no such exemption or reduced
rate is allowable. The Agent shall be entitled to withhold United States federal
income taxes at the full withholding rate unless the Bank, assignee or
participant establishes an exemption or that it is subject to a reduced rate as
established pursuant to the above provisions.

                  10.18 Joinder of Borrowers.

                  Except for the Any Subsidiary of any Borrower which is
required to join this Agreement as a Borrower pursuant to Section 7.2.9
[Subsidiaries, Partnerships and Joint Ventures] shall execute and deliver to the
Agent (i) a Joinder in substantially the form attached hereto as Exhibit 1.1(J)
pursuant to which it shall join as a Borrower each of the documents to which the
Borrowers are parties; (ii) documents in the forms described in Section 6.1
[First Loans] modified as appropriate to relate to such Subsidiary; and (iii)
documents necessary to grant and perfect Prior Security Interests to the Agent
for the benefit of the Banks in all Collateral held by such Subsidiary. Except
with respect to the Non-US Subsidiaries, the Borrowers shall deliver such
Joinder and related documents to the Agent within five (5) Business Days after
the date of the filing of such Subsidiary's articles of incorporation if the
Subsidiary is a newly-formed corporation, the date of the filing of its
certificate of limited partnership if it is a newly-formed limited partnership
or the date of its organization if it is a newly-formed entity other than a
limited partnership or corporation or the date of its acquisition by any
Borrower.

                      [SIGNATURES APPEAR ON THE NEXT PAGE.]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto, by their officers thereunto
duly authorized, have executed this Agreement as of the day and year first above
written.

ATTEST:                                     U.S. INTERACTIVE, INC.

_________________________________           By:_________________________________
                                            Title:______________________________
[Seal]

ATTEST:                                     U.S. INTERACTIVE CORP.
                                                   (DELAWARE)

_________________________________           By:_________________________________
                                            Title:______________________________
[Seal]

                                            PNC BANK, NATIONAL
                                            ASSOCIATION, as a Bank and as Agent

                                            By:_________________________________
                                            Title:______________________________

                                            PROGRESS BANK, as a Bank

                                            By:_________________________________
                                            Title:______________________________

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

                                   Page 1 of 2

Part 1 - Commitments of Banks and Addresses for Notices to Banks

                                                    Amount of
                                                  Commitment for
                                                Revolving Credit     Ratable
                        Bank                          Loans           Share
                        ----                    ----------------     -------
Name:        PNC Bank,
              National Association
Address:     1600 Market Street
              Philadelphia, PA  19103
Attention:   Joseph G. Meterchick
Telephone:  (215) 585-4744                        $9,500,000         63.33%
Telecopy:   (215) 585-6987

Name:        Progress Bank
Address:     Four Sentry Parkway
              Blue Bell, PA  19422
Attention:   Liz Lambert
Telephone     (610) 941-2202
Telecopy:     (610) 941-4827                      $5,500,000         36.67%
                                                                    ------

         Total                                    $15,000,000          100%

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

                                   Page 2 of 2

AGENT:

Name:             PNC Bank, National Association
Address:          1600 Market Street
                  Philadelphia, PA  19103
Attention:        Douglas O. Winters
Telephone:        (215) 585-6966
Telecopy:         (215) 585-7669
e-mail:           douglas.winters@pncbank.com

Part 2 - Addresses for Notices to Borrower:

BORROWER AGENT:

Name:             U.S. Interactive, Inc.
Address:          2012 Renaissance Boulevard
                  King of Prussia, PA  19406
Attention:        Philip L. Calamia
Telephone:        (610) 382-8808
Telecopy:         (   )    -
e-mail:           pcalamia@usinteractive.com

With a copy to:

Name:             Dilworth Paxson, LLP
Address:          3200 Mellon Bank Center
                  1735 Market Street
                  Philadelphia, PA  19103
Attention:        Michael D. Ecker, Esquire
Telephone:        (215) 575-7180
Telecopy:         (215) 575-7200
e-mail:           eckerm@dilworthlaw.com

Name:             U.S. Interactive Corp. (Delaware)
Name:             U.S. Interactive, Inc.
Address:          2012 Renaissance Boulevard
                  King of Prussia, PA  19406

<PAGE>

Attention:        Mr. Philip L. Calamia
Telephone:        (610) 382-8808
Telecopy:         (   )    -
e-mail:           pcalamia@usinteractive.com

With a copy to:

Name:             Dilworth Paxson, LLP
Address:          3200 Mellon Bank Center
                  1735 Market Street
                  Philadelphia, PA  19103
Attention:        Michael D. Ecker, Esquire
Telephone:        (215) 575-7180
Telecopy:         (215) 575-7200
e-mail:           eckerm@dilworthlaw.com

<PAGE>

                                 EXHIBIT 1.1(EA)

                         DEFINITION OF ELIGIBLE ACCOUNTS

     Qualified Accounts - An account arising in the ordinary course of a
Borrower's business from the sale of goods or rendering of services, provided
that no Account shall be a Qualified Account if:

          (i)     it arises out of a sale made by a Borrower to a Subsidiary,
                  any Affiliate of the Borrower or to a Person controlled by an
                  Affiliate of a Borrower; or

          (ii)    it is due or unpaid more than 90 days after the original
                  invoice date; or

          (iii)   the Account is either: (x) owed by an Account Debtor to the
                  extent its Accounts exceed 15% of all Qualified Accounts,
                  measured by Dollar amount or (y) owned by an Account Debtor,
                  fifty percent (50%) of whose Accounts are delinquent more than
                  ninety (90) days and are in excess of $200,000; or

          (iv)    any covenant, representation or warranty contained in any
                  agreement with respect to such Account has been breached; or

          (v)     the Account Debtor is also a Borrower's creditor, vendor or
                  supplier; or

