Document:

EXHIBIT 10.1

                                     SILGAN
                                 HOLDINGS INC. [LOGO]
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                                CREDIT AGREEMENT
                                      among
                              SILGAN HOLDINGS INC.,
                         SILGAN CONTAINERS CORPORATION,
                          SILGAN PLASTICS CORPORATION,
                  SILGAN CONTAINERS MANUFACTURING CORPORATION,
                               SILGAN CAN COMPANY,
                            CERTAIN OTHER BORROWERS,
                                VARIOUS LENDERS,
                        DEUTSCHE BANK AG NEW YORK BRANCH,
                            as Administrative Agent,
                              BANK OF AMERICA, N.A.
                                       and
                              MORGAN STANLEY BANK,
                            as Co-Syndication Agents,
                                       and
                                   BNP PARIBAS
                                       and
                           JPMORGAN CHASE BANK, N.A.,
                           as Co-Documentation Agents
                     --------------------------------------
                            Dated as of June 30, 2005
                     --------------------------------------

<TABLE>

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 <S>                                                   <C>
              Deutsche Bank [Logo]                           Banc of America Securities [Logo]

         DEUTSCHE BANK SECURITIES INC.,                       BANC OF AMERICA SECURITIES LLC,
 as Joint Lead Arranger and Joint Book Manager         as Joint Lead Arranger and Joint Book Manager

====================================================================================================
</TABLE>

                              THE BANK OF NEW YORK,
                             RABOBANK INTERNATIONAL,
                         CITIZENS BANK OF MASSACHUSETTS,
                       WACHOVIA BANK, NATIONAL ASSOCIATION
                                       and
                               NATIONAL CITY BANK,
                           as Senior Managing Agents,
                                       and
                 UNITED OVERSEAS BANK LIMITED, NEW YORK AGENCY,
                             ALLIED IRISH BANK PLC,
                               LASALLE BANK, N.A.
                                       and
                         UNION BANK OF CALIFORNIA, N.A.,
                               as Managing Agents

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                            Page
                                                                            ----

Section 1.  Amount and Terms of Credit........................................1

       1.01  Commitments......................................................1
       1.02  Minimum Amount of Each Borrowing.................................6
       1.03  Notice of Borrowing..............................................6
       1.04  Disbursement of Funds............................................7
       1.05  Notes............................................................8
       1.06  Conversions.....................................................11
       1.07  Pro Rata Borrowings.............................................11
       1.08  Interest........................................................11
       1.09  Interest Periods................................................12
       1.10  Increased Costs, Illegality, etc................................14
       1.11  Compensation....................................................17
       1.12  Change of Applicable Lending Office.............................17
       1.13  Replacement of Lenders..........................................17
       1.14  Incremental Term Loan Commitments...............................19
       1.15  Incremental Revolving Loan Commitments..........................22
       1.16  Special Sharing and Conversion Provisions Applicable to
             Lenders Upon the Occurrence of a Sharing Event..................23

Section 2.  Letters of Credit................................................28

       2.01  Letters of Credit...............................................28
       2.02  Minimum Stated Amount...........................................30
       2.03  Letter of Credit Requests.......................................30
       2.04  Letter of Credit Participations.................................30
       2.05  Agreement to Repay Letter of Credit Drawings....................33
       2.06  Increased Costs.................................................34

Section 3.  Fees; Commitments; Reductions of Commitments.....................34

       3.01  Fees............................................................34
       3.02  Voluntary Termination of Revolving Commitments..................36
       3.03  Mandatory Reduction or Termination of Commitments...............37

Section 4.  Prepayments; Payments; Commitment Reductions.....................38

       4.01  Voluntary Prepayments...........................................38
       4.02  Mandatory Prepayments and Commitment Reductions.................39
       4.03  Method and Place of Payment.....................................47
       4.04  Net Payments....................................................48

Section 5.  Conditions Precedent.............................................50

       5.01  Conditions to Loans on the Initial Borrowing Date...............50
       5.02  Conditions to All Credit Events.................................54

                                      (i)
<PAGE>

       5.03  No Excess Cash..................................................54
       5.04  Additional Revolving Borrowers; Foreign Borrowers; etc..........55
       5.05  Incremental Term Loans; Incremental Revolving Loan
             Commitments.....................................................57

Section 6.  Representations Warranties and Agreements........................57

       6.01  Organizational Status...........................................57
       6.02  Power and Authority.............................................58
       6.03  No Violation....................................................58
       6.04  Governmental Approvals..........................................58
       6.05  Security Documents..............................................58
       6.06  Insurance.......................................................60
       6.07  Financial Statements; Financial Condition; etc..................60
       6.08  Litigation......................................................60
       6.09  True and Complete Disclosure....................................61
       6.10  Use of Proceeds; Margin Regulations.............................61
       6.11  Tax Returns and Payments........................................61
       6.12  Compliance with ERISA...........................................62
       6.13  Subordination...................................................62
       6.14  Subsidiaries....................................................63
       6.15  Compliance with Statutes etc....................................63
       6.16  Investment Company Act..........................................64
       6.17  Public Utility Holding Company Act..............................64
       6.18  Labor Relations.................................................64
       6.19  Patents, Licenses, Franchises and Formulas......................64

Section 7.  Affirmative Covenants............................................64

       7.01  Information Covenants...........................................64
       7.02  Books, Records and Inspections..................................67
       7.03  Maintenance of Property; Insurance..............................67
       7.04  Franchises......................................................68
       7.05  Compliance with Statutes; etc...................................68
       7.06  ERISA...........................................................68
       7.07  End of Fiscal Years; Fiscal Quarters............................69
       7.08  Taxes...........................................................69
       7.09  Additional Security; Further Assurances; etc....................69
       7.10  Foreign Subsidiaries Security...................................71
       7.11  Margin Stock....................................................72
       7.12  CanCo Capital Contributions.....................................72
       7.13  Use of Proceeds.................................................72
       7.14  Maintenance of Corporate Separateness...........................72

Section 8.  Negative Covenants...............................................72

       8.01  Liens...........................................................73
       8.02  Consolidation, Merger, Sale of Assets, etc......................76
       8.03  Dividends.......................................................79
       8.04  Indebtedness....................................................80

                                      (ii)
<PAGE>

       8.05  Advances; Investments and Loans.................................84
       8.06  Transactions with Affiliates and Unrestricted Subsidiaries......86
       8.07  Capital Expenditures............................................87
       8.08  Interest Coverage Ratio.........................................89
       8.09  Total Leverage Ratio............................................89
       8.10  Limitation on Voluntary Payments and Modifications of Certain
             Indebtedness; Modifications of Certain Documents;
             Certificate of Incorporation; By-Laws and Certain Other
             Agreements; etc.................................................89
       8.11  Creation of Subsidiaries and Unrestricted Subsidiaries..........90
       8.12  Limitation on Restrictions on Subsidiary Dividends and
             Other Distributions.............................................90
       8.13  Limitation on Issuances of Capital Stock........................91
       8.14  Business........................................................91
       8.15  Change of Name..................................................92
       8.16  Designated Senior Indebtedness..................................92

Section 9.  Events of Default................................................92

       9.01  Payments........................................................92
       9.02  Representations, etc............................................93
       9.03  Covenants.......................................................93
       9.04  Default Under Other Agreements..................................93
       9.05  Bankruptcy, etc.................................................93
       9.06  ERISA...........................................................94
       9.07  Guaranties......................................................94
       9.08  Security Documents..............................................94
       9.09  Judgments.......................................................94
       9.10  Change of Control...............................................95
       9.11  Accounts Receivable Facility....................................95

Section 10.  Definitions and Accounting Terms................................95

       10.01  Defined Terms..................................................95
       10.02  Principles of Construction....................................134

Section 11.  The Administrative Agent; etc..................................134

       11.01  Appointment...................................................134
       11.02  Nature of Duties..............................................134
       11.03  Lack of Reliance on the Administrative Agent..................135
       11.04  Certain Rights of the Administrative Agent....................135
       11.05  Reliance......................................................135
       11.06  Indemnification...............................................135
       11.07  The Administrative Agent in its Individual Capacity...........136
       11.08  Holders.......................................................136
       11.09  Resignation by the Administrative Agent.......................136
       11.10  Collateral Matters............................................137

Section 12.  Miscellaneous..................................................138

       12.01  Payment of Expenses, etc......................................138

                                     (iii)
<PAGE>

       12.02  Right of Setoff...............................................139
       12.03  Notices.......................................................140
       12.04  Benefit of Agreement..........................................140
       12.05  No Waiver; Remedies Cumulative................................142
       12.06  Payments Pro Rata.............................................142
       12.07  Calculations: Computations....................................143
       12.08  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE..............144
       12.09  Counterparts..................................................145
       12.10  Effectiveness.................................................145
       12.11  Headings Descriptive..........................................145
       12.12  Amendment and Waiver..........................................145
       12.13  Survival......................................................148
       12.14  Domicile of Loans.............................................148
       12.15  Confidentiality...............................................148
       12.16  Register......................................................149
       12.17  Certain Agreements with Respect to the 6/3-4% Senior
              Subordinated Debentures.......................................150
       12.18  Limitation on Additional Amounts, etc.........................150
       12.19  The Patriot Act...............................................150
       12.20  Campbell Standstill Period/Campbell Repurchase................150
       12.21  Judgment Currency.............................................151
       12.22  Euro..........................................................152
       12.23  Immunity......................................................152

SCHEDULES

Schedule I            Commitments
Schedule II           Existing Letters of Credit
Schedule III          Insurance
Schedule IV           Subsidiaries
Schedule V            Existing Liens
Schedule VI           Existing Indebtedness
Schedule VII          Existing Investments
Schedule VIII         Associated Costs Rate
Schedule IX           Lender Addresses
Schedule X            Certain Leasehold Sites

EXHIBITS

Exhibit A-1           Form of Notice of Borrowing
Exhibit A-2           Form of Notice of Conversion/Continuation
Exhibit B-1           Form of A Term Note
Exhibit B-2           Form of B Term Note
Exhibit B-3           Form of Incremental Term Note

                                      (iv)
<PAGE>

Exhibit B-4           Form of Revolving Note
Exhibit B-5           Form of Swingline Note
Exhibit C             Form of Letter of Credit Request
Exhibit D             Form of Section 4.04(b)(ii) Certificate
Exhibit E-1           Form of Opinion of Frank Hogan, Esq., General Counsel
Exhibit E-2           Form of Opinion of Bryan Cave LLP
Exhibit F             Form of Officers' Certificate
Exhibit G             Form of US Borrowers/Subsidiaries Guaranty
Exhibit H             Form of US Pledge Agreement
Exhibit I             Form of US Security Agreement
Exhibit J-1           Form of Election to Become a Revolving Borrower
Exhibit J-2           Form of Election to Become a Foreign Borrower
Exhibit K             Form of Assignment and Assumption Agreement
Exhibit L             Form of Incremental Term Loan Commitment Agreement
Exhibit M             Form of Incremental Revolving Loan Commitment Agreement

<PAGE>

          CREDIT AGREEMENT,  dated as  of June 30, 2005, among  SILGAN  HOLDINGS
INC.,  a Delaware  corporation  ("Silgan"),  SILGAN  CONTAINERS  CORPORATION,  a
Delaware corporation  ("Containers"),  SILGAN PLASTICS  CORPORATION,  a Delaware
corporation  ("Plastics"),   SILGAN  CONTAINERS  MANUFACTURING   CORPORATION,  a
Delaware   corporation   ("Manufacturing"),   SILGAN  CAN  COMPANY,  a  Delaware
corporation  ("CanCo"),  each other Revolving Borrower party hereto from time to
time, each other  Incremental  Term Loan Borrower party hereto from time to time
(together with Silgan, Containers, Plastics, Manufacturing, CanCo and each other
Revolving Borrower, the "Borrowers," and each individually,  a "Borrower"),  the
lenders from time to time party hereto (each a "Lender" and,  collectively,  the
"Lenders"),  DEUTSCHE BANK AG NEW YORK BRANCH, as administrative  agent (in such
capacity, the "Administrative  Agent"), BANK OF AMERICA, N.A. and MORGAN STANLEY
BANK, as co-syndication agents (in such capacity, the "Co-Syndication  Agents"),
BNP PARIBAS and JPMORGAN CHASE BANK, N.A., as  co-documentation  agents (in such
capacity, the "Co-Documentation  Agents"), and DEUTSCHE BANK SECURITIES INC. and
BANC OF AMERICA SECURITIES LLC, as joint lead arrangers and joint book managers.
Unless otherwise  defined herein,  all capitalized terms used herein and defined
in Section 10 are used herein as so defined.

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

          WHEREAS, subject to and upon the terms and conditions set forth herein
herein,  the  Lenders  are  willing  to  make  available  to the  Borrowers  the
respective credit facilities provided for herein;

          NOW, THEREFORE, IT IS AGREED:

          Section 1. Amount and Terms of Credit.

          1.01 Commitments. (a) Subject to and upon the terms and conditions set
forth herein,  each Lender with an A Term Loan  Commitment  severally  agrees to
make,  on the Initial  Borrowing  Date,  a term loan (each an "A Term Loan" and,
collectively, the "A Term Loans") to Silgan, which A Term Loans:

          (i) shall be denominated in Dollars;

          (ii)  shall,  at the  option of Silgan,  be either  Base Rate Loans or
          Eurodollar Loans, provided that  all A Term Loans made as  part of the
          same Borrowing shall, unless otherwise  specifically  provided herein,
          be of the same Type; and

          (iii)  shall not  exceed  for any such  Lender,  in  initial aggregate
          principal amount,  that amount which equals the A Term Loan Commitment
          of such Lender on the Initial  Borrowing Date (before giving effect to
          the  termination  thereof on such date  pursuant  to Section 3.03(b)).

Once repaid, A Term Loans incurred hereunder may not be reborrowed.
<PAGE>

          (b)  Subject to and upon the terms and  conditions  set forth  herein,
each  Lender  with a B Term Loan  Commitment  severally  agrees to make,  on the
Initial Borrowing Date, a term loan (each a "B Term Loan" and, collectively, the
"B Term Loans") to Silgan, which B Term Loans:

          (i) shall be denominated in Dollars;

          (ii)  shall,  at the option of Silgan,  be either  Base Rate  Loans or
          Eurodollar Loans, provided that all  B Term Loans made as part of  the
          same Borrowing shall,  unless otherwise specifically  provided herein,
          be of the same Type; and

          (iii)  shall not  exceed  for any such  Lender,  in  initial aggregate
          principal amount,  that amount which equals the B Term Loan Commitment
          of such Lender on the Initial Borrowing Date  (before giving effect to
          the  termination  thereof on such date  pursuant  to Section 3.03(b)).

Once repaid, B Term Loans incurred hereunder may not be reborrowed.

          (c) Subject to and upon the terms and  conditions set forth in Section
1.14 and the other provisions set forth herein,  each Lender with an Incremental
Term Loan  Commitment  for a given Tranche of Incremental  Term Loans  severally
agrees,  at any time and  from  time to time on and  after  the date  that  such
Incremental Term Loan Commitment is obtained  pursuant to Section 1.14 and prior
to the Incremental  Commitment  Termination Date for such Tranche of Incremental
Term Loans, to make a term loan or term loans (each an  "Incremental  Term Loan"
and,  collectively,  the "Incremental  Term Loans") to the Incremental Term Loan
Borrower for such Tranche, which Incremental Term Loans:

          (i) shall be incurred on an Incremental Term Loan Borrowing Date;

          (ii) shall be denominated in the Applicable  Currency for such Tranche
     of Incremental Term Loans;

          (iii)  shall,  if  Dollar  Loans,  at the  option  of  the  applicable
     Incremental  Term Loan  Borrower,  be incurred and  maintained  as,  and/or
     converted  into,  Base Rate Loans or  Eurodollar  Loans,  provided that all
     Incremental  Term Loans that are Dollar Loans comprising the same Borrowing
     under such Tranche shall, unless otherwise specifically provided herein, be
     of the same Type;

          (iv) shall,  if an Alternate  Currency  Incremental  Term Loan, at the
     option of the applicable  Incremental  Term Loan Borrower,  be incurred and
     maintained in one or more Borrowings of Alternate Currency Incremental Term
     Loans under such Tranche; and

          (v) shall not exceed for any such  Incremental Term Loan Lender at the
     time of any  incurrence  thereof,  that  aggregate  principal  amount which
     equals the Incremental  Term Loan Commitment of such  Incremental Term Loan
     Lender for such Tranche at such time (before giving effect to any reduction
     thereof at such time pursuant to Section 3.03(c)).

                                      -2-
<PAGE>

Once repaid, Incremental Term Loans incurred hereunder may not be reborrowed.

          (d) Subject to and  upon the terms and  conditions  set forth  herein,
each Revolving Lender severally agrees, at any time and from time to time on and
after the Initial  Borrowing Date and prior to the Revolving Loan Maturity Date,
to make a  revolving  loan or  revolving  loans  (each a  "Revolving  Loan" and,
collectively, the "Revolving Loans") to each Revolving Borrower, which Revolving
Loans:

          (i)  shall  be  denominated  in  Dollars  or  in a  Primary  Alternate
     Currency, in each case, as elected by the respective Revolving Borrower;

          (ii) shall, if Dollar Revolving Loans, at the option of the respective
     Revolving Borrower, be either Base Rate Loans or Eurodollar Loans, provided
     that all Dollar  Revolving Loans made as part of the same Borrowing  shall,
     unless otherwise specifically provided herein, be of the same Type;

          (iii) shall, if Primary Alternate  Currency Revolving Loans, be a Euro
     Rate  Loan  denominated  in  the  applicable  Primary  Alternate  Currency,
     provided that all Primary Alternate  Currency  Revolving Loans made as part
     of the same Borrowing shall be of the same Type;

          (iv) may be repaid and  reborrowed in accordance  with the  provisions
     hereof;

          (v) shall not be made (and  shall not be  required  to be made) by any
     Revolving Lender in any instance where the incurrence thereof (after giving
     effect to the use of the  proceeds  thereof  on the date of the  incurrence
     thereof to simultaneously repay any Unpaid Drawings, Revolving Loans and/or
     Swingline  Loans  theretofore  outstanding)  would cause the  Individual RL
     Exposure of such Revolving  Lender to exceed the Revolving Loan  Commitment
     of such Revolving Lender at such time;

          (vi) shall not be made (and shall not be  required  to be made) by any
     Revolving Lender in any instance where the incurrence thereof (after giving
     effect to the use of the  proceeds  thereof  on the date of the  incurrence
     thereof to simultaneously repay any Unpaid Drawings, Revolving Loans and/or
     Swingline  Loans  theretofore  outstanding)  would cause the  Aggregate  RL
     Exposure to exceed the Total Revolving Loan Commitment at such time;

          (vii) in the case of Primary Alternate Currency Revolving Loans, shall
     not be made (and shall not be required to be made) by any Revolving  Lender
     in any instance  where the  incurrence  thereof  would cause the  aggregate
     principal  amount  (using the Dollar  Equivalent  thereof)  of all  Primary
     Alternate  Currency  Revolving Loans then outstanding to exceed the Primary
     Alternate Currency Sublimit; and

          (viii)  shall  not  exceed  for  CanCo  at any time  outstanding  that
     aggregate  principal amount (for this purpose,  using the Dollar Equivalent
     of each Primary  Alternate  Currency  Revolving  Loan incurred by CanCo and
     then  outstanding)  which,  (A) when added to the sum of (I) the  aggregate
     amount of all Letter of Credit  Outstandings  (exclusive of Unpaid Drawings
     which  are  repaid  with  the  proceeds  of,  and

                                      -3-
<PAGE>

     simultaneously  with the incurrence  of, such Revolving  Loans by CanCo) in
     respect of all  Letters of Credit  issued for the  account of CanCo at such
     time  and  (II) the  aggregate  principal  amount  of all  Swingline  Loans
     (exclusive  of  Swingline  Loans which are repaid with the proceeds of, and
     simultaneously  with the incurrence of, such Revolving  Loans)  incurred by
     CanCo  and then  outstanding  at such  time,  equals  the  CanCo  Revolving
     Sub-Limit then in effect, or (B) when added to the sum of (I) the aggregate
     amounts calculated in preceding clause (A) and outstanding at such time and
     (II) the aggregate  amount of all other CanCo Included Debt  outstanding at
     such time, equals the CanCo Permitted Debt Amount at such time.

          (e)  Subject to and upon the terms and  conditions  set forth  herein,
the Swingline Lender in its individual  capacity agrees to make, at any time and
from  time to time on and  after  the  Initial  Borrowing  Date and prior to the
Swingline  Expiry Date, a revolving  loan or revolving  loans (each a "Swingline
Loan" and,  collectively,  the "Swingline  Loans") to each  Revolving  Borrower,
which Swingline Loans:

          (i) shall be  denominated  in Dollars and shall be made and maintained
     as Base Rate Loans;

          (ii) may be repaid and  reborrowed in accordance  with the  provisions
     hereof;

          (iii)  shall not  exceed  in  aggregate  principal  amount at any time
     outstanding in respect of all Revolving Borrowers, when added to the sum of
     (I) the aggregate  principal amount of all Revolving Loans then outstanding
     (for this purpose,  using the Dollar  Equivalent of each Primary  Alternate
     Currency  Revolving Loan then  outstanding and exclusive of Revolving Loans
     and   Swingline   Loans  which  are  repaid  with  the   proceeds  of,  and
     simultaneously  with the incurrence of, such Swingline  Loans) and (II) the
     aggregate amount of all Letter of Credit Outstandings  (exclusive of Unpaid
     Drawings which are repaid with the proceeds of, and simultaneously with the
     incurrence of, such  Swingline  Loans) at such time, an amount equal to the
     Total Revolving Loan Commitment at such time;

          (iv) shall not exceed for CanCo at any time outstanding that aggregate
     principal  amount  which,  (A) when  added to the sum of (I) the  aggregate
     amount of all Letter of Credit  Outstandings  (exclusive of Unpaid Drawings
     which  are  repaid  with  the  proceeds  of,  and  simultaneously  with the
     incurrence of, such Swingline  Loans by CanCo) in respect of all Letters of
     Credit  issued for the account of CanCo at such time and (II) the aggregate
     principal  amount  of all  Revolving  Loans  incurred  by  CanCo  and  then
     outstanding (for this purpose,  using the Dollar Equivalent of each Primary
     Alternate  Currency Revolving Loan incurred by CanCo and then outstanding),
     equals the CanCo Revolving  Sub-Limit then in effect,  or (B) when added to
     the sum of (I) the aggregate amounts calculated in preceding clause (A) and
     outstanding  at such time and (II) the aggregate  amount of all other CanCo
     Included Debt  outstanding  at such time,  equals the CanCo  Permitted Debt
     Amount at such time; and

          (v)  shall  not  exceed  in  aggregate  principal  amount  at any time
     outstanding in respect of all Revolving  Borrowers,  the Maximum  Swingline
     Amount.

                                      -4-
<PAGE>

          Notwithstanding  anything to the  contrary  contained  in this Section
1.01(e),  (i) the Swingline  Lender shall not be obligated to make any Swingline
Loans at a time when a Lender Default exists with respect to a Revolving  Lender
unless the Swingline Lender has entered into arrangements satisfactory to it and
Silgan to eliminate the Swingline  Lender's risk with respect to the  Defaulting
Lender's or Lenders'  participation in such Swingline  Loans,  including by cash
collateralizing  such  Defaulting  Lender's  or Lenders'  RL  Percentage  of the
outstanding  Swingline  Loans,  and (ii) the  Swingline  Lender  will not make a
Swingline  Loan after it has  received  written  notice from any Borrower or the
Required Lenders stating that a Default or an Event of Default exists until such
time  as  the  Swingline  Lender  shall  have  received  written  notice  of (x)
rescission of all such notices from the party or parties  originally  delivering
such  notice or  notices  or (y) the cure or waiver of such  Default or Event of
Default in accordance with the requirements of this Agreement.

          (f) On any  Business  Day,  the  Swingline  Lender  may,  in its  sole
discretion,  give notice to the Revolving  Lenders that the  Swingline  Lender's
outstanding Swingline Loans shall be funded with a Borrowing of Dollar Revolving
Loans  (provided  that such  notice  shall be deemed to have been  automatically
given upon the occurrence of a Default or an Event of Default under Section 9.05
or upon the  exercise of any of the remedies  provided in the last  paragraph of
Section  9), in which  case one or more  Borrowings  of Dollar  Revolving  Loans
constituting  Base Rate Loans (each such  Borrowing,  a  "Mandatory  Borrowing")
shall be made on the  immediately  succeeding  Business  Day from all  Revolving
Lenders  (without  giving effect to any  termination of the Total Revolving Loan
Commitment  pursuant to the last  paragraph of Section 9) pro rata based on each
such Revolving  Lender's RL Percentage  (determined  before giving effect to any
termination  of the  Total  Revolving  Loan  Commitment  pursuant  to  the  last
paragraph of Section 9), and the proceeds  thereof shall be applied  directly to
the  Swingline  Lender  to repay  the  Swingline  Lender  for  such  outstanding
Swingline Loans. Each Revolving Lender hereby  irrevocably agrees to make Dollar
Revolving  Loans upon one  Business  Day's  notice  pursuant  to each  Mandatory
Borrowing in the amount and in the manner  specified in the  preceding  sentence
and on the date specified in writing by the Swingline Lender notwithstanding (i)
the amount of the Mandatory Borrowing may not comply with the minimum amount for
Borrowings  otherwise required hereunder,  (ii) whether any conditions specified
in Section 5 are then satisfied,  (iii) whether a Default or an Event of Default
then exists, (iv) the date of such Mandatory Borrowing and (v) the amount of the
Total  Revolving  Loan  Commitment at such time. In the event that any Mandatory
Borrowing  cannot for any reason be made on the date  otherwise  required  above
(including,  without limitation, as a result of the commencement of a proceeding
of the type  referred to in Section  9.05 with  respect to any of the  Revolving
Borrowers),  then each  Revolving  Lender hereby agrees that it shall  forthwith
purchase (as of the date the Mandatory  Borrowing would otherwise have occurred,
but adjusted for any payments received from the Revolving  Borrowers on or after
such  date  and  prior  to  such  purchase)  from  the  Swingline   Lender  such
participations in the outstanding Swingline Loans as shall be necessary to cause
such Revolving Lenders to share in such Swingline Loans ratably based upon their
respective RL Percentages (determined before giving effect to any termination of
the Total  Revolving Loan  Commitment  pursuant to the last paragraph of Section
9);  provided that (x) all interest  payable on the Swingline Loans shall be for
the account of the  Swingline  Lender until the date as of which the  respective
participation is required to be purchased and, to the extent attributable to the
purchased participation, shall be payable to the participant from and after such
date  and (y) at the  time  any  purchase  of  participations  pursuant  to this
sentence is actually made,

                                      -5-
<PAGE>

the purchasing  Revolving  Lender shall be required to pay the Swingline  Lender
interest on the principal  amount of  participation  purchased for each day from
and including the day upon which the Mandatory  Borrowing  would  otherwise have
occurred to but  excluding  the date of payment for such  participation,  at the
overnight  Federal Funds Rate for the first three days and at the rate otherwise
applicable to Dollar Revolving Loans maintained as Base Rate Loans hereunder for
each day thereafter.

          1.02 Minimum Amount of Each Borrowing.  The aggregate principal amount
of each Borrowing of Loans under a respective Tranche shall not be less than the
Minimum  Borrowing Amount for such Tranche of Loans. More than one Borrowing may
occur on the same date,  but at no time  shall  there be  outstanding  more than
thirty Borrowings of Euro Rate Loans in the aggregate.

          1.03 Notice of Borrowing. (a) Whenever (x) a Borrower desires to incur
Dollar Loans hereunder  (excluding  Swingline Loans and Revolving Loans incurred
pursuant to a Mandatory Borrowing),  such Borrower shall give the Administrative
Agent at the  applicable  Notice Office at least one Business Day's prior notice
of each Base Rate Loan,  and at least three  Business Days' prior notice of each
Eurodollar Loan (or, in the case of a Eurodollar Loan with an Interest Period of
other than a one, two, three or six-month  period,  at least five Business Days'
prior notice of each such  Eurodollar  Loan), to be incurred  hereunder,  (y) an
Incremental Term Loan Borrower desires to incur Alternate  Currency  Incremental
Term  Loans  hereunder,  such  Incremental  Term Loan  Borrower  shall  give the
Administrative  Agent at the  applicable  Notice Office at least three  Business
Days' (or, in the case of an Alternate  Currency  Incremental  Term Loan with an
Interest  Period of other than a one, two, three or six-month  period,  at least
five Business  Days') prior notice of each such Alternate  Currency  Incremental
Term Loan to be  incurred  hereunder,  and (z) a Revolving  Borrower  desires to
incur Primary  Alternate  Currency  Revolving  Loans  hereunder,  such Revolving
Borrower shall give the Administrative  Agent at the applicable Notice Office at
least  three  Business  Days' (or, in the case of a Primary  Alternate  Currency
Revolving  Loan with an  Interest  Period  of other  than a one,  two,  three or
six-month  period,  at least  five  Business  Days')  prior  notice of each such
Primary Alternate  Currency  Revolving Loan to be incurred  hereunder,  provided
that (in each  case) any such  notice  shall be  deemed to have been  given on a
certain day only if given before 1:00 P.M.  (Local Time) on such day.  Each such
notice (each a "Notice of Borrowing"), except as otherwise expressly provided in
Section 1.10, shall be irrevocable and shall be given by the respective Borrower
in writing,  or by  telephone  promptly  confirmed  in  writing,  in the form of
Exhibit A-1,  appropriately  completed to specify (i) the name of such Borrower,
(ii) the  aggregate  principal  amount of the Loans to be made  pursuant to such
Borrowing (stated in Dollars or, in the case of Alternate Currency Loans, in the
relevant Alternate Currency), (iii) the date of such Borrowing (which shall be a
Business Day), (iv) in the case of Incremental  Term Loans and Revolving  Loans,
the  Applicable  Currency,  (v) whether  the Loans  being made  pursuant to such
Borrowing shall constitute A Term Loans, B Term Loans, Incremental Term Loans or
Revolving  Loans,  (vi) in the case of Dollar  Loans,  whether such Dollar Loans
being made  pursuant to such  Borrowing  are to be initially  maintained as Base
Rate Loans or, to the extent permitted hereunder, Eurodollar Loans, and (vii) in
the case of all Euro Rate Loans,  the initial  Interest  Period to be applicable
thereto.  The  Administrative  Agent shall  promptly  give each Lender  which is
required  to make Loans of the Tranche  specified  in the  respective  Notice of
Borrowing, notice of such proposed Borrowing, of

                                      -6-
<PAGE>

such Lender's  proportionate  share thereof and of the other matters required by
the immediately preceding sentence to be specified in the Notice of Borrowing.

          (b) (i) Whenever a Revolving Borrower desires to incur Swingline Loans
hereunder,  such Revolving  Borrower  shall give the Swingline  Lender not later
than 1:00 P.M.  (Local Time) on the date that a Swingline Loan is to be incurred
hereunder,  written notice or telephonic notice promptly confirmed in writing of
each  Swingline  Loan to be  incurred  hereunder.  Each  such  notice  shall  be
irrevocable and specify in each case (A) the date of Borrowing (which shall be a
Business Day) and (B) the aggregate  principal  amount of the Swingline Loans to
be made pursuant to such Borrowing.

          (ii) Mandatory  Borrowings  shall be made upon the notice specified in
Section  1.01(f),  with each Revolving  Borrower  irrevocably  agreeing,  by its
incurrence of any Swingline  Loan, to the making of Mandatory  Borrowings as set
forth in Section 1.01(f).

          (c) Without in any way  limiting  the  obligation  of any  Borrower to
confirm  in  writing  any  telephonic  notice of any  Borrowing  of  Loans,  the
Administrative  Agent or the  Swingline  Lender,  as the  case  may be,  may act
without  liability  upon  the  basis of  telephonic  notice  of such  Borrowing,
reasonably believed by the Administrative  Agent or the Swingline Lender, as the
case may be, in good faith to be from the president, a vice president, the chief
financial officer,  the treasurer or an assistant treasurer of such Borrower (or
any other  officer or employee  of such  Borrower  designated  in writing to the
Administrative  Agent  and  the  Swingline  Lender  by  the  president,  a  vice
president,  the chief financial officer, the treasurer or an assistant treasurer
of such Borrower as being  authorized to give such notices under this Agreement)
prior to receipt  of written  confirmation.  In each such  case,  each  Borrower
hereby waives the right to dispute the  Administrative  Agent's or the Swingline
Lender's  record of the terms of such  telephonic  notice of such  Borrowing  of
Loans.

          1.04  Disbursement  of Funds. No later than 12:00 Noon (Local Time) on
the date  specified in each Notice of Borrowing (or (x) in the case of Swingline
Loans,  no later than 3:00 P.M.  (Local Time) on the date specified  pursuant to
Section  1.03(b)(i)  or (y) in the case of Mandatory  Borrowings,  no later than
12:00 Noon (Local Time) on the date specified in Section  1.01(f)),  each Lender
with a Commitment  of the  respective  Tranche will make  available its pro rata
portion of each such  Borrowing  requested  to be made on such date (or,  in the
case of Swingline  Loans,  the  Swingline  Lender shall make  available the full
amount thereof). All such amounts shall be made available in Dollars (or, in the
case of Alternate  Currency  Loans,  in the Alternate  Currency for the relevant
Tranche) and in immediately  available  funds at the applicable  Payment Office,
and the Administrative  Agent will, except in the case of a Mandatory Borrowing,
make  available to the relevant  Borrower at such Payment Office in Dollars (or,
in the case of Alternate  Currency  Loans,  in the  Alternate  Currency for such
Tranche) the aggregate of the amounts so made  available by the Lenders.  Unless
the  Administrative  Agent shall have been  notified by any Lender  prior to the
date of  Borrowing  that such  Lender does not intend to make  available  to the
Administrative  Agent such Lender's  portion of any Borrowing to be made on such
date, the Administrative  Agent may assume that such Lender has made such amount
available  to the  Administrative  Agent  on  such  date  of  Borrowing  and the
Administrative  Agent may, in reliance upon such  assumption,  make available to
the relevant Borrower a corresponding  amount. If such  corresponding  amount is
not in fact made available to the Administrative Agent

                                      -7-
<PAGE>

by such  Lender,  the  Administrative  Agent shall be  entitled to recover  such
corresponding  amount on demand  from such  Lender.  If such Lender does not pay
such  corresponding  amount  forthwith  upon the  Administrative  Agent's demand
therefor,  the Administrative  Agent shall promptly notify the relevant Borrower
and such  Borrower  shall  immediately  pay  such  corresponding  amount  to the
Administrative Agent. The Administrative Agent shall also be entitled to recover
on demand from such  Lender or such  Borrower,  as the case may be,  interest on
such   corresponding   amount  in  respect  of  each  day  from  the  date  such
corresponding  amount was made  available  by the  Administrative  Agent to such
Borrower  until  the  date  such  corresponding   amount  is  recovered  by  the
Administrative  Agent,  at a rate per annum equal to (i) if recovered  from such
Lender,  at the  overnight  Federal  Funds  Rate (or,  in the case of  Alternate
Currency Loans, the Administrative Agent's customary rate for interbank advances
in the relevant Alternate  Currency) for the first three days and at the rate of
interest otherwise  applicable to such Loans for each day thereafter and (ii) if
recovered from such Borrower,  the rate of interest applicable to the respective
Borrowing,  as determined pursuant to Section 1.08. Nothing in this Section 1.04
shall be  deemed  to  relieve  any  Lender  from its  obligation  to make  Loans
hereunder or to prejudice  any rights which the  Borrowers  may have against any
Lender as a result of any failure by such Lender to make Loans hereunder.

          1.05 Notes.  (a) Each  Borrower's  obligation to pay the principal of,
and  interest  on, all the Loans made by each Lender to such  Borrower  shall be
evidenced in the Register  maintained by the  Administrative  Agent  pursuant to
Section  12.16  and,  subject to the  provisions  of  Section  1.05(h),  also be
evidenced (i) if A Term Loans,  by a promissory note duly executed and delivered
by Silgan  substantially  in the form of Exhibit B-1 (each an "A Term Note" and,
collectively,  the "A Term Notes"),  (ii) if B Term Loans,  by a promissory note
duly executed and delivered by Silgan  substantially  in the form of Exhibit B-2
(each  a "B  Term  Note"  and,  collectively,  the "B  Term  Notes"),  (iii)  if
Incremental  Term Loans, by a promissory note duly executed and delivered by the
respective  Incremental Term Loan Borrower  substantially in the form of Exhibit
B-3 (each an "Incremental  Term Note" and,  collectively,  the "Incremental Term
Notes"),  (iv) if  Revolving  Loans,  by  promissory  notes  duly  executed  and
delivered by each Revolving  Borrower  substantially  in the form of Exhibit B-4
(each a "Revolving Note" and,  collectively,  the "Revolving Notes"), and (v) if
Swingline  Loans,  by  promissory  notes duly  executed  and  delivered  by each
Revolving  Borrower  substantially in the form of Exhibit B-5 (each a "Swingline
Note"  and,  collectively,  the  "Swingline  Notes"),  in each case with  blanks
appropriately completed in conformity herewith.

          (b) The A Term Note  issued by  Silgan to each  Lender  with an A Term
Loan  Commitment or outstanding A Term Loans shall (i) be payable to such Lender
or its registered assigns and be dated the Initial Borrowing Date (or, if issued
after the Initial Borrowing Date, be dated the date of issuance  thereof),  (ii)
be in a stated  principal  amount  (expressed in Dollars) equal to the principal
amount of the A Term Loans made by such  Lender on the  Initial  Borrowing  Date
(or, if issued after the Initial Borrowing Date, be in a stated principal amount
(expressed in Dollars) equal to the outstanding principal amount of A Term Loans
of such Lender at such time) and be payable in the outstanding  principal amount
of A Term Loans  evidenced  thereby,  (iii)  mature on the A Term Loan  Maturity
Date, (iv) bear interest as provided in the  appropriate  clause of Section 1.08
in  respect  of Base  Rate  Loans  and  Eurodollar  Loans,  as the  case may be,
evidenced thereby, (v) be subject to voluntary prepayment as provided in

                                      -8-
<PAGE>

Section 4.01,  and mandatory  repayment as provided in Section 4.02, and (vi) be
entitled to the benefits of this Agreement and the other Credit Documents.

          (c) The B Term Note issued by Silgan to each Lender with a B Term Loan
Commitment  or  outstanding  B Term Loans shall (i) be payable to such Lender or
its  registered  assigns and be dated the Initial  Borrowing Date (or, if issued
after the Initial Borrowing Date, be dated the date of issuance  thereof),  (ii)
be in a stated  principal  amount  (expressed in Dollars) equal to the principal
amount of the B Term Loans made by such  Lender on the  Initial  Borrowing  Date
(or, if issued after the Initial Borrowing Date, be in a stated principal amount
(expressed in Dollars) equal to the outstanding principal amount of B Term Loans
of such  Lender at such time) and be payable  in the  principal  amount of the B
Term Loans  evidenced  thereby,  (iii) mature on the B Term Loan Maturity  Date,
(iv) bear  interest  as provided in the  appropriate  clause of Section  1.08 in
respect of Base Rate Loans and Eurodollar  Loans, as the case may be,  evidenced
thereby, (v) be subject to voluntary prepayment as provided in Section 4.01, and
mandatory  repayment  as provided in Section  4.02,  and (vi) be entitled to the
benefits of this Agreement and the other Credit Documents.

          (d) The  Incremental  Term Note issued by each  Incremental  Term Loan
Borrower to each Lender with an Incremental  Term Loan Commitment or outstanding
Incremental Term Loans under a given Tranche shall (i) be payable to such Lender
or its registered assigns and be dated the date of issuance thereof,  (ii) be in
a stated principal amount (expressed in the relevant Applicable  Currency) equal
to the Incremental  Term Loan Commitment of such Lender on the effective date of
the  respective  Incremental  Term  Loan  Commitment  Agreement  (prior  to  the
incurrence of any Incremental  Term Loans pursuant thereto on such date) (or, if
issued  thereafter,  be in a stated principal amount  (expressed in the relevant
Applicable  Currency)  equal  to the sum of the  then  remaining  amount  of the
Incremental  Term Loan Commitment of such Lender plus the outstanding  principal
amount of the  Incremental  Term  Loans of such  Lender on the date of  issuance
thereof) and be payable in the relevant  Applicable  Currency in the outstanding
principal amount of the Incremental Term Loans evidenced  thereby,  (iii) mature
on the respective  Incremental  Term Loan Maturity  Date,  (iv) bear interest as
provided in the appropriate clause of Section 1.08 in respect of Base Rate Loans
and Euro Rate Loans, as the case may be,  evidenced  thereby,  (v) be subject to
voluntary  prepayment  as provided in Section 4.01,  and mandatory  repayment as
provided in Section 4.02, and (vi) be entitled to the benefits of this Agreement
and the other Credit Documents.

          (e) The  Revolving  Note  issued by each  Revolving  Borrower  to each
Revolving Lender shall (i) be payable to such Revolving Lender or its registered
assigns and be dated the Initial Borrowing Date (or, if issued after the Initial
Borrowing  Date,  be dated the date of  issuance  thereof),  (ii) be in a stated
principal  amount  (expressed in Dollars) equal to the Revolving Loan Commitment
of such Revolving Lender (or, if issued after the termination  thereof,  be in a
stated  principal  amount  (expressed  in  Dollars)  equal  to  the  outstanding
Revolving  Loans of such  Revolving  Lender at such  time) and be payable in the
outstanding  principal amount of the Revolving Loans to such Revolving  Borrower
evidenced  thereby,  provided that if, because of fluctuations in exchange rates
after the Initial  Borrowing  Date, the Revolving  Note of any Revolving  Lender
would not be at least as great as the  outstanding  aggregate  principal  amount
(taking the Dollar Equivalent of all Primary Alternate  Currency Revolving Loans
evidenced  thereby) of the Revolving Loans made by such Revolving Lender to such
Revolving

                                      -9-
<PAGE>

Borrower at any time  outstanding,  the respective  Revolving Lender may, at any
time after the occurrence of any Specified Default or Event of Default,  request
(and in such case such Revolving  Borrower shall promptly execute and deliver) a
new Revolving Note in an amount equal to the aggregate  principal amount (taking
the  Dollar  Equivalent  of  all  Primary  Alternate  Currency  Revolving  Loans
evidenced  thereby) of such Revolving Loans of such Revolving Lender outstanding
on the date of the  issuance of such new  Revolving  Note,  (iii)  mature on the
Revolving Loan Maturity Date, (iv) with respect to each Revolving Loan evidenced
thereby,  be  payable  in the  respective  Applicable  Currency  in  which  such
Revolving Loan was made, provided that the obligations evidenced by each Primary
Alternate  Currency  Revolving  Loan  evidenced  thereby  shall  be  subject  to
conversion  into  Dollar  Loans  as  provided  in  (and  in  the   circumstances
contemplated  by) Section 1.16, (v) bear interest as provided in the appropriate
clause of Section 1.08 in respect of Base Rate Loans and Euro Rate Loans, as the
case may be,  evidenced  thereby,  (vi) be subject to  voluntary  prepayment  as
provided in Section 4.01,  and mandatory  repayment as provided in Section 4.02,
and (vii) be entitled to the  benefits of this  Agreement  and the other  Credit
Documents.

          (f) The  Swingline  Note  issued  by each  Revolving  Borrower  to the
Swingline  Lender shall (i) be payable to the Swingline Lender or its registered
assigns and be dated the Initial  Borrowing Date, (ii) be in a stated  principal
amount  (expressed  in  Dollars)  equal to the Maximum  Swingline  Amount and be
payable in the outstanding principal amount of Swingline Loans to such Revolving
Borrower evidenced thereby, (iii) mature on the Swingline Expiry Date, (iv) bear
interest as provided in the  appropriate  clause of Section  1.08 in the case of
the Base Rate Loans evidenced thereby, (v) be subject to voluntary prepayment as
provided in Section 4.01,  and mandatory  repayment as provided in Section 4.02,
and (vi) be entitled  to the  benefits of this  Agreement  and the other  Credit
Documents.

          (g) Except as otherwise provided in Section 1.05(h),  each Lender will
note on its internal records the amount of each Loan made by it and each payment
and  conversion in respect  thereof and will prior to any transfer of any of its
Notes endorse on the reverse side thereof the  outstanding  principal  amount of
Loans evidenced thereby.  Failure to make any such notation or any error in such
notation  shall not affect the respective  Borrower's  obligations in respect of
such Loans.

          (h)  Notwithstanding  anything to the contrary contained above in this
Section 1.05 or elsewhere  in this  Agreement,  Notes shall only be delivered to
Lenders which at any time  specifically  request the delivery of such Notes.  No
failure of any Lender to request,  obtain, maintain or produce a Note evidencing
its Loans to any Borrower  shall affect or in any manner impair the  obligations
of any  Borrower to pay the Loans (and all related  Obligations)  incurred by it
which would otherwise be evidenced  thereby in accordance with the  requirements
of this  Agreement,  and shall not in any way affect the security or  guaranties
therefor  provided  pursuant to the various Credit  Documents.  Any Lender which
does not  have a Note  evidencing  its  outstanding  Loans  shall in no event be
required to make the notations  otherwise  described in preceding clause (g). At
any time when any Lender  requests the delivery of a Note to evidence any of its
Loans,  the  respective  Borrower  shall  promptly  execute  and  deliver to the
respective  Lender the requested  Note in the  appropriate  amount or amounts to
evidence such Loans.

                                      -10-
<PAGE>

          1.06 Conversions.  Each Borrower shall have the option to convert,  on
any Business  Day  occurring on or after the Initial  Borrowing  Date,  all or a
portion  equal to at least  the  Minimum  Borrowing  Amount  of the  outstanding
principal  amount of Dollar Loans made to such Borrower  pursuant to one or more
Borrowings (so long as of the same Tranche) of one or more Types of Dollar Loans
into a Borrowing (of the same Tranche) of another Type of Dollar Loan,  provided
that (i) except as otherwise  provided in Section 1.10(b),  Eurodollar Loans may
be  converted  into Base Rate Loans only on the last day of an  Interest  Period
applicable  to the Loans  being  converted  and no such  partial  conversion  of
Eurodollar  Loans  shall  reduce  the  outstanding   principal  amount  of  such
Eurodollar  Loans made  pursuant to a single  Borrowing to less than the Minimum
Borrowing Amount applicable thereto,  (ii) unless the Required Lenders otherwise
agree,  Base  Rate  Loans  may only be  converted  into  Eurodollar  Loans if no
Specified  Default  or  Event  of  Default  is in  existence  on the date of the
conversion,  (iii) no conversion pursuant to this Section 1.06 shall result in a
greater number of Borrowings of Euro Rate Loans than is permitted  under Section
1.02 and (iv)  Swingline  Loans may not be  converted  pursuant to this  Section
1.06.  Each  conversion  pursuant to this  Section 1.06 shall be effected by the
respective Borrower by giving the Administrative  Agent at the applicable Notice
Office prior to 1:00 P.M. (Local Time) at least three Business Days' (or, in the
case of an Interest Period other than a one, two, three or six-month  period, at
least   five    Business    Days')    prior    notice   (each   a   "Notice   of
Conversion/Continuation") in the form of Exhibit A-2, appropriately completed to
specify the Dollar Loans to be so converted,  the Borrowing(s) pursuant to which
such Dollar Loans were made and, if to be converted into Eurodollar  Loans,  the
Interest Period to be initially  applicable  thereto.  The Administrative  Agent
shall give each Lender prompt notice of any such proposed  conversion  affecting
any of its Dollar Loans. Upon any such conversion,  the proceeds thereof will be
applied  directly  on the day of  such  conversion  to  prepay  the  outstanding
principal amount of the Dollar Loans being converted.

          1.07 Pro Rata  Borrowings.  All  Borrowings  of A Term  Loans,  B Term
Loans, Incremental Term Loans under a given Tranche and Revolving Loans shall be
incurred  from  the  Lenders  pro  rata  on the  basis  of  their  A  Term  Loan
Commitments, B Term Loan Commitments, Incremental Term Loan Commitments for such
Tranche or Revolving  Loan  Commitments,  as the case may be;  provided that all
Borrowings of Revolving  Loans made pursuant to a Mandatory  Borrowing  shall be
incurred from the Revolving Lenders pro rata on the basis of their respective RL
Percentages.  It is  understood  that no  Lender  shall be  responsible  for any
default by any other Lender of its  obligation to make Loans  hereunder and that
each  Lender  shall be  obligated  to make the Loans  provided  to be made by it
hereunder,  regardless of the failure of any other Lender or Lenders to make its
or their Loans hereunder.

          1.08 Interest.  (a) Each Borrower agrees to pay interest in respect of
the unpaid  principal  amount of each Base Rate Loan  (including with respect to
any Euro Rate Loan  converted  into a Base Rate Loan  pursuant to Section  1.16)
made to such Borrower  hereunder from the date of Borrowing  thereof (or, in the
circumstances  described in the immediately  preceding  parenthetical,  from the
date of conversion of the respective Euro Rate Loan into a Base Rate Loan) until
the earlier of (i) the maturity  thereof  (whether by acceleration or otherwise)
and (ii) the conversion of such Base Rate Loan to a Eurodollar  Loan pursuant to
Section  1.06,  at a rate  per  annum  which  shall  be  equal to the sum of the
Applicable Margin plus the Base Rate each as in effect from time to time.

                                      -11-
<PAGE>

          (b) Each  Borrower  agrees to pay  interest  in  respect of the unpaid
principal  amount of each Euro Rate Loan made to such  Borrower from the date of
Borrowing  thereof  until the earlier of (i) the  maturity  thereof  (whether by
acceleration  or  otherwise)  and  (ii)  (A) in the case of  Dollar  Loans,  the
conversion of such Eurodollar Loan to a Base Rate Loan pursuant to Section 1.06,
1.09 or 1.10, as applicable,  or (B) in the case of an Alternate  Currency Loan,
the conversion of such  Alternate  Currency Loan to a Base Rate Loan pursuant to
Section  1.16,  at a rate per annum which  shall,  during each  Interest  Period
applicable  thereto,  be equal to the sum of the Applicable  Margin as in effect
from time to time during such Interest  Period plus the applicable Euro Rate for
such  Interest  Period  plus  (except  in the  case  of  Eurodollar  Loans)  the
Associated Costs Rate, if any.

          (c) Overdue  principal  and, to the extent  permitted by law,  overdue
interest in respect of each Loan and any other overdue amount payable  hereunder
or under any other Credit  Document shall, in each case, bear interest at a rate
per annum (i) in the case of overdue principal of, and interest or other overdue
amounts owing with respect to,  Alternate  Currency Loans under a given Tranche,
equal to 2% in  excess  of the rate  otherwise  applicable  to such  Tranche  of
Alternate  Currency  Loans  from  time  to  time,  (ii) in the  case of  overdue
principal  of, and interest on,  Dollar  Loans,  equal to the greater of (x) the
rate which is 2% in excess of the rate  otherwise  applicable to Base Rate Loans
maintained pursuant to the respective Tranche from time to time and (y) the rate
which is 2% in excess of the rate then borne by such Dollar Loans,  and (iii) in
the case of all other overdue  amounts payable under this Agreement or under any
other  Credit  Document,  equal to the rate  which is 2% in  excess  of the rate
applicable to Revolving  Loans  maintained as Base Rate Loans from time to time.
Interest that accrues under this Section 1.08(c) shall be payable on demand.

          (d) Accrued (and theretofore  unpaid) interest shall be payable (i) in
respect  of each Base Rate Loan,  (x)  quarterly  in  arrears on each  Quarterly
Payment  Date,  (y) on the date of any  repayment or  prepayment  in full of all
outstanding  Base Rate Loans of any  Tranche,  and (z) at  maturity  (whether by
acceleration  or otherwise)  and,  after such maturity,  on demand,  and (ii) in
respect  of each Euro Rate  Loan,  (x) on the last day of each  Interest  Period
applicable  thereto  and, in the case of an  Interest  Period in excess of three
months,  on each date occurring at three month  intervals after the first day of
such Interest Period, and (y) on the date of any repayment or prepayment (on the
amount repaid or prepaid),  at maturity  (whether by  acceleration or otherwise)
and, after such maturity, on demand.

          (e) Upon each Interest  Determination  Date, the Administrative  Agent
shall  determine  the  interest  rate for the Euro Rate  Loans  for  which  such
determination  is being made and shall promptly  notify the respective  Borrower
and the  respective  Lenders  thereof.  Each such  determination  shall,  absent
manifest error, be final and conclusive and binding on all parties hereto.

          1.09 Interest Periods.  At the time the respective  Borrower gives any
Notice of  Borrowing  or Notice of  Conversion/Continuation  in  respect  of the
making of, or  conversion  into,  a Borrowing of Euro Rate Loans (in the case of
the initial  Interest  Period  applicable  thereto) or prior to 1:00 P.M. (Local
Time) on the  third  Business  Day (or,  in the case of a Euro  Rate  Loan to be
converted  into, or maintained  as, a Euro Rate Loan with an Interest  Period of
other than a one, two,  three or six-month  period,  on the fifth  Business Day)
prior to the expiration of an Interest

                                      -12-
<PAGE>

Period  applicable  to such a  Borrowing  of Euro  Rate  Loans  (in the  case of
subsequent  Interest  Periods),  such Borrower shall have the right to elect, by
giving the  Administrative  Agent notice  thereof,  the interest period (each an
"Interest Period") applicable to such Borrowing, which Interest Period shall, at
the option of such  Borrower,  (x) be either a one, two,  three,  six or, to the
extent  available to all Lenders with  obligations  in respect of the respective
Tranche of Loans, twelve-month period or a seven-day period, and (y) in the case
of Alternate  Currency  Loans under a given  Tranche,  such other period of less
than one month to the extent approved by the Administrative  Agent and otherwise
available to all Lenders with  obligations in respect of such Tranche,  provided
that (in each case):

          (i) all Euro Rate Loans comprising a Borrowing shall at all times have
     the same Interest Period;

          (ii) the initial Interest Period for any Euro Rate Loan shall commence
     on the date of Borrowing of such Euro Rate Loan (including,  in the case of
     Eurodollar  Loans,  the date of any conversion  thereto from a Borrowing of
     Base Rate Loans) and each Interest Period  occurring  thereafter in respect
     of such  Eurodollar  Loan  shall  commence  on the day on  which  the  next
     preceding Interest Period applicable thereto expires;

          (iii) if any Interest  Period relating to a Euro Rate Loan begins on a
     day for which there is no  numerically  corresponding  day in the  calendar
     month at the end of such Interest Period, such Interest Period shall end on
     the last Business Day of such calendar month;

          (iv) if any  Interest  Period  for a Euro  Rate Loan  would  otherwise
     expire on a day which is not a Business  Day,  such  Interest  Period shall
     expire on the next succeeding Business Day; provided,  however, that if any
     Interest Period for a Euro Rate Loan would otherwise  expire on a day which
     is not a  Business  Day but is a day of the month  after  which no  further
     Business Day occurs in such month, such Interest Period shall expire on the
     next preceding Business Day;

          (v) unless the Required  Lenders  otherwise  agree, no Interest Period
     for a Eurodollar Loan may be selected at any time when a Specified  Default
     or an Event of Default is then in existence;

          (vi) unless the Required Lenders  otherwise agree, no Interest Period,
     other than a one month or less period,  for an Alternate  Currency Loan may
     be selected at any time when a Specified  Default or an Event of Default is
     then in existence;

          (vii)  except  for  Alternate  Currency  Incremental  Term  Loans,  no
     Interest  Period in respect of any  Borrowing  of any Tranche of Term Loans
     shall be  selected  which  extends  beyond any date upon which a  mandatory
     repayment  of such  Tranche of Term Loans will be required to be made under
     Section 4.02(b),  4.02(c) or 4.02(d),  as the case may be, if the aggregate
     principal  amount of such Tranche of Term Loans which have Interest Periods
     which  will  expire  after  such date  will be in  excess of the  aggregate
     principal  amount of such Tranche of Term Loans then  outstanding  less the
     aggregate amount of such required repayment; and

                                      -13-
<PAGE>

          (viii) no Interest  Period in respect of any  Borrowing of any Tranche
     of Loans shall be selected  which extends  beyond the  respective  Maturity
     Date for such Tranche of Loans.

          If, by 1:00 P.M.  (Local Time) on the third  Business Day prior to the
expiration of any Interest Period  applicable to a Borrowing of Euro Rate Loans,
the relevant  Borrower has failed to elect,  or is not permitted to elect, a new
Interest Period to be applicable to such Euro Rate Loans as provided above, such
Borrower shall be deemed to have elected (x) in the case of Eurodollar Loans, to
convert  such  Eurodollar  Loans  into Base Rate  Loans,  and (y) in the case of
Alternate  Currency  Loans,  to  select a one  month  Interest  Period  for such
Alternate  Currency  Loans,  with such new Interest Period to be effective as of
the expiration date of such current Interest Period.

          1.10  Increased  Costs,  Illegality,  etc.  (a) In the event  that any
Lender shall have determined (which  determination shall, absent manifest error,
be final and conclusive and binding upon all parties hereto but, with respect to
clauses (i) and (iv) below, may be made only by the Administrative Agent):

          (i) on any Interest  Determination Date that, by reason of any changes
     arising after the Effective Date affecting the applicable interbank market,
     adequate  and fair  means do not  exist  for  ascertaining  the  applicable
     interest rate on the basis provided for in the definition of Euro Rate;

          (ii) at any time,  that such  Lender  shall incur  increased  costs or
     reductions in the amounts received or receivable  hereunder with respect to
     any Euro Rate Loans  (other than in respect of Taxes to the extent  covered
     under Section 4.04(a))  because of any change since the Relevant  Effective
     Date  in  any  applicable  law or  governmental  rule,  regulation,  order,
     guideline  or  request  (whether  or not having the force of law) or in the
     interpretation or administration  thereof and including the introduction of
     any new law or governmental rule, regulation,  order, guideline or request,
     such as,  for  example,  but not  limited  to: (A) a change in the basis of
     taxation  of payment to any Lender of the  principal  of or interest on the
     Loans or any other  amounts  payable  hereunder  (except for changes in the
     rate of tax on,  or  determined  by  reference  to,  the net  income or net
     profits of such Lender pursuant to the laws of the jurisdiction in which it
     is organized or in which its principal office or applicable  lending office
     is  located or any  subdivision  thereof  or  therein),  or (B) a change in
     official reserve requirements,  but, in all events,  excluding (I) reserves
     required under  Regulation D to the extent  included in the  computation of
     the respective  Euro Rate and (II) amounts  included in the  computation of
     the Associated Costs Rate;

          (iii) at any time,  that the  making or  continuance  of any Euro Rate
     Loan has been made (x) unlawful by any law or governmental rule, regulation
     or order, (y) impossible by compliance by any Lender in good faith with any
     governmental  request  (whether  or not  having  the  force  of law) or (z)
     impracticable  as a result of a contingency  occurring  after the Effective
     Date which  materially  and  adversely  affects  the  applicable  interbank
     market; or

                                      -14-
<PAGE>

          (iv) at any time  that any  Alternate  Currency  is not  available  in
     sufficient  amounts,  as  determined  in good  faith by the  Administrative
     Agent;

then, and in any such event,  such Lender (or the  Administrative  Agent, in the
case of clause (i) or (iv) above)  shall on such date give notice (by  telephone
confirmed in writing) to the  respective  Borrowers  and,  except in the case of
clauses (i) and (iv) above, to the  Administrative  Agent of such  determination
(which notice the  Administrative  Agent shall promptly  transmit to each of the
other Lenders). Thereafter (w) in the case of clause (i) above, (A) in the event
that  Eurodollar  Loans are so  affected,  Eurodollar  Loans  shall no longer be
available  until such time as the  Administrative  Agent notifies the respective
Borrowers and the respective Lenders that the circumstances  giving rise to such
notice by the Administrative  Agent no longer exist, and any Notice of Borrowing
or Notice of  Conversion/Continuation  given by any  Borrower  with  respect  to
Eurodollar  Loans  which  have  not  yet  been  incurred  (including  by  way of
conversion)  shall be deemed  rescinded by such  Borrower,  and (B) in the event
that Alternate Currency Loans are so affected, the applicable Euro Rate shall be
determined (I) in the case of Alternate  Currency Loans denominated in a Primary
Alternate  Currency,  on the basis  provided in the proviso of the definition of
Primary  Alternate  Currency LIBOR,  and (II) in the case of Alternate  Currency
Incremental  Term  Loans  denominated  in an Other  Alternate  Currency,  by the
Administrative Agent as the all-in-cost of funds for the Administrative Agent to
fund the respective Alternate Currency Incremental Term Loan denominated in such
Other Alternate  Currency,  (x) in the case of clause (ii) above, the respective
Borrower  agrees,  subject to the  provisions  of  Section  12.18 (to the extent
applicable),  to  pay  to  such  Lender,  upon  written  demand  therefor,  such
additional  amounts (in the form of an increased rate of, or a different  method
of  calculating,  interest or  otherwise  as such Lender in its sole  discretion
shall  determine)  as shall be  required  to  compensate  such  Lender  for such
increased  costs or  reductions in amounts  received or  receivable  hereunder a
written notice in reasonable  detail as to the  additional  amounts owed to such
Lender,  showing  the  basis  for  the  calculation  thereof,  submitted  to the
respective  Borrower by such Lender in good faith shall,  absent manifest error,
be final and  conclusive  and binding upon all the parties  hereto),  (y) in the
case of clause (iii) above, take one of the actions specified in Section 1.10(b)
as promptly as possible  and, in any event,  within the time period  required by
law,  and  (z) in the  case of  clause  (iv)  above,  Alternate  Currency  Loans
denominated in the affected  Currency  (other than any such  Alternate  Currency
Loans which have  theretofore  been funded)  shall no longer be available  until
such time as the Administrative  Agent notifies the respective  Borrower and the
Lenders of the  relevant  Tranche  that the  circumstances  giving  rise to such
notice by the Administrative  Agent no longer exist, and any Notice of Borrowing
given by the respective  Borrower with respect to such Alternate  Currency Loans
which have not yet been  incurred  shall be deemed  rescinded by the  respective
Borrower.

          (b)  At  any  time  that  any  Euro  Rate  Loan  is  affected  by  the
circumstances described in Section 1.10(a)(ii) or (iii), the respective Borrower
may  (and  in  the  case  of a Euro  Rate  Loan  affected  pursuant  to  Section
1.10(a)(iii) the respective Borrower shall) either (i) if the affected Euro Rate
Loan is then being made  initially  or  pursuant  to a  conversion,  cancel such
Borrowing by giving the  Administrative  Agent telephonic  notice  (confirmed in
writing)  thereof  on the same date  that  such  Borrower  was  notified  by the
affected Lender or the Administrative  Agent pursuant to Section  1.10(a)(ii) or
(iii), or (ii) if the affected Euro Rate Loan is then outstanding, upon at least
three Business Days' written notice to the Administrative Agent, (A) in the case
of any  Eurodollar  Loan,  require  the  affected  Lender to  convert  each such
Eurodollar

                                      -15-
<PAGE>

Loan into a Base Rate Loan, and (B) in the case of any Alternate  Currency Loan,
require  the  applicable  Euro Rate to be  determined  on the basis  provided in
clause (w)(B) of the second sentence of Section  1.10(a);  provided that if more
than one Lender is  affected  at any time,  then all  affected  Lenders  must be
treated the same pursuant to this Section 1.10(b).

          (c) If at any time  after  the  Relevant  Effective  Date  any  Lender
determines  that the  introduction  of or any  change in any  applicable  law or
governmental rule, regulation,  order, guideline,  directive or request (whether
or not  having  the  force  of law  and  including,  without  limitation,  those
announced or published prior to the Relevant  Effective Date) concerning capital
adequacy, or any change in interpretation or administration  thereof by the NAIC
or any governmental authority,  central bank or comparable agency, will have the
effect of increasing the amount of capital required or expected to be maintained
by such Lender or any corporation controlling such Lender based on the existence
of such Lender's Commitments  hereunder or its obligations  hereunder,  then the
respective  Borrower or Borrowers  agree,  subject to the  provisions of Section
12.18 (to the extent applicable),  to pay to any such Lender, upon such Lender's
written  demand  therefor,  such  additional  amounts  as shall be  required  to
compensate such Lender or such other  corporation for the increased cost to such
Lender or such other  corporation or the reduction in the rate of return to such
Lender or such other  corporation  as a result of such  increase of capital.  In
determining such additional amounts, each Lender will act reasonably and in good
faith and will use  averaging  and  attribution  methods  which are  reasonable;
provided  that such  Lender's  determination  of  compensation  owing under this
Section  1.10(c)  shall,  absent  manifest  error,  be final and  conclusive and
binding on all parties hereto. Each Lender, upon determining that any additional
amounts  will be payable  pursuant  to this  Section  1.10(c),  will give prompt
written notice thereof to the respective  Borrowers,  which notice shall show in
reasonable detail the basis for calculation of such additional amounts, although
the  failure to give any such notice  shall not  release or diminish  any of the
respective  Borrowers'  obligations to pay additional  amounts  pursuant to this
Section 1.10(c).

          (d)  In the  event  that  any  Lender  shall  have  determined  (which
determination  shall, absent manifest error, be final and conclusive and binding
on all  parties  hereto) at any time that such  Lender is  required  to maintain
reserves (including, without limitation, any marginal, emergency,  supplemental,
special  or  other  reserves   required  by  applicable  law)  which  have  been
established after the Relevant  Effective Date by any Federal,  state,  local or
foreign court or governmental agency,  authority,  instrumentality or regulatory
body with  jurisdiction  over such Lender  (including  any branch,  Affiliate or
funding  office  thereof)  in  respect  of any  Alternate  Currency  Loan or any
category  of  liabilities  which  includes  deposits by  reference  to which the
interest  rate on any  Alternate  Currency Loan is determined or any category of
extensions of credit or other assets which includes loans by a non-United States
office of any Lender to  non-United  States  residents in each case by reason of
any  change  since  the  Relevant  Effective  Date  in  any  applicable  law  or
governmental rule, regulation order, guideline or request (whether or not having
the force of law) or any change in the interpretation or administration  thereof
by the NAIC or any governmental  authority,  central bank or comparable  agency,
then,  unless such  reserves  already are  included  in the  calculation  of the
interest  rate  applicable  to  such  Alternate  Currency  Loans  or in  Section
1.10(a)(ii),  such  Lender  shall  promptly  notify the  applicable  Borrower in
writing  specifying  the  additional  amounts  required to indemnify such Lender
against the cost of maintaining such reserves (such written notice to provide in
reasonable  detail a computation of such  additional  amounts) and such Borrower
agrees, subject to the provisions of

                                      -16-
<PAGE>

Section 12.18 (to the extent  applicable),  to pay to such Lender such specified
amounts on written demand therefor by such Lender.

          1.11 Compensation.  Each Borrower agrees, subject to the provisions of
Section 12.18 (to the extent  applicable),  to compensate each Lender, upon such
Lender's  written  request  (which request shall be made in good faith and shall
set forth in reasonable detail the basis for requesting such compensation),  for
all losses, expenses and liabilities (including,  without limitation,  any loss,
expense or liability  incurred by reason of the  liquidation or  reemployment of
deposits  or other  funds  required  by such Lender to fund its Euro Rate Loans)
which such Lender may  sustain:  (i) if for any reason  (other than a default by
such Lender or the  Administrative  Agent) a Borrowing of, or conversion from or
into, Euro Rate Loans does not occur on a date specified therefor in a Notice of
Borrowing or Notice of  Conversion/Continuation  given by such Borrower (whether
or not  withdrawn by the  respective  Borrower or deemed  withdrawn  pursuant to
Section 1.10(a));  (ii) if any prepayment or repayment (including any prepayment
or  repayment  made  pursuant  to  Section  4.01 or 4.02  or as a  result  of an
acceleration  of Loans  pursuant  to  Section  9) or  conversion  of any of such
Borrower's  Euro Rate  Loans  occurs  on a date  which is not the last day of an
Interest  Period with respect  thereto;  (iii) if any  prepayment of any of such
Borrower's  Euro  Rate  Loans is not made on any date  specified  in a notice of
prepayment  given by such Borrower  (whether or not withdrawn by the  respective
Borrower pursuant to Section 4.01(a)); or (iv) as a consequence of (x) any other
default by such  Borrower to repay its Loans when  required by the terms of this
Agreement or the respective Notes or (y) an election made, or action required to
be taken, by such Borrower pursuant to Section 1.10(b).

          1.12 Change of  Applicable  Lending  Office.  Each Lender agrees that,
upon the  occurrence  of any  event  giving  rise to the  operation  of  Section
1.l0(a)(ii) or (iii), Section 1.10(c), Section 2.06 or Section 4.04 with respect
to such Lender, it will, if requested by the applicable Borrower, use reasonable
efforts (subject to overall policy  considerations  of such Lender) to designate
another lending office for any Loans or Letters of Credit affected by such event
(including by  designating a separate  lending  office (or  Affiliate) to act as
such with respect to such  affected  Loans or Letters of Credit);  provided that
such  designation  is made on such terms that such Lender and its lending office
suffer  no  economic,  legal or  regulatory  disadvantage,  with the  object  of
avoiding the  consequence  of the event giving rise to the operation of any such
Section.  Nothing in this  Section  1.12  shall  affect or  postpone  any of the
obligations  of any  Borrower  or the right of any Lender  provided  in Sections
1.10, 2.06 and 4.04.

          1.13  Replacement  of Lenders.  (x) Upon the  occurrence  of any event
giving rise to the operation of Section  1.10(a)(ii) or (iii),  Section 1.10(c),
Section 2.06 or Section  4.04 with  respect to any Lender which  results in such
Lender  charging  to any  Borrower  increased  costs in  excess  of those  being
generally  charged  by the  other  Lenders,  (y) if any  Lender  (A)  becomes  a
Defaulting Lender or otherwise defaults in its obligations to make Loans or fund
Unpaid  Drawings  or (B)  refuses  to  consent  to a  proposed  change,  waiver,
discharge or termination with respect to any of the matters set forth in clauses
(i) through (vii), inclusive, of the first proviso in Section 12.12(a) which has
been approved by the Required  Lenders or (z) if any Revolving  Lender is unable
to obtain the necessary  governmental  approvals and/or licenses  required to be
obtained  by such  Revolving  Lender  pursuant  to  Section  5.04(b)(i)(y),  the
Borrowers  shall have the right  (subject,  in the case of preceding  sub-clause
(y)(B),  to the  requirements  of Section  12.12(b)),  if no Default or Event of
Default will exist immediately after giving effect to the

                                      -17-
<PAGE>

respective replacement,  to replace such Lender (the "Replaced Lender") with one
or more other Eligible Transferee or Transferees (collectively, the "Replacement
Lender") none of whom shall  constitute a Defaulting  Lender at the time of such
replacement   and  each  of  whom  shall  be   reasonably   acceptable   to  the
Administrative Agent, provided that:

          (i) at the time of any replacement  pursuant to this Section 1.13, the
     Replacement  Lender shall enter into one or more  Assignment and Assumption
     Agreements pursuant to Section 12.04(b) (and with all fees payable pursuant
     to said Section 12.04(b) to be paid by the Replacement  Lender) pursuant to
     which the  Replacement  Lender  shall  acquire all of the  Commitments  and
     outstanding  Loans  (or,  in the  case of the  replacement  of only (a) the
     Revolving Loan  Commitment,  the Revolving Loan  Commitment and outstanding
     Revolving Loans and  participations in Letters of Credit, (b) A Term Loans,
     the  outstanding  A Term Loans,  (c) B Term Loans,  the  outstanding B Term
     Loans  and (d)  Incremental  Term  Loans  under a given  Tranche,  the then
     remaining Incremental Term Loan Commitment and the outstanding  Incremental
     Term  Loans  under  such  Tranche)  of,  and in each case  (except  for the
     replacement  of only  outstanding  Term  Loans  of the  respective  Lender)
     participations  in  Letters  of Credit  by, the  Replaced  Lender  and,  in
     connection  therewith,  shall pay to (x) the  Replaced  Lender  in  respect
     thereof an amount equal to the sum of (A) an amount equal to the  principal
     of, and all accrued and unpaid interest on, all  outstanding  Loans (or, in
     the case of the replacement of only (I) the Revolving Loan Commitment,  the
     outstanding  Revolving Loans, (II) the A Term Loans, the outstanding A Term
     Loans,  (III) the B Term Loans,  the  outstanding B Term Loans, or (IV) the
     Incremental  Term Loan Commitments and Incremental Term Loans under a given
     Tranche,  the  outstanding  Incremental  Term Loans of such Tranche) of the
     Replaced  Lender,  (B)  except  in the  case  of the  replacement  of  only
     outstanding Term Loans of a Replaced Lender,  an amount equal to all Unpaid
     Drawings  that have been funded by (and not  reimbursed  to) such  Replaced
     Lender,  together  with all then accrued and unpaid  interest  with respect
     thereto at such time and (C) an amount equal to all accrued and unpaid Fees
     owing to the  Replaced  Lender  (but  only  with  respect  to the  relevant
     Tranche,  in the case of the replacement of less than all Tranches of Loans
     then held by the respective  Replaced Lender) pursuant to Section 3.01, (y)
     except in the case of the replacement of only  outstanding  Term Loans of a
     Replaced  Lender,  each  Issuing  Lender an amount  equal to such  Replaced
     Lender's RL  Percentage  of any Unpaid  Drawing with respect to a Letter of
     Credit issued by such Issuing  Lender (which at such time remains an Unpaid
     Drawing)  and  (z) in  the  case  of  any  replacement  of  Revolving  Loan
     Commitments, the Swingline Lender an amount equal to such Replaced Lender's
     RL Percentage of any Mandatory  Borrowing to the extent such amount was not
     theretofore funded by such Replaced Lender;

          (ii) all obligations (including,  without limitation,  all obligations
     under Section 1.11) of the respective  Borrowers then owing to the Replaced
     Lender  (other  than those  specifically  described  in clause (i) above in
     respect of which the assignment purchase price has been, or is concurrently
     being,  paid) shall be paid in full to such  Replaced  Lender  concurrently
     with such replacement; and

          (iii) in the case of any  replacement of a Lender made solely pursuant
     to sub-clause (z) of the introductory  paragraph of this Section 1.13, such
     replacement shall only

                                      -18-
<PAGE>

     be made in respect of such Lender's  Revolving Loan  Commitment and related
     Obligations as contemplated in preceding clause (i) above.

Upon the execution of the respective Assignment and Assumption  Agreements,  the
payment of all  amounts  referred  to in clauses  (i) and (ii) above and,  if so
requested by the Replacement  Lender,  delivery to the Replacement Lender of the
appropriate Note or Notes executed by the appropriate Borrower or Borrowers, the
Replacement Lender shall become a Lender hereunder and the Replaced Lender shall
cease to constitute a Lender hereunder,  except with respect to  indemnification
provisions under this Agreement (including,  without limitation,  Sections 1.10,
1.11,  2.06,  4.04,  12.01 and 12.06),  which shall  survive as to such Replaced
Lender.

          1.14 Incremental Term Loan Commitments. (a) So long as the Incremental
Loan Commitment  Request  Requirements are satisfied at the time of the delivery
of the request  referred to below,  Silgan shall have the right, in consultation
and  coordination  with the  Administrative  Agent as to all of the  matters set
forth below in this Section  1.14,  but without  requiring the consent of any of
the Agents  (except as otherwise  provided in this Section 1.14) or the Lenders,
to request at any time and from time to time after the  Initial  Borrowing  Date
and prior to the  Incremental  Commitment  Termination  Date for the  respective
Tranche of Incremental  Term Loans that one or more Lenders  (and/or one or more
other Persons which are Eligible  Transferees which will become Lenders) provide
to the Incremental Term Loan Borrower for the respective  Tranche of Incremental
Term Loan Commitments under such Tranche of Incremental Term Loans as designated
in the respective Incremental Term Loan Commitment Agreement and, subject to the
terms  and  conditions  contained  in  this  Agreement  and  in  the  respective
Incremental Term Loan Commitment Agreement, make Incremental Term Loans pursuant
thereto;  provided  that  (i)  no  Lender  shall  be  obligated  to  provide  an
Incremental  Term Loan  Commitment,  and until such time, if any, as such Lender
has agreed in its sole discretion to provide an Incremental Term Loan Commitment
and executed and delivered to Silgan,  the respective  Foreign  Incremental Term
Loan Borrower (if applicable) and the  Administrative  Agent an Incremental Term
Loan  Commitment  Agreement as provided in clause (b) of this Section 1.14, such
Lender  shall not be  obligated  to fund any  Incremental  Term Loans,  (ii) any
Lender  (including  any  Eligible  Transferee  who will  become a Lender) may so
provide  an  Incremental  Term  Loan  Commitment  without  the  consent  of  the
Administrative Agent or any other Lender, (iii) each Tranche of Incremental Term
Loan  Commitments  shall be made  available  to a single  Incremental  Term Loan
Borrower and shall be denominated in a single  Currency which, in the case of an
Other Alternate  Currency,  shall be approved by the Administrative  Agent, (iv)
the amount of each Tranche of Incremental  Term Loan  Commitments  shall be in a
minimum  aggregate amount for all Lenders which provide an Incremental Term Loan
Commitment  under such Tranche of  Incremental  Term Loans  (including  Eligible
Transferees  who will  become  Lenders) of at least  $50,000,000  (or the Dollar
Equivalent  thereof  as  determined  at the  time  that  Incremental  Term  Loan
Commitments are obtained), (v) the aggregate amount of all Incremental Term Loan
Commitments  permitted  to be  provided  pursuant  to this  Section  1.14,  when
combined with the aggregate  amount of Incremental  Revolving  Loan  Commitments
permitted to be provided pursuant to Section 1.15, shall not exceed $350,000,000
in the  aggregate  (or the Dollar  Equivalent  thereof as determined at the time
that such  Incremental  Term Loan Commitments are obtained) (it being understood
and  agreed,  however,  to the  extent  that  any  such  Incremental  Term  Loan
Commitments are obtained but later expire,  terminate or are voluntarily reduced
in each case without being utilized, the amount of such Incremental Term

                                      -19-
<PAGE>

Loan  Commitments  so expired,  terminated or  voluntarily  reduced may again be
available  to be obtained  under this  Section  1.14 within the limits set forth
herein),  (vi) the up-front fees and, if applicable,  any unutilized  commitment
fees  and/or  other  fees,  payable  in respect  of each  Incremental  Term Loan
Commitment  shall be  separately  agreed to by Silgan,  the  respective  Foreign
Incremental  Term Loan Borrower (if applicable) and each  Incremental  Term Loan
Lender (and with all such fees to be disclosed  by Silgan to the  Administrative
Agent),  (vii)  each  Tranche  of  Incremental  Term  Loans  shall  have  (I) an
Incremental  Term Loan Maturity Date of no earlier than the B Term Loan Maturity
Date and (II) a Weighted  Average  Life to Maturity of no less than the Weighted
Average  Life to  Maturity  as then in effect for the B Term  Loans,  (viii) the
proceeds  of all  Incremental  Term  Loans  shall be used only for the  purposes
permitted by Section 6.10, (ix) each Incremental Term Loan Commitment  Agreement
shall specifically designate, with the approval of the Administrative Agent, the
Tranche of the  Incremental  Term Loan  Commitments  being  provided  thereunder
(which  Tranche  shall be a new  Tranche  (i.e.,  not the  same as any  existing
Tranche of Incremental  Term Loans,  Incremental  Term Loan Commitments or other
Term Loans) unless the  requirements of Section 1.14(c) are satisfied),  (x) all
Incremental  Term  Loans  (and all  interest,  fees and  other  amounts  payable
thereon)  (including,  without limitation,  Incremental Term Loans incurred by a
Foreign  Incremental  Term  Loan  Borrower)  shall  be  Obligations  under  this
Agreement and the other applicable  Credit Documents and shall be secured by the
US Collateral, and guaranteed under the US Borrowers/Subsidiaries Guaranty, on a
pari passu basis with all other Term Loans, (xi) all Incremental Term Loans (and
all interest,  fees and other  amounts  payable  thereon)  incurred by a Foreign
Incremental  Term Loan  Borrower  also shall be secured  and  guaranteed  to the
extent  required  by Section  5.04(b),  and (xii)  each  Lender  (including  any
Eligible Transferee who will become a Lender) agreeing to provide an Incremental
Term Loan Commitment  pursuant to an Incremental Term Loan Commitment  Agreement
shall,  subject to the satisfaction of the relevant conditions set forth in this
Agreement,  make  Incremental  Term Loans  under the Tranche  specified  in such
Incremental  Term Loan  Commitment  Agreement as provided in Section 1.01(c) and
such Loans shall  thereafter be deemed to be  Incremental  Term Loans under such
Tranche  for all  purposes of this  Agreement  and the other  applicable  Credit
Documents.

          (b) At the time of the provision of Incremental  Term Loan Commitments
pursuant to this Section 1.14, Silgan,  the respective Foreign  Incremental Term
Loan Borrower (if applicable), each other Credit Party, the Administrative Agent
and each such Lender or other  Eligible  Transferee  which  agrees to provide an
Incremental Term Loan Commitment (each, an "Incremental Term Loan Lender") shall
execute and deliver to Silgan,  the  respective  Foreign  Incremental  Term Loan
Borrower (if applicable) and the  Administrative  Agent an Incremental Term Loan
Commitment  Agreement,  appropriately  completed (with the  effectiveness of the
Incremental Term Loan Commitment provided therein to occur on the date set forth
in such  Incremental  Term Loan  Commitment  Agreement,  which date in any event
shall be no earlier  than the date on which (i) all fees  required to be paid in
connection  therewith  at the time of such  effectiveness  shall have been paid,
(ii) all Incremental Commitment Effectiveness  Requirements have been satisfied,
(iii) all  conditions  set forth in this Section 1.14 shall have been  satisfied
and  (iv)  all  other  conditions  precedent  that  may be  set  forth  in  such
Incremental  Term Loan  Commitment  Agreement  shall have been  satisfied).  The
Administrative  Agent shall promptly notify each Lender as to the  effectiveness
of each Incremental Term Loan Commitment Agreement and, at such time, Schedule I
shall be deemed  modified to reflect the  Incremental  Term Loan  Commitments of
such Incremental Term Loan Lenders.

                                      -20-
<PAGE>

          (c)  Notwithstanding  anything to the contrary contained above in this
Section 1.14, the Incremental Term Loan  Commitments  provided by an Incremental
Term Loan Lender or Incremental Term Loan Lenders,  as the case may be, pursuant
to each  Incremental  Term Loan  Commitment  Agreement  shall  constitute  a new
Tranche,  which  shall be  separate  and  distinct  from the  existing  Tranches
pursuant  to this  Agreement  (with a  designation  which may be made in letters
(i.e., A, B, C, etc.),  numbers (1, 2, 3, etc.) or a combination  thereof (i.e.,
A-1, A-2, B-1, B-2, C-1,  C-2,  etc.),  provided  that,  with the consent of the
Administrative  Agent,  the parties to a given  Incremental Term Loan Commitment
Agreement may specify  therein that the respective  Incremental  Term Loans made
pursuant  thereto shall constitute part of, and be added to, an existing Tranche
of  Incremental  Term Loans or to the  outstanding  Tranche of B Term Loans,  in
either case so long as the following requirements are satisfied:

          (i) the Incremental Term Loans to be made pursuant to such Incremental
     Term Loan  Commitment  Agreement  shall  have the same  Borrower,  shall be
     denominated  in the same  Currency,  shall have the same  Maturity Date and
     shall  have the same  Applicable  Margins  as the  Tranche of Term Loans to
     which the new Incremental Term Loans are being added;

          (ii) the new  Incremental  Term  Loans  shall  have the same Term Loan
     Scheduled  Repayment  dates as then remain  with  respect to the Tranche to
     which such new  Incremental  Term Loans are being added (with the amount of
     each Term Loan Scheduled Repayment  applicable to such new Incremental Term
     Loans  to  be  the  same  (on a  proportionate  basis)  as  is  theretofore
     applicable  to the  Tranche  to which such new  Incremental  Term Loans are
     being added, thereby increasing the amount of each then remaining Term Loan
     Scheduled Repayment of the respective Tranche proportionately; and

          (iii) on the date of the making of such new  Incremental  Term  Loans,
     and  notwithstanding  anything to the contrary  set forth in Section  1.09,
     such new  Incremental  Term Loans shall be added to (and form part of) each
     Borrowing of outstanding Term Loans of the respective Tranche on a pro rata
     basis (based on the relative sizes of the various outstanding  Borrowings),
     so  that  each  Lender  will  participate   proportionately  in  each  then
     outstanding  Borrowing of Term Loans of the respective Tranche, and so that
     the existing Lenders with respect to such Tranche continue to have the same
     participation  (by amount) in each  Borrowing as they had before the making
     of the new Term Loans of such Tranche.

          To the extent the  provisions  of preceding  clause (iii) require that
Lenders making new Incremental Term Loans add such Incremental Term Loans to the
then  outstanding  Borrowings  of  Euro  Rate  Loans  of  such  Tranche,  it  is
acknowledged  that the effect  thereof may result in such new  Incremental  Term
Loans having short Interest  Periods (i.e., an Interest Period that began during
an  Interest  Period  then  applicable  to  outstanding  Euro Rate Loans of such
Tranche  and  which  will  end on the  last  day of such  Interest  Period).  In
connection therewith,  the respective  Incremental Term Loan Borrower may agree,
in the respective Incremental Term Loan Commitment Agreement,  to compensate the
Lenders  making the new  Incremental  Term Loans of the  respective  Tranche for
funding Euro Rate Loans during an existing Interest Period

                                      -21-
<PAGE>

on such basis as may be agreed by such  Incremental  Term Loan  Borrower and the
respective Lender or Lenders.

          1.15  Incremental  Revolving  Loan  Commitments.  (a) So  long  as the
Incremental  Loan Commitment  Request  Requirements are satisfied at the time of
the delivery of the request  referred to below,  Silgan shall have the right, in
consultation and  coordination  with the  Administrative  Agent as to all of the
matters set forth below in this Section 1.15, but without  requiring the consent
of any of the Agents (except as otherwise  provided in this Section 1.15) or the
Lenders,  to  request  at any time  and  from  time to time  after  the  Initial
Borrowing Date and prior to the Incremental Commitment Termination Date that one
or more Lenders (and/or one or more other Persons which are Eligible Transferees
and which will become  Revolving  Lenders)  provide  Incremental  Revolving Loan
Commitments  and,  subject to the applicable  terms and conditions  contained in
this  Agreement,  make Revolving  Loans and participate in Letters of Credit and
Swingline Loans pursuant thereto; provided that (i) no Lender shall be obligated
to provide an  Incremental  Revolving Loan  Commitment,  and until such time, if
any, as such Lender has agreed in its sole  discretion to provide an Incremental
Revolving  Loan  Commitment  and  executed and  delivered to the  Administrative
Agent,  Silgan  and  the  Revolving  Borrowers  an  Incremental  Revolving  Loan
Commitment Agreement as provided in clause (b) of this Section 1.15, such Lender
shall not be obligated to fund any  Revolving  Loans in excess of its  Revolving
Loan  Commitment  (if any) or  participate in any Letters of Credit or Swingline
Loans in excess of its RL Percentage, in each case, as in effect prior to giving
effect to such Incremental  Revolving Loan Commitment  provided pursuant to this
Section  1.15,  (ii) any  Lender  (including  any  Person  which is an  Eligible
Transferee  who will  become a Revolving  Lender) may so provide an  Incremental
Revolving Loan Commitment  without the consent of any Agent or any other Lender;
provided  that  any  Person  that  is  not  a  Revolving  Lender  prior  to  the
effectiveness  of its Incremental  Revolving Loan  Commitment  shall require the
consent of the  Administrative  Agent (which  consent shall not be  unreasonably
withheld  or  delayed)  to  provide an  Incremental  Revolving  Loan  Commitment
pursuant to this Section 1.15,  (iii) the aggregate  amount of each request (and
provision  therefor) for Incremental  Revolving Loan  Commitments  shall be in a
minimum aggregate amount for all Lenders which provide an Incremental  Revolving
Loan  Commitment  pursuant  to a given  Incremental  Revolving  Loan  Commitment
Agreement  pursuant to this  Section  1.15  (including  Persons who are Eligible
Transferees and will become Revolving Lenders) of at least $50,000,000, (iv) the
aggregate amount of all Incremental  Revolving Loan Commitments  permitted to be
provided  pursuant to this  Section 1.15 shall not exceed in the  aggregate  the
lesser of (A)  $150,000,000  and (B) when combined with the aggregate  amount of
all  Incremental  Term Loan  Commitments  permitted  to be provided  pursuant to
Section 1.14, $350,000,000 (for this purpose, using the Dollar Equivalent of any
Incremental Term Loan Commitments  provided in an Alternate  Currency),  (v) all
Loans incurred  pursuant to an Incremental  Revolving Loan  Commitment  (and all
interest,   fees  and  other  amounts  payable  thereon)   (including,   without
limitation, such Revolving Loans incurred by a Foreign Revolving Borrower) shall
be Obligations  under this Agreement and the other  applicable  Credit Documents
and  shall  be  secured  by the  US  Collateral,  and  guaranteed  under  the US
Borrowers/Subsidiaries  Guaranty, on a pari passu basis with all other Revolving
Loans,  (vi) all Revolving Loans incurred  pursuant to an Incremental  Revolving
Loan  Commitment  (and all  interest,  fees and other amounts  payable  thereon)
incurred by a Foreign Revolving Borrower also shall be secured and guaranteed to
the extent  required by Section  5.04(b),  and (vii) each Lender  (including any
Person  which is an Eligible  Transferee  who will  become a  Revolving  Lender)
agreeing to

                                      -22-
<PAGE>

provide an  Incremental  Revolving  Loan  Commitment  pursuant to an Incremental
Revolving Loan Commitment  Agreement  shall,  subject to the satisfaction of the
relevant conditions set forth in this Agreement,  participate in Swingline Loans
and Letters of Credit pursuant to Sections 1.01(f) and 2.04,  respectively,  and
make Revolving  Loans as provided in Section  1.01(d) and such  Revolving  Loans
shall  constitute  Revolving  Loans for all purposes of this  Agreement  and the
other applicable Credit Documents.

          (b) At the  time  of  the  provision  of  Incremental  Revolving  Loan
Commitments pursuant to this Section 1.15, Silgan, each Revolving Borrower, each
other  Credit  Party,  the  Administrative  Agent and each such  Lender or other
Eligible  Transferee  which  agrees to provide  an  Incremental  Revolving  Loan
Commitment (each, an "Incremental  Revolving  Lender") shall execute and deliver
to Silgan,  each Revolving Borrower and the Administrative  Agent an Incremental
Revolving  Loan  Commitment   Agreement,   appropriately   completed  (with  the
effectiveness of the Incremental  Revolving Loan Commitment  provided therein to
occur on the  date  set  forth in such  Incremental  Revolving  Loan  Commitment
Agreement,  which date in any event  shall be no earlier  than the date on which
(i) all fees  required to be paid in  connection  therewith  at the time of such
effectiveness   shall  have  been   paid,   (ii)  all   Incremental   Commitment
Effectiveness  Requirements have been satisfied,  (iii) all conditions set forth
in this Section  1.15 shall have been  satisfied  and (iv) all other  conditions
precedent that may be set forth in such  Incremental  Revolving Loan  Commitment
Agreement shall have been satisfied).  The  Administrative  Agent shall promptly
notify each Lender as to the  effectiveness of each  Incremental  Revolving Loan
Commitment  Agreement and, at such time,  Schedule I shall be deemed modified to
reflect the Incremental Revolving Loan Commitments of such Incremental Revolving
Lenders.

          (c) It is understood  and agreed that the  Incremental  Revolving Loan
Commitments provided by an Incremental Revolving Lender or Incremental Revolving
Lenders,  as the  case  may be,  pursuant  to each  Incremental  Revolving  Loan
Commitment  Agreement  shall  constitute  part of,  and be added  to,  the Total
Revolving Loan Commitment and each Incremental Revolving Lender shall constitute
a Revolving  Lender for all purposes of this Agreement and each other applicable
Credit Document.

          (d) At the  time  of  any  provision  of  Incremental  Revolving  Loan
Commitments  pursuant to this Section 1.15,  each Revolving  Borrower  shall, in
coordination with the Administrative Agent, repay outstanding Revolving Loans of
certain of the Revolving  Lenders,  and incur  additional  Revolving  Loans from
certain other Revolving Lenders (including the Incremental  Revolving  Lenders),
in each  case to the  extent  necessary  so that  all of the  Revolving  Lenders
participate  in each  outstanding  Borrowing of Revolving  Loans pro rata on the
basis of their respective Revolving Loan Commitments (after giving effect to any
increase in the Total Revolving Loan  Commitment  pursuant to this Section 1.15)
and  with the  Revolving  Borrowers  being  obligated  to pay to the  respective
Revolving  Lenders  any  costs  of the  type  referred  to in  Section  1.11  in
connection with any such repayment and/or Borrowing.

          1.16 Special Sharing and Conversion  Provisions  Applicable to Lenders
Upon the Occurrence of a Sharing  Event.  (a) On the date of the occurrence of a
Sharing Event, automatically (and without the taking of any action) (x) all then
outstanding  Alternate Currency  Incremental Term Loans of a given Tranche shall
be converted into Alternate Currency

                                      -23-
<PAGE>

Incremental  Term Loans of such Tranche  which are  maintained in Dollars (in an
amount equal to the Dollar  Equivalent of the aggregate  principal amount of the
respective  Alternate  Currency  Incremental Term Loans on the date such Sharing
Event first occurred), which Alternate Currency Incremental Term Loans (i) shall
continue to be owed by the  respective  Incremental  Term Loan  Borrowers,  (ii)
shall at all times thereafter be deemed to be Base Rate Loans and (iii) shall be
immediately due and payable on the date such Sharing Event has occurred, and (y)
all principal,  accrued and unpaid interest and other amounts owing with respect
to such Alternate  Currency  Incremental Term Loans shall be immediately due and
payable  in  Dollars  (in an  amount  equal  to the  Dollar  Equivalent  of such
principal, accrued and unpaid interest and other amounts). The occurrence of any
conversion of Alternate  Currency  Incremental  Term Loans as provided  above in
this  Section  1.16(a)  shall be deemed to  constitute,  for purposes of Section
1.11, a prepayment of the respective  Alternate Currency  Incremental Term Loans
before the last day of any Interest Period relating thereto.

          (b) On the date of the  occurrence of a Sharing  Event,  automatically
(and  without  the  taking  of any  action)  (x) all  then  outstanding  Primary
Alternate  Currency  Revolving  Loans  and  Primary  Alternate  Currency  Unpaid
Drawings shall be converted into Revolving Loans which are maintained in Dollars
and  Dollar  Unpaid  Drawings  (in each case,  in an amount  equal to the Dollar
Equivalent of the aggregate principal amount of the respective Primary Alternate
Currency  Revolving  Loans and the  aggregate  amount of such Primary  Alternate
Currency  Unpaid  Drawings,  as the case may be, on the date such Sharing  Event
first occurred),  which Primary Alternate  Currency  Revolving Loans and Primary
Alternate  Currency  Unpaid  Drawings  (i)  shall  continue  to be  owed  by the
respective  Revolving  Borrowers,  (ii)  shall,  in the  case  of  such  Primary
Alternate Currency Revolving Loans, at all times thereafter be deemed to be Base
Rate  Loans and (iii)  shall be  immediately  due and  payable  on the date such
Sharing Event has occurred, and (y) all principal,  accrued and unpaid interest,
fees and other  amounts  owing with respect to such Primary  Alternate  Currency
Revolving Loans,  Primary Alternate Currency Unpaid Drawings,  Primary Alternate
Currency  Letters of Credit shall be immediately  due and payable in Dollars (in
an amount equal to the Dollar  Equivalent of such principal,  accrued and unpaid
interest,  fees and other amounts).  The occurrence of any conversion of Primary
Alternate  Currency  Revolving  Loans as provided above in this Section  1.16(b)
shall be deemed to constitute, for purposes of Section 1.11, a prepayment of the
respective Primary Alternate Currency Revolving Loans before the last day of any
Interest Period relating thereto.

          (c) Upon the  occurrence of a Sharing  Event,  and  immediately  after
giving effect to any automatic  conversion  pursuant to Sections  1.16(a) and/or
(b), the Lenders shall  automatically  and without  further  action be deemed to
have exchanged interests in the respective Tranches of Loans (including,  in the
case of the Total  Revolving  Loan  Commitment,  interests  in each  outstanding
Letter of Credit and Unpaid Drawing) such that, in lieu of the interests of each
Lender in each  Tranche in which it  participated  as of such date,  such Lender
shall hold an  interest  in all  Tranches  (including,  in the case of the Total
Revolving Loan  Commitment,  an interest in each  outstanding  Letter of Credit,
each Unpaid Drawing and each LC Reserve Account established  pursuant to Section
1.16(h)), whether or not such Lender shall previously have participated therein,
equal to such Lender's  Exchange  Percentage  thereof.  The foregoing  exchanges
shall be accomplished  through the purchases and sales of  participations in the
relevant  Tranches  and  each  Lender  hereby  agrees  to enter  into  customary
participation  agreements  approved by the  Administrative  Agent to  accomplish
same. All purchases and sales of

                                      -24-
<PAGE>

participating  interests pursuant to this Section 1.16 shall be made in Dollars.
Upon any such occurrence,  the Administrative Agent shall notify each Lender and
shall  specify the net amount of Dollars (if any) required from each such Lender
to effect  the  purchases  and sales by the  various  Lenders  of  participating
interests in the amounts  required above  (together  with accrued  interest with
respect to the period for the most recent interest payment date through the date
of the  Sharing  Event plus any  additional  amounts  payable  by the  Borrowers
pursuant to Section  4.04 in respect of such  accrued but unpaid  interest);  it
being  understood and agreed,  however,  in the event that a Sharing Event shall
have occurred, each Lender shall be deemed to have purchased,  automatically and
without request, such participating  interests (and, as a result thereof,  shall
be entitled to receive from,  or shall owe to, the other Lenders the  respective
amounts  owing  as a  result  of  the  purchases  and  sales  of  participations
contemplated  herein).  Promptly upon receipt of such request, each Lender shall
deliver to the Administrative Agent (in immediately  available funds in Dollars)
the  net  amounts  (if  any)  as  specified  by the  Administrative  Agent.  The
Administrative  Agent  shall  promptly  deliver  the  amounts so received to the
various  Lenders in such amounts as are needed to effect the purchases and sales
of participations as provided above.  Promptly  following receipt thereof,  each
Lender which has sold  participations  in any of its Tranches as provided  above
(through  the  Administrative  Agent) will  deliver to each Lender  (through the
Administrative  Agent) which has so purchased a  participating  interest in such
Tranches a participation certificate dated the date of receipt of such funds and
in such  amount.  It is  understood  that the amount of funds  delivered by each
Lender shall be calculated  on a net basis,  giving effect to both the sales and
purchases of participations by the various Lenders as required above.

          (d) Upon, and after,  the occurrence of a Sharing Event (i) no further
Credit  Events  shall be made or  occur,  (ii)  all  amounts  from  time to time
accruing  with  respect to, and all amounts from time to time payable on account
of,  Alternate  Currency Loans and Primary  Alternate  Currency  Unpaid Drawings
(including,  without  limitation,  any  interest  and other  amounts  which were
accrued  but  unpaid on the date of such  Sharing  Event)  shall be  payable  in
Dollars as if each such Alternate  Currency Loans or Primary Alternate  Currency
Letter of Credit  pursuant  to which  such  Primary  Alternate  Currency  Unpaid
Drawings  relates,  in each case, had originally been denominated in Dollars and
shall be distributed by the relevant Lenders to the Administrative Agent for the
account of the Lenders which made such Loans or are participating therein, (iii)
all of the Incremental Term Loan Commitments of all of the Incremental Term Loan
Lenders that have  provided  such  Incremental  Term Loan  Commitments  shall be
automatically  terminated,  and (iv) all Revolving Loan  Commitments  (including
Incremental   Revolving   Commitments)   of  all  Revolving   Lenders  shall  be
automatically  terminated.  Notwithstanding  anything to the contrary  contained
above,  the  failure of any Lender to  purchase  its  participating  interest as
required  above in any  extensions  of credit upon the  occurrence  of a Sharing
Event shall not relieve any other Lender of its obligation hereunder to purchase
its  participating  interests  in a  timely  manner,  but  no  Lender  shall  be
responsible  for the failure of any other Lender to purchase  the  participating
interest to be purchased by such other Lender on any date.

          (e) If any  amount  required  to be paid  by any  Lender  pursuant  to
Section 1.16(c) is not paid to the  Administrative  Agent on the date upon which
such Lender receives notice from the  Administrative  Agent of the amount of its
participations  required to be purchased pursuant to said Section 1.16(c),  such
Lender  shall,  in  addition  to such  aforementioned  amount,  also  pay to the
Administrative Agent on demand an amount equal to the product of (i) the

                                      -25-
<PAGE>

amount  so  required  to be  paid  by  such  Lender  for  the  purchase  of  its
participations,  (ii) the daily average  Federal  Funds Rate,  during the period
from and  including  the date of request  for  payment to the date on which such
payment  is  immediately  available  to the  Administrative  Agent  and  (iii) a
fraction the  numerator of which is the number of days that elapsed  during such
period and the denominator of which is 360. A certificate of the  Administrative
Agent  submitted  to any Lender with respect to any amounts  payable  under this
Section  1.16 shall be  conclusive  in the  absence of manifest  error.  Amounts
payable  by any  Lender  pursuant  to this  Section  1.16  shall  be paid to the
Administrative Agent for the account of the relevant Lenders,  provided that, if
the Administrative  Agent (in its sole discretion) has elected to fund on behalf
of such other Lender the amounts owing to such other  Lenders,  then the amounts
shall be paid to the Administrative Agent for its own account.

          (f)  Whenever,  at any time after the relevant  Lenders have  received
from any other  Lenders  purchases  of  participations  pursuant to this Section
1.16, the various Lenders receive any payment on account  thereof,  such Lenders
will  distribute  to the  Administrative  Agent,  for the account of the various
Lenders  participating  therein, such Lenders'  participating  interests in such
amounts  (appropriately  adjusted,  in the case of interest payments, to reflect
the period of time during which such  participations  were  outstanding) in like
funds as  received;  provided,  however,  in the  event  that  any such  payment
received by any Lenders is required  to be  returned,  the Lenders who  received
previous distributions in respect of their participating  interests therein will
return to the respective  Lenders any portion thereof  previously so distributed
to them  in like  funds  as such  payment  is  required  to be  returned  by the
respective Lenders.

          (g) Each  Lender's  obligation  to  purchase  participating  interests
pursuant to this Section 1.16 shall be absolute and  unconditional and shall not
be affected by any circumstance including,  without limitation,  (i) any setoff,
counterclaim,  recoupment,  defense or other  right  which such  Lender may have
against any other  Lender,  any  Borrower,  any other  Credit Party or any other
Person  for any reason  whatsoever,  (ii) the  occurrence  or  continuance  of a
Default  or an Event of  Default,  (iii) any  adverse  change  in the  condition
(financial or  otherwise)  of any Borrower,  any other Credit Party or any other
Person,  (iv) any breach of this  Agreement  by any  Borrower,  any other Credit
Party, any Lender or any other Person, or (v) any other circumstance,  happening
or event whatsoever, whether or not similar to any of the foregoing.

          (h) In the event  that  upon the  occurrence  of a  Sharing  Event any
Letter of Credit shall be outstanding  and undrawn in whole or in part, or there
shall exist any Unpaid Drawing with respect to any Letter of Credit  theretofore
issued,  each  Revolving  Lender  shall on the date of such  occurrence,  before
giving effect to the purchases and sales of participations on such date pursuant
to  Section  1.16(c),   promptly  pay  over  to  the  Administrative  Agent,  in
immediately  available  funds in Dollars,  an amount  equal to such  Lender's RL
Percentage of such undrawn face amount or such Unpaid Drawing (for this purpose,
using the Dollar Equivalent of any amounts expressed in Alternate  Currencies on
the date such  Sharing  Event first  occurred) , as  applicable,  together  with
interest  thereon  from the date of the Sharing  Event to the date on which such
amount  shall be paid to the  Administrative  Agent at a rate per annum equal to
the  greater  of  the  Federal   Funds  Rate  and  a  rate   determined  by  the
Administrative  Agent in  accordance  with banking  industry  rules on interbank
compensation. The Administrative Agent

                                      -26-
<PAGE>

shall  establish a separate  account or accounts for each Lender  (each,  an "LC
Reserve Account") in an amount equal to such Lender's Exchange Percentage of the
amounts  received  with  respect to each such  Letter of Credit  pursuant to the
preceding  sentence.  The  Administrative  Agent  shall have sole  dominion  and
control over each such LC Reserve Account,  and the amounts deposited in each LC
Reserve  Account  shall be held in such LC Reserve  Account  until  withdrawn as
provided  in  clause  (i),  (j)  or  (k)  below  in  this  Section   1.16.   The
Administrative Agent shall maintain records enabling it to determine the amounts
paid over to it and  deposited  in the LC  Reserve  Accounts  in respect of each
Letter of Credit and the  amounts on deposit in respect of each Letter of Credit
attributable  to each  Lender's  Exchange  Percentage.  The amounts  paid to the
Administrative  Agent  pursuant  to this  clause  (h) shall be held as a reserve
against the Letter of Credit  Outstandings,  shall not  constitute  Loans to any
Borrower and shall not give rise to any  obligation  on the part of any Borrower
to  pay  interest  to  such  Lender,   it  being  agreed  that  the   Borrowers'
reimbursement  obligations  in respect of Letters of Credit  shall arise only at
such times as drawings or payments are made  thereunder,  as provided in Section
2.05.

          (i) In the event  that  after the  occurrence  of a Sharing  Event any
drawing  or  payment  shall  be made in  respect  of a  Letter  of  Credit,  the
Administrative  Agent shall,  at the request of the respective  Issuing  Lender,
withdraw from the LC Reserve  Account of each of the Lenders (in accordance with
each Lender's  Exchange  Percentage) any amounts,  up to the aggregate amount of
such drawing or payment, deposited in respect of such Letter of Credit (for this
purpose,  using the Dollar  Equivalent of any amounts  expressed in an Alternate
Currency)  and  remaining  on deposit and deliver  such  amounts to such Issuing
Lender in  satisfaction  of the  reimbursement  obligations of the Lenders under
Section 2.04(c) (but not of the applicable  Borrower under Section 2.05(a)).  In
the event that any Lender shall default on its obligation to pay over any amount
to the  Administrative  Agent in respect of any Letter of Credit as  provided in
Section 1.16(h),  the respective Issuing Lender shall, in the event of a drawing
or payment thereunder, have a claim against such Lender to the same extent as if
such Lender had defaulted on its obligations  under Section  2.04(c),  but shall
have no  claim  against  any  other  Lender,  notwithstanding  the  exchange  of
interests in the applicable  Borrower's  reimbursement  obligations  pursuant to
Section  1.16(c).  Each other Lender shall have a claim against such  defaulting
Lender for any damages  sustained by it as a result of such default,  including,
in the event such Letter of Credit shall expire undrawn, its Exchange Percentage
of the defaulted amount.

          (j) In the event  that  after the  occurrence  of a Sharing  Event any
Letter of Credit shall expire undrawn,  the Administrative  Agent shall withdraw
from the LC Reserve  Account of each  Lender  the  amount  remaining  on deposit
therein in respect of such Letter of Credit and  distribute  such amount to such
Lender.

          (k) Pending the withdrawal of any amounts from its LC Reserve  Account
as contemplated  above in this Section 1.16, the  Administrative  Agent will, at
the  direction  of such Lender and  subject to such rules as the  Administrative
Agent may prescribe for the avoidance of  inconvenience,  invest such amounts in
Cash Equivalents.

          (l)  Notwithstanding  anything to the contrary contained  elsewhere in
this Agreement,  upon any purchase of participations as required above, (i) each
Lender which has purchased such participations shall be entitled to receive from
the respective Borrowers any increased costs and indemnities (including, without
limitation, pursuant to Sections 1.10, 1.11,

                                      -27-
<PAGE>

1.12, 2.06 and 4.04) directly from the respective Borrowers,  to the same extent
as if it were the  direct  Lender as  opposed to a  participant  therein,  which
increased  costs shall be calculated  without  regard to Section  1.13,  Section
12.04(a) or the last  sentence of Section  12.04(b),  and (ii) each Lender which
has sold such  participations  shall be entitled to receive from the  respective
Borrowers indemnification from and against any and all taxes imposed as a result
of the sale of the  participations  pursuant to this Section 1.16. Each Borrower
acknowledges  and agrees that,  upon the occurrence of a Sharing Event and after
giving effect to the  requirements of this Section 1.16,  increased Taxes may be
owing by it pursuant to Section  4.04,  which Taxes shall be paid (to the extent
provided  in  Section  4.04) by the  respective  Borrowers,  as the case may be,
without any claim that the increased Taxes are not payable because same resulted
from the participations effected as otherwise required by this Section 1.16.

          (m)  Notwithstanding  anything to the contrary contained above in this
Section 1.16,  the provisions of this Section 1.16 only shall apply in the event
that  either (x) any Loan is  outstanding  to a Foreign  Borrower or a Letter of
Credit has been issued for the account of a Foreign Revolving Borrower,  in each
case,  at the time  that a  Sharing  Event  occurs  or (y) any  Loans or  Unpaid
Drawings are owed by CanCo,  or any Letters of Credit  issued for the account of
CanCo are outstanding,  in either case at a time when a Sharing Event occurs and
the CanCo Restrictions are still in effect.

          Section 2. Letters of Credit.

          2.01  Letters  of  Credit.  (a)  Subject  to and  upon the  terms  and
conditions set forth herein,  any Revolving Borrower may request that an Issuing
Lender in its individual  capacity  issue,  at any time and from time to time on
and after the Initial  Borrowing  Date and prior to the 5th day (or, in the case
of trade Letters of Credit,  the 30th day) prior to the Revolving  Loan Maturity
Date,  for the account of such  Revolving  Borrower,  (x) an  irrevocable  sight
standby letter of credit in a form customarily  used by such Issuing Lender,  or
in such other form as has been  approved by such Issuing  Lender,  in support of
such obligations of Silgan or any of its Subsidiaries as may be requested by the
respective  Revolving  Borrower  (other  than  obligations  in  respect  of  any
Permitted  Subordinated  Indebtedness or capital stock),  and (y) an irrevocable
sight trade letter of credit in a form  customarily used by such Issuing Lender,
or in such other form as has been approved by such Issuing Lender, in support of
commercial  transactions  of any Revolving  Borrower or any of its  Subsidiaries
(each letter of credit issued  pursuant to this Section  2.01(a),  together with
each  letter of credit  described  in the  immediately  succeeding  sentence,  a
"Letter of  Credit").  It is hereby  acknowledged  and  agreed  that each of the
letters of credit  described in Schedule II (the "Existing  Letters of Credit"),
which were issued by Deutsche Bank or its affiliates  under the Existing  Credit
Agreement and remain outstanding on the Initial Borrowing Date, shall constitute
a "Letter of Credit"  for all  purposes  of this  Agreement  and shall be deemed
issued under this Agreement on the Initial Borrowing Date.

          (b)  Subject to and upon the terms and  conditions  set forth  herein,
each Issuing  Lender  hereby  agrees that it will,  at any time and from time to
time on and after the  Initial  Borrowing  Date and prior to the 5th day (or, in
the case of trade Letters of Credit,  the 30th day) prior to the Revolving  Loan
Maturity Date, following its receipt of the respective Letter of Credit Request,
issue for the account of the respective Revolving Borrower,  one or more Letters
of

                                      -28-
<PAGE>

Credit,  provided that no Issuing  Lender shall be under any obligation to issue
any Letter of Credit if at the time of such issuance:

          (i) any order,  judgment or decree of any  governmental  authority  or
     arbitrator  shall  purport by its terms to enjoin or restrain  such Issuing
     Lender  from  issuing  such  Letter  of Credit  or any  requirement  of law
     applicable to such Issuing  Lender or any request or directive  (whether or
     not  having  the  force  of  law)  from  any  governmental  authority  with
     jurisdiction over such Issuing Lender shall prohibit,  or request that such
     Issuing Lender refrain from, the issuance of letters of credit generally or
     such  Letter of Credit in  particular  or shall  impose  upon such  Issuing
     Lender with respect to such Letter of Credit any  restriction or reserve or
     capital  requirement  (for  which  such  Issuing  Lender  is not  otherwise
     compensated  hereunder)  not  in  effect  on  the  Effective  Date,  or any
     unreimbursed  loss, cost or expense which was not applicable,  in effect or
     known to such  Issuing  Lender  as of the  Effective  Date and  which  such
     Issuing Lender in good faith deems material to it;

          (ii) such Issuing Lender shall have received  notice from the Required
     Lenders  prior  to the  issuance  of such  Letter  of  Credit  of the  type
     described in the second sentence of Section 2.03(b); or

          (iii) a Lender  Default  exists with  respect to a  Revolving  Lender,
     unless such Issuing Lender has entered into arrangements satisfactory to it
     and the Revolving  Borrowers to eliminate  such Issuing  Lender's risk with
     respect to the Revolving Lender which is the subject of the Lender Default,
     including by cash collateralizing (in the appropriate  Applicable Currency)
     such Revolving Lender's RL Percentage of all Letter of Credit Outstandings.

          (c)  Notwithstanding  the foregoing,  (i) no Letter of Credit shall be
issued  the  Stated  Amount  of  which,  when  added  to the  Letter  of  Credit
Outstandings  (exclusive of Unpaid Drawings which are repaid on the date of, and
prior to the issuance of, the respective  Letter of Credit) at such time,  would
exceed  the  lesser  of (x)  $75,000,000  and (y) when  added  to the  aggregate
principal  amount of all  Revolving  Loans (for this  purpose,  using the Dollar
Equivalent for all Primary  Alternate  Currency  Revolving  Loans) and Swingline
Loans then  outstanding,  an amount equal to the Total Revolving Loan Commitment
at such time,  (ii) each  Letter of Credit  shall by its terms  terminate  on or
before (A) in the case of standby Letters of Credit, the earlier of (x) one year
after the date of issuance  thereof  (although any such standby Letter of Credit
may be  extended  for  successive  periods  up to one year,  but not  beyond the
Business Day  immediately  preceding the Revolving  Loan Maturity Date, on terms
acceptable  to  the  respective   Issuing  Lender)  and  (y)  the  Business  Day
immediately  preceding the  Revolving  Loan Maturity Date and (B) in the case of
trade Letters of Credit,  the earlier of (x) 180 days after the date of issuance
thereof and (y) the 30th day  preceding  the  Revolving  Loan  Maturity Date and
(iii)  each  Letter of Credit  shall be  denominated  in Dollars or in a Primary
Alternate Currency.

          (d)  Notwithstanding  anything to the contrary contained above in this
Section  2.01,  no Letter of Credit shall be issued for the account of CanCo the
Stated Amount of which, (A) when added to the sum of (I) the aggregate amount of
all other Letter of Credit Outstandings  (exclusive of Unpaid Drawings which are
repaid on the date of, and prior to the issuance of, the

                                      -29-
<PAGE>

respective  Letter of Credit) in respect of all other  Letters of Credit  issued
for the account of CanCo at such time and (II) the aggregate principal amount of
all  Revolving  Loans (for this  purpose,  using the Dollar  Equivalent  for all
Primary  Alternate  Currency  Revolving  Loans) and Swingline  Loans incurred by
CanCo and then outstanding,  would exceed an amount equal to the CanCo Revolving
Sub-Limit  then in  effect  or (B) when  added  to the sum of (I) the  aggregate
amounts  calculated in the preceding clause (A) and outstanding at such time and
(II) the aggregate  amount of all other CanCo Included Debt  outstanding at such
time, would exceed the CanCo Permitted Debt Amount at such time.

          2.02 Minimum Stated  Amount.  The initial Stated Amount of each Letter
of Credit shall be not less than $100,000 (or the Dollar Equivalent  thereof) or
such lesser amount as is acceptable to the respective Issuing Lender.

          2.03 Letter of Credit  Requests.  (a)  Whenever a  Revolving  Borrower
desires  that a Letter  of  Credit be issued  for its  account,  such  Revolving
Borrower shall give the  Administrative  Agent and the respective Issuing Lender
at least two Business Days' prior written notice  thereof.  Each notice shall be
in the form of  Exhibit C  appropriately  completed  (each a  "Letter  of Credit
Request").

          (b) The making of each Letter of Credit  Request shall be deemed to be
a  representation  and warranty by the respective  Revolving  Borrower that such
Letter of Credit may be issued in  accordance  with,  and will not  violate  the
requirements  of,  Sections  2.01(c)  and, if  applicable,  2.01(d).  Unless the
respective  Issuing Lender has received notice from the Required  Lenders before
it issues a Letter of Credit  that one or more of the  conditions  specified  in
Section 5.01 or 5.02,  as the case may be, are not then  satisfied,  or that the
issuance of such Letter of Credit would  violate  Sections  2.01(c)  and/or,  if
applicable,  2.01(d), then such Issuing Lender may issue the requested Letter of
Credit for the account of the respective  Revolving  Borrower in accordance with
such Issuing  Lender's usual and customary  practices.  Upon its issuance of, or
its  entering  into any  amendment  with  respect to, any Letter of Credit,  the
respective Issuing Lender shall promptly notify the Administrative Agent of such
issuance  or  amendment  and deliver to the  Administrative  Agent a copy of the
Letter of Credit actually issued or amended, as the case may be. In addition, on
the first  Business  Day of each week  thereafter,  each  Issuing  Lender  shall
furnish the Administrative Agent with a written (including via facsimile) report
of the daily  aggregate  Letter of Credit  Outstandings of all Letters of Credit
issued by such Issuing Lender for the immediately preceding week.

          2.04  Letter  of  Credit  Participations.  (a)  Immediately  upon  the
issuance by an Issuing Lender of any Letter of Credit, such Issuing Lender shall
be deemed to have sold to each Revolving Lender (each such Revolving  Lender, in
its  capacity  under  this  Section  2.04,  a  "Participant"),   and  each  such
Participant shall be deemed  irrevocably and  unconditionally  to have purchased
from such Issuing Lender,  without recourse or warranty,  an undivided  interest
and  participation,  to the extent of such  Participant's  RL Percentage in such
Letter of Credit, each substitute letter of credit, each drawing made thereunder
and the  obligations of the respective  Revolving  Borrower under this Agreement
with respect  thereto,  in the respective  Letter of Credit Fees (but not Facing
Fees)  payable  with  respect  thereto,  and any  security  therefor or guaranty
pertaining  thereto.  Upon any change in the Revolving  Loan  Commitments  or RL
Percentages  of the Lenders  pursuant to Section 1.13 or 12.04(b),  it is hereby
agreed that, with respect to all

                                      -30-
<PAGE>

outstanding  Letters of Credit and Unpaid Drawings,  there shall be an automatic
adjustment  to the  participations  pursuant to this Section 2.04 to reflect the
new RL Percentages of the assignor and assignee Lender, as the case may be.

          (b) In  determining  whether  to pay under any  Letter of  Credit,  no
Issuing Lender shall have any obligation  relative to the  Participants  therein
other than to confirm that any  documents  required to be  delivered  under such
Letter  of  Credit  appear  to have  been  delivered  and that  they  appear  to
substantially  comply on their  face  with the  requirements  of such  Letter of
Credit. Any action taken or omitted to be taken by an Issuing Lender under or in
connection  with any  Letter of Credit  issued  by it shall  not  create  for an
Issuing  Lender any  resulting  liability to any Revolving  Borrower,  any other
Credit Party, any Participant or any other Lender unless such action is taken or
omitted to be taken with gross  negligence or willful  misconduct on the part of
such Issuing  Lender (as  determined by a court of competent  jurisdiction  in a
final and non-appealable decision).

          (c) In the event that any Issuing  Lender makes any payment  under any
Letter of Credit issued by it and the  respective  Revolving  Borrower shall not
have  reimbursed  such amount in full to such Issuing Lender pursuant to Section
2.05(a),  such Issuing Lender shall promptly  notify the  Administrative  Agent,
which  shall  promptly  notify  each  Participant  of  such  failure,  and  each
Participant shall promptly and unconditionally  pay to the Administrative  Agent
for  the  account  of  the  respective   Issuing  Lender,  the  amount  of  such
Participant's RL Percentage of such  unreimbursed  payment in Dollars (or to the
extent the respective Unpaid Drawing is, in accordance with Section 2.05(a),  to
be  reimbursed  by the  respective  Revolving  Borrower  in a Primary  Alternate
Currency,  the respective Primary Alternate  Currency) and in same day funds. If
the  Administrative  Agent so notifies,  prior to 11:00 A.M. (Local Time) on any
Business  Day,  any  Participant  required  to fund a payment  under a Letter of
Credit,  such Participant shall make available to the  Administrative  Agent for
the account of the  respective  Issuing  Lender in Dollars (or to the extent the
respective  Unpaid  Drawing  is,  in  accordance  with  Section  2.05(a),  to be
reimbursed by the respective Revolving Borrower in a Primary Alternate Currency,
the respective  Primary Alternate  Currency) such Participant's RL Percentage of
the amount of such payment on such Business Day in same day funds. If and to the
extent such  Participant  shall not have so made its RL Percentage of the amount
of such  payment  available to the  Administrative  Agent for the account of the
respective Issuing Lender,  such Participant agrees to pay to the Administrative
Agent for the account of such Issuing  Lender,  forthwith on demand such amount,
together with interest thereon,  for each day from such date until the date such
amount is paid to the  Administrative  Agent  for the  account  of such  Issuing
Lender at the overnight Federal Funds Rate (or, in the case of amounts owed in a
Primary  Alternate  Currency,  the  Administrative  Agent's  customary  rate for
interbank  advances in the relevant  Primary  Alternate  Currency) for the first
three days and at the interest rate applicable to Revolving Loans  maintained as
Base Rate Loans for each day thereafter.  The failure of any Participant to make
available to the Administrative  Agent for the account of an Issuing Lender such
Participant's  RL Percentage of any payment under any Letter of Credit issued by
such Issuing  Lender shall not relieve any other  Participant  of its obligation
hereunder to make available to the Administrative  Agent for the account of such
Issuing Lender such  Participant's  RL Percentage of any Letter of Credit issued
by such  Issuing  Lender  on the  date  required,  as  specified  above,  but no
Participant  shall be  responsible  for the failure of any other  Participant to
make available to the Administrative Agent

                                      -31-
<PAGE>

for the account of such Issuing Lender such other Participant's RL Percentage of
any such payment.

          (d) Whenever an Issuing Lender  receives a payment of a  reimbursement
obligation as to which the Administrative  Agent has received for the account of
such Issuing  Lender any payments from the respective  Participants  pursuant to
clause (c) above, such Issuing Lender shall pay to the Administrative  Agent and
the  Administrative  Agent shall promptly pay to each such Participant which has
paid  its RL  Percentage  thereof,  in  Dollars  (or in the  respective  Primary
Alternate  Currency  in the  case of  payments  to be  made  in such  Currencies
pursuant  to Section  2.05(a))  and in same day funds,  an amount  equal to such
Participant's  share (based upon the  proportionate  aggregate amount originally
funded by such Participant to the aggregate  amount funded by all  Participants)
of the principal  amount of such  reimbursement  obligation and interest thereon
accruing after the purchase of the respective participations.

          (e) Upon the request of any  Participant,  each  Issuing  Lender shall
furnish to such Participant copies of any Letter of Credit issued by it and such
other documentation as may reasonably be requested by such Participant.

          (f) The obligations of the respective Participants to make payments to
the Administrative  Agent for the account of each Issuing Lender with respect to
Letters  of  Credit  issued  by it  shall  be  irrevocable  and not  subject  to
counterclaim,  set-off or other defense or any other  qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of this
Agreement under all circumstances,  including,  without  limitation,  any of the
following circumstances:

          (i) any lack of validity or enforceability of this Agreement or any of
     the other Credit Documents;

          (ii) the existence of any claim, set-off, defense or other right which
     any Revolving  Borrower,  any other Credit Party or any Subsidiary  thereof
     may have at any time against a beneficiary named in a Letter of Credit, any
     transferee  of any  Letter  of  Credit  (or any  Person  for  whom any such
     transferee may be acting),  the Administrative  Agent, such Issuing Lender,
     any Lender or any other Person,  whether in connection with this Agreement,
     any Letter of Credit, the transactions contemplated herein or any unrelated
     transactions  (including any underlying  transaction  between any Revolving
     Borrower,  any  other  Credit  Party  or any  Subsidiary  thereof  and  the
     beneficiary named in any such Letter of Credit);

          (iii) any draft, certificate or any other document presented under the
     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;

          (iv) the surrender or  impairment of any security for the  performance
     or observance of any of the terms of any of the Credit Documents; or

          (v) the occurrence of any Default or Event of Default.

                                      -32-
<PAGE>

          2.05 Agreement to Repay Letter of Credit Drawings.  (a) Each Revolving
Borrower  hereby agrees to reimburse each Issuing  Lender,  by making payment to
the Administrative  Agent in immediately  available funds at the Payment Office,
(i) in Dollars for any payment or disbursement made by such Issuing Lender under
any Dollar Letter of Credit issued by it for such Revolving  Borrower's  account
(each  such  amount so paid or  disbursed  until  reimbursed  by the  respective
Revolving Borrower, a "Dollar Unpaid Drawing"), and (ii) in the relevant Primary
Alternate  Currency for any payment or disbursement  made by such Issuing Lender
under any  Primary  Alternate  Currency  Letter of Credit  issued by it for such
Revolving  Borrower's account;  provided that in the case of any such payment or
disbursement  under any Primary  Alternate  Currency  Letter of Credit  which is
unpaid on the date of the  occurrence of a Sharing  Event,  or which payments or
disbursements  are made thereafter,  such amounts shall be paid in Dollars using
the Dollar  Equivalent of the amount of the respective  payment or  disbursement
made in the relevant  Primary  Alternate  Currency as such Dollar  Equivalent is
determined on the first date upon which the respective  Sharing Event occurs or,
if later,  the date upon which the respective  payment or  disbursement  is made
(each  such  amount so paid or  disbursed  until  reimbursed  by the  respective
Revolving Borrower,  a "Primary Alternate Currency Unpaid Drawing").  All Unpaid
Drawings shall be paid immediately  after, and in any event on the date of, such
payment or disbursement with interest on the amount so paid or disbursed by such
Issuing Lender, to the extent not reimbursed prior to 12:00 Noon (Local Time) on
the date of such payment or  disbursement,  from and  including the date paid or
disbursed  to but not  including  the date such  Issuing  Lender was  reimbursed
therefore  at a rate per annum which shall be (x) in the case of Dollar  Letters
of Credit (and other amounts owing in Dollars after the  occurrence of a Sharing
Event),  the Base Rate in effect from time to time plus the Applicable Margin in
effect from time to time for  Revolving  Loans that are  maintained as Base Rate
Loans, and (y) in the case of Primary Alternate  Currency Letters of Credit (for
periods  occurring  prior to the  occurrence  of a Sharing  Event),  the Primary
Alternate  Currency LIBOR in effect from time to time plus the Applicable Margin
in effect from time to time for Revolving Loans that are maintained as Euro Rate
Loans plus the Associated Cost Rate (if any);  provided,  however, in each case,
to the extent such amounts are not  reimbursed  prior to 12:00 Noon (Local Time)
on the fourth  Business Day  following  notice of such  payment or  disbursement
(although  no such notice shall be required to be given if a Default or an Event
of Default under Section 9.05 shall exist,  in which case interest  shall accrue
on such  amounts  as  hereinafter  provided  in this  proviso),  interest  shall
thereafter  accrue on the amounts so paid or disbursed  by such  Issuing  Lender
(and until  reimbursed  by such  Revolving  Borrower)  at a rate per annum which
shall be (x) in the case of Dollar  Letters of Credit (and other  amounts  owing
with  respect  to any  Letter of Credit in  Dollars  after the  occurrence  of a
Sharing  Event),  the Base Rate in effect from time to time plus the  Applicable
Margin as in effect from time to time for Revolving Loans that are maintained as
Base Rate  Loans  plus 2%,  and (y) in the case of  Primary  Alternate  Currency
Letters of Credit (for periods  occurring  prior to the  occurrence of a Sharing
Event),  the Primary  Alternate  Currency LIBOR in effect from time to time plus
the  Applicable  Margin as in effect from time to time for Revolving  Loans that
are maintained as Euro Rate Loans plus the  Associated  Costs Rate (if any) plus
2%, in each case, with such interest to be payable on demand.

          (b) The obligations of each Revolving Borrower under this Section 2.05
to reimburse each Issuing Lender with respect to Unpaid Drawings (including,  in
each case,  interest thereon) shall be absolute and unconditional  under any and
all circumstances and irrespective of

                                      -33-
<PAGE>

any setoff, counterclaim or defense to payment which such Revolving Borrower may
have or have had  against any Lender  (including  in such  Lender's  capacity as
issuer  of the  Letter  of Credit or as a  Participant  with  respect  thereto),
including, without limitation, any defense based upon the failure of any drawing
under a Letter of  Credit  (each a  "Drawing")  to  conform  to the terms of the
Letter of Credit or any  non-application or misapplication by the beneficiary of
the proceeds of such  Drawing;  provided,  however,  that no Revolving  Borrower
shall be obligated to reimburse an Issuing Lender for any wrongful  payment made
by such Issuing Lender under a Letter of Credit issued by it as a result of acts
or omissions  constituting willful misconduct or gross negligence on the part of
such Issuing  Lender (as  determined by a court of competent  jurisdiction  in a
final and non-appealable decision).

          2.06  Increased  Costs.  If at any time after the  Relevant  Effective
Date, the  introduction  of or any change in applicable law, rule or regulation,
guideline or in the interpretation or administration  thereof by the NAIC or any
governmental   authority  charged  with  the  interpretation  or  administration
thereof,  or compliance by an Issuing Lender or any Participant with any request
or directive by any such authority  (whether or not having the force of law), or
any change in generally accepted accounting principles, shall either (i) impose,
modify or deem  applicable  any reserve,  deposit,  capital  adequacy or similar
requirement  against  letters  of  credit  issued  by  such  Issuing  Lender  or
participated in by any Participant, or (ii) impose on such Issuing Lender or any
Participant  any other  conditions  relating,  directly or  indirectly,  to this
Agreement  or any  respective  Letter of  Credit,  and the  result of any of the
foregoing is to increase the cost to such Issuing  Lender or any  Participant of
issuing,  maintaining or participating  in any such Letter of Credit,  or reduce
the amount of any sum  received  or  receivable  by such  Issuing  Lender or any
Participant hereunder, then, upon demand to the respective Revolving Borrower by
such Issuing Lender or such Participant (a copy of which notice shall be sent by
such Issuing  Lender or such  Participant  to the  Administrative  Agent),  such
Revolving  Borrower  shall,  subject to the  provisions of Section 12.18 (to the
extent  applicable),  pay  to  such  Issuing  Lender  or  such  Participant  the
additional  amount or amounts as will  compensate  such  Issuing  Lender or such
Participant for such increased cost or reduction. A certificate submitted to the
respective Revolving Borrower by an Issuing Lender or a Participant, as the case
may be (a copy of which certificate shall be sent by such Issuing Lender or such
Participant  to the  Administrative  Agent),  setting  forth  the  basis for the
determination of such additional  amount or amounts necessary to compensate such
Issuing Lender or such Participant as aforesaid, shall be conclusive and binding
on such Revolving Borrower, absent manifest error, as to the amount thereof.

          Section 3. Fees; Commitments; Reductions of Commitments.

          3.01 Fees. (a) Each Revolving Borrower jointly and severally agrees to
pay  to  the  Administrative  Agent  for  distribution  to  each  Non-Defaulting
Revolving Lender a commitment  commission (the "Commitment  Commission") for the
period from the Effective Date to but excluding the Revolving Loan Maturity Date
(or such earlier date as the Total  Revolving  Loan  Commitment  shall have been
terminated),  computed  at a rate per annum equal to the  Applicable  Commitment
Commission  Percentage on the daily average Unutilized Revolving Loan Commitment
of such Non-Defaulting  Revolving Lender. Accrued Commitment Commission shall be
due and payable quarterly in arrears on each Quarterly Payment Date and

                                      -34-
<PAGE>

on the  Revolving  Loan  Maturity  Date or upon such  earlier  date as the Total
Revolving Loan Commitment shall have been terminated.

          (b) Each Revolving Borrower jointly and severally agrees to pay to the
Administrative  Agent for  proportionate  distribution to each Revolving  Lender
(based upon each such Revolving Lender's RL Percentage) a fee in respect of such
Revolving Lender's  participation in each Letter of Credit issued hereunder (the
"Letter of Credit Fee") for the period from and  including  the date of issuance
of such Letter of Credit to and including the  termination or expiration of such
Letter of Credit, computed at a rate per annum equal to the Applicable Margin as
in  effect  from  time to time  for  Revolving  Loans  that  are  maintained  as
Eurodollar  Loans on the daily Stated  Amount of such Letter of Credit.  Accrued
Letter of Credit  Fees  shall be due and  payable  quarterly  in arrears on each
Quarterly Payment Date and upon the first day after the termination of the Total
Revolving Loan Commitment upon which no Letters of Credit remain outstanding.

          (c) Each  Revolving  Borrower  jointly and severally  agrees to pay to
each Issuing Lender, for its own account, a facing fee in respect of each Letter
of Credit issued by such Issuing Lender  hereunder (the "Facing Fee"),  computed
at a rate of 1/8 of 1% per annum on the daily  Stated  Amount of such  Letter of
Credit.  Accrued  Facing Fees shall be due and payable  quarterly  in arrears on
each Quarterly  Payment Date and upon the first day on or after the  termination
of the Total  Revolving Loan  Commitment  upon which no Letters of Credit remain
outstanding.

          (d) Each  Revolving  Borrower  jointly and severally  agrees to pay to
each Issuing  Lender,  for its own account,  in respect of each Letter of Credit
issued  by  it  hereunder,  such  amount  or  amounts  as  such  Issuing  Lender
customarily  charges as  processing  fees for  issuing,  amending  and paying on
letters of credit.

          (e)  The  Borrowers   jointly  and  severally  agree  to  pay  to  the
Administrative  Agent,  the other Agent and the Joint Lead Arrangers,  for their
own  accounts,  such  fees as may be agreed  to from  time to time  between  the
Borrowers and the  Administrative  Agent,  the other Agent and/or the Joint Lead
Arrangers, as the case may be.

          (f) Silgan and each other  Borrower  agrees to pay to the  Incremental
Term Loan  Lenders  and/or  the  Incremental  Revolving  Lenders,  for their own
accounts,  such fees as may be separately  agreed to with such  Incremental Term
Loan Lenders and/or the Incremental  Revolving Lenders pursuant to Sections 1.14
and/or 1.15, as the case may be.

          (g) Notwithstanding anything to the contrary contained in this Section
3.01,  CanCo shall not be jointly or severally  liable with the other  Borrowers
for  any  Fees  obligated  to be  paid  by the  other  Borrowers  to the  extent
prohibited by the applicable CanCo  Restrictions then in effect;  although CanCo
will remain  obligated  for its portion of the  accrued  Commitment  Commission,
Letter of Credit  Fees,  Facing  Fees and other Fees except upon a sale or other
disposition pursuant to Section 12.20(b), in which case Containers and the other
Borrowers (in no event to include  CanCo) shall be solely  jointly and severally
liable for the amount of all Fees owing by CanCo as otherwise  provided above in
this Section 3.01.

                                      -35-
<PAGE>

          3.02 Voluntary Termination of Revolving  Commitments.  (a) (I) Upon at
least two Business  Days' prior written notice (or  telephonic  notice  promptly
confirmed  in  writing)  by any  Borrower  to the  Administrative  Agent  at the
applicable Notice Office (which notice the  Administrative  Agent shall promptly
transmit to each of the  Lenders),  any Borrower  shall have the right,  without
premium or penalty, to terminate the Total Unutilized Revolving Loan Commitment,
in whole or, if in part, in integral multiples of $1,000,000, provided that each
such reduction shall apply  proportionately  to permanently reduce the Revolving
Loan Commitment of each Revolving  Lender.  A notice of termination of the Total
Unutilized Revolving Loan Commitment pursuant to this Section 3.02(a), delivered
by a Borrower  contemporaneously  with a notice of prepayment of all outstanding
Loans  pursuant to Section  4.01(a),  may state that such notice is  conditioned
upon the  effectiveness of other credit facilities the proceeds of which will be
used to  refinance  in full this  Agreement,  in which  case such  notice may be
revoked by such Borrower (by notice to the  Administrative  Agent on or prior to
the specified  effective  date) if such  condition is not  satisfied;  provided,
however,  any such  revocation  shall  not  affect  any  Borrower's  obligations
pursuant to Section 1.11.

          (II)  Upon at least  two  Business  Days'  prior  written  notice  (or
telephonic  notice  promptly  confirmed in writing) by an Incremental  Term Loan
Borrower to the  Administrative  Agent at the  applicable  Notice  Office (which
notice the Administrative Agent shall promptly transmit to each of the Lenders),
such  Incremental  Term Loan Borrower shall have the right,  without  premium or
penalty,  to  terminate  or  partially  reduce the Total  Incremental  Term Loan
Commitment  under  the  Tranche  with  respect  to such  Incremental  Term  Loan
Borrower,  provided that (x) any such  termination  or partial  reduction  shall
apply proportionately to permanently reduce the Incremental Term Loan Commitment
of each of the Lenders  with such a  Commitment  under such  Tranche and (y) any
partial  reduction  pursuant to this  Section  3.02(a)(II)  shall be in integral
multiples of $1,000,000 (or the Dollar Equivalent thereof).

          (b) In the event of the  refusal  by a Lender to consent to a proposed
change, waiver,  discharge or termination with respect to any of the matters set
forth in clauses (i) through (vii),  inclusive,  of the first proviso in Section
12.12(a) which has been approved by the Required  Lenders,  the Borrowers  shall
have the right  (subject to the  requirements  of Section  12.12(b)),  upon five
Business  Days'  prior  written  notice  to  the  Administrative  Agent  at  the
applicable Notice Office (which notice the  Administrative  Agent shall promptly
transmit  to each of the  Lenders),  to  terminate  the  entire  Revolving  Loan
Commitment and Incremental Term Loan Commitments of such Lender,  so long as all
Loans,  together  with accrued and unpaid  interest,  Fees and all other amounts
owing to such Lender (but  excluding  the  termination  of any  Commitments  and
payment of amounts  owing in respect of Loans (and related  Commitments)  of any
Tranche  maintained by such Lender, if such Commitments are not being terminated
and Loans not being repaid pursuant to Section 12.12(b)) are repaid concurrently
with the effectiveness of such termination pursuant to Section 4.01(b) (at which
time Schedule I shall be deemed modified to reflect such changed  amounts),  and
at such time,  unless the respective  Lender continues to have outstanding Loans
or Commitments hereunder,  such Lender shall no longer constitute a "Lender" for
purposes of this Agreement,  except with respect to indemnifications  under this
Agreement (including, without limitation, Sections 1.10, 1.11, 2.06, 4.04, 12.01
and 12.06), which shall survive as to such repaid Lender.

                                      -36-
<PAGE>

          3.03 Mandatory Reduction or Termination of Commitments.  (a) The Total
Commitment (and the A Term Loan  Commitment,  the B Term Loan Commitment and the
Revolving Loan  Commitment of each Lender) shall  terminate in their entirety on
July 31, 2005 unless the Initial Borrowing Date has occurred on or prior to such
date.

          (b) In addition to any other mandatory commitment  reductions pursuant
to this Section 3.03, the Total A Term Loan Commitment and the Total B Term Loan
Commitment  (and the A Term Loan  Commitment  and the B Term Loan  Commitment of
each Lender) shall  terminate in their  entirety on the Initial  Borrowing  Date
(after the incurrence of the respective Tranches of Term Loans on such date).

          (c) In addition to any other mandatory commitment  reductions pursuant
to this Section 3.03, the Total  Incremental  Term Loan Commitment under a given
Tranche  shall (i) be  permanently  reduced  (x) on each  Incremental  Term Loan
Borrowing  Date in respect of such Tranche in an amount  equal to the  aggregate
principal amount of Incremental Term Loans of such Tranche incurred on each such
date, (ii) terminate in its entirety (to the extent not theretofore  terminated)
on the Incremental  Commitment  Termination Date for such Tranche of Incremental
Term Loans (after giving effect to any Incremental Term Loans of such Tranche to
be  made  on  such  date)  and  (iii)  prior  to the  termination  of the  Total
Incremental  Term Loan  Commitment  in respect of such Tranche,  be  permanently
reduced from time to time to the extent required by Section 4.02(k).

          (d) In addition to any other mandatory commitment  reductions pursuant
to this Section 3.03,  the Total  Revolving Loan  Commitment  (and the Revolving
Loan Commitment of each Lender) shall terminate in its entirety on the Revolving
Loan Maturity Date.

          (e) In addition to any other mandatory commitment  reductions pursuant
to this Section 3.03, the Total Revolving Loan  Commitment  shall be permanently
reduced from time to time to the extent required by Section 4.02(k).

          (f) In addition to any other mandatory commitment  reductions pursuant
to this Section 3.03, (i) on the date on which Silgan or any of its Subsidiaries
enters  into  the  Accounts  Receivable  Facility,   the  Total  Revolving  Loan
Commitment  shall  be  permanently  reduced  by an  amount  equal  to 75% of the
commitment amount in respect of the revolving facility component of the Accounts
Receivable  Facility and (ii) on each date  thereafter  on which the  commitment
amount of such revolving  facility  component is increased,  the Total Revolving
Loan  Commitment  shall be  permanently  reduced  on each such date by an amount
equal to 75% of the amount of such increase.

          (g) Each reduction to, and/or termination of, the Total Revolving Loan
Commitment  pursuant to this  Section 3.03 shall be applied  proportionately  to
permanently  reduce,  and/or  terminate,  the Revolving Loan  Commitment of each
Revolving  Lender.   Each  reduction  to,  and/or   termination  of,  the  Total
Incremental  Term Loan Commitment under a given Tranche pursuant to this Section
3.03 shall be applied  proportionately to permanently reduce,  and/or terminate,
the Incremental Term Loan Commitment of each Lender with such a Commitment under
such Tranche; provided, however, any mandatory reduction to the Incremental Term
Loan Commitments pursuant to Section 4.02(k) shall be applied to

                                      -37-
<PAGE>

proportionately  and permanently reduce the Incremental Term Loan Commitments of
all Lenders for all  Tranches on a pro rata basis  (based on the then  remaining
amounts of such Incremental Term Loan Commitments).

          Section 4. Prepayments; Payments; Commitment Reductions.

          4.01 Voluntary Prepayments.  (a) Each Borrower shall have the right to
prepay the Loans made to such Borrower,  without premium or penalty, in whole or
in part at any time and from time to time on the following terms and conditions:
(i) such Borrower shall give the Administrative  Agent prior to 3:00 P.M. (Local
Time) at the  applicable  Notice  Office (x) at least one  Business  Day's prior
written  notice (or  telephonic  notice  promptly  confirmed  in writing) of its
intent to prepay  Base Rate Loans (or same day  notice in the case of  Swingline
Loans  provided  such  notice is given prior to 3:00 P.M.  (Local  Time) on such
Business Day) and (y) at least three  Business  Days' prior  written  notice (or
telephonic  notice  promptly  confirmed in writing) of its intent to prepay Euro
Rate Loans,  (ii) which notice (x) shall  specify  whether A Term Loans,  B Term
Loans,  Incremental  Term  Loans  under  a given  Tranche,  Revolving  Loans  or
Swingline Loans shall be prepaid,  the amount of such  prepayment,  the Types of
Loans to be prepaid and, in the case of Euro Rate Loans, the specific  Borrowing
or  Borrowings  pursuant  to which such Euro Rate  Loans were made,  and (y) the
Administrative Agent shall promptly transmit to each of the Lenders;  (iii) each
partial  prepayment  shall  be in an  aggregate  principal  amount  of at  least
$1,000,000  (taking  the Dollar  Equivalent  of any  amounts to be prepaid in an
Alternate Currency) (or $250,000 in the case of Swingline Loans) or, in the case
of Incremental Term Loans of a given Tranche,  the minimum  principal amount set
forth in the  Incremental  Term Loan  Commitment  Agreement  for such  Tranche),
provided that if any partial  prepayment of Euro Rate Loans made pursuant to any
Borrowing  shall reduce the  outstanding  Euro Rate Loans made  pursuant to such
Borrowing  to an  amount  less  than the  Minimum  Borrowing  Amount  applicable
thereto,  then (A) if such  Borrowing  is a Borrowing  of Euro Rate Loans (other
than  Alternate  Currency  Incremental  Term  Loans),  such  Borrowing  shall be
converted  at the end of the then  current  Interest  Period into a Borrowing of
Base Rate Loans and any election of an Interest  Period  thereafter with respect
thereto  given by such Borrower  shall have no force or effect,  and (B) if such
Borrowing is a Borrowing of Alternate  Currency  Incremental  Term Loans under a
given Tranche,  the respective  Incremental  Term Loan Borrower shall  cooperate
with the  Administrative  Agent in selecting  Interest Periods at the end of the
then current  Interest Period or Interest  Periods so as to align such Borrowing
with the Interest  Period or Interest  Periods  applicable  to one or more other
Borrowings of such Tranche of Incremental  Term Loans;  (iv) each  prepayment in
respect  of any Term  Loans  made  pursuant  to this  Section  4.01(a)  shall be
allocated  among the  different  Tranches  of Term  Loans or applied to a single
Tranche of Term  Loans in each case as Silgan  shall  specify in the  respective
notice of prepayment;  provided,  however, if either Silgan fails to specify how
such prepayment is to be allocated or a Default or an Event of Default exists at
the time of the respective prepayment,  such prepayment shall be allocated among
the  Tranches of Term Loans on a pro rata basis (with each Tranche of Term Loans
to be allocated its Term Loan Percentage of the amount of such prepayment);  (v)
each  prepayment of any Tranche of Term Loans  pursuant to this Section  4.01(a)
shall be applied (1) first, to reduce the Term Loan Scheduled  Repayment of each
such Tranche of Term Loans which is due on December 31 of the year in which such
prepayment is made (it being understood that any voluntary prepayments of A Term
Loans  pursuant to this Section  4.01(a) which are made in 2005 or 2006 shall be
applied to the A Term Loan  Scheduled  Repayment  which is due on

                                      -38-
<PAGE>

December 31, 2007), and (2) second,  to the extent in excess thereof,  to reduce
the then remaining  Term Loan Scheduled  Repayments of each such Tranche of Term
Loans on a pro rata basis (based upon the then  remaining  principal  amounts of
Term Loan  Scheduled  Repayments of each such Tranche of Term Loans after giving
effect to all prior reductions thereto);  and (vi) each prepayment in respect of
any Tranche of Loans pursuant to this Section  4.01(a) shall be applied pro rata
among the Lenders with outstanding  Loans of such Tranche,  provided that at the
respective  Revolving  Borrower's  election in connection with any prepayment of
Revolving Loans pursuant to this Section 4.01(a),  such prepayment shall not, so
long as no Default or Event of Default then exists,  be applied to any Revolving
Loan of a Defaulting  Lender.  A notice of prepayment of all  outstanding  Loans
pursuant to this Section 4.01(a), delivered by a Borrower contemporaneously with
a notice  of  termination  of the Total  Unutilized  Revolving  Loan  Commitment
pursuant to Section 3.02(a),  may state that such notice is conditioned upon the
effectiveness  of other credit  facilities the proceeds of which will be used to
refinance  in full this  Agreement,  in which case such notice may be revoked by
such  Borrower  (by  notice  to the  Administrative  Agent  on or  prior  to the
specified effective date) if such condition is not satisfied; provided, however,
any such  revocation  shall not affect any  Borrower's  obligations  pursuant to
Section 1.11.