          (vi)    the Account Debtor has commenced a voluntary case under the
                  federal bankruptcy laws, as now constituted or hereafter
                  amended, or made an assignment for the benefit of creditors,
                  or a decree or order for relief has been entered by a court
                  having jurisdiction over the Account Debtor in an involuntary
                  case under the federal bankruptcy laws, as now constituted or
                  hereafter amended or any other petition or other application
                  for relief under the federal bankruptcy laws has been filed
                  against the Account Debtor, or if the Account Debtor has
                  failed, suspended business, ceased to be Solvent, or consented
                  to or suffered the appointment of a receiver, trustee,
                  liquidator or custodian to be appointed for it or for all or a
                  significant portion of its assets or affairs, or if there is
                  any reason known to any Borrower that such Account is not
                  readily collectible; or

          (vii)   it arises from a sale to an Account Debtor outside the United
                  States; or

          (viii)  it arises from a sale to an Account Debtor on a bill-and-hold,
                  guaranteed sale, sale-or-return, sale-on-approval, consignment
                  or any other conditional, repurchase or return basis; or

          (ix)    the Account Debtor is the United States of America or any
                  department, agency or instrumentality thereof, unless the
                  applicable Borrower assigns its right to payment of such
                  Account to Lender, for the benefit of Lender, in a manner

<PAGE>

                  satisfactory to Leader, so as to comply with the Assignment of
                  Claims Act of 1940 (31 U.S.C.ss.203 et seq., as amended); or

          (x)     the Account is not at all times subject to Leader's duly
                  perfected, first priority security interest or is subject to a
                  Lien other than a Permitted Lien; or

          (xi)    the goods giving rise to such Account have not been delivered
                  to and accepted by the Account Debtor or the services giving
                  rise to such Account have not been performed by the applicable
                  Borrower and accepted by the Account Debtor or the Account
                  otherwise does not represent a final sale; or

          (xii)   the Account is evidenced by chattel paper or an instrument of
                  any kind, or has been reduced to judgment; or

          (xiii)  the applicable Borrower has made any agreement with the
                  Account Debtor for, or the Account Debtor has otherwise
                  claimed or has a right to, any offset against, deduction
                  therefrom or reduction thereto, except for discounts or
                  allowances which are made in the ordinary course of business
                  for prompt payment and which discounts or allowances are
                  reflected in the calculation of the face value of each invoice
                  or any statement (or attachment thereto) related to such
                  Account; or

          (xiv)   it represents finance charges or interest, to such extent; or

          (xv)    it represents a retainer (including, but not limited to,
                  project retainages); or

          (xvi)   it arises out of a sale made by a Borrower to an employee,
                  officer or director of a Borrower or any immediate family
                  member thereof; or

          (xvii)  it represents that portion of any commissions payable to a
                  Borrower in excess of $20,000.00 at any one time due to all
                  Borrowers in the aggregate; or

          (xviii) it is based on an invoice without a definite due date or is
                  based on a pre-billed invoice; or

          (xix)   it is subject to litigation or arbitration; or

          (xx)    it arises from a sale to an Account Debtor on a
                  cash-on-delivery or sight draft basis; or

          (xxi)   the Account is otherwise deemed unacceptable by Lender in its
                  reasonable discretion.

     In computing the amount of Qualified Accounts, all credit memos issued by
each Borrower shall be deducted from such amount.

<PAGE>

                                  EXHIBIT 2.10

                           LETTER OF CREDIT PROVISIONS

1. Issuance of Letters of Credit.

                  Borrower may request the issuance of a letter of credit (each,
along with the letters of credit listed on Schedule 2.10 hereof, a "Letter of
Credit") on behalf of itself by delivering to the Agent a completed application
and agreement for letters of credit in such form as the Agent may specify from
time to time by no later than 10:00 a.m., Philadelphia time, at least two (2)
Business Days, or such shorter period as may be agreed to by the Agent, in
advance of the proposed date of issuance. The letters of credit issued by
Progress Bank under the Existing Facility in the aggregate face amount of
$752,805.95 shall be "Letters of Credit." Each Letter of Credit shall be either
a Standby Letter of Credit or a Commercial Letter of Credit. Subject to the
terms and conditions hereof and in reliance on the agreements of the other Banks
set forth in this Exhibit 2.10, the Agent will issue a Letter of Credit provided
that each Letter of Credit shall (A) have a maximum term ending of twelve (12)
months from the date of issuance, and (B) in no event expire later than ten (10)
Business Days prior to the Expiration Date and providing that in no event shall
(i) the Letters of Credit Outstanding exceed, at any one time, $2,000,000 (the
"Letter of Credit Sublimit") or (ii) the Revolving Facility Usage exceed, at any
one time, the Revolving Credit Commitments. To the extent any Letter of Credit
is scheduled to expire on or after the Expiration Date, such Letter of Credit
shall be cash collateralized in a manner satisfactory to the Agent in an amount
equal to 105% of the face amount of each such Letter of Credit.

2. Letter of Credit Fees.

                  The Borrower shall pay to the Agent for the ratable account of
the Banks a fee (the "Letter of Credit Fee") equal to 1.50% per annum (computed
on the basis of a year of 360 days and actual days elapsed), which fee shall be
computed on the daily average Letters of Credit Outstanding and shall be payable
quarterly in arrears commencing with the first Business Day of each April, July,
October and January following issuance of each Letter of Credit and on the
Expiration Date. The Borrower shall also pay to the Agent for the Agent's sole
account the Agent's then in effect customary fees and administrative expenses
payable with respect to the Letters of Credit as the Agent may generally charge
or incur from time to time in connection with the issuance, maintenance,
modification (if any), assignment or transfer (if any), negotiation, and
administration of Letters of Credit.

3. Disbursements, Reimbursement.

                           (a) Immediately upon the Issuance of each Letter of
Credit, each Bank shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from the Agent a participation in such Letter of Credit and
each drawing thereunder in an amount equal to such Bank's Ratable Share of the
maximum amount available to be drawn under such Letter of Credit and the amount
of such drawing, respectively.

<PAGE>

                           (b) In the event of any request for a drawing under a
Letter of Credit by the beneficiary or transferee thereof, the Agent will
promptly notify the Borrower. Provided that it shall have received such notice,
the Borrower shall reimburse (such obligation to reimburse the Agent shall
sometimes be referred to as a "Reimbursement Obligation") the Agent prior to
12:00 noon, Philadelphia time on each date that an amount is paid by the Agent
under any Letter of Credit (each such date, an "Drawing Date") in an amount
equal to the amount so paid by the Agent. In the event the Borrower fails to
reimburse the Agent for the full amount of any drawing under any Letter of
Credit by 12:00 noon, Philadelphia time, on the Drawing Date, the Agent will
promptly notify each Bank thereof, and the Borrower shall be deemed to have
requested that Revolving Credit Loans be made by the Banks to be disbursed on
the Drawing Date under such Letter of Credit, subject to the amount of the
unutilized portion of the Revolving Credit Commitment and subject to the
conditions set forth in Section 6.2 [Each Additional Loan] other than any notice
requirements. Any notice given by the Agent pursuant to this Paragraph 3 may be
oral if immediately confirmed in writing; provided that the lack of such an
immediate confirmation shall not affect the conclusiveness or binding effect of
such notice. Notwithstanding anything contained herein to the contrary, an Event
of Default shall not have occurred if a Reimbursement Obligation which is not
paid is converted into a Revolving Credit Loan subject to the conditions set
forth in this Agreement.

                           (c) Each Bank shall upon any notice pursuant to
Paragraph 3(b) of this Exhibit 2.10 make available to the Agent an amount in
immediately available funds equal to its Ratable Share of the amount of the
drawing, whereupon the participating Banks shall (subject to Paragraph 2(d) of
this Exhibit 2.10) each be deemed to have made a Revolving Credit Loan to the
Borrower in that amount. If any Bank so notified fails to make available to the
Agent for the account of the Agent the amount of such Bank's Ratable Share of
such amount by no later than 2:00 p.m., Philadelphia time on the Drawing Date,
then interest shall accrue on such Bank's obligation to make such payment, from
the Drawing Date to the date on which such Bank makes such payment (i) at a rate
per annum equal to the Federal Funds Effective Rate during the first three days
following the Drawing Date and (ii) at a rate per annum equal to the rate
applicable to Loans on and after the fourth day following the Drawing Date. The
Agent will promptly give notice of the occurrence of the Drawing Date, but
failure of the Agent to give any such notice on the Drawing Date or in
sufficient time to enable any Bank to effect such payment on such date shall not
relieve such Bank from its obligation under this Paragraph 3(c).

                           (d) With respect to any unreimbursed drawing that is
not converted into Revolving Credit Loans to the Borrower in whole or in part as
contemplated by Paragraph 3(b) of this Exhibit 2.10, because of the Borrower's
failure to satisfy the conditions set forth in Section 6.2 [Each Additional
Loan] other than any notice requirements or for any other reason, the Borrower
shall be deemed to have incurred from the Agent a Letter of Credit Borrowing in
the amount of such drawing. Such Letter of Credit Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at the rate
per annum applicable to the Revolving Credit Loans. Each Bank's payment to the
Agent pursuant to Paragraph 3(c) shall be deemed to be a payment in respect of
its participation in such Letter of Credit Borrowing and shall constitute a
Participation Advance from such Bank in satisfaction of its participation
obligation under this Paragraph 3.

<PAGE>

4. Repayment of Participation Advances.

                           (a) Upon (and only upon) receipt by the Agent for its
account of immediately available funds from the Borrower (i) in reimbursement of
any payment made by the Agent under the Letter of Credit with respect to which
any Bank has made a Participation Advance to the Agent, or (ii) in payment of
interest on such a payment made by the Agent under such a Letter of Credit, the
Agent will pay to each Bank, in the same funds as those received by the Agent,
the amount of such Bank's Ratable Share of such funds, except the Agent shall
retain the amount of the Ratable Share of such funds of any Bank that did not
make a Participation Advance in respect of such payment by Agent.

                           (b) If the Agent is required at any time to return to
any Borrower, or to a trustee, receiver, liquidator, custodian, or any official
in any Insolvency Proceeding, any portion of the payments made by any Borrower
to the Agent pursuant to Paragraph 4(a) in reimbursement of a payment made under
the Letter of Credit or interest or fee thereon, each Bank shall, on demand of
the Agent, forthwith return to the Agent the amount of its Ratable Share of any
amounts so returned by the Agent plus interest thereon from the date such demand
is made to the date such amounts are returned by such Bank to the Agent, at a
rate per annum equal to the Federal Funds Effective Rate in effect from time to
time.

5. Documentation.

                  Each Borrower agrees to be bound by the terms of the Agent's
application and agreement for letters of credit and the Agent's written
regulations and customary practices relating to letters of credit, though such
interpretation may be different from the such Borrower's own. In the event of a
conflict between such application or agreement and this Agreement, this
Agreement shall govern. It is understood and agreed that, except in the case of
gross negligence or willful misconduct, the Agent shall not be liable for any
error, negligence and/or mistakes, whether of omission or commission, in
following any Borrower's instructions or those contained in the Letters of
Credit or any modifications, amendments or supplements thereto.

6. Determinations to Honor Drawing Requests.

                  In determining whether to honor any request for drawing under
any Letter of Credit by the beneficiary thereof, the Agent shall be responsible
only to determine that the documents and certificates required to be delivered
under such Letter of Credit have been delivered and that they comply on their
face with the requirements of such Letter of Credit.