          (b) In the event of the  refusal  by a Lender to consent to a proposed
change,  waiver,  discharge  or  termination  with respect to any of the matters
described  in clauses  (i) through  (vii),  inclusive,  of the first  proviso in
Section 12.12(a) which have been approved by the Required Lenders, the Borrowers
shall have the right (subject to the  requirements  of Section  12.12(b)),  upon
five Business  Days' prior  written  notice to the  Administrative  Agent at the
applicable Notice Office (which notice the  Administrative  Agent shall promptly
transmit to each of the Lenders) to repay all Loans,  together  with accrued and
unpaid interest,  Fees and other amounts  (including,  without  limitation,  all
obligations  under  Section  1.11),  then  owing  to  such  Lender  (or,  at the
Borrowers'  discretion,  owing to such Lender solely with respect to the Tranche
which  gave rise to the need to obtain  such  Lender's  individual  consent)  in
accordance  with  said  Section  12.12(b)  so  long  as (A) in the  case  of the
repayment of Revolving Loans of any Lender pursuant to this Section 4.01(b), the
Revolving Loan  Commitment of such Lender is terminated  concurrently  with such
repayment  pursuant to Section 3.02(b) (at which time Schedule I shall be deemed
modified to reflect the changed Revolving Loan Commitments),  (B) in the case of
the repayment of Incremental Term Loans of any Lender under a given Tranche, the
Incremental Term Loan Commitment of such Lender under such Tranche is terminated
concurrently  with such  repayment  pursuant  to Section  3.02(b) (at which time
Schedule I shall be deemed modified to reflect the changed Incremental Term Loan
Commitments of such Tranche) and (C) the consents  required by Section  12.12(b)
in  connection  with the  repayment  pursuant to this Section  4.01(b) have been
obtained.  Each  prepayment of any Term Loans  pursuant to this Section  4.01(b)
shall be applied to reduce the then remaining Term Loan Scheduled  Repayments of
such  Tranche of Term Loans on a pro rata basis  (based upon the then  remaining
principal  amount of such Term Loan Scheduled  Repayments after giving effect to
all prior reductions thereto).

          4.02 Mandatory Prepayments and Commitment  Reductions.  (a) (i) On any
day on which  the  Aggregate  RL  Exposure  exceeds  the  Total  Revolving  Loan
Commitment as then in effect,  the Revolving  Borrowers shall prepay on such day
the principal of outstanding Swingline Loans and, after all Swingline Loans have
been repaid in full or if no  Swingline  Loans are then  outstanding,  Revolving
Loans in an amount (in the case of payments made with respect to

                                      -39-
<PAGE>

Primary Alternate Currency Revolving Loans,  taking the Dollar Equivalent of the
amounts paid in the respective  Primary Alternate  Currency in which payments on
such Primary Alternate Currency Revolving Loans are owing) equal to such excess.
If, after giving effect to the prepayment of all outstanding Swingline Loans and
Revolving  Loans,  the  aggregate  amount of all  Letter of Credit  Outstandings
exceeds the Total  Revolving  Loan  Commitment as then in effect,  the Revolving
Borrowers shall pay to the Administrative Agent at the applicable Payment Office
on such day an amount of cash and/or Cash Equivalents in Dollars (and/or, to the
extent  that any  Letter of Credit  Outstandings  are  denominated  in a Primary
Alternate  Currency,  in the Dollar  Equivalent  thereof) equal to the amount of
such excess (up to a maximum  amount equal to the Letter of Credit  Outstandings
at such time),  such cash or Cash  Equivalents  to be held as  security  for all
Obligations of the Revolving  Borrowers  hereunder in a cash collateral  account
maintained  by  the  Administrative  Agent  (the  "Cash  Collateral   Account");
provided,  however,  that such amounts shall,  so long as no Default or Event of
Default then exists, be released to the Revolving Borrowers from time to time so
long as the  Total  Revolving  Loan  Commitment  as then in effect  exceeds  the
Aggregate RL Exposure at such time.

          (ii) On any day on which (A) the sum of (I) the aggregate  outstanding
principal  amount of all  Revolving  Loans (for this  purpose,  using the Dollar
Equivalent with respect to any Primary Alternate  Currency Revolving Loans) made
to CanCo, (II) the aggregate outstanding principal amount of all Swingline Loans
made  to  CanCo  and  (III)  the  aggregate  amount  of  all  Letter  of  Credit
Outstandings in respect of all Letters of Credit issued for the account of CanCo
at such time exceeds the CanCo Revolving Sub-Limit then in effect or (B) the sum
of (I) the aggregate amounts  calculated in preceding clause (A) and outstanding
at such time and (II) the  aggregate  amount of all other  CanCo  Included  Debt
outstanding  at such time exceeds the CanCo  Permitted Debt Amount at such time,
CanCo shall (in either case) repay on such day principal of Swingline Loans made
to CanCo and, after all such  Swingline  Loans have been repaid in full or if no
such Swingline Loans are then  outstanding,  Revolving Loans made to CanCo in an
amount (in the case of payments made with respect to Primary Alternate  Currency
Revolving  Loans,  taking  the  Dollar  Equivalent  of the  amounts  paid in the
respective  Primary  Alternate  Currency  in  which  payments  on  such  Primary
Alternate  Currency  Revolving Loans are owing) equal to such excess.  If, after
giving effect to the prepayment of all outstanding Swingline Loans and Revolving
Loans  made to CanCo,  either (A) the  aggregate  amount of all Letter of Credit
Outstandings in respect of all Letters of Credit issued for the account of CanCo
at such time exceeds the CanCo Revolving Sub-Limit then in effect or (B) the sum
of (I) the aggregate  amount of all Letter of Credit  Outstandings in respect of
all Letters of Credit  issued for the account of CanCo at such time and (II) the
aggregate  amount of all other  CanCo  Included  Debt  outstanding  at such time
exceeds the CanCo  Permitted  Debt  Amount at such time,  CanCo shall (in either
case) pay to the  Administrative  Agent at the applicable Payment Office on such
day an amount of cash and/or Cash Equivalents in Dollars (and/or,  to the extent
that any Letter of Credit  Outstandings  are denominated in a Primary  Alternate
Currency,  in the Dollar Equivalent  thereof) equal to the amount of such excess
(up to a maximum  amount  equal to such  Letter of Credit  Outstandings  at such
time),  such cash or Cash Equivalents to be held as security for all Obligations
of CanCo hereunder in the Cash Collateral Account; provided,  however, that such
amounts  shall,  so long as no  Default  or Event of  Default  then  exists,  be
released  to CanCo  from  time to time so long as both (x) the  CanCo  Revolving
Sub-Limit  then in  effect  exceeds  the sum of (I)  the  aggregate  outstanding
principal  amount of all Revolving Loans made to CanCo (for this purpose,  using
the Dollar Equivalent with respect to any Primary Alternate Currency

                                      -40-
<PAGE>

Revolving  Loans),  (II)  the  aggregate  outstanding  principal  amount  of all
Swingline  Loans made to CanCo and (III) the  aggregate  amount of all Letter of
Credit  Outstandings at such time in respect of all Letters of Credit issued for
the  account  of CanCo  and (y) the  CanCo  Permitted  Debt  Amount at such time
exceeds the sum of (I) the aggregate amounts referred to in preceding clause (x)
and  outstanding at such time and (II) the aggregate  outstanding  amount of all
other CanCo Included Debt at such time.

          (iii) On any day on  which  the  Dollar  Equivalent  of the  aggregate
outstanding  principal amount of all Primary Alternate  Currency Revolving Loans
exceeds the Primary Alternate Currency Sublimit,  the Revolving  Borrowers shall
prepay on such day the  principal  of  outstanding  Primary  Alternate  Currency
Revolving  Loans in an amount (taking the Dollar  Equivalent of the amounts paid
in the respective  Primary Alternate  Currency in which payments on such Primary
Alternate Currency Revolving Loans are owing) equal to such excess.

          (iv) On any day on which  the  aggregate  amount  of  Letter of Credit
Outstandings  exceeds  $75,000,000,  the  Revolving  Borrowers  shall pay to the
Administrative  Agent at the applicable  Payment Office on such day an amount of
cash and/or Cash Equivalents in Dollars  (and/or,  to the extent that any Letter
of Credit Outstandings are denominated in a Primary Alternate  Currency,  in the
Dollar  Equivalent  thereof) equal to the amount of such excess (up to a maximum
amount  equal to the Letter of Credit  Outstandings  at such time,  such cash or
Cash  Equivalents  to be held as security for all  Obligations  of the Revolving
Borrowers hereunder in the Cash Collateral Account; provided, however, that such
amounts  shall,  so long as no  Default  or Event of  Default  then  exists,  be
released  to the  Revolving  Borrowers  from  time to time  to the  extent  that
$75,000,000 exceeds the aggregate Letter of Credit Outstandings, at such time.

          (b) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section 4.02, on each date set forth below,  Silgan
shall be required to repay that principal  amount of A Term Loans, to the extent
then  outstanding,  as is set forth opposite such date (each such repayment,  as
the same may be reduced in amount as provided in Sections  4.01(a),  4.01(b) and
4.02(k), an "A Term Loan Scheduled Repayment"):

                     A Term Loan
              Scheduled Repayment Date             Amount
              ------------------------             ------
              December 31, 2007                  $63,750,000
              December 31, 2008                  $63,750,000
              December 31, 2009                  $85,000,000
              December 31, 2010                  $85,000,000
              A Term Loan Maturity Date         $127,500,000

          (c) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section 4.02, on each date set forth below,  Silgan
shall be required to repay that principal  amount of B Term Loans, to the extent
then  outstanding,  as is set forth opposite such date (each such repayment,  as
the same may be reduced in amount as provided in Sections  4.01(a),  4.01(b) and
4.02(k) and as the same may be  increased  as provided in clause (ii) of Section
1.14(c), a "B Term Loan Scheduled Repayment"):

                                      -41-
<PAGE>

                     B Term Loan
              Scheduled Repayment Date             Amount
              ------------------------             ------
              December 31, 2005                   $1,250,000
              December 31, 2006                   $1,250,000
              December 31, 2007                   $1,250,000
              December 31, 2008                   $1,250,000
              December 31, 2009                   $1,250,000
              December 31, 2010                   $1,250,000
              December 31, 2011                   $1,250,000
              B Term Loan Maturity Date         $116,250,000

          (d) In  addition  to any  other  mandatory  repayments  or  commitment
reductions pursuant to this Section 4.02, Silgan shall be required to make, with
respect  to  each  Tranche  of  Incremental  Term  Loans,  to  the  extent  then
outstanding, scheduled amortization payments of such Tranche of Incremental Term
Loans on the  dates and in the  principal  amounts  set forth in the  respective
Incremental Term Loan Commitment Agreement (each such repayment, as the same may
be reduced as provided in Sections 4.01(a), 4.01(b) and 4.02(k), an "Incremental
Term Loan  Scheduled  Repayment"  and,  together with the A Term Loan  Scheduled
Repayments  and the B Term Loan Scheduled  Repayments,  the "Term Loan Scheduled
Repayments");  provided that, if any  Incremental  Term Loans are incurred which
will be added to (and form part of) an  existing  Tranche  of  Incremental  Term
Loans,  the  amount  of the  then  remaining  Incremental  Term  Loan  Scheduled
Repayments of the respective Tranche shall be proportionally increased (with the
aggregate  amount  of  increases  to the then  remaining  Incremental  Term Loan
Scheduled  Repayments  to  equal  the  aggregate  principal  amount  of such new
Incremental  Term Loans then being incurred) in accordance with the requirements
of clause (ii) of Section 1.14(c).

          (e) In  addition  to any  other  mandatory  repayments  or  commitment
reductions pursuant to this Section 4.02, on each Excess Cash Flow Payment Date,
an amount equal to the  remainder  (if  positive) of (A) 50% of Excess Cash Flow
for the relevant  Excess Cash Flow Payment  Period minus (B) the sum of (without
duplication)  (1) the aggregate  amount of principal  prepayments  of Loans (for
this purpose, using the Dollar Equivalent with respect to any Alternate Currency
Loans) to the extent (and only to the extent) that such prepayments were made as
a voluntary  prepayment pursuant to Section 4.01 with internally generated funds
(but in the case of a  voluntary  prepayment  of  Revolving  Loans or  Swingline
Loans,  only to the extent  accompanied  by a voluntary  reduction  to the Total
Revolving  Loan  Commitment  in an amount equal to such  prepayment)  during the
relevant  Excess  Cash  Flow  Payment  Period  and (2) the  aggregate  amount of
principal  prepayments  of Term  Loans  (for  this  purpose,  using  the  Dollar
Equivalent with respect to any Alternate Currency Incremental Term Loans) to the
extent (and only to the extent) that such  prepayments  were made as a voluntary
prepayment  pursuant  to  Section  4.01  with  proceeds  of  Revolving  Loans or
Swingline  Loans during (and which  Revolving  Loans or Swingline Loans were, at
the time of the respective prepayment,  anticipated to be repaid with internally
generated funds during) the relevant  Excess Cash Flow Payment Period,  shall be
applied as a mandatory repayment and/or commitment  reduction in accordance with
the requirements of Section 4.02(k);  provided,  however, that no such mandatory
repayment  or  commitment  reduction  shall be  required on any Excess Cash Flow
Payment Date to the extent

                                      -42-
<PAGE>

that (i) no Default or Event of Default then exists and (ii) the Total  Leverage
Ratio as of the last day of the relevant Excess Cash Flow Payment Period is less
than or equal to 3.50:1.00.

          (f) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section  4.02, on each date on or after the Initial
Borrowing  Date upon which Silgan or any of its  Subsidiaries  receives any cash
proceeds from any Asset Sale (including pursuant to Section 12.20(b)), an amount
equal to 100% of the Net Sale Proceeds  therefrom  shall be applied on such date
as a mandatory  repayment  and/or  commitment  reduction in accordance  with the
requirements of Section 4.02(k); provided, however, such Net Sale Proceeds shall
not be  required to be so applied on such date so long as no Default or Event of
Default then exists and such Net Sale Proceeds shall be used to purchase  assets
(other than current  assets) used or to be used in the  businesses of Silgan and
its Subsidiaries as are permitted by Section 8.14 within 12 months following the
date of such Asset Sale,  and  provided  further,  that if all or any portion of
such Net Sale  Proceeds not  required to be so applied as a mandatory  repayment
and/or commitment  reduction as provided above are not so reinvested within such
12 month period, such remaining portion shall be applied on the last day of such
12  month  period  as a  mandatory  repayment  and/or  commitment  reduction  in
accordance with the requirements of Section 4.02(k).

          (g) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section 4.02, within 10 days following each date on
or after the Initial Borrowing Date upon which Silgan or any of its Subsidiaries
receives any cash proceeds from any Recovery  Event,  an amount equal to 100% of
the Net  Insurance  Proceeds  from such  Recovery  Event  shall be  applied as a
mandatory   repayment  and/or  commitment   reduction  in  accordance  with  the
requirements of Section 4.02(k);  provided,  however, that so long as no Default
or Event of Default then exists and the proceeds from any such Recovery Event do
not exceed $125,000,000, such proceeds shall not be required to be so applied on
such date to the extent that such  proceeds  shall be used to replace or restore
any  properties or assets in respect of which such proceeds were paid (and/or to
invest in a then existing  manufacturing facility to accommodate for the loss of
capacity at the manufacturing facility subject to such Recovery Event) within 12
months  following  the date of the  receipt of such  proceeds  (or to  reimburse
Silgan  or any such  Subsidiary  on the date of  receipt  of such  proceeds  for
amounts theretofore  expended by Silgan or such Subsidiary to replace or restore
any such  properties  or assets or to  invest in a then  existing  manufacturing
facility,  as the case may be), and provided further,  that (i) if the amount of
such proceeds  exceeds  $125,000,000,  then only the portion of such proceeds in
excess  of  $125,000,000  shall  be  applied  as a  mandatory  repayment  and/or
commitment  reduction in accordance with the requirements of Section 4.02(k) and
(ii) if all or any portion of such  proceeds  not required to be so applied as a
mandatory  repayment  and/or  commitment  reduction as provided above are not so
used  within 12 months  after the date of the  receipt  of such  proceeds,  such
remaining  portion shall be applied on the last day of such 12 month period as a
mandatory   repayment  and/or  commitment   reduction  in  accordance  with  the
requirements  of  Section  4.02(k).  Notwithstanding  anything  to the  contrary
contained  above in this  Section  4.02(g),  so long as no  Default  or Event of
Default then exists which results in the  termination  of the Total  Commitment,
any cash proceeds (even if such cash proceeds exceeds $125,000,000)  received by
CanCo from any  Recovery  Event in respect  of its assets may be  reinvested  as
provided  above in this  Section  4.02(g) to the extent that CanCo is  otherwise
required to reinvest all such proceeds by the terms of the  applicable  Campbell
Can Acquisition Documents.

                                      -43-
<PAGE>

          (h) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant  to this  Section  4.02,  (i) on each  date on or after the
Initial Borrowing Date upon which Silgan or any of its Subsidiaries receives any
cash  proceeds  from any  incurrence  by  Silgan or any of its  Subsidiaries  of
Indebtedness  for borrowed  money (other than,  except as provided below in this
clause (h), Indebtedness for borrowed money permitted to be incurred pursuant to
Section  8.04 as such  Section is in effect on the  Effective  Date) and (ii) on
each date on or after the Initial  Borrowing Date upon which Silgan receives any
cash  proceeds  from any  issuance  of  Additional  Permitted  Indebtedness  the
proceeds of which have not been used to  Refinance  then  outstanding  Permitted
Subordinated  Indebtedness  or  Additional  Permitted  Senior  Indebtedness,  to
finance a Permitted  Acquisition or to prepay outstanding Revolving Loans and/or
Swingline  Loans  the  proceeds  of  which  were  used to  finance  a  Permitted
Acquisition,  in each case an amount  equal to 100% of the Net Debt  Proceeds of
the  respective  incurrence of  Indebtedness  shall be applied on such date as a
mandatory   repayment  and/or  commitment   reduction  in  accordance  with  the
requirements of Section 4.02(k); provided, however, if all or any portion of any
Net Debt Proceeds from the issuance of Additional Permitted  Indebtedness are to
be used to Refinance then  outstanding  Permitted  Subordinated  Indebtedness or
Additional   Permitted  Senior  Indebtedness  as  otherwise  permitted  by  this
Agreement  within 60 days from the date of the  issuance  thereof,  such portion
shall not be  required to be applied  pursuant  to Section  4.02(k) on such date
(although if all or any portion of such Net Debt  Proceeds are not actually used
to Refinance  outstanding  Permitted  Subordinated  Indebtedness  or  Additional
Permitted Senior  Indebtedness within such 60 day period, such remaining portion
shall be applied on the last day of such period (or such earlier  date,  if any,
as Silgan  determines  not to  proceed  with such  Refinancing)  as a  mandatory
repayment  and/or  commitment  reduction in accordance with the  requirements of
Section 4.02(k).

          (i) In  addition  to any  other  mandatory  repayments  or  commitment
reductions pursuant to this Section 4.02, (i) on the date on which Silgan or any
of its Subsidiaries receives any cash proceeds from the initial sale of accounts
receivable  pursuant  to the  Accounts  Receivables  Facility,  75% of the  cash
proceeds  therefrom (net of  underwriting  discounts and  commissions  and other
reasonable costs  associated  therewith) to the extent that such proceeds relate
to a fixed  amount  of  funded  principal  shall be  applied  on such  date as a
mandatory   repayment  and/or  commitment   reduction  in  accordance  with  the
requirements  of Section  4.02(k) and (ii) on each date  thereafter on which the
fixed  amount of funded  principal  under the  Accounts  Receivable  Facility is
increased,  75%  of the  cash  proceeds  from  such  increased  amount  (net  of
underwriting  discounts and commissions and other  reasonable  costs  associated
therewith)  shall be applied on each such date as a mandatory  repayment  and/or
commitment reduction in accordance with the requirements of Section 4.02(k).

          (j) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section  4.02, on each date on or after the Initial
Borrowing  Date upon which Silgan or any of its  Subsidiaries  receives any cash
proceeds  from a sale and  leaseback  transaction  for any asset or  property of
Silgan  or any of its  Subsidiaries,  an  amount  equal  to 75 % of the Net Sale
Proceeds therefrom shall be applied on such date as a mandatory repayment and/or
commitment  reduction in accordance with the  requirements  of Section  4.02(k);
provided, however, (x) with respect to the first $20,000,000 in the aggregate of
such proceeds in any fiscal year of Silgan, none of such Net Sale Proceeds shall
be required to be so applied as provided above so long as no Default or Event of
Default then exists and (y) to the extent that any such

                                      -44-
<PAGE>

sale and leaseback  transaction  (including one that would otherwise be excluded
pursuant to preceding  clause (x))  constitutes  an "Asset  Sale" under,  and as
defined in, the 6-3/4% Senior Subordinated Debenture Indenture or any Additional
Permitted Indebtedness Documents, 100% of the Net Sale Proceeds therefrom either
shall be applied as a mandatory  repayment and/or  commitment in accordance with
the  requirements  of Section  4.02(k)  and/or  reinvested in assets (other than
current  assets)  used  or to be  used  in the  businesses  of  Silgan  and  its
Subsidiaries  as are  permitted by Section 8.14 within 12 months  following  the
date of such sale and leaseback  transaction,  and to the extent that all or any
portion of such Net Sale  Proceeds  that have not been  applied  as a  mandatory
repayment  and/or  commitment  reduction as provided above are not so reinvested
within such 12 month period, such remaining portion shall be applied on the last
day of such 12 month period as a mandatory repayment and/or commitment reduction
in accordance with the requirements of Section 4.02(k).

          (k) Any amount required to be applied pursuant to this Section 4.02(k)
shall be applied (i) first,  as a mandatory  repayment  of the then  outstanding
principal  amount of Term  Loans,  (ii)  second,  to the extent in excess of the
amount  required  to be applied  pursuant  to the  preceding  clause  (i),  as a
mandatory  reduction  to the Total  Incremental  Term Loan  Commitment  for each
Tranche of  Incremental  Term Loans and (iii) third,  to the extent in excess of
the amount  required  to be applied  pursuant to the  preceding  clauses (i) and
(ii),  as a mandatory  reduction to the Total  Revolving  Loan  Commitment.  The
amount to be applied  to repay  principal  of  outstanding  Term Loans  shall be
allocated  among each of the  Tranches of Term Loans on a pro rata  basis,  with
each  Tranche  of Term Loans to be  allocated  its Term Loan  Percentage  of the
amount of such prepayment and with the amount  allocated to each such Tranche of
Term Loans to be applied (1) first, to reduce the Term Loan Scheduled  Repayment
of each such  Tranche of Term Loans  which is due on  December 31 of the year in
which such repayment is made (it being understood that any mandatory  repayments
of A Term Loans  which are  required  to be  applied  pursuant  to this  Section
4.02(k) in 2005 or 2006 shall be applied to the A Term Loan Scheduled  Repayment
which is due on  December  31,  2007) and (2)  second,  to the  extent in excess
thereof,  to reduce the then remaining  Term Loan  Scheduled  Repayments of each
such of Tranche of Term Loans on a pro rata basis (based upon the then remaining
principal amounts of such Term Loan Scheduled Repayments of such Tranche of Term
Loans after giving effect to all prior reductions thereto).

          (l) Notwithstanding anything to the contrary contained in this Section
4.02 or elsewhere in this Agreement (including,  without limitation,  in Section
12.12),  at any time that A Term Loans are  outstanding,  Silgan  shall have the
option,  in its sole  discretion,  to give the Lenders with  outstanding  B Term
Loans (the "B Lenders") and the Incremental  Term Loan Lenders with  outstanding
Incremental  Term Loans the option to waive  their pro rata share of a mandatory
repayment  of B Term  Loans  and  Incremental  Term  Loans  which  is to be made
pursuant to Section 4.02(e), (f), (g), (h), (i) and/or (j) (each such repayment,
a "Waivable  Mandatory  Repayment")  upon the terms and  provisions set forth in
this Section 4.02(l). If Silgan elects to exercise the option referred to in the
immediately  preceding sentence,  Silgan shall give to the Administrative  Agent
written notice at the applicable Notice Office of Silgan's intention to give the
B Lenders  and  Incremental  Term  Loan  Lenders  the right to waive a  Waivable
Mandatory  Repayment  (including in such notice,  the  aggregate  amount of such
proposed  repayment)  at  least  five  Business  Days  prior  to the date of the
proposed repayment, which notice the Administrative Agent shall promptly forward
to all B Lenders and  Incremental  Term Loan Lenders  (indicating

                                      -45-
<PAGE>

in such notice the amount of such  repayment to be applied to each such Lender's
outstanding B Term Loans and Incremental  Term Loans).  Silgan's offer to permit
the B Lenders  and  Incremental  Term Loan  Lenders  to waive any such  Waivable
Mandatory  Repayment may apply to all or part of such  repayment,  provided that
any offer to waive part of such  repayment must be made ratably to the B Lenders
and Incremental Term Loan Lenders on the basis of their outstanding B Term Loans
and Incremental Term Loans (for this purpose,  using the Dollar  Equivalent with
respect to any Alternate Currency Incremental Term Loans). In the event that any
such B Lender or  Incremental  Term Loan  Lender  desires  to waive its pro rata
share of such Lender's right to receive any such Waivable Mandatory Repayment in
whole or in part, such Lender shall so advise the Administrative  Agent no later
than 4:00 P.M.  (Local  Time) on the date which is two  Business  Days after the
date of such notice  from the  Administrative  Agent,  which  notice  shall also
include the amount such Lender desires to receive in respect of such  repayment.
If  any B  Lender  or  Incremental  Term  Loan  Lender  does  not  reply  to the
Administrative  Agent within the two Business  Days,  such Lender will be deemed
not to have waived any part of such  repayment.  If any B Lender or  Incremental
Term Loan Lender  does not  specify an amount it wishes to receive,  such Lender
will be deemed to have  accepted  100% of its  share of such  repayment.  In the
event that any such B Lender or Incremental  Term Loan Lender waives all or part
of its share of any such Waivable Mandatory Repayment,  the Administrative Agent
shall  apply 100% of the amount so waived by such  Lender to the  outstanding  A
Term Loans in accordance with Section 4.02(k).

          (m) With respect to each repayment of any Tranche of Loans required by
this Section  4.02,  the  respective  Borrower may  designate the Types of Loans
which are to be repaid of such Tranche and, in the case of Euro Rate Loans,  the
specific  Borrowing  or  Borrowings  pursuant to which such Euro Rate Loans were
made,  provided  that:  (i)  repayments of Euro Rate Loans made pursuant to this
Section 4.02 may only be made on the last day of an Interest  Period  applicable
thereto unless all such Euro Rate Loans of the respective  Tranche with Interest
Periods ending on such date of required repayment and all Base Rate Loans of the
respective  Tranche have been paid in full;  (ii) if any  repayment of Euro Rate
Loans made pursuant to a single  Borrowing  shall reduce the  outstanding  Loans
made  pursuant to such  Borrowing  to an amount less than the Minimum  Borrowing
Amount applicable  thereto,  (x) in the case of Eurodollar Loans, such Borrowing
shall  be  converted  at the end of the  then  current  Interest  Period  into a
Borrowing of Base Rate Loans, and (y) in the case of Alternate Currency Loans of
a given Tranche, the respective Borrower shall cooperate with the Administrative
Agent in  selecting  Interest  Periods at the end of the then  current  Interest
Period or  Interest  Periods so as to align  such  Borrowing  with the  Interest
Periods  applicable to one or more other Borrowings of Alternate  Currency Loans
of such  Tranche;  and (iii) each  repayment  of any  Tranche of Loans  shall be
applied pro rata among the Lenders with  outstanding  Loans of such Tranche.  In
the absence of a  designation  by the  respective  Borrower as  described in the
preceding sentence,  the Administrative  Agent shall, subject to the above, make
such designation in its sole discretion.

          (n) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section 4.02, (i) all then  outstanding  Loans of a
respective  Tranche shall be repaid in full on the respective  Maturity Date for
such  Tranche of Loans,  (ii) in the event that any  Revolving  Borrower is sold
pursuant to the terms of this Agreement, all Revolving Loans and Swingline Loans
incurred by such Revolving Borrower and outstanding at such time shall be repaid
in full at the time of such  sale  and all  Letters  of  Credit  issued  for the
account of such

                                      -46-
<PAGE>

Revolving Borrower and outstanding at such time shall be cash  collateralized in
the  Cash  Collateral  Account  in  a  manner  reasonably  satisfactory  to  the
Administrative  Agent,  and (iii) in the event  that any  Incremental  Term Loan
Borrower is sold pursuant to this Agreement, all Incremental Term Loans incurred
by such  Incremental  Term Loan Borrower and  outstanding  at such time shall be
repaid in full at the time of such sale.

          (o) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section 4.02, upon any receipt by CanCo of any cash
capital  contribution  only  pursuant  to (and only to the extent  required  by)
Section 7.12, an amount equal to 100% of such cash capital contribution shall be
applied as a mandatory  repayment of principal of  outstanding  Swingline  Loans
and, if no Swingline Loans are or remain  outstanding,  Revolving Loans, in each
case made to CanCo.

          (p) So long as the CanCo Restrictions are in effect and in addition to
any other mandatory repayments or commitment reductions pursuant to this Section
4.02,  CanCo shall be required to repay  outstanding  Swingline Loans and, if no
Swingline Loans are or remain outstanding, Revolving Loans, in each case made to
it with 100% the Net Sale  Proceeds  from any Asset Sale made by CanCo or any of
its Subsidiaries to the extent that such Net Sale Proceeds are not reinvested by
CanCo or any of its Subsidiaries as permitted by Section 4.02(f).

          (q) In  addition  to any  other  mandatory  repayments  or  commitment
reductions  pursuant to this Section  4.02, in the event that Campbell Soup or a
Subsidiary  thereof  purchases all of the capital stock or all or  substantially
all of the assets of CanCo,  whether  pursuant to the terms of the  Campbell Can
Acquisition  Documents or otherwise,  all then  outstanding  Revolving Loans and
Swingline Loans made to CanCo shall have been (or shall  concurrently be) repaid
in full at such time and all  Letters of Credit  issued for the account of CanCo
shall  have  been (or shall  concurrently  be) cash  collateralized  in a manner
satisfactory to the Administrative Agent.

          (r) For purposes of making calculations pursuant to this Section 4.02,
the  Administrative  Agent shall be entitled to use the Dollar Equivalent of any
such amounts stated in a currency other than Dollars.

          4.03 Method and Place of  Payment.  Except as  otherwise  specifically
provided  herein,  all payments under this Agreement and under any Note shall be
made to the  Administrative  Agent for the  account  of the  Lender  or  Lenders
entitled thereto not later than 12:00 Noon (Local Time) on the date when due and
shall be made in immediately available funds at the applicable Payment Office in
(x) Dollars if such  payment is made in respect of (i)  principal of or interest
on  Dollar  Loans  owing by any  Borrower  or any  increased  costs  or  similar
obligations  owing by any  Borrower in respect of Dollar Loans or (ii) except as
provided in following  clause (y), any other  Obligation  of any Borrower  under
this  Agreement or under any Note issued by such  Borrower  (calculated,  in the
case of Letter of Credit  Fees and Facing  Fees  owing  with  respect to Primary
Alternate Currency Letters of Credit,  using the Dollar Equivalent  thereof) and
(y) in the applicable  Alternate  Currency if such payment is made in respect of
(i)  principal  of or interest on Alternate  Currency  Loans or  Commitments  in
respect thereof,  (ii) Unpaid Drawings on Primary Alternate  Currency Letters of
Credit or (iii) any  increased  costs,  indemnities  or other amounts owing with
respect to Alternate Currency Loans or Commitments in respect thereof;  provided
that, from and after any Sharing Event, all payments of principal,

                                      -47-
<PAGE>

interest and fees in respect of any outstanding  Alternate  Currency Loans,  and
all Unpaid Drawings in respect of Primary Alternate  Currency Letters of Credit,
in each case, shall be made in Dollars as provided in Section 1.16. Any payments
under  this  Agreement  or under any Note  which are made  later than 12:00 Noon
(Local  Time) on any  Business Day shall be deemed to have been made on the next
succeeding  Business Day. Whenever any payment to be made hereunder or under any
Note  shall be stated to be due on a day which is not a  Business  Day,  the due
date thereof  shall be extended to the next  succeeding  Business Day and,  with
respect to payments of principal,  interest  shall be payable at the  applicable
rate during such extension.

          4.04 Net Payments.  (a) All payments  made by each Borrower  hereunder
and under any Note will be made without  setoff,  counterclaim or other defense.
Except as provided in Section  4.04(b),  all such payments will be made free and
clear of, and without deduction or withholding for, any present or future taxes,
levies,  imposts,  duties, fees, assessments or other charges of whatever nature
now or hereafter imposed by any jurisdiction or by any political  subdivision or
taxing  authority  thereof  or  therein  with  respect  to  such  payments  (but
excluding, except as provided in the second succeeding sentence, any tax imposed
on or  measured by the net income or net profits of a Lender and, in the case of
a Lender that is a flow-through entity for U.S. federal income tax purposes, the
relevant  member  or  partner  of  such  Lender  pursuant  to  the  laws  of the
jurisdiction  in which it or,  in the  case of a Lender  that is a  flow-through
entity for U.S.  federal income tax purposes,  the relevant member or partner of
such Lender is organized or in which the principal office or applicable  lending
office of such Lender or, in the case of a Lender that is a flow-through  entity
for U.S.  federal  income tax purposes,  the relevant  member or partner of such
Lender is  located or any  subdivision  thereof or  therein)  and all  interest,
penalties or similar liabilities with respect thereto  (collectively,  "Taxes").
If any  Taxes are so levied or  imposed,  such  Borrower  agrees to pay the full
amount of such Taxes,  and such  additional  amounts as may be necessary so that
every payment of all amounts due under this Agreement and under any Note,  after
withholding  or deduction for or on account of any Taxes,  will not be less than
the amount  provided  for herein or in such Note.  If any amounts are payable in
respect of Taxes pursuant to the preceding  sentence,  then such Borrower agrees
to reimburse  each Lender,  upon the written  request of such Lender,  for taxes
imposed on or  measured  by the net income or net  profits of such Lender or, in
the case of a Lender that is a flow-through  entity for U.S.  federal income tax
purposes,  the relevant member or partner of such Lender pursuant to the laws of
the  jurisdiction in which it or, in the case of a Lender that is a flow-through
entity for U.S.  federal income tax purposes,  the relevant member or partner of
such Lender is organized or in which the principal office or applicable  lending
office of such Lender or, in the case of a Lender that is a flow-through  entity
for U.S.  federal  income tax purposes,  the relevant  member or partner of such
Lender is  located  or under  the laws of any  political  subdivision  or taxing
authority of any such  jurisdiction and for any withholding of income or similar
taxes  imposed  by any such  jurisdiction  as such  Lender  or, in the case of a
Lender that is a flow-through  entity for U.S. federal income tax purposes,  the
relevant  member or partner of such Lender  shall  determine  are payable by, or
withheld  from,  such Lender or, in the case of a Lender that is a  flow-through
entity for U.S.  federal income tax purposes,  the relevant member or partner of
such  Lender in respect of such  amounts so paid to or on behalf of such  Lender
or,  in the case of a Lender  that is a  flow-through  entity  for U.S.  federal
income tax purposes,  the relevant  member or partner of such Lender pursuant to
the  preceding  sentence  and in respect of any amounts  paid to or on behalf of
such Lender or, in the case of a Lender that is a  flow-through  entity for U.S.
federal  income tax  purposes,  the  relevant  member or partner of such  Lender
pursuant to this sentence.

                                      -48-
<PAGE>

Each Borrower will furnish to the Administrative  Agent within 45 days after the
date the payment of any Taxes is due pursuant to applicable law certified copies
of tax receipts  evidencing  such payment by such  Borrower (or if such receipts
are   unavailable,   such  other  evidence   reasonably   satisfactory   to  the
Administrative  Agent). Each Borrower agrees to indemnify and hold harmless each
Lender, and to reimburse such Lender upon its written request, for the amount of
any Taxes so  levied or  imposed  and paid by such  Lender  or, in the case of a
Lender that is a flow-through  entity for U.S. federal income tax purposes,  the
relevant member or partner of such Lender.

          (b) Each Lender  that is lending to a US Borrower  and is not a United
States person (as such term is defined in Section  7701(a)(30)  of the Code) for
U.S.  Federal income tax purposes agrees to deliver to each such US Borrower and
the  Administrative  Agent on or prior to the Relevant Effective Date, or in the
case of (x) a Lender that is an assignee or transferee of an interest under this
Agreement  pursuant to Section 1.13 or 12.04 (unless the  respective  Lender was
already a Lender to a US Borrower hereunder immediately prior to such assignment
or transfer)  or (y) an Eligible  Transferee  that becomes a Lender  pursuant to
Section 1.14 or 1.15, on the date of such  assignment or transfer or on the date
such Eligible Transferee becomes a Lender hereunder, as the case may be, (i) two
accurate and complete  original  signed copies of Internal  Revenue Service Form
W-8ECI or Form W-8BEN (with respect to a complete  exemption under an income tax
treaty) (or successor forms) certifying to such Lender's  entitlement as of such
date to a complete  exemption from United States withholding tax with respect to
payments to be made by such US Borrower  under this Agreement and under any Note
or (ii) if the Lender is not a "bank" within the meaning of Section 881(c)(3)(A)
of the Code and cannot deliver either  Internal  Revenue  Service Form W-8ECI or
W-8BEN  (with  respect to a complete  exemption  under an income tax treaty) (or
successor forms) pursuant to clause (i) above,  (x) a certificate  substantially
in the  form  of  Exhibit  D  (any  such  certificate,  a  "Section  4.04(b)(ii)
Certificate")  and (y) two  accurate  and  complete  original  signed  copies of
Internal  Revenue  Service Form W-8BEN (with respect to the  portfolio  interest
exemption)  (or successor  form)  certifying to such Lender's  entitlement as of
such date to a complete  exemption  from U.S.  withholding  tax with  respect to
payments of interest to be made by such US  Borrower  under this  Agreement  and
under any Note or (iii) in the case of a Lender  that is a  flow-through  entity
for U.S. federal income tax purposes, two accurate and complete signed copies of
Internal   Revenue   Service  Form  W-8IMY  (and  all   necessary   attachments)
establishing  a complete  exemption  from  United  States  withholding  tax with
respect to payments  made to the Lender under this  Agreement or under any Note.
In addition,  each Lender that is lending to a US Borrower agrees that from time
to time after the  Relevant  Effective  Date,  when a lapse in time or change in
circumstances renders the previous  certification  obsolete or inaccurate in any
material  respect,  such  Lender will  deliver to each such US Borrower  and the
Administrative  Agent two new accurate and complete  original  signed  copies of
Internal Revenue Service Form W-8ECI,  Form W-8BEN (with respect to the benefits
of any  income tax  treaty),  or Form  W-8BEN  (with  respect  to the  portfolio
interest exemption) and a Section  4.04(b)(ii)  Certificate or Form W-8IMY (with
respect to a flow-through  entity),  as the case may be, and such other forms as
may be required in order to confirm or establish the  entitlement of such Lender
to a continued exemption from or reduction in United States withholding tax with
respect to payments by such US Borrower under this Agreement and under any Note,
or it shall  immediately  notify  each such US Borrower  and the  Administrative
Agent of its  inability  to deliver any such Form or  Certificate  in which case
such  Lender  shall not be  required  to  deliver  any such Form or  Certificate
pursuant to this Section 4.04(b).

                                      -49-
<PAGE>

Notwithstanding  anything to the  contrary  contained  in Section  4.04(a),  but
subject to Section 12.04(b) and the immediately succeeding sentence, (x) each US
Borrower  shall be  entitled,  to the extent it is  required to do so by law, to
deduct or withhold  income or similar taxes imposed by the United States (or any
political  subdivision  or taxing  authority  thereof or therein) from interest,
Fees or other  amounts  payable  hereunder for the account of any Lender that is
lending to such US  Borrower  and which is not a United  States  person (as such
term is defined in Section  7701(a)(30) of the Code) for U.S. Federal income tax
purposes to the extent that such  Lender has not  provided to such US  Borrower,
the U.S. Internal Revenue Service Forms that establish a complete exemption from
such deduction or withholding and (y) no US Borrower shall be obligated pursuant
to Section  4.04(a) to  gross-up  payments  to be made to a Lender in respect of
income or similar  taxes imposed by the United States if (I) such Lender has not
provided to such US Borrower the Internal  Revenue  Service Forms required to be
provided to such US Borrower  pursuant  to this  Section  4.04(b) or (II) in the
case  of a  payment  by such US  Borrower,  other  than  interest,  to a  Lender
described in clause (ii) above, to the extent that such Forms do not establish a
complete exemption from withholding of such taxes.  Notwithstanding  anything to
the  contrary  contained  in the  preceding  sentence and except as set forth in
Section 12.04(b),  the respective US Borrower or US Borrowers agree to indemnify
each Lender in the manner set forth in Section  4.04(a)  (without  regard to the
identity of the jurisdiction  requiring the deduction or withholding) in respect
of any  amounts  deducted  or withheld  by it as  described  in the  immediately
preceding  sentence  as a result of any  changes  that are  effective  after the
Relevant  Effective  Date in any  applicable  law,  treaty,  governmental  rule,
regulation,  guideline or order, or in the interpretation  thereof,  relating to
the deducting or withholding of income or similar Taxes.

          Section 5. Conditions Precedent.

          5.01 Conditions to Loans on the Initial Borrowing Date. The obligation
of each Lender to make Loans, and the obligation of each Issuing Lender to issue
Letters of Credit,  in each case on the Initial Borrowing Date is subject at the
time of the making of such Loans or the  issuance  of such  Letters of Credit to
the satisfaction of the following conditions:

          (a)  Execution  of  Agreement;  Notes.  On or  prior  to  the  Initial
     Borrowing  Date,  (i) the Effective Date shall have occurred and (ii) there
     shall have been  delivered to the  Administrative  Agent for the account of
     each of the Lenders that has requested same the  appropriate A Term Note, B
     Term Note and/or Revolving Note executed by the appropriate  Borrower,  and
     to the  Swingline  Lender to the  extent  requested  by it the  appropriate
     Swingline Notes executed by the appropriate  Borrower,  in each case in the
     amount, maturity and as otherwise provided herein.

          (b)  Officer's  Certificate.   On  the  Initial  Borrowing  Date,  the
     Administrative  Agent shall have received a  certificate  dated the Initial
     Borrowing  Date signed by the  president  or any vice  president  of Silgan
     certifying that all of the applicable  conditions in Sections 5.01(f), (j),
     (k) and (l) and 5.02 have been satisfied on such date.

          (c)  Opinions  of  Counsel.   On  the  Initial   Borrowing  Date,  the
     Administrative  Agent  shall  have  received  (i) from Frank  Hogan,  Esq.,
     General Counsel to Silgan, an opinion addressed to the Administrative Agent
     and each of the Lenders and dated the Initial  Borrowing  Date covering the
     matters set forth in Exhibit E-1 and such other

                                      -50-
<PAGE>

     matters incident to the transactions  contemplated herein as the Agents may
     reasonably request, and (ii) from Bryan Cave LLP, counsel to the Borrowers,
     an opinion  addressed to the  Administrative  Agent and each of the Lenders
     and dated the  Initial  Borrowing  Date  covering  the matters set forth in
     Exhibit  E-2  and  such  other   matters   incident  to  the   transactions
     contemplated herein as the Agents may reasonably request.

          (d) Corporate  Documents;  Proceedings.  (i) On the Initial  Borrowing
     Date, the Administrative Agent shall have received a certificate, dated the
     Initial  Borrowing  Date,  signed by the president or any vice president of
     each Credit  Party,  and  attested  to by the  secretary  or any  assistant
     secretary of such Credit Party,  in the form of Exhibit F with  appropriate
     insertions,  together with copies of the Certificate of  Incorporation  and
     By-Laws (or equivalent  organizational  documents) of such Credit Party and
     the resolutions of such Credit Party referred to in such  certificate,  and
     the foregoing shall be reasonably acceptable to the Agents.

          (ii) All  corporate  and legal  proceedings  and all  instruments  and
     agreements  in  connection  with  the  transactions  contemplated  by  this
     Agreement and the other Credit  Documents shall be reasonably  satisfactory
     in form and  substance  to the Agents  and the  Required  Lenders,  and the
     Administrative  Agent shall have received all information and copies of all
     documents  and  papers,   including   records  of  corporate   proceedings,
     governmental   approvals,   good  standing   certificates   and  bring-down
     telegrams,  if any,  which the  Agents  reasonably  may have  requested  in
     connection  therewith,  such  documents and papers where  appropriate to be
     certified by proper corporate or governmental authorities.

          (e) Certain  Debt  Agreements;  Tax Sharing  Agreement;  Campbell  Can
     Acquisition Documents. On the Initial Borrowing Date, there shall have been
     delivered to the Administrative Agent true and correct copies, certified as
     true and complete by an  appropriate  officer of Silgan,  of (i) the 6-3/4%
     Senior  Subordinated  Debenture  Indenture  (together  with all  amendments
     thereto),  (ii) the Tax Sharing  Agreement  (together  with all  amendments
     thereto) and (iii) all Campbell Can  Acquisition  Documents  (together with
     all amendments thereto) (other than the Campbell Can Supply Agreement).

          (f) Repayment and Termination of Commitments under the Existing Credit
     Agreement.  On  the  Initial  Borrowing  Date  and  concurrently  with  the
     incurrence  of Term  Loans  and  Revolving  Loans on such  date,  the total
     commitments  (and  all  security   interests)  under  the  Existing  Credit
     Agreement shall have been  terminated,  and all loans thereunder shall have
     been repaid in cash in full,  together  with all accrued  interest and fees
     thereon,  all letters of credit (other than the Existing Letters of Credit,
     if any) issued thereunder shall have been terminated, and all other amounts
     owing pursuant to the Existing  Credit  Agreement shall have been repaid in
     full. The Administrative  Agent shall have received evidence in form, scope
     and substance  reasonably  satisfactory to it that the matters set forth in
     this Section 5.01(f) have been satisfied on such date.

          (g) US Borrowers/Subsidiaries Guaranty. On the Initial Borrowing Date,
     each US Credit  Party  (other  than  CanCo)  shall  have  duly  authorized,
     executed and delivered the US  Borrowers/Subsidiaries  Guaranty in the form
     of Exhibit G (as modified,

                                      -51-
<PAGE>

     supplemented  or amended from time to time, the "US  Borrowers/Subsidiaries
     Guaranty"),  and the US  Borrowers/Subsidiaries  Guaranty  shall be in full
     force and effect.

          (h) US Pledge Agreement. On the Initial Borrowing Date, each US Credit
     Party shall have duly  authorized,  executed  and  delivered  the US Pledge
     Agreement in the form of Exhibit H (as  modified,  supplemented  or amended
     from time to time, the "US Pledge  Agreement")  and shall have delivered to
     the  Collateral  Agent,  as  pledgee  thereunder,  all of the  Certificated
     Securities,  if any, referred to (and as defined) therein and owned by such
     US Credit Party  (other than any  Certificated  Securities  with respect to
     Silgan's Foreign Subsidiaries organized under the laws of Mexico so long as
     same are in the process of being  dissolved),  (x) endorsed in blank in the
     case of  promissory  notes  constituting  Certificated  Securities  and (y)
     together  with  executed  and undated  stock  powers in the case of capital
     stock  constituting  Certificated  Securities,  and the US Pledge Agreement
     shall be in full force and effect.

          (i) US Security  Agreement.  On the Initial  Borrowing  Date,  each US
     Credit  Party shall have duly  authorized,  executed and  delivered  the US
     Security  Agreement in the form of Exhibit I (as modified,  supplemented or
     amended from time to time the "US Security Agreement") covering all of such
     US Credit  Party's  present  and future US Security  Agreement  Collateral,
     together with:

               (1) proper  Financing  Statements  (Form UCC-1 or the appropriate
          equivalent)  for filing under the UCC of each  jurisdiction  as may be
          necessary  or, in the opinion of the  Collateral  Agent,  desirable to
          perfect  the  security  interests  purported  to be  created by the US
          Security Agreement;

               (2) certified  copies of Requests for Information or Copies (Form
          UCC-11),  or  equivalent  reports,  listing  all  effective  Financing
          Statements  that name any US Credit Party or Silgan Lodi as debtor and
          that are filed in the  jurisdictions  referred to in clause (1) above,
          together with copies of such other Financing  Statements  filed in any
          other  jurisdiction  that name any US Credit  Party or Silgan  Lodi as
          debtor (none of which shall cover the US Security Agreement Collateral
          except to the extent evidencing Permitted Liens); and

               (3)  evidence  that  all  other  actions  necessary  or,  in  the
          reasonable  opinion of the Collateral Agent,  desirable to perfect and
          protect  the  security  interests  purported  to be  created by the US
          Security Agreement have been taken;

and the US Security Agreement shall be in full force and effect.

          (j) Adverse  Change,  etc. (i) Since December 31, 2004,  nothing shall
     have  occurred  (and  neither any Agent nor the  Lenders  shall have become
     aware of any facts or conditions not  previously  known) which any Agent or
     the  Required  Lenders  shall  determine  has had, or could  reasonably  be
     expected  to have,  (i) a  material  adverse  effect  on (x) the  rights or
     remedies of the Administrative  Agent or the Lenders hereunder or under the
     other  Credit  Documents  or (y) the ability of any Credit Party to perform
     its  obligations to

                                      -52-
<PAGE>

     the Administrative Agent or the Lenders hereunder or under the other Credit
     Documents or (ii) a Material Adverse Effect.

          (ii)  On or  prior  to  the  Initial  Borrowing  Date,  all  necessary
     governmental  (domestic  and foreign) and  material  third party  approvals
     and/or  consents in connection  with the  transactions  contemplated by the
     Credit  Documents  and  otherwise  referred to herein or therein shall have
     been  obtained and remain in effect,  and all  applicable  waiting  periods
     shall  have  expired  without  any  action  being  taken  by any  competent
     authority  which  restrains,   prevents  or  imposes   materially   adverse
     conditions upon the  consummation of the  transactions  contemplated by the
     Credit Documents and otherwise referred to herein or therein. Additionally,
     there shall not exist any judgment,  order,  injunction or other  restraint
     issued or filed or a hearing seeking  injunctive  relief or other restraint
     pending or notified  prohibiting or imposing  materially adverse conditions
     upon  the  consummation  of the  transactions  contemplated  by the  Credit
     Documents, the making of the Loans or issuance of any Letters of Credit.

          (iii) No  consents  or  approvals  shall be required to be obtained by
     Silgan from the holders of the 6-3/4%  Senior  Subordinated  Debentures  in
     connection  with the  entering  into of this  Agreement or any of the other
     documents  referred  herein  (including,  without  limitation,  any  of the
     Security  Documents)  and the incurrence of all Loans  hereunder.  The full
     amount of the Loans may be incurred  under the 6-3/4%  Senior  Subordinated
     Debenture  Indenture and all Obligations  incurred  hereunder and under the
     other Credit Documents  constitute  "Senior  Indebtedness"  and "Designated
     Senior  Indebtedness"  for  purposes  of  the  6-3/4%  Senior  Subordinated
     Debenture Indenture.  The Administrative Agent shall have received evidence
     (including  appropriate  legal  opinions  and a  certificate  of the  chief
     financial  officer or  treasurer  of Silgan) in form,  scope and  substance
     reasonably  satisfactory  to it that the  matters  set forth in this clause
     (iii) have been satisfied.

          (k)  Litigation.  On the Initial  Borrowing Date, no litigation by any
     entity  (private  or  governmental)  shall be  pending or  threatened  with
     respect to this  Agreement  or any  documentation  executed  in  connection
     herewith or the transactions  contemplated hereby or which any Agent or the
     Required  Lenders shall  determine  could  reasonably be expected to have a
     Material Adverse Effect.

          (l) Fees, etc. On the Initial Borrowing Date, each Borrower shall have
     paid to each  Agent,  each Joint Lead  Arranger  and the Lenders all costs,
     fees and expenses (including, without limitation, reasonable legal fees and
     expenses)  payable to each Joint Lead Arranger,  each Agent and the Lenders
     to the extent then due.

          (m) Financial Projections; Pro Forma Balance Sheet. On or prior to the
     Initial   Borrowing   Date,   there  shall  have  been   delivered  to  the
     Administrative Agent (i) detailed projected financial statements for Silgan
     and  its  Subsidiaries  for the  period  through  December  31,  2012  (the
     "Projections"),  which Projections  shall reflect the forecasted  financial
     condition and results of operations  of Silgan and its  Subsidiaries  after
     giving effect to the transactions  contemplated hereby and (ii) a pro forma
     consolidated  balance  sheet  as of  March  31,  2005  of  Silgan  and  its
     Subsidiaries after giving effect to the

                                      -53-
<PAGE>

     transactions contemplated hereby, which Projections and balance sheet shall
     be in form and  substance  reasonably  satisfactory  to the  Agents and the
     Required  Lenders.  On the Initial  Borrowing Date, each Borrower  believes
     that the  Projections  were  prepared in good faith  based upon  reasonable
     assumptions,  it being recognized,  however,  that projections as to future
     events  are not to be viewed as facts and that  actual  results  during the
     period or periods covered thereby may differ from the projected results and
     that the differences may be material.

          (n)  Insurance.  On the  Initial  Borrowing  Date,  Silgan  shall have
     delivered to the  Administrative  Agent  certificates  from the  respective
     insurer with respect to each insurance policy listed in Schedule III, which
     certificates  shall  name the  Collateral  Agent as an  additional  insured
     and/or  loss  payee  and  shall  state  that  such  insurance  shall not be
     cancelled  without at least 30 days' prior written notice by the respective
     insurer to the Collateral Agent.

          5.02 Conditions to All Credit Events. The obligation of each Lender to
make  any  Loans  (including,  without  limitation,  Loans  made on the  Initial
Borrowing Date),  and of each Issuing Lender to issue any Letters of Credit,  is
subject  at the time of each  such  Credit  Event,  to the  satisfaction  of the
following conditions:

          (a) No  Default.  At the  time of each  such  Credit  Event  and  also
     immediately  after giving effect  thereto,  there shall exist no Default or
     Event of Default.

          (b)  Representations  and Warranties.  At the time of each such Credit
     Event and also immediately after giving effect thereto, all representations
     and warranties  contained herein and in the other Credit Documents shall be
     true and correct in all  material  respects  with the same effect as though
     such  representations and warranties had been made on and as of the date of
     such Credit Event (it being  understood and agreed that any  representation
     or  warranty  which by its terms is made as of a  specified  date  shall be
     required to be true and correct in all  material  respects  only as of such
     specified date).

          (c) Notice of Borrowing; Letter of Credit Request. Prior to the making
     of any Loan (other than a Swingline  Loan or a Revolving Loan made pursuant
     to a Mandatory  Borrowing),  the Administrative Agent shall have received a
     Notice of Borrowing  meeting the requirements of Section 1.03(a).  Prior to
     the making of any Swingline Loan, the Swingline  Lender shall have received
     the notice  required by Section  1.03(b)(i).  Prior to the  issuance of any
     Letter  of  Credit  (other  than  the  Existing  Letters  of  Credit),  the
     Administrative  Agent and the respective Issuing Lender shall have received
     a Letter of Credit request meeting the requirements of Section 2.03.

          5.03 No Excess Cash. The  obligation of each Revolving  Lender to make
Revolving  Loans  (other  than  pursuant  to  a  Mandatory  Borrowing)  and  the
obligation of the Swingline  Lender to make Swingline  Loans, in each case shall
be subject to the  satisfaction  of the condition  that at the time of each such
Credit Event and  immediately  after giving effect  thereto,  the sum of (i) the
aggregate  amount  of all cash  and  Cash  Equivalents  held by  Silgan  and its
Domestic  Subsidiaries  at such  time plus (ii) the  Foreign  Intercompany  Loan
Amount at such time (in each case after giving effect to the  incurrence of such
Credit Event and the application

                                      -54-
<PAGE>

of proceeds  therefrom  and any other cash or Cash  Equivalents  on hand (to the
extent such proceeds and/or other cash or Cash Equivalents are actually utilized
by Silgan and/or any Subsidiary of Silgan on the  respective  date of incurrence
of the respective  Credit Event for a permitted purpose other than an investment
in Cash Equivalents)) shall not exceed $150,000,000.

          5.04 Additional  Revolving Borrowers;  Foreign Borrowers;  etc. (a) At
any time that Silgan desires that an additional Wholly-Owned Domestic Subsidiary
of Silgan become a Revolving Borrower  hereunder,  such Revolving Borrower shall
satisfy the following conditions at the time it becomes a Revolving Borrower:

          (i) the consent of the  Administrative  Agent shall have been obtained
     (which consent shall not be unreasonably withheld or delayed);

          (ii) to the extent  requested by any Lender or the  Swingline  Lender,
     such Revolving  Borrower shall have executed and delivered  Revolving Notes
     and Swingline Notes satisfying the conditions set forth in Section 1.05;

          (iii) such  Revolving  Borrower  shall have  executed and delivered an
     Election to Become a Revolving  Borrower in the form of Exhibit J-1,  which
     shall be in full force and effect; and

          (iv)  to  the  extent  any  of  the  documents,   writings,   records,
     instruments,  consents  and  opinions  that  would  have been  required  by
     Sections  5.01(c)  and (d) if such  Revolving  Borrower  had  been  subject
     thereto on the Initial  Borrowing Date had not been  heretofore  delivered,
     such  items  shall  have  been   delivered  to,  and  shall  be  reasonably
     satisfactory to, the Administrative Agent.

          (b) At any  time  that  Silgan  desires  that a  Wholly-Owned  Foreign
Subsidiary  of  Silgan  become  a  Foreign  Revolving   Borrower  or  a  Foreign
Incremental Term Loan Borrower hereunder,  such Wholly-Owned  Foreign Subsidiary
shall  satisfy  the  following  conditions  at the  time it  becomes  a  Foreign
Revolving Borrower or a Foreign Incremental Term Loan Borrower,  as the case may
be:

          (i) (x) the  consent  of the  Administrative  Agent  shall  have  been
     obtained (which consent shall not be unreasonably  withheld or delayed) and
     (y) in the case of a Foreign Revolving  Borrower,  each Revolving Lender at
     that time shall be permitted  by, and shall have  theretofore  received all
     required  governmental  approvals and licenses under,  applicable law to be
     able to make  loans  to  Persons  organized  under  (or  domiciled  in) the
     jurisdiction of organization (or the domicile,  as the case may be) of such
     proposed Foreign Revolving Borrower;

          (ii) to the extent requested by any Lender or the Swingline Lender (as
     applicable),  such  Foreign  Borrower  shall have  executed  and  delivered
     Incremental  Term Notes,  Revolving Notes and/or Swingline Notes satisfying
     the applicable conditions set forth in Section 1.05;

                                      -55-
<PAGE>

          (iii) such  Foreign  Borrower  shall have  executed  and  delivered an
     Election  to Become a Foreign  Borrower in the form of Exhibit  J-2,  which
     shall be in full force and effect;

          (iv)  to  the  extent  any  of  the  documents,   writings,   records,
     instruments,  consents  and  opinions  that  would  have been  required  by
     Sections  5.01(c) and (d) if such Foreign Borrower had been subject thereto
     on the Initial Borrowing Date had not been heretofore delivered, such items
     shall have been delivered to, and shall be reasonably  satisfactory to, the
     Administrative Agent;

          (v) if and to the extent  permitted by applicable law (after complying
     with any "whitewash" and other applicable proceedings),  all Obligations of
     such  Foreign  Borrower  under the Credit  Documents  shall be  guaranteed,
     pursuant to a guaranty reasonably satisfactory in form and substance to the
     Administrative  Agent (each a "Related Foreign Company Guaranty"),  by each
     member of the Related Foreign Company Group of such Foreign  Borrower (each
     such member providing such guaranty, a "Related Foreign Company Guarantor")
     as well as by any other  existing  Foreign  Credit  Party  (subject to such
     exceptions as may be reasonably  acceptable to the  Administrative  Agent);
     and

          (vi) if and to the extent permitted by applicable law (after complying
     with any "whitewash" and other applicable proceedings),  all Obligations of
     such Foreign Borrower under the Credit Documents and all Obligations of the
     Related  Foreign  Company  Guarantors,  as well as all other Foreign Credit
     Parties,  under the Related  Foreign Company  Guarantees  shall be secured,
     pursuant to documentation  reasonably satisfactory in form and substance to
     the  Administrative  Agent (the "Foreign Security  Documents"),  by a first
     priority   perfected  security  interest  in  the  assets  of  such  Person
     (including,  without  limitation,  personal  property  (whether tangible or
     intangible)  and capital  stock and other equity  interests),  in each case
     subject  to  such  exceptions  as  may  be  reasonably  acceptable  to  the
     Administrative  Agent  (including an exception for real estate);  provided,
     however,  except as may be  provided  in the  respective  Foreign  Security
     Documents  with respect to  the exercise of remedies,  no filings  shall be
     required  with  respect  to  intellectual  property in  the  United  States
     Patent and  Trademark  Office,  the  United States  Copyright Office or any
     similar office in any foreign country.

Notwithstanding  the foregoing,  no Wholly-Owned  Subsidiary of Silgan organized
under the laws of Canada (or any province thereof) may become a Foreign Borrower
pursuant  to  this  Section  5.04(b).  Upon  Silgan's  written  request  to  the
Administrative  Agent to add a  Wholly-Owned  Foreign  Subsidiary of Silgan as a
Foreign Revolving Borrower as provided above, (i) the Administrative Agent shall
promptly  deliver  a copy of such  request  to each  Revolving  Lender  and (ii)
promptly after such Revolving  Lender's receipt of such request,  such Revolving
Lender will notify the Administrative  Agent and Silgan in writing as to whether
or not such  Revolving  Lender is permitted  to make loans to Persons  organized
under (or domiciled in) the  jurisdiction of organization  (or the domicile,  as
the  case  may  be) of  such  proposed  Foreign  Revolving  Borrower  (it  being
understood   that  (x)  to  the  extent  any  Revolving   Lender   notifies  the
Administrative  Agent and Silgan that such Revolving  Lender is not permitted to
make such loans, the proposed Foreign  Revolving  Borrower may not be added as a
Foreign  Revolving  Borrower  hereunder until such time as all Revolving Lenders
are permitted to make such loans to

                                      -56-
<PAGE>

the proposed  Foreign  Revolving  Borrower and (y) any Revolving Lender who does
not so respond  to the  Administrative  Agent and Silgan  shall be deemed to not
have  the  necessary   approvals   and/or   licenses   required   under  Section
5.04(b)(i)(y)).

          5.05 Incremental Term Loans;  Incremental  Revolving Loan Commitments.
(a) Prior to the  incurrence of any  Incremental  Term Loans,  Silgan shall have
satisfied (or caused to be satisfied) all of the applicable conditions set forth
in Section 1.14.

          (b)  Prior  to  the  obtaining  of  any  Incremental   Revolving  Loan
Commitments,  Silgan shall have satisfied (or caused to be satisfied) all of the
applicable conditions set forth in Section 1.15.

          The  acceptance  of  the  benefits  of  each  Credit  Event  (and  the
occurrence of the Initial Borrowing Date) shall constitute a representation  and
warranty by each of the  Borrowers to the  Administrative  Agent and each of the
Lenders  that all the  applicable  conditions  specified  in this Section 5 with
respect to such Credit Event are  satisfied  as of that time.  All of the Notes,
certificates,  legal opinions and other documents and papers referred to in this
Section 5, unless otherwise specified,  shall be delivered to the Administrative
Agent at the  applicable  Notice  Office for the  account of each of the Lenders
and,  except for the Notes,  in  sufficient  counterparts  in the case of Credit
Documents or copies for each of the Lenders and shall be reasonably satisfactory
in form and substance to the Required Lenders.

          Section 6.  Representations  Warranties  and  Agreements.  In order to
induce the Lenders to enter into this  Agreement and to make the Loans and issue
or participate in Letters of Credit,  each of the Borrowers  makes the following
representations, warranties and agreements as to itself and its Subsidiaries, in
each case  after  giving  effect  to the  transactions  to occur on the  Initial
Borrowing  Date,  all of which shall  survive the execution and delivery of this
Agreement  and the Notes and the  making  of the Loans and the  issuance  of the
Letters of Credit,  with the  occurrence  of each Credit  Event on and after the
Initial Borrowing Date being deemed to constitute a representation  and warranty
that the  matters  specified  in this  Section  6 are true  and  correct  in all
material  respects  on and as of the Initial  Borrowing  Date and on the date of
each such Credit Event (it being  understood and agreed that any  representation
or warranty  which by its terms is made as of a specified date shall be required
to be true and correct in all material respects only as of such specified date):

          6.01  Organizational  Status.  Each  Credit  Party  and  each  of  its
Subsidiaries  (i)  is  a  duly  organized  and  validly  existing   corporation,
partnership or limited liability  company,  as the case may be, in good standing
under the laws of the jurisdiction of its organization,  (ii) has the corporate,
partnership  or  limited  liability  company,  as the  case  may be,  power  and
authority  to own its  property and assets and to transact the business in which
it is engaged and presently  proposes to engage and (iii) is duly qualified as a
foreign  corporation,  partnership or limited liability company, as the case may
be, and in good standing in each  jurisdiction  where the ownership,  leasing or
operation   of  property  or  the  conduct  of  its   business   requires   such
qualification,  except  in  those  jurisdictions  where  the  failure  to  be so
qualified  could not  reasonably be expected to, either  individually  or in the
aggregate, have a Material Adverse Effect.

                                      -57-
<PAGE>

          6.02  Power  and  Authority.  Each  Credit  Party  has the  corporate,
partnership  or  limited  liability  company,  as the  case  may be,  power  and
authority to execute,  deliver and carry out the terms and provisions of each of
the Credit Documents to which it is party and has taken all necessary corporate,
partnership  or  limited  liability  company,  as the  case  may be,  action  to
authorize the execution,  delivery and  performance by it of each of such Credit
Documents.  Each Credit Party has duly executed and delivered each of the Credit
Documents to which it is party and each of such Credit Documents constitutes its
legal,  valid and binding  obligation  enforceable in accordance with its terms,
except to the extent that the  enforcement  thereof may be limited by applicable
bankruptcy,   insolvency,   reorganization   or  other  similar  laws  affecting
creditors' rights generally and by equitable  principles  (regardless of whether
enforcement is sought in equity or at law).

          6.03 No Violation.  Neither the execution,  delivery or performance by
any Credit Party of any Credit  Document to which it is a party,  nor compliance
by it with any of the terms and  provisions  thereof,  (i) will  contravene  any
applicable provision of any law, statute, rule or regulation or any order, writ,
injunction  or decree of any court or  governmental  instrumentality,  (ii) will
conflict  or be  inconsistent  with or result in any breach of any of the terms,
covenants, conditions or provisions of, or constitute a default under, or result
in the creation or  imposition  of (or the  obligation  to create or impose) any
Lien  (except  pursuant to the Security  Documents)  upon any of the property or
assets of such Credit Party or any of its Subsidiaries  pursuant to the terms of
any indenture,  mortgage, deed of trust, credit agreement, loan agreement or any
other material  agreement,  contract or instrument to which such Credit Party or
any of its  Subsidiaries  is a party or by which  it or any of its  property  or
assets  is bound  or to  which it may be  subject  or  (iii)  will  violate  any
provision  of  the  certificate  of  incorporation  or  by-laws  (or  equivalent
organizational documents) of such Credit Party or any of its Subsidiaries.

          6.04 Governmental  Approvals.  No order, consent,  approval,  license,
authorization  or  validation  of, or filing,  recording  or  registration  with
(except as have been  obtained or made and except for any  filings of  financing
statements and other documents required by the Security Documents,  all of which
have been (or, as and to the extent set forth in Section  6.05,  will be) made),
or  exemption  by,  any  governmental  or  public  body  or  authority,  or  any
subdivision  thereof,  is required to  authorize,  or is required in  connection
with, (i) the execution, delivery and performance of any Credit Document or (ii)
the legality,  validity,  binding  effect or  enforceability  of any such Credit
Document (it being  understood and agreed that the  representation  and warranty
made under this Section 6.04 with respect to the pledge of the equity  interests
of a Foreign  Subsidiary of Silgan pursuant to a US Security Document is limited
to those orders,  consents,  approvals,  licenses,  authorization,  validations,
filings, recordings,  registrations or exemptions that may be required under the
laws of the United States or any State thereof).

          6.05 Security  Documents.  (a) The security interests created in favor
of the Collateral  Agent for the benefit of the Secured  Creditors  under the US
Pledge Agreement  constitute first priority  perfected security interests in the
US Pledge Agreement  Collateral  referred to therein to the extent that the laws
of the United States or any State thereof  govern the creation and perfection of
any such security interests,  and such US Pledge Agreement Collateral is subject
to no Lien of any other Person. No consents,  filings or recordings are required
under the laws of the United  States or any State  thereof in order to  perfect,
and/or maintain the

                                      -58-
<PAGE>

perfection  and priority of, the security  interests  purported to be created by
the US Pledge Agreement.

          (b) The US  Security  Agreement  creates,  in favor of the  Collateral
Agent for the benefit of the Secured Creditors, a valid and enforceable security
interest in and Lien on all of the US Security Agreement  Collateral referred to
therein,  and,  upon the proper filing of UCC  financing  statements  and/or the
Collateral Agent obtaining  "control" (within the meaning of the UCC) of certain
US Security Agreement  Collateral (which (x) filings shall have been made within
ten days after the Initial Borrowing Date or, if later,  within ten days after a
US Credit  Party  becomes a party to the US  Security  Agreement  or (y) control
shall have been  obtained  as, and to the  extent,  required  by the US Security
Agreement),  the Collateral Agent for the benefit of the Secured  Creditors will
have a fully  perfected  security  interest in and Lien on all the respective US
Credit Parties' right,  title and interest in all of such US Security  Agreement
Collateral  (other than in any  commercial  tort claims not listed on Annex H to
the US Security Agreement or any supplement thereto delivered pursuant to the US
Security  Agreement) to the extent that such security interests may be perfected
by the filing of UCC  financing  statements  or by the  Collateral  Agent having
"control",  superior to and prior to the rights and Liens (other than  Permitted
Liens) of all third  Persons and subject to no other Liens other than  Permitted
Liens. Except as have been obtained or made and except for the filing of the UCC
financing  statements  described  above in this  Section  6.05(b),  no consents,
filings or recordings  are required to maintain the  perfection  and priority of
the  security  interests  purported  to be created by the US Security  Agreement
(other  than in any  commercial  tort  claims  not  listed  on Annex H to the US
Security  Agreement  or any  supplement  thereto  delivered  pursuant  to the US
Security  Agreement).  At the time of the  granting  of any  security  interests
pursuant to the US Security Agreement, the respective US Credit Party thereunder
shall have good and  marketable  title to all US Security  Agreement  Collateral
referred to therein free and clear of all Liens except those  described above in
this Section 6.05.

          (c) The Foreign Security  Documents,  after the execution and delivery
thereof,  will  create in favor of the  Collateral  Agent for the benefit of the
respective  Secured  Creditors,  a  valid  and  enforceable  perfected  security
interest  in  and  Lien  on all of the  Foreign  Collateral  specified  therein,
superior to and prior to the rights and Liens of all third  Persons  (other than
Permitted  Liens) and subject to no other Liens other than Permitted  Liens. The
respective  Foreign  Credit Party will have good and  marketable  title to, or a
valid Leasehold interest in, as applicable,  the respective Foreign  Collateral,
free and clear of all Liens, except those described in the preceding sentence.

          (d)  The  Additional  Security  Documents,  after  the  execution  and
delivery thereof,  will create, in favor of the Collateral Agent for the benefit
of the Secured Creditors referred to therein, a valid and enforceable  perfected
security  interest  in and  Lien  on all of the  Additional  Collateral  covered
thereby,  superior  to and prior to the  rights  and Liens of all third  Persons
(other than Permitted  Liens) and subject to no other Liens other than Permitted
Liens. The respective  Credit Party will have good and marketable title to, or a
valid  Leasehold   interest  in,  as  applicable,   the  respective   Additional
Collateral, free and clear of all Liens, except those described in the preceding
sentence.