<PAGE>

7. Nature of Participation and Reimbursement Obligations.

                  Each Bank's obligation in accordance with this Agreement to
make the Revolving Credit Loans or Participation Advances, as contemplated by
Paragraph 3 of this Exhibit 2.10, as a result of a drawing under a Letter of
Credit, and the Obligations of the Borrower to reimburse the Agent upon a draw
under a Letter of Credit, shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Exhibit 2.10
under all circumstances, including without limitation, the following
circumstances: (i) any set-off, counterclaim, recoupment, defense or other right
which such Bank may have against the Agent, the Borrower or any other Person for
any reason whatsoever; the failure of any Borrower or any other Person to
comply, in connection with a Letter of Credit Borrowing, with the conditions set
forth in Section 2.1 [Revolving Credit Commitments], 2.5 [Revolving Credit Loan
Requests], 2.6 [Making Revolving Credit Loans] or 6.2 [Each Additional Loan] or
as otherwise set forth in this Agreement for the making of a Revolving Credit
Loan, it being acknowledged that such conditions are not required for the making
of a Letter of Credit Borrowing and the obligation of the Banks to make
Participation Advances under Paragraph 3 of this Exhibit 2.10; (ii) any lack of
validity or enforceability of any Letter of Credit; the existence of any claim,
set-off, defense or other right which any Borrower or any Bank may have at any
time against a beneficiary or any transferee of any Letter of Credit (or any
Persons for whom any such transferee may be acting), the Agent or any Bank or
any other Person or, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction; and (iii) any draft, demand,
certificate or other document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect even if the Agent has been
notified thereof.

8. Indemnity.

In addition to amounts payable as provided in Paragraph 5 of Exhibit 10
[Reimbursement of Agent by Borrower, Etc.], the Borrower hereby agrees to
protect, indemnify, pay and save harmless the Agent from and against any and all
claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable fees, expenses and disbursements of counsel and allocated
costs of internal counsel) which the Agent may incur or be subject to as a
consequence, direct or indirect, of (i) the issuance of any Letter of Credit,
other than as a result of (A) the gross negligence or willful misconduct of the
Agent as determined by a final judgment of a court of competent jurisdiction or
(B) subject to the following clause (ii), the wrongful dishonor by the Agent of
a proper demand for payment made under any Letter of Credit, or (ii) the failure
of the Agent to honor a drawing under any such Letter of Credit as a result of
any act or omission, whether rightful or wrongful, of any present or future de
jure or de facto government or governmental authority (all such acts or
omissions herein called "Governmental Acts").

<PAGE>

9. Liability for Acts and Omissions.

As between any Borrower and the Agent, such Borrower assumes all risks of the
acts and omissions of, or misuse of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. In furtherance and not in limitation of
the foregoing, the Agent shall not be responsible for: (i) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any document submitted by
any party in connection with the application for an issuance of any such Letter
of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged (even if the Agent shall have
been notified thereof); (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any such Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason; (iii) the
failure of the beneficiary of any such Letter of Credit, or any other party to
which such Letter of Credit may be transferred, to comply fully with any
conditions required in order to draw upon such Letter of Credit or any other
claim of any Borrower against any beneficiary of such Letter of Credit, or any
such transferee, or any dispute between or among any Borrower and any
beneficiary of any Letter of Credit or any such transferee; (iv) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
(v) errors in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences arising
from causes beyond the control of the Agent, including any Governmental Acts,
and none of the above shall affect or impair, or prevent the vesting of, any of
the Agent's rights or powers hereunder. Nothing in the preceding sentence shall
relieve the Agent from liability for the Agent's gross negligence or willful
misconduct in connection with actions or omissions described in such clauses (i)
through (viii) of such sentence.

<PAGE>

                                   EXHIBIT 7.3

                             REPORTING REQUIREMENTS

1. Quarterly Financial Statements.

         As soon as available and in any event within forty-five (45) calendar
days after the end of each of the first three fiscal quarters in each fiscal
year, financial statements of the Parent, consisting of a consolidated and
consolidating balance sheet as of the end of such fiscal quarter and related
consolidated and consolidating statements of income and of stockholders' equity
and consolidated cash flows for the fiscal quarter then ended and the fiscal
year through that date, all in reasonable detail and certified (subject to
normal year-end audit adjustments) by the Chief Executive Officer, President or
Chief Financial Officer of Parent as having been prepared in accordance with
GAAP, consistently applied, and setting forth in comparative form the respective
financial statements for the corresponding date and period in the previous
fiscal year.

2. Annual Financial Statements.

         As soon as available and in any event within ninety (90) days after the
end of each fiscal year of Parent, financial statements of Parent consisting of
a consolidated and consolidating balance sheet as of the end of such fiscal
year, and related consolidated and consolidating statements of income and of
stockholders' equity and consolidated cash flows for the fiscal year then ended,
all in reasonable detail and setting forth in comparative form the financial
statements as of the end of and for the preceding fiscal year, and certified by
independent certified public accountants of nationally recognized standing
satisfactory to the Agent. The certificate or report of accountants shall be
free of qualifications (other than any consistency qualification that may result
from a change in the method used to prepare the financial statements as to which
such accountants concur) and shall not indicate the occurrence or existence of
any event, condition or contingency which would materially impair the prospect
of payment or performance of any covenant, agreement or duty of any Borrower
under any of the Loan Documents. The Borrowers shall deliver with such financial
statements and certification by their accountants a letter of such accountants
to the Agent and the Banks substantially (i) to the effect that, based upon
their ordinary and customary examination of the affairs of the Borrowers,
performed in connection with the preparation of such consolidated financial
statements, and in accordance with generally accepted auditing standards, they
are not aware of the existence of any condition or event which constitutes an
Event of Default or Potential Default or, if they are aware of such condition or
event, stating the nature thereof and confirming the Borrowers' calculations
with respect to the certificate to be delivered pursuant to paragraph 4 of this
Exhibit 7.3 with respect to such financial statements and (ii) to the effect
that the Banks are intended to rely upon such accountant's certification of the
annual financial statements and that such accountants authorize the Borrowers to
deliver such reports and certificate to the Banks on such accountants' behalf.