                                      -59-
<PAGE>

          6.06 Insurance.  Schedule III sets forth, as of the Initial  Borrowing
Date, a listing of all  insurance  maintained  by each of the  Borrowers and its
Subsidiaries, with the amounts insured set forth therein.

          6.07  Financial   Statements;   Financial  Condition;   etc.  (a)  The
statements of consolidated and consolidating  financial  condition of Silgan and
its  Subsidiaries  at  December  31,  2004 and  March 31,  2005 and the  related
consolidated and consolidating  statements of income and cash flow of Silgan and
its Subsidiaries for the fiscal year and three-month  period ended on such date,
as the case may be (which (x) in the case of the  financial  statements  for the
fiscal year ended on December 31, 2004, have been certified by Ernst & Young LLP
and (y) in the case of all  such  financial  statements,  have  heretofore  been
furnished to the Lenders), present fairly the consolidated financial position of
Silgan and its  Subsidiaries  at the date of such statements and for the periods
covered thereby and have been prepared in accordance with accounting  principles
generally  accepted  in the United  States and  practices  consistently  applied
subject, in the case of the consolidated  financial statements of Silgan for its
fiscal quarter ended March 31, 2005, to normal year-end audit  adjustments  (all
of which are of a  recurring  nature and none of which,  individually  or in the
aggregate,  would be material) and the absence of footnotes.  Since December 31,
2004,  nothing has  occurred  that has had, or could  reasonably  be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

          (b) On the  Initial  Borrowing  Date and  after  giving  effect to the
transactions and financings  contemplated  hereby,  (i) the sum of the assets of
each of Silgan and its  Subsidiaries  (taken as a whole) and each Borrower (on a
stand alone basis), at a fair valuation, will exceed its respective liabilities,
including  contingent  liabilities,  (ii)  each of Silgan  and its  Subsidiaries
(taken  as a  whole)  and each  Borrower  (on a stand  alone  basis)  will  have
sufficient  capital with which to conduct its  respective  businesses  and (iii)
each of Silgan and its  Subsidiaries  (taken as a whole) and each Borrower (on a
stand alone basis) will not have  incurred  debts,  and does not intend to incur
debts, beyond its ability to pay such debts as they mature. For purposes of this
Section  6.07(b),  "debt" means any liability on a claim,  and "claim" means (x)
any  right to  payment,  whether  or not  such  right is  reduced  to  judgment,
liquidated,  unliquidated,  fixed,  contingent,  matured,  unmatured,  disputed,
undisputed,  legal,  equitable,  secured  or  unsecured,  or (y) any right to an
equitable  remedy  for  breach of  performance  if such  breach  gives rise to a
payment,  whether  or not such  right  to an  equitable  remedy  is  reduced  to
judgment, fixed, contingent,  matured, unmatured,  disputed, undisputed, secured
or unsecured.

          (c) Except as fully  disclosed in the financial  statements  delivered
pursuant to clause (ii) of the first sentence of Section 5.01(m) and pursuant to
Section 6.07(a),  there were as of the Initial  Borrowing Date no liabilities or
obligations  with  respect  to Silgan or any of its  Subsidiaries  of any nature
whatsoever  (whether absolute,  accrued,  contingent or otherwise and whether or
not due), which, either  individually or in the aggregate,  would be material to
Silgan and its Subsidiaries  taken as a whole. As of the Initial Borrowing Date,
each Borrower knows of no Material Loss Contingency (as defined in Statements of
Financial Accounting Standards No. 5) as to Silgan and its Subsidiaries taken as
a whole.

          6.08  Litigation.  There  are no  actions,  suits,  investigations  or
proceedings pending or, to the best of the knowledge of any Borrower, threatened
(i) with respect to any

                                      -60-
<PAGE>

Credit Document or (ii) that are reasonably likely to have, either  individually
or in the aggregate, a Material Adverse Effect.

          6.09  True and  Complete  Disclosure.  To the best of each  Borrower's
knowledge  after due inquiry,  this Agreement and all other written  information
furnished to the Lenders by or on behalf of the Borrowers in connection herewith
(other  than the  Projections)  did not  taken  as a whole  contain  any  untrue
statement of material fact or omit to state a material  fact  necessary in order
to make the information contained herein and therein not misleading.

          6.10 Use of Proceeds;  Margin  Regulations.  (a) All proceeds of the A
Term  Loans and B Term  Loans  shall be used (i) to  finance  the  repayment  of
amounts owing pursuant to the Existing Credit Agreement and (ii) to pay the fees
and expenses incurred in connection with the transactions  contemplated  hereby.
All  proceeds  of  Incremental  Term  Loans  incurred  by Silgan  and each other
Incremental  Term Loan  Borrower  shall be used for  working  capital  and other
general  corporate  purposes  (including,  without  limitation,  (i) to  finance
Permitted Acquisitions (and to pay the fees and expenses related thereto) and to
refinance any  Indebtedness  assumed as part of any such Permitted  Acquisitions
(and to pay all accrued and unpaid  interest  thereon,  any  prepayment  premium
associated  therewith  and the  fees and  expenses  related  thereto)),  (ii) to
finance  Permitted Debt  Repurchases (and to pay all accrued and unpaid interest
thereon,  any prepayment premium associated  therewith and the fees and expenses
related  thereto)  and  (iii)  to  prepay  outstanding  Revolving  Loans  and/or
Swingline Loans).

          (b) The proceeds of all Revolving  Loans and Swingline  Loans incurred
by each Revolving Borrower shall be utilized (i) (x) to finance the repayment of
amounts owing pursuant to the Existing Credit  Agreement and (y) to pay the fees
and expenses  incurred in connection with the transactions  contemplated  hereby
and (ii) for such Revolving  Borrower's  general  corporate and working  capital
purposes  and for the  general  corporate  and working  capital  purposes of its
respective  Subsidiaries,  including the payment of Dividends,  the repayment of
certain Indebtedness,  the financing of Permitted Acquisitions and the making of
Investments, in each case to the extent and for the purposes permitted herein.

          (c) No part of any Credit Event (or the proceeds thereof) will be used
by any Borrower or any Subsidiary  thereof to purchase or carry any Margin Stock
or to extend  credit to others for the purpose of  purchasing  or  carrying  any
Margin Stock except to the extent  permitted by Section  8.03(iv).  The value of
all Margin Stock at any time owned by Silgan and its Subsidiaries  does not, and
will not,  exceed 25% of the value of the assets of Silgan and its  Subsidiaries
taken as a whole.  Neither  the  making of any Loan nor the use of the  proceeds
thereof  nor the  occurrence  of any  other  Credit  Event  will  violate  or be
inconsistent  with  the  provisions  of  Regulations  T, U or X of the  Board of
Governors of the Federal Reserve System.

          6.11 Tax Returns and  Payments.  Each of the Borrowers and each of its
Subsidiaries has timely filed with the appropriate  taxing authority all federal
tax returns and all other material tax returns,  domestic and foreign,  required
to be filed by it and has paid all  material  income  taxes  payable by it which
have become due  pursuant to such tax returns and all other  material  taxes and
assessments  payable  by it which  have  become  due,  other  than those not yet
delinquent and except for those  contested in good faith.  Each of the Borrowers
and each of its Subsidiaries has paid, or has provided adequate reserves (in the
good faith  judgment of the

                                      -61-
<PAGE>

management of such  Borrower) for the payment of, all federal and other material
income taxes,  domestic and foreign,  applicable  for all prior fiscal years and
for the current fiscal year to the date hereof.

          6.12  Compliance   with  ERISA.   (a)  Except  as  could  not,  either
individually  or in the  aggregate,  reasonably  be  expected to have a Material
Adverse  Effect:  each Plan is in compliance with ERISA and the Code; no Plan is
insolvent  or  in  reorganization;  no  Plan  other  than  a  Plan  which  is  a
multiemployer  plan (as defined in Section  4001(a)(3) of ERISA) has an Unfunded
Current  Liability;  no Plan has an accumulated or waived funding  deficiency or
has applied for an extension of any  amortization  period  within the meaning of
Section 412 of the Code; no Borrower nor any  Subsidiary of any Borrower nor any
ERISA Affiliate has incurred any liability to or on account of a Plan which is a
single-employer  plan (as defined in Section  4001(a)(15) of ERISA)  pursuant to
Section  4062,  4063 or 4064 of ERISA or a  multiemployer  plan (as  defined  in
Section  4001(a)(3) of ERISA) pursuant to Section 515, 4201 or 4204 of ERISA; no
proceedings  have been instituted to terminate any Plan; and no condition exists
which  presents a risk to any Borrower or any  Subsidiary of any Borrower or any
ERISA  Affiliate of incurring a liability to or on account of a Plan pursuant to
any of the  foregoing  Sections of ERISA or the Code;  no lien imposed under the
Code or ERISA on the assets of any Borrower or any Subsidiary of any Borrower or
any ERISA Affiliate exists or is likely to arise on account of any Plan; each of
the Borrowers and their  Subsidiaries  may terminate  contributions to any other
employee  benefit  plans  maintained  by them  (except as  provided  pursuant to
collective bargaining  agreements) without incurring any liability to any person
interested therein other than with respect to benefits accrued prior to the date
of  termination;  and each group  health  plan (as defined in 45 Code of Federal
Regulations  Section  160.103)  which covers or has covered  employees or former
employees  of the  Borrower,  any  Subsidiary  of  the  Borrower,  or any  ERISA
Affiliate,  has at all times been operated in compliance  with the provisions of
the  Health  Insurance  Portability  and  Accountability  Act of  1996  and  the
regulations  promulgated  thereunder.  Notwithstanding  anything to the contrary
contained in this Section 6.12, all  representations and warranties made in this
Section 6.12 with respect to a Plan that is a multiemployer  plan (as defined in
Section 4001(a)(3) of ERISA) shall be to the best knowledge of the Borrowers.

          (b)  Except as could not,  either  individually  or in the  aggregate,
reasonably be expected to have a Material  Adverse Effect:  each Foreign Pension
Plan has been maintained in compliance with its terms and with the  requirements
of any and all applicable laws, statutes,  rules, regulations and orders and has
been  maintained,  where required,  in good standing with applicable  regulatory
authorities;  all  contributions  required to be made with  respect to a Foreign
Pension Plan have been timely made;  neither Silgan nor any of its  Subsidiaries
has incurred any obligation in connection  with the termination of or withdrawal
from any Foreign  Pension  Plan;  and the present  value of the accrued  benefit
liabilities (whether or not vested) under all Foreign Pension Plans,  determined
as of the end of  Silgan's  most  recently  ended  fiscal  year on the  basis of
actuarial assumptions,  each of which is reasonable,  did not exceed the current
value of the assets of such  Foreign  Pension  Plans  allocable  to such benefit
liabilities.

          6.13  Subordination.  The  subordination  provisions  contained in all
notes,  debentures,  indentures and other instruments  entered into or issued in
respect of any Permitted Subordinated  Indebtedness are, or will be, enforceable
against the issuer of the respective

                                      -62-
<PAGE>

security and the holders thereof and the Loans and all other Obligations are, or
will be, within the definition of "Senior Indebtedness" contained therein.

          6.14 Subsidiaries. Schedule IV sets forth, as of the Initial Borrowing
Date, (i) each of the  Subsidiaries of Silgan,  (ii) the legal name of each such
Subsidiary,  (iii)  the  jurisdiction  of  organization  and the  organizational
identification  number (if any) of each such  Subsidiary and (iv) the percentage
ownership (direct or indirect) of Silgan in each class of capital stock or other
equity  interest  of its  Subsidiaries  and also  identifies  the  direct  owner
thereof.

          6.15  Compliance  with Statutes etc. (a) Each Borrower and each of its
Subsidiaries  is in compliance  with all applicable  statutes,  regulations  and
orders of, and all applicable  restrictions imposed by, all governmental bodies,
domestic or foreign, in respect of the conduct of its business and the ownership
of  its  property  (including  applicable  statutes,   regulations,  orders  and
restrictions relating to environmental  standards and controls),  except for any
failure to be in compliance therewith which could not reasonably be expected to,
either individually or in the aggregate, have a Material Adverse Effect.

          (b) Each Borrower and each of its  Subsidiaries  has complied with all
applicable  federal,  state,  provincial,  foreign and local  environmental laws
(including,  without  limitation,  RCRA and CERCLA),  regulations and ordinances
governing  its  business  products,  properties  or assets  with  respect to all
discharges into the ground and surface water, emissions into the ambient air and
generation,  accumulation,  storage,  treatment,  transportation,   labeling  or
disposal of waste  materials or process  by-products,  and none of the Borrowers
nor any of their Subsidiaries is liable for any penalties, fines or forfeitures.
All material licenses, permits or registrations required for the business of the
Borrowers and their  Subsidiaries,  as presently  conducted,  under any federal,
state or local environmental  laws,  regulations or ordinances have been secured
and each of the Borrowers and their  Subsidiaries  is in substantial  compliance
therewith.   None  of  the  Borrowers  nor  any  of  their  Subsidiaries  is  in
noncompliance  with,  breach of or default  under any  applicable  writ,  order,
judgment, injunction, or decree to which any such Person is a party and no event
has occurred and is continuing  which, with the passage of time or the giving of
notice  or  both,  would  constitute  a  noncompliance,  breach  of  or  default
thereunder.  There are no legal or governmental  proceedings  pending or, to the
best of the Borrowers'  knowledge  after  reasonable  investigation,  threatened
which (a) question the validity,  term or  entitlement of any Borrower or any of
its  Subsidiaries of or to any material permit,  license,  order or registration
required  for the  operation  of any  facility  which any Borrower or any of its
Subsidiaries currently operates and (b) wherein an unfavorable decision,  ruling
or finding could have an adverse effect on the financial viability of any of its
facilities.  To the best of the  Borrowers'  knowledge  and belief,  none of the
Borrowers nor any of their Subsidiaries has disposed of or otherwise  discharged
any hazardous  waste,  toxic  substances or similar  materials,  the disposal of
which could give rise to any liability under applicable  environmental  laws and
regulations.

          Notwithstanding  anything to the contrary in this Section 6.15(b), the
representations and warranties made in this Section 6.15(b) shall only be untrue
if the aggregate effect of all failures,  noncompliances and penalties, fines or
forfeitures  of  the  types  described  above  in  this  Section  6.15(b)  could
reasonably be expected to have a Material Adverse Effect.

                                      -63-
<PAGE>

          (c)  To  the  extent  applicable,   each  Borrower  and  each  of  its
Subsidiaries is in compliance,  in all material  respects,  with (i) the Trading
with Enemy Act, as amended,  and each of the foreign assets control  regulations
of the United  States  Treasury  Department  (31 CFR,  Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto,
and (ii) the Patriot Act.

          6.16  Investment  Company Act.  None of the  Borrowers  nor any of its
Subsidiaries  is  an  "investment  company"  or a  company  "controlled"  by  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

          6.17 Public Utility Holding Company Act. None of the Borrowers nor any
of its  Subsidiaries  is a "holding  company,"  or a  "subsidiary  company" of a
"holding  company," or an "affiliate" of a "holding company" or of a "subsidiary
company"  of a  "holding  company,"  within the  meaning  of the Public  Utility
Holding Company Act of 1935, as amended.

          6.18  Labor  Relations.  None  of  the  Borrowers  nor  any  of  their
respective  Subsidiaries  is engaged in any unfair labor practice  that,  either
individually  or in the  aggregate,  could  reasonably  be  expected  to  have a
Material Adverse Effect. There is (i) no unfair labor practice complaint pending
against any Borrower or any of its Subsidiaries or, to the best knowledge of the
Borrowers,  threatened  against any of them, before the National Labor Relations
Board,  and no  grievance  or  arbitration  proceeding  arising  out of or under
collective  bargaining  agreements is so pending  against any Borrower or any of
its Subsidiaries or, to the best knowledge of the Borrowers,  threatened against
any of them and (ii) no strike,  labor  dispute,  slowdown or  stoppage  pending
against any Borrower or any of its Subsidiaries or, to the best knowledge of the
Borrowers,  threatened  against any Borrower or any of its Subsidiaries,  except
(with  respect  to any matter  specified  in clause  (i) or (ii)  above,  either
individually  or in the  aggregate)  such as could not reasonably be expected to
have a Material Adverse Effect.

          6.19 Patents,  Licenses,  Franchises  and Formulas.  Each Borrower and
each of its  Subsidiaries  owns all the patents,  trademarks,  permits,  service
marks, trade names, copyrights, domain names, licenses, franchises and formulas,
or rights with respect to the  foregoing,  and has obtained  assignments  of all
leases and other rights of whatever nature, necessary for the present conduct of
its business, without any known conflict with the rights of others which, or the
failure  to obtain  which,  as the case may be,  either  individually  or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

          Section 7. Affirmative  Covenants.  Each Borrower covenants and agrees
as to itself and its Subsidiaries that on and after the Effective Date and until
the Total  Commitment  and all Letters of Credit have  terminated and the Loans,
Notes  and  Unpaid  Drawings,   together  with  interest,  Fees  and  all  other
Obligations incurred hereunder and thereunder are paid in full:

          7.01 Information Covenants.  Silgan will furnish to the Administrative
Agent (who will then promptly furnish a copy of same to each Lender):

          (a) Quarterly Financial Statements. Within 60 days (or 120 days in the
     case of the  fourth  fiscal  quarter)  after  the  close of each  quarterly
     accounting  period in each  fiscal  year of Silgan,  the  consolidated  and
     consolidating balance sheets of Silgan and its

                                      -64-
<PAGE>

     Subsidiaries and Unrestricted  Subsidiaries as at the end of such quarterly
     accounting period and the related consolidated and consolidating statements
     of income and cash flow for such  quarterly  accounting  period and for the
     elapsed  portion  of the  fiscal  year  ended  with  the  last  day of such
     quarterly accounting period, in each case setting forth comparative figures
     for the related  periods in the prior  fiscal  year,  all of which shall be
     certified  by the chief  financial  officer,  treasurer  or  controller  of
     Silgan,  subject to normal  year-end audit  adjustments  and the absence of
     footnotes.

          (b) Annual  Financial  Statements.  Within 120 days after the close of
     each fiscal year of Silgan,  the  consolidated  and  consolidating  balance
     sheets of Silgan and its Subsidiaries  and Unrestricted  Subsidiaries as at
     the end of such fiscal year and the related  consolidated and consolidating
     statements  of income  and cash  flow for such  fiscal  year,  in each case
     setting  forth  comparative  figures  for the  preceding  fiscal  year  and
     certified, in the case of the consolidated financial statements, by Ernst &
     Young LLP or such other  independent  registered  public accounting firm of
     recognized  national standing  reasonably  acceptable to the Administrative
     Agent, and in the case of the consolidating  financial  statements,  by the
     chief financial  officer,  treasurer or controller of Silgan,  in each case
     together with a report of such  accounting  firm stating that in the course
     of its  regular  audit  of the  financial  statements  of  Silgan  and  its
     Subsidiaries  and Unrestricted  Subsidiaries,  which audit was conducted in
     accordance with generally accepted auditing standards, such accounting firm
     obtained  no  knowledge  that Silgan or any of its  Subsidiaries  failed to
     comply with any of the terms of Sections 8.03,  8.04,  8.05, 8.07, 8.08 and
     8.09 or, if in the  opinion of such  accounting  firm  Silgan or any of its
     Subsidiaries has failed to comply with any of the terms of any such Section
     and such failure is continuing, a statement as to the nature thereof.

          (c) Management  Letters.  Promptly after Silgan's receipt  thereof,  a
     copy of any  "management  letter"  received by Silgan from its  independent
     registered public accounting firm.

          (d)  Budgets;  Forecasts.  Within 75 days  after the first day of each
     fiscal  year  of  Silgan,  (i)  a  budget  in  form  and  scope  reasonably
     satisfactory to the Administrative  Agent (including budgeted statements of
     income and sources and uses of cash and balance sheets)  prepared by Silgan
     for each of the twelve  months  beginning  on the first day of such  fiscal
     year accompanied by the statement of the chief financial officer, treasurer
     or controller  of Silgan to the effect that, to the best of such  officer's
     knowledge,  the budget is a  reasonable  estimate  for the  period  covered
     thereby, and (ii) a forecast of operations and sources and uses of cash for
     the  five-year  period  beginning  on the  first day of such  fiscal  year,
     setting  forth  the  assumptions   made  in  preparing  such  forecast  and
     accompanied by the statement of the chief financial  officer,  treasurer or
     controller  of Silgan to the  effect  that,  to the best of such  officer's
     knowledge,  the  forecast is a reasonable  estimate for the period  covered
     thereby.

          (e)  Officer's  Certificates.  At  the  time  of the  delivery  of the
     financial   statements   provided  for  in  Sections  7.01(a)  and  (b),  a
     certificate  of the chief  financial  officer,  treasurer or  controller of
     Silgan to the effect that, (A) to the best of such officer's knowledge,  no
     Default or Event of  Default  has  occurred  and is  continuing  or, if any
     Default or

                                      -65-
<PAGE>

     Event of Default has occurred and is continuing,  specifying the nature and
     extent thereof,  which certificate  shall set forth (in reasonable  detail)
     the  calculations  required to establish (i) in the case of the  statements
     delivered  pursuant to Section  7.01(a),  (I) whether the Borrowers were in
     compliance  with the  provisions  of Sections  4.02(f),  4.02(g),  4.02(h),
     4.02(j), 8.03(iii), 8.03(iv),  8.04(xiii),  8.05(xiv), 8.08 and 8.09 at the
     end of such fiscal quarter, (II) the amount of Cumulative  Consolidated Net
     Income, the Net Equity Proceeds Amount, the Permitted Additional Investment
     Basket Amount,  the  Consolidated  Tangible  Assets and the Retained Excess
     Cash  Flow  Amount  at the  end of  such  fiscal  quarter,  and  (III)  the
     Applicable Margin and the Applicable  Commitment  Commission  Percentage at
     such time,  and (ii) in the case of the  statements  delivered  pursuant to
     Section 7.01(b),  (I) the amount of the Excess Cash Flow for the respective
     fiscal year, (II) the amount of any mandatory prepayments and/or commitment
     reductions  required  pursuant  to  Sections  3.03  and/or 4.02 during such
     fiscal  year,  (III)  whether the  Borrowers  were in  compliance  with the
     provisions of Sections 8.01(xxi),  8.02(v),  8.02(vi), 8.03, 8.04, 8.05 and
     8.07 through  8.09,  inclusive,  at the end of such fiscal  year,  (IV) the
     amount of  Cumulative  Consolidated  Net  Income,  the Net Equity  Proceeds
     Amount, the Permitted Additional Investment Basket Amount, the Consolidated
     Tangible Assets and the Retained Excess Cash Flow Amount at the end of such
     fiscal year,  and (V) the Applicable  Margin and the Applicable  Commitment
     Commission  Percentage  at such time and (B) no changes are  required to be
     made to any of Annexes C and F of the US  Security  Agreement  or Annexes A
     through F, inclusive, and Annex H, in each case of the US Pledge Agreement,
     in each case so as to make the information  set forth therein  accurate and
     complete  as of the date of such  certificate,  or to the extent  that such
     information  is no longer  accurate and  complete as of such date,  list in
     reasonable  detail  all  information  necessary  to make all  such  Annexes
     accurate and complete (at which time such Annexes shall be deemed  modified
     to reflect such information).

          (f) Notice of Default or Litigation. Promptly, and in any event within
     three  Business  Days after an officer of any  Borrower  obtains  knowledge
     thereof,  notice of (i) the  occurrence  of any event which  constitutes  a
     Default  or an  Event  of  Default,  (ii) any  litigation  or  governmental
     proceeding  pending  (x) against  any  Borrower or any of its  Subsidiaries
     which could reasonably be expected to have a Material Adverse Effect or (y)
     with respect to any Credit  Document  and (iii) any other event  (including
     any such event  relating  to  environmental  matters)  which is  reasonably
     likely to have a Material Adverse Effect.

          (g) Other  Reports  and  Filings.  Promptly,  copies of all  financial
     information, proxy materials and other information and reports, if any, (i)
     which any Borrower shall file with the  Securities and Exchange  Commission
     or any governmental agencies substituted therefor (the "SEC") or (ii) which
     Silgan shall  deliver to the holders of, or to the trustee with respect to,
     the 6-3/4%  Senior  Subordinated  Debentures  or any  Additional  Permitted
     Indebtedness.

          (h) CanCo Monthly  Reports.  So long as the CanCo  Restrictions are in
     effect, within 30 days after the end of each fiscal month of CanCo, (i) the
     unaudited  balance  sheet of CanCo as at the end of such fiscal month which
     shall be certified by the chief financial officer,  treasurer or controller
     of Silgan or CanCo or by the  president  or  vice-

                                      -66-
<PAGE>

     president of finance of CanCo and (ii) a certificate of the chief financial
     officer,  treasurer or controller of Silgan or CanCo or of the president or
     vice-president of finance of CanCo setting forth (in reasonable detail) (A)
     the calculations  required to establish the CanCo Permitted Debt Amount and
     the aggregate  outstanding  amount of all CanCo Included Debt as at the end
     of such  fiscal  month  and (B) the  aggregate  outstanding  amount  of all
     Revolving  Loans  and  Swingline  Loans  made to  CanCo  and the  aggregate
     outstanding  amount of all  Letter of Credit  Outstandings  in  respect  of
     Letters  of Credit  issued  for the  account  of CanCo as at the end of the
     Business Day immediately preceding the date of such certificate.

          (i) Other  Information.  From time to time, such other  information or
     documents (financial or otherwise) as any Agent or the Required Lenders may
     reasonably request.

          7.02 Books,  Records and Inspections.  Each of the Borrowers will, and
will cause each of its  Subsidiaries to, keep proper books of record and account
in which full, true and correct entries in conformity with accounting principles
generally accepted in the United States (or, in the case of a Foreign Subsidiary
of Silgan,  in the jurisdiction of organization of such Foreign  Subsidiary) and
all  requirements  of law  shall be made of all  dealings  and  transactions  in
relation to its business and  activities.  Each of the Borrowers  will, and will
cause  each  of  its   Subsidiaries   to,   permit   officers   and   designated
representatives of the Administrative  Agent or any Lender to visit and inspect,
under  guidance  of officers of such  Borrower  or such  Subsidiary,  any of the
properties of such Borrower or such Subsidiary,  and, under guidance of officers
of such  Borrower  or such  Subsidiary,  to examine the books of account of such
Borrower or such  Subsidiary  and discuss the affairs,  finances and accounts of
such Borrower or such Subsidiary with, and be advised as to the same by, its and
their officers and independent public accountants (so long as an officer of such
Borrower or Subsidiary is present),  all at such reasonable  times and intervals
and to such  reasonable  extent as the  Administrative  Agent or such Lender may
request upon reasonable  prior notice.  In connection  with the foregoing,  each
Agent and the Lenders agree to keep any information  delivered or made available
by the  Borrowers  which  the  Borrowers  clearly  indicate  to be  confidential
information confidential in accordance with Section 12.15.

          7.03  Maintenance  of Property;  Insurance.  (a) Each of the Borrowers
will, and will cause each of its  Subsidiaries  to, (i) keep all property useful
and  necessary  in its  business  in  reasonable  working  order and  condition,
ordinary  wear and tear  excepted,  (ii)  maintain  with  financially  sound and
reputable  insurance  companies  insurance on all of its property and against at
least such risks and in at least  such  amounts as (in each case) is  consistent
with prudent risk  management  and  industry  practice and (iii)  furnish to the
Administrative Agent and each Lender, upon written request,  full information as
to the insurance carried.

          (b) To the extent  that  insurance  is required  to be  maintained  in
accordance  with clause (a) above in this Section 7.03,  each Borrower will, and
will cause each of the other  Credit  Parties to, at all times keep its property
insured in favor of the Collateral  Agent,  and all policies or certificates (or
certified  copies  thereof)  with  respect  to such  insurance  (and  any  other
insurance  maintained  by such  Borrower  and/or such other Credit  Parties) (i)
shall be endorsed to the Collateral Agent's  satisfaction for the benefit of the
Collateral Agent (including, without

                                      -67-
<PAGE>

limitation, by naming  the  Collateral  Agent as loss  payee  and/or  additional
insured),  (ii) shall state that such  insurance  policies shall not be canceled
without at least 30 days' prior written notice thereof by the respective insurer
to the Collateral Agent, and (iii) shall be deposited with the Collateral Agent.

          7.04  Franchises.  Each of the Borrowers  will, and will cause each of
its  Subsidiaries  to, do or cause to be done, all things  necessary to preserve
and keep in full force and  effect its  existence  and its  rights,  franchises,
licenses and patents, except for those rights, franchises,  licenses and patents
the loss of which, either individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect;  provided,  however, that nothing
in this Section 7.04 shall prevent (i) the  withdrawal by any Borrower or any of
its Subsidiaries of its qualification as a foreign  corporation,  partnership or
limited liability  company,  as the case may be, in any jurisdiction  where such
withdrawal,  either  individually  or in the aggregate,  could not reasonably be
expected to have a Material Adverse Effect or (ii) any transaction  permitted by
Section 8.02.

          7.05  Compliance  with Statutes;  etc. Each of the Borrowers will, and
will cause each of its  Subsidiaries  to, comply with all  applicable  statutes,
regulations  and orders  of, and all  applicable  restrictions  imposed  by, all
governmental  bodies,  domestic  or  foreign,  in respect of the  conduct of its
business  and the  ownership  of its property  (including  applicable  statutes,
regulations,  orders and restrictions  relating to  environmental  standards and
controls), except for any failure to be in compliance therewith which could not,
either  individually  or in the  aggregate,  reasonably  be  expected  to have a
Material Adverse Effect.

          7.06 ERISA.  (a) As soon as possible  and in any event  within 30 days
after any  Borrower or any  Subsidiary  of any  Borrower or any ERISA  Affiliate
knows or has reason to know of any of the  following  events (to the extent that
any such events,  either  individually or in the aggregate,  could reasonably be
expected  to have a  Material  Adverse  Effect):  that a  Reportable  Event  has
occurred  with  respect to a Plan  (except to the extent that such  Borrower has
previously delivered to the Lenders a certificate and notice (if any) concerning
such event pursuant to the next clause hereof);  that a contributing sponsor (as
defined in Section  4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA
is subject to the  advance  reporting  requirement  of PBGC  Regulation  Section
4043.61 (without regard to subparagraph (b)(1) thereof),  and an event described
in subsection  .62, .63,  .64, .65, .66, .67 or .68 of PBGC  Regulation  Section
4043 is  reasonably  expected  to occur  with  respect  to such Plan  within the
following  30  days;  that  with  respect  to a  Plan,  an  accumulated  funding
deficiency  has been incurred or an application is to be or has been made to the
Secretary of the Treasury for a waiver or  modification  of the minimum  funding
standard  (including any required  installment  payments) or an extension of any
amortization  period under  Section 412 of the Code;  that a Plan has been or is
likely to be terminated,  reorganized,  partitioned or declared  insolvent under
Title IV of ERISA;  that a Plan other than a Plan which is a multiemployer  plan
(as defined in Section  4001(a)(3) of ERISA) has an Unfunded Current  Liability;
that  proceedings  have been  instituted  or may  reasonably  be  expected to be
instituted  to terminate a Plan;  or that any  Borrower,  any  Subsidiary of any
Borrower or any ERISA  Affiliate  will incur or is likely to incur any liability
to or on  account  of a Plan  which is a  single-employer  plan (as  defined  in
Section  4001(a)(15)  of ERISA) under  Section 4062,  4063 or 4064 of ERISA,  or
which is a multiemployer  plan (as defined in Section 4001(a)(3) of ERISA) under
Section 515,  4201 or 4204 of ERISA,  Silgan will (in each such

                                      -68-
<PAGE>

case) deliver to the  Administrative  Agent a certificate of the chief financial
officer or treasurer of Silgan  setting forth details as to such  occurrence and
action, if any, which such Borrower or Subsidiary or ERISA Affiliate is required
or proposes to take,  together with any notices required to be given to or filed
with or by such Borrower or Subsidiary,  the ERISA  Affiliate,  the PBGC, a Plan
participant or the Plan administrator with respect thereto.  Silgan will deliver
to the  Administrative  Agent,  upon  request  by the  Administrative  Agent,  a
complete  copy of the annual  report  (Form 5500) of each Plan that is not (i) a
multiemployer  plan (as defined in Section  4001(a)(3)  of ERISA) or (ii) a Plan
which is no longer maintained or contributed to by any Borrower,  any Subsidiary
of any  Borrower  or an ERISA  Affiliate,  in each case which is  required to be
filed with the Internal Revenue Service. Copies of any other notices required to
be delivered to the Lenders  hereunder  shall be delivered no later than 30 days
after the  later of the date such  report  or  notice  has been  filed  with the
Internal Revenue Service or the PBGC, given to Plan  participants or received by
any Borrower or any of its Subsidiaries or any ERISA Affiliate.

          (b) As soon as  possible  and in any event  within  30 days  after any
Borrower or any  Subsidiary  of any Borrower  knows or has reason to know of the
occurrence of any of the  following  events (to the extent that any such events,
either individually or in the aggregate,  could reasonably be expected to have a
Material Adverse  Effect),  Silgan will deliver to the  Administrative  Agent, a
certificate of the chief financial  officer or treasurer of Silgan setting forth
the full details as to such  occurrence  and the action,  if any, that Silgan or
such  Subsidiary  is required or  proposes  to take,  together  with any notices
required or proposed to be given to or filed with or by Silgan,  such Subsidiary
or  a  Foreign  Pension  Plan  participant   with  respect  thereto:   that  any
contribution  required to be made with respect to a Foreign Pension Plan has not
been  timely  made;  or that  Silgan or any  Subsidiary  of Silgan may incur any
liability  pursuant to any Foreign Pension Plan. In addition to any certificates
or notices delivered to the Administrative  Agent pursuant to the first sentence
hereof,  copies of any material  notices received by Silgan or any Subsidiary of
Silgan  with  respect to any  Foreign  Pension  Plan shall be  delivered  to the
Administrative  Agent no later than 30 days after the date such  notice has been
received by Silgan or such Subsidiary, as applicable.

          7.07 End of Fiscal Years; Fiscal Quarters. Each US Borrower will cause
(i) each of its, and each of its Domestic Subsidiaries',  fiscal years to end on
December 31 and (ii) each of its, and each of its Domestic Subsidiaries', fiscal
quarters to end on March 31, June 30, September 30 and December 31.

          7.08 Taxes.  Each of the  Borrowers  will,  and will cause each of its
Subsidiaries  to,  pay when due all taxes  which,  if not paid  when due,  could
reasonably be expected to have a Material  Adverse Effect except as contested in
good faith and by  appropriate  proceedings  if adequate  reserves  (in the good
faith judgment of the management of Silgan) have been  established  with respect
thereto.

          7.09 Additional  Security;  Further  Assurances;  etc. (i) Each of the
Borrowers will, and will cause each of the US Subsidiary  Guarantors and Related
Foreign Company Guarantors to, grant to the Collateral Agent, for the benefit of
the Secured Creditors  described in the Security  Documents to which such Credit
Party is a party,  security  interests  in such  assets and  properties  of such
Credit  Party  (other than Real  Property)  as are not  covered by the  original
Security Documents to which such Credit Party is a party, or as may be requested
from time to

                                      -69-
<PAGE>

time  by the  Required  Lenders  (the  "Additional  Security  Documents").  Such
security  interests  shall  be  granted  pursuant  to  documentation  reasonably
satisfactory in form and substance to the Administrative Agent and shall (except
as  otherwise  consented  to by  the  Required  Lenders)  constitute  valid  and
enforceable  perfected security interests superior to and prior to the rights of
all third Persons and subject to no other Liens,  except  Permitted  Liens.  The
Additional  Security  Documents or other instruments  related thereto shall have
been duly recorded or filed in such manner and in such places as are required by
law to  establish,  perfect,  preserve  and protect  the Liens,  in favor of the
Collateral Agent for the benefit of the respective Secured  Creditors,  required
to be granted pursuant to the Additional  Security Documents and all taxes, fees
and other charges payable in connection  therewith shall have been paid in full;
provided,  however,  except  as  may be  provided  in  the  respective  Security
Documents with respect to the exercise of remedies, no filings shall be required
to be with  respect to  intellectual  property in the United  States  Patent and
Trademark  Office,  the United States  Copyright Office or any similar office in
any  foreign  country.  Notwithstanding  the  foregoing,  (i)  unless  otherwise
permitted (or not  restricted)  by the  applicable  CanCo  Restrictions  then in
effect,  any  Additional  Security  Documents  entered  into by CanCo shall only
secure CanCo's direct  obligations  under the Credit  Documents to which it is a
party,  and (ii) except as, and to the  extent,  provided  in Section  7.10,  no
Foreign  Credit  Party shall be required to guaranty the  Obligations  of any US
Credit  Party or pledge its assets to secure  the  Obligations  of any US Credit
Party.

          (b) Each of the  Borrowers  will,  and will  cause  each of the  other
Credit Parties to, at its own expense, make, execute, endorse, acknowledge, file
and/or  deliver  to the  Collateral  Agent  from  time  to time  such  vouchers,
invoices,   schedules,   confirmatory   assignments,    conveyances,   financing
statements,   transfer   endorsements,   powers   of   attorney,   certificates,
landlord-lender  agreements and other  assurances or  instruments  and take such
further  steps  relating  to the  Collateral  covered  by  any  of the  Security
Documents as the  Collateral  Agent may  reasonably  require.  Furthermore,  the
Borrowers  shall cause to be delivered to the Collateral  Agent such opinions of
counsel  and other  related  documents  as may be  reasonably  requested  by the
Administrative  Agent to  assure  themselves  that  this  Section  7.09 has been
complied with.

          (c) Each US Credit  Party also shall use its  commercially  reasonable
efforts to deliver to the Collateral  Agent (i) fully executed  deposit  account
control  agreements with respect to the US Credit Parties'  deposit accounts as,
and to the extent,  required by the US Security  Agreement,  and (ii) within 180
days after the Initial  Borrowing Date, fully executed  landlord waiver letters,
in form and substance  reasonably  satisfactory  to the Collateral  Agent,  with
respect to the US Credit Parties'  respective  personal  property located on the
Leaseholds set forth on Schedule X.

          (d) Each of the Borrowers  agrees that each action  required  above by
clauses (a) and (b) of this Section 7.09 shall be completed as soon as possible,
but in no event later than 90 days after such action is either  requested  to be
taken by the Administrative  Agent or the Required Lenders or otherwise required
to be taken by the respective Credit Parties, as the case may be.

          (e) At such  time as the  applicable  CanCo  Restrictions  cease to be
effective,  (i) Silgan  will cause  CanCo  Holding to pledge and  deliver to the
Collateral Agent pursuant to the US Pledge Agreement all of the capital stock of
CanCo, (ii) CanCo will execute and deliver to

                                      -70-
<PAGE>

the Administrative Agent a counterpart of the US Borrowers/Subsidiaries Guaranty
and  (iii)  CanCo  will  deliver  to the  Administrative  Agent  such  officer's
certificates,  board of directors  resolutions and opinions of counsel as may be
reasonably   requested  by,  and  in  form,   scope  and  substance   reasonably
satisfactory to, the Administrative Agent.

          7.10 Foreign Subsidiaries  Security.  (a) If following a change in the
relevant  sections  of the  Code or the  regulations,  rules,  revenue  rulings,
notices  or other  official  pronouncements  issued or  promulgated  thereunder,
counsel for Silgan reasonably  acceptable to the  Administrative  Agent does not
within 30 days after a request  from the  Administrative  Agent or the  Required
Lenders  deliver a written  opinion  or other  evidence,  in form and  substance
reasonably satisfactory to the Administrative Agent, with respect to any Foreign
Subsidiary of Silgan which has not already had all of its stock pledged pursuant
to the US Pledge  Agreement  that (i) a pledge of  66-2/3%  or more of the total
combined voting power of all classes of capital stock of such Foreign Subsidiary
entitled to vote to secure the  Obligations of the US Credit Parties (as opposed
to the Obligations of a Foreign Credit Party,  including,  for this purpose, any
guaranty of such  Obligations by a US Credit  Party),  (ii) the entering into by
such Foreign Subsidiary of a security agreement in substantially the form of the
US Security  Agreement to secure the Obligations of the US Borrowers and of such
Foreign  Subsidiary  under  the US  Borrowers/Subsidiaries  Guaranty,  (iii) the
entering into by such Foreign Subsidiary of a pledge agreement  substantially in
the  form  of the US  Pledge  Agreement  to  secure  the  Obligations  of the US
Borrowers  and of such Foreign  Subsidiary  under the US  Borrowers/Subsidiaries
Guaranty and (iv) the entering into by such Foreign  Subsidiary of a guaranty in
substantially the form of the US  Borrowers/Subsidiaries  Guaranty  guaranteeing
the  Obligations  of the US  Borrowers,  in any such case  could  reasonably  be
expected to cause the  undistributed  earnings  of such  Foreign  Subsidiary  as
determined  for U.S.  Federal  income  tax  purposes  to be  treated as a deemed
dividend to such Foreign  Subsidiary's  United States parent for Federal  income
tax  purposes,  then  (A) in the  case of a  failure  to  deliver  the  evidence
described  in clause  (i)  above,  that  portion  of such  Foreign  Subsidiary's
outstanding  capital stock so issued by such Foreign  Subsidiary not theretofore
pledged  pursuant to the US Pledge Agreement to secure the Obligations of the US
Credit Parties shall be pledged to the  Collateral  Agent for the benefit of the
Secured  Creditors  pursuant  to the US Pledge  Agreement,  (B) in the case of a
failure to deliver the evidence  described  in clause (ii) or (iii) above,  such
Foreign  Subsidiary  (only to the extent  that same is a Foreign  Credit  Party)
shall  execute  and  deliver the US  Security  Agreement  (or  another  security
agreement in  substantially  similar form,  if needed,  including by amending or
otherwise  modifying the comparable Foreign Security Document) and the US Pledge
Agreement (or another pledge agreement in substantially similar form, if needed,
including by amending or otherwise  modifying the  comparable  Foreign  Security
Document),  as the case may be, granting to the Collateral Agent for the benefit
of the Secured Creditors a security interest in all of such Foreign Subsidiary's
assets  or the  capital  stock  and  promissory  notes  owned  by  such  Foreign
Subsidiary, as the case may be, and securing the Obligations of the US Borrowers
and,  in the  event  the US  Borrowers/Subsidiaries  Guaranty  shall  have  been
executed by such Foreign Subsidiary,  the obligations of such Foreign Subsidiary
thereunder,  and (C) in the case of a failure to deliver the evidence  described
in clause  (iv) above,  such  Foreign  Subsidiary  (to the extent that same is a
Foreign  Credit Party) shall  execute and deliver the US  Borrowers/Subsidiaries
Guaranty  (or  another  guaranty  in  substantially  similar  form,  if needed),
guaranteeing  the  Obligations  of the US Borrowers,  in each case to the extent
that the entering into of the US Security Agreement,  the US Pledge Agreement or
the US  Borrowers/Subsidiaries  Guaranty (or

                                      -71-
<PAGE>

substantially  similar  documents)  is permitted  by the laws of the  respective
foreign  jurisdiction  (after complying with any "whitewash" or other applicable
proceedings) and with all documents  delivered  pursuant to this Section 7.10 to
be in form and substance reasonably satisfactory to the Administrative Agent.

          (b) The  Lenders  understand  and agree that to the extent the capital
stock of Canadian  Holdco,  Silgan  Plastics  Canada or any other  Subsidiary of
Canadian  Holdco is  required  to be pledged  pursuant  to the  Canadian  Credit
Facility,  such  capital  stock shall not be required to be pledged  pursuant to
this Agreement (and to the extent that such capital stock has  theretofore  been
pledged  pursuant  to the US  Pledge  Agreement,  such  capital  stock  shall be
released from the Liens created thereunder).

          7.11 Margin Stock.  Each of the Borrowers will, and will cause each of
their respective Subsidiaries to, take any and all actions as may be required to
ensure that no capital stock pledged, or required to be pledged, pursuant to any
Security Document shall constitute Margin Stock.

          7.12 CanCo Capital  Contributions.  If, at any time that CanCo has any
Revolving Loans or Swingline Loans outstanding, CanCo makes or pays any Dividend
to Silgan or any of its  Subsidiaries,  then immediately  after Silgan or any of
its  Subsidiaries  receives any such Dividend from CanCo,  Silgan will, and will
cause its respective  Subsidiaries to, immediately contribute the full amount of
such Dividend to CanCo as an equity  contribution,  and CanCo shall use the full
amount of any such cash capital  contribution to make a payment pursuant to (and
to the extent required by) Section 4.02(o).

          7.13 Use of Proceeds. Each Borrower will use the proceeds of the Loans
incurred by it only as provided in Section 6.10.

          7.14 Maintenance of Corporate  Separateness.  Each Borrower will cause
each  of  its   Unrestricted   Subsidiaries  to  satisfy   customary   corporate
formalities,   including,  as  applicable,  the  holding  of  regular  board  of
directors'  and  shareholders'  meetings or action by directors or  shareholders
without a meeting and the  maintenance  of  corporate  offices and  records.  No
Borrower nor any of its Subsidiaries shall make any payment to a creditor of any
Unrestricted  Subsidiary  in  respect  of  any  liability  of  any  Unrestricted
Subsidiary  except pursuant to any guaranty given by such Borrower or Subsidiary
to such creditor pursuant to Section 8.04(xiii),  and no bank account or similar
account of any Unrestricted Subsidiary shall be commingled with any bank account
or  similar  account  of  Silgan  or  any  of its  Subsidiaries.  Any  financial
statements  distributed to any creditors of any  Unrestricted  Subsidiary  shall
clearly  establish or indicate the corporate  separateness of such  Unrestricted
Subsidiary from Silgan and its Subsidiaries.  Finally, neither Silgan nor any of
its  Subsidiaries  shall take any  action,  or conduct  its affairs in a manner,
which is likely to result  in the  corporate  existence  of Silgan or any of its
Subsidiaries or Unrestricted  Subsidiaries  being ignored,  or in the assets and
liabilities  of  Silgan  or  any  of  its   Subsidiaries   being   substantively
consolidated with those of any other such Person or any Unrestricted  Subsidiary
in a bankruptcy, reorganization or other insolvency proceeding.

          Section 8. Negative  Covenants.  Each Borrower covenants and agrees as
to itself and its  Subsidiaries  that on and after the Effective  Date and until
the Total Commitment and all

                                      -72-
<PAGE>

Letters of Credit  have  terminated  and the Loans,  Notes and Unpaid  Drawings,
together with interest,  Fees and all other Obligations  incurred  hereunder and
thereunder are paid in full:

          8.01 Liens.  None of the Borrowers will, nor will it permit any of its
Subsidiaries to, create,  incur, assume or suffer to exist any Lien upon or with
respect to any property or assets (real or personal,  tangible or intangible) of
such  Borrower  or any of its  Subsidiaries,  whether  now  owned  or  hereafter
acquired,  or sell any such property or assets  subject to an  understanding  or
agreement,  contingent  or  otherwise,  to  repurchase  such  property or assets
(including sales of accounts  receivable with recourse to any Borrower or any of
its Subsidiaries), or assign any right to receive income or permit the filing of
any financing  statement under the UCC or any other similar notice of Lien under
any similar  recording or notice  statute;  provided that the provisions of this
Section 8.01 shall not prevent the creation, incurrence, assumption or existence
of the following Liens (collectively, "Permitted Liens"):

          (i)  inchoate  Liens for taxes not yet due and  payable,  or Liens for
     taxes being  contested  in good faith and by  appropriate  proceedings  for
     which  adequate  reserves (in the good faith  judgment of the management of
     Silgan) have been established;

          (ii) Liens in respect of property or assets of any  Borrower or any of
     its Subsidiaries imposed by law, which were incurred in the ordinary course
     of business,  such as carriers',  warehousemen's  and mechanics'  liens and
     other  similar Liens  arising in the ordinary  course of business,  and (x)
     which do not in the  aggregate  materially  detract  from the value of such
     property or assets or materially impair the use thereof in the operation of
     the  business of such  Borrower or such  Subsidiary  or (y) which are being
     contested in good faith by appropriate proceedings,  which proceedings have
     the effect of preventing  the  forfeiture or sale of the property or assets
     subject to such Lien;

          (iii)  Liens in  existence  on the  Initial  Borrowing  Date which are
     listed, and the property subject thereto described, in Schedule V, plus any
     renewals,  replacements and extensions of any such Liens, provided that (x)
     the aggregate principal amount of the Indebtedness, if any, secured by such
     Liens does not  increase  from that amount  outstanding  at the time of any
     such  renewal,  replacement  or extension  plus, in the case of a revolving
     credit facility,  any unutilized  commitments  thereunder at such time (but
     only to the  extent  that such  commitments  were in effect on the  Initial
     Borrowing  Date),  (y)  the  terms  of any  such  Indebtedness  are no more
     restrictive  in any  material  respect  than the terms of the  Indebtedness
     being renewed,  replaced or extended and (z) any such renewal,  replacement
     or extension  does not  encumber any  additional  assets or  properties  of
     Silgan or any of its Subsidiaries;

          (iv) Liens created pursuant to the Security Documents;

          (v) pledges or  deposits in  connection  with  worker's  compensation,
     unemployment insurance and other social security legislation;

          (vi)  deposits  made in the  ordinary  course of business  (including,
     without  limitation,  surety bonds) to secure the  performance  of tenders,
     bids,  leases,  contracts  (other than for the repayment of  Indebtedness),
     statutory obligations and other similar

                                      -73-
<PAGE>

     obligations, provided that the aggregate amount of cash and the fair market
     value (as  determined  in good faith by  management  of Silgan) of non-cash
     collateral so deposited shall at no time exceed $10,000,000;

          (vii) easements,  rights-of-way, zoning restrictions and other similar
     restrictions,  charges or  encumbrances  which do not materially  interfere
     with the  ordinary  conduct of the  business of any  Borrower or any of its
     Subsidiaries  and  which do not  materially  detract  from the value of the
     property to which they attach or impair the use thereof to any  Borrower or
     any of its Subsidiaries;

          (viii)  Liens  created  by virtue of  Capitalized  Lease  Obligations,
     provided  that such  Liens are only in respect  of the  property  or assets
     subject to, and secure only, the respective capitalized lease;

          (ix)  leases or  subleases  granted to other  Persons in the  ordinary
     course of  business  not  materially  interfering  with the  conduct of the
     business of any Borrower or any of its Subsidiaries;

          (x) Liens placed upon equipment,  machinery or other materials used in
     the ordinary course of business of any Borrower or any of its  Subsidiaries
     (other  than the  Receivables  Subsidiary)  at the time of the  acquisition
     thereof by such Borrower or such  Subsidiary or within 120 days  thereafter
     to secure  Indebtedness  incurred  to pay all or a portion of the  purchase
     price thereof or to secure Indebtedness  incurred solely for the purpose of
     financing  the  acquisition  of any  such  equipment,  machinery  or  other
     materials or extensions,  renewals or  replacements of any of the foregoing
     for  the  same  or  a  lesser  amount,  provided  that  (x)  the  aggregate
     outstanding principal amount of all Indebtedness secured by Liens permitted
     by this clause (x) shall not at any time exceed  $75,000,000 and (y) in all
     events, the Lien encumbering the equipment, machinery or other materials so
     acquired  does  not  encumber  any  other  asset of such  Borrower  or such
     Subsidiary  (other than the proceeds of such equipment,  machinery or other
     materials);

          (xi) statutory and common law  landlords'  liens under leases to which
     any Borrower or any of its Subsidiaries is a party;

          (xii) Liens  existing on any asset  prior to the  acquisition  thereof
     pursuant  to a  Permitted  Acquisition  so long as any such  Liens were not
     created  in  contemplation  of such  acquisition  and any such Liens do not
     extend to any other assets of any Borrower or any of its Subsidiaries, plus
     any renewals,  replacements and extensions of any such Liens, provided that
     (x) the  aggregate  principal amount of the  Indebtedness,  if any, secured
     by such Liens does not increase from that amount outstanding at the time of
     any such  renewal,  replacement or  extension  plus (I)  in  the case of  a
     revolving credit facility,  any  unutilized commitments thereunder at  such
     time (but only to the extent  that such  commitments  were in effect at the
     time of such acquisition and were not created in contemplation thereof) and
     (II) the reasonable fees and expenses incurred in connection therewith, (y)
     the terms of any such  Indebtedness are no more restrictive in any material
     respect  than the terms of the  Indebtedness  being  renewed,  replaced  or
     extended and (z)

                                      -74-
<PAGE>

     any such renewal, replacement or extension does not encumber any additional
     assets or properties of Silgan or any of its Subsidiaries;

          (xiii) Liens granted by the  Receivables  Subsidiary on those accounts
     receivable  and  related  assets  sold  by  it  pursuant  to  the  Accounts
     Receivable  Facility Documents to the extent that such Liens are created by
     the Accounts Receivable Facility Documents;

          (xiv) Liens on the capital stock of Canadian  Holdco and on the assets
     of  Canadian  Holdco  and/or  any  of its  Foreign  Subsidiaries  that  are
     organized under the laws of Canada (or any province  thereof) to secure the
     obligations under the Canadian Credit Facility so long as such Liens do not
     extend  to  any  other   assets  of  any  Borrower  or  any  of  its  other
     Subsidiaries;

          (xv) Liens arising out of judgments or awards  (including  deposits to
     secure appeal bonds) in respect of which Silgan or any of its  Subsidiaries
     shall in good faith be prosecuting  an appeal or proceedings  for review in
     respect  of which  there  shall  have  been  secured a  subsisting  stay of
     execution  pending such appeal or proceedings,  provided that the aggregate
     amount of such judgments and the aggregate  amount of any cash and the fair
     market value (as  determined  in good faith by management of Silgan) of any
     other property  pledged by Silgan and its Subsidiaries to secure such Liens
     does not exceed $7,500,000 at any time outstanding;

          (xvi) Liens in favor of customs and revenue  authorities  arising as a
     matter of law to secure  payment of customs  duties in connection  with the
     importation of goods;

          (xvii) so long as the  applicable  CanCo  Restrictions  are in effect,
     Liens on the  capital  stock of CanCo in favor of  Campbell  Soup solely to
     secure the respective  Credit  Parties'  obligations to Campbell Soup under
     the Campbell Can Acquisition Documents;

          (xviii) so long as the applicable  CanCo  Restrictions  are in effect,
     Liens on the  capital  stock  and  assets  of CanCo  created  by  virtue of
     Campbell  Soup's option to purchase all of CanCo's  capital stock or assets
     as set forth in the Campbell Can Acquisition Documents;

          (xix) Liens placed upon the  accounts  receivable  and  inventory of a
     Foreign   Subsidiary   of  Silgan  to  secure  such  Foreign   Subsidiary's
     Indebtedness incurred pursuant to Section 8.04(xviii);  provided,  however,
     to the extent that such Foreign  Subsidiary is a Foreign Credit Party,  the
     Collateral Agent shall retain a second Lien on such accounts receivable and
     inventory pursuant to intercreditor  arrangements  reasonably acceptable to
     the Administrative Agent;

          (xx)  customary  bankers'  Liens,  rights of setoff and other  similar
     Liens existing solely with respect to cash and Cash  Equivalents on deposit
     in one or more  deposit  accounts  maintained  by Silgan or any  Subsidiary
     thereof,  in each case granted in the ordinary  course of business in favor
     of the bank or banks with respect to cash management and operating  account
     arrangements; and

                                      -75-
<PAGE>

          (xxi) Liens (other than in respect of the Receivables  Subsidiary and,
     so long as the CanCo  Restrictions  are in  effect,  CanCo)  not  otherwise
     permitted by the  provisions  of this  Section 8.01 to the extent  securing
     liabilities  not in  excess  of  $50,000,000  in the  aggregate;  provided,
     however,  that if such Liens are consensual  Liens,  those Liens also shall
     not encumber  properties or assets with an aggregate  fair market value (as
     determined in good faith by management of Silgan) in excess of $50,000,000.

          8.02 Consolidation, Merger, Sale of Assets, etc. None of the Borrowers
will,  nor will it permit any of its  Subsidiaries  to,  wind up,  liquidate  or
dissolve its affairs or enter into any  transaction of merger or  consolidation,
or convey,  sell, lease or otherwise  dispose of all or any part of its property
or assets,  or  purchase  or  otherwise  acquire  (in one or a series of related
transactions)  any part of the property or assets (other than purchases or other
acquisitions  of inventory,  materials  and equipment in the ordinary  course of
business) of any Person (or agree to do any of the  foregoing at any future time
unless any such  agreement is expressly made subject to obtaining the consent of
the Required  Lenders),  or permit any of its  Subsidiaries  so to do any of the
foregoing, except that:

          (i) such Borrower and its  Subsidiaries may make sales of inventory in
     the  ordinary  course of business and sales of other assets in the ordinary
     course  of  business  not in  excess  of  $5,000,000  per sale or series of
     related sales;

          (ii) such Borrower and its Subsidiaries may, in the ordinary course of
     business, sell equipment and materials which are uneconomic or obsolete;

          (iii)  Capital  Expenditures  shall be  permitted  (other  than by the
     Receivables Subsidiary) to the extent not in violation of Section 8.07;

          (iv) the Designated Credit Parties and the Receivables  Subsidiary may
     transfer and sell accounts  receivable and related assets  pursuant to, and
     in  accordance  with  the  terms  of,  the  Accounts   Receivable  Facility
     Documents;

          (v)   Subsidiaries  of  Silgan  may  enter  into  sale  and  leaseback
     transactions with respect to their equipment and Real Property,  so long as
     (v) no Default or Event of Default then exists or would  result  therefrom,
     (w)  each  such  sale  and  leaseback  transaction  is in an  arm's  length
     transaction  and the  respective  Subsidiary  receives at least fair market
     value (as determined in good faith by Silgan or such  Subsidiary),  (x) the
     total consideration  received by such Subsidiary is cash and is paid at the
     time of the closing of such sale,  (y) the Net Sale Proceeds  therefrom are
     applied  and/or  reinvested  as (and to the  extent)  required  by  Section
     4.02(j) and (z) the aggregate amount of all proceeds received from all sale
     and leaseback transactions pursuant to this clause (v) shall not exceed the
     greater  of (I)  $150,000,000  and  (II) 10% of the  Consolidated  Tangible
     Assets  at such  time  (based  on the  most  recently  delivered  financial
     statements pursuant to Section 7.01);

          (vi) such Borrower and its  Subsidiaries  may sell other assets (other
     than  (i)  accounts  receivable,  (ii)  pursuant  to a sale  and  leaseback
     transaction or (iii) the capital stock of the  Receivables  Subsidiaries or
     the  capital  stock of any  Subsidiary  of Silgan  which is a Credit  Party
     unless all of such capital stock of such  Subsidiary  is sold),  so long

                                      -76-
<PAGE>

     as (v) no  Default  or  Event  of  Default  then  exists  or  would  result
     therefrom,  (w) each such sale is in an arm's length  transaction  and such
     Borrower  or such  Subsidiary  receives  at least  fair  market  value  (as
     determined in good faith by such Borrower or such  Subsidiary,  as the case
     may be),  (x) the total  consideration  received  by such  Borrower or such
     Subsidiary  is at least  80% cash and such  cash is paid at the time of the
     closing of such  sale,  (y) the Net Sale  Proceeds  therefrom  are  applied
     and/or  reinvested as (and to the extent)  required by Section  4.02(f) and
     (z) the  aggregate  amount of all  proceeds  received  from all assets sold
     pursuant to this clause (vi) shall not exceed $200,000,000;

          (vii) Investments may be made to the extent permitted by Section 8.05;

          (viii) (A) any Domestic Subsidiary of Silgan that is a US Credit Party
     may merge with and into any other  Domestic  Subsidiary of Silgan that is a
     US Credit Party, and (B) any Foreign Subsidiary of Silgan that is a Foreign
     Credit Party may merge with and into any other Foreign Subsidiary of Silgan
     that is a  Foreign  Credit  Party,  in each case so long as (i) if only one
     such Subsidiary is a Wholly-Owned  Subsidiary of Silgan,  such Wholly-Owned
     Subsidiary is the surviving  corporation  of such merger,  (ii) if only one
     such  Subsidiary  also  is a  Borrower,  such  Borrower  is  the  surviving
     corporation  of such merger,  (iii) the security  interests  granted to the
     Collateral Agent for the benefit of the Secured  Creditors  pursuant to the
     respective  Security  Documents  in the assets of the  Subsidiary  which is
     being  merged out of  existence  shall  remain in full force and effect and
     perfected  and  (iv)  if  the   Subsidiary   that  is  being  merged  is  a
     non-Wholly-Owned  Subsidiary of Silgan,  the only consideration paid to the
     minority shareholders of such  non-Wholly-Owned  Subsidiary is common stock
     of Silgan,  Qualified  Preferred  Stock of Silgan  and/or cash and with the
     payment  of  the  merger   consideration  to  be  treated  as  a  Permitted
     Acquisition  made  pursuant to (and Silgan shall be required to satisfy the
     requirements of) Section 8.02(x);

          (ix) (A) any  Domestic  Subsidiary  of Silgan  (other than a US Credit
     Party and the  Receivables  Subsidiary)  may merge  with and into any other
     Domestic Subsidiary of Silgan (other than the Receivables Subsidiary),  and
     (B) any Foreign  Subsidiary of Silgan  (other than a Foreign  Credit Party)
     may merge with and into any other  Foreign  Subsidiary  of Silgan,  in each
     case so long as (i) in the case of any merger involving a Credit Party, the
     Credit Party is the surviving  corporation of such merger, (ii) in the case
     of any  merger  involving  a  Borrower,  such  Borrower  is  the  surviving
     corporation  of  such  merger,  (iii)  if only  one  such  Subsidiary  is a
     Wholly-Owned  Subsidiary  of Silgan,  such  Wholly-Owned  Subsidiary is the
     surviving  corporation of such merger,  and (iv) if the Subsidiary  that is
     being merged out of existence is a  non-Wholly-Owned  Subsidiary of Silgan,
     the  only  consideration   paid  to  the  minority   shareholders  of  such
     non-Wholly-Owned  Subsidiary is common stock of Silgan, Qualified Preferred
     Stock  of  Silgan   and/or   cash  and  with  the  payment  of  the  merger
     consideration  to be treated as a Permitted  Acquisition  made  pursuant to
     (and  Silgan  shall be required  to satisfy  the  requirements  of) Section
     8.02(x);

          (x)  Silgan  and  its  Wholly-Owned   Subsidiaries   (other  than  the
     Receivables  Subsidiary)  may acquire at least 80% of the capital stock of,
     and  Wholly-Owned  Subsidiaries  of  Silgan  (other  than  the  Receivables
     Subsidiary)  may  acquire  all or  substantially  all of the assets of, any
     Person (or any product line or division of such Person or

                                      -77-
<PAGE>

     any manufacturing facility of such Person so long as the acquisition of any
     such manufacturing facility does not constitute a Capital Expenditure),  in
     either  case so long as (i) no Default or Event of Default  then  exists or
     would  result  therefrom,  (ii)  to the  extent  any  such  acquisition  is
     structured  as a merger,  such  acquisition  must be  effected  by (and the
     surviving  entity  must  remain or  become) a  Wholly-Owned  Subsidiary  of
     Silgan,  (iii) to the extent  applicable,  all of the provisions of Section
     8.11 shall have been complied with in respect of such acquisition, (iv) the
     Person or assets so acquired was engaged or were used,  as the case may be,
     primarily in the  packaging  business and  businesses  reasonably  related,
     ancillary or  complementary  thereto,  (v) the only  consideration  paid by
     Silgan or the respective  Wholly-Owned  Subsidiary consists of cash, common
     stock of Silgan,  Qualified  Preferred Stock of Silgan and/or  Indebtedness
     permitted  to be incurred  under  Sections  8.04(xi)  and (xix) and (vi) at
     least five Business Days prior to the  consummation of any such acquisition
     in which the aggregate  purchase price,  together with the aggregate amount
     of  Indebtedness  assumed  in  connection  therewith,   equals  or  exceeds
     $50,000,000,  Silgan  shall have  delivered to the  Administrative  Agent a
     certificate of its chief financial  officer or treasurer  setting forth (in
     reasonable  detail) the  recalculation of the Total Leverage Ratio on a Pro
     Forma Basis for the Test Period then most recently ended  prior to the date
     of such  acquisition  for which  financial  statements  have been delivered
     to the Lenders under this Agreement, and such recalculation shall show that
     Silgan would have been in compliance  with Section 8.09  as of the lsat day
     of such Test Period  (any  acquisition  pursuant  to this  Section 8.02(x),
     a "Permitted Acquisition");

          (xi)  Subsidiaries  of Silgan  may from  time to time sell  individual
     accounts  receivable  (other  than  as  part  of  the  Accounts  Receivable
     Facility)  so long as (i) no  Default or Event of  Default  then  exists or
     would  result  therefrom,  (ii) each such sale is for cash which is paid at
     the  time of such  sale and  (iii) no more  than  $50,000,000  of  accounts
     receivable  in the  aggregate  are sold pursuant to this clause (xi) in any
     fiscal year of Silgan;

          (xii) such  Borrower  and its  Subsidiaries  (other than CanCo and its
     Subsidiaries) may sell inventory,  materials, supplies, equipment and spare
     parts to CanCo and its Subsidiaries, and CanCo may sell such items to other
     Credit  Parties,  in  each  case,  so  long  as all  such  sales  are on an
     arm's-length  basis and are for cash  (although  in the case of the sale of
     materials,  supplies, equipment or spare parts, the consideration may be in
     the  form  of  the  substantially   simultaneous  exchange  for  materials,
     supplies, equipment or spare parts, as applicable, of equivalent value);

          (xiii) (A) any Subsidiary of Silgan that conducts no  operations,  has
     no assets (other than immaterial assets) and has no liabilities (other than
     immaterial  liabilities)  may be dissolved or liquidated  and (B) any other
     Subsidiary  of  Silgan  (other  than a  Credit  Party  or  the  Receivables
     Subsidiary) may be liquidated or dissolved so long as Silgan  determines in
     good faith that such  liquidation or dissolution is in the best interest of
     Silgan and its  Subsidiaries  and is not otherwise  disadvantageous  to the
     Lenders in any material respect;

                                      -78-
<PAGE>

          (xiv)  Silgan  and its  Subsidiaries  may sell,  convey  or  otherwise
     dispose of Cash  Equivalents  in the ordinary  course of business,  in each
     case for cash at fair market value (as  determined  in good faith by Silgan
     or such Subsidiary);

          (xv) any US Credit Party that is a Domestic  Subsidiary  of Silgan may
     convey,  sell  or  otherwise  transfer  all or any  part  of its  business,
     properties  and  assets  to any US  Credit  Party  that  is a  Wholly-Owned
     Domestic Subsidiary of Silgan, so long as any security interests granted to
     the Collateral Agent for the benefit of the Secured  Creditors  pursuant to
     the US Security Documents in the assets so transferred shall remain in full
     force and effect and  perfected  (and with at least the same priority as in
     effect immediately prior to such conveyance, sale or other transfer); and

          (xvi) any Foreign  Subsidiary of Silgan may convey,  sell or otherwise
     transfer  all or any part of its  business,  properties  and  assets to any
     Foreign Credit Party that is a Wholly-Owned  Foreign  Subsidiary of Silgan,
     so long as any security  interests  granted to the Collateral Agent for the
     benefit of the Secured Creditors pursuant to the Foreign Security Documents
     in the  assets so  transferred  shall  remain in full  force and effect and
     perfected  (and with at least the same  priority  as in effect  immediately
     prior to such conveyance, sale or other transfer).

          Notwithstanding  anything  to the  contrary  contained  above  in this
Section 8.02 or elsewhere in this Agreement,  so long as the CanCo  Restrictions
are in  effect,  (x) in no  event  shall  CanCo  or any of its  Subsidiaries  be
permitted to engage in any  transaction  otherwise  permitted by clauses (viii),
(ix),  (x) and (xv) of this Section 8.02,  and (y) in no event shall the capital
stock of CanCo or any of its Subsidiaries be sold directly,  or through the sale
of any parent  company of CanCo,  other than as  expressly  permitted by Section
12.20(b)  (which  sale shall be in  addition to those  already  permitted  under
clause (vi) of this Section 8.02).

          To the extent any Collateral is sold as permitted by this Section 8.02
or the Required  Lenders waive the  provisions of this Section 8.02 with respect
to the sale of any Collateral as provided in Section 12.12,  such  Collateral in
each  such  case  shall be sold  free  and  clear of the  Liens  created  by the
respective Security Documents and the Administrative  Agent and Collateral Agent
shall  be  authorized  to take any  action  deemed  appropriate  to  effect  the
foregoing.

          8.03 Dividends.  None of the Borrowers will, nor will it permit any of
its  Subsidiaries  to,  authorize,  declare or pay any Dividends with respect to
such Borrower or any of its Subsidiaries, except that:

          (i) any  Subsidiary of Silgan may pay cash Dividends to Silgan or to a
     Wholly-Owned Subsidiary of Silgan;

          (ii) any non-Wholly-Owned  Subsidiary of Silgan may pay cash Dividends
     to its  shareholders,  partners  or  members  generally  so long as (x) the
     respective  Borrower  or its  respective  Subsidiary  which owns the equity
     interest or interests in the Subsidiary paying such cash

                                      -79-
<PAGE>

     Dividends receives at least its proportionate share thereof (based upon its
     relative  holdings of the equity  interest or interests  in the  Subsidiary
     paying  such  cash   Dividends   and  taking  into   account  the  relative
     preferences,  if any, of the various  classes of equity  interests  in such
     Subsidiary)  and (y) no cash  Dividends  may be paid by any  Subsidiary  of
     Silgan pursuant to this clause (ii) at any time that any Intercompany Loans
     are outstanding to such Subsidiary;

          (iii) so long as no Default or Event of Default  then  exists or would
     result therefrom and, to the extent applicable,  Silgan shall have complied
     with the provisions of the last paragraph of this Section 8.03,  Silgan may
     pay cash  Dividends  (other than to  repurchase or redeem any shares of its
     capital  stock  or to pay any cash  Dividends  on its  Qualified  Preferred
     Stock) so long as the aggregate  amount of all such cash  Dividends paid on
     or after the Initial  Borrowing Date pursuant to this clause (iii) does not
     exceed  an  amount  equal  to the  sum of (1)  $125,000,000  plus  (2)  the
     remainder of, if positive,  (x) 50% of Cumulative  Consolidated  Net Income
     (it being  understood  that if Cumulative  Consolidated  Net Income is less
     than  zero,  then  minus  100% of the  amount of such  loss)  minus (y) the
     aggregate  amount of Dividends paid pursuant to clause (iv) of this Section
     8.03 in excess of  $100,000,000  plus (3) the Net Equity Proceeds Amount at
     such time;  provided,  however,  Silgan  shall not be subject to the dollar
     limitations  set forth above in this clause  (iii) if, and only for so long
     as, Silgan achieves and maintains an Investment Grade Rating; and

          (iv) so long as no Default or Event of  Default  then  exists or would
     result therefrom and, to the extent applicable,  Silgan shall have complied
     with the provisions of the last paragraph of this Section 8.03,  Silgan may
     redeem or repurchase  shares of its capital stock and/or pay cash Dividends
     on its Qualified  Preferred Stock in an aggregate  amount not to exceed the
     sum of (1) $100,000,000 plus (2) the remainder of, if positive,  (x) 50% of
     Cumulative  Consolidated Net Income (it being understood that if Cumulative
     Consolidated Net Income is less than zero, then minus 100% of the amount of
     such loss) minus (y) the aggregate  amount of cash  Dividends paid pursuant
     to clause (iii) of this Section 8.03 in excess of $125,000,000 plus (3) the
     Net Equity Proceeds Amount at such time;  provided,  however,  Silgan shall
     not be subject to the dollar  limitations  set forth  above in this  clause
     (iv) if,  and  only  for so long  as,  Silgan  achieves  and  maintains  an
     Investment Grade Rating.

          At least five  Business Days prior to (A) the payment or making of any
Dividend  pursuant  to  clause  (iii)  above in this  Section  8.03 in an amount
greater than  $15,000,000  in any fiscal quarter of Silgan or (B) the payment or
making of any Dividend  pursuant to clause (iv) above in this Section 8.03 in an
amount  greater than  $25,000,000 in any single  transaction,  Silgan (in either
case) shall have  delivered to the  Administrative  Agent a  certificate  of its
chief financial  officer or treasurer  setting forth (in reasonable  detail) the
recalculation  of the Total Leverage Ratio and the Interest  Coverage Ratio on a
Pro Forma Basis for the Test Period then most  recently  ended prior to the date
of such  Dividend  for which  financial  statements  have been  delivered to the
Lenders  under this  Agreement,  and such  recalculation  shall show that Silgan
would have been in compliance  with Sections 8.08 and 8.09 as of the last day of
such Test Period.