<PAGE>

3. Certificate of the Borrower.

         Concurrently with the financial statements of the Borrowers furnished
to the Agent and to the Banks pursuant to paragraphs 1 and 2 of this Exhibit
7.3, a certificate of Parent signed by the Chief Executive Officer, President or
Chief Financial Officer of Parent, in the form of Exhibit 7.3.4, to the effect
that, except as described pursuant to paragraph 4 of this Exhibit 7.3, (i) the
representations and warranties of the Borrowers contained in Section 5.1 and in
the other Loan Documents are true on and as of the date of such certificate with
the same effect as though such representations and warranties had been made on
and as of such date (except representations and warranties which expressly
relate solely to an earlier date or time) and the Borrowers have performed and
complied with all covenants and conditions hereof, (ii) no Event of Default or
Potential Default exists and is continuing on the date of such certificate and
(iii) containing calculations in sufficient detail to demonstrate compliance as
of the date of such financial statements with all financial covenants contained
in Sections 7.2.15, 7.2.16 and 7.2.17.

4. Notice of Default.

         Promptly after any officer of any Borrower has learned of the
occurrence of an Event of Default or Potential Default, a certificate signed by
the Chief Executive Officer, President or Chief Financial Officer of such
Borrower setting forth the details of such Event of Default or Potential Default
and the action which the such Borrower proposes to take with respect thereto.

5. Notice of Litigation.

         Promptly after the commencement thereof, notice of all actions, suits,
proceedings or investigations before or by any Official Body or any other Person
against any Borrower or Subsidiary of any Borrower which relate to the
Collateral, involve a claim or series of claims in excess of $1,000,000 or which
if adversely determined would result in a Material Adverse Change.

6. Certain Events.

         Written notice to the Agent:

                  (a) at least thirty (30) calendar days prior thereto, with
respect to any proposed sale or transfer of assets described in Section
7.2.7(iv) or 7.2.7(v).

                  (b) within the time limits set forth in Section 7.2.14.
[Changes in Organizational Documents], any amendment to the organizational
documents of any Borrower;

                  (c) at least thirty (30) calendar days prior thereto, with
respect to any change in any Borrower's locations from the locations set forth
in Schedule A to the Security Agreement; and

                  (d) on the tenth (10th) calendar day of every month, a
completed Borrowing Base Certificate in respect of the month most recently
ended.

<PAGE>

7. Budgets, Forecasts, Other Reports and Information.

         Promptly upon their becoming available to the Borrowers:

                  (a) the annual budget and any forecasts or projections of
Parent and its Subsidiaries, to be supplied not later than thirty (30) days
prior to commencement of the fiscal year to which any of the foregoing may be
applicable,

                  (b) any reports including management letters submitted to
Parent by independent accountants in connection with any annual, interim or
special audit,

                  (c) any reports, notices or proxy statements generally
distributed by Parent to its stockholders on a date no later than the date
supplied to such stockholders,

                  (d) regular or periodic reports, including Forms 10-K, 10-Q
and 8-K, registration statements and prospectuses, filed by Parent with the
Securities and Exchange Commission,

                  (e) a copy of any order in any proceeding to which any
Borrower is a party issued by any Official Body, and

                  (f) such other reports and information as any of the Banks may
from time to time reasonably request. The Borrowers shall also notify the Banks
promptly upon becoming aware of the enactment or adoption of any Law which would
result in a Material Adverse Change.

8. Notices Regarding Plans and Benefit Arrangements; Certain Events.

         Promptly upon becoming aware of the occurrence thereof, notice
(including the nature of the event and, when known, any action taken or
threatened by the Internal Revenue Service or the PBGC with respect thereto) of:

                  (a) any Reportable Event with respect to any Borrower or any
other member of the ERISA Group (regardless of whether the obligation to report
said Reportable Event to the PBGC has been waived),

                  (b) any Prohibited Transaction which could subject any
Borrower or any other member of the ERISA Group to a civil penalty assessed
pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of the
Internal Revenue Code in connection with any Plan, any Benefit Arrangement or
any trust created thereunder,

                  (c) any assertion of material withdrawal liability with
respect to any Multiemployer Plan,

                  (d) any partial or complete withdrawal from a Multiemployer
Plan by any Borrower or any other member of the ERISA Group under Title IV of
ERISA (or assertion thereof), where such withdrawal is likely to result in
material withdrawal liability,

<PAGE>

                  (e) any cessation of operations (by any Borrower or any other
member of the ERISA Group) at a facility in the circumstances described in
Section 4062(e) of ERISA,

                  (f) withdrawal by any Borrower or any other member of the
ERISA Group from a Multiple Employer Plan,

                  (g) a failure by any Borrower or any other member of the ERISA
Group to make a payment to a Plan required to avoid imposition of a Lien under
Section 302(f) of ERISA,

                  (h) the adoption of an amendment to a Plan requiring the
provision of security to such Plan pursuant to Section 307 of ERISA, or

                  (i) any change in the actuarial assumptions or funding methods
used for any Plan, where the effect of such change is to materially increase or
materially reduce the unfunded benefit liability or obligation to make periodic
contributions.