          8.04 Indebtedness.  None of the Borrowers will, nor will it permit any
of its Subsidiaries to, contract,  create,  incur, assume or suffer to exist any
Indebtedness, except:

                                      -80-
<PAGE>

          (i) Indebtedness incurred under the Credit Documents;

          (ii) existing  Indebtedness (other than the 6-3/4% Senior Subordinated
     Debentures and the other Indebtedness  specifically permitted under clauses
     (iv), (vi) and (xiv) of this Section 8.04) listed on Schedule VI ("Existing
     Indebtedness"),  plus any renewals,  replacements or extensions  thereof to
     the extent permitted by Section 8.01(iii);

          (iii)  obligations  under  trade  letters of credit  incurred  by such
     Borrower or any of its Subsidiaries (other than the Receivables Subsidiary)
     in the ordinary  course of business,  which, in each case, are to be repaid
     in full not more than one year after the date on which such Indebtedness is
     originally  incurred to finance the  purchase of goods by such  Borrower or
     such Subsidiary;

          (iv) obligations  under letters of credit incurred by such Borrower or
     any of its  Subsidiaries  (other than the  Receivables  Subsidiary)  in the
     ordinary  course  of  business  in  support  of  obligations   incurred  in
     connection  with worker's  compensation,  unemployment  insurance and other
     social  security   legislation  in  an  aggregate   amount  not  to  exceed
     $30,000,000 at any time outstanding;

          (v)  Indebtedness of Silgan not to exceed  $200,000,000 (as reduced by
     any  repayments  of  principal  thereof)  in  aggregate   principal  amount
     evidenced by the 6-3/4% Senior Subordinated Debentures;

          (vi)  Indebtedness  of CanCo  under  the  Campbell  Seller  Note in an
     aggregate  principal  amount not to exceed  $3,000,000  (as  reduced by any
     repayments of principal thereof);

          (vii)  intercompany  Indebtedness among Silgan and its Subsidiaries to
     the extent permitted by Sections 8.05(vii), (viii), (ix) and (xiv);

          (viii) Indebtedness consisting of Capitalized Lease Obligations (other
     than by the  Receivables  Subsidiary)  to the extent  permitted  by Section
     8.07;

          (ix) unsecured  guarantees by Silgan or any of its Subsidiaries (other
     than  the  Receivables   Subsidiary)  of  Silgan's  or  such  Subsidiaries'
     respective  lease  obligations  under operating  leases entered into by any
     such Person;

          (x) unsecured  senior  Indebtedness of Silgan  ("Additional  Permitted
     Senior  Indebtedness")  and unsecured  subordinated  Indebtedness of Silgan
     ("Additional  Permitted  Subordinated  Indebtedness" and, together with the
     Additional   Permitted  Senior  Indebtedness,   collectively,   "Additional
     Permitted  Indebtedness"),  in each case the Net Debt Proceeds of which are
     used solely (I) to finance a Permitted Acquisition (and to pay the fees and
     expenses related thereto) and to refinance any Indebtedness assumed as part
     of such Permitted Acquisition  (including to pay for all accrued and unpaid
     interest thereon, any prepayment premium associated therewith and all costs
     and expenses incurred in connection therewith),  (II) to prepay outstanding
     Revolving Loans and/or Swingline Loans the proceeds of which were initially
     utilized  to  finance  a  Permitted  Acquisition  (and to pay the  fees and
     expenses related thereto) and/or refinance

                                      -81-
<PAGE>

     Indebtedness  assumed as part of a  Permitted  Acquisition,  in either case
     pending  the   incurrence   or  issuance  of  such   Additional   Permitted
     Indebtedness,  (III) to repay  outstanding  Term Loans  pursuant to Section
     4.02(h) or (IV) within 60 days after the  incurrence  thereof to  Refinance
     outstanding  Permitted  Subordinated  Indebtedness or Additional  Permitted
     Senior Indebtedness  theretofore issued by Silgan (including to pay for all
     accrued and unpaid  interest  thereon,  any prepayment  premium  associated
     therewith  and all costs and  expenses  incurred in  connection  therewith)
     pursuant to a Permitted Debt Repurchase, so long as (i) no Default or Event
     of  Default  then  exists or would  result  therefrom,  (ii) at least  five
     Business  Days  prior  to the  issuance  of any such  Additional  Permitted
     Indebtedness,  Silgan shall have  delivered to the  Administrative  Agent a
     certificate  of its chief  financial  officer or  treasurer  detailing  the
     intended use of the proceeds from such  Additional  Permitted  Indebtedness
     and setting forth (in reasonable  detail) the recalculation of the Interest
     Coverage  Ratio and the Total  Leverage  Ratio on a Pro Forma Basis for the
     Test Period then most recently ended prior to the date of such issuance for
     which  financial  statements  have been delivered to the Lenders under this
     Agreement, and such recalculation shall show that Silgan would have been in
     compliance  with  Sections  8.08 and  8.09 as of the last day of such  Test
     Period,  (iii) all of the terms and conditions of such Additional Permitted
     Indebtedness (other than interest rates, but including, without limitation,
     subordination  provisions  (but  only in the case of  Additional  Permitted
     Subordinated  Indebtedness),  covenants (other than the restricted payments
     covenant,  the debt incurrence  covenant and the lien covenant),  events of
     default,  remedies,  amortizations and maturities) are no less favorable in
     any material respect to the Lenders (although the subordination  provisions
     contained in any such Additional Permitted Subordinated  Indebtedness shall
     be no less  favorable  in any respect to the  Lenders) or  materially  more
     restrictive on Silgan and its Subsidiaries  than those terms and conditions
     contained in the 6-3/4% Senior Subordinated  Debenture Documents,  and (iv)
     in the case of Additional  Permitted  Indebtedness the Net Debt Proceeds of
     which are to be used to Refinance then outstanding  Permitted  Subordinated
     Indebtedness  or  Additional  Permitted  Senior  Indebtedness,  until  such
     proceeds  are so used to effect such  Refinancing,  such  proceeds  are (x)
     applied to repay outstanding  Revolving Loans and/or Swingline Loans and/or
     (y) placed in a cash collateral account  established and maintained by, and
     pursuant to arrangements satisfactory to, the Administrative Agent;

          (xi)  Indebtedness  of any  Subsidiary of Silgan assumed in connection
     with a  Permitted  Acquisition  so long as (i)  such  Indebtedness  was not
     issued or created in  contemplation of such acquisition and (ii) all of the
     terms and conditions of such Indebtedness are reasonably  acceptable to the
     Administrative Agent;

          (xii) Indebtedness of Silgan under Interest Rate Protection Agreements
     related to Indebtedness otherwise permitted under this Section 8.04;

          (xiii) unsecured  guaranties  (including any payments made thereunder)
     by Silgan and its Subsidiaries  (other than the Receivables  Subsidiary) of
     obligations of Joint Ventures,  Unrestricted  Subsidiaries and Subsidiaries
     of Silgan  which  are not US Credit  Parties  (other  than the  Receivables
     Subsidiary) in an aggregate  amount not to exceed at any time  outstanding,
     when added to the aggregate amount of Investments made pursuant

                                      -82-
<PAGE>

     to  Section  8.05(xiv),  an  amount  equal  to the  sum  of (I)  20% of the
     Consolidated  Tangible  Assets  at such time  (based  on the most  recently
     delivered  financial  statements  pursuant  to  Section  7.01) and (II) the
     Permitted  Additional  Investment  Basket  Amount at such time  (determined
     without  regard to any  write-downs  or  write-offs  of such  Investments);
     provided,  however,  the aggregate  amount of all guaranties (and including
     all payments made thereunder) made pursuant to this Section  8.04(xiii) for
     the  benefit of  Unrestricted  Subsidiaries,  when  added to the  aggregate
     amount  of  all   Investments   made  pursuant  to  Section   8.05(xiv)  in
     Unrestricted Subsidiaries, shall not exceed $75,000,000;

          (xiv)  Indebtedness  of  Canadian  Holdco  and/or  any of its  Foreign
     Subsidiaries  that are organized  under the laws of Canada (or any province
     thereof)  under  the  Canadian  Credit  Facility  so long as the  aggregate
     outstanding principal amount of all term loans, revolving loans, letters of
     credit and/or bankers  acceptances  thereunder does not exceed $75,000,000,
     which  Indebtedness  may be  guaranteed  on an  unsecured  basis by Silgan,
     Containers  and/or  Plastics  (although  the  guaranty of  Plastics  may be
     secured by the capital stock of Canadian Holdco);

          (xv) Indebtedness permitted by Section 8.01(x);

          (xvi)  Indebtedness of the Receivables  Subsidiary  under the Accounts
     Receivable  Facility  to the extent  that the  obligations  thereunder  are
     required to be reflected as a liability on the  consolidated  balance sheet
     of Silgan in accordance with accounting  principles  generally  accepted in
     the United States;

          (xvii)  an  unsecured  guaranty  by  Silgan,  Containers,   Containers
     Operating,  CanCo Holding and CanCo of each other's obligations to Campbell
     Soup under the Campbell Can Acquisition  Documents,  although such guaranty
     may be secured by the capital stock of CanCo;

          (xviii)  Indebtedness of any Foreign  Subsidiary of Silgan (other than
     Canadian Holdco or any of its Subsidiaries)  under lines of credit extended
     by  third  Persons  to  such  Foreign  Subsidiary  the  proceeds  of  which
     Indebtedness  are used for such Foreign  Subsidiary's  working  capital and
     Capital Expenditure purposes,  provided that the aggregate principal amount
     of all such Indebtedness incurred pursuant to this clause (xviii) shall not
     exceed $75,000,000 at any time outstanding; and

          (xix) additional  Indebtedness of Silgan and its  Subsidiaries  (other
     than the  Receivables  Subsidiary)  not otherwise  permitted  hereunder not
     exceeding   $100,000,000  in  aggregate   principal   amount  at  any  time
     outstanding.

          Notwithstanding  anything  to the  contrary  contained  above  in this
Section 8.04, so long as the CanCo  Restrictions are in effect,  (x) in no event
shall CanCo or any of its  Subsidiaries  incur any  Indebtedness  under  clauses
(xi),  (xiii) and (xix) of this Section 8.04 and (y) in no event shall Silgan or
any  of  its  Subsidiaries  guaranty  any  obligations  of  CanCo  or any of its
Subsidiaries to Campbell Soup or any Subsidiary  thereof other than as expressly
permitted by clause (xvii) of this Section 8.04.

                                      -83-
<PAGE>

          8.05 Advances;  Investments and Loans. None of the Borrowers will, nor
will it permit any of its Subsidiaries to, lend money or credit or make advances
to any Person,  or purchase or acquire any stock,  obligations or securities of,
or any other interest in, or make any capital  contribution to, any other Person
or become  liable for the  purchase  or sale of any  currency  at a future  date
pursuant to a futures contract or similar  agreement (each of the foregoing,  an
"Investment"   and,   collectively,   "Investments"),   or  permit  any  of  its
Subsidiaries so to do, except that the following shall be permitted:

          (i)  such  Borrower  and  its   Subsidiaries   may  acquire  and  hold
     receivables  owing to it, if created or acquired in the ordinary  course of
     business and payable or  dischargeable  in accordance  with customary trade
     terms;

          (ii) such  Borrower  and its  Subsidiaries  may  acquire and hold Cash
     Equivalents;

          (iii) such Borrower and its  Subsidiaries  may make loans and advances
     to their respective  officers,  employees and agents in the ordinary course
     of business in an  aggregate  amount not to exceed  $10,000,000  at any one
     time  outstanding   (determined   without  regard  to  any  write-downs  or
     write-offs thereof);

          (iv) such Borrower and its Subsidiaries may establish  Subsidiaries to
     the extent permitted pursuant to Section 8.11;

          (v) Silgan and its  Subsidiaries  may own the  capital  stock of their
     respective Subsidiaries;

          (vi) such  Borrower  and its  Subsidiaries  may  continue  to hold any
     Investment  they  held as of the  Initial  Borrowing  Date as set  forth on
     Schedule VII,  provided that any additional  Investments  made with respect
     thereto shall be permitted only if permitted under the other  provisions of
     this Section 8.05;

          (vii) (A) the US Credit  Parties  may make  Intercompany  Loans to one
     another and (B) the Foreign Credit Parties may make  Intercompany  Loans to
     one another and to the US Credit  Parties so long as (x) in the case of any
     Intercompany  Loans made to a US Credit  Party by a Foreign  Credit  Party,
     such  Intercompany  Loans are  subordinated  to the  Obligations  of the US
     Credit Parties on a basis  reasonably  satisfactory  to the  Administrative
     Agent (which,  in any event,  shall provide that no payments  shall be made
     thereunder upon the occurrence and during the continuance of any Default or
     Event of  Default)  and (y) each  Intercompany  Loan made  pursuant to this
     clause (vii) is evidenced by an Intercompany Note which shall be pledged to
     the Collateral Agent pursuant to the applicable Security Document;

          (viii)  (A)  the  Credit  Parties  may  make  Intercompany   Loans  to
     Wholly-Owned  Subsidiaries of Silgan which are not US Credit Parties (other
     than the Receivables  Subsidiary) in an aggregate  principal  amount not to
     exceed  $75,000,000 at any time outstanding  (determined  without regard to
     any write-downs or write-offs thereof) and (B) Subsidiaries of Silgan which
     are not Credit  Parties may make  Intercompany  Loans to one another (other
     than to the  Receivables  Subsidiary)  and to Silgan  and the other  Credit

                                      -84-
<PAGE>

     Parties so long as (x) in the case of any such  Intercompany  Loans made to
     Silgan  and/or to any  other  Credit  Party,  such  Intercompany  Loans are
     subordinated to the Obligations on a basis  reasonably  satisfactory to the
     Administrative  Agent (which,  in any event,  shall provide that no payment
     shall be made  thereunder upon the occurrence and during the continuance of
     any  Default  or Event of  Default),  and (y) each  Intercompany  Loan made
     pursuant  to this  clause  (viii)  by a  Credit  Party is  evidenced  by an
     Intercompany  Note which shall be pledged to the Collateral  Agent pursuant
     to the applicable Security Document;

          (ix)  Silgan  and the other US Credit  Parties  may make  Intercompany
     Loans  and/or cash common  equity  contributions  to  Wholly-Owned  Foreign
     Subsidiaries  of Silgan  for the  purpose  of  enabling  such  Wholly-Owned
     Foreign  Subsidiaries to consummate a Permitted  Acquisition  (including to
     refinance any Indebtedness  assumed as part of such Permitted  Acquisition)
     so long  as (i) any  such  Intercompany  Loan  and/or  cash  common  equity
     contribution is funded with proceeds from  Incremental  Term Loans incurred
     by Silgan and/or Revolving Loans or Swingline Loans incurred by a Revolving
     Borrower;  provided,  however,  no more than  $50,000,000  of  proceeds  of
     Revolving  Loans and  Swingline  Loans in the aggregate may be used to make
     Investments  pursuant  to  this  Section  8.05(ix),   and  (ii)  each  such
     Investment  that is made as an  Intercompany  Loan shall be evidenced by an
     Intercompany  Note that is pledged to the Collateral  Agent pursuant to the
     applicable Security Document;

          (x) the US Credit Parties may make cash common equity contributions to
     their  Subsidiaries  which also are US Credit  Parties  and (B) the Foreign
     Credit  Parties  may  make  cash  common  equity   contributions  to  their
     Subsidiaries which also are Foreign Credit Parties;

          (xi) Silgan and its Subsidiaries  may make cash capital  contributions
     to their respective  Wholly-Owned Foreign Subsidiaries from time to time to
     the extent and only in the amounts necessary for such Wholly-Owned  Foreign
     Subsidiaries to comply with certain local laws and regulations  relating to
     minimum equity capitalization;

          (xii)  Silgan  and its  Subsidiaries  may  receive  and hold  non-cash
     consideration  in connection with any Asset Sale to the extent permitted by
     Section 8.02(vi);

          (xiii) Permitted  Acquisitions  consisting of stock acquisitions shall
     be permitted;

          (xiv) so long as no Default or Event of Default  then  exists or would
     result therefrom,  Silgan and its Wholly-Owned Subsidiaries (other than the
     Receivables  Subsidiary)  may make cash  Investments in, or transfer assets
     to, any Joint Venture,  Unrestricted Subsidiary or any Subsidiary of Silgan
     which is not a US Credit Party (other than the Receivables Subsidiary),  so
     long as the aggregate  amount of such cash  Investments and the fair market
     value of all other assets so  transferred  (as  determined in good faith by
     Silgan),  when added to the amount of guaranties  outstanding under Section
     8.04(xiii)  (and  including any payments  made under any such  guaranties),
     does not exceed the sum of (I) 20% of the  Consolidated  Tangible Assets at
     such  time  (based  on the most  recently  delivered  financial  statements
     pursuant  to Section  7.01) and (II) the  Permitted

                                      -85-
<PAGE>

     Additional  Investment  Basket Amount at such time  (determined (x) without
     regard to any write-downs or write-offs of any Investments made pursuant to
     this clause (xiv) and (y) net of cash  repayments  of principal in the case
     of loans,  sale  proceeds  in the case of  Investments  in the form of debt
     instruments and cash equity returns  (whether as a distribution,  dividend,
     redemption  or sale) in the case of  equity  investments  in each case with
     respect to  Investments  theretofore  made pursuant to this clause  (xiv));
     provided,  however,  the  aggregate  amount  of all  net  Investments  made
     pursuant to this Section 8.05(xiv) in Unrestricted Subsidiaries, when added
     to  the  aggregate  amount  of all  guaranties  outstanding  under  Section
     8.04(xiii) made for the benefit of Unrestricted Subsidiaries (and including
     any payments made under any such guaranties), shall not exceed $75,000,000;
     and

          (xv)  Silgan  and  its  Subsidiaries  may  enter  into  Other  Hedging
     Agreements in the ordinary course of business providing  protection against
     fluctuations  in currency  values in connection with Silgan's or any of its
     Subsidiaries'   operations   so  long  as  management  of  Silgan  or  such
     Subsidiary,  as the case may be,  has  determined  in good  faith  that the
     entering  into of such  Other  Hedging  Agreements  are bona  fide  hedging
     activities and are not for speculative purposes.

          Notwithstanding  anything  to the  contrary  contained  above  in this
Section 8.05, so long as the CanCo  Restrictions are in effect,  (x) in no event
shall CanCo or any of its  Subsidiaries  be  permitted  to make any  Investments
otherwise  permitted by clauses (ix),  (xiii) and (xiv) of this Section 8.05 and
(y) in no event shall  Silgan or any of its other  Subsidiaries  be permitted to
make any Investments in CanCo or any of its Subsidiaries  otherwise permitted to
be made under this Section 8.05,  although Containers and its other Wholly-Owned
Subsidiaries may (A) make cash equity Investments in, and Intercompany Loans to,
CanCo in an aggregate amount  outstanding for all such Investments not to exceed
$50,000,000  at any  time  (determined  without  regard  to any  write-downs  or
write-offs  thereof),  and (B) make equity  Investments  in CanCo as, and to the
extent,  required by Section 7.12 (it being  understood  and agreed that (i) all
Investments  made to CanCo as an  Intercompany  Loan  shall be  evidenced  by an
Intercompany  Note which shall be pledged to the  Collateral  Agent under the US
Pledge  Agreement and (ii) all  Investments  made in or to CanCo as permitted in
this  sentence  shall be in  addition to the  Investment  amounts  permitted  by
clauses (vii),  (viii) and (xiv) of this Section 8.05,  provided that no portion
of the Investment amounts set forth in such clauses (vii),  (viii) and (xiv) may
be used to make Investments in CanCo or any of its Subsidiaries).

          8.06 Transactions with Affiliates and Unrestricted Subsidiaries.  None
of the Borrowers will, nor will it permit any of its Subsidiaries to, enter into
any  transaction  or  series  of  related  transactions,  whether  or not in the
ordinary course of business,  with any Affiliate or  Unrestricted  Subsidiary of
such Borrower,  other than on terms and conditions substantially as favorable to
such Borrower or such Subsidiary as would be obtainable by such Borrower or such
Subsidiary at the time in a comparable  arm's length  transaction  with a Person
other than an Affiliate, provided that:

          (i) each of Silgan  and its  Domestic  Subsidiaries  and  Unrestricted
     Subsidiaries may execute,  deliver and perform their  obligations under the
     Tax  Sharing  Agreement;  provided,  however,  to the extent  that any such
     Unrestricted  Subsidiary is a party thereto,

                                      -86-
<PAGE>

          such  Unrestricted  Subsidiary  shall  be  treated  no more  favorably
          thereunder than the manner in which any Domestic  Subsidiary of Silgan
          is treated;

          (ii) transactions among Silgan and its Subsidiaries shall be permitted
     to the extent that such  transactions  are otherwise not  restricted by the
     terms of this  Agreement  or any other  Credit  Document  and so long as no
     minority  shareholder  in any  such  Subsidiary  that is  party to any such
     transaction is otherwise an Affiliate of Silgan;

          (iii)  the  payment  of  reasonable  and  customary  regular  fees and
     granting of options,  restricted  stock or any other equity based awards to
     directors  of  Silgan  who  are  not  employees  of  Silgan  or  any of its
     Subsidiaries shall be permitted;

          (iv)  Silgan  and  its   Subsidiaries   may  sell  raw   materials  to
     Unrestricted  Subsidiaries  for cash and at the same  price or prices  that
     Silgan or such Subsidiaries pay for such raw materials; and

          (v)  Silgan  may  provide  general  corporate,  administrative  and/or
     management services to its Subsidiaries and Silgan and its Subsidiaries may
     provide such services to Unrestricted  Subsidiaries  and, in each case, may
     receive compensation therefor.

          Notwithstanding anything to the contrary contained above, this Section
8.06  shall not  prohibit  (i) the  transfer  of any  assets,  the making of any
Dividends or the making of any Investments  permitted pursuant to Sections 8.02,
8.03,  8.04 and 8.05 or  otherwise  specifically  permitted by the terms of this
Agreement or (ii) transactions with Affiliates (A) approved by a majority of the
disinterested  members of the Board of  Directors  (or an  authorized  committee
thereof) of Silgan or, to the extent that the value of such  transaction is less
than  $10,000,000,  by a majority of the Board of  Directors  (or an  authorized
committee  thereof)  of  Silgan  or (B)  for  which  Silgan  or  its  respective
Subsidiary  delivers  to  the  Administrative  Agent  a  written  opinion  of an
unaffiliated  nationally  recognized  investment  banking firm stating that such
transaction is fair to Silgan or such Subsidiary from a financial point of view,
provided that if the value of any such transaction not otherwise permitted under
clauses (i) through  (vi) of the first  paragraph  of this  Section 8.06 exceeds
$25,000,000,  then  the  foregoing  determination  must be  made  in the  manner
provided in clause (B) above.

          8.07 Capital Expenditures. (a) None of the Borrowers will, nor will it
permit any of its  Subsidiaries  to,  make any  Capital  Expenditure  during any
period  set forth  below  which  exceeds  in the  aggregate  for  Silgan and its
Subsidiaries the amount set forth opposite such period below:

            Period                                  Amount
            ------                                  ------

            Initial Borrowing Date through
               December 31, 2005                 $75,000,000
            Calendar Year ended
               December 31, 2006                $125,000,000
            Calendar Year ended
                ecember 31, 2007                $125,000,000
            Calendar Year ended

                                      -87-
<PAGE>

            Period                                  Amount
            ------                                  ------

               December 31, 2008                $125,000,000
            Calendar Year ended
               December 31, 2009                $125,000,000
            Calendar Year ended
               December 31, 2010                $125,000,000
            Calendar Year ended
               December 31, 2011                $125,000,000
            Calendar Year ended
               December 31, 2012                $125,000,000

          Notwithstanding  anything  to the  contrary  contained  above  in this
Section  8.07,  (i) each of the  amounts  set forth in the table  above shall be
increased at the time of any Permitted  Acquisition by an amount equal to 10% of
the annual  sales of the  Person or assets  acquired  as part of such  Permitted
Acquisition for the most recently ended  consecutive four quarter period of such
Person  prior  to such  Permitted  Acquisition  (provided  that in the case of a
Permitted  Acquisition  effected  after the first day of any calendar  year, the
actual additional amount permitted to be expended pursuant to this clause (i) in
such  calendar  year  shall be the  amount  set forth  above in this  clause (i)
multiplied by a fraction, the numerator of which is the number of days remaining
during such calendar year and the  denominator  of which is 365) and (ii) to the
extent that Capital  Expenditures  made during any period set forth in the table
above are less than the amount set forth opposite such period in the table above
(as adjusted  pursuant to preceding  clause  (i)),  such amount (the  "Carryover
Amount") may be carried  forward and utilized to make  Capital  Expenditures  in
excess of the amount  permitted  in the table  above (as  adjusted  pursuant  to
preceding  clause (i)) in the immediately  succeeding two calendar years but not
in any calendar year thereafter, it being understood and agreed that any Capital
Expenditures made in such immediately  succeeding calendar years shall be deemed
to have first utilized the Carryover Amount from a preceding  calendar year (and
with the oldest  Carryover  Amounts  from a preceding  fiscal year being  deemed
utilized first).

          (b) In  addition  to the Capital  Expenditures  permitted  pursuant to
preceding  clause  (a) and  succeeding  clauses  (c) and (d),  in the event that
Silgan and its Subsidiaries have made Capital  Expenditures in any calendar year
pursuant to clause (a) above in an amount equal to the maximum  aggregate amount
permitted to be made by Silgan and its  Subsidiaries  during such  calendar year
and so long as no  Default  or Event of  Default  then  exists,  Silgan  and its
Subsidiaries  may  utilize  up to 100%  of the  applicable  permitted  scheduled
Capital  Expenditure amount as set forth in clause (a) above for the immediately
succeeding  calendar year to make  additional  Capital  Expenditures in the then
current calendar year.

          (c) In  addition  to the Capital  Expenditures  permitted  pursuant to
preceding  clauses (a) and (b) and succeeding  clause (d), Capital  Expenditures
made with any of the following  shall be permitted:  (i) proceeds  utilizing the
Net Equity Proceeds Amount at such time, (ii) Net Insurance  Proceeds (except to
the extent that such  proceeds  are  required to be applied  pursuant to Section
4.02(g)),  (iii) proceeds utilizing the Retained Excess Cash Flow Amount at such
time and  (iv) Net Sale  Proceeds  from  any  Asset  Sale or sale and  leaseback
transaction to the

                                      -88-
<PAGE>

extent that such Net Sale  Proceeds are not required to be used by Silgan or any
of its  Subsidiaries  to  repay  any  Indebtedness  (or  reduce  any  unutilized
commitments in respect thereof).

          (d) In  addition  to the Capital  Expenditures  permitted  pursuant to
preceding clauses (a), (b) and (c), Capital Expenditures made in connection with
plant  rationalizations  associated  with  any  Permitted  Acquisition  shall be
permitted  so long as (i) such Capital  Expenditures  are of the type that would
have been recorded under generally accepted accounting  principles as a purchase
accounting  liability  prior to EITF 95-3 and (ii) the aggregate  amount thereof
does not exceed $15,000,000 in any calendar year.

          8.08 Interest  Coverage  Ratio.  None of the Borrowers will permit the
Interest  Coverage  Ratio for any Test Period  ended on the last day of a fiscal
quarter of Silgan to be less than 3.00:1.00.

          8.09 Total Leverage Ratio. None of the Borrowers will permit the Total
Leverage  Ratio for any Test Period ended on the last day of a fiscal quarter of
Silgan to be greater than 4.00:1.00.

          8.10  Limitation on Voluntary  Payments and  Modifications  of Certain
Indebtedness;  Modifications of Certain Documents; Certificate of Incorporation;
By-Laws and Certain Other Agreements;  etc. None of the Borrowers will, nor will
it permit any of its Subsidiaries to, (i) make any voluntary or optional payment
or prepayment on or redemption or acquisition  for value of (including,  without
limitation,  by way of depositing with the trustee with respect thereto money or
securities before due for the purpose of paying when due) or exchange any 6-3/4%
Senior Subordinated Debentures or any Additional Permitted Indebtedness, or make
any purchase,  redemption or acquisition for value of (or any offer to purchase,
redeem or acquire) any 6-3/4% Senior  Subordinated  Debentures or any Additional
Permitted  Indebtedness,  whether  as a  result  of a  Change  of  Control,  the
consummation  of asset sales or otherwise;  provided,  however,  that Silgan may
Refinance   outstanding  Permitted   Subordinated   Indebtedness  or  Additional
Permitted Senior Indebtedness through Permitted Debt Repurchases,  (ii) amend or
modify,  or permit the amendment or modification of, any provision of the 6-3/4%
Senior Subordinated Debenture Documents or any Additional Permitted Indebtedness
Documents other than any amendments or modifications  which could not reasonably
be  expected to be adverse to the  interests  of the Lenders and which have been
approved by the  Administrative  Agent,  (iii) after the  execution  or delivery
thereof,  amend or  modify,  or permit the  amendment  or  modification  of, any
provision  of  the  Accounts   Receivable  Facility  Documents  other  than  any
amendments or modifications thereto which could not reasonably be expected to be
adverse to the  interests  of the  Lenders or (iv)  amend,  modify or change its
certificate of incorporation  (including,  without limitation,  by the filing or
modification  of any  certificate  of  designation)  or by-laws  (or  equivalent
organizational  documents)  other  than  amendments,  modifications  or  changes
thereto which could not reasonably be expected to be adverse to the interests of
the Lenders. In addition to the foregoing,  none of the Borrowers will, nor will
it permit any of its Subsidiaries to, (i) make any voluntary or optional payment
or  prepayment  on or  redemption  or  acquisition  for value of or exchange the
Campbell  Seller  Note or (ii)  amend or  modify,  or permit  the  amendment  or
modification  of, any  provision of the Campbell  Seller Note,  the Campbell Can
Guaranty,  Section 6(b) of the Campbell Can Pledge Agreement or any Campbell Can
Acquisition  Document to the extent that such  amendment or  modification  would
decrease the

                                      -89-
<PAGE>

purchase price required to be paid by Campbell Soup or a Subsidiary  thereof for
the capital stock or assets of CanCo and its  Subsidiaries  upon the exercise of
its remedies under the Campbell Can Acquisition Documents,  change the assets on
which  Campbell Soup has a Lien or an option to purchase or alter in any way the
obligation  of  Campbell  Soup or a  Subsidiary  thereof  to  repay  in full all
Obligations  (other than accrued Fees) of CanCo up to the CanCo  Permitted  Debt
Amount or, with respect to accrued Fees of CanCo,  the  obligation of Containers
or any other  Borrower  other than CanCo to repay in full all such accrued Fees,
upon the exercise by Campbell Soup of its remedies under the Campbell Can Pledge
Agreement.

          8.11 Creation of Subsidiaries and Unrestricted  Subsidiaries.  None of
the Borrowers will, nor will it permit any of its  Subsidiaries  to,  establish,
create  or  acquire  after  the  Initial   Borrowing   Date  any  Subsidiary  or
Unrestricted  Subsidiary;   provided,   however,  Silgan  and  its  Wholly-Owned
Subsidiaries  shall  be  permitted  to  (I)  establish  or  create  Wholly-Owned
Subsidiaries, (II) establish, create or acquire Unrestricted Subsidiaries to the
extent permitted by Section 8.05(xiv),  (III) acquire  Subsidiaries which are at
least  80% owned by  Silgan  and its  Wholly-Owned  Subsidiaries  to the  extent
permitted by Section  8.02(x) and (IV) acquire or create other  non-Wholly-Owned
Subsidiaries to the extent permitted by Section 8.05(xiv), so long as (i) in the
case of preceding  clauses (I), (II), (III) and (IV), at least 10 Business Days'
prior  written  notice  thereof  is given to the  Administrative  Agent (or such
shorter period of time as is acceptable to the Administrative  Agent),  (ii) the
capital  stock of such new  Subsidiary  or  Unrestricted  Subsidiary  is pledged
pursuant to (and to the extent  required by) the applicable  Security  Document,
and the certificates  representing  such stock,  together with stock powers duly
executed in blank, are delivered to the Collateral Agent, (iii) in the case of a
Domestic  Subsidiary,  such new  Domestic  Subsidiary  executes  and  delivers a
counterpart of the US  Borrowers/Subsidiaries  Guaranty, the US Pledge Agreement
and the US Security  Agreement,  (iv) in the case of any Foreign Subsidiary that
is (or is  required  to  become)  a  Foreign  Credit  Party,  such  new  Foreign
Subsidiary executes and delivers counterparts of the applicable Foreign Security
Documents  (or new  Foreign  Security  Documents)  and Related  Foreign  Company
Guaranty,  and (v) such new  Subsidiary  takes all such other  actions as may be
required by Section  7.09.  In addition,  Silgan will cause each new  Subsidiary
that is required to become a Credit Party to deliver to the Administrative Agent
all other relevant  documentation of the type described in Sections 5.01(c), (d)
and (i)(2) as such new Subsidiary  would have had to deliver if it were a Credit
Party on the  Initial  Borrowing  Date.  In  addition,  at such time (if any) as
Silgan Lodi  conducts any  operations or owns or acquires any assets (other than
immaterial  assets),  Silgan  shall cause  Silgan Lodi to take all such  actions
otherwise  required  above in this  Section  8.11 as if Silgan Lodi were a newly
established,  created or acquired Domestic Subsidiary.  Notwithstanding anything
to  the  contrary  contained  in  this  Section  8.11,  so  long  as  the  CanCo
Restrictions  are in effect,  in no event shall CanCo or any of its Subsidiaries
establish, create or acquire any Subsidiary or Unrestricted Subsidiary.

          8.12  Limitation on  Restrictions  on  Subsidiary  Dividends and Other
Distributions.  None  of the  Borrowers  will,  nor  will it  permit  any of its
Subsidiaries to, directly or indirectly,  create or otherwise cause or suffer to
exist or become  effective any  encumbrance or restriction on the ability of any
such  Subsidiary  to (a) pay  dividends or make any other  distributions  on its
capital stock or any other interest or  participation  in its profits,  owned by
such Borrower or any Subsidiary of such Borrower,  or pay any Indebtedness  owed
to such Borrower or a Subsidiary of such Borrower, (b) make loans or advances to
such Borrower or (c) transfer any of its properties

                                      -90-
<PAGE>

or  assets  to such  Borrower,  except  for such  encumbrances  or  restrictions
existing under or by reason of (i)  applicable  law, (ii) this Agreement and the
other Credit Documents, (iii) the 6-3/4% Senior Subordinated Debenture Documents
or any Additional Permitted Indebtedness Documents (so long as such restrictions
are no more  restrictive  in any  material  respect  than those set forth in the
6-3/4% Senior  Subordinated  Debenture  Documents),  (iv)  customary  provisions
restricting  subletting  or  assignment  of any lease or other  contract of such
Borrower or a Subsidiary of such Borrower,  (v)  restrictions on the transfer of
any asset subject to a Lien permitted by Section 8.01, (vi)  restrictions on the
Receivables  Subsidiary  to the  extent  set  forth in the  Accounts  Receivable
Facility Documents,  (vii) agreements with principal customers of Silgan and its
Subsidiaries  restricting  the  transfer of assets  substantially  dedicated  to
products sold to such customers  (although such restrictions  shall not apply to
the granting of Liens pursuant to the Security  Documents),  (viii) restrictions
imposed on Canadian Holdco and its Subsidiaries  pursuant to the Canadian Credit
Facility,  (ix)  customary  restrictions  imposed by any agreement or instrument
governing   Indebtedness  of  any  Foreign  Subsidiary  incurred  under  Section
8.04(xviii)  so  long  as  (A)  such  restrictions  are  not  applicable  to any
Subsidiary  of  Silgan  other  than  the  Foreign   Subsidiary   incurring  such
Indebtedness  and its Foreign  Subsidiaries and (B) Silgan has made a good faith
determination  that the imposition of such restrictions  could not reasonably be
expected to cause Silgan or any of its other Subsidiaries to fail to comply with
all of their respective  obligations  under agreements which they are a party to
or subject to (including,  but not limited to, the Credit Documents,  the 6-3/4%
Senior   Subordinated   Debenture   Documents  and  any   Additional   Permitted
Indebtedness  Documents),  and (x)  restrictions  only of the type  described in
clauses  (a),  (b) and (c) above in this  Section  8.12 which are imposed on any
Subsidiary of Silgan acquired pursuant to a Permitted  Acquisition to the extent
such  restrictions are set forth in any Indebtedness  assumed in connection with
such Permitted  Acquisition so long as such  restrictions  are not applicable to
any  Subsidiary  of Silgan  other than the  Subsidiary  being  acquired and such
restrictions  were not created or imposed in connection with or in contemplation
of such Permitted Acquisition.

          8.13  Limitation  on  Issuances  of  Capital  Stock.  (a)  None of the
Borrowers  will  permit  any of its  Subsidiaries  to issue  any  capital  stock
(including  by way of sales of  treasury  stock) or any  options or  warrants to
purchase,  or  securities  convertible  into,  capital  stock,  except  for  (i)
transfers and  replacements of then  outstanding  shares of capital stock,  (ii)
stock splits,  stock  dividends and similar  issuances which do not decrease the
percentage ownership of such Borrower or any of its Subsidiaries in any class of
the  capital  stock of such  Subsidiary,  (iii)  issuances  of  common  stock by
Wholly-Owned  Subsidiaries  of  Silgan  to  Silgan  or a  Wholly-Owned  Domestic
Subsidiary  thereof,  (iv) issuances of common stock by Foreign  Subsidiaries of
Silgan to Silgan or a Wholly-Owned  Subsidiary thereof,  (v) issuances of common
stock  by newly  created  Subsidiaries  in  accordance  with  the  terms of this
Agreement and (vi) in the case of Foreign Subsidiaries of Silgan, nominal shares
to local nationals and to qualify directors, in each case to the extent required
by applicable law.

          (b)  None  of the  Borrowers  will,  nor  will  it  permit  any of its
Subsidiaries  to, issue any class of (i)  preferred  stock other than  Qualified
Preferred Stock of Silgan or (ii) redeemable common stock other than at the sole
option of such Borrower or such Subsidiary.

          8.14 Business.  (a) None of the Borrowers  will, nor will any Borrower
permit any of its Subsidiaries or Unrestricted Subsidiaries to, engage (directly
or indirectly) in any business

                                      -91-
<PAGE>

other than the packaging business and businesses  reasonably related,  ancillary
or complementary thereto.

          (b)  Notwithstanding  anything  to  the  contrary  contained  in  this
Agreement, the Borrowers will not permit the Receivables Subsidiary to engage in
any business activities  (including,  but not limited to, making acquisitions or
Investments) or incur or assume any liabilities other than, in each case, solely
in connection  with the  transactions  contemplated  by the Accounts  Receivable
Facility Documents.

          (c)  Notwithstanding  anything  to  the  contrary  contained  in  this
Agreement,  so long as the CanCo  Restrictions are in effect,  CanCo Holding (1)
will hold no assets other than the capital stock of CanCo and Intercompany Loans
to Silgan and its other Subsidiaries  otherwise  permitted to be made under this
Agreement  and engage in no business  other than (i) those  activities  that are
incidental to (x) the maintenance of its corporate  existence in compliance with
applicable law, (y) legal, tax and accounting  matters in connection with any of
the permitted  activities  under this clause (c) and (z) the entering  into, and
performing its obligations under, this Agreement,  the other Credit Documents to
which it is a party and the Campbell Can Acquisition  Documents to which it is a
party and (2) may in no event  transfer the capital  stock of CanCo to Silgan or
any other Subsidiary or Affiliate.

          8.15 Change of Name.  None of the Borrowers  will,  nor will it permit
any of its  Subsidiaries  which are Credit  Parties to, change its legal name or
jurisdiction  of  organization  unless  and until (i) it shall have given to the
Administrative  Agent and the  Collateral  Agent at least 10 days' prior written
notice  of its  intention  so to do,  clearly  describing  such new name  and/or
jurisdiction of organization and providing such other  information in connection
therewith as the  Administrative  Agent and the Collateral  Agent may reasonably
request,  and  (ii)  with  respect  to such  new  name  and/or  jurisdiction  of
organization,  it shall have taken all action,  reasonably  satisfactory  to the
Administrative  Agent  and  the  Collateral  Agent,  to  maintain  the  security
interests  granted  by any  Borrower  or any  such  other  Credit  Party  to the
Collateral  Agent in the  Collateral  pursuant to any  Security  Document at all
times fully perfected and in full force and effect.

          8.16  Designated  Senior  Indebtedness.  Silgan will not designate any
Indebtedness,  other than the Obligations,  as "Designated Senior  Indebtedness"
for purposes of the 6-3/4%  Senior  Subordinated  Debentures  or any  Additional
Permitted Subordinated Indebtedness.

          Section  9.  Events  of  Default.  Upon the  occurrence  of any of the
following specified events (each an "Event of Default"):

          9.01 Payments.  Any Borrower shall (i) default in the payment when due
of any Unpaid  Drawings or of any  principal of the Loans or the Notes,  or (ii)
default,  and such default shall continue  unremedied for three or more Business
Days,  in the  payment  when due of any  interest  on Unpaid  Drawings or of any
interest  on the Loans or the Notes or of any Fees or any  other  amounts  owing
hereunder or thereunder; or

                                      -92-
<PAGE>

          9.02 Representations,  etc. Any representation,  warranty or statement
made or deemed made by any Credit Party  herein or in any other Credit  Document
or in any  certificate  delivered  pursuant  hereto or thereto shall prove to be
untrue or  inaccurate  in any  material  respect on the date as of which made or
deemed made; or

          9.03  Covenants.  Any  Credit  Party  shall  (i)  default  in the  due
performance or observance by it of any term,  covenant or agreement  (other than
those  referred  to in Sections  9.01 and 9.02 and clause  (ii) of this  Section
9.03) contained in this Agreement and such default shall continue unremedied for
a period of 30 days after written notice to the Borrowers by the  Administrative
Agent  or the  Required  Lenders  or  (ii)  default  in the due  performance  or
observance  by it of any  term,  covenant  or  agreement  contained  in  Section
7.01(f)(i),  7.07,  7.12 or Section 8 and, in the case of a default  pursuant to
Section 7.12, such default shall continue unremedied for a period of 14 days; or

          9.04 Default  Under Other  Agreements.  (i) Any Borrower or any of its
Subsidiaries  shall (x) default in any payment of any  Indebtedness  (other than
the Obligations and the Intercompany  Notes) beyond the period of grace, if any,
provided  in the  instrument  or  agreement  under which such  Indebtedness  was
created or (y) default in the  observance  or  performance  of any  agreement or
condition  relating  to any  Indebtedness  (other than the  Obligations  and the
Intercompany  Notes) or contained  in any  instrument  or agreement  evidencing,
securing or relating thereto, or any other event shall occur or condition exist,
the  effect of which  default or other  event or  condition  is to cause,  or to
permit  the holder or  holders  of such  Indebtedness  (or a trustee or agent on
behalf of such holder or holders) to cause (determined without regard to whether
any  notice  is  required  but  giving  effect to any  grace  period),  any such
Indebtedness to become due prior to its stated maturity or (ii) any Indebtedness
of any  Borrower  or any of its  Subsidiaries  shall be  declared  to be due and
payable,  or required to be prepaid other than by a regularly scheduled required
prepayment,  prior to the stated  maturity  thereof,  provided that it shall not
constitute  an Event of Default  under this  Section  9.04 unless the  aggregate
amount of all  Indebtedness  referred to in clauses (i) and (ii) above equals or
exceeds $10,000,000; or

          9.05 Bankruptcy,  etc. Any Borrower or any of its  Subsidiaries  shall
commence a voluntary case concerning  itself under Title 11 of the United States
Code  entitled  "Bankruptcy,"  as now or hereafter in effect,  or any  successor
thereto (the "Bankruptcy Code"); or an involuntary case is commenced against any
Borrower or any of its Subsidiaries, and the petition is not controverted within
10 days, or is not dismissed within 60 days, after  commencement of the case; or
a  custodian  (as defined in the  Bankruptcy  Code) is  appointed  for, or takes
charge of, all or  substantially  all of the  property of any Borrower or any of
its Subsidiaries, or any Borrower or any of its Subsidiaries commences any other
proceeding under any reorganization,  arrangement, adjustment of debt, relief of
debtors,   dissolution,   insolvency  or  liquidation  or  similar  law  of  any
jurisdiction  whether now or hereafter in effect relating to any Borrower or any
of its  Subsidiaries,  or there is commenced  against any Borrower or any of its
Subsidiaries  any such proceeding  which remains  undismissed for a period of 60
days, or any Borrower or any of its  Subsidiaries  is  adjudicated  insolvent or
bankrupt;  or any  order of  relief or other  order  approving  any such case or
proceeding is entered;  or any Borrower or any of its  Subsidiaries  suffers any
appointment of any custodian or the like for it or any  substantial  part of its
property to continue  undischarged  or unstayed for a period of 60 days;  or any
Borrower or any of its

                                      -93-
<PAGE>

Subsidiaries  makes a general  assignment  for the benefit of creditors;  or any
corporate  action is taken by any  Borrower or any of its  Subsidiaries  for the
purpose of effecting any of the foregoing; or

          9.06  ERISA.  (i) (a) A  single-employer  plan (as  defined in Section
4001(a)(15)  of  ERISA)  established  by any  Borrower,  any  Subsidiary  of any
Borrower  or any ERISA  Affiliate  shall fail to maintain  the  minimum  funding
standard  required by Section 412 of the Code for any plan year or part  thereof
or a waiver of such  standard or the  extension  of any  amortization  period is
sought or granted  under  Section 412 of the Code,  (b) any Plan is,  shall have
been or is likely to be  terminated  or the subject of  termination  proceedings
under  ERISA or an event has  occurred  entitling  the PBGC to  terminate a Plan
under  Section  4042(a)  of ERISA,  (c) any Plan  other  than a Plan  which is a
multiemployer  plan (as defined in Section  4001(a)(3)  of ERISA)  shall have an
Unfunded Current Liability,  (d) any Borrower, any Subsidiary of any Borrower or
an ERISA  Affiliate  has  incurred  or is likely to incur a  liability  to or on
account of a Plan under Section 515, 4062,  4063, 4064, 4201 or 4204 of ERISA or
(e) a  contribution  required to be made with respect to a Foreign  Pension Plan
has not been timely made, or any Borrower or any  Subsidiary of any Borrower has
incurred  liabilities  pursuant to one or more Foreign Pension Plans; (ii) there
shall  result  from any such  event or events  described  in clause  (i) (x) the
imposition  of a lien upon the assets of any  Borrower,  any  Subsidiary  of any
Borrower  or an ERISA  Affiliate,  (y) the  provision  of security to induce the
issuance of a waiver or extension of any funding  requirement  under Section 412
of the Code, or (z)  liability or a material risk of incurring  liability to the
PBGC or the  Internal  Revenue  Service or a Plan or a trustee  appointed  under
ERISA; and (iii) the events described in clauses (i) and (ii), in the opinion of
the Required  Lenders,  could  reasonably be expected to have a Material Adverse
Effect; or

          9.07 Guaranties.  Any Guaranty or any provision thereof shall cease to
be in full  force or effect,  or any  Guarantor,  or any Person  acting by or on
behalf of such  Guarantor,  shall deny or disaffirm  its  obligations  under any
Guaranty  to  which it is  party,  or any  Guarantor  shall  default  in the due
performance  or observance of any term,  covenant or agreement on its part to be
performed or observed pursuant to any Guaranty to which it is party; or

          9.08  Security  Documents.  Any  Security  Document  shall,  after the
execution and delivery  thereof,  cease to be in full force and effect, or shall
cease to give the  Collateral  Agent the Liens,  rights,  powers and  privileges
purported to be created  thereby  (including,  without  limitation,  a perfected
security interest in, and Lien on, all the Collateral  covered thereby except as
provided in such Security  Document),  in favor of the Collateral  Agent for the
benefit of the respective Secured Creditors,  in each case superior to and prior
to the rights and Liens of all third Persons  (other than Permitted  Liens),  or
any Credit Party shall default in the due performance or observance of any term,
covenant or agreement  on its part to be  performed or observed  pursuant to any
Security Document beyond the period of grace, if any, provided for therein; or

          9.09  Judgments.  One or more  judgments  or decrees  shall be entered
against any  Borrower or any of its  Subsidiaries  involving,  when added to any
other  judgments  or  decrees  against  any  Borrower  and its  Subsidiaries,  a
liability  (not paid or fully  covered  by a  reputable  and  solvent  insurance
company) of  $10,000,000  or more,  and all such  judgments or decrees shall not
have been vacated,  discharged or stayed or bonded pending appeal within 60 days
from the entry thereof; or

                                      -94-
<PAGE>

          9.10 Change of Control. A Change of Control shall occur; or

          9.11 Accounts  Receivable  Facility.  After the execution and delivery
thereof,  (i) the  Receivables  Subsidiary  shall  default in any payment of any
amounts beyond the period of grace, if any, provided in the Accounts  Receivable
Facility  Documents or (ii) Silgan or any of its  Subsidiaries  shall default in
the  observance or  performance  of any agreement or condition  contained in the
Accounts  Receivable  Facility Documents to which they are a party, or any other
event shall occur or condition exist, the effect of which default or other event
or condition is to cause,  or to permit the holder or holders of the obligations
of the  Receivables  Subsidiary  under the  Accounts  Receivable  Facility (or a
trustee  or agent on behalf  of such  holder or  holders)  to cause  (determined
without  regard to whether any notice is required but giving effect to any grace
period), the Accounts Receivable Facility to become due (or unwind) prior to its
stated maturity or (iii) the obligations of the Receivables  Subsidiaries  under
the Accounts  Receivable  Facility  shall be declared to be due and payable,  or
required to be prepaid other than by a regularly scheduled required  prepayment,
prior to the stated maturity thereof;

then, and in any such event, and at any time thereafter, if any Event of Default
shall then be continuing,  the Administrative Agent, upon the written request of
the Required Lenders, shall by written notice to the Borrowers,  take any or all
of the following actions,  without prejudice to the rights of the Administrative
Agent,  any Lender or the holder of any Note to enforce  its claims  against any
Borrower  (provided that, if an Event of Default specified in Section 9.05 shall
occur with respect to any Borrower, the result which would occur upon the giving
of written notice by the  Administrative  Agent to the Borrowers as specified in
clauses (i) and (ii) below shall occur  automatically  without the giving of any
such  notice):  (i)  declare  the Total  Commitment  terminated,  whereupon  all
Commitments shall forthwith terminate  immediately and any Commitment Commission
shall  forthwith  become due and payable  without any other  notice of any kind;
(ii) declare the  principal of and any accrued  interest in respect of all Loans
and  the  Notes  and all  Obligations  owing  hereunder  and  thereunder  to be,
whereupon the same shall become,  forthwith due and payable without presentment,
demand,  protest or other notice of any kind,  all of which are hereby waived by
each of the  Borrowers;  (iii)  exercise any rights or remedies under any of the
Guaranties  and/or in its capacity as Collateral Agent under any of the Security
Documents;  (iv)  direct  the  Revolving  Borrowers  to pay (and  the  Revolving
Borrowers  agree  that  upon  receipt  of  such  notice  they  will  pay) to the
Administrative  Agent at the Payment Office such  additional  amount of cash (in
the respective  Currencies in which such Letters of Credit are denominated),  to
be held as security by the Administrative  Agent in the Cash Collateral Account,
as is equal to the aggregate  Stated Amount of all then  outstanding  Letters of
Credit;  and (v)  terminate  any  Letter of Credit  which may be  terminated  in
accordance with its terms.

          Section 10. Definitions and Accounting Terms.

          10.01 Defined Terms.  As used in this  Agreement,  the following terms
shall have the following  meanings  (such  meanings to be equally  applicable to
both the singular and plural forms of the terms defined):

          "A Term Loan" shall have the meaning provided in Section 1.01(a).

                                      -95-
<PAGE>

          "A Term Loan Commitment"  shall mean, for each Lender,  the amount set
forth  opposite  such  Lender's  name in  Schedule I  directly  below the column
entitled "A Term Loan  Commitment",  as same may be (x)  terminated  pursuant to
Section 3.03 or 9 or (y) adjusted  from time to time as a result of  assignments
to or from such Lender prior to the Initial  Borrowing Date pursuant to Sections
1.13 and/or 12.04(b).

          "A Term Loan Maturity Date" shall mean June 30, 2011.

          "A Term Loan Scheduled  Repayment"  shall have the meaning provided in
Section 4.02(b).

          "A Term Note" shall have the meaning provided in Section 1.05(a).

          "Accounts   Receivable   Facility"   shall   mean   the   transactions
contemplated by the Accounts Receivable Facility Documents pursuant to which the
Designated  Credit Parties sell their accounts  receivable and related assets to
the Receivables Subsidiary for resale by the Receivables Subsidiary as part of a
customary asset  securitization  transaction  involving accounts  receivable and
related assets.

          "Accounts  Receivable  Facility  Documents" shall mean the pooling and
servicing  agreement,  the receivables  purchase agreement and each of the other
documents and agreements entered into in connection with the Accounts Receivable
Facility,  all of the terms and  conditions  of which  shall be  required  to be
reasonably satisfactory in form and substance to the Agents (it being understood
that at least  15  Business  Days  prior to the  entering  into of any  Accounts
Receivable  Facility,  drafts of the Accounts Receivable Facility Documents with
respect  thereto shall be  distributed  to the Agents for their review,  and the
Agents shall receive all subsequent drafts of such Accounts  Receivable Facility
Documents).

          "Additional  Collateral"  shall mean any assets or  properties  of any
Credit Party given as collateral pursuant to any Additional Security Document.

          "Additional Permitted Indebtedness" shall have the meaning provided in
Section 8.04(x).

          "Additional   Permitted   Indebtedness   Documents"   shall  mean  all
indentures,  securities purchase agreements, note agreements and other documents
and  agreements  entered  into  in  connection  with  any  Additional  Permitted
Indebtedness.

          "Additional  Permitted  Senior  Indebtedness"  shall have the  meaning
provided in Section 8.04(x).

          "Additional  Permitted  Subordinated   Indebtedness"  shall  have  the
meaning provided in Section 8.04(x).

          "Additional  Security  Documents"  shall have the meaning  provided in
Section 7.09(a) and shall include any additional security documentation executed
and delivered pursuant to Sections 7.10 and/or 8.11.

                                      -96-
<PAGE>

          "Adjusted  Consolidated  Net  Income"  shall  mean,  for  any  period,
Consolidated  Net Income of Silgan and its Subsidiaries for such period plus the
amount of all net non-cash charges (including, without limitation, depreciation,
amortization,  deferred tax expense,  non-cash interest expense,  write-downs of
inventory and other  non-cash  charges) that were deducted in (or excluded from)
arriving at the  Consolidated Net Income of Silgan and its Subsidiaries for such
period less the amount of all net non-cash  gains and gains from sales of assets
(other than sales of  inventory in the  ordinary  course of business)  that were
added in arriving at said Consolidated Net Income for such period.

          "Administrative  Agent"  shall have the meaning  provided in the first
paragraph of this  Agreement,  and shall  include any  successor  Administrative
Agent appointed pursuant to Section 11.09.

          "Affiliate"  shall mean, with respect to any Person,  any other Person
directly or indirectly controlling (including, but not limited to, all directors
and officers of such Person),  controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to control another Person if
such Person possesses,  directly or indirectly, the power to direct or cause the
direction of the management and policies of such other Person,  whether  through
the ownership of voting securities, by contract or otherwise.

          "Agents" shall mean and include the  Administrative  Agent and Bank of
America, N.A. in its capacity as a Co-Syndication Agent.

          "Aggregate RL Exposure"  shall mean,  at any time,  the sum of (i) the
aggregate  principal  amount of all Revolving Loans then  outstanding  (for this
purpose,  using  the  Dollar  Equivalent  of  each  Primary  Alternate  Currency
Revolving  Loan then  outstanding),  (ii) the aggregate  amount of all Letter of
Credit  Outstandings at such time, and (iii) the aggregate  principal  amount of
all Swingline Loans then outstanding.

          "Agreement" shall mean this Credit Agreement, as same may be modified,
supplemented or amended from time to time.

          "Alternate Currency" shall mean each Currency other than Dollars.

          "Alternate Currency Incremental Term Loan" shall mean each Incremental
Term Loan denominated in an Alternate Currency.

          "Alternate   Currency  Loan"  shall  mean  each   Alternate   Currency
Incremental Term Loan and/or Primary Alternate  Currency  Revolving Loan, as the
context may require.

          "Applicable  Commitment Commission Percentage" and "Applicable Margin"
shall mean: (A) with respect to B Term Loans  maintained as (x) Base Rate Loans,
0.25% per annum,  and (y) Eurodollar  Loans,  1.25% per annum,  and (B) from and
after any Start  Date to and  including  the  corresponding  End Date,  (i) with
respect to the Commitment  Commission,  the respective per annum  percentage set
forth below under the column "Applicable  Commitment Commission  Percentage" and
(ii) with respect to A Term Loans,  Revolving  Loans and  Swingline  Loans,  the
respective percentage per annum set forth below under the respective Tranche and
Type of Loans and (in the case of preceding  clauses (i) and (ii))  opposite the
respective Level

                                      -97-
<PAGE>

(i.e.,  Level 1,  Level 2, Level 3, Level 4, Level 5 or Level 6, as the case may
be) indicated to have been  achieved on an  applicable  Test Date for such Start
Date (as shown in the respective  officer's  certificate  delivered  pursuant to
Section 7.01(e) or the first proviso below):

<TABLE>

                                                             A Term Loans and
                                                              Revolving Loans      A Term Loans and        Applicable
                                                            maintained as Base      Revolving Loans        Commitment
                                Total                         Rate Loans and         maintained as         Commission
   Level                   Leverage Ratio                     Swingline Loans       Euro Rate Loans        Percentage
   -----                   --------------                     ---------------       ---------------        ----------
   <S>       <C>                                                   <C>                   <C>                 <C>
     1       Less than 1.50:1.00                                   0.00%                 0.75%               0.20%

     2       Greater than or equal to 1.50:1.00 but
             less than 2.00:1.00                                   0.00%                 0.875%              0.20%

     3       Greater than or equal to 2.00:1.00 but
             less than 2.50:1.00                                   0.00%                 1.00%               0.25%

     4       Greater than or equal to 2.50:1.00 but
             less than 3.00:1:00                                   0.125%                1.125%              0.30%

     5       Greater than or equal to 3.00:1.00 but
             less than 3.50:1:00                                   0.25%                 1.25%               0.375%

     6       Greater than or equal to 3.50:1.00                    0.50%                 1.50%               0.50%

</TABLE>

; provided,  however,  that if Silgan fails to deliver the financial  statements
required to be delivered  pursuant to Section 7.01(a) or (b) (accompanied by the
officer's  certificate  required to be  delivered  pursuant  to Section  7.01(e)
showing the  applicable  Total  Leverage  Ratio on the relevant Test Date) on or
prior to the  respective  date required by such  Sections,  then Level 6 pricing
shall apply until such time, if any, as the financial statements required as set
forth  above and the  accompanying  officer's  certificate  have been  delivered
showing the pricing for the  respective  Margin  Reduction  Period is at a level
which is less than Level 6 (it being  understood  that,  in the case of any late
delivery of the financial  statements and officer's  certificate as so required,
any  reduction in the  Applicable  Commitment  Commission  Percentage  or in the
Applicable  Margin  shall apply only from and after the date of the  delivery of
the complying financial statements and officer's certificate); provided further,
that Level 6 pricing  shall  apply at all times when a  Specified  Default or an
Event of Default  is in  existence.  Notwithstanding  anything  to the  contrary
contained in the immediately  preceding sentence (other than the further proviso
thereof),  (A)  Level 4 pricing  shall  apply for the  period  from the  Initial
Borrowing  Date  through,  but not  including,  the first  Start  Date after the
Initial Borrowing Date, and (B) with respect to each Tranche of Incremental Term
Loans (to the extent then  outstanding),  the  Applicable  Margin  shall be that
percentage set forth in, or calculated in accordance with,  Section 1.14 and the
relevant Incremental Term Loan Commitment Agreement.

          "Applicable  Currency"  shall mean, (i) for any Tranche of Incremental
Term Loans,  the Currency for such Tranche  designated in the  Incremental  Term
Loan Commitment Agreement for such Tranche,  (ii) for A Term Loans, B Term Loans
and Swingline Loans,

                                      -98-
<PAGE>

Dollars,  and (iii) for Revolving Loans and Letters of Credit,  Dollars and each
Primary Alternate Currency.

          "Asset  Sale" shall mean any sale,  transfer or other  disposition  by
Silgan  or any of its  Subsidiaries  to any  Person  other  than to  Silgan or a
Wholly-Owned  Subsidiary of Silgan of any asset (including,  without limitation,
any  capital  stock or other  securities  of, or equity  interests  in,  another
Person) other than sales of assets pursuant to Sections 8.02 (i), (ii), (iv) and
(v).

          "Assignment  and Assumption  Agreement"  shall mean the Assignment and
Assumption  Agreement  substantially  in the form of  Exhibit  K  (appropriately
completed).

          "Associated Costs Rate" shall mean the percentage rate per annum to be
charged in addition to the interest  rate which is intended to  compensate  each
Lender for the cost to such  Lender of  compliance  with (a) the cash ratios and
special  deposit  requirements  of  the  Bank  of  England  and/or  the  banking
supervision or other costs imposed by the UK Financial Services Authority (or in
either case, any other  authority  which replaces all or any of its  functions),
determined  in  accordance  with  Schedule  VIII,  and  (b)  any  reserve  asset
requirements of the European Central Bank.

          "B Lenders" shall have the meaning provided in Section 4.02(l).

          "B Term Loan" shall have the meaning provided in Section 1.01(b).

          "B Term Loan Commitment"  shall mean, for each Lender,  the amount set
forth  opposite  such  Lender's  name in  Schedule I  directly  below the column
entitled "B Term Loan  Commitment,"  as same may be (x)  terminated  pursuant to
Section 3.03 or 9 or (y) adjusted  from time to time as a result of  assignments
to or from such Lender prior to the Initial  Borrowing Date pursuant to Sections
1.13 and/or 12.04(b).

          "B Term Loan Maturity Date" shall mean June 30, 2012.

          "B Term Loan Scheduled  Repayment"  shall have the meaning provided in
Section 4.02(c).

          "B Term Note" shall have the meaning provided in Section 1.05(a).

          "Bankruptcy Code" shall have the meaning provided in Section 9.05.

          "BAS" shall mean Banc of America  Securities  Inc., in its  individual
capacity,  and  any  successor  entity  thereto  by  merger,   consolidation  or
otherwise.

          "Base Rate" shall  mean,  at any time,  the higher of (i) 1/2 of 1% in
excess of the Federal Funds Rate at such time and (ii) the Prime Lending Rate at
such time.

          "Base Rate Loan" shall mean (i) each Swingline Loan and (ii) any other
Loan (other than an  Alternate  Currency  Loan except as  otherwise  provided in
Section  1.16)  designated

                                      -99-
<PAGE>

or deemed designated as a Base Rate Loan by the respective  Borrower at the time
of the incurrence thereof or conversion thereto.

          "Borrower"  shall have the meaning  provided in the first paragraph of
this Agreement.

          "Borrowing"  shall mean the  borrowing of one Type of Loan of a single
Tranche from all the Lenders having  Commitments  of the respective  Tranche (or
from the  Swingline  Lender in the case of Swingline  Loans) on a given date (or
resulting  from a conversion or  conversions on such date) having in the case of
Euro Rate Loans the same Interest Period; provided that Base Rate Loans incurred
pursuant to Section 1.10(b) shall be considered part of the related Borrowing of
Eurodollar Loans.

          "Business  Day" shall mean (i) for all purposes  other than as covered
by clause (ii) below, any day except Saturday, Sunday and any day which shall be
in New York City a legal  holiday  or a day on which  banking  institutions  are
authorized by law or other  government  action to close and (ii) with respect to
all notices and determinations in connection with, and payments of principal and
interest on or with respect to, Euro Rate Loans, any day which is a Business Day
described  in clause  (i) above and which is also (A) a day for  trading  by and
between  banks in the relevant  interbank  market and which shall not be a legal
holiday or a day on which banking institutions are authorized or required by law
or other  government  action to close in the city where the  applicable  Payment
Office of the Administrative Agent is located in respect of such Euro Rate Loans
and (B) in relation to any payment in Euros,  a day on which the  Trans-European
Automated Real-Time Gross Settlement Express Transfer (TARGET) System is open.

          "Calculation Period" shall mean the Test Period most recently ended on
or prior to the date that any  determination is required to be made hereunder on
a Pro Forma Basis.

          "Campbell  Can   Acquisition"   shall  mean  the  prior   purchase  of
substantially  all of the prior steel  manufacturing  assets of Campbell Soup by
CanCo in accordance with the Campbell Can Acquisition Documents.

          "Campbell  Can  Acquisition  Documents"  shall  mean (i) the  Purchase
Agreement by and among Campbell Soup,  CanCo and  Containers,  (ii) the Campbell
Can Pledge  Agreement,  (iii) the Campbell Can  Guaranty,  (iv) the Campbell Can
Supply  Agreement,  (v) the  Campbell  Seller  Note,  (vi) the  Shared  Services
Agreement by and among  Campbell  Soup,  CanCo and  Containers,  (vii) the Labor
Supply  Agreement by and among Campbell Soup,  CanCo and Containers,  (viii) the
Intercompany  Agreement  by  and  among  Containers,  Manufacturing,  CanCo  and
Campbell Soup, (ix) all leases by and among CanCo, Containers and Campbell Soup,
(x) CanCo's certificate of incorporation and (xi) CanCo's bylaws.

          "Campbell  Can  Guaranty"  shall  mean the  guaranty  entered  into in
connection  with  the  Campbell  Can  Acquisition  which  was  made  by  Silgan,
Containers, Manufacturing, CanCo and CanCo Holding in favor of Campbell Soup.

          "Campbell  Can  Pledge  Agreement"  shall  mean the  Pledge and Rights
Agreement  entered into in connection  with the Campbell Can  Acquisition by and
among CanCo Holding, Containers, CanCo and Campbell Soup.

                                     -100-
<PAGE>

          "Campbell  Can  Supply  Agreement"  shall  mean the  Supply  Agreement
entered  into in  connection  with the  Campbell  Can  Acquisition  by and among
Containers, CanCo, CanCo Holding and Campbell Soup.

          "Campbell  Seller Note" shall mean the promissory note issued by CanCo
to Campbell Soup in an aggregate  principal amount of $3,000,000,  which note is
due on May 31, 2008 and bears  interest  at a rate of 16-2/3%  per annum  (which
interest is payable quarterly in arrears).

          "Campbell  Soup"  shall  mean  Campbell  Soup  Company,  a New  Jersey
corporation.

          "Canadian  Credit  Facility" shall mean a credit facility entered into
by Canadian Holdco and/or its Foreign  Subsidiaries  organized under the laws of
Canada (or any province  thereof) and  satisfying  the  requirements  of Section
8.04(xiv).

          "Canadian   Holdco"  shall  mean  827599   Ontario  Inc.,  an  Ontario
corporation and a Wholly-Owned Subsidiary of Plastics, or any other Wholly-Owned
Foreign  Subsidiary  or  Subsidiaries  of Plastics  organized  under the laws of
Canada (or any  province  thereof)  which  replace  827599  Ontario  Inc. as the
ultimate Canadian parent or parent companies of Silgan Plastics Canada.

          "CanCo" shall have the meaning provided in the first paragraph of this
Agreement.

          "CanCo Holding" shall mean Silgan Corporation, a Delaware corporation.

          "CanCo  Included  Debt" shall mean all  Indebtedness  of CanCo that is
required to be included in the calculation of the CanCo Permitted Debt Amount.

          "CanCo  Permitted Debt Amount" shall mean, at any time, the "Permitted
Debt  Amount"  calculated  at  such  time  under,  and as  defined  in,  CanCo's
certificate of incorporation (as such certificate of incorporation was in effect
on June 3, 1998).

          "CanCo  Restrictions" shall mean,  collectively,  (i) the restrictions
imposed on CanCo pursuant to the applicable  Campbell Can Acquisition  Documents
limiting  CanCo's ability to (x) guaranty the Obligations of the other Borrowers
pursuant to the US  Borrowers/Subsidiaries  Guaranty and to secure such guaranty
pursuant  to the  applicable  Security  Documents  and (y)  become  jointly  and
severally liable with the other Credit Parties as provided for in this Agreement
and in certain of the other  Credit  Documents,  (ii) the pledge of the  capital
stock of CanCo pursuant to the applicable Campbell Can Acquisition Documents and
(iii)  the  contractual  right of  Campbell  Soup or any  Affiliate  thereof  to
purchase  the capital  stock of CanCo or any of the assets of CanCo  (other than
inventory  in  the  ordinary  course  of  business  in  accordance  with  supply
arrangements) whether upon the occurrence of a Triggering Event or otherwise.

          "CanCo Revolving Sub-Limit" shall mean, initially,  $75,000,000,  with
the amount of the CanCo  Revolving  Sub-Limit  to be  reduced  from time to time
thereafter by the

                                     -101-
<PAGE>

principal  amount of any repayment  required to be made under Section 4.02(o) or
4.02(q)  (whether or not any  Revolving  Loans or  Swingline  Loans are actually
outstanding  at such  time);  provided  that,  notwithstanding  anything  to the
contrary  contained  above,  but except as provided  below,  the CanCo Revolving
Sub-Limit  shall  not be  reduced  to  below  $25,000,000.  Notwithstanding  the
foregoing,  the CanCo  Revolving  Sub-Limit  shall be  reduced  to zero upon any
requirement  to repay  all  outstanding  Revolving  Loans  and  Swingline  Loans
incurred by CanCo  pursuant  to Section  4.02(q)  (whether or not any  Revolving
Loans or Swingline Loans are actually outstanding at such time).

          "Capital  Expenditures"  shall mean,  with respect to any Person,  all
expenditures  by such Person  which should be  capitalized  in  accordance  with
generally accepted accounting principles and, without duplication, the amount of
all  Capitalized  Lease  Obligations  incurred by such Person (but excluding any
such expenditures that constitute Permitted Acquisitions).

          "Capitalized  Lease  Obligations"  shall  mean,  with  respect  to any
Person, all rental obligations of such Person which, under accounting principles
generally  accepted  in  the  United  States,  are or  will  be  required  to be
capitalized  on the  books of such  Person,  in each  case  taken at the  amount
thereof accounted for as indebtedness in accordance with such principles.

          "Carryover Amount" shall have the meaning provided in Section 8.07(a).

          "Cash  Collateral  Account" shall have the meaning provided in Section
4.02(a).

          "Cash Equivalents" shall mean, as to any Person, (i) securities issued
or directly and fully  guaranteed  or insured by the United States or any agency
or  instrumentality  thereof  (provided  that the full  faith and  credit of the
United States is pledged in support thereof) having  maturities of not more than
one year from the date of  acquisition,  (ii)  time  deposits,  certificates  of
deposit and money market  deposits of any commercial  bank  incorporated  in the
United States of  recognized  standing  having  capital and surplus in excess of
$50,000,000  with  maturities  of not  more  than  one  year  from  the  date of
acquisition  by such Person or any  money-market  fund sponsored by a registered
broker dealer or mutual fund  distributor,  (iii) repurchase  obligations with a
term of not  more  than  thirty  days for  underlying  securities  of the  types
described  in  clause  (i)  above   entered  into  with  any  bank  meeting  the
qualifications  specified in clause (ii) above,  (iv) commercial paper issued by
the  parent  corporation  of any  commercial  bank  (provided  that  the  parent
corporation and the commercial bank are both  incorporated in the United States)
of recognized  standing having capital and surplus in excess of $500,000,000 and
commercial paper issued by any Person incorporated in the United States rated at
least A-1 or the  equivalent  thereof  by S&P or at least P-1 or the  equivalent
thereof by Moody's  and in each case  maturing  not more than one year after the
date of acquisition by such Person,  (v) marketable direct obligations issued by
the  District  of Columbia  or any state of the United  States or any  political
subdivision  of any such state or any public  instrumentality  thereof  maturing
within one year from the date of  acquisition  and, at the time of  acquisition,
rated at least "A" by S&P or Moody's,  (vi)  investments  in money  market funds
substantially  all of whose  assets are  comprised  of  securities  of the types
described  in clauses (i) through (v) above,  and (vii) in the case of a Foreign
Subsidiary,  substantially  similar  investments  of the  type  described  above
denominated  in foreign  currencies  and from  similarly  capitalized  and rated
foreign banks in the jurisdiction in which such Foreign Subsidiary is organized.

                                     -102-
<PAGE>

          "CERCLA"   shall  mean  the   Comprehensive   Environmental   Response
Compensation  of Liability  Act of 1980, as the same may be amended from time to
time, 42 U.S.C. ss. 9601 et seq.

          "Change of Control" shall mean (i)(a) any "person" or "group"  (within
the meaning of Sections  13(d) and  14(d)(2) of the  Securities  Exchange  Act),
other than Mr. D. Greg  Horrigan,  Mr. R.  Philip  Silver  and their  respective
Affiliates,  becomes the ultimate  "beneficial  owner" (as defined in Rule 13d-3
under the Securities Exchange Act) of more than 40% of the total voting power of
the Voting Stock of Silgan and (b) Mr. D. Greg  Horrigan,  Mr. R. Philip  Silver
and their  respective  affiliates  and any spouse,  parent,  brother,  sister or
lineal  descendant of Mr. D. Greg Horrigan or Mr. R. Philip Silver  beneficially
own,  directly or  indirectly,  less than 18% of the total  voting  power of the
Voting Stock of Silgan,  (ii)  individuals  who on the Effective Date constitute
the Board of Directors of Silgan (together with any new directors whose election
by the  Board of  Directors  of  Silgan  or  whose  nomination  by the  Board of
Directors of Silgan for election by Silgan's stockholders was approved by a vote
of at least a majority of the members of the Board of  Directors  of Silgan then
in office who either  were  members of the Board of  Directors  of Silgan on the
Effective  Date or whose  election or nomination  for election was previously so
approved)  cease for any reason to  constitute  a majority of the members of the
Board of  Directors of Silgan then in office or (iii) any "change of control" or
similar event shall occur under the 6-3/4% Senior Subordinated Debentures or any
Additional Permitted Indebtedness.