9. Notices of Involuntary Termination and Annual Reports

         Promptly after receipt thereof, copies of (a) all notices received by
any Borrower or any other member of the ERISA Group of the PBGC's intent to
terminate any Plan administered or maintained by any Borrower or any member of
the ERISA Group, or to have a trustee appointed to administer any such Plan; and
(b) at the request of the Agent or any Bank each annual report (IRS Form 5500
series) and all accompanying schedules, the most recent actuarial reports, the
most recent financial information concerning the financial status of each Plan
administered or maintained by the Borrower or any other member of the ERISA
Group, and schedules showing the amounts contributed to each such Plan by or on
behalf of any Borrower or any other member of the ERISA Group in which any of
their personnel participate or from which such personnel may derive a benefit,
and each Schedule B (Actuarial Information) to the annual report filed by any
Borrower or any other member of the ERISA Group with the Internal Revenue
Service with respect to each such Plan.

10. Notice of Voluntary Termination

         Promptly upon the filing thereof, copies of any Form 5310, or any
successor or equivalent form to Form 5310, filed with the PBGC in connection
with the termination of any Plan.

<PAGE>

                                   EXHIBIT 10

                                AGENT PROVISIONS

1.   Appointment.

     Each Bank hereby irrevocably designates, appoints and authorizes PNC Bank
to act as Agent for such Bank under this Agreement and to execute and deliver or
accept on behalf of each of the Banks the other Loan Documents. Each Bank hereby
irrevocably authorizes, and each holder of any Note by the acceptance of a Note
shall be deemed irrevocably to authorize, the Agent to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
any other instruments and agreements referred to herein, and to exercise such
powers and to perform such duties hereunder as are specifically delegated to or
required of the Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. PNC Bank agrees to act as the Agent on behalf of
the Banks to the extent provided in this Agreement.

2.   Delegation of Duties.

     The Agent may perform any of its duties hereunder by or through agents or
employees (provided such delegation does not constitute a relinquishment of its
duties as Agent) and, subject to Paragraphs 5 and 6 of this Exhibit 10, shall be
entitled to engage and pay for the advice or services of any attorneys,
accountants or other experts concerning all matters pertaining to its duties
hereunder and to rely upon any advice so obtained.

3.   Nature of Duties; Independent Credit Investigation.

     The Agent shall have no duties or responsibilities except those expressly
set forth in this Agreement and no implied covenants, functions,
responsibilities, duties, obligations, or liabilities shall be read into this
Agreement or otherwise exist. The duties of the Agent shall be mechanical and
administrative in nature; the Agent shall not have by reason of this Agreement a
fiduciary or trust relationship in respect of any Bank; and nothing in this
Agreement, expressed or implied, is intended to or shall be so construed as to
impose upon the Agent any obligations in respect of this Agreement except as
expressly set forth herein. Without limiting the generality of the foregoing,
the use of the term "agent" in this Agreement with reference to the Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties. Each
Bank expressly acknowledges (i) that the Agent has not made any representations
or warranties to it and that no act by the Agent hereafter taken, including any
review of the affairs of any of the Borrowers, shall be deemed to constitute any
representation or warranty by the Agent to any Bank; (ii) that it has made and
will continue to make, without reliance upon the Agent, its own independent
investigation of the financial condition and affairs and its own appraisal of
the creditworthiness of each of the Borrowers in connection with this Agreement
and the making and continuance of the Loans hereunder; and (iii) except as
expressly provided herein, that the Agent shall have no duty or responsibility,
either initially or on a continuing basis, to provide any Bank with any credit
or other information with respect thereto, whether coming into its possession
before the making of any Loan or at any time or times thereafter.

<PAGE>

4.   Actions in Discretion of Agent; Instructions From the Banks.

     The Agent agrees, upon the written request of the Required Banks, to take
or refrain from taking any action of the type specified as being within the
Agent's rights, powers or discretion herein, provided that the Agent shall not
be required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or any other Loan Document or applicable
Law. In the absence of a request by the Required Banks, the Agent shall have
authority, in its sole discretion, to take or not to take any such action,
unless this Agreement specifically requires the consent of the Required Banks or
all of the Banks. Any action taken or failure to act pursuant to such
instructions or discretion shall be binding on the Banks, subject to Paragraph 6
of this Exhibit 10. Subject to the provisions of Paragraph 6, no Bank shall have
any right of action whatsoever against the Agent as a result of the Agent acting
or refraining from acting hereunder in accordance with the instructions of the
Required Banks, or in the absence of such instructions, in the absolute
discretion of the Agent.

5.   Reimbursement and Indemnification of Agent by the Borrower.

     The Borrower unconditionally agrees to pay or reimburse the Agent and hold
the Agent harmless against (a) liability for the payment of all reasonable
out-of-pocket costs, expenses and disbursements, including reasonable fees and
expenses of outside counsel, appraisers and environmental consultants, incurred
by the Agent (i) in connection with the development, negotiation, preparation,
printing, execution, administration, syndication, interpretation and performance
of this Agreement and the other Loan Documents, (ii) relating to any requested
amendments, waivers or consents pursuant to the provisions hereof, (iii) in
connection with the enforcement of this Agreement or any other Loan Document or
collection of amounts due hereunder or thereunder or the proof and allowability
of any claim arising under this Agreement or any other Loan Document, whether in
bankruptcy or receivership proceedings or otherwise, and (iv) in any workout or
restructuring or in connection with the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, and (b) all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against the Agent, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Documents or any action taken or omitted
by the Agent hereunder or thereunder, provided that the Borrowers shall not be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements if the
same results from the Agent's gross negligence or willful misconduct, or if the
Borrowers were not given notice of the subject claim and the opportunity to
participate in the defense thereof, at their expense (except that the Borrower
shall remain liable to the extent such failure to give notice does not result in
a loss to any Borrower), or if the same results from a compromise or settlement
agreement entered into without the consent of the Borrower, which shall not be
unreasonably withheld. In addition, the Borrowers agree to reimburse and pay all
reasonable out-of-pocket expenses of the Agent's regular employees and agents
engaged periodically to perform audits of the Borrowers' books, records and
business properties.

<PAGE>

6.   Exculpatory Provisions; Limitation of Liability.

     Neither the Agent nor any of its directors, officers, employees, agents,
attorneys or Affiliates shall (a) be liable to any Bank for any action taken or
omitted to be taken by it or them hereunder, or in connection herewith including
pursuant to any Loan Document, unless caused by its or their own gross
negligence or willful misconduct, (b) be responsible in any manner to any of the
Banks for the effectiveness, enforceability, genuineness, validity or the due
execution of this Agreement or any other Loan Documents or for any recital,
representation, warranty, document, certificate, report or statement herein or
made or furnished under or in connection with this Agreement or any other Loan
Documents, or (c) be under any obligation to any of the Banks to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions hereof or thereof on the part of the Borrowers, or the financial
condition of the Borrowers, or the existence or possible existence of any Event
of Default or Potential Default. No claim may be made by any of the Borrowers,
any Bank, the Agent or any of their respective Subsidiaries against the Agent,
any Bank or any of their respective directors, officers, employees, agents,
attorneys or Affiliates, or any of them, for any special, indirect or
consequential damages or, to the fullest extent permitted by Law, for any
punitive damages in respect of any claim or cause of action (whether based on
contract, tort, statutory liability, or any other ground) based on, arising out
of or related to any Loan Document or the transactions contemplated hereby or
any act, omission or event occurring in connection therewith, including the
negotiation, documentation, administration or collection of the Loans, and each
of the Borrowers, (for itself and on behalf of each of its Subsidiaries), the
Agent and each Bank hereby waive, releases and agree never to sue upon any claim
for any such damages, whether such claim now exists or hereafter arises and
whether or not it is now known or suspected to exist in its favor. Each Bank
agrees that, except for notices, reports and other documents expressly required
to be furnished to the Banks by the Agent hereunder or given to the Agent for
the account of or with copies for the Banks, the Agent and each of its
directors, officers, employees, agents, attorneys or Affiliates shall not have
any duty or responsibility to provide any Bank with an credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Borrowers which may come
into the possession of the Agent or any of its directors, officers, employees,
agents, attorneys or Affiliates.

7.   Reimbursement and Indemnification of Agent by Banks.

     Each Bank agrees to reimburse and indemnify the Agent (to the extent not
reimbursed by the Borrower and without limiting the Obligation of the Borrowers
to do so) in proportion to its Ratable Share from and against all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements, including attorneys' fees and disbursements
(including the allocated costs of staff counsel), and costs of appraisers and
environmental consultants, of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against the Agent, in its capacity as such, in any
way relating to or arising out of this Agreement or any other Loan Documents or
any action taken or omitted by the Agent hereunder or thereunder, provided that
no Bank shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements (a) if the same results from the Agent's gross negligence or
willful misconduct, or (b) if such Bank was not given notice of the subject
claim and the opportunity to participate in the defense thereof, at its expense
(except that such Bank shall remain liable to the extent such failure to give
notice does not result in a loss to the Bank), or (c) if the same results from a
compromise and settlement agreement entered into without the consent of such

<PAGE>

Bank, which shall not be unreasonably withheld. In addition, each Bank agrees
promptly upon demand to reimburse the Agent (to the extent not reimbursed by the
Borrower and without limiting the Obligation of the Borrower to do so) in
proportion to its Ratable Share for all amounts due and payable by the Borrower
to the Agent in connection with the Agent's periodic audit of the Borrowers'
books, records and business properties.

8.   Reliance by Agent.

     The Agent shall be entitled to rely upon any writing, telegram, message,
resolution, notice, consent, certificate, letter, cablegram, statement, order or
other document or conversation by telephone or otherwise believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons, and upon the advice and opinions of counsel and other professional
advisers selected by the Agent. The Agent shall be fully justified in failing or
refusing to take any action hereunder unless it shall first be indemnified to
its satisfaction by the Banks against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action.

9.   Notice of Default.

     The Agent shall not be deemed to have knowledge or notice of the occurrence
of any Potential Default or Event of Default unless the Agent has received
written notice from a Bank or the Borrower referring to this Agreement,
describing such Potential Default or Event of Default and stating that such
notice is a "notice of default."

<PAGE>

10.  Notices.

     The Agent shall promptly send to each Bank a copy of all notices received
from the Borrower pursuant to the provisions of this Agreement or the other Loan
Documents promptly upon receipt thereof. The Agent shall promptly notify the
Borrower and the other Banks of each change in the Base Rate and the effective
date thereof.

11.  Banks in Their Individual Capacities.

     With respect to its Revolving Credit Commitment, the Revolving Credit
Loans, made by it and any other rights and powers given to it as a Bank
hereunder or under any of the other Loan Documents, the Agent shall have the
same rights and powers hereunder as any other Bank and may exercise the same as
though it were not the Agent, and the term "Banks" shall, unless the context
otherwise indicates, include the Agent in its individual capacity. PNC Bank and
its Affiliates and each of the Banks and their respective Affiliates may,
without liability to account, except as prohibited herein, make loans to, accept
deposits from, discount drafts for, act as trustee under indentures of, and
generally engage in any kind of banking or trust business with, the Borrowers
and their Affiliates, in the case of the Agent, as though it were not acting as
Agent hereunder and in the case of each Bank, as though such Bank were not a
Bank hereunder. The Banks acknowledge that, pursuant to such activities, the
Agent or its Affiliates may (i) receive information regarding the Borrowers
(including information that may be subject to confidentiality obligations in
favor of the Borrowers) and acknowledge that the Agent shall be under no
obligation to provide such information to them, and (ii) accept fees and other
consideration from the Borrowers for services in connection with this Agreement
and otherwise without having to account for the same to the Banks.