          "Code" shall mean the Internal  Revenue Code of 1986,  as amended from
time to time,  and the  regulations  promulgated  thereunder  and rulings issued
thereunder.  Section  references to the Code are to the Code as in effect at the
date of this Agreement,  and to any subsequent provisions of the Code amendatory
thereof, supplemental thereto or substituted therefor.

          "Co-Documentation Agents" shall have the meaning provided in the first
paragraph of this Agreement.

          "Collateral" shall mean all US Collateral,  all Foreign Collateral and
all cash and Cash Equivalents deposited into the Cash Collateral Account.

          "Collateral  Agent"  shall  mean the  Administrative  Agent  acting as
collateral agent for the respective Secured Creditors pursuant to the respective
Security Documents,  and shall include any successor  Collateral Agent appointed
pursuant to the terms of this Agreement or the respective Security Document,  as
the case may be.

          "Commitment  Commission"  shall have the  meaning  provided in Section
3.01(a).

          "Commitments"  shall mean any of the commitments of any Lender,  i.e.,
whether the A Term Loan Commitment, the B Term Loan Commitment, each Incremental
Term Loan Commitment or the Revolving Loan  Commitment  (including such Lender's
Incremental Revolving Loan Commitment, if any).

          "Consolidated  Current  Assets" shall mean,  at any time,  the current
assets of Silgan and its  Subsidiaries at such time determined on a consolidated
basis.

                                     -103-
<PAGE>

          "Consolidated  Current  Liabilities"  shall  mean,  at any  time,  the
current  liabilities of Silgan and its Subsidiaries at such time determined on a
consolidated  basis,  provided that the current portion of the Loans  (including
any accrued  interest with respect to such current portion and accrued  interest
on the  6-3/4%  Senior  Subordinated  Debentures  and any  Additional  Permitted
Indebtedness,  in each case from the last regularly  scheduled  interest payment
date) shall not be  considered  current  liabilities  for purposes of making the
foregoing determination.

          "Consolidated  Net Income" shall mean, for any period,  the net income
(or  loss) of Silgan  and its  Subsidiaries  for such  period,  determined  on a
consolidated  basis,  provided that (i) the net income of any other Person which
is not a Subsidiary of Silgan  (including  each  Unrestricted  Subsidiary) or is
accounted  for by Silgan by the equity  method of  accounting  shall be included
only to the extent of the payment of cash  dividends  or cash  distributions  by
such other Person to Silgan or a Subsidiary thereof during such period, (ii) the
net income of any  Subsidiary of Silgan shall be excluded to the extent that the
declaration or payment of dividends or similar  distributions by that Subsidiary
of its  income is not at the time  permitted  by  operation  of the terms of its
charter or any agreement, instrument or law applicable to such Subsidiary, (iii)
there shall be excluded from such calculation (to the extent otherwise  included
therein) (A) any non-cash  charges incurred in connection with the entering into
of this Agreement and any non-cash charges in connection with the refinancing of
any  Indebtedness  and (B) any  extraordinary  non-cash  gains or  extraordinary
non-cash charges, and (iv) there shall be deducted from such calculation (to the
extent not otherwise deducted in accordance with accounting principles generally
accepted in the United States), any cash payments made in such period on account
of an  extraordinary  non-cash  charge  incurred  in such  period  or in a prior
period.

          "Consolidated  Tangible Assets" shall mean, at any time, the assets of
Silgan and its Subsidiaries determined on a consolidated basis at such time less
the amount of all intangible assets of Silgan and its Subsidiaries at such time,
including,   without  limitation,  all  goodwill,  customer  lists,  franchises,
licenses,  computer  software,  patents,  trademarks,  trade names,  copyrights,
service marks,  brand names,  unamortized  deferred  charges,  unamortized  debt
discount and capitalized research and development costs.

          "Containers" shall have the meaning provided in the first paragraph of
this Agreement.

          "Contingent  Obligation" shall mean, as to any Person,  any obligation
of such Person as a result of such Person  being a general  partner of the other
Person,  unless the underlying  obligation is expressly made  non-recourse as to
such general partner, and any obligation of such Person guaranteeing or intended
to guarantee any Indebtedness,  leases, dividends or other obligations ("primary
obligations") of any other Person (the "primary obligor") in any manner, whether
directly or indirectly,  including,  without limitation,  any obligation of such
Person,  whether or not contingent,  (i) to purchase any such primary obligation
or any  property  constituting  direct or indirect  security  therefor,  (ii) to
advance or supply  funds (x) for the  purchase  or  payment of any such  primary
obligation or (y) to maintain  working  capital or equity capital of the primary
obligor or  otherwise  to  maintain  the net worth or  solvency  of the  primary
obligor,  (iii) to purchase  property,  securities or services primarily for the
purpose of assuring the owner of any such primary  obligation  of the ability of
the primary obligor to make payment of such primary obligation or (iv) otherwise
to assure or hold harmless the holder of

                                     -104-
<PAGE>

such primary obligation against loss in respect thereof; provided, however, that
the term Contingent Obligation shall not include endorsements of instruments for
deposit or  collection  in the ordinary  course of  business.  The amount of any
Contingent  Obligation shall,  unless expressly limited by its terms to a lesser
amount, be deemed to be an amount equal to the stated or determinable  amount of
the primary  obligation in respect of which such  Contingent  Obligation is made
(or  such  lesser  amount)  or,  if not  stated  or  determinable,  the  maximum
reasonably  anticipated  liability in respect  thereof  (assuming such Person is
required to perform thereunder) as determined by such Person in good faith.

          "Co-Syndication  Agents" shall have the meaning  provided in the first
paragraph of this Agreement.

          "Credit  Documents" shall mean and include this Agreement,  each Note,
each  Guaranty,  each Security  Document  and,  after the execution and delivery
thereof, each Election to Become a Revolving Borrower, each Election to Become a
Foreign  Borrower,  each  Incremental  Term Loan  Commitment  Agreement and each
Incremental Revolving Loan Commitment Agreement.

          "Credit  Event"  shall mean the making of any Loan or the  issuance of
any Letter of Credit.

          "Credit  Party"  shall mean and include  each US Credit Party and each
Foreign Credit Party.

          "Cumulative  Consolidated  Net Income" shall mean, at any time for any
determination   thereof,   the   Consolidated  Net  Income  of  Silgan  and  its
Subsidiaries  for the period  (taken as one  accounting  period)  commencing  on
January  1,  2002 and  ending on the last day of the then  most  recently  ended
fiscal quarter of Silgan.

          "Currency"  shall mean Dollars,  Euros,  Pounds Sterling and any other
freely transferable currency to the extent that such currency is approved by the
Administrative  Agent and the  respective  Incremental  Term Loan Lender  and/or
Incremental  Term Loan Lenders  providing the Incremental  Term Loans subject to
such Other Alternate Currency.

          "DBSI" shall mean Deutsche  Bank  Securities  Inc., in its  individual
capacity,  and  any  successor  entity  thereto  by  merger,   consolidation  or
otherwise.

          "Default" shall mean any event,  act or condition which with notice or
lapse of time, or both, would constitute an Event of Default.

          "Defaulting  Lender"  shall  mean any Lender  with  respect to which a
Lender Default is in effect.

          "Designated  Credit  Parties" shall mean those Credit Parties that are
from time to time party to the Accounts Receivables Facility Documents.

                  "Deutsche Bank" shall mean Deutsche Bank AG New York Branch,
in its individual capacity, and any successor entity thereto by merger,
consolidation or otherwise.

                                     -105-
<PAGE>

          "Dividend"  shall mean,  with respect to any Person,  that such Person
has  declared  or  paid  a  dividend  or  returned  any  equity  capital  to its
stockholders,  partners or members or authorized or made any other distribution,
payment or delivery of property (other than common equity of such Person and, in
the case of Silgan,  other than additional shares of Qualified  Preferred Stock)
or cash to its stockholders,  partners or members as such, or redeemed, retired,
purchased or otherwise acquired, directly or indirectly, for a consideration any
shares  of any  class of its  capital  stock  or any  partnership  interests  or
membership  interest  outstanding on or after the Effective Date (or any options
or  warrants  issued by such Person  with  respect to its capital  stock or such
other  equity  interests),  or set  aside  any  funds  for any of the  foregoing
purposes,  or shall  have  permitted  any of its  Subsidiaries  to  purchase  or
otherwise  acquire  for a  consideration  any shares of any class of the capital
stock or any  partnership  interests  or  membership  interests  of such  Person
outstanding on or after the Effective Date (or any options or warrants issued by
such Person with respect to its capital stock or such other equity interests).

          "Dollar  Equivalent"  shall  mean,  at any time for the  determination
thereof,  with respect to an amount of an Alternate Currency (or another foreign
currency),  the amount of Dollars  which could be purchased  with such amount of
such Alternate  Currency (or such other foreign currency,  as applicable) at the
spot exchange rate  therefor as quoted by the  Administrative  Agent as of 11:00
A.M.  (Local  Time)  on the  date  two  Business  Days  prior to the date of any
determination  thereof  for  purchase  on  such  date  (or,  in the  case of any
determination  pursuant  to  Section  1.16  or  12.21  or  Section  28 of the US
Borrowers/Subsidiaries  Guaranty,  on  the  date  of  determination);  provided,
however, that (x) the Dollar Equivalent of any Primary Alternate Currency Unpaid
Drawing shall be  determined  at the time the Drawing under the related  Primary
Alternate  Currency  Letter  of Credit  was paid or  disbursed  by the  relevant
Issuing  Lender,  (y) following the  occurrence of a Sharing  Event,  the Dollar
Equivalent of any Primary  Alternate  Currency  Unpaid  Drawing or  unreimbursed
payment under a Primary Alternate  Currency Letter of Credit shall be determined
on the  later  of the time the  Drawing  under  the  related  Primary  Alternate
Currency  Letter of Credit was paid or disbursed by relevant  Issuing  Lender or
the date of the  occurrence  of the Sharing  Event,  and (z) for purposes of (i)
determining  compliance with Sections  1.01(d),  1.01(e),  2.01(c),  4.01(a) and
4.02(a)  and  (ii)  calculating  Fees  pursuant  to  Section  3.01,  the  Dollar
Equivalent  of any amounts  denominated  in (or with  respect  to) an  Alternate
Currency  shall be revalued on a monthly  basis  using the spot  exchange  rates
therefor as quoted in the Wall Street Journal (or, if same does not provide such
exchange rates,  on such other basis as is  satisfactory  to the  Administrative
Agent) on the first  Business Day of each  calendar  month,  although if, at any
time during a calendar month, the Aggregate RL Exposure (for the purposes of the
determination  thereof, using the Dollar Equivalent as recalculated based on the
spot exchange  rate  therefor as quoted in the Wall Street  Journal (or, if same
does not provide such exchange  rates, on such other basis as is satisfactory to
the  Administrative  Agent) on the respective date of determination  pursuant to
this exception)  would exceed 85% of the Total Revolving Loan Commitment as then
in effect, then at the discretion of the Administrative  Agent or at the request
of the Required  Lenders,  the Dollar  Equivalent  shall be reset based upon the
spot  exchange  rates on such date as quoted in the Wall Street  Journal (or, if
same  does  not  provide  such  exchange  rates,  on  such  other  basis  as  is
satisfactory to the  Administrative  Agent),  which rates shall remain in effect
until the first  Business Day of the  immediately  succeeding  calendar month or
such earlier date, if any, as the rate is reset pursuant to this sub-clause (z).
Notwithstanding  anything to the contrary  contained in this definition,  at any
time that a Default or an Event of Default then exists, the Administrative Agent
may revalue

                                     -106-
<PAGE>

the Dollar  Equivalent of any amounts  outstanding under the Credit Documents in
an Alternate  Currency in its sole discretion.  The  Administrative  Agent shall
promptly  notify  Silgan and each Issuing  Lender of each  determination  of the
Dollar Equivalent for each outstanding  Alternate Currency Loan and each Primary
Alternate Currency Letter of Credit.

          "Dollar Letter of Credit" shall mean any Letter of Credit  denominated
in Dollars.

          "Dollar Loan" shall mean all Loans denominated in Dollars, which shall
include each A Term Loan,  each B Term Loan, each Swingline Loan and each Dollar
Revolving  Loan, as well as each Primary  Alternate  Currency  Revolving Loan or
Alternate  Currency  Incremental  Term Loan converted into Dollars in accordance
with the provisions of Section 1.16.

          "Dollar  Revolving  Loan" shall mean all Revolving  Loans  incurred in
Dollars.

          "Dollars" and the sign "$" shall each mean freely  transferable lawful
money of the United States.

          "Dollar Unpaid  Drawings"  shall have the meaning  provided in Section
2.05(a).

          "Domestic   Subsidiary"   shall   mean  each   Subsidiary   of  Silgan
incorporated or organized in the United States or any State thereof.

          "Drawing" shall have the meaning provided in Section 2.05(b).

          "EBIT"  shall mean,  for any period,  the  Consolidated  Net Income of
Silgan  and its  Subsidiaries  for such  period,  before  Interest  Expense  and
provision for taxes and (to the extent not already  otherwise  excluded from the
calculation  thereof under this Agreement) without giving effect to any gains or
losses  from sales of assets  (other  than sales of  inventory  in the  ordinary
course of business), or any non-cash adjustments resulting from any equity based
compensation.

          "EBITDA" shall mean, for any period, EBIT for such period, adjusted by
adding  thereto  the  amount  of  all  depreciation  and  all  amortization  and
write-offs of  intangibles  (including  covenants not to compete),  goodwill and
loan fees that were deducted in arriving at EBIT for such period.

          "Effective Date" shall have the meaning provided in Section 12.10.

          "Election to Become a Foreign  Borrower"  shall mean a certificate  in
the form of Exhibit J-2.

          "Election to Become a Revolving  Borrower" shall mean a certificate in
the form of Exhibit J-1.

          "Eligible  Transferee"  shall mean and include a commercial  bank,  an
insurance  company, a finance company,  a financial  institution,  any fund that
invests in loans or any other "accredited  investor" (as defined in Regulation D
of the Securities Act), but excluding Silgan or any of its Subsidiaries.

                                     -107-
<PAGE>

          "EMU Legislation" shall mean the legislative  measures of the European
Council for the  introduction  of,  changeover  to or  operation  of a single or
unified European currency.

          "End Date" shall mean, for any Margin Reduction  Period,  the last day
of such Margin Reduction Period.

          "ERISA"  shall mean the  Employee  Retirement  Income  Security Act of
1974, as amended from time to time, and the regulations  promulgated and rulings
issued thereunder. Section references to ERISA are to ERISA, as in effect at the
date of this Agreement,  and to any subsequent  provisions of ERISA,  amendatory
thereof, supplemental thereto or substituted therefor.

          "ERISA Affiliate" shall mean any person (as defined in Section 3(9) of
ERISA)  (including each trade or business (whether or not  incorporated))  which
together with any Borrower or any  Subsidiary of any Borrower would be deemed to
be  a  "single  employer"  or  a  member  of  the  same  "controlled  group"  of
"contributing sponsors" within the meaning of Section 4001 of ERISA.

          "Euro"  shall mean the single  currency  of the  participating  member
states as described in any EMU Legislation.

          "Euro  Equivalent"  shall  mean,  at any  time  for the  determination
thereof, the amount of Euros which could be purchased with the amount of Dollars
involved in such computation at the spot rate of exchange  therefor as quoted by
the Administrative  Agent as of 11:00 A.M. (Local Time) on the date two Business
Days prior to the date of any  determination  thereof for  purchase on such date
(or, in the case of any determination  pursuant to Section 12.21, on the date of
determination).

          "Euro Rate" shall mean (i) for any Borrowing of Loans  denominated  in
Dollars or in a Primary  Alternate  Currency,  the relevant interest rate, i.e.,
the  Eurodollar  Rate in the  case  of  Dollar  Loans  or the  relevant  Primary
Alternate  Currency LIBOR in the case of Alternate Currency Loans denominated in
a Primary Alternate Currency,  as the case may be, and (ii) for any Borrowing of
Loans denominated in an Other Alternate  Currency,  such rate per annum as shall
be  agreed  upon  by  the  respective   Incremental  Term  Loan  Borrower,   the
Administrative  Agent and the  relevant  Incremental  Term Loan  Lenders and set
forth in the relevant Incremental Term Loan Commitment Agreement.

          "Euro Rate Loan" shall mean each Loan other than a Base Rate Loan.

          "Eurodollar  Loan" shall mean each Dollar Loan (other than a Swingline
Loan)  designated  as a  Eurodollar  Loan  by any  Borrower  at the  time of the
incurrence thereof or conversion thereto by such Borrower.

          "Eurodollar  Rate" shall mean (a) with respect to each Interest Period
for a Eurodollar  Loan,  (i) the rate per annum  determined  on the basis of the
rate for  deposits  in  Dollars  for a  period  equal  to such  Interest  Period
commencing  on the first day of such Interest  Period  appearing on Page 3750 of
the Telerate  screen (or any successor  page) as of 11:00 A.M.,  London time, on
the applicable Interest Determination Date, provided that, to the extent than an
interest

                                     -108-
<PAGE>

rate is not  ascertainable  pursuant to the foregoing  provisions of this clause
(a), the rate above instead shall be the offered  quotation to first-class banks
in the New York  interbank  Eurodollar  market by the  Administrative  Agent for
Dollar  deposits of amounts in  immediately  available  funds  comparable to the
outstanding  principal amount of the Eurodollar Loan of the Administrative Agent
(in its  capacity as a Lender (or, if the  Administrative  Agent is not a Lender
with respect thereto, taking the average principal amount of the Eurodollar Loan
then  being made by the  various  Lenders  pursuant  thereto))  with  maturities
comparable to the Interest Period  applicable to such Eurodollar Loan commencing
two Business Days  thereafter as of 10:00 A.M. (New York time) on the applicable
Interest  Determination  Date, in either case divided (and rounded upward to the
nearest  1/100 of 1%) by (b) a  percentage  equal to 100% minus the then  stated
maximum rate of all reserve  requirements  (including,  without limitation,  any
marginal,  emergency,  supplemental,  special  or  other  reserves  required  by
applicable  law)  applicable to any member bank of the Federal Reserve System in
respect of  Eurocurrency  funding or  liabilities as defined in Regulation D (or
any successor category of liabilities under Regulation D).

          "Euro-zone"  shall mean the region  composed  of the member  states as
described in any EMU Legislation.

          "Event of Default" shall have the meaning provided in Section 9.

          "Excess Cash Flow" shall mean,  for any period,  the  remainder of (a)
the sum of (I)  Adjusted  Consolidated  Net Income for such  period and (II) the
decrease,  if any, in Working Capital from the first day to the last day of such
period, minus, without duplication, (b) the sum of (I) the amount of all Capital
Expenditures made by Silgan and its Subsidiaries on a consolidated  basis during
such period,  other than Capital  Expenditures  to the extent  financed  through
insurance or condemnation  proceeds,  Asset Sale proceeds,  proceeds from a sale
and leaseback transaction,  proceeds utilizing the Net Equity Proceeds Amount or
the Retained Excess Cash Flow Amount or Indebtedness (other than Revolving Loans
or Swingline Loans) during such period,  (II) the aggregate  principal amount of
permanent  payments or prepayments on Indebtedness  for borrowed money of Silgan
and its  Subsidiaries  (other than (A) repayments or prepayments of Intercompany
Loans,  (B) repayments or prepayments  of  Indebtedness  to the extent made with
insurance or condemnation  proceeds,  Asset Sale proceeds,  proceeds from a sale
and leaseback  transaction,  equity  proceeds or proceeds from the incurrence or
issuance  of any  Indebtedness  and  (C)  repayments  of  Loans,  provided  that
repayments  of Loans shall be deducted in  determining  Excess Cash Flow if such
repayments  were required as a result of a Term Loan  Scheduled  Repayment) on a
consolidated  basis during such period,  (III) the increase,  if any, in Working
Capital  from the first day to the last day of such period,  (IV) the  aggregate
amount of costs and expenses incurred by Silgan and its Subsidiaries during such
period in connection with the consolidation and plant  rationalization  of their
operations to the extent such amounts have not reduced Adjusted Consolidated Net
Income for such  period or  constituted  Capital  Expenditures  made during such
period,  (V) the aggregate  amount of Investments  made under Section  8.05(xiv)
during such period  except to the extent  utilizing  proceeds from the Permitted
Additional  Investment  Basket Amount and (VI) the aggregate amount of Dividends
paid  pursuant to Sections  8.03(iii)  and (iv) during such period except to the
extent utilizing proceeds from the Net Equity Proceeds Amount or that portion of
Cumulative Consolidated Net Income earned in a previous period.

                                     -109-
<PAGE>

          "Excess Cash Flow Payment Date" shall mean the date occurring 120 days
after the last day of each fiscal year of Silgan (beginning with its fiscal year
ending on December 31, 2005).

          "Excess  Cash Flow  Payment  Period"  shall mean,  with respect to the
repayment  required on each Excess Cash Payment Date, the immediately  preceding
fiscal year of Silgan.

          "Exchange  Percentage"  shall  mean,  as to each  Lender,  a fraction,
expressed as a decimal,  of which (a) the numerator  shall be the sum of (i) the
aggregate outstanding principal amount of the Loans owed to such Lender and (ii)
the LC Exposure of such Lender,  and (b) the denominator shall be the sum of (i)
the aggregate  outstanding principal amount of the Loans owed to all the Lenders
and (ii) the aggregate LC Exposure of all the Lenders.

          "Existing Credit Agreement" shall mean the Credit Agreement,  dated as
of June 28, 2002, among Silgan, Containers, Plastics, certain other Subsidiaries
of  Silgan,  the  financial  institutions  party  thereto,   Deutsche  Bank,  as
administrative  agent,  Bank  of  America,  N.A.  and  Citicorp  USA,  Inc.,  as
co-syndication  agents,  Morgan Stanley Senior Funding,  Inc. and Fleet National
Bank, as  co-documentation  agents,  DBSI and BAS as joint lead  arrangers,  and
DBSI,  BAS and Salomon  Smith Barney Inc., as joint book  managers,  as amended,
modified or supplemented through the Initial Borrowing Date.

          "Existing  Indebtedness"  shall have the  meaning  provided in Section
8.04(ii).

          "Existing  Letters  of  Credit"  shall have the  meaning  provided  in
Section 2.01(a).

          "Facing Fees" shall have the meaning provided in Section 3.01(c).

          "Federal  Funds  Rate"  shall  mean,  for any  period,  a  fluctuating
interest  rate equal for each day during such period to the weighted  average of
the rates on overnight  Federal Funds  transactions  with members of the Federal
Reserve System arranged by Federal Funds brokers, as published for such day (or,
if such day is not a Business Day, for the next  preceding  Business Day) by the
Federal  Reserve Bank of New York,  or, if such rate is not so published for any
day which is a Business Day, the average of the  quotations for such day on such
transactions  received  by the  Administrative  Agent from three  Federal  Funds
brokers of recognized standing selected by the Administrative Agent.

          "Fees"  shall mean all amounts  payable  pursuant to or referred to in
Section 3.01.

          "Foreign Borrower" shall mean a Foreign Incremental Term Loan Borrower
and/or a Foreign Revolving Borrower, as the context may require.

          "Foreign  Collateral"  shall  mean all  assets  or  properties  of any
Foreign Credit Party covered by any of the Foreign Security Documents, including
all Additional Collateral covered thereby.

          "Foreign  Credit  Party"  shall mean each  Foreign  Borrower  and each
Related Foreign Company Guarantor.

                                     -110-
<PAGE>

          "Foreign  Incremental  Term Loan Borrower" shall mean any Wholly-Owned
Foreign  Subsidiary  of Silgan that becomes an  Incremental  Term Loan  Borrower
pursuant to Section 5.04(b).

          "Foreign  Intercompany Loan Amount" shall mean, at any time, an amount
equal to the aggregate  outstanding  principal amount of Intercompany Loans made
by Silgan  and its  Domestic  Subsidiaries  to Foreign  Subsidiaries  of Silgan,
provided  that for  purposes  of this  definition,  the  principal  amount of an
Intercompany  Loan made to a Foreign  Subsidiary of Silgan shall not be included
to the extent that such principal amount exceeds the amount of all cash and Cash
Equivalents held by such Foreign Subsidiary and its Subsidiaries at such time.

          "Foreign Pension Plan" shall mean any plan, fund  (including,  without
limitation,  any  superannuation  fund) or other similar  program  (other than a
statutorily  required  program)  established  or  maintained  outside the United
States of America by Silgan or any one or more of its Subsidiaries primarily for
the benefit of employees  of Silgan or such  Subsidiaries  residing  outside the
United States of America, which plan, fund or other similar program provides, or
results  in,  retirement  income,  a  deferral  of  income in  contemplation  of
retirement or payments to be made upon termination of employment, and which plan
is not subject to ERISA or the Code.

          "Foreign  Revolving  Borrower"  shall  mean any  Wholly-Owned  Foreign
Subsidiary  of Silgan  that  becomes a  Revolving  Borrower  pursuant to Section
5.04(b).

          "Foreign  Security  Documents"  shall  have the  meaning  provided  in
Section 5.04(b) and, after the execution and deliver thereof, shall include each
Additional Security Document entered into by a Foreign Credit Party.

          "Foreign  Subsidiary" shall mean, as to any Person, each Subsidiary of
such Person which is not a Domestic Subsidiary.

          "Guarantor"  shall mean and include each US Guarantor and each Related
Foreign Company Guarantor.

          "Guaranty"  shall  mean  and  include  the  US  Borrowers/Subsidiaries
Guaranty, each Related Foreign Company Guaranty and each other guaranty that may
be executed and delivered pursuant to Section 7.10.

          "Incremental  Commitment  Agreement"  shall mean any Incremental  Term
Loan  Commitment  Agreement  and/or any  Incremental  Revolving Loan  Commitment
Agreement, as the context may require.

          "Incremental Commitment  Effectiveness  Requirements" shall mean, with
respect  to  any  provision  of  an  Incremental  Term  Loan  Commitment  or  an
Incremental  Revolving Loan  Commitment on a given  Incremental  Loan Commitment
Date, the  satisfaction  of each of the following  conditions on or prior to the
effective  date  of the  respective  Incremental  Commitment  Agreement:  (i) no
Default or Event of Default then exists or would result therefrom and all of the
representations  and  warranties  contained  herein  and  in  the  other  Credit
Documents  are true and correct in all  material  respects at such time  (unless
stated to relate to a specific earlier date, in which case such  representations
and warranties shall be true and correct in all material respects

                                     -111-
<PAGE>

as of such earlier date); (ii) Silgan and its Subsidiaries  shall have delivered
such technical  amendments,  modifications  and/or supplements to the respective
Security Documents as are reasonably  requested by the  Administrative  Agent to
ensure  that  the  additional   Obligations  to  be  incurred  pursuant  to  the
Incremental Term Loan Commitments or Incremental  Revolving Loan Commitments (as
applicable)  are  secured  by, and  entitled to the  benefits  of, the  Security
Documents (to the extent required by the terms of this Agreement);  (iii) Silgan
shall have delivered to the Administrative Agent an opinion or opinions, in form
and substance reasonably  satisfactory to the Administrative Agent, from counsel
to the Credit Parties reasonably  satisfactory to the  Administrative  Agent and
dated the  relevant  Incremental  Loan  Commitment  Date,  covering  such of the
matters set forth in the  opinions of counsel  delivered  to the  Administrative
Agent on the  Initial  Borrowing  Date  pursuant  to  Section  5.01(c) as may be
reasonably  requested  by the  Administrative  Agent,  and  such  other  matters
incident to the transactions  contemplated  thereby as the Administrative  Agent
may  reasonably  request;  (iv) Silgan and the other Credit  Parties  shall have
delivered  to  the  Administrative  Agent  such  other  officers'  certificates,
resolutions  and  evidence of good  standing as the  Administrative  Agent shall
reasonably  request;  (v) to the extent  requested by any Incremental  Term Loan
Lenders or any Incremental  Revolving  Lenders,  as the case may be, Incremental
Term  Notes or  Revolving  Notes (as  applicable)  will be issued,  at  Silgan's
expense,  to such Lenders,  to be in conformity with the requirements of Section
1.05  (with  appropriate  modifications)  to the extent  needed to  reflect  the
Incremental Term Loan Commitments or Incremental  Revolving Loan Commitments and
outstanding  Incremental  Term Loans or Revolving Loans made by such Incremental
Term Loan Lenders or Incremental  Revolving Lenders, as the case may be; (vi) if
the respective  Borrower is a  Wholly-Owned  Foreign  Subsidiary of Silgan,  the
provisions  of Section  5.04 shall have been  satisfied  to the extent  provided
therein; (vii) calculations are made by Silgan demonstrating compliance with the
covenants  contained in Sections 8.08 and 8.09 for the  Calculation  Period most
recently ended prior to such date of effectiveness,  on a Pro Forma Basis, as if
the relevant  Incremental  Term Loans or Revolving  Loans to be made pursuant to
such Incremental Term Loan Commitments or Incremental Revolving Loan Commitments
(in each case,  assuming the full  utilization  thereof)  had been  incurred and
after giving effect to the  application  of the proceeds  therefrom  (including,
without limitation,  any Permitted  Acquisition which is to be financed with the
proceeds  of such  Loans (as well as other  Permitted  Acquisitions  theretofore
consummated after the first day of such Calculation  Period) had occurred on the
first  day  of  such  Calculation  Period);  and  (viii)  on or  prior  to  each
Incremental  Loan  Commitment  Date (in  addition to the  applicable  conditions
precedent  set forth in Section  5.02 to the extent  required to be satisfied on
such  date),  the  Administrative  Agent  shall  have  received  from the  chief
financial  officer or treasurer of Silgan a  certificate  (x)  certifying  as to
which provisions of the 6-3/4% Senior  Subordinated  Debenture Indenture and any
Additional  Permitted  Indebtedness  Document that the respective  incurrence of
Incremental  Term  Loans  or  Revolving  Loans  to  be  made  pursuant  to  such
Incremental Term Loan Commitments or Incremental  Revolving Loan Commitments (in
each case,  assuming the full  utilization  thereof)  will be justified and that
such   incurrence  will  not  violate  such   provisions,   and  (y)  containing
calculations  (in reasonable  detail)  demonstrating  compliance  with preceding
clause (vii) and sub-clause (viii)(x).

          "Incremental  Commitment Termination Date" shall mean (x) with respect
to any Tranche of  Incremental  Term Loans,  the last date by which  Incremental
Term Loans under such Tranche may be incurred under this  Agreement,  which date
shall be set forth in the respective  Incremental Term Loan Commitment Agreement
but may be no later than June 30, 2011, and (y)

                                     -112-
<PAGE>

with respect to Incremental Revolving Loan Commitments, the date which is twelve
months prior to the Revolving Loan Maturity Date.

          "Incremental  Loan Commitment  Date" shall mean any  Incremental  Term
Loan Borrowing Date or any Incremental Revolving Commitment Date, as the context
may require.

          "Incremental Loan Commitment  Request  Requirements"  shall mean, with
respect to any request for an Incremental  Term Loan Commitment made pursuant to
Section 1.14 or Incremental  Revolving Loan  Commitment made pursuant to Section
1.15, the  satisfaction of each of the following  conditions on the date of such
request:  (i) no  Default  or Event  of  Default  then  exists  or would  result
therefrom and all of the representations and warranties  contained herein and in
the other Credit Documents are true and correct in all material respects at such
time (unless  stated to relate to a specific  earlier  date,  in which case such
representations  and  warranties  shall  be true  and  correct  in all  material
respects as of such earlier date);  (ii) Silgan and its Subsidiaries  will be in
compliance with Sections 8.08 and 8.09 for the Calculation  Period most recently
ended prior to the date of the request for Incremental  Term Loan Commitments or
Incremental  Revolving  Loan  Commitments,  as the case may be,  on a Pro  Forma
Basis,  as if the relevant  Loans to be made pursuant to such  Incremental  Term
Loan  Commitments  or  Incremental  Revolving  Loan  Commitments  (in each case,
assuming the full utilization thereof) had been incurred and after giving effect
to the application of the proceeds therefrom (including, without limitation, any
Permitted  Acquisition  which is to be financed  with the proceeds of such Loans
(as well as other Permitted Acquisitions theretofore consummated after the first
day of  such  Calculation  Period)  had  occurred  on  the  first  day  of  such
Calculation  Period);  and (iii) the respective  incurrence of Incremental  Term
Loans or  incurrence  of Revolving  Loans  (assuming  full  utilization  of such
Incremental  Revolving Loan Commitments) may be incurred in accordance with, and
will not violate the  provisions  of, the 6-3/4% Senior  Subordinated  Debenture
Indenture and any Additional Permitted Indebtedness Document.

          "Incremental Revolving Loan Commitment Date" shall mean each date upon
which an Incremental  Revolving Loan Commitment  under an Incremental  Revolving
Loan Commitment Agreement becomes effective as provided in Section 1.15(b).

          "Incremental  Revolving  Loan  Commitment  Agreement"  shall  mean  an
Incremental  Revolving Loan Commitment  Agreement  substantially  in the form of
Exhibit M (appropriately completed) executed in accordance with Section 1.15.

          "Incremental  Revolving Loan Commitments"  shall mean, for any Lender,
any  commitment  by such  Lender  to make  Revolving  Loans as agreed to by such
Lender in the Incremental Revolving Loan Commitment Agreement delivered pursuant
to Section 1.15; it being understood,  however,  that on each date upon which an
Incremental  Revolving  Loan  Commitment of any Lender becomes  effective,  such
Incremental  Revolving  Loan  Commitment  of such Lender  shall be added to (and
thereafter  become a part of) the Revolving  Loan  Commitment of such Lender for
all purposes of this Agreement as contemplated by Section 1.15.

          "Incremental  Revolving  Lender"  shall have the  meaning  provided in
Section 1.15(b).

                                     -113-
<PAGE>

          "Incremental  Term Loan"  shall have the  meaning  provided in Section
1.01(c).

          "Incremental  Term Loan Borrower"  shall mean Silgan (if Silgan incurs
Incremental Term Loans) and each Foreign Incremental Term Loan Borrower.

          "Incremental  Term Loan  Borrowing  Date" shall mean,  with respect to
each Tranche of  Incremental  Term Loans,  each date on which  Incremental  Term
Loans of such Tranche are incurred  pursuant to Section 1.01(c) and as otherwise
permitted by Section 1.14.

          "Incremental  Term Loan Commitment"  shall mean, for each Lender,  any
commitment to make  Incremental  Term Loans provided by such Lender  pursuant to
Section  1.14,  in such  amount as agreed  to by such  Lender in the  respective
Incremental  Term  Loan  Commitment  Agreement  and as set forth  opposite  such
Lender's  name in  Schedule I (as  modified in  accordance  with  Section  1.14)
directly below the column entitled  "Incremental Term Loan  Commitment",  as the
same may be (x)  reduced  from time to time or  terminated  pursuant to Sections
3.02,  3.03,  4.02  and/or 9 or (y)  adjusted  from  time to time as a result of
assignments to and from such Lender pursuant to Sections 1.13 and/or 12.04(b).

          "Incremental   Term  Loan  Commitment   Agreement"   shall  mean  each
Incremental   Term  Loan   Commitment   Agreement  in  the  form  of  Exhibit  L
(appropriately completed) executed in accordance with Section 1.14.

          "Incremental  Term Loan  Lender"  shall have the  meaning  provided in
Section 1.14(b).

          "Incremental  Term Loan Maturity  Date" shall mean, for any Tranche of
Incremental  Term Loans,  the final  maturity date set forth for such Tranche of
Incremental  Term  Loans in the  respective  Incremental  Term  Loan  Commitment
Agreement  relating  thereto,  provided  that the  final  maturity  date for all
Incremental Term Loans of a given Tranche shall be the same date.

          "Incremental  Term Loan  Scheduled  Repayment"  shall have the meaning
provided in Section 4.02(d).

          "Incremental  Term Note"  shall have the  meaning  provided in Section
1.05(a).

          "Indebtedness" shall mean, as to any Person, without duplication,  (i)
all  indebtedness  (including  principal,  interest,  fees and  charges) of such
Person for  borrowed  money or for the  deferred  purchase  price of property or
services, (ii) indebtedness under all bankers' acceptances,  and the face amount
of all  letters of credit  issued for the  account of such Person and all drafts
drawn  thereunder,  (iii) all  liabilities  secured by any Lien on any  property
owned by such Person,  whether or not such liabilities have been assumed by such
Person  (provided that, if the Person has not assumed or otherwise become liable
in respect of such  indebtedness,  such indebtedness shall be deemed to be in an
amount  equal to the lesser of (x) the amount of such  indebtedness  and (y) the
fair market  value (as  determined  in good faith by Silgan) of the  property to
which such Lien relates),  (iv) the aggregate  amount required to be capitalized
under leases under which such Person is the lessee,  (v) all  obligations  under
Interest Rate Protection Agreements and (vi) all Contingent  Obligations of such
Person. Notwithstanding the foregoing,

                                     -114-
<PAGE>

Indebtedness (x) shall not include trade payables and accrued expenses  incurred
by any Person in accordance with customary  practices and in the ordinary course
of  business  of such Person and (y) shall  include  the  obligations  under the
Accounts Receivable Facility to the extent that such obligations are required to
be  reflected  as a liability  on the  consolidated  balance  sheet of Silgan in
accordance with accounting principles generally accepted in the United States.

          "Individual  RL Exposure"  shall mean,  at any time for any  Revolving
Lender,  the sum of (I) the aggregate  principal  amount of all Revolving  Loans
made by such  Revolving  Lender and  outstanding at such time (for this purpose,
using the Dollar Equivalent of each Primary Alternate Currency Revolving Loan of
such  Revolving  Lender  then  outstanding),  (II) such  Revolving  Lender's  RL
Percentage  of all  Letter of Credit  Outstandings  at such time and (III)  such
Revolving  Lender's  RL  Percentage  of the  aggregate  principal  amount of all
Swingline Loans outstanding at such time.

          "Initial Borrowing Date" shall mean the date occurring on or after the
Effective Date on which the initial Borrowing of Loans hereunder occurs.

          "Intercompany  Loan"  shall  mean  any  intercompany  loan or  advance
between  Silgan and any of its  Subsidiaries  or  between  any  Subsidiaries  of
Silgan,  which in the case of an Intercompany Loan made by a Credit Party, shall
be evidenced by an Intercompany Note.

          "Intercompany Note" shall mean a promissory note in form and substance
reasonably  satisfactory to the Administrative  Agent evidencing an Intercompany
Loan.

          "Interest Coverage Ratio" shall mean, for any period, the ratio of (x)
EBITDA for such period to (y) Interest Expense for such period.

          "Interest Determination Date" shall mean the second Business Day prior
to the commencement of any Interest Period relating to a Euro Rate Loan.

          "Interest  Expense"  shall mean,  for any  period,  the sum of (i) the
total  consolidated  interest  expense of Silgan and its  Subsidiaries  for such
period (without giving effect to any  amortization or write-off of up-front fees
and expenses in connection with any debt issuance) net of any total consolidated
interest  income of Silgan  and its  Subsidiaries  for such  period and (ii) the
product of (A) the aggregate  amount of all cash  Dividend  payments made on any
class of  Qualified  Preferred  Stock prior to the fifth  anniversary  after the
issuance of such Qualified Preferred Stock and (B) a fraction,  the numerator of
which is one and the  denominator  of which is one minus the  current  effective
consolidated  federal,  state,  local  and  foreign  income  tax rate of  Silgan
expressed as a decimal.

          "Interest Period" shall have the meaning provided in Section 1.09.

          "Interest Rate Protection  Agreement" shall mean any interest rate cap
agreement,  interest  rate  swap  agreement,  interest  rate  collar  agreement,
interest rate hedging agreement or other similar agreement or arrangement.

                                     -115-
<PAGE>

          "Investment  Grade  Rating"  shall mean  Silgan  obtaining  both (i) a
corporate  rating  from S&P equal to, or  greater  than,  BBB-  (with at least a
stable  outlook)  and (ii) a senior  implied  rating from  Moody's  equal to, or
greater than, Baa3 (with at least a stable outlook).

          "Investments" shall have the meaning provided in Section 8.05.

          "Issuing Country" shall have the meaning provided in Section 12.22.

          "Issuing Lender" shall mean each of Deutsche Bank and any other Lender
reasonably  acceptable  to the  Administrative  Agent  which,  at the request of
Silgan,  agrees in such  Lender's  sole  discretion  to issue  Letters of Credit
hereunder.  Any Issuing Lender may, in its  discretion,  arrange for one or more
Letters of Credit to be issued by one or more  Affiliates of such Issuing Lender
(in which case each such  Affiliate  shall be the Issuing Lender of such Letters
of Credit).  To the extent that any Affiliate of the Administrative  Agent is an
Issuing  Lender  hereunder,  such  Affiliate  also shall  cease to be an Issuing
Lender  hereunder  as  provided  in  Section  11.09  to the same  extent  as the
Administrative Agent.

          "Joint Lead  Arrangers"  shall mean BAS and DBSI, in their  respective
capacities  as Joint  Lead  Arrangers  and Joint  Book  Managers  for the credit
facilities provided for hereunder.

          "Joint  Venture"  shall mean any Person  (other than a  Subsidiary  of
Silgan) in which Silgan  (directly  or through one or more of its  Subsidiaries)
owns 50% or less of the equity interests.

          "Judgment  Currency"  shall  have  the  meaning  provided  in  Section
12.21(a).

          "Judgment Currency Conversion Date" shall have the meaning provided in
Section 12.21(a).

          "LC Exposure"  shall mean,  at any time,  the sum of (i) the aggregate
Stated  Amount of all  outstanding  Letters  of Credit at such time and (ii) the
aggregate  amount of all Unpaid Drawings that have not yet been reimbursed by or
on behalf of the Revolving Borrowers at such time.

          "LC  Reserve  Account"  shall  have the  meaning  provided  in Section
1.16(h).

          "Leaseholds"  of any Person  shall  mean all of the  right,  title and
interest  of such  Person  as  lessee or  licensee  in,  to and under  leases or
licenses of land, improvements and/or fixtures.

          "Lender"  shall have the meaning  provided in the first  paragraph  of
this Agreement.

          "Lender  Default"  shall  mean  (i) the  refusal  (which  has not been
retracted) of a Lender to make available its portion of any Borrowing (including
any  Mandatory  Borrowing)  or to fund its portion of any  unreimbursed  payment
under Section  2.04(c) or (ii) a Lender having  notified in writing any Borrower
and/or the Administrative  Agent that such Lender does not intend to comply with
its obligations under Section 1.01(a), (b), (c), (d) or (f) or Section 2.

                                     -116-
<PAGE>

          "Letter of Credit" shall have the meaning provided in Section 2.01(a).

          "Letter of Credit  Fees"  shall have the  meaning  provided in Section
3.01(b).

          "Letter of Credit  Outstandings"  shall mean, at any time,  the sum of
(i) the aggregate  Stated Amount of all  outstanding  Letters of Credit and (ii)
the aggregate amount of all Unpaid Drawings (taking the Dollar Equivalent of any
amounts  owed in  Currencies  other than  Dollars)  in respect of all Letters of
Credit at such time.

          "Letter of Credit Request" shall have the meaning  provided in Section
2.03(a).

          "Lien" shall mean any  mortgage,  pledge,  hypothecation,  assignment,
deposit  arrangement,   encumbrance,  lien  (statutory  or  other),  preference,
priority  or  other  security   agreement  of  any  kind  or  nature  whatsoever
(including,  without  limitation,  any conditional sale or other title retention
agreement  and any  lease  having  substantially  the same  effect as any of the
foregoing).

          "Loan" shall mean each A Term Loan, each B Term Loan, each Incremental
Term Loan, each Revolving Loan and each Swingline Loan.

          "Local Time" shall mean the local time in effect at (x) the applicable
Notice   Office   in  the   case   of   Notices   of   Borrowing,   Notices   of
Conversions/Continuances  and Letter of Credit  Requests and (y) the  applicable
Payment  Office in the case of all payments and  disbursements  of Loans,  other
Obligations or Letters of Credit.

          "Majority  Lenders"  of any  Tranche  shall mean those  Non-Defaulting
Lenders which would  constitute the Required  Lenders under,  and as defined in,
this Agreement if all  outstanding  Obligations of the other Tranches under this
Agreement  were repaid in full and all  Commitments  with  respect  thereto were
terminated.

          "Mandatory  Borrowing"  shall  have the  meaning  provided  in Section
1.01(f).

          "Manufacturing" shall have the meaning provided in the first paragraph
of this Agreement.

          "Margin  Reduction Period" shall mean each period which shall commence
on a date on which the financial  statements  are delivered  pursuant to Section
7.01(a)  (other than in respect of the fourth fiscal  quarter of any fiscal year
of Silgan) or Section  7.01(b),  as the case may be, and which  shall end on the
earlier  of (i) the date of actual  delivery  of the next  financial  statements
pursuant to Section  7.01(a) (other than in respect of the fourth fiscal quarter
of any fiscal year of Silgan) or Section  7.01(b),  as the case may be, and (ii)
the  latest  date on which the next  financial  statements  are  required  to be
delivered  pursuant  to  Section  7.01(a)  (other  than in respect of the fourth
fiscal quarter of any fiscal year of Silgan) or Section 7.01(b), as the case may
be; provided that the first Margin  Reduction  Period shall commence on the date
of  delivery of the  financial  statements  in respect of the fiscal  quarter of
Silgan ending on September 30, 2005.

                                     -117-
<PAGE>

          "Margin Stock" shall have the meaning  provided in Regulation U of the
Board of Governors of the Federal Reserve System.

          "Material  Adverse Effect" shall mean a material adverse effect on the
business,  operations,  property, assets, liabilities or condition (financial or
otherwise) of Silgan and its Subsidiaries taken as a whole.

          "Maturity  Date" shall mean the A Term Loan Maturity  Date, the B Term
Loan Maturity Date, each Incremental Term Loan Maturity Date, the Revolving Loan
Maturity Date or the Swingline Expiry Date, as the case may be.

          "Maximum Swingline Amount" shall mean $30,000,000.

          "Minimum  Borrowing  Amount"  shall  mean (i) for Term  Loans that are
Dollar Loans,  $5,000,000,  (ii) for  Incremental  Term Loans  denominated in an
Alternate Currency, an amount in such Alternate Currency to be determined by the
Administrative  Agent and the  respective  Incremental  Term Loan Lenders as set
forth in the relevant  Incremental  Term Loan  Commitment  Agreement,  (iii) for
Revolving Loans,  $2,500,000 (using the Dollar Equivalent thereof in the case of
Primary  Alternate  Currency  Revolving  Loans)  (except  that,  in the  case of
Revolving  Loans  made to CanCo  that are  maintained  as Base Rate  Loans,  the
Minimum  Borrowing  Amount in respect  thereof shall be $1,000,000) and (iv) for
Swingline Loans, $250,000.

          "Moody's" shall mean Moody's Investors Services, Inc.

          "NAIC" shall mean the National Association of Insurance Commissioners.

          "Net Debt  Proceeds"  shall mean,  with respect to any  incurrence  of
Indebtedness  for  borrowed  money,  the  cash  proceeds  (net  of  underwriting
discounts and  commissions  and other  reasonable  costs  associated  therewith)
received  by the  respective  Person  from  the  respective  incurrence  of such
Indebtedness for borrowed money.

          "Net  Equity  Proceeds"  shall  mean,  with  respect  to each  sale or
issuance  by Silgan of its  equity  (other  than any sales or  issuances  to any
Subsidiary or Unrestricted  Subsidiary of Silgan), the cash proceeds received by
Silgan  therefrom  (net of  underwriting  discounts  and  commissions  and other
reasonable costs associated therewith).

          "Net Equity Proceeds  Amount" shall mean, at any time, an amount equal
to the Net Equity Proceeds  received by Silgan after the Initial Borrowing Date,
with the Net Equity Proceeds Amount to be immediately  reduced by (i) the amount
of any Permitted Debt Repurchases made with Net Equity Proceeds, (ii) the amount
of any  Capital  Expenditures  or  Permitted  Acquisitions  made with Net Equity
Proceeds, (iii) the amount of any Investments made pursuant to Section 8.05(xiv)
or guarantees  entered into pursuant to Section 8.04(xiii) in each case with Net
Equity  Proceeds and (iv) the amount of any  Dividends  paid or made pursuant to
Sections 8.03(iii) and (iv) with Net Equity Proceeds.

          "Net  Insurance  Proceeds"  shall mean,  with  respect to any Recovery
Event, the cash proceeds received by the respective Person therefrom (net of (i)
reasonable costs and taxes

                                     -118-
<PAGE>

associated  therewith,  (ii) in the case of insurance or  condemnation  proceeds
received by Silgan or any of its Foreign  Subsidiaries  solely in respect of the
assets  or  property  of  Canadian  Holdco  or any of its  Foreign  Subsidiaries
organized  under the laws of  Canada  (or any  province  thereof),  any  amounts
required to be applied under the Canadian  Credit  Facility and (iii) the amount
of such  insurance  or  condemnation  proceeds  required to be used to repay any
Indebtedness  (other than  Indebtedness  secured  under the Security  Documents)
which is secured by the respective assets subject to such Recovery Event).

          "Net  Sale  Proceeds"  shall  mean,  for any  Asset  Sale or sale  and
leaseback  transaction,  the gross cash proceeds (including any cash received by
way of deferred payment pursuant to a promissory note,  receivable or otherwise,
but  only as and  when  received)  received  from  such  Asset  Sale or sale and
leaseback  transaction  net of (i) the  reasonable  costs incurred in connection
therewith,  (ii) the amount of such gross cash  proceeds  required to be used to
repay any  Indebtedness  (other than  Indebtedness  secured  under the  Security
Documents)  which is secured by the respective  assets which were sold and (iii)
the  estimated  marginal  increase  in taxes  which will be payable by  Silgan's
consolidated  group with  respect  to the year in which sale  occurs as a result
thereof.

          "Non-Defaulting  Lender" shall mean and include each Lender other than
a Defaulting Lender.

          "Note" shall mean each A Term Note, each B Term Note, each Incremental
Term Note, each Revolving Note and each Swingline Note.

          "Notice of  Borrowing"  shall  have the  meaning  provided  in Section
1.03(a).

          "Notice of Conversion/Continuation" shall have the meaning provided in
Section 1.06.

          "Notice  Office"  shall mean (i)  except as  provided  in clause  (ii)
below, the office of the Administrative Agent located at 90 Hudson Street, Fifth
Floor,  Jersey  City,  NJ  07302,  or  such  other  office  or  offices  as  the
Administrative  Agent may  designate in writing to the Borrowers and the Lenders
from time to time, and (ii) in the case of (x) Incremental Term Loans of a given
Tranche  to a  Foreign  Incremental  Term  Loan  Borrower,  the  office  of  the
Administrative  Agent  designated  as the "Notice  Office"  for such  Tranche of
Incremental  Term  Loans in the  respective  Incremental  Term  Loan  Commitment
Agreement or (y) a Foreign Revolving Borrower,  the office of the Administrative
Agent  designated as the "Notice Office" at the time such  Wholly-Owned  Foreign
Subsidiary  of Silgan  becomes a Foreign  Revolving  Borrower  hereunder  (which
office,  in the case of  preceding  sub-clauses  (x) and (y), may be the same as
that in preceding clause (i), although if such office is not the same, a copy of
the relevant notice also shall be delivered to the  Administrative  Agent at the
Notice  Office  referred to in preceding  clause  (i)),  or such other office or
offices as the  Administrative  Agent may  designate in writing to the Borrowers
and the Lenders from time to time.

          "Obligation  Currency"  shall  have the  meaning  provided  in Section
12.21(a).

                                     -119-
<PAGE>

          "Obligations"   shall  mean  all  amounts  owing  to  any  Agent,  the
Collateral  Agent,  the  Swingline  Lender,  any  Lender or any  Issuing  Lender
pursuant to the terms of this Agreement or any other Credit Document.

          "Other Alternate Currency" shall mean an Alternate Currency other than
a Primary Alternate Currency.

          "Other Hedging  Agreements" shall mean any foreign exchange contracts,
currency swap agreements or other similar agreements or arrangements designed to
protect against fluctuations in currency values.

          "Participant" shall have the meaning provided in Section 2.04(a).

          "Patriot Act" shall have the meaning provided in Section 12.19.

          "Payment  Office"  shall mean (i) except as  provided  in clause  (ii)
below, the office of the Administrative Agent located at 90 Hudson Street, Fifth
Floor,  Jersey City, NJ 07302, or such other office as the Administrative  Agent
may designate in writing to the Borrowers and the Lenders from time to time, and
(ii) in the case of (x)  Incremental  Term Loans of a given Tranche to a Foreign
Incremental  Term  Loan  Borrower,   the  office  of  the  Administrative  Agent
designated as the "Payment Office" for such Tranche of Incremental Term Loans in
the  respective  Incremental  Term Loan  Commitment  Agreement  or (y) a Foreign
Revolving  Borrower,  the office of the  Administrative  Agent designated as the
"Payment  Office" at the time such  Wholly-Owned  Foreign  Subsidiary  of Silgan
becomes a Foreign  Revolving  Borrower  hereunder (which office,  in the case of
preceding  sub-clauses (x) and (y), may be the same as that in preceding  clause
(i), although if such office is not the same, a copy of the relevant notice also
shall be delivered to the Administrative Agent at the Payment Office referred to
in preceding clause (i)), or such other office or offices as the  Administrative
Agent may  designate  in writing to the  Borrowers  and the Lenders from time to
time.

          "PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Section 4002 of ERISA, or any successor thereto.

          "Permitted  Acquisition"  shall have the  meaning  provided in Section
8.02(x).

          "Permitted  Additional  Investment  Basket  Amount" shall mean, at any
time, an amount equal to the sum of (I) the Net Equity  Proceeds  Amount at such
time and (II) the Retained Excess Cash Flow Amount at such time.

          "Permitted  Debt  Repurchases"  shall mean one or more open  market or
privately negotiated  transactions or voluntary  Refinancings  pursuant to which
Silgan  Refinances   outstanding  6-3/4%  Senior   Subordinated   Debentures  or
Additional  Permitted  Indebtedness  so  long as (i) at the  time  of each  such
Refinancing,  no  Default  or Event  of  Default  then  exists  or would  result
therefrom,  (ii) except as provided in the immediately  succeeding sentence,  at
the time of each such  Refinancing and immediately  after giving effect thereto,
the Total  Leverage  Ratio on a Pro Forma  Basis for the Test  Period  then most
recently ended for which financial statements have been delivered to the Lenders
under this  Agreement  is less than  3.50:1.00,  (iii) except as provided in the
immediately succeeding sentence, within five Business Days prior to

                                     -120-
<PAGE>

the  consummation  of  any  such  Refinancing,   Silgan  shall  deliver  to  the
Administrative  Agent a certificate of its chief financial  officer or treasurer
setting forth (in reasonable detail) the calculation of the Total Leverage Ratio
on a Pro Forma  Basis for the Test  Period  then most  recently  ended for which
financial  statements  have been delivered to the Lenders under this  Agreement,
and such  calculation  shall  show  that the Total  Leverage  Ratio is less than
3.50:1.00,  (iv) except as provided in the immediately  succeeding sentence,  at
the time of each such  Refinancing and immediately  after giving effect thereto,
the Total Unutilized  Revolving Loan Commitment shall be at least  $100,000,000,
and  (v)  immediately   following  any  such  Refinancing,   the  6-3/4%  Senior
Subordinated  Debentures or the Additional  Permitted  Indebtedess so Refinanced
are cancelled by Silgan.  Notwithstanding the foregoing, clauses (ii), (iii) and
(iv) above in this  definition  shall not apply to any Refinancing of Additional
Permitted  Indebtedness  so long  as the  only  proceeds  used  to  effect  such
Refinancing are from the incurrence of Additional Permitted Indebtedness.

          "Permitted Liens" shall have the meaning provided in Section 8.01.

          "Permitted  Subordinated  Indebtedness"  shall mean the 6-3/4%  Senior
Subordinated Debentures and any Additional Permitted Subordinated Indebtedness.

          "Person" shall mean any individual,  partnership, joint venture, firm,
corporation,  limited liability company, association,  trust or other enterprise
or any  government  or  political  subdivision  or  any  agency,  department  or
instrumentality thereof.

          "Plan"  shall  mean any  multiemployer  plan (as  defined  in  Section
4001(a)(3)  of  ERISA)  or any  single-employer  plan  (as  defined  in  Section
4001(a)(15)  of ERISA),  subject to Title IV of ERISA,  which is  maintained  or
contributed to, or at any time during the five calendar years preceding the date
of  this  Agreement  was  maintained  or  contributed  to by any  Borrower,  any
Subsidiary of any Borrower or any ERISA Affiliate.

          "Plastics"  shall have the meaning  provided in the first paragraph of
this Agreement.

          "Pounds Sterling" shall mean freely  transferable  lawful money of the
United Kingdom.

          "Pounds  Sterling   Equivalent"  shall  mean,  at  any  time  for  the
determination  thereof,  the amount of Pounds  Sterling which could be purchased
with the amount of Dollars  involved in such  computation  at the spot  exchange
rate  therefor  as quoted by the  Administrative  Agent as of 11:00 A.M.  (Local
Time) on the  date  two  Business  Days  prior to the date of any  determination
thereof for purchase on such date (or, in the case of any determination pursuant
to Section 12.21, on the date of determination).

          "Primary  Alternate  Currency"  shall  mean each of Euros  and  Pounds
Sterling.

          "Primary Alternate Currency Letter of Credit" shall mean any Letter of
Credit denominated in a Primary Alternate Currency.

                                     -121-
<PAGE>

          "Primary Alternate Currency Letter of Credit  Outstandings" shall mean
all  Letter of Credit  Outstandings  which do not  constitute  Dollar  Letter of
Credit Outstandings.

          "Primary  Alternate  Currency  LIBOR" shall mean, with respect to each
Interest  Period  applicable to any Alternate  Currency  Loan  denominated  in a
Primary Alternate Currency,  the British Bankers Association Interest Settlement
Rate  that  appears  on page  3750 (or other  appropriate  page if the  relevant
Primary  Alternate  Currency  does not  appear  on such  page) of the Dow  Jones
Telerate  Screen (or any  successor  page) for deposits in the relevant  Primary
Alternate  Currency with  maturities  comparable  to such Interest  Period as of
11:00 A.M.  (London  time) on the date which is two  Business  Days prior to the
commencement of such Interest Period or, if such rate does not appear on the Dow
Jones Telerate Screen (or any successor page),  the offered  quotations to prime
banks in the London interbank market by the Administrative Agent for deposits in
the relevant Primary Alternate  Currency of amounts in same day funds comparable
to the  outstanding  principal  amount  of such  Alternate  Currency  Loan  with
maturities  comparable  to such  Interest  Period  determined  as of 11:00  A.M.
(London time) on the date which is two Business  Days prior to the  commencement
of such Interest Period; provided that in the event the Administrative Agent has
made any  determination  pursuant to Section  1.10(a)(i) in respect of Alternate
Currency  Loans  denominated  in  such  Primary  Alternate  Currency,  or in the
circumstances  described  in clause (i) to the  proviso  to  Section  1.10(b) in
respect of  Alternate  Currency  Loans  denominated  in such  Primary  Alternate
Currency,   Primary  Alternate  Currency  LIBOR  determined   pursuant  to  this
definition with respect to such Primary Alternate  Currency shall instead be the
rate determined by the Administrative  Agent as the all-in-cost of funds for the
Administrative  Agent to fund the respective Alternate Currency Loan denominated
in such Primary  Alternate  Currency with maturities  comparable to the Interest
Period applicable thereto.

          "Primary  Alternate  Currency  Sublimit" shall mean an amount equal to
the lesser of (i)  $150,000,000  and (ii) the amount of the Total Revolving Loan
Commitment as then in effect.

          "Primary  Alternate Currency Revolving Loan" shall mean each Revolving
Loan denominated in a Primary Alternate Currency.

          "Primary  Alternate  Currency  Unpaid  Drawing" shall have the meaning
provided in Section 2.05(a).

          "Prime Lending Rate" shall mean the rate which Deutsche Bank announces
from time to time as its prime  lending  rate,  the Prime Lending Rate to change
when and as such  prime  lending  rate  changes.  The  Prime  Lending  Rate is a
reference  rate and does not  necessarily  represent  the  lowest  or best  rate
actually  charged to any customer.  Deutsche Bank may make  commercial  loans or
other loans at rates of interest at, above or below the Prime Lending Rate.

          "Pro Forma Basis" shall mean, in connection  with any  calculation  of
compliance  with any  financial  covenant  or  financial  term  required by this
Agreement to be determined on a Pro Forma Basis,  the calculation  thereof after
giving effect on a pro forma basis to (w) the assumption, incurrence or issuance
of any Indebtedness or capital stock (other than revolving Indebtedness,  except
to the extent same is  incurred  to  refinance  other  outstanding  Indebtedness
(including any Indebtedness assumed as part of any Permitted Acquisition and any
Permitted

                                     -122-
<PAGE>

Subordinated  Indebtedness or Additional Permitted Senior Indebtedness  pursuant
to a Refinancing),  or to finance  Permitted  Acquisitions  or Investments  made
pursuant  to  Section  8.05(xiv))  during  (and,  in  the  case  of  determining
compliance  with  Section  8.02(x),   after  the  first  day  of)  the  relevant
Calculation  Period as if such  Indebtedness  had been incurred or capital stock
issued  (and the  proceeds  thereof  applied)  on the first day of the  relevant
Calculation  Period,  it being understood that to the extent any Indebtedness is
incurred  to  purchase  any  working  capital  in  connection  with a  Permitted
Acquisition,  such amount shall be based on the average  working  capital of the
Person or assets so acquired for the four quarter period  immediately  preceding
the date of such  acquisition,  (x) the permanent  repayment of any Indebtedness
(other  than  revolving  Indebtedness  (except  to the extent  accompanied  by a
corresponding  permanent  commitment  reduction)  and any  Term  Loan  Scheduled
Repayment or scheduled principal  amortization payment under the Canadian Credit
Facility)  during  (and,  in the case of  determining  compliance  with  Section
8.02(x),  after  the first day of) the  relevant  Calculation  Period as if such
Indebtedness  had been  retired  or  redeemed  on the first day of the  relevant
Calculation Period, (y) the consummation of any Specified Asset Sale or sale and
leaseback  transaction  during and, in the case of determining  compliance  with
Section 8.02(x),  after the first day of) the relevant  Calculation Period as if
such Specified Asset Sale or sale and leaseback transaction had been consummated
on the  first  day of the  relevant  Calculation  Period  and (z) all  Permitted
Acquisitions,  consummated  during (and, in the case of  determining  compliance
with Section 8.02(x),  after the first day of) the relevant  Calculation  Period
and, in the case of determining  compliance with Section 8.02(x), on or prior to
the date of the respective Permitted  Acquisition then being effected,  with the
following rules to apply in connection with the foregoing:

          (i) all  Indebtedness  and  capital  stock (x) (other  than  revolving
Indebtedness,  except  to  the  extent  same  is  incurred  to  refinance  other
outstanding  Indebtedness  (including  any  Indebtedness  assumed as part of any
Permitted Acquisition and any Permitted Subordinated  Indebtedness or Additional
Permitted Senior Indebtedness pursuant to a Refinancing) or to finance Permitted
Acquisitions  or  Investments  made  pursuant  to (Section  8.05(xiv))  assumed,
incurred or issued  during  (and,  in the case of  determining  compliance  with
Section  8.02(x),  after  the  first  day of) the  relevant  Calculation  Period
(whether  incurred  to finance a Permitted  Acquisition  or an  Investment  made
pursuant to Section 8.05(xiv),  to refinance Indebtedness or otherwise) shall be
deemed to have been incurred or issued (and the proceeds thereof applied) on the
first day of the respective  Calculation Period and remain  outstanding  through
the date of determination and (y) (other than revolving  Indebtedness (except to
the extent  accompanied  by a  corresponding  permanent  commitment  reduction))
permanently  retired  or  redeemed  during  (and,  in the  case  of  determining
compliance  with  Section  8.02(x),   after  the  first  day  of)  the  relevant
Calculation Period shall be deemed to have been retired or redeemed on the first
day of the respective  Calculation Period and remain retired through the date of
determination;

          (ii) all Indebtedness  assumed to be outstanding pursuant to preceding
clause (i) shall be deemed to have  borne  interest  at (x) the rate  applicable
thereto,  in the case of fixed rate  indebtedness or (y) in the case of floating
rate  indebtedness,  the average rate which would have been  applicable  thereto
during the respective period when same was deemed outstanding (although interest
expense with  respect to any  Indebtedness  for periods  while same was actually
outstanding  during the respective  period shall be calculated  using the actual
rates applicable thereto while same was actually outstanding); and

                                     -123-
<PAGE>

          (iii) in making any determination of EBITDA, pro forma effect shall be
given to any Permitted  Acquisition  and any  Specified  Asset Sale and sale and
leaseback  transaction for the periods described above,  taking into account, in
the  case  of  any  Permitted   Acquisition,   any  factually   supportable  and
identifiable  cost savings and expenses which are directly  attributable to such
Permitted  Acquisition  as if such cost savings or expenses were realized on the
first day of the  respective  period,  provided,  however to the extent that pro
forma financial statements in accordance with Article 11 of Regulation S-X under
the Securities Act are required to be filed by Silgan or any of its Subsidiaries
with respect to any such Permitted  Acquisition  under the Securities Act or the
Securities  Exchange Act, such cost savings and expenses must be permitted to be
accounted for as an adjustment pursuant to such Article 11 of Regulation S-X.

          In  addition,   to  the  extent  that  either   historical   financial
information  of  the  Person  or  assets  acquired  as  part  of  any  Permitted
Acquisition  is not  available  or pro forma  adjustments  have been made to any
available  historical  financial  information,   Silgan  also  shall  provide  a
certificate  of its chief  financial  officer or treasurer  certifying  that the
financial  information used to determine such pro forma calculations  reasonably
reflects the results that would have  occurred  had such  Permitted  Acquisition
occurred on the first day of the most recently ended Test Period.

          "Projections" shall have the meaning provided in Section 5.01(m).

          "Qualified  Preferred  Stock" shall mean any preferred stock of Silgan
so  long as the  terms  of any  such  preferred  stock  (i) do not  contain  any
mandatory put,  redemption,  repayment,  sinking fund or other similar provision
occurring  before  December  31,  2012  (ii)  provide  that the  payment  of all
Dividends  thereunder are subject to the provisions set forth in this Agreement,
as the same may be amended, modified,  replaced or refinanced from time to time,
(iii) do not contain any  covenants  that are more  restrictive  in any material
respect  than  those  covenants  contained  in the  6-3/4%  Senior  Subordinated
Debenture  Indenture,  (iv) do not grant the holders  thereof any voting  rights
except for (x) voting  rights  required  to be  granted  to such  holders  under
applicable law and (y) limited  customary  voting rights on fundamental  matters
such as mergers, consolidations, sales of all or substantially all of the assets
of Silgan,  liquidations  involving Silgan or amendments to any of the covenants
set  forth  therein,  and  (v)  are  otherwise  reasonably  satisfactory  to the
Administrative Agent.

          "Quarterly  Payment  Date"  shall mean the last  Business  Day of each
March, June, September and December.

          "RCRA" shall mean the Resources  Conservation and Recovery Act, as the
same may be amended from time to time, 42 U.S.C. ss. 6901 et seq.

          "Real  Property" of any Person shall mean all of the right,  title and
interest of such Person in and to land,  improvements  and  fixtures,  including
Leaseholds.

          "Receivables  Subsidiary"  shall mean a special  purpose  Wholly-Owned
Domestic  Subsidiary  of Silgan  formed to enter  into the  Accounts  Receivable
Facility.

          "Recovery  Event"  shall  mean the  receipt  by  Silgan  or any of its
Subsidiaries of any cash insurance  proceeds or casualty or condemnation  awards
payable by reason of theft, loss,

                                     -124-
<PAGE>

physical destruction,  damage, taking or any other similar event with respect to
any property or assets of Silgan or any of its Subsidiaries.

          "Refinance,"  "Refinanced" or  "Refinancing"  shall mean, when used in
respect of the  6-3/4%  Senior  Subordinated  Debentures  and/or any  Additional
Permitted  Indebtedness,  to refinance,  redeem, repay,  repurchase,  acquire or
defease  any  6-3/4%  Senior  Subordinated  Debentures  or  any  such  issue  of
Additional Permitted Indebtedness.

          "Register" shall have the meaning provided in Section 12.16.

          "Regulation  D" shall mean  Regulation  D of the Board of Governors of
the Federal  Reserve  System as from time to time in effect and any successor to
all or a portion thereof establishing reserve requirements.

          "Regulation  T" shall mean  Regulation  T of the Board of Governors of
the Federal  Reserve  System as from time to time in effect and any successor to
all or a portion thereof.

          "Regulation  U" shall mean  Regulation  U of the Board of Governors of
the Federal  Reserve  System as from time to time in effect and any successor to
all or a portion thereof.

          "Regulation  X" shall mean  Regulation  X of the Board of Governors of
the Federal  Reserve  System as from time to time in effect and any successor to
all or a portion thereof.

          "Related  Foreign  Company  Group"  shall  mean,  with  respect to any
Foreign  Borrower,  the Foreign  Subsidiaries  which are parents of such Foreign
Borrower, and the Subsidiaries of such Foreign Borrower.

          "Related Foreign Company Guarantor" shall have the meaning provided in
Section 5.04(b).

          "Related Foreign Company  Guaranty" shall have the meaning provided in
Section 5.04(b).

          "Relevant Currency  Equivalent" shall mean the Dollar Equivalent,  the
Euro Equivalent or the Pounds Sterling Equivalent, as applicable.

          "Relevant  Effective  Date"  shall  mean (i) in the case of any Lender
party  hereto on the  Effective  Date or any  assignee of any such  Lender,  the
Effective Date, and (ii) in the case of a Person which is an Eligible Transferee
that  initially  becomes a Lender hereto  pursuant to Section 1.14 or 1.15,  the
Incremental  Loan  Commitment  Date  specified  in  the  respective  Incremental
Commitment Agreement for such Eligible Transferee.

          "Replaced Lender" shall have the meaning provided in Section 1.13.

          "Replacement Lender" shall have the meaning provided in Section 1.13.

                                     -125-
<PAGE>

          "Reportable Event" shall mean an event described in Section 4043(c) of
ERISA with respect to a Plan as to which the 30-day notice  requirement  has not
been waived by the PBGC.

          "Required Lenders" shall mean Non-Defaulting  Lenders the sum of whose
outstanding  Term Loans,  Incremental  Term Loan  Commitments and Revolving Loan
Commitments (or after the termination thereof,  outstanding Revolving Loans) and
RL Percentage of outstanding  Swingline Loans and Letter of Credit Outstandings)
represent  an amount  greater  than 50% of the sum of (i) all  outstanding  Term
Loans of Non-Defaulting Lenders, (ii) the Total Incremental Term Loan Commitment
in respect of all Tranches of Incremental  Term Loans less the Incremental  Term
Loan  Commitments of all Defaulting  Lenders and (iii) the Total  Revolving Loan
Commitment less the Revolving Loan Commitments of all Defaulting Lenders (or, if
after the Total  Revolving Loan Commitment has been  terminated,  the sum of the
then  total  outstanding  Revolving  Loans of  Non-Defaulting  Lenders)  and the
aggregate RL Percentages of all Non-Defaulting  Lenders of the total outstanding
Swingline Loans and Letter of Credit Outstandings at such time). For purposes of
this  definition,  the  calculation of the outstanding  principal  amount of all
Alternate  Currency  Loans shall be determined  by taking the Dollar  Equivalent
thereof at the time of any such calculation.

          "Required US Lenders" shall mean those Non-Defaulting  Lenders holding
Loans and Revolving Loan  Commitments of the US Borrowers which would constitute
the  Required  Lenders  under,  and  defined  in,  this  Agreement  if  all  the
outstanding Obligations of the Foreign Borrowers were repaid in full and all the
Commitments with respect thereto were terminated.

          "Retained  Excess Cash Flow Amount" shall mean,  initially zero and at
any time on or after January 1, 2006, a cumulative amount equal to the remainder
of (x) 100% of Excess Cash Flow for each Excess Cash Payment Period  (commencing
with the Excess Cash  Payment  Period  ending  December  31,  2005) less (y) the
amount (if any) required to be repaid  pursuant to Section 4.02(e) in respect of
each such Excess Cash Payment Period,  with the Retained Excess Cash Flow Amount
to be immediately  reduced by (i) the amount of any Permitted  Debt  Repurchases
made with the proceeds of the Retained  Excess Cash Flow Amount  (including  all
amounts  expended  in respect of  principal,  premium  and fees,  but  excluding
interest), (ii) the amount of any Capital Expenditures made with the proceeds of
the  Retained  Excess Cash Flow  Amount and (iii) the amount of any  Investments
made  pursuant to Section  8.05(xiv)  or  guaranties  entered  into  pursuant to
Section  8.04(xiii)  in  excess  of 20%of  Consolidated  Tangible  Assets at the
relevant  time  (based  on the  most  recently  delivered  financial  statements
pursuant to Section  7.01) in the  aggregate in each case made with the proceeds
of the Retained Excess Cash Flow Amount.

          "Revolving   Borrower"  shall  mean  each  of  Containers,   Plastics,
Manufacturing, CanCo and any other Wholly-Owned Subsidiary of Silgan (other than
the  Receivables  Subsidiary)  that  becomes a  Revolving  Borrower  pursuant to
Section 5.04(a) and, to the extent applicable, Section 5.04(b).

          "Revolving  Lender" shall mean each Lender which has a Revolving  Loan
Commitment (without giving effect to any termination of the Total Revolving Loan
Commitment

                                     -126-
<PAGE>

if any Swingline Loans or Letter of Credit  Outstandings  remain outstanding) or
which has any outstanding Revolving Loans.

          "Revolving Loan  Commitment"  shall mean, for each Lender,  the amount
set forth  opposite such  Lender's name in Schedule I directly  below the column
entitled  "Revolving Loan Commitment," as same may be (x) increased from time to
time  pursuant  to Section  1.15,  (y) reduced  from time to time or  terminated
pursuant to Sections  3.02,  3.03,  4.02 and/or 9, or (z) adjusted  from time to
time as a result of assignments to or from such Lender pursuant to Sections 1.13
and/or 12.04(b).

          "Revolving Loan Maturity Date" shall mean June 30, 2011.

          "Revolving Loans" shall have the meaning provided in Section 1.01(d).

          "Revolving Note" shall have the meaning provided in Section 1.05(a).

          "Revolving  Outstandings"  shall  mean,  at any  time,  the sum of the
aggregate  principal  amount of all  Revolving  Loans and  Swingline  Loans then
outstanding  plus the aggregate  amount of all Letter of Credit  Outstandings at
such time; provided, however, (i) that the term Revolving Outstandings shall not
include any Revolving  Loans or Swingline  Loans the proceeds of which were used
to finance a Permitted  Acquisition  (including  to refinance  any  Indebtedness
assumed as part of any Permitted Acquisition), an Investment pursuant to Section
8.05(xiv),  a payment under a guaranty  provided  under Section  8.04(xiii) or a
Permitted Debt  Repurchase and (ii) for the period  through,  but not including,
December  31,  2005,  the  Revolving  Outstandings  amount  shall  be  equal  to
$88,600,000.

          "RL  Percentage"  of any  Revolving  Lender at any time  shall  mean a
fraction  (expressed  as a  percentage)  the numerator of which is the Revolving
Loan  Commitment of such  Revolving  Lender at such time and the  denominator of
which is the Total Revolving Loan Commitment at such time;  provided that if the
RL  Percentage of any RL Lender is to be  determined  after the Total  Revolving
Loan  Commitment  has been  terminated,  then the RL  Percentages of the Lenders
shall be  determined  immediately  prior  (and  without  giving  effect) to such
termination.

          "S&P"  shall mean  Standard & Poor's  Rating  Services,  a division of
McGraw-Hill, Inc.

          "SEC" shall have the meaning provided in Section 7.01(g).

          "Section  4.04(b)(ii)  Certificate" shall have the meaning provided in
Section 4.04(b).

          "Secured  Creditors" shall have the meaning provided in the respective
Security Documents.

          "Securities Act" shall mean the Securities Act of 1933, as amended.

                                     -127-
<PAGE>

          "Securities  Exchange Act" shall mean the  Securities  Exchange Act of
1934, as amended.

          "Security  Document"  shall mean and  include  each  Foreign  Security
Document and each US Security Document.

          "Sharing  Event" shall mean (i) the occurrence of any Event of Default
with respect to any Borrower  pursuant to Section 9.05, (ii) the acceleration of
the maturity of the Loans  pursuant to the last  paragraph of Section 9 or (iii)
if the Required US Lenders so elect,  the failure to pay any Tranche of Loans in
full at the respective Maturity Date therefor.

          "Silgan"  shall have the meaning  provided in the first  paragraph  of
this Agreement.

          "Silgan  Lodi"  shall  mean  Silgan   Containers  Lodi   Manufacturing
Corporation,  a California corporation and a Wholly-Owned Domestic Subsidiary of
Silgan.

          "Silgan  Plastics  Canada" shall mean Silgan  Plastics Canada Inc., an
Ontario corporation and a Wholly-Owned Subsidiary of Canadian Holdco.

          "6-3/4% Senior  Subordinated  Debentures"  shall mean Silgan's  6-3/4%
Senior  Subordinated Notes due November 15, 2013, which were issued prior to the
Initial  Borrowing  Date  pursuant to the 6-3/4% Senior  Subordinated  Debenture
Indenture.

          "6-3/4% Senior Subordinated Debenture Documents" shall mean the 6-3/4%
Senior  Subordinated  Debentures,   the  6-3/4%  Senior  Subordinated  Debenture
Indenture and each of the other documents executed in connection therewith.

          "6-3/4%  Senior  Subordinated  Debenture  Indenture"  shall  mean  the
Indenture,  dated as of November 14, 2003, between Silgan and U.S. Bank National
Association,  as successor to National City Bank, as trustee, as the same may be
amended, modified or supplemented from time to time in accordance with the terms
hereof and thereof.

          "Specified  Asset  Sale"  shall mean any Asset Sale in which the gross
cash proceeds received therefrom is at least $1,000,000.

          "Specified Default" shall mean any Default under Section 9.01 or 9.05.

          "Start Date" shall mean, with respect to any Margin Reduction  Period,
the first day of such Margin Reduction Period.

          "Stated Amount" of each Letter of Credit shall mean the maximum amount
available  to be drawn  thereunder  (determined  without  regard to whether  any
conditions to drawing could then be met);  provided that, except as such term is
used in Section 2.02,  the "Stated  Amount" of each Primary  Alternate  Currency
Letter of Credit shall be, on any date of calculation,  the Dollar Equivalent of
the maximum  amount  available  to be drawn in the  relevant  Primary  Alternate
Currency  thereunder  (determined  without  regard to whether any  conditions to
drawings could then be met.

                                     -128-
<PAGE>

          "Subsidiary"  shall mean, as to any Person,  (i) any corporation  more
than 50% of whose  stock of any class or  classes  having  by the terms  thereof
ordinary  voting power to elect a majority of the directors of such  corporation
(irrespective  of  whether  or not at the time  stock of any class or classes of
such  corporation  shall  have or  might  have  voting  power by  reason  of the
happening of any  contingency) is at the time owned by such Person and/or one or
more Subsidiaries of such Person and (ii) any partnership,  association, limited
liability company, joint venture or other entity in which such Person and/or one
or more  Subsidiaries  of such Person has more than a 50% equity interest at the
time.  Notwithstanding  the foregoing (and except for purposes of Sections 6.11,
6.12, 7.06, 7.08, 9.06 and 12.01, and the definition of Unrestricted  Subsidiary
contained  herein),  an  Unrestricted  Subsidiary  shall be  deemed  not to be a
Subsidiary  of Silgan  or any of its other  Subsidiaries  for  purposes  of this
Agreement or any other Credit Document.  Unless the context indicates otherwise,
all references  herein to  Subsidiaries  are references to  Subsidiaries  of any
Borrower.

          "Supermajority Lenders" of any Tranche shall mean those Non-Defaulting
Lenders which would  constitute the Required  Lenders under,  and as defined in,
this  Agreement if (x) all  outstanding  Obligations of the other Tranches under
this Agreement were repaid in full and all Commitments with respect thereto were
terminated and (y) the text "an amount greater than 50%" contained  therein were
changed to "an amount equal to at least 66-2/3%".

          "Swingline Expiry Date" shall mean the date which is two Business Days
prior to the Revolving Loan Maturity Date.

          "Swingline  Lender"  shall  mean  the  Administrative  Agent,  in  its
capacity as the Swingline Lender hereunder.

          "Swingline Loan" shall have the meaning provided in Section 1.01(e).

          "Swingline Note" shall have the meaning provided in Section 1.05(a).

          "Tax Sharing Agreement" shall mean the Tax Allocation Agreement, dated
as of July 13, 1990,  as amended on December 21, 1993 and August 1, 1995, by and
among Silgan and each of its Domestic  Subsidiaries  party thereto,  as amended,
modified or supplemented from time to time.

          "Taxes" shall have the meaning provided in Section 4.04(a).

          "Term  Loan"  shall mean each A Term  Loan,  each B Term Loan and each
Incremental Term Loan.

          "Term Loan  Percentage"  of a Tranche of Term Loans shall mean, at any
time, a fraction (expressed as a percentage), the numerator of which is equal to
the  aggregate  outstanding  principal  amount of all Term Loans of such Tranche
(which, in the case of Alternate  Currency  Incremental Term Loans, shall be the
Dollar Equivalent of such aggregate  outstanding  principal amount) at such time
and the  denominator  of which is equal to the aggregate  outstanding  principal
amount  of all  Term  Loans of all  Tranches  (which,  in the case of  Alternate
Currency  Incremental  Term  Loans,  shall  be the  Dollar  Equivalent  of  such
aggregate principal amount) at such time.

                                     -129-
<PAGE>

          "Term Loan  Scheduled  Repayment"  shall have the meaning  provided in
Section 4.02(d).

          "Test Date" shall mean,  with respect to any Start Date,  the last day
of the most recent  fiscal  quarter of Silgan  ended  immediately  prior to such
Start Date.

          "Test  Period"  shall  mean  each  period of four  consecutive  fiscal
quarters of Silgan (in each case taken as one accounting period).

          "Total A Term Loan Commitment" shall mean, at any time, the sum of the
A Term Loan Commitments of each of the Lenders at such time.

          "Total B Term Loan Commitment" shall mean, at any time, the sum of the
B Term Loan Commitments of each of the Lenders at such time.

          "Total Commitment" shall mean, at any time, the sum of the Commitments
of each of the Lenders at such time.

          "Total  Incremental Term Loan Commitment"  shall mean, at any time and
for any Tranche of Incremental  Term Loans, the sum of the Incremental Term Loan
Commitments of such Tranche of each of the Lenders at such time.

          "Total  Indebtedness" shall mean, at any time, the aggregate principal
amount  of  Indebtedness  of  Silgan  and  its  Subsidiaries   determined  on  a
consolidated  basis at such time (but  excluding (x)  obligations  in respect of
Interest Rate Protection Agreements and (y) any premiums or discounts associated
with the issuance of any  Indebtedness to the extent that accounting  principles
generally  accepted  in the  United  States  would  require  such  amounts to be
reflected as Indebtedness on a consolidated balance sheet of Silgan).

          "Total  Leverage  Ratio" shall mean, for any period,  the ratio of (x)
the sum of (I) Total Indebtedness  (excluding Revolving  Outstandings) as of the
last day of such period plus (II) the Revolving  Outstandings on the December 31
immediately  preceding  the last day of such  period  (or, in the case of a Test
Period  ended  on  December  31 in any  fiscal  year of  Silgan,  the  Revolving
Outstandings on such December 31) to (y) EBITDA for then the most recently ended
Test Period. In determining the Total Leverage Ratio for any period, there shall
be  excluded  from  Total   Indebtedness  an  amount  equal  to  the  amount  of
unrestricted  cash and Cash  Equivalents  on the  consolidated  balance sheet of
Silgan and its Subsidiaries as of the last day of such period to the extent, but
only to the extent,  no Revolving  Loans or Swingline  Loans are  outstanding on
such day, provided,  that in no event shall more than $75,000,000 be deducted in
determining  Total  Indebtedness  as of the last day of such  period);  it being
understood and agreed,  however,  for purposes of determining Total Indebtedness
or Revolving  Loans or Swingline  Loans at any time that the CanCo  Restrictions
are in effect,  there shall be excluded  from such  calculation  that  aggregate
principal  amount of all Revolving Loans and Swingline Loans made to CanCo which
equals the aggregate  amount of unrestricted  cash and Cash  Equivalents held by
Silgan and its Subsidiaries (other than CanCo and its Subsidiaries) as reflected
on the consolidated  balance sheet of Silgan and its Subsidiaries as of the last
day of such period.

                                     -130-
<PAGE>

          "Total Revolving Loan Commitment"  shall mean, at any time, the sum of
the Revolving Loan Commitments of each of the Lenders at such time.

          "Total Unutilized  Revolving Loan Commitment" shall mean, at any time,
an amount equal to the remainder of (x) the then Total Revolving Loan Commitment
less (y) the sum of the aggregate  principal  amount of all Revolving Loans (for
this  purpose,  using the Dollar  Equivalent of all Primary  Alternate  Currency
Revolving  Loans) and Swingline Loans then  outstanding  plus the then aggregate
amount of all Letter of Credit Outstandings.

          "Tranche"  shall  mean  the  respective   facilities  and  commitments
utilized in making Loans hereunder,  with there being four separate  Tranches on
the  Effective  Date,  i.e.,  A Term Loans,  B Term Loans,  Revolving  Loans and
Swingline Loans. In addition, and notwithstanding the foregoing, any Incremental
Term Loans extended after the Initial Borrowing Date shall, except to the extent
provided in Section 1.14(c), be made pursuant to one or more additional Tranches
which shall be  designated  pursuant  to the  respective  Incremental  Term Loan
Commitment Agreements in accordance with the relevant requirements  specified in
Section 1.14,  provided  that, for purposes of Section 1.16 only, for so long as
the CanCo Restrictions  remain in effect and CanCo has not become a party to the
US  Borrowers/Subsidiaries  Guaranty,  Revolving  Loans  and  Letter  of  Credit
Outstandings made to CanCo shall be deemed to be a separate Tranche.

          "Triggering  Event"  shall  mean (i) any of the  events  described  in
Section 6(a) of the Campbell Can Pledge  Agreement,  (ii) the non-renewal of the
term under the Campbell Can Supply  Agreement  and purchase by Campbell  Soup of
all of CanCo's assets,  all as described in Article 8 of the Campbell Can Supply
Agreement and (iii) any other event that allows Campbell Soup to purchase all or
substantially all of the assets or capital stock of CanCo.

          "Type"  shall mean (i) for any Dollar  Loan,  the type of such  Dollar
Loan  determined  with regard to the interest option  available  thereto,  i.e.,
whether  a Base  Rate  Loan or a  Eurodollar  Loan,  and (ii) for any  Alternate
Currency Loan, the Applicable Currency of such Alternate Currency Loan.

          "UCC"  shall  mean the  Uniform  Commercial  Code as in  effect in the
relevant jurisdictions.

          "Unfunded  Current  Liability"  of any Plan shall mean the amount,  if
any, by which the present value of the accrued benefits under the Plan as of the
close of its most recent plan year  exceeds the fair market  value of the assets
allocable thereto determined in accordance with Section 412 of the Code.

          "United  States"  and  "U.S."  shall  each mean the  United  States of
America.

          "Unpaid  Drawing"  shall mean a Dollar Unpaid  Drawing  and/or Primary
Alternate Currency Unpaid Drawing, as the context may require.

          "Unrestricted  Subsidiary" shall mean any Subsidiary of Silgan that is
(i) acquired or created after the Initial  Borrowing Date and (ii) designated by
Silgan  as an  Unrestricted  Subsidiary  hereunder  by  written  notice  to  the
Administrative Agent at the time that such

                                     -131-
<PAGE>

Subsidiary is created or acquired,  provided that Silgan shall only be permitted
to so designate such Subsidiary as an Unrestricted  Subsidiary after the Initial
Borrowing  Date so long as (w) no  Default or Event of  Default  then  exists or
would result  therefrom,  (x) all of the  provisions  of Section 8.11 shall have
been complied with in respect of such newly-designated  Unrestricted Subsidiary,
(y) such Unrestricted Subsidiary shall be capitalized (to the extent capitalized
by Silgan or any of its Subsidiaries)  through  Investments as permitted by, and
in  compliance  with,  Section  8.05(xiv),  and  with any  assets  owned by such
Unrestricted  Subsidiary  at the time of the initial  designation  thereof to be
treated as  Investments  in such  Unrestricted  Subsidiary  pursuant  to Section
8.05(xiv),  and (z) at least five Business Days prior to the  designation of any
Person  as an  Unrestricted  Subsidiary,  Silgan  shall  have  delivered  to the
Administrative  Agent a certificate of its chief financial  officer or treasurer
setting forth (in reasonable  detail) the recalculation of the Interest Coverage
Ratio and the Total Leverage Ratio on a Pro Forma Basis for the Test Period then
most recently ended prior to the date of such  designation  for which  financial
statements  have been  delivered to the Lenders under this  Agreement,  and such
recalculation shall show that Silgan would have been in compliance with Sections
8.08 and 8.09 as of the last day of such Test Period.

          "Unutilized  Revolving Loan  Commitment" with respect to any Revolving
Lender,  at  any  time,  shall  mean  such  Revolving  Lender's  Revolving  Loan
Commitment  at such time less the sum of (i) the aggregate  principal  amount of
all Revolving  Loans made by such Revolving  Lender and outstanding at such time
(for this  purpose,  using the  Dollar  Equivalent  of all  outstanding  Primary
Alternate  Currency  Revolving  Loans of such  Revolving  Lender)  and (ii) such
Revolving  Lender's RL Percentage of the Letter of Credit  Outstandings  at such
time.

          "US Borrower" shall mean Silgan or any US Revolving Borrower.

          "US  Borrowers/Subsidiaries  Guaranty" shall have the meaning provided
in Section 5.01(g).

          "US  Collateral"  shall mean all assets or properties of any US Credit
Party  covered by any of the US Security  Documents,  including  all  Additional
Collateral covered thereby.

          "US  Credit  Party"  shall  mean  each of  Silgan,  each US  Revolving
Borrower and each other US Guarantor.

          "US Guarantor" shall mean Silgan,  each US Revolving Borrower and each
other US  Subsidiary  Guarantor in their  capacities as such,  although  neither
CanCo  nor  any of its  Subsidiaries  shall  be a  Guarantor  for so long as the
applicable CanCo Restrictions remain in effect.

          "US Pledge  Agreement"  shall  have the  meaning  provided  in Section
5.01(h).

          "US  Pledge  Agreement  Collateral"  shall  mean all  "Collateral"  as
defined in the US Pledge Agreement.

          "US Revolving  Borrower" shall mean each Revolving  Borrower that is a
Wholly-Owned Domestic Subsidiary of Silgan.

                                     -132-
<PAGE>

          "US  Security  Agreement"  shall have the meaning  provided in Section
5.01(i).

          "US  Security  Agreement   Collateral"  shall  mean  and  include  all
"Collateral" as defined in the US Security Agreement.

          "US  Security   Documents"  shall  mean  and  include  the  US  Pledge
Agreement,  the US Security  Agreement  and,  after the  execution  and delivery
thereof, each Additional Security Document entered into by a US Credit Party.

          "US Subsidiary Guarantor" shall mean (i) each US Revolving Borrower in
its  capacity as a guarantor  under the US  Borrowers/Subsidiaries  Guaranty and
(ii) each  other  Domestic  Subsidiary  of Silgan  (other  than the  Receivables
Subsidiary),  although (x) neither CanCo nor any of its Subsidiaries  shall be a
US Subsidiary  Guarantor for so long as the applicable CanCo Restrictions are in
effect and (y) Silgan  Lodi shall not be a US  Subsidiary  Guarantor  so long as
Silgan Lodi  conducts no  operations  and has no assets  (other than  immaterial
assets).

          "Voting  Stock"  shall  mean the  capital  stock of Silgan  ordinarily
having the power to vote for the election of directors of Silgan.

          "Waivable  Mandatory  Repayment"  shall have the  meaning  provided in
Section 4.02(l).

          "Weighted  Average Life to Maturity"  shall mean,  when applied to any
Indebtedness  at any date, the number of years obtained by dividing (i) the then
outstanding principal amount of such Indebtedness into (ii) the product obtained
by  multiplying  (x) the  amount of each  then  remaining  installment  or other
required scheduled  payments of principal,  including payment at final maturity,
in  respect  thereof,  by (y) the  number of years  (calculated  to the  nearest
one-twelfth) that will elapse between such date and the making of such payment.

          "Wholly-Owned  Domestic  Subsidiary" shall mean, as to any Person, any
Wholly-Owned Subsidiary of such Person that is a Domestic Subsidiary.

          "Wholly-Owned  Foreign  Subsidiary" shall mean, as to any Person,  any
Wholly-Owned Subsidiary of such Person that is a Foreign Subsidiary.

          "Wholly-Owned  Subsidiary"  shall  mean,  as to any  Person,  (i)  any
corporation 100% of whose capital stock (other than directors' qualifying shares
and/or other nominal  amounts of shares  required to be held by local  nationals
under  applicable  law) is at the time owned by such  Person  and/or one or more
Wholly-Owned Subsidiaries of such Person and (ii) any partnership,  association,
joint venture,  limited  liability  company or other entity in which such Person
and/or one or more  Wholly-Owned  Subsidiaries  of such Person has a 100% equity
interest at such time (other than nominal interests required to be held by local
nationals under applicable law).

          "Working Capital" shall mean, at any time, Consolidated Current Assets
(excluding cash and Cash Equivalents) less Consolidated  Current  Liabilities at
such time;  provided,  however, for purposes of calculating Excess Cash Flow for
any Excess Cash Payment Period,

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<PAGE>

Working  Capital  shall be calculated on a Pro Forma basis to give effect to any
Permitted Acquisitions made during such period.

          10.02  Principles  of  Construction.  (a) All  references to sections,
schedules  and exhibits are to  sections,  schedules  and exhibits in or to this
Agreement unless otherwise specified.

          (b) All  accounting  terms not  specifically  defined  herein shall be
construed in accordance with  accounting  principles  generally  accepted in the
United  States in  conformity  with  those used in the  preparation  of the last
audited financial statements referred to in Section 6.07(a).

          Section 11. The Administrative Agent; etc.

          11.01  Appointment.  The  Lenders  hereby  irrevocably  designate  and
appoint Deutsche Bank as  Administrative  Agent (for purposes of this Section 11
and Section 12.01, the term  "Administrative  Agent" also shall include Deutsche
Bank in its capacity as Collateral Agent pursuant to the Security  Documents) to
act as specified  herein and in the other Credit  Documents.  Each Lender hereby
irrevocably  authorizes,  and each holder of any Note by the  acceptance of such
Note shall be deemed irrevocably to authorize,  the Administrative Agent to take
such action on its behalf  under the  provisions  of this  Agreement,  the other
Credit Documents and any other instruments and agreements  referred to herein or
therein and to exercise  such powers and to perform  such duties  hereunder  and
thereunder as are  specifically  delegated to or required of the  Administrative
Agent by the terms  hereof and thereof and such other  powers as are  reasonably
incidental thereto.  The Administrative  Agent may perform any of its respective
duties  hereunder by or through its officers,  directors,  agents,  employees or
affiliates.

          11.02 Nature of Duties.  (a) The  Administrative  Agent shall not have
any  duties  or  responsibilities  except  those  expressly  set  forth  in this
Agreement and in the other Credit Documents.  Neither the  Administrative  Agent
nor any of its officers,  directors,  agents,  employees or affiliates  shall be
liable for any action  taken or  omitted  by it or them  hereunder  or under any
other Credit Document or in connection  herewith or therewith,  unless caused by
its or their gross negligence or willful misconduct (as determined by a court of
competent  jurisdiction in a final and non-appealable  decision).  The duties of
the  Administrative  Agent shall be mechanical and administrative in nature; the
Administrative  Agent  shall not have by reason of this  Agreement  or any other
Credit Document a fiduciary  relationship in respect of any Lender or the holder
of any Note;  and nothing in this  Agreement  or in any other  Credit  Document,
expressed or implied,  is intended to or shall be so construed as to impose upon
the  Administrative  Agent any  obligations  in respect of this Agreement or any
other Credit Document except as expressly set forth herein or therein.

          (b)  Notwithstanding  any other  provision  of this  Agreement  or any
provision of any other Credit Document, the Joint Lead Arrangers, Co-Syndication
Agents,  the  Co-Documentation  Agents and the Persons  listed on the title page
hereof as "Senior Managing  Agents" and "Managing  Agents" are named as such for
recognition purposes only, and in their capacities as such shall have no powers,
duties,  responsibilities  or liabilities  with respect to this Agreement or the
other Credit Documents or the transactions contemplated hereby and thereby;

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<PAGE>

it being  understood and agreed that the Lead Arrangers shall be entitled to all
indemnification  and reimbursement  rights in favor of the Administrative  Agent
as, and to the extent,  provided  for under  Sections  11.06 and 12.01.  Without
limitation of the foregoing,  the Lead Arrangers  shall not, solely by reason of
this Agreement or any other Credit Documents, have any fiduciary relationship in
respect of any Lender or any other Person.

          11.03 Lack of Reliance on the Administrative Agent.  Independently and
without reliance upon the  Administrative  Agent,  each Lender and the holder of
each Note, to the extent it deems  appropriate,  has made and shall  continue to
make  (i) its own  independent  investigation  of the  financial  condition  and
affairs of Silgan and its  Subsidiaries  in  connection  with the making and the
continuance  of the  Loans  and  the  taking  or not  taking  of any  action  in
connection herewith and (ii) its own appraisal of the creditworthiness of Silgan
and its Subsidiaries  and, except as expressly  provided in this Agreement,  the
Administrative Agent shall not have any duty or responsibility, either initially
or on a continuing  basis,  to provide any Lender or the holder of any Note with
any credit or other  information with respect  thereto,  whether coming into its
possession  before the  making of the Loans or at any time or times  thereafter.
The Administrative Agent shall not be responsible to any Lender or the holder of
any  Note  for  any  recitals,  statements,   information,   representations  or
warranties herein or in any document,  certificate or other writing delivered in
connection herewith or for the execution, effectiveness,  genuineness, validity,
enforceability,  perfection,  collectibility,  priority or  sufficiency  of this
Agreement or any other Credit  Document or the financial  condition of Silgan or
any of its Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms,  provisions or conditions of this
Agreement or any other Credit Document,  or the financial condition of Silgan or
any of its Subsidiaries or the existence or possible existence of any Default or
Event of Default.

          11.04   Certain   Rights   of  the   Administrative   Agent.   If  the
Administrative  Agent  requests  instructions  from the  Required  Lenders  with
respect to any act or action (including  failure to act) in connection with this
Agreement  or any other  Credit  Document,  the  Administrative  Agent  shall be
entitled to refrain  from such act or taking  such  action  unless and until the
Administrative Agent shall have received instructions from the Required Lenders;
and the  Administrative  Agent  shall not incur  liability  to any Lender or any
other Person by reason of so refraining. Without limiting the foregoing, neither
any Lender nor the holder of any Note shall have any right of action  whatsoever
against the Administrative  Agent as a result of the Administrative Agent acting
or  refraining  from  acting  hereunder  or under any other  Credit  Document in
accordance with the instructions of the Required Lenders.

          11.05 Reliance.  The  Administrative  Agent shall be entitled to rely,
and shall be fully  protected in relying,  upon any note,  writing,  resolution,
notice,   statement,   certificate,   telex,  teletype  or  telecopier  message,
cablegram,  radiogram, order or other document or telephone message signed, sent
or made by any Person that the  Administrative  Agent  believed to be the proper
Person,  and, with respect to all legal matters pertaining to this Agreement and
any other Credit Document and its duties  hereunder and thereunder,  upon advice
of counsel selected by the Administrative Agent.

          11.06 Indemnification.  To the extent the Administrative Agent (or any
affiliate  thereof) is not  reimbursed and  indemnified  by the  Borrowers,  the
Lenders will reimburse and indemnify the Administrative Agent (and any affiliate
thereof) in proportion to their respective

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<PAGE>

"percentage" as used in determining the Required Lenders (determined as if there
were  no  Defaulting   Lenders)  for  and  against  any  and  all   liabilities,
obligations,  losses, damages,  penalties,  claims, actions,  judgments,  costs,
expenses or  disbursements of whatsoever kind or nature which may be imposed on,
asserted  against or  incurred  by the  Administrative  Agent (or any  affiliate
thereof) in performing its duties  hereunder or under any other Credit  Document
or in any way  relating to or arising out of this  Agreement or any other Credit
Document;  provided  that no Lender  shall be  liable  for any  portion  of such
liabilities,   obligations,   losses,  damages,   penalties,   claims,  actions,
judgments,   suits,  costs,   expenses  or  disbursements   resulting  from  the
Administrative  Agent's  (or  such  affiliate's)  gross  negligence  or  willful
misconduct  (as determined by a court of competent  jurisdiction  in a final and
non-appealable decision).

          11.07  The  Administrative  Agent  in its  Individual  Capacity.  With
respect to its  obligation to make Loans,  or issue or participate in Letters of
Credit, under this Agreement, the Administrative Agent shall have the rights and
powers  specified  herein for a "Lender"  and may  exercise  the same rights and
powers as though it were not performing  the duties  specified  herein;  and the
term "Lender," "Majority Lenders",  "Required Lenders," "Supermajority Lenders,"
"holders  of Notes" or any  similar  terms  shall,  unless the  context  clearly
indicates  otherwise,   include  the  Administrative  Agent  in  its  respective
individual  capacities.  The Administrative  Agent and its affiliates may accept
deposits  from,  lend money to,  and  generally  engage in any kind of  banking,
investment  banking,  trust or other business  with, or provide debt  financing,
equity capital or other services (including  financial advisory services) to any
Credit Party or any  Affiliate  of any Credit Party (or any Person  engaged in a
similar business with any Credit Party or any Affiliate thereof) as if they were
not  performing  the duties  specified  herein,  and may  accept  fees and other
consideration  from any Credit  Party or any  Affiliate  of any Credit Party for
services in  connection  with this  Agreement and  otherwise  without  having to
account for the same to the  Lenders.  The  Administrative  Agent may also be an
equity  investor  in  Silgan or any  Affiliate  of Silgan  without  any  consent
required from any Lender.

          11.08 Holders.  The Administrative  Agent may deem and treat the payee
of any Note as the owner  thereof  for all  purposes  hereof  unless and until a
written notice of the assignment,  transfer or endorsement  thereof, as the case
may be,  shall have been  filed  with the  Administrative  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,  assignee or endorsee, as the
case may be, of such Note or of any Note or Notes issued in exchange therefor.

          11.09 Resignation by the Administrative  Agent. (a) The Administrative
Agent may resign from the performance of all its respective functions and duties
hereunder  and/or  under the  other  Credit  Documents  at any time by giving 15
Business Days' prior written  notice to the Lenders and,  unless a Default or an
Event of Default under Section 9.05 then exists, Silgan. Any such resignation by
an  Administrative  Agent  hereunder shall also constitute its resignation as an
Issuing  Lender  and  the  Swingline   Lender,   in  which  case  the  resigning
Administrative  Agent (x) shall not be required to issue any further  Letters of
Credit or make any additional  Swingline  Loans hereunder and (y) shall maintain
all of its rights as Issuing  Lender or  Swingline  Lender,  as the case may be,
with respect to any Letters of Credit  issued by it, or Swingline  Loans made by
it, prior to the date of such  resignation.  Such resignation  shall take effect
upon the appointment of a successor Administrative Agent pursuant to clauses (b)
and (c) below or as otherwise provided below.

                                     -136-
<PAGE>

          (b) Upon any such notice of resignation by the  Administrative  Agent,
the Required  Lenders shall appoint a successor  Administrative  Agent hereunder
and/or under the other Credit  Documents who shall be a commercial bank or trust
company  reasonably   acceptable  to  Silgan,  which  acceptance  shall  not  be
unreasonably  withheld or delayed  (provided that Silgan's approval shall not be
required if an Event of Default then exists).

          (c) If a  successor  Administrative  Agent  shall  not  have  been  so
appointed within such 15 Business Day period, the Administrative Agent, with the
consent of Silgan (which consent shall not be unreasonably  withheld or delayed,
provided that Silgan's consent shall not be required if an Event of Default then
exists), shall then appoint a successor  Administrative Agent who shall serve as
Administrative  Agent  hereunder  and/or under the other Credit  Documents until
such time, if any, as the Required  Lenders  appoint a successor  Administrative
Agent as provided above.

          (d) If no successor  Administrative  Agent has been appointed pursuant
to clause (b) or (c) above by the 20th  Business  Day after the date such notice
of resignation was given by the Administrative Agent, the Administrative Agent's
resignation  shall become  effective and the Required  Lenders shall  thereafter
perform all the duties of the  Administrative  Agent hereunder  and/or under any
other Credit Document until such time, if any, as the Required Lenders appoint a
successor Administrative Agent as provided above.

          (e) Upon a resignation  of the  Administrative  Agent pursuant to this
Section 11.09, the  Administrative  Agent shall remain indemnified to the extent
provided in this Agreement and the other Credit  Documents and the provisions of
this Section 11 (and the  analogous  provisions  of the other Credit  Documents)
shall continue in effect for the benefit of the Administrative  Agent for all of
its actions and inactions while serving as the Administrative Agent.

          11.10 Collateral  Matters.  (a) Each Lender authorizes and directs the
Collateral  Agent to enter into the  Security  Documents  for the benefit of the
Lenders and the other Secured  Creditors.  Each Lender hereby  agrees,  and each
holder of any Note by the  acceptance  thereof  will be  deemed to agree,  that,
except as otherwise set forth herein,  any action taken by the Required  Lenders
in accordance  with the provisions of this Agreement or the Security  Documents,
and the  exercise  by the  Required  Lenders of the  powers set forth  herein or
therein,  together with such other powers as are reasonably  incidental thereto,
shall be authorized and binding upon all of the Lenders. The Collateral Agent is
hereby authorized on behalf of all of the Lenders,  without the necessity of any
notice to or  further  consent  from any  Lender,  from time to time prior to an
Event of Default,  to take any action with respect to any Collateral or Security
Documents which may be necessary to perfect and maintain  perfected the security
interest  in and liens upon the  Collateral  granted  pursuant  to the  Security
Documents.

          (b) The Lenders hereby  authorize the Collateral  Agent, at its option
and in its discretion,  to release any Lien granted to or held by the Collateral
Agent upon any Collateral (i) upon  termination of the  Commitments  and payment
and satisfaction of all of the Obligations (other than inchoate  indemnification
obligations)  at any time arising  under or in respect of this  Agreement or the
Credit  Documents  or the  transactions  contemplated  hereby or  thereby,  (ii)
constituting property being sold or otherwise disposed of (to Persons other than
Silgan and its

                                     -137-
<PAGE>

Subsidiaries)  upon the sale or other  disposition  thereof in  compliance  with
Section  8.02,  (iii) if  approved,  authorized  or  ratified  in writing by the
Required  Lenders (or all of the Lenders  hereunder,  to the extent  required by
Section 12.12(a)) or (iv) as otherwise may be expressly provided in the relevant
Security  Documents.  Upon request by the Administrative  Agent at any time, the
Lenders  will  confirm in writing the  Collateral  Agent's  authority to release
particular types or items of Collateral pursuant to this Section 11.10.

          (c) The  Collateral  Agent shall have no obligation  whatsoever to the
Lenders or to any other Person to assure that the Collateral  exists or is owned
by any  Credit  Party or is cared  for,  protected  or insured or that the Liens
granted to the Collateral  Agent herein or pursuant hereto have been properly or
sufficiently  or  lawfully  created,  perfected,  protected  or  enforced or are
entitled to any particular priority, or to exercise or to continue exercising at
all or in any manner or under any duty of care,  disclosure  or fidelity  any of
the rights,  authorities and powers granted or available to the Collateral Agent
in this Section 11.10 or in any of the Security  Documents,  it being understood
and agreed  that in respect of the  Collateral,  or any act,  omission  or event
related  thereto,  the  Collateral  Agent  may  act in any  manner  it may  deem
appropriate,  in its sole discretion,  given the Collateral Agent's own interest
in the Collateral as one of the Lenders and that the Collateral Agent shall have
no duty or liability whatsoever to the Lenders,  except for its gross negligence
or willful  misconduct (as determined by a court of competent  jurisdiction in a
final and non-appealable decision).

          Section 12. Miscellaneous

          12.01 Payment of Expenses,  etc. The  Borrowers  jointly and severally
agree that they will: (i) whether or not the  transactions  herein  contemplated
are  consummated,  pay all reasonable  out-of-pocket  costs and expenses of each
Agent in connection with the  preparation,  execution and delivery of the Credit
Documents  and  the  documents  and  instruments  referred  to  therein  and any
amendment,  waiver or consent relating thereto  (including,  without limitation,
the  reasonable  fees and  disbursements  of White & Case LLP, local and foreign
counsel and,  without  duplication,  the allocated costs of in-house counsel for
each Agent) and of each Agent in connection with their syndication  efforts with
respect  to this  Agreement  and of  each  Agent  and  each  of the  Lenders  in
connection  with the  enforcement of the Credit  Documents and the documents and
instruments  referred  to  therein  or in  connection  with any  refinancing  or
restructuring  of the credit  arrangements  provided under this Agreement in the
nature of a "work-out" or pursuant to any  insolvency or bankruptcy  proceedings
(including, without limitation, the reasonable fees and disbursements of counsel
and  consultants for each Agent as a group and, after the occurrence of an Event
of Default,  one  additional  counsel for the Lenders as a group);  (ii) pay and
hold each of the  Lenders  harmless  from and  against  any and all  present and
future  stamp,  excise and other  similar  taxes with  respect to the  foregoing
matters  and save each of the  Lenders  harmless  from and  against  any and all
liabilities  with respect to or resulting from any delay or omission (other than
to the  extent  attributable  to such  Lender)  to pay  such  taxes;  and  (iii)
indemnify  each  Agent and each  Lender,  its  officers,  directors,  employees,
affiliates,  representatives  and  agents  from and hold  each of them  harmless
against  any and all  liabilities,  obligations  (including  removal or remedial
actions), losses, damages, penalties,  claims, actions, judgments, suits, costs,
expenses and  disbursements  (including  reasonable  attorneys' and consultants'
fees and disbursements)  incurred by, imposed on or assessed against any of them
as a result of, or arising  out of, or in any way  related  to, or by reason of,
(a) any investigation,

                                     -138-
<PAGE>

litigation  or other  proceeding  (whether  or not any Agent or any  Lender is a
party thereto) related to the entering into and/or performance of this Agreement
or any other Credit  Document or the use of any Letter of Credit or the proceeds
of any Loans  hereunder or the  consummation  of any  transactions  contemplated
herein or in any other Credit Document or the exercise of any of their rights or
remedies  provided  herein or in the other Credit  Documents,  provided that the
indemnity  described  above  in this  clause  (iii)(a)  shall  not  apply to any
liabilities,   obligations,   losses,  damages,   penalties,   claims,  actions,
judgments,  suits, costs,  expenses or disbursements  incurred by, imposed on or
assessed  as a result of, or  arising  out of, or in any way  related  to, or by
reason of any litigation, proceeding or other action solely between or among the
Lenders (excluding,  however,  any liabilities,  obligations,  losses,  damages,
penalties,  claims, actions, judgments, suits, costs, expenses and disbursements
(all of which shall be covered by such  indemnity)  incurred  by,  imposed on or
assessed against the Administrative  Agent, the Collateral Agent or any of their
respective officers, directors, employees, affiliates, representatives or agents
as a result of, or arising out of, or in any way related to, or by reason of any
such litigation,  proceeding or action to which the Administrative  Agent or the
Collateral Agent (or any of their  respective  officers,  directors,  employees,
affiliates,  representatives  or agents) is a party in its  capacity as such) to
the extent (and only to the extent) that such  litigation,  proceeding  or other
action does not relate to, or arise  from,  any action or omission by Siligan or
any of its  Subsidiaries,  or (b) the actual or alleged  presence  of  hazardous
materials  in the  air,  surface  water  or  groundwater  or on the  surface  or
subsurface of any Real  Property  owned or at any time operated by Silgan or any
of its  Subsidiaries,  the  generation,  storage,  transportation,  handling  or
disposal of hazardous  materials  by or of (or on behalf of or at the  direction
of) Silgan or any of its  Subsidiaries at any location,  whether or not owned or
operated by Silgan or any of its  Subsidiaries,  the  non-compliance of any Real
Property  with  foreign,  federal,  state  and  local  laws,  regulations,   and
ordinances  (including  applicable  permits  thereunder)  applicable to any Real
Property,  or  any  environmental  claim  asserted  against  Silgan,  any of its
Subsidiaries or any Real Property owned or at any time operated by Silgan or any
of its Subsidiaries, including, in each case, without limitation, the reasonable
fees and disbursements of counsel and other  consultants  incurred in connection
with any such investigation,  litigation or other proceeding (but, in each case,
excluding  any losses,  liabilities,  claims,  damages or expenses to the extent
incurred by reason of the gross  negligence or willful  misconduct of the Person
to be indemnified (as determined by a court of competent jurisdiction in a final
and non-appealable  decision)). To the extent that the undertaking to indemnify,
pay or hold harmless any Agent or any Lender set forth in the preceding sentence
may be  unenforceable  because it is violative of any law or public policy,  the
Borrowers shall make the maximum contribution to the payment and satisfaction of
each of the indemnified liabilities which is permissible under applicable law.

          12.02  Right of Setoff.  In  addition  to any rights now or  hereafter
granted under  applicable law or otherwise,  and not by way of limitation of any
such  rights,  upon the  occurrence  and during the  continuance  of an Event of
Default,  the  Administrative  Agent and each Lender is hereby authorized at any
time or from time to time without presentment,  demand,  protest or other notice
of any kind to any Borrower or to any other Person, any such notice being hereby
expressly  waived,  to set off and to appropriate and apply any and all deposits
(general or  special)  and any other  Indebtedness  at any time held or owing by
Administrative Agent or such Lender (including,  without limitation, by branches
and agencies of the Administrative  Agent or such Lender (or Affiliates thereof)
wherever  located) to or for the credit or the account of such Borrower  against
and on account of the Obligations and liabilities of such Borrower to the

                                     -139-
<PAGE>

Administrative  Agent or such Lender  under this  Agreement  or under any of the
other  Credit  Documents,   including,  without  limitation,  all  interests  in
Obligations purchased by such Lender pursuant to Section 12.06(b), and all other
claims of any  nature  or  description  arising  out of or  connected  with this
Agreement  or any other  Credit  Document,  irrespective  of  whether or not the
Administrative  Agent or such Lender  shall have made any demand  hereunder  and
although  said  Obligations,  liabilities  or claims,  or any of them,  shall be
contingent or unmatured.

          12.03 Notices.  Except as otherwise  expressly  provided  herein,  all
notices and other  communications  provided  for  hereunder  shall be in writing
(including  telegraphic,  telex,  telecopier or cable communication) and mailed,
telegraphed,  telexed,  telecopied,  cabled or delivered, if to any Borrower, at
its address  specified  opposite its signature  below; if to any Lender,  at its
office specified  opposite its name on Schedule IX; and if to the Administrative
Agent, at the Notice Office; or, as to any Borrower or the Administrative Agent,
at such other address as shall be  designated by such party in a written  notice
to the other parties  hereto and, as to each other party,  at such other address
as shall be  designated  by such party in a written  notice to the Borrowers and
the  Administrative  Agent.  All such  notices and  communications  shall,  when
mailed, telegraphed,  telexed, telecopied,  cabled or sent by overnight courier,
be effective  when deposited in the mails,  delivered to the telegraph  company,
cable  company  or  overnight  courier,  as the case may be, or sent by telex or
telecopier,  except that notices and communications to the Administrative  Agent
shall not be effective until received by the Administrative Agent.

          12.04 Benefit of Agreement.  (a) This Agreement  shall be binding upon
and inure to the benefit of and be enforceable by the respective  successors and
assigns of the parties  hereto;  provided,  however,  no Borrower  may assign or
transfer any of its rights, obligations or interest hereunder or under any other
Credit Document  without the prior written consent of the Lenders and,  provided
further, that, although any Lender may transfer,  assign or grant participations
in its rights  hereunder,  such Lender  shall remain a "Lender" for all purposes
hereunder (and may not transfer or assign all or any portion of its  Commitments
or outstanding Loans hereunder except as provided in Sections 1.13 and 12.04(b))
and the  transferee,  assignee  or  participant,  as the case may be,  shall not
constitute a "Lender"  hereunder  and,  provided  further,  that no Lender shall
transfer  or grant any  participation  under  which the  participant  shall have
rights to approve  any  amendment  to or waiver of this  Agreement  or any other
Credit  Document  except to the extent such amendment or waiver would (i) extend
the final scheduled  maturity of any Loan, Note or Letter of Credit (unless such
Letter of Credit is not extended  beyond the Revolving  Loan  Maturity  Date) in
which such participant is  participating,  or reduce the rate or extend the time
of payment of interest or Fees thereon  (except in  connection  with a waiver of
applicability  of  any  post-default  increase  in  interest  rates)  (it  being
understood that any amendment or  modification  to the financial  definitions in
this  Agreement or to Section  12.07(a)  shall not constitute a reduction in the
rate of interest  or Fees  payable  hereunder)  or reduce the  principal  amount
thereof,  or increase  the amount of the  participant's  participation  over the
amount thereof then in effect (it being  understood that a waiver of any Default
or Event of Default or of a mandatory  reduction in the Total  Commitment  shall
not constitute a change in the terms of such participation, and that an increase
in any  Commitment  or Loan  shall  be  permitted  without  the  consent  of any
participant  if the  participant's  participation  is not  increased as a result
thereof),  (ii) consent to the  assignment or transfer by any Borrower of any of
its  rights  and  obligations  under  this  Agreement  or (iii)  release  all or
substantially all of the Collateral under all of the

                                     -140-
<PAGE>

Security  Documents  (except as  expressly  provided  in the  Credit  Documents)
supporting the Loans in which such participant is participating.  In the case of
any such  participation,  the  participant  shall not have any rights under this
Agreement or any of the other Credit Documents (the participant's rights against
such  Lender  in  respect  of such  participation  to be those  set forth in the
agreement executed by such Lender in favor of the participant  relating thereto)
and all amounts payable by any Borrower hereunder shall be determined as if such
Lender had not sold such participation.

          (b) Notwithstanding the foregoing,  any Lender (or any Lender together
with  one or  more  other  Lenders)  may  (x)  assign  all or a  portion  of its
Commitments and related  outstanding  Obligations  (or, if the Commitments  with
respect  to the  relevant  Tranche  have  terminated,  outstanding  Obligations)
hereunder to (i)(A) its parent company and/or any affiliate of such Lender which
is at least 50% owned by such Lender or its parent company or (B) to one or more
other  Lenders or any  affiliate  of any such other Lender which is at least 50%
owned by such other Lender or its parent  company  (provided  that any fund that
invests in loans and is managed  or  advised by the same  investment  advisor of
another fund which is a Lender (or by an affiliate of such  investment  advisor)
shall be treated as an  affiliate  of such other Lender for the purposes of this
sub-clause  (x)(i)(B)),  or (ii) in the case of any  Lender  that is a fund that
invests in loans, any other fund that invests in loans and is managed or advised
by the  same  investment  advisor  of any  Lender  or by an  affiliate  of  such
investment advisor or (y) assign all, or if less than all, a portion equal to at
least $1,000,000 in the aggregate for the assigning Lender or assigning Lenders,
of such Commitments and related outstanding  Obligations (or, if the Commitments
with respect to the relevant Tranche have terminated,  outstanding  Obligations)
hereunder to one or more Eligible Transferees (treating any fund that invests in
loans and any other fund that  invests in loans and is managed or advised by the
same  investment  advisor  of such fund or by an  Affiliate  of such  investment
advisor as a single Eligible Transferee), each of which assignees shall become a
party to this Agreement as a Lender by execution of an Assignment and Assumption
Agreement,  provided that (i) at such time,  Schedule I shall be deemed modified
to reflect the Commitments and/or outstanding Loans, as the case may be, of such
new Lender and of the existing Lenders,  (ii) upon the surrender of the relevant
Notes by the assigning Lender (or, upon such assigning Lender's indemnifying the
respective  Borrower  or  Borrowers  for any lost Note  pursuant  to a customary
indemnification  agreement) new Notes will be issued, at the Borrowers' expense,
to such new  Lender and to the  assigning  Lender  upon the  request of such new
Lender  or  assigning  Lender,  such  new  Notes  to be in  conformity  with the
requirements  of Section  1.05 (with  appropriate  modifications)  to the extent
needed to reflect the revised  Commitments and/or outstanding Loans, as the case
may be,  (iii) the consent of the  Administrative  Agent and, in the case of any
assignment of Revolving Loan Commitments and so long as no Specified  Default or
Event of Default  exists,  the  consent  of Silgan  each  shall be  required  in
connection with any such assignment  pursuant to clause (y) above (each of which
consents shall not be unreasonably withheld or delayed), (iv) the Administrative
Agent shall receive at the time of each such  assignment,  from the assigning or
assignee Lender,  the payment of a non-refundable  assignment fee of $3,500, and
(v) no such  transfer or  assignment  will be  effective  until  recorded by the
Administrative  Agent in the Register  pursuant to Section 12.16. At the time of
each  assignment  pursuant to this  Section  12.04(b)  to a Person  which is not
already a Lender hereunder and which is not a United States person (as such term
is defined in Section  7701(a)(30) of the Code) for Federal income tax purposes,
the  respective   assignee  Lender  shall  provide  to  the  Borrowers  and  the
Administrative Agent the appropriate Internal Revenue Service

                                     -141-
<PAGE>

Forms (and,  if  applicable,  a Section  4.04(b)(ii)  Certificate)  described in
Section  4.04(b).  To the  extent of any  assignment  pursuant  to this  Section
12.04(b),  the assigning  Lender shall be relieved of its obligations  hereunder
with respect to its assigned  Commitments and  outstanding  Loans. To the extent
that an assignment of all or any portion of a Lender's  Commitments  and related
outstanding Obligations pursuant to Section 1.13 or this Section 12.04(b) would,
at the time of such  assignment,  result in increased  costs under Section 1.10,
1.11, 2.06 or 4.04 from those being charged by the respective  assigning  Lender
prior to such assignment,  then the Borrowers shall not be obligated to pay such
increased  costs  (although  the  Borrowers  shall be obligated to pay any other
increased  costs of the type  described  above  resulting from changes after the
date of the respective assignment).

          (c) Nothing in this  Agreement  shall  prevent or prohibit  any Lender
from pledging its Loans and Notes hereunder to a Federal Reserve Bank in support
of borrowings made by such Lender from such Federal Reserve Bank and, with prior
notification  to the  Administrative  Agent  (but  without  the  consent  of the
Administrative Agent or any Borrower), any Lender which is a fund may pledge all
or  any  portion  of  its  Loans  and  Notes  to its  trustee  or to  any  other
representative of holders of obligations owed or securities issued by such fund,
in each case as security for such obligations or securities;  provided, however,
that (i) any  foreclosure  or similar  action by such trustee or  representative
shall be subject to the provisions of this Section 12.04 concerning  assignments
and (ii) no pledge  pursuant  to this clause (c) shall  release  the  transferor
Lender from any of its obligations hereunder.

          12.05 No Waiver; Remedies Cumulative.  No failure or delay on the part
of the  Administrative  Agent,  any other Agent or any Lender or any holder of a
Note in exercising  any right,  power or privilege  hereunder or under any other
Credit  Document  and  no  course  of  dealing  between  any  Borrower  and  the
Administrative  Agent,  any other  Agent or any Lender or the holder of any Note
shall operate as a waiver thereof;  nor shall any single or partial  exercise of
any right,  power or  privilege  hereunder  or under any other  Credit  Document
preclude  any other or further  exercise  thereof or the  exercise  of any other
right,  power or  privilege  hereunder  or  thereunder.  The rights,  powers and
remedies  herein  and  in any  other  Credit  Document  expressly  provided  are
cumulative  and not  exclusive  of any  rights,  powers  or  remedies  which the
Administrative  Agent,  any other  Agent,  any  Lender or the holder of any Note
would  otherwise  have. No notice to or demand on any Borrower in any case shall
entitle  any  Borrower  to any other or  further  notice or demand in similar or
other  circumstances or constitute a waiver of the rights of the  Administrative
Agent,  any other  Agent,  any  Lender or the holder of any Note to any other or
further action in any circumstances without notice or demand.

          12.06  Payments  Pro Rata.  (a) Except as  otherwise  provided in this
Agreement,  the  Administrative  Agent agrees that promptly after its receipt of
each payment from or on behalf of any Borrower in respect of any  Obligations of
such Borrower hereunder,  the Administrative Agent shall distribute such payment
to the Lenders  entitled  thereto  (other than any Lender that has  consented in
writing  to waive its pro rata  share of any such  payment)  pro rata based upon
their respective  shares,  if any, of the Obligations with respect to which such
payment was received.

          (b) Each of the Lenders  agrees that, if it should  receive any amount
hereunder  (whether by voluntary payment,  by realization upon security,  by the
exercise of the right of

                                     -142-
<PAGE>

setoff or banker's lien, by counterclaim or cross action,  by the enforcement of
any right under the Credit Documents, or otherwise),  which is applicable to the
payment of the  principal  of, or interest on, the Loans,  the Unpaid  Drawings,
Commitment  Commission  or Letter of Credit Fees, of a sum which with respect to
the related sum or sums  received  by other  Lenders is in a greater  proportion
than the total of such  Obligation then owed and due to such Lender bears to the
total of such Obligation then owed and due to all such Lenders immediately prior
to such receipt,  then such Lender  receiving such excess payment shall purchase
for cash without  recourse or warranty from the other Lenders an interest in the
Obligations of such Borrower to such Lenders in such amount as shall result in a
proportional  participation by all of the Lenders in such amount;  provided that
if all or any portion of such excess  amount is thereafter  recovered  from such
Lender,  such purchase shall be rescinded and the purchase price restored to the
extent of such recovery, but without interest.

          (c)  Notwithstanding  anything to the contrary  contained herein,  the
provisions  of the preceding  Sections  12.06(a) and (b) shall be subject to the
express  provisions  of this  Agreement  which  require,  or  permit,  differing
payments to be made to Non-Defaulting Lenders as opposed to Defaulting Lenders.

          12.07 Calculations:  Computations.  (a) The financial statements to be
furnished  to the  Lenders  pursuant  hereto  shall  be  made  and  prepared  in
accordance with accounting  principles  generally  accepted in the United States
consistently applied throughout the periods involved (except as set forth in the
notes  thereto or as otherwise  disclosed in writing by Silgan to the  Lenders);
provided  that,  except  as  otherwise  specifically  provided  herein,  (i) all
computations  determining  compliance  with  Section  4.02,  Section  8 and  the
definitions of Applicable Commitment Commission Percentage and Applicable Margin
shall utilize  accounting  principles and policies in conformity with those used
to prepare the audited historical  financial  statements  referred to in Section
6.07(a), (ii) in determining Interest Expense for any period, no effect shall be
given (but only to the extent not already otherwise excluded for the calculation
of Interest  Expense  under this  Agreement)  to non-cash  amounts  recorded (or
required  to be  recorded)  in accord with FAS 133,  and (iii) all  computations
determining  compliance  with  Sections  8.08 and 8.09  and the  definitions  of
Applicable  Commitment  Commission  Percentage  and  Applicable  Margin shall be
determined on a Pro Forma Basis; provided further that (i) in determining EBITDA
for any  period,  no effect  shall be given (but only to the extent not  already
otherwise  excluded from the  calculation of EBITDA under this Agreement) (I) to
FAS 106,  (II) to non-cash  amounts  recorded  (or  required to be  recorded) in
accordance  with FAS 133 or (III) to any  unusual  charges  (including,  without
limitation,  rationalization  charges) to the extent  that cash is not  expended
during such period,  but effect shall be given (and shall reduce  EBITDA) in any
future  period to the  extent  that any cash  payment  is made on  account  of a
non-cash  unusual  charge taken in a previous  period,  and (ii) for purposes of
calculating  the Applicable  Commitment  Commission  Percentage,  the Applicable
Margin and all financial ratios and financial  terms,  the financial  results of
Unrestricted Subsidiaries shall be ignored.

          (b) All computations of interest, Commitment Commission and other Fees
hereunder shall be made on the basis of a year of 360 days for the actual number
of days  (including the first day but excluding the last day; except that in the
case of Letter of Credit Fees and Facing  Fees,  the last day shall be included)
occurring in the period for which such interest,  Commitment Commission or other
Fees are payable, provided that all computations of interest

                                     -143-
<PAGE>

on Alternate  Currency Loans denominated in Pounds Sterling shall be made on the
basis of a year of 365 days for the actual number of days  (including  the first
day but excluding the last day)  occurring in the period for which such interest
is payable.

          (c)  Notwithstanding  anything to the contrary contained in clause (a)
of  this  Section  12.07,  for  purposes  of  determining  compliance  with  any
incurrence  tests set forth in Section 8 (excluding  Sections  8.08 and 8.09 and
the  definitions  of Applicable  Commitment  Commission  Percentage,  Applicable
Margin and Consolidated  Tangible  Assets),  any amounts so incurred or expended
(to the extent  incurred or expended in a currency  other than Dollars) shall be
converted into Dollars on the basis of the relevant  exchange rates (as shown on
the relevant  page of Reuters or (x) if Reuters  does not provide such  exchange
rates,  as shown on the relevant  page of the Wall Street  Journal or (y) if the
Wall Street Journal does not provide such exchange rates, on such other basis as
is  satisfactory to the  Administrative  Agent) as in effect on the date of such
incurrence  or  expenditure  under any provision of any such Section that has an
aggregate Dollar limitation provided for therein.

          12.08  GOVERNING  LAW;  SUBMISSION TO  JURISDICTION;  VENUE.  (A) THIS
AGREEMENT AND THE OTHER CREDIT  DOCUMENTS AND THE RIGHTS AND  OBLIGATIONS OF THE
PARTIES  HEREUNDER AND THEREUNDER  SHALL BE CONSTRUED IN ACCORDANCE  WITH AND BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT  REGARD TO ITS CONFLICTS OF
LAWS  PRINCIPLES.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER  CREDIT  DOCUMENT  MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW
YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE
WHICH ARE LOCATED IN THE COUNTY OF NEW YORK,  AND, BY EXECUTION  AND DELIVERY OF
THIS  AGREEMENT,  EACH  BORROWER  HEREBY  IRREVOCABLY  ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,  THE JURISDICTION OF THE
AFORESAID COURTS. EACH BORROWER HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT
ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH BORROWER, AND AGREES NOT TO
PLEAD OR CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER CREDIT DOCUMENTS  BROUGHT IN ANY OF THE  AFOREMENTIONED  COURTS,  THAT
SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH BORROWER. EACH BORROWER FURTHER
IRREVOCABLY  CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH  ACTION OR  PROCEEDING  BY THE  MAILING OF COPIES  THEREOF BY
REGISTERED OR CERTIFIED MAIL,  POSTAGE PREPAID,  TO SUCH BORROWER AT ITS ADDRESS
SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS
AFTER SUCH MAILING.  EACH BORROWER  HEREBY  IRREVOCABLY  WAIVES ANY OBJECTION TO
SUCH SERVICE OF PROCESS AND FURTHER  IRREVOCABLY  WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY  ACTION OR  PROCEEDING  COMMENCED  HEREUNDER  OR UNDER ANY OTHER
CREDIT  DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR  INEFFECTIVE.
WITHOUT  LIMITING  THE  FOREGOING,  EACH  FOREIGN  BORROWER  HEREBY  IRREVOCABLY
DESIGNATES,  APPOINTS AND EMPOWERS SILGAN (AND SILGAN HEREBY IRREVOCABLY ACCEPTS
SUCH

                                     -144-
<PAGE>

APPOINTMENT)  AS ITS  DESIGNEE,  APPOINTEE  AND  AGENT TO  RECEIVE,  ACCEPT  AND
ACKNOWLEDGE  FOR AND ON ITS BEHALF,  AND IN RESPECT OF THE PROPERTY OF EACH SUCH
FOREIGN  BORROWER,  SERVICE OF ANY AND ALL LEGAL PROCESS,  SUMMONS,  NOTICES AND
DOCUMENTS  WHICH MAY BE SERVED IN ANY SUCH ACTION OR PROCEEDING.  NOTHING HEREIN
SHALL  AFFECT  THE  RIGHT OF THE  ADMINISTRATIVE  AGENT OR ANY  LENDER  TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR
OTHERWISE PROCEED AGAINST ANY BORROWER IN ANY OTHER JURISDICTION.

          (B) EACH BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID  ACTIONS OR
PROCEEDINGS  ARISING OUT OF OR IN  CONNECTION  WITH THIS  AGREEMENT OR ANY OTHER
CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (A) ABOVE AND HEREBY
FURTHER  IRREVOCABLY  WAIVES  AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM.

          (C) EACH OF THE PARTIES TO THIS AGREEMENT  HEREBY  IRREVOCABLY  WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,  PROCEEDING OR COUNTERCLAIM  ARISING
OUT OF OR  RELATING  TO  THIS  AGREEMENT,  THE  OTHER  CREDIT  DOCUMENTS  OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          12.09  Counterparts.  This  Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts,  each
of which when so executed and delivered  shall be an original,  but all of which
shall together  constitute one and the same  instrument.  A set of  counterparts
executed by all the parties  hereto shall be lodged with the  Borrowers  and the
Administrative Agent.

          12.10 Effectiveness. This Agreement shall become effective on the date
(the "Effective Date") on which each of the Borrowers,  the Administrative Agent
and the Lenders  shall have signed a  counterpart  hereof  (whether  the same or
different  counterparts) and shall have delivered the same to the Administrative
Agent at the applicable Notice Office or, in the case of the Lenders, shall have
given to the Administrative Agent telephonic (confirmed in writing),  written or
telex  notice  (actually  received) at such office that the same has been signed
and mailed to it. The  Administrative  Agent  will give each  Borrower  and each
Lender prompt written notice of the occurrence of the Effective Date.

          12.11 Headings  Descriptive.  The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Agreement.

          12.12  Amendment and Waiver.  (a) Neither this Agreement nor any other
Credit  Document  nor any  terms  hereof  or  thereof  may be  changed,  waived,
discharged or terminated

                                     -145-
<PAGE>

unless such change, waiver, discharge or termination is in writing signed by the
Borrowers  and  the  Required  Lenders   (although  (i)   modifications  to,  or
supplements of, the Annexes to the respective  Security Documents may be made in
accordance  with the provisions of such Security  Documents and (ii)  additional
parties may be added to, and  Subsidiaries  of Silgan may be released  from, the
respective  Guaranties  and  the  Security  Documents  in  accordance  with  the
provisions thereof, in each case without the consent of the other Credit Parties
party thereto or the Required  Lenders),  provided that no such change,  waiver,
discharge or termination shall, without the consent of each Lender (other than a
Defaulting Lender) (with Obligations being directly affected thereby in the case
of the following clauses (i) and (vi)), (i) extend the final scheduled  maturity
of any Loan or Note or extend the stated maturity of any Letter of Credit or the
Total  Revolving  Loan  Commitment  beyond the Revolving  Loan Maturity Date, or
reduce the rate,  or extend the time of payment,  of interest or of Fees thereon
(except in  connection  with the  waiver of  applicability  of any  post-default
increase in interest rates),  or reduce the principal amount thereof  (including
the  principal  amount of any  Unpaid  Drawing)  (it being  understood  that any
amendment or modification  to the financial  definitions in this Agreement or to
Section  12.07(a)  shall not  constitute  a reduction in the rate of interest or
Fees for the  purposes of this clause  (i),  notwithstanding  the fact that such
amendment or modification  actually  results in such a reduction),  (ii) release
all or substantially all of the Collateral  (except as expressly provided in the
Credit  Documents  (x) in connection  with the  termination  of all  Commitments
hereunder and repayment in full of all  Obligations  owing  pursuant  hereto and
pursuant to the other  Credit  Documents  and (y) with respect to sales or other
dispositions of property  otherwise  permitted under the Credit Documents) under
all the Security  Documents,  (iii) amend, modify or waive any provision of this
Section  12.12 (a) (except for technical  amendments  with respect to additional
extensions of credit  pursuant to this Agreement which afford the protections to
such additional  extensions of credit of the type provided to the Term Loans and
the  Revolving  Loan  Commitments  on  the  Effective  Date),  (iv)  reduce  the
percentage  specified in the definition of Required Lenders (it being understood
that, with the consent of the Required Lenders,  additional extensions of credit
pursuant to this Agreement may be included in the  determination of the Required
Lenders  on  substantially  the same basis as the  extensions  of Term Loans and
Revolving Loan  Commitments are included on the Effective  Date), (v) consent to
the assignment or transfer by any Borrower of any of its rights and  obligations
under this Agreement, (vi) amend, modify or waive (x) any provisions in Sections
1.01(a),  1.01(b),  1.01(c), 1.01(d), 1.01(f), 1.04, 1.16, 2.04 and 11.06 to the
extent  providing  for  Loans  to  be  made,   participations  to  be  acquired,
reimbursement  payments  to be made and/or  indemnity  payments to be made other
than ratably by the Lenders or Lenders of the  respective  Tranche,  as the case
may  be,  or (y)  except  as  otherwise  provided  for in  this  Agreement,  any
provisions in Section 12.06 to the extent  providing for payments to be made to,
or shared in,  other than  ratably by the  Lenders or Lenders of the  respective
Tranche,  as the case may be (it being  understood that, with the consent of the
Required Lenders, additional extensions of credit pursuant to this Agreement may
be  included in  determining  any ratable  share  pursuant to any such  Sections
referred to in this clause (vi) and  adjustments to any such Section may be made
consistent  therewith),  or (vii) consent to the release of Silgan,  Containers,
Manufacturing    or    Plastics    from   its    obligations    under   the   US
Borrowers/Subsidiaries Guaranty except, in the case of Containers, Manufacturing
or Plastics, in connection with a sale of all or substantially all of the assets
of, or all of the capital stock of,  Containers,  Manufacturing or Plastics in a
transaction  permitted  under this  Agreement  or that has been  approved by the
Required Lenders; provided further, that no such change, waiver, discharge

                                     -146-
<PAGE>

or termination shall (t) (A) with respect to any required voluntary or mandatory
Commitment  reduction for any Tranche of Loans under Section 3.02(a) or 3.03(g),
effect a non-pro  rata  reduction  of any such  Commitments  of any Lender which
would result in any such Lender  receiving  less than its pro rata share thereof
without the consent of such Lender or (B) increase the Commitments of any Lender
over the amount  thereof  then in effect  without the consent of such Lender (it
being  understood  that  waivers  or  modifications  of  conditions   precedent,
covenants,  Defaults  or Events of Default or of a  mandatory  reduction  in the
Total  Commitment  shall not  constitute  an increase of the  Commitment  of any
Lender,  and that an increase in the available  portion of any Commitment of any
Lender shall not constitute an increase in the  Commitment of such Lender),  (u)
without the consent of the  Swingline  Lender,  alter its rights or  obligations
with respect to Swingline  Loans, (v) without the consent of each Issuing Lender
amend,  modify  or waive any  provision  of  Section  2 or alter  its  rights or
obligations  with  respect to Letters of Credit,  (w) without the consent of the
Administrative Agent, amend, modify or waive any provision of Section 11 as same
applies to the  Administrative  Agent or any other  provision as same relates to
the rights or obligations of the  Administrative  Agent, (x) without the consent
of the Collateral Agent,  amend,  modify or waive any provision  relating to the
rights or obligations of the  Collateral  Agent,  (y) (A) without the consent of
the  Majority  Lenders  of each  Tranche  which  is  being  allocated  a  lesser
prepayment,  repayment  or  commitment  reduction  as a  result  of the  actions
described below (or without the consent of the Majority  Lenders of each Tranche
in the case of an amendment to the  definition of Majority  Lenders),  amend the
definition  of  Majority  Lenders  or  alter  the  required  application  of any
prepayments  or repayments  (or  commitment  reduction),  as between the various
Tranches,  pursuant to Section 4.01 or 4.02 (excluding  Section 4.02(b),  (c) or
(d))  (although the Required  Lenders may waive,  in whole or in part,  any such
prepayment,  repayment or commitment reduction, so long, as the application,  as
amongst the various  Tranches,  of any such prepayment,  repayment or commitment
reduction  which is still required to be made is not altered) or (B) without the
consent of the  Majority  Lenders of each  Tranche,  amend,  modify or waive the
definition  of Sharing  Event or the  provisions of Section 1.16 (other than for
technical  amendments or modifications  thereto that do not otherwise  adversely
affect the Lenders under any Tranche of Loans in a manner  disproportionate from
the effect on the Lenders under the other  Tranches of Loans) or (z) without the
consent  of the  Supermajority  Lenders  of the  respective  Tranche,  amend the
definition of Supermajority  Lenders (it being understood that, with the consent
of the  Required  Lenders,  additional  extensions  of credit  pursuant  to this
Agreement may be included in the  determination of the  Supermajority  Lender on
substantially  the same basis as the extensions of Term Loans and Revolving Loan
Commitments  are  included  on the  Effective  Date) or reduce the amount of, or
shorten or extend,  any  interim A Term Loan  Scheduled  Repayment,  B Term Loan
Scheduled  Repayment or Incremental Term Loan Scheduled  Repayment,  as the case
may be.

          (b) If, in connection with any proposed change,  waiver,  discharge or
termination  to any of the  provisions  of this  Agreement  as  contemplated  by
clauses (i) through (vii),  inclusive, of the first proviso to Section 12.12(a),
the consent of the  Required  Lenders is obtained but the consent of one or more
of the other  Lenders  whose  consent is required is not  obtained,  then Silgan
shall have the right,  so long as all  non-consenting  Lenders whose  individual
consent is required are treated as described in either  clause (A) or (B) below,
to either (A) replace  each such  non-consenting  Lender or Lenders  (or, at the
option of Silgan if the respective  Lender's consent is required with respect to
less than all  Tranches of Loans (or related  Commitments),  to replace only the
respective Tranche of Commitments and/or Loans of the respective non-

                                     -147-
<PAGE>

consenting Lender which gave rise to the need to obtain such Lender's individual
consent) with one or more  Replacement  Lenders pursuant to Section 1.13 so long
as at the time of such replacement, each such Replacement Lender consents to the
proposed  change,  waiver,  discharge  or  termination  or  (B)  terminate  such
non-consenting  Lender's  Revolving Loan Commitment and/or Incremental Term Loan
Commitment  (if such  Lender's  consent is required as a result of its Revolving
Loan  Commitment  and/or  Incremental  Term Loan  Commitment)  and/or repay each
Tranche  of  outstanding  Loans of such  Lender  which  gave rise to the need to
obtain  such  Lender's  consent  and/or cash  collateralize  its  applicable  RL
Percentage of the Letter of Credit of Outstandings,  in accordance with Sections
3.02(b)  and/or  4.01(b),  provided  that,  unless  the  Commitments  which  are
terminated  and Loans  which are repaid  pursuant  to  preceding  clause (B) are
immediately replaced in full at such time through the addition of new Lenders or
the increase of the Commitments  and/or  outstanding  Loans of existing  Lenders
(who in each case must specifically  consent  thereto),  then in the case of any
action pursuant to preceding clause (B) the Required Lenders  (determined  after
giving  effect to the  proposed  action)  shall  specifically  consent  thereto,
provided  further,  that  Silgan  shall not have the right to  replace a Lender,
terminate its  Commitments or repay its Loans solely as a result of the exercise
of such Lender's  rights (and the  withholding  of any required  consent by such
Lender) pursuant to the second proviso to Section 12.12(a).

          12.13 Survival.  All indemnities set forth herein  including,  without
limitation,  in Sections 1.10,  1.11,  2.06, 4.04, 11.06 and 12.01 shall survive
the  execution  and delivery of this  Agreement and the Notes and the making and
repayment of the Loans and all Unpaid Drawings  hereunder and the termination of
the Commitments.

          12.14 Domicile of Loans.  Each Lender may transfer and carry its Loans
at, to or for the account of any office, Subsidiary or Affiliate of such Lender.
Notwithstanding  anything to the contrary contained herein, to the extent that a
transfer of Loans  pursuant to this  Section  12.14  would,  at the time of such
transfer,  result in increased costs under Section 1.10, 1.11, 2.06 or 4.04 from
those being charged by the  respective  Lender prior to such  transfer,  then no
Borrower shall be obligated to pay such increased  costs (although each Borrower
shall be obligated to pay any other  increased costs of the type described above
resulting from changes after the date of the respective transfer).

          12.15 Confidentiality.  (a) Subject to the provisions of clause (b) of
this Section  12.15,  each Lender  agrees that it will not disclose  without the
prior consent of Silgan (other than on a  confidential  basis to its  employees,
partners, directors,  officers, auditors or counsel or to another Lender or such
Lender's  holding  or  parent  company  if such  Lender  determines  in its sole
discretion  that any such party  should  have  access to such  information)  any
information with respect to Silgan or any of its Subsidiaries which is now or in
the future furnished pursuant to this Agreement or any other Credit Document and
which is either (x) financial information or statements or (y) designated by any
Borrower to the Lender in writing as confidential,  provided that any Lender may
disclose  any such  information  (i) as has become  generally  available  to the
public, (ii) as may be required in any report,  statement or testimony submitted
to any municipal,  state or Federal  regulatory  body having or claiming to have
jurisdiction  over such  Lender or to the  Federal  Reserve  Board,  the Federal
Deposit Insurance Corporation or the NAIC or similar  organizations  (whether in
the United States or elsewhere) or their successors, (iii) as may be required in
respect to any summons or subpoena or in connection with any litigation, (iv) in

                                     -148-
<PAGE>

order to comply with any law,  order,  regulation  or ruling  applicable to such
Lender,  (v) that is already in possession of such Lender on a  non-confidential
basis,  (vi) that is provided to such  Lender on a  non-confidential  basis by a
Person who in doing so has not violated a duty of  confidentiality  owing to any
Lender or to Silgan or any of its  Subsidiaries  and (vii) to any prospective or
actual transferee or participant in connection with any contemplated transfer or
participation  of any of the Obligations or Commitments or any interest  therein
by such Lender,  provided that such prospective  transferee (x) agrees with such
Lender,  to maintain the  confidentiality  provisions  contained in this Section
12.15 or (y) is a direct or indirect contractual counterparty in swap agreements
or  such  contractual  counterparty's  professional  advisor  so  long  as  such
contractual   counterparty   or   professional   advisor  to  such   contractual
counterparty agrees in writing to keep such information confidential to the same
extent required of the Lender hereunder.