12.  Holders of Notes.

     The Agent may deem and treat any payee of any Note as the owner thereof for
all purposes hereof unless and until written notice of the assignment or
transfer thereof shall have been filed with the Agent. Any request, authority or
consent of any Person who at the time of making such request or giving such
authority or consent is the holder of any Note shall be conclusive and binding
on any subsequent holder, transferee or assignee of such Note or of any Note or
Notes issued in exchange therefor.

13.  Equalization of Banks.

     The Banks and the holders of any participations in any Notes agree among
themselves that, with respect to all amounts received by any Bank or any such
holder for application on any Obligation hereunder or under any Note or under
any such participation, whether received by voluntary payment, by realization
upon security, by the exercise of the right of set-off or banker's lien, by
counterclaim or by any other non-pro rata source, equitable adjustment will be
made in the manner stated in the following sentence so that, in effect, all such
excess amounts will be shared ratably among the Banks and such holders in
proportion to their interests in payments under the Notes, except as otherwise
provided in Section 4.4.2, 5.4.2 or 5.6. The Banks or any such holder receiving
any such amount shall purchase for cash from each of the other Banks an interest
in such Bank's Loans in such amount as shall result in a ratable participation
by the Banks and each such holder in the aggregate unpaid amount under the
Notes, provided that if all or any portion of such excess amount is thereafter

<PAGE>

recovered from the Bank or the holder making such purchase, such purchase shall
be rescinded and the purchase price restored to the extent of such recovery,
together with interest or other amounts, if any, required by law (including
court order) to be paid by the Bank or the holder making such purchase.

14.  Successor Agent.

     The Agent (i) may resign as Agent or (ii) shall resign if such resignation
is requested by the Required Banks (if the Agent is a Bank, the Agent's Loans
and its Commitment shall be considered in determining whether the Required Banks
have requested such resignation), in either case of (i) or (ii) by giving not
less than thirty (30) days' prior written notice to the Borrowers. If the Agent
shall resign under this Agreement, then either (a) the Required Banks shall
appoint from among the Banks a successor agent for the Banks, subject to the
consent of the Borrowers, such consent not to be unreasonably withheld, or (b)
if a successor agent shall not be so appointed and approved within the thirty
(30) day period following the Agent's notice to the Banks of its resignation,
then the Agent shall appoint, with the consent of the Borrower, such consent not
to be unreasonably withheld, a successor agent who shall serve as Agent until
such time as the Required Banks appoint and the Borrowers consent to the
appointment of a successor agent. Upon its appointment pursuant to either clause
(a) or (b) above, such successor agent shall succeed to the rights, powers and
duties of the Agent, and the term "Agent" shall mean such successor agent,
effective upon its appointment, and the former Agent's rights, powers and duties
as Agent shall be terminated without any other or further act or deed on the
part of such former Agent or any of the parties to this Agreement. After the
resignation of any Agent hereunder, the provisions of this Exhibit 10 shall
inure to the benefit of such former Agent and such former Agent shall not by
reason of such resignation be deemed to be released from liability for any
actions taken or not taken by it while it was an Agent under this Agreement.

15.  Agent's Fee.

     The Borrowers shall pay to the Agent a nonrefundable fee (the "Agent's
Fee") under the terms of the Agent's Letter between Parent and Agent, as amended
from time to time (the "Agent's Letter").

<PAGE>

16.  Availability of Funds.

     The Agent may assume that each Bank has made or will make the proceeds of a
Loan available to the Agent unless the Agent shall have been notified by such
Bank on or before the later of (1) the close of Business on the Business Day
preceding the Borrowing Date with respect to such Loan or two (2) hours before
the time on which the Agent actually funds the proceeds of such Loan to the
Borrower (whether using its own funds pursuant to this Paragraph 16 or using
proceeds deposited with the Agent by the Banks and whether such funding occurs
before or after the time on which Banks are required to deposit the proceeds of
such Loan with the Agent). The Agent may, in reliance upon such assumption (but
shall not be required to), make available to the Borrower a corresponding
amount. If such corresponding amount is not in fact made available to the Agent
by such Bank, the Agent shall be entitled to recover such amount on demand from
such Bank (or, if such Bank fails to pay such amount forthwith upon such demand
from the Borrowers) together with interest thereon, in respect of each day
during the period commencing on the date such amount was made available to the
Borrower and ending on the date the Agent recovers such amount, at a rate per
annum equal to (i) the Federal Funds Effective Rate during the first three (3)
days after such interest shall begin to accrue and (ii) the applicable interest
rate in respect of such Loan after the end of such three-day period.

17.  Calculations.

     In the absence of gross negligence or willful misconduct, the Agent shall
not be liable for any error in computing the amount payable to any Bank whether
in respect of the Loans, fees or any other amounts due to the Banks under this
Agreement. In the event an error in computing any amount payable to any Bank is
made, the Agent, the Borrower and each affected Bank shall, forthwith upon
discovery of such error, make such adjustments as shall be required to correct
such error, and any compensation therefor will be calculated at the Federal
Funds Effective Rate.

18.  Beneficiaries.

     Except as expressly provided herein, the provisions of this Exhibit 10 are
solely for the benefit of the Agent and the Banks, and the Borrowers shall not
have any rights to rely on or enforce any of the provisions hereof. In
performing its functions and duties under this Agreement, the Agent shall act
solely as agent of the Banks and does not assume and shall not be deemed to have
assumed any obligation toward or relationship of agency or trust with or for any
of the Borrowers.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}]]