          (b) Each Borrower hereby  acknowledges and agrees that each Lender may
share with any of its Affiliates (including, in the case of any Lender that is a
fund, such Lender's investment advisor) any information related to Silgan or any
of its  Subsidiaries  (including,  without  limitation,  any nonpublic  customer
information  regarding  the  creditworthiness  of Silgan  and its  Subsidiaries,
provided that such affiliates shall be subject to the provision of clause (a) of
this Section 12.15 to the same extent as such Lender).

          12.16  Register.  Each Borrower hereby  designates the  Administrative
Agent to serve as such  Borrower's  agent,  solely for  purposes of this Section
12.16, to maintain a register (the "Register') on which it will record the name,
address and taxpayer  identification number, if any, of each of the Lenders, the
Commitments from time to time of each of the Lenders,  the Loans made by each of
the Lenders and each  repayment in respect of the principal  amount of the Loans
of each of the Lenders.  Failure to make any such  recordation,  or any error in
such  recordation,  shall not affect such  Borrower's  obligations in respect of
such Loans.  With respect to any Lender,  the transfer of the Commitment of such
Lender  and the  rights to the  principal  of,  and  interest  on, any Loan made
pursuant  to such  Commitment  shall not be  effective  until such  transfer  is
recorded on the Register maintained by the Administrative  Agent with respect to
ownership of such Commitment and Loans and prior to such recordation all amounts
owing to the transferor  with respect to such  Commitment and Loans shall remain
owing to the  transferor.  The  registration of assignment or transfer of all or
part of any Commitment and Loan shall be recorded by the Administrative Agent on
the Register only upon the acceptance by the Administrative  Agent of a properly
executed and delivered  Assignment and Assumption  Agreement pursuant to Section
12.04(b).  Coincident  with the delivery of such an  Assignment  and  Assumption
Agreement  to the  Administrative  Agent  for  acceptance  and  registration  of
assignment  or  transfer  of all or  part of a Loan,  or as soon  thereafter  as
practicable,  the  assigning or transferor  Lender shall  surrender the Note (if
any)  evidencing  such  Loan,  and  thereupon  one or more new Notes in the same
aggregate principal amount shall be issued to the assigning or transferor Lender
and/or the new Lender at the request of any such Lenders.  Each Borrower  agrees
to  indemnify  the  Administrative  Agent from and  against  any and all losses,
claims,  damages and  liabilities of whatsoever  nature which may be imposed on,
asserted  against or  incurred by the  Administrative  Agent in  performing  its
duties under this Section  12.16,  provided that no Borrower shall be liable for
any portion of such losses,  claims,  damages and liabilities resulting from the
Administrative  Agent's gross negligence or willful misconduct (as determined by
a court of competent jurisdiction in a final and non-appealable decision).

                                     -149-
<PAGE>

          12.17   Certain   Agreements   with  Respect  to  the  6/3-4%   Senior
Subordinated  Debentures.  The Borrowers covenant and agree that they will take,
and will cause each of their  Subsidiaries  to take,  all such actions as may be
necessary so as to ensure that all  Indebtedness  incurred  under this Agreement
and the  other  Credit  Documents  (other  than any  portion  of the Term  Loans
incurred  hereunder  which  is  justified  as being  incurred  under  the  first
paragraph  of  Section  4.03(a)  of the  6-3/4%  Senior  Subordinated  Debenture
Indenture)  will  always be  permitted  to be incurred  under  clause (i) of the
second paragraph of Section 4.03(a) of the 6-3/4% Senior Subordinated  Debenture
Indenture   without  relying  on  any  other  provision  of  the  6-3/4%  Senior
Subordinated Debenture Indenture.

          12.18 Limitation on Additional Amounts, etc.  Notwithstanding anything
to the contrary  contained in Sections 1.10, 1.11 or 2.06, unless a Lender gives
notice to Silgan that Silgan or another  Borrower is  obligated to pay an amount
under  any such  Section  within  135 days  after the later of (x) the date such
Lender  incurs the  respective  increased  costs,  loss,  expense or  liability,
reduction in amounts received or receivable or reduction in return on capital or
(y)  the  date  such  Lender  has  actual  knowledge  of its  incurrence  of the
respective  increased costs, loss,  expense or liability,  reductions in amounts
received or receivable or reduction in return on capital, then such Lender shall
only be entitled to be compensated for such amount by the Borrowers  pursuant to
said  Section  1.10,  1.11 or  2.06,  as the  case  may be,  to the  extent  the
respective  increased costs,  loss,  expense or liability,  reduction in amounts
received  or  receivable  or  reduction  in return on capital  are  incurred  or
suffered on or after the date which occurs 135 days prior to such Lender  giving
notice to Silgan  that  Silgan  or  another  Borrower  is  obligated  to pay the
respective  amounts pursuant to said Section 1.10, 1.11 or 2.06, as the case may
be; provided however,  that if the circumstances giving rise to such claims have
a  retroactive  effect,  such 135 day period  shall be  extended  to include the
period  of  such   retroactive   effect.   This  Section  12.18  shall  have  no
applicability  to any Section of this  Agreement  other than said Sections 1.10,
1.11 or 2.06.

          12.19 The  Patriot  Act.  Each  Lender  subject to the USA PATRIOT ACT
(Title III of Pub. L. 107-56  (signed into law October 26,  2001)) (the "Patriot
Act")  hereby  notifies  Silgan and each other  Borrower  that  pursuant  to the
requirements  of the Patriot  Act,  it is required to obtain,  verify and record
information  that  identifies  Silgan  and the other  Credit  Parties  and other
information  that will allow such Lender to identify Silgan and the other Credit
Parties in accordance with the Patriot Act.

          12.20 Campbell Standstill Period/Campbell  Repurchase. (a) Each of the
Lenders  hereby  expressly  acknowledges  and  agrees  for the sole  benefit  of
Campbell  Soup  that (i) the  Administrative  Agent  shall be  required  to give
Campbell Soup 30 days' prior written notice of the Lenders' decision to exercise
any remedies against CanCo or CanCo Holding that may be available to the Lenders
under the Credit  Documents  upon the occurrence of an Event of Default and (ii)
neither  the  Administrative  Agent  nor the  Lenders  shall  exercise  any such
remedies  against  CanCo or CanCo  Holding  until the  expiration of such 30 day
period; it being expressly understood and agreed,  however,  that (x) nothing in
this  Section  12.20  shall  prevent  either  (A)  the  Total  Commitment  being
automatically  terminated and all  Obligations  becoming  automatically  due and
payable upon the occurrence of an Event of Default under Section 9.05 or (B) the
termination of the Total  Commitment upon the occurrence of an Event of Default,
(y) the 30 day  standstill  period  referred to above in the case of an Event of
Default under Section 9.05

                                     -150-
<PAGE>

shall  commence  upon the  occurrence  of such Event of Default and no notice to
Campbell Soup shall be required and (z) the provisions of this Section  12.20(a)
shall not apply to any Credit Party other than CanCo and CanCo Holding.  Each of
the Lenders and each of the Borrowers  hereby  acknowledges  and agrees that the
provisions  of this Section  12.20(a) are for the sole benefit of Campbell  Soup
(and may not be amended, modified or waived without the prior written consent of
Campbell  Soup) and that  Campbell  Soup shall be (and is hereby) a third  party
beneficiary of such provisions;  it being understood and agreed,  however,  that
the provisions of this Section  12.20(a) shall not affect any of the obligations
that the  Borrowers or any other  Credit Party may have under this  Agreement or
any other Credit Document to which they are a party.

          (b)  Notwithstanding  anything  to  the  contrary  contained  in  this
Agreement,  upon the  occurrence  of a Triggering  Event,  (i) the sale or other
disposition  (including  by way of  foreclosure  or  other  purchase  under  the
Campbell  Can Pledge  Agreement)  of all,  but not less than all, of the capital
stock or assets of CanCo shall be permitted in accordance  with the terms of the
respective  Campbell  Can  Acquisition  Documents so long as at the time of such
sale  or  other   disposition,   Campbell  Soup  has  repaid   directly  to  the
Administrative  Agent all  outstanding  Obligations of CanCo (other than accrued
Fees which shall be repaid by Containers or any other Borrower other than CanCo)
up to the CanCo Permitted Debt Amount at such time and in connection  therewith,
the  assets so sold to  Campbell  Soup shall be sold free and clear of the Liens
created by the respective  Security  Documents,  it being understood that if the
respective sale is of all of the capital stock of CanCo, CanCo shall be released
of any  further  liabilities  in  respect  of  any  Obligations  incurred  by it
(although  such other  Obligations  shall not be  extinguished  and shall remain
outstanding and the other Credit Parties shall remain fully obligated in respect
of all such  Obligations  under the  Borrowers/Subsidiaries  Guaranty)  and (ii)
Silgan shall  promptly  give the  Administrative  Agent  written  notice of such
Triggering  Event.  Each  of  the  Lenders  and  each  of the  Borrowers  hereby
acknowledges and agrees that the provisions of this Section 12.20(b) are for the
sole  benefit  of  Campbell  Soup (and may not be  amended,  modified  or waived
without the prior written  consent of Campbell Soup;  although the provisions of
this  Section  12.20(b)  are also for the benefit of (and  binding  against) the
Borrowers  and all the other  Credit  Parties to the extent  necessary to enable
them to effect such sale or other disposition and cause the release of the Liens
on the  respective  assets)  and that  Campbell  Soup shall be (and is hereby) a
third party beneficiary of this Section 12.20(b).

          (c)  Notwithstanding  anything  to  the  contrary  contained  in  this
Agreement,  in no event shall  Section  7.12 or  8.14(c)(2)  or any of the terms
thereof be changed,  waived,  discharged or terminated without the prior written
consent of Campbell Soup.

          12.21 Judgment Currency.  (a) Each Credit Party's obligation hereunder
and under the other Credit  Documents to make payments in Dollars or in the case
of an  Alternate  Currency  Loan  or  Alternate  Currency  Unpaid  Drawing,  the
applicable  Alternate  Currency (in any such case,  the  "Obligation  Currency")
shall not be discharged  or satisfied by any tender or recovery  pursuant to any
judgment  expressed in or converted  into any currency other than the Obligation
Currency,  except to the  extent  that such  tender or  recovery  results in the
effective  receipt  by the  Administrative  Agent,  the  Collateral  Agent,  the
respective  Issuing  Lender or the  respective  Lender of the full amount of the
Obligation  Currency  expressed to be payable to the  Administrative  Agent, the
Collateral Agent, such Issuing Lender or such Lender under this Agreement or the
other Credit Documents. If for the purpose of obtaining or enforcing judgment

                                     -151-
<PAGE>

against  any  Credit  Party in any  court  or in any  jurisdiction,  it  becomes
necessary  to  convert  into or from any  currency  other  than  the  Obligation
Currency  (such other currency  being  hereinafter  referred to as the "Judgment
Currency") an amount due in the Obligation  Currency,  the  conversion  shall be
made,  at  the  Relevant  Currency  Equivalent  thereof  or,  in the  case  of a
conversion into currencies other than Dollars or a Primary  Alternate  Currency,
at  the  rate  of  exchange  quoted  by the  Administrative  Agent  (or,  if the
Administrative  Agent does not quote a rate of exchange on such  currency,  by a
known  dealer  in  such  currency  designated  by  the  Administrative   Agent),
determined,  in each case,  as of the day on which the  judgment  is given (such
Business Day being hereinafter  referred to as the "Judgment Currency Conversion
Date").

          (b) If there is a change in the rate of  exchange  prevailing  between
the  Judgment  Currency  Conversion  Date and the date of actual  payment of the
amount due, the respective  Borrower or Borrowers covenant and agree to pay such
additional  amounts,  if any (but in any  event not a lesser  amount)  as may be
necessary  to  ensure  that  the  amount  paid in the  Judgment  Currency,  when
converted  at the  rate of  exchange  prevailing  on the date of  payment,  will
produce the amount of the  Obligation  Currency  which could have been purchased
with the amount of  Judgment  Currency  stipulated  in the  judgment or judicial
award at the rate of exchange  prevailing  on the Judgment  Currency  Conversion
Date.

          (c) For purposes of determining  the Relevant  Currency  Equivalent or
any other rate of exchange for this Section  12.21,  such amounts  shall include
any premium and costs payable in connection  with the purchase of the Obligation
Currency.

          12.22  Euro.  (a) If at any  time  that  an  Alternate  Currency  Loan
denominated  in a  Currency  other  than  Euros  is  outstanding,  the  relevant
Alternate Currency is replaced as the lawful currency of the country that issued
such Approved Currency (the "Issuing  Country") by the Euro so that all payments
are to be made in the Issuing Country in Euros and not in the Alternate Currency
previously the lawful  currency of such country,  then such  Alternate  Currency
Loan  shall  be  automatically   converted  into  an  Alternate   Currency  Loan
denominated  in Euros in a  principal  amount  equal to the amount of Euros into
which the principal  amount of such  Alternate  Currency Loan would be converted
pursuant to the EMU  Legislation  and thereafter no further  Alternate  Currency
Loans will be available in such Alternate Currency, with the basis of accrual of
interest, notice requirements and payment offices with respect to such converted
Alternate  Currency Loan to be that consistent with the convention and practices
in the Euro-zone interbank market for Euro denominated loans.

          (b) In each case, to the maximum  extent  permitted  under  applicable
law, the  applicable  Borrowers  shall from time to time,  at the request of any
Lender,  pay to such  Lender the  amount of any  losses,  damages,  liabilities,
claims, reduction in yield, additional expense, increased cost, reduction in any
amount payable,  reduction in the effective return of its capital,  the decrease
or delay in the payment of interest or any other  return  forgone by such Lender
or its  affiliates  with respect to an Alternate  Currency Loan affected by this
Section  12.22 as a result of the tax or currency  exchange  resulting  from the
introduction, changeover to or operation of the Euro in any applicable nation or
eurocurrency market.

          12.23  Immunity.  To the  extent  that  any  Foreign  Borrower  has or
hereafter  may acquire any immunity from  jurisdiction  of any court or from any
legal process (whether through

                                     -152-
<PAGE>

service or notice, attachment prior to judgment, attachment in aid of execution,
or otherwise)  with respect to itself or its property,  the  respective  Foreign
Borrower hereby  irrevocably  waives such immunity in respect of its obligations
hereunder  and under the other  Credit  Documents  to which it is a party to the
extent  permitted by applicable law and,  without limiting the generality of the
foregoing,  agrees that the waivers set forth in this Section  12.23 shall be to
the fullest extent permitted under the Foreign Sovereign  Immunities Act of 1976
of the United  States and are  intended to be  irrevocable  for purposes of such
Act.

                                      * * *

                                     -153-
<PAGE>

          IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  their  duly
authorized  officers to execute and deliver this  Agreement as of the date first
above written.

Address:
4 Landmark Square                     SILGAN HOLDINGS INC.
Suite 400
Stamford, CT 06901
Attn:  Treasurer                      By: /s/ Frank W. Hogan, III
Telephone:  (203) 975-7110                -------------------------------------
Fax:  (203) 975-7902                      Title: Senior Vice President, General
                                                 Counsel and Secretary

4 Landmark Square                     SILGAN CONTAINERS CORPORATION
Suite 400                             SILGAN PLASTICS CORPORATION
Stamford, CT 06901                    SILGAN CONTAINERS MANUFACTURING
Attn: Treasurer                          CORPORATION
Telephone:  (203) 975-7110            SILGAN CAN COMPANY
Fax:  (203) 975-7902
                                      By: /s/ Frank W. Hogan, III
                                          -----------------------------------
                                          Title: Vice President and Secretary

                                      DEUTSCHE BANK AG NEW YORK BRANCH,
                                        Individually and as Administrative Agent

                                      By: /s/ Susan LeFevre
                                          ------------------------------------
                                          Title: Director

                                      By: /s/ Evelyn Lazala
                                          ------------------------------------
                                          Title: Vice President

<PAGE>

                                       BANK OF AMERICA, N.A.
                                      By /s/ Colleen M. Briscoe
                                         -------------------------------------
                                         Title: Vice President

                                      MORGAN STANLEY BANK
                                      By /s/ Daniel Twenge
                                         -------------------------------------
                                         Title: Vice President

                                      JPMORGAN CHASE BANK, N.A.
                                      By /s/ D. Scott Farquhar
                                         -------------------------------------
                                         Title: Vice President

                                      BNP PARIBAS
                                      By /s/ Duane Helkowski
                                         -------------------------------------
                                         Title: Managing Director
                                      By /s/ Shayn March
                                         -------------------------------------
                                         Title: Director

                                      THE BANK OF NEW YORK
                                      By /s/ Roger Grossman
                                         -------------------------------------
                                         Title: Vice President

                                      CITIZENS BANK OF MASSACHUSETTS
                                      By /s/ Cindy Chen
                                         -------------------------------------
                                         Title: Vice President

                                      NATIONAL CITY BANK
                                      By /s/ Michael S. Pearl
                                         -------------------------------------
                                         Title: Account Officer

                                      COOPERATIEVE CENTRALE RAIFFEISEN-
                                        BOERENLEENBANK B.A. "RABOBANK
                                        INTERNATIONAL", NEW YORK BRANCH
                                      By /s/ Betty Mills
                                         -------------------------------------
                                         Title: Executive Director
                                      By /s/ Brett Delfino
                                         -------------------------------------
                                         Title: Executive Director

                                      WACHOVIA BANK, N.A.
                                      By /s/ Shawn Janko
                                         -------------------------------------
                                         Title: Vice President

                                      UNITED OVERSEAS BANK LIMITED,
                                        NEW YORK AGENCY
                                      By /s/ Kwong Yew Wong
                                         -------------------------------------
                                         Title: FVP & General Manager
                                      By /s/ Philip Cheong
                                         -------------------------------------
                                         Title: VP & Deputy General Manager

<PAGE>

                                      ALLIED IRISH BANKS, P.L.C.
                                      By /s/ Margaret Brennan
                                         -------------------------------------
                                         Title: Vice President
                                      By /s/ Jospeh S. Augustini
                                         -------------------------------------
                                         Title: Vice President

                                      LASALLE BANK NATIONAL ASSOCIATION
                                      By /s/ Lincoln Schoff
                                         -------------------------------------
                                         Title: Senior Vice President

                                      UNION BANK OF CALIFORNIA, N.A.
                                      By /s/ Matthew R. Krajniak
                                         -------------------------------------
                                         Title: Assistant Vice President

                                      CREDIT INDUSTRIEL ET COMMERCIAL
                                      By /s/ Anthony Rock
                                         -------------------------------------
                                         Title: Vice President
                                      By /s/ Marcus Edward
                                         -------------------------------------
                                         Title: Vice President

                                      GENERAL ELECTRIC CAPITAL CORPORATION
                                      By /s/ Brian Schwinn
                                         -------------------------------------
                                         Title: Duly Authorized Signatory

                                      BANK OF TOKYO-MITSUBISHI TRUST COMPANY
                                      By /s/ Karen A. Brinkman
                                         -------------------------------------
                                         Title: Vice President

                                      COBANK, ACB
                                      By /s/ S. Richard Dill
                                         -------------------------------------
                                         Title: Vice President

                                      COMMERZBANK AG, NEW YORK AND
                                        GRAND CAYMAN BRANCHES
                                      By /s/ Andrew P. Lusk
                                         -------------------------------------
                                         Title: Vice President
                                      By /s/ Barbara Peters
                                         -------------------------------------
                                         Title: Assistant Treasurer

                                      FORTIS CAPITAL CORP.
                                      By /s/ Kathleen de Lathauwer
                                         -------------------------------------
                                         Title: Senior Vice President
                                      By /s/ Trond Rokholt
                                         -------------------------------------
                                         Title: Managing Director

<PAGE>

                                      ING CAPITAL LLC
                                      By /s/ Gil Kirkpatrick
                                         -------------------------------------
                                         Title: Director

                                      MIZUHO CORPORATE BANK, LTD.
                                      By /s/ Robert Gallagher
                                         -------------------------------------
                                         Title: Senior Vice President

                                      NORTH FORK BUSINESS CAPITAL CORPORATION
                                      By /s/ Steve Goetschius
                                         -------------------------------------
                                         Title: Senior Vice President

                                      PEOPLE'S BANK
                                      By /s/ David K. Sherrill
                                         -------------------------------------
                                         Title: Vice President

                                      SOVEREIGN BANK
                                      By /s/ Daniel M. Grondin
                                         -------------------------------------
                                         Title: Senior Vice President

                                      US BANK, N.A.
                                      By /s/ Ward C. Wilson
                                         -------------------------------------
                                         Title: Senior Vice President

                                      BANK LEUMI USA
                                      By /s/ Joung Hee Hong
                                         -------------------------------------
                                         Title: Vice President

                                      UFJ BANK LIMITED
                                      By /s/ Stephen C. Small
                                         -------------------------------------
                                         Title: Senior Vice President & Area
                                                Manager

                                      THE GOVERNOR AND COMPANY OF THE
                                        BANK OF IRELAND
                                      By /s/ Geraldine Kannon
                                         -------------------------------------
                                         Title: Authorised Signatory
                                      By /s/ Mary Connolly
                                         -------------------------------------
                                         Title: Authorised Signatory

                                      ERSTE BANK
                                      By /s/ Brandon A. Meyerson
                                         -------------------------------------
                                         Title: Vice President
                                                Erste Bank New York Branch
                                      By /s/ Bryan J. Lynch
                                         -------------------------------------
                                         Title: First Vice President

<PAGE>

                                      THE NORTHERN TRUST COMPANY
                                      By /s/ Jeffrey B. Clark
                                         -------------------------------------
                                         Title: Senior Vice President

                                      SUMITOMO MITSUI BANKING CORPORATION
                                      By /s/ David A. Buck
                                         -------------------------------------
                                         Title: Senior Vice President

                                      WEBSTER BANK, NATIONAL ASSOCIATION
                                      By /s/ Barbara A. Keegan
                                         -------------------------------------
                                         Title: Vice President

                                      BANK OF CHINA, NEW YORK BRANCH
                                      By /s/ William W. Smith
                                         -------------------------------------
                                         Title: Chief Lending Officer

                                      FIRST INDIANA BANK, N.A.
                                      By /s/ David A. Linville
                                         -------------------------------------
                                         Title: Vice President

                                      THE BANK OF EAST ASIA, LTD.,
                                        NEW YORK BRANCH
                                      By /s/ Stanley H. Kung
                                         -------------------------------------
                                         Title: SVP & Chief Lending Officer
                                      By /s/ Douglas E. Price
                                         -------------------------------------
                                         Title: SVP & Chief Credit Officer

                                      DZ BANK AG-DEUTSCHE
                                        ZENTRALGENOSSENSCHAFTSBANK
                                        (FRANKFURT AM MAIM)
                                      By /s/ Paul Fitzpatrick
                                         -------------------------------------
                                         Title: Vice President
                                      By /s/ James A. Kyprios
                                         -------------------------------------
                                         Title: Vice President

                                      CHANG HWA COMMERCIAL BANK, LTD.,
                                         NEW YORK BRANCH
                                      By /s/ Jim C.Y. Chen
                                         -------------------------------------
                                         Title: VP & General ManagerEXHIBIT 10.2

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                              US SECURITY AGREEMENT

                                      among

                              SILGAN HOLDINGS INC.,

                         SILGAN CONTAINERS CORPORATION,

                          SILGAN PLASTICS CORPORATION,

                  SILGAN CONTAINERS MANUFACTURING CORPORATION,

                               SILGAN CAN COMPANY,

               CERTAIN OTHER SUBSIDIARIES OF SILGAN HOLDINGS INC.

                                       and

                        DEUTSCHE BANK AG NEW YORK BRANCH,
                               as Collateral Agent

                         --------------------------------
                            Dated as of June 30, 2005
                         --------------------------------

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                               SECURITY AGREEMENT
                               ------------------

          SECURITY  AGREEMENT,  dated  as of June  30,  2005 (as the same may be
amended, modified and/or supplemented from time to time, this "Agreement"), made
by each of the undersigned  assignors (each an "Assignor" and, together with any
other  entity that  becomes an  assignor  hereunder  pursuant  to Section  10.13
hereof,  the  "Assignors")  in favor of  DEUTSCHE  BANK AG NEW YORK  BRANCH,  as
Collateral Agent (together with any successor  Collateral Agent, the "Collateral
Agent"), for the benefit of the Secured Creditors (as defined below).  Except as
otherwise  defined herein,  all capitalized terms used herein and defined in the
Credit Agreement (as defined below) shall be used herein as therein defined.

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

          WHEREAS,   Silgan   Holdings  Inc.   ("Silgan"),   Silgan   Containers
Corporation  ("Containers"),  Silgan Plastics Corporation  ("Plastics"),  Silgan
Containers  Manufacturing  Corporation  ("Manufacturing"),  Silgan  Can  Company
("CanCo"), each other Borrower from time to time party thereto, the lenders from
time to time party thereto (the "Lenders", and each, a "Lender"),  Deutsche Bank
AG New York Branch, as Administrative Agent (in such capacity, and together with
any  successor  administrative  agent,  the  "Administrative  Agent"),  Bank  of
America,  N.A.  and  Morgan  Stanley  Bank,  as  Co-Syndication  Agents (in such
capacity,  the  "Co-Syndication  Agents"),  BNP Paribas and JPMorgan Chase Bank,
N.A.,  as  Co-Documentation  Agents  (in such  capacity,  the  "Co-Documentation
Agents"),  and Deutsche Bank Securities Inc. and Banc of America Securities LLC,
as Joint Lead Arrangers and Joint Book Managers (in such capacities,  the "Joint
Lead Arrangers") have entered into a Credit Agreement, dated as of June 30, 2005
(as  amended,  modified  and/or  supplemented  from  time to time,  the  "Credit
Agreement"),  providing  for the  making of Loans to, and the  issuance  of, and
participation  in,  Letters  of Credit for the  account  of,  the  Borrowers  as
contemplated  therein  (the  Lenders,  the  Administrative  Agent,  the  Issuing
Lenders, the Co-Syndication Agents, the Co-Documentation  Agents, the Joint Lead
Arrangers and the Collateral  Agent are  collectively  referred to herein as the
"Lender Creditors");

          WHEREAS,  one or more of the  Borrowers or  Subsidiaries  thereof have
heretofore  entered  into,  or may from time to time after the date hereof enter
into one or more other  Interest  Rate  Protection  Agreements  or Other Hedging
Agreements  with any Lender or an  affiliate  of a Lender  (each such  Lender or
affiliate,  even if the  respective  Lender  subsequently  ceases to be a Lender
under the Credit  Agreement  for any  reason,  together  with such  Lender's  or
affiliate's successors and assigns, are herein called the "Other Creditors" and,
together with the Lender Creditors are herein called the "Secured Creditors");

          WHEREAS,  pursuant  to the US  Borrowers/Subsidiaries  Guaranty,  each
Assignor  (other  than CanCo  except as may be  required  after the date  hereof
pursuant to the Credit  Agreement)  has jointly and severally  guaranteed to the
Secured  Creditors  the payment when due of all  indebtedness,  obligations  and
liabilities of each Borrower and Subsidiary thereof under or with respect to the
Credit Documents,  the Interest Rate Protection Agreements and the Other Hedging
Agreements;

          WHEREAS,  it is a condition  precedent  to the making of Loans to each
Borrower
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                                                                          Page 2

and the issuance of, and  participation in, Letters of Credit for the account of
each Revolving Borrower under the Credit Agreement that the Assignors shall have
executed and delivered to the Collateral Agent this Agreement; and

          WHEREAS,  each  Assignor will obtain  benefits from the  incurrence of
Loans by and the issuance of, and  participation  in,  Letters of Credit for the
account of, the  Borrowers  under the Credit  Agreement and the entering into by
one or more of the Borrowers or Subsidiaries thereof of Interest Rate Protection
Agreements and Other Hedging Agreements and, accordingly,  each Assignor desires
to enter into this Agreement in order to satisfy the condition  described in the
preceding paragraph;

          NOW,  THEREFORE,  in  consideration  of the benefits  accruing to each
Assignor,  the receipt and  sufficiency of which are hereby  acknowledged,  each
Assignor  hereby  makes the  following  representations  and  warranties  to the
Collateral  Agent for the benefit of the Secured  Creditors and hereby covenants
and agrees with the Collateral Agent for the benefit of the Secured Creditors as
follows:

          1. SECURITY INTERESTS

          1.1 Grant of Security  Interests.  (a) As security  for the prompt and
complete  payment  and  performance  when  due of all of its  Obligations,  each
Assignor  does hereby assign and transfer unto the  Collateral  Agent,  and does
hereby pledge and grant to the Collateral  Agent, for the benefit of the Secured
Creditors,  in each case a  continuing  security  interest  in all of the right,
title and  interest  of such  Assignor  in,  to and  under all of the  following
personal property and fixtures (and all rights therein) of such Assignor,  or in
which or to which  such  Assignor  has any  rights,  in each  case  whether  now
existing or hereafter from time to time acquired:

          (i) each and every Account;

          (ii) all cash;

          (iii)  the  Cash  Collateral  Account  and  all  monies,   securities,
     Instruments and other investments  deposited or required to be deposited in
     the Cash Collateral Account;

          (iv) all Chattel Paper (including,  without  limitation,  all Tangible
     Chattel Paper and all Electronic Chattel Paper);

          (v) all Commercial Tort Claims  (including  those described in Annex H
     hereto);

          (vi) all  computer  programs  of such  Assignor  and all  intellectual
     property  rights  therein  and all other  proprietary  information  of such
     Assignor, including, but not limited to, Trade Secret Rights;

          (vii)  all  Contracts,  together  with  all  Contract  Rights  arising
     thereunder;

          (viii) all Copyrights;

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                                                                          Page 3

          (ix) all Equipment;

          (x) all Deposit Accounts and all other demand, deposit, time, savings,
     cash management,  passbook and similar accounts maintained by such Assignor
     with  any  Person  and  all  monies,  securities,   Instruments  and  other
     investments deposited or required to be deposited in any of the foregoing;

          (xi) all Documents;

          (xii) all General Intangibles;

          (xiii) all Goods;

          (xiv) all Instruments  (other than  Instruments  constituting  Pledged
     Securities);

          (xv) all Inventory;

          (xvi) all Investment Property (other than Investment Property required
     to be pledged under the US Pledge Agreement);

          (xvii) all  Letter-of-Credit  Rights  (whether  or not the  respective
     letter of credit is evidenced by a writing);

          (xviii) all Marks,  together with the  registrations  and right to all
     renewals  thereof,  and the  goodwill  of the  business  of  such  Assignor
     symbolized by the Marks;

          (xix) all Patents;

          (xx) all Permits;

          (xxi) all Software and all Software  licensing  rights,  all writings,
     plans,  specifications and schematics,  all engineering drawings,  customer
     lists, goodwill and licenses,  and all recorded data of any kind or nature,
     regardless of the medium of recording;

          (xxii) all Supporting Obligations; and

          (xxiii) all Proceeds and products of any and all of the foregoing (all
     of the above including this clause (xxiii), the "Collateral").

Notwithstanding  the  foregoing,  the term  "Collateral"  shall not  include any
Account and related  asset from and after the time that the same is  transferred
to the  Receivables  Subsidiary  pursuant to the  Accounts  Receivable  Facility
Documents.

          (b) The security interest of the Collateral Agent under this Agreement
extends to all  Collateral  of the kind which is the  subject of this  Agreement
which any Assignor may acquire, or with respect to which any Assignor may obtain
rights, at any time during the term of this Agreement.

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                                                                          Page 4

          (c) Notwithstanding anything herein to the contrary, in no event shall
the  Collateral  include  any  lease,  license  or other  Contract  to which any
Assignor is a party or any of its rights or interests thereunder if and only for
so long as any  applicable  law  prohibits  the creation of a security  interest
therein or the grant of such security interest shall constitute or result in (i)
the  abandonment,  invalidation  or  unenforceability  of any  right,  title  or
interest of any Assignor therein or (ii) a breach or termination pursuant to the
terms of, or a default under,  any such lease,  license or other Contract (other
than to the  extent  that  any  such  term  would  be  rendered  ineffective  or
unenforceable  pursuant  to  the  UCC of any  relevant  jurisdiction  (including
Section 9-406,  9-407, 9-408 or 9-409 of any UCC (or any successor  provision or
provisions))  or any other  applicable law  (including  the Bankruptcy  Code) or
principles of equity),  provided,  however that the Collateral shall include and
such  security  interest  shall  attach  immediately  at such  time as (x)  such
applicable  law  that  prohibits  the  creation  of such  security  interest  is
repealed,  invalidated or no longer effective, or (y) the condition causing such
abandonment, invalidation or unenforceability shall be remedied or any requisite
consent  shall have been  obtained  and to the extent  severable,  shall  attach
immediately  to any portion of such lease,  license or other  Contract that does
not result in any of the consequences specified in (i) or (ii) above.

          1.2 Power of Attorney.  Each Assignor hereby  constitutes and appoints
the Collateral Agent its true and lawful attorney,  irrevocably, with full power
after the  occurrence of and during the  continuance  of an Event of Default (in
the name of such  Assignor  or  otherwise)  to act,  require,  demand,  receive,
compound and give  acquittance  for any and all monies and claims for monies due
or to become due to such  Assignor  under or arising out of the  Collateral,  to
endorse any checks or other instruments or orders in connection therewith and to
file any  claims  or take any  action or  institute  any  proceedings  which the
Collateral Agent may deem to be reasonably necessary or advisable to protect the
interests of the Secured  Creditors,  which  appointment  as attorney is coupled
with an interest.

          2. GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

          Each   Assignor    represents,    warrants   and   covenants,    which
representations,  warranties and covenants shall survive  execution and delivery
of this Agreement, as follows:

          2.1 Necessary  Filings.  All filings,  registrations,  recordings  and
other actions  necessary to create,  preserve and perfect the security  interest
granted  by such  Assignor  to the  Collateral  Agent  hereby in  respect of the
Collateral (other than in Commercial Tort Claims not listed on Annex H hereto or
any supplement  thereto) have been accomplished (or will be accomplished  within
10  Business  Days from the date hereof or, if later,  within 10  Business  Days
after  an  Assignor  first  becomes  a party  hereto)  and  upon  such  filings,
registrations  recordations or other actions,  the security  interest granted to
the Collateral Agent pursuant to this Agreement in and to the Collateral  (other
than in  Commercial  Tort Claims not listed on Annex H hereto or any  supplement
thereto)  creates a valid and,  together with all such  filings,  registrations,
recordings and other actions, a perfected security interest therein prior to the
rights of all other Persons therein (other than Permitted  Liens) and subject to
no other Liens (other than  Permitted  Liens) and is entitled to all the rights,
priorities  and  benefits  afforded  by the  Uniform  Commercial  Code or  other
relevant  law as enacted in any  relevant  jurisdiction  to  perfected  security
interests,  in each case to the extent that the Collateral  consists of the type
of property in

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which a security  interest may be perfected by possession or control (within the
meaning of the UCC as in effect on the date  hereof in the State of New York) or
by filing a financing  statement under the Uniform Commercial Code as enacted in
any relevant jurisdiction.

          2.2 No Liens.  Such Assignor is, and as to all Collateral  acquired by
it from time to time after the date hereof such  Assignor will be, the owner of,
or has  rights  in,  all  Collateral  free  from any  Lien,  security  interest,
encumbrance  or other  right,  title  or  interest  of any  Person  (other  than
Permitted Liens), and such Assignor shall defend the Collateral to the extent of
its rights  therein  against  all claims and  demands of all Persons at any time
claiming the same or any interest therein adverse to the Collateral Agent (other
than in respect of Permitted Liens).

          2.3 Other  Financing  Statements.  As of the date hereof (after giving
effect  to the  Loans  incurred  on the  date  hereof),  there  is no  financing
statement (or similar  statement or instrument of registration  under the law of
any  jurisdiction)  covering or  purporting to cover any interest of any kind in
the Collateral  (other than in respect of Permitted  Liens),  and so long as the
Termination  Date has not occurred,  such Assignor will not execute or authorize
to be filed in any public office any financing  statement (or similar  statement
or instrument of registration  under the law of any  jurisdiction) or statements
relating to the Collateral,  except financing statements filed or to be filed in
respect of and covering the security  interests  granted hereby by such Assignor
or in connection with Permitted Liens.

          2.4 Chief  Executive  Office,  Record  Locations.  The chief executive
office  of such  Assignor  is,  on the date of this  Agreement,  located  at the
address indicated on Annex A hereto for such Assignor.  During the period of the
four calendar months  preceding the date of this Agreement,  the chief executive
office of such  Assignor  has not been  located at any  address  other than that
indicated on Annex A in accordance with the immediately  preceding sentence,  in
each case unless each such other address is also indicated on Annex A hereto for
such Assignor.

          2.5 Location of Inventory and  Equipment.  All Inventory and Equipment
held on the date  hereof,  or held at any time during the four  calendar  months
prior to the date hereof (to the extent,  in the case of an Inventory  location,
at least $1,000,000 of Inventory is (or was) located thereon),  by each Assignor
is located at one of the locations shown on Annex B hereto for such Assignor.

          2.6 Legal  Names;  Type of  Organization  (and  Whether  a  Registered
Organization  and/or a  Transmitting  Utility);  Jurisdiction  of  Organization;
Location; Organizational Identification Numbers; Changes Thereto; etc. As of the
date hereof, the exact legal name of each Assignor,  the type of organization of
such Assignor,  whether or not such Assignor is a Registered  Organization,  the
jurisdiction  of organization of such Assignor,  such Assignor's  Location,  the
organizational  identification number (if any) of each Assignor,  and whether or
not such  Assignor is a  Transmitting  Utility,  is listed on Annex C hereto for
such   Assignor.   No  Assignor  shall  change  its  legal  name,  its  type  of
organization,  its  status  as a  Registered  Organization  (in  the  case  of a
Registered  Organization),  its status as a Transmitting  Utility or as a Person
which is not a Transmitting  Utility,  as the case may be, its  jurisdiction  of
organization, its Location, or its organizational identification number (if any)
from  that  listed on Annex C hereto  for such  Assignor,  except  that any such
changes shall be permitted (so long as

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not in violation of the applicable  requirements  of the Secured Debt Agreements
and so long as same do not  involve  (x) a  Registered  Organization  ceasing to
constitute same or (y) any Assignor changing its jurisdiction of organization or
Location  from  the  United  States  or a State  thereof  to a  jurisdiction  of
organization  or Location,  as the case may be,  outside the United  States or a
State thereof) if (i) it shall have given to the Collateral  Agent not less than
10 days' prior written notice of each change to the information  listed on Annex
C (as adjusted for any subsequent  changes thereto previously made in accordance
with this  sentence),  together with a supplement to Annex C which shall correct
all  information  contained  therein for the  respective  Assignor,  and (ii) in
connection with the respective  such change or changes,  it shall have taken all
action  reasonably  requested by the  Collateral  Agent to maintain the security
interests  of the  Collateral  Agent in the  Collateral  intended  to be granted
hereby at all times fully  perfected and in full force and effect.  In addition,
to the extent that any Assignor does not have an  organizational  identification
number on the date hereof and later obtains one, such  Assignor  shall  promptly
thereafter  notify the Collateral  Agent of such  organizational  identification
number and shall take all  actions  reasonably  satisfactory  to the  Collateral
Agent  to  the  extent  necessary  to  maintain  the  security  interest  of the
Collateral Agent in the Collateral intended to be granted hereby fully perfected
and in full force and effect.

          2.7 Trade Names;  Etc. No Assignor has or operates in any jurisdiction
under,  or in  the  preceding  five  years  has  had  or  has  operated  in  any
jurisdiction under, any trade names,  fictitious names or other names except its
legal name as specified in Annex C and such other trade or  fictitious  names as
are listed on Annex D hereto for such  Assignor.  No  Assignor  shall  assume or
operate in any jurisdiction under any new trade,  fictitious or other name until
(i) it shall have given to the  Collateral  Agent not less than 10 days' written
notice  of its  intention  so to do,  clearly  describing  such new name and the
jurisdictions  in which  such new name  will be used and  providing  such  other
information  in  connection  therewith as the  Collateral  Agent may  reasonably
request and (ii) with  respect to such new name,  it shall have taken all action
reasonably  requested by the Collateral Agent to maintain the security  interest
of the Collateral  Agent in the Collateral  intended to be granted hereby at all
times fully perfected and in full force and effect.

          2.8  Certain  Significant  Transactions.  During  the one year  period
preceding the date of this Agreement,  no Person has merged or consolidated with
or into any Assignor,  and no Person has liquidated  into, or transferred all or
substantially  all of its  assets  to,  any  Assignor,  in each  case  except as
described in Annex E hereto.  With respect to any  transactions  so described in
Annex E hereto,  the respective  Assignor shall have furnished such  information
with respect to the Person (and the assets of the Person and locations  thereof)
which merged with or into or consolidated with such Assignor,  or was liquidated
into or transferred all or substantially all of its assets to such Assignor, and
shall have furnished to the Collateral  Agent such UCC lien searches as may have
been requested with respect to such Person and its assets,  to establish that no
security interest  (excluding  Permitted Liens) continues  perfected on the date
hereof with respect to any Person described above (or the assets  transferred to
the respective  Assignor by such Person),  including without limitation pursuant
to Section 9-316(a)(3) of the UCC.

          2.9 Non-UCC  Property.  The aggregate fair market value (as determined
by the  Assignors in good faith) of all  property of the  Assignors of the types
described in clauses (1), (2) and (3) of Section 9-311(a) of the UCC (other than
intellectual property) does not exceed

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$10,000,000.  If the  aggregate  value of all such property at any time owned by
all Assignors  exceeds  $10,000,000,  the Assignors shall provide prompt written
notice thereof to the  Collateral  Agent and, upon the request of the Collateral
Agent,  the Assignors shall promptly (and in any event within 30 days) take such
actions (at their own cost and expense) as may be required  under the respective
United States,  State or other laws referenced in Section 9-311(a) of the UCC to
perfect the security  interests  granted  herein in such property (to the extent
constituting  Collateral)  where the filing of a  financing  statement  does not
perfect the security interest in such property in accordance with the provisions
of Section 9-311(a) of the UCC.

          2.10 As-Extracted Collateral; Timber-to-be-Cut. On the date hereof, no
Assignor owns, or expects to acquire,  any property which constitutes,  or would
constitute,  As-Extracted  Collateral or Timber-to-be-Cut in an aggregate amount
for all  Assignors of  $2,000,000 or more. If at any time after the date of this
Agreement the Assignors own, acquire or obtain rights to As-Extracted Collateral
or Timber-to-be-Cut in an aggregate amount of $1,000,000 or more, such Assignors
shall furnish the  Collateral  Agent with prompt  written  notice thereof (which
notice shall describe in reasonable detail or the As-Extracted Collateral and/or
Timber-to-be-Cut and the locations thereof) and shall take all actions as may be
deemed reasonably  necessary or desirable by the Collateral Agent to perfect the
security interest of the Collateral Agent therein.

          2.11  Collateral in the  Possession  of a Bailee.  If any Inventory or
other Goods in an aggregate  amount for all  Assignors of $5,000,000 or more are
at any time in the  possession  of a  bailee,  the  respective  Assignors  shall
promptly notify the Collateral Agent thereof and, if requested by the Collateral
Agent,   shall  use  its   reasonable   best  efforts  to  promptly   obtain  an
acknowledgment from such bailee, in form and substance  reasonably  satisfactory
to the Collateral  Agent,  that the bailee holds such Collateral for the benefit
of the Collateral  Agent and shall act upon the  instructions  of the Collateral
Agent, without the further consent of the respective  Assignors.  The Collateral
Agent agrees with the  Assignors  that the  Collateral  Agent shall not give any
such  instructions  unless an Event of Default has occurred and is continuing or
would occur after taking into account any action by the respective Assignor with
respect to any such bailee.

          2.12  Recourse.  This  Agreement  is made with full  recourse  to each
Assignor  pursuant to upon all the  warranties,  representations,  covenants and
agreements  on the  part of such  Assignor  contained  herein  and in the  other
Secured  Debt  Agreements  and  otherwise in writing in  connection  herewith or
therewith.

          3.  SPECIAL   PROVISIONS   CONCERNING   ACCOUNTS;   CONTRACT   RIGHTS;
INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

          3.1 Additional  Representations  and  Warranties.  As of the time when
each of its Accounts  (other than  Accounts in an immaterial  aggregate  amount)
arises,  each Assignor  shall be deemed to have  represented  and warranted that
each such Account,  and all records,  papers and documents  relating thereto (if
any) are genuine and what they purport to be, and that all papers and  documents
(if any) relating  thereto will be the only  original  writings  evidencing  and
embodying such obligation of the account debtor named therein (other than copies
created for general accounting purposes).

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          3.2  Maintenance  of Records.  Each Assignor will keep and maintain at
its own cost  and  expense  accurate  records  of its  Accounts  and  Contracts,
including,  but not limited to, originals (with facsimile copies being deemed to
constitute  originals)  of all  documentation  (including  each  Contract)  with
respect thereto,  records of all payments received, all credits granted thereon,
all  merchandise  returned and all other dealings  therewith,  and such Assignor
will make the same available on such Assignor's premises to the Collateral Agent
for inspection, at such Assignor's own cost and expense, to the extent permitted
by, and subject to the conditions set forth in, the Credit  Agreement.  Upon the
occurrence and during the  continuance of an Event of Default and at the request
of the  Collateral  Agent,  such  Assignor  shall,  at its own cost and expense,
deliver all tangible  evidence of its Accounts and Contract  Rights  (including,
without limitation, all documents evidencing the Accounts and all Contracts) and
such books and records to the Collateral Agent or to its representatives (copies
of which evidence and books and records may be retained by such Assignor).  Upon
the  occurrence  and during the  continuance  of an Event of Default  and if the
Collateral  Agent so directs,  such Assignor  shall  legend,  in form and manner
satisfactory to the Collateral Agent, the Accounts and the Contracts, as well as
books,  records and documents (if any) of such Assignor evidencing or pertaining
to such Accounts and Contracts  with an  appropriate  reference to the fact that
such Accounts and Contracts have been assigned to the Collateral  Agent and that
the Collateral Agent has a security interest therein.

          3.3 Direction to Account Debtors;  Contracting Parties;  etc. Upon the
occurrence  and  during  the  continuance  of an  Event of  Default,  and if the
Collateral Agent so directs any Assignor,  such Assignor agrees (x) to cause all
payments on account of the  Accounts and  Contracts  to be made  directly to the
Cash  Collateral  Account,  (y) that the  Collateral  Agent may,  at its option,
directly  notify the  obligors  with  respect to any  Accounts  and/or under any
Contracts to make  payments  with respect  thereto as provided in the  preceding
clause (x), and (z) that the Collateral Agent may enforce collection of any such
Accounts  and  Contracts  and may  adjust,  settle or  compromise  the amount of
payment  thereof,  in the same manner and to the same  extent as such  Assignor.
Upon the occurrence and during the  continuance of an Event of Default,  without
notice to or assent by any Assignor,  the Collateral  Agent may apply any or all
amounts then in, or thereafter  deposited in, the Cash Collateral  Account which
application  shall be  effected  in the manner  provided  in Section 7.4 of this
Agreement. The costs and expenses of collection (including reasonable attorneys'
fees),  whether incurred by an Assignor or the Collateral Agent,  shall be borne
by the relevant  Assignor.  The  Collateral  Agent shall  deliver a copy of each
notice  referred  to in the  preceding  clause  (y) to  the  relevant  Assignor,
provided that (x) the failure by the Collateral Agent to so notify such Assignor
shall not affect the  effectiveness  of such  notice or the other  rights of the
Collateral  Agent  created by this  Section 3.3 and (y) no such notice  shall be
required  if an Event of Default of the type  described  in Section  9.05 of the
Credit Agreement has occurred and is continuing.

          3.4  Modification  of Terms;  etc.  Except (x) as permitted  under the
Credit Agreement,  (y) as permitted by Section 3.5 hereof or (z) in the ordinary
course of business  and  consistent  with past  practices of such  Assignor,  no
Assignor  shall rescind or cancel any  indebtedness  evidenced by any Account or
under any Contract,  or modify in any material respect, any term thereof or make
any material  adjustment with respect  thereto,  or extend or renew the same, or
compromise  or settle any  material  dispute,  claim,  suit or legal  proceeding
relating thereto, or sell any Account or Contract, or interest therein,  without
the prior written

<PAGE>
                                                                          Page 9

consent of the  Collateral  Agent.  Each  Assignor  will duly fulfill all of its
material obligations on its part to be fulfilled under or in connection with the
Accounts  or  Contracts  and will not do  anything  to impair  any rights of the
Collateral Agent in the Accounts or Contracts.

          3.5  Collection.  Each  Assignor  shall  endeavor in  accordance  with
reasonable  business  practices to cause to be collected from the account debtor
named in each of its  Accounts or obligor  under any  Contract,  as and when due
(including, without limitation, amounts which are delinquent, such amounts to be
collected in accordance with generally  accepted lawful  collection  procedures)
any and all amounts  owing under or on account of such Account or Contract,  and
apply forthwith upon receipt thereof all such amounts as are so collected to the
outstanding  balance of such Account or under such Contract,  except that, prior
to the occurrence of an Event of Default, any Assignor may allow in the ordinary
course of business  as  adjustments  to amounts  owing  under its  Accounts  and
Contracts  (i) an  extension  or  renewal  of the time or times of  payment,  or
settlement  for less than the total unpaid  balance,  which such Assignor  finds
appropriate in accordance with reasonable business judgment and (ii) a refund or
credit  due as a  result  of  returned  or  damaged  merchandise  or  improperly
performed services or for other reasons which such Assignor finds appropriate in
accordance with reasonable business judgment.  The reasonable costs and expenses
(including, without limitation, attorneys' fees) of collection, whether incurred
by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor.

          3.6  Instruments.  If any  Assignor  owns or acquires  any  Instrument
constituting  Collateral in excess of $250,000 and having a maturity longer than
60 days and  otherwise  constituting  Collateral,  such  Assignor will within 10
Business Days thereafter  notify the Collateral Agent thereof,  and upon request
by the Collateral  Agent will promptly deliver such Instrument to the Collateral
Agent appropriately  endorsed to the order of the Collateral Agent as additional
Collateral hereunder.

          3.7 Assignors  Remain Liable Under  Accounts.  Anything  herein to the
contrary  notwithstanding,  the Assignors  shall remain liable under each of the
Accounts  to observe and perform all of the  conditions  and  obligations  to be
observed and performed by it thereunder, all in accordance with the terms of any
agreement  giving rise to such Accounts.  Neither the  Collateral  Agent nor any
other Secured  Creditor shall have any obligation or liability under any Account
(or any  agreement  giving  rise  thereto)  by reason of or arising  out of this
Agreement or the receipt by the Collateral  Agent or any other Secured  Creditor
of any  payment  relating  to  such  Account  pursuant  hereto,  nor  shall  the
Collateral  Agent or any other  Secured  Creditor be  obligated in any manner to
perform any of the  obligations of any Assignor under or pursuant to any Account
(or any agreement giving rise thereto), to make any payment, to make any inquiry
as to the nature or the sufficiency of any payment received by them or as to the
sufficiency of any  performance by any party under any Account (or any agreement
giving  rise  thereto),  to  present  or file any  claim,  to take any action to
enforce any  performance or to collect the payment of any amounts which may have
been assigned to them or to which they may be entitled at any time or times.

          3.8 Assignors  Remain Liable Under  Contracts.  Anything herein to the
contrary  notwithstanding,  the Assignors  shall remain liable under each of the
Contracts to observe and perform all of the  conditions  and  obligations  to be
observed and performed by them

<PAGE>
                                                                         Page 10

thereunder,  all in accordance  with and pursuant to the terms and provisions of
each Contract. Neither the Collateral Agent nor any other Secured Creditor shall
have any obligation or liability  under any Contract by reason of or arising out
of this  Agreement or the receipt by the  Collateral  Agent or any other Secured
Creditor of any payment relating to such Contract pursuant hereto, nor shall the
Collateral  Agent or any other  Secured  Creditor be  obligated in any manner to
perform  any of the  obligations  of  any  Assignor  under  or  pursuant  to any
Contract,  to make any  payment,  to make any  inquiry  as to the  nature or the
sufficiency of any  performance  by any party under any Contract,  to present or
file any claim,  to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to them or to which they may
be entitled at any time or times.

          3.9 Deposit Accounts;  Etc. (a) No Assignor maintains,  or at any time
after the date of this Agreement shall establish or maintain,  any demand, time,
savings, passbook or similar account, except for such accounts maintained with a
bank (as defined in Section 9-102 of the UCC) whose jurisdiction  (determined in
accordance  with  Section  9-304  of the UCC) is  within  a State of the  United
States.  Annex F hereto accurately sets forth, as of the date of this Agreement,
for each Assignor, each Deposit Account maintained by such Assignor (including a
description  thereof  and  the  respective  account  number),  the  name  of the
respective  bank  with  which  such  Deposit  Account  is  maintained,  and  the
jurisdiction of the respective  Lender with respect to such Deposit Account,  in
each case except for local  Deposit  Accounts  which in the aggregate for all of
the Assignors do not hold more than  $5,000,000 of cash and Cash  Equivalents at
any one time (although no more than $200,000 in the aggregate may be held in any
single local Deposit  Account).  For each Deposit  Account  (other than the Cash
Collateral  Account or any other Deposit Account  maintained with the Collateral
Agent), the respective Assignor shall use its commercially reasonable efforts to
cause the bank with which the  Deposit  Account  is  maintained  to execute  and
deliver to the Collateral Agent, within 90 days after the date of this Agreement
(as  such  date  may be  extended  by the  Collateral  Agent  in its  reasonable
discretion)  or, if later,  at the time of the  establishment  of the respective
Deposit  Account,  a  "control   agreement"  in  the  form  of  Annex  G  hereto
(appropriately completed), with such changes thereto as may be acceptable to the
Collateral Agent. If any bank with which a Deposit Account is maintained refuses
to, or does not,  enter into such a  "control  agreement",  then the  respective
Assignor  shall,  to the extent  reasonably  requested by the Collateral  Agent,
promptly close the respective  Deposit Account and transfer all balances therein
to another Deposit Account meeting the  requirements of this Section 3.9. If any
bank with which a Deposit  Account is maintained  refuses to subordinate all its
claims with respect to such Deposit Account to the Collateral  Agent's  security
interest  therein  on  terms  satisfactory  to the  Collateral  Agent,  then the
Collateral  Agent,  in  its  reasonable  discretion,   may  (but  will  have  no
obligations  to)  (x)  require  that  such  Deposit  Account  be  terminated  in
accordance  with the immediately  preceding  sentence or (y) agree to a "control
agreement"  without  such  subordination,   provided  that  in  such  event  the
Collateral Agent may at any time, at its option,  subsequently require that such
Deposit  Account be terminated  (within 30 days after notice from the Collateral
Agent)  in  accordance  with  the  requirements  of  the  immediately  preceding
sentence.

          (b) After the date of this Agreement,  no Assignor shall establish any
new  demand,  time,  savings,  passbook or similar  account,  except for Deposit
Accounts  established and maintained with banks and meeting the  requirements of
preceding  clause (a). At the time any such Deposit Account is established,  the
appropriate "control agreement" shall be entered into in

<PAGE>
                                                                         Page 11

accordance  with the  requirements  of preceding  clause (a) and the  respective
Assignor  shall furnish to the  Collateral  Agent a supplement to Annex F hereto
containing  the  relevant  information  with respect to the  respective  Deposit
Account and the bank with which same is established.

          (c) Without limiting any provision of Section 7 herein, the Collateral
Agent  hereby  agrees  that  unless  an Event of  Default  has  occurred  and is
continuing, it will not assume exclusive control over any Deposit Account of any
Assignor or give any notice of exclusive  control or similar  notice to any bank
at which any Deposit Account is maintained by any Assignor.

          3.10  Letter-of-Credit  Rights.  If  any  Assignor  is at  any  time a
beneficiary  under a letter of credit with a stated  amount of $500,000 or more,
such Assignor  shall promptly  notify the  Collateral  Agent thereof and, at the
request of the Collateral Agent,  such Assignor shall,  pursuant to an agreement
in form and substance  reasonably  satisfactory to the Collateral Agent, use its
reasonable  best efforts to (i) arrange for the issuer and any confirmer of such
letter of credit to  consent to an  assignment  to the  Collateral  Agent of the
proceeds  of any  drawing  under such  letter of credit or (ii)  arrange for the
Collateral Agent to become the transferee  beneficiary of such letter of credit,
with the  Collateral  Agent  agreeing,  in each case,  that the  proceeds of any
drawing  under the  letter of  credit  are to be  applied  as  provided  in this
Agreement  after  the  occurrence  and  during  the  continuance  of an Event of
Default.

          3.11  Commercial  Tort  Claims.  All  Commercial  Tort  Claims of each
Assignor as of the date of this  Agreement are  described in Annex H hereto.  If
any  Assignor  shall at any time and from  time to time  after  the date of this
Agreement  become aware of any  Commercial  Tort Claim in an amount  (taking the
greater of the aggregate claimed damages thereunder or the reasonably  estimated
value thereof) of $3,000,000 or more,  such Assignor  shall (i) promptly  notify
the Collateral Agent thereof in a writing signed by such Assignor and describing
the details  thereof and shall grant to the  Collateral  Agent in such writing a
security  interest  in all  such  Commercial  Tort  Claims  and in the  proceeds
thereof,  all upon the terms of this Agreement,  with such writing to be in form
and substance  reasonably  satisfactory to the Collateral Agent and (ii) perform
all  actions  reasonably  requested  by the  Collateral  Agent to  perfect  such
security interest in such Commercial Tort Claims.

          3.12 Chattel Paper.  Upon the request of the Collateral  Agent made at
any time or from time to time,  each  Assignor  shall  promptly  furnish  to the
Collateral  Agent a list of all  Electronic  Chattel Paper held or owned by such
Assignor. Furthermore, if requested by the Collateral Agent, each Assignor shall
promptly  take  all  actions  which  are  reasonably  practicable  so  that  the
Collateral  Agent has  "control" of all  Electronic  Chattel Paper in accordance
with the  requirements  of Section 9-105 of the UCC. Each Assignor will promptly
(and in any event within 20 days) following any request by the Collateral Agent,
deliver all of its Tangible Chattel Paper to the Collateral Agent.

          3.13 Further  Actions.  Each Assignor will, at its own expense,  make,
execute, endorse,  acknowledge, file and/or deliver to the Collateral Agent from
time to time  such  vouchers,  invoices,  schedules,  confirmatory  assignments,
conveyances,  financing statements,  transfer endorsements,  powers of attorney,
certificates, reports and other assurances or

<PAGE>
                                                                         Page 12

instruments and take such further steps, including any and all actions as may be
necessary or required  under the Federal  Assignment of Claims Act,  relating to
its Accounts, Contracts, Instruments and other property or rights covered by the
security  interest  hereby  granted,  as the  Collateral  Agent  may  reasonably
require.

          4. SPECIAL PROVISIONS CONCERNING TRADEMARKS

          4.1  Additional   Representations   and   Warranties.   Each  Assignor
represents  and warrants  that it owns,  is licensed to use or otherwise has the
right to use all material  Marks that it uses.  Each Assignor  further  warrants
that it has no knowledge  of any  material  third party claim that any aspect of
such Assignor's present or contemplated  business  operations  infringes or will
infringe in any material respect any trademark, service mark or trade name. Each
Assignor hereby grants to the Collateral  Agent an absolute power of attorney to
sign, upon the occurrence and during the continuance of an Event of Default, any
document which may be required by the United States Patent and Trademark  Office
or  secretary  of state or  equivalent  governmental  agency of any State of the
United States in order to effect an absolute  assignment of all right, title and
interest in each Mark, and record the same.

          4.2 Licenses  and  Assignments.  Except as otherwise  permitted by the
Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any
right under any Mark absent prior written approval of the Collateral Agent.

          4.3  Infringements.  Each  Assignor  agrees,  promptly  upon  learning
thereof,  to notify the Collateral  Agent in writing of the name and address of,
and to furnish such pertinent information that may be available with respect to,
any party who such  Assignor  believes is  infringing  or diluting or  otherwise
violating in any material  respect any of such  Assignor's  rights in and to any
material Mark or with respect to any party claiming that such  Assignor's use of
any material  Mark violates in any material  respect any property  right of that
party.  Each Assignor further agrees,  unless otherwise agreed by the Collateral
Agent, to prosecute in accordance with reasonable  business practices any Person
infringing any material Mark owned by such Assignor.

          4.4  Preservation  of Marks.  Each Assignor agrees to use its material
Marks in  interstate  commerce  during  the time in which this  Agreement  is in
effect and to take all such other  actions as are  necessary  to  preserve  such
material  Marks as  trademarks  or  service  marks  under the laws of the United
States;  provided, that no Assignor shall be obligated to preserve, or prosecute
any Person infringing,  any material Mark in the event such Assignor determines,
in its reasonable business judgment, that the preservation of such material Mark
is no longer desirable in the conduct of its business.

          4.5  Maintenance  of  Registration.  Each Assignor  shall,  at its own
expense,  diligently  process  all  documents  required  to  maintain  trademark
registrations,  including but not limited to affidavits of use and  applications
for renewals of  registration  in the United States Patent and Trademark  Office
for all of its registered  Marks,  and shall pay all fees and  disbursements  in
connection  therewith  and shall not abandon any such filing of affidavit of use
or any such application of renewal prior to the exhaustion of all administrative
and judicial  remedies  without prior written  consent of the Collateral  Agent;
provided,  that no Assignor shall be obligated to maintain the  registration  of
any Mark in the event that such Assignor determines,

<PAGE>
                                                                         Page 13

in its reasonable  business  judgment,  that the  maintenance of such Mark is no
longer necessary or desirable in the conduct of its business.

          4.6 Remedies.  If an Event of Default  shall occur and be  continuing,
the Collateral Agent may, by written notice to the relevant  Assignor,  take any
or all of the  following  actions:  (i)  declare  the  entire  right,  title and
interest  of such  Assignor  in and to  each of the  Marks,  together  with  all
trademark rights and rights of protection to the same,  vested in the Collateral
Agent for the benefit of the  Secured  Creditors,  in which  event such  rights,
title and interest  shall  immediately  vest,  in the  Collateral  Agent for the
benefit of the Secured Creditors,  and the Collateral Agent shall be entitled to
exercise  the power of  attorney  referred  to in Section 4.1 hereof to execute,
cause to be acknowledged and notarized and record said absolute  assignment with
the applicable  agency;  (ii) take and use or sell the Marks and the goodwill of
such Assignor's  business  symbolized by the Marks and the right to carry on the
business and use the assets of such Assignor in connection  with which the Marks
have been used;  and (iii) direct such Assignor to refrain,  in which event such
Assignor shall refrain, from using the Marks in any manner whatsoever,  directly
or indirectly, and, if requested by the Collateral Agent, change such Assignor's
corporate name to eliminate therefrom any use of any Mark and execute such other
and further  documents that the Collateral  Agent may request to further confirm
this and to transfer  ownership of the Marks and  registrations  and any pending
trademark  application  in the United States Patent and Trademark  Office or any
equivalent  government  agency  or  office in any  foreign  jurisdiction  to the
Collateral Agent.

          5. SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

          5.1  Additional   Representations   and   Warranties.   Each  Assignor
represents  and warrants that it is the true and lawful  exclusive  owner of all
rights in (i) the material Patents that such Assignor owns and (ii) the material
Copyrights  that such  Assignor  owns.  Each  Assignor  further  represents  and
warrants  that it is the true and  lawful  exclusive  owner or  licensee  of all
rights in all material United States trade secrets and  proprietary  information
necessary to operate the business of the Assignor (the "Trade  Secret  Rights").
Each Assignor further represents and warrants that it has the exclusive right to
use and practice  under all material  Patents and  material  Copyrights  that it
owns, uses or practices under and has the exclusive right to exclude others from
using or practicing  under the claims of any material  Patents it owns,  uses or
practices under.  Each Assignor further warrants that, as of the date hereof, it
has no  knowledge  of any  material  third  party  claim that any aspect of such
Assignor's  present  or  contemplated  business  operations  infringes  or  will
infringe  in any  material  respect on any rights in any third  party  patent or
copyright or that such Assignor has  misappropriated in any material respect any
trade secret or  proprietary  information.  Each  Assignor  hereby grants to the
Collateral  Agent an absolute power of attorney to sign, upon the occurrence and
during  the  continuance  of any Event of  Default,  any  document  which may be
required by the United States  Patent and Trademark  Office or the United States
Copyright Office in order to effect an absolute  assignment of all right,  title
and interest in each Patent and registered Copyright and to record the same.

          5.2 Licenses  and  Assignments.  Except as otherwise  permitted by the
Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any
right  under any  Patent or  Copyright  absent  prior  written  approval  of the
Collateral Agent.

<PAGE>
                                                                         Page 14

          5.3  Infringements.  Each  Assignor  agrees,  promptly  upon  learning
thereof,  to  furnish  the  Collateral  Agent  in  writing  with  all  pertinent
information  available  to  such  Assignor  with  respect  to any  infringement,
contributing  infringement  or active  inducement  to infringe  in any  material
Patent or material  Copyright  or to any claim that the practice of any material
Patent or the use of any material  Copyright  violates  any property  right of a
third party,  or with  respect to any  misappropriation  of any  material  Trade
Secret  Right or any claim that  practice of any  material  Trade  Secret  Right
violates any property  right of a third party.  Each  Assignor  further  agrees,
absent  direction  of the  Collateral  Agent to the  contrary,  to  prosecute in
accordance with reasonable  business practice any Person infringing any material
Patent or material Copyright or any Person  misappropriating  any material Trade
Secret Right.

          5.4  Maintenance  of Patents or  Copyright  At its own  expense,  each
Assignor shall make timely payment of all  post-issuance  fees required pursuant
to 35 U.S.C. ss. 41 to maintain in force rights under each material Patent,  and
to apply  as  permitted  pursuant  to  applicable  law for any  renewal  of each
material  Copyright,  in any case absent prior written consent of the Collateral
Agent;  provided,  that no Assignor shall be obligated to maintain, or prosecute
any Person  infringing,  any  Patent or  Copyright  in the event  such  Assignor
determines,  in its reasonable  business judgment,  that the maintenance of such
Patent or  Copyright  is no longer  necessary or desirable in the conduct of its
business.

          5.5  Prosecution  of Patent  and  Copyright  Applications.  At its own
expense,  each Assignor  shall  diligently  prosecute all  applications  for (i)
material  United States Patents and (ii) material United States  Copyrights,  in
each case for such Assignor and shall not abandon any such application  prior to
exhaustion of all administrative  and judicial remedies,  absent written consent
of the  Collateral  Agent;  provided,  that no Assignor  shall be  obligated  to
prosecute  or not to abandon  any such  application  in the event such  Assignor
determines,  in its  reasonable  business  judgment,  that  the  prosecuting  or
maintenance of any such  application is no longer  necessary or desirable in the
conduct of its business.

          5.6 Remedies.  If an Event of Default  shall occur and be  continuing,
the Collateral Agent may, by written notice to the relevant  Assignor,  take any
or all of the  following  actions:  (i) declare  the entire  right,  title,  and
interest of such  Assignor in each of the Patents,  Copyrights  and Trade Secret
Rights vested in the Collateral Agent for the benefit of the Secured  Creditors,
in which event such right,  title,  and interest shall  immediately  vest in the
Collateral  Agent for the  benefit of the Secured  Creditors,  in which case the
Collateral Agent shall be entitled to exercise the power of attorney referred to
in Section 5.1 hereof to execute,  cause to be acknowledged and notarized and to
record  said  absolute  assignment  with the  applicable  agency;  (ii) take and
practice or sell the  Patents,  Copyrights  and Trade Secret  Rights;  and (iii)
direct such  Assignor to refrain,  in which event such Assignor  shall  refrain,
from practicing the Patents and using the Copyrights  and/or Trade Secret Rights
directly or  indirectly,  and such Assignor shall execute such other and further
documents as the Collateral Agent may reasonably request further to confirm this
and to transfer ownership of the Patents,  Copyrights and Trade Secret Rights to
the Collateral Agent for the benefit of the Secured Creditors.

          6. PROVISIONS CONCERNING ALL COLLATERAL

<PAGE>
                                                                         Page 15

          6.1  Protection of Collateral  Agent's  Security.  Except as otherwise
permitted  by the Secured  Debt  Agreements,  each  Assignor  will do nothing to
impair the rights of the Collateral Agent in the Collateral.  Each Assignor will
at all times keep its Inventory and Equipment insured in favor of the Collateral
Agent,  at such  Assignor's own expense to the extent and in the manner provided
in the  Secured  Debt  Agreements.  If any  Assignor  shall  fail to insure  its
Inventory  and Equipment in accordance  with the preceding  sentence,  or if any
Assignor shall fail to so endorse and deposit all policies or certificates  with
respect  thereto,  the Collateral Agent shall have the right (but shall be under
no obligation)  to procure such  insurance and such Assignor  agrees to promptly
reimburse  the  Collateral  Agent for all costs and expenses of  procuring  such
insurance.  Except to the extent  proceeds  of  insurance  are  permitted  to be
retained by the relevant Assignor pursuant to the terms of the Credit Agreement,
the  Collateral  Agent shall,  at the time such  proceeds of such  insurance are
distributed  to the Secured  Creditors,  apply such proceeds in accordance  with
Section 7.4 hereof.  Each Assignor assumes all liability and  responsibility  in
connection with the Collateral acquired by it and the liability of such Assignor
to pay the  Obligations  shall in no way be affected or  diminished by reason of
the fact that such Collateral may be lost, destroyed, stolen, damaged or for any
reason whatsoever unavailable to such Assignor.

          6.2 Warehouse  Receipts  Non-negotiable.  Each Assignor agrees that if
any warehouse  receipt or receipt in the nature of a warehouse receipt is issued
with  respect  to any of its  Inventory,  such  receipt or receipt in the nature
thereof shall not be "negotiable"  (as such term is used in Section 7-104 of the
Uniform Commercial Code as in effect in any relevant jurisdiction or under other
relevant law).

          6.3  Additional  Information.  Each Assignor will, at its own expense,
from time to time upon the reasonable request of the Collateral Agent,  promptly
(and in any event  within 20 days after its receipt of the  respective  request)
furnish to the Collateral  Agent such information with respect to the Collateral
(including the identity of the Collateral or such components thereof as may have
been  requested  by the  Collateral  Agent,  the  value  and  location  of  such
Collateral,  etc.)  as may be  reasonably  requested  by the  Collateral  Agent.
Without limiting the forgoing,  each Assignor agrees that it shall promptly (and
in any event within 20 days after its receipt of the respective request) furnish
to the Collateral  Agent such updated Annexes hereto as may from time to time be
reasonably requested by the Collateral Agent.

          6.4 Further  Actions.  Each  Assignor  will,  at its own expense make,
execute, endorse,  acknowledge, file and/or deliver to the Collateral Agent from
time to time  such  lists,  descriptions  and  designations  of its  Collateral,
warehouse  receipts,  receipts  in the nature of  warehouse  receipts,  bills of
lading,  documents  of  title,  vouchers,  invoices,   schedules,   confirmatory
assignments, conveyances, financing statements, transfer endorsements, powers of
attorney,  certificates,  reports and other  assurances or instruments  and take
such  further  steps  relating to the  Collateral  and other  property or rights
covered  by the  security  interest  hereby  granted,  as the  Collateral  Agent
reasonably requests to perfect, preserve or protect its security interest in the
Collateral.

          6.5 Financing Statements.  Each Assignor agrees to execute and deliver
to the Collateral Agent such financing statements, in form reasonably acceptable
to the  Collateral  Agent,  as the  Collateral  Agent  may  from  time  to  time
reasonably request or as are necessary or

<PAGE>
                                                                         Page 16

desirable in the opinion of the  Collateral  Agent to  establish  and maintain a
valid, enforceable, first priority perfected security interest in the Collateral
(subject  to  Permitted  Liens) as  provided  herein  and the other  rights  and
security  contemplated  hereby  all in  accordance  with  the  UCC or any  other
relevant law. Each Assignor  will pay any  applicable  filing fees,  recordation
taxes and related  expenses  relating to its  Collateral.  Each Assignor  hereby
authorizes the Collateral  Agent, as the Collateral  Agent shall reasonably deem
necessary  or  desirable  to file  any such  financing  statements  without  the
signature of such Assignor where permitted by law.

          7. REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

          7.1 Remedies;  Obtaining the  Collateral  Upon Default.  Each Assignor
agrees that, if any Event of Default shall have occurred and be continuing, then
and in every such case, the Collateral  Agent,  in addition to any rights now or
hereafter  existing under  applicable law and under the other provisions of this
Agreement,  shall have all rights as a secured  creditor under any UCC, and such
additional rights and remedies to which a secured creditor is entitled under the
laws in effect in all relevant jurisdictions and may:

          (i) personally, or by agents or attorneys, immediately take possession
     of the  Collateral  or any part  thereof,  from such  Assignor or any other
     Person who then has  possession of any part thereof with or without  notice
     or  process of law,  and for that  purpose  may enter upon such  Assignor's
     premises where any of the Collateral is located and remove the same and use
     in connection  with such removal any and all services,  supplies,  aids and
     other facilities of such Assignor;

          (ii) instruct the obligor or obligors on any agreement,  instrument or
     other  obligation  (including,  without  limitation,  the  Accounts and the
     Contracts)  constituting the Collateral to make any payment required by the
     terms of such  agreement,  instrument or other  obligation  directly to the
     Collateral  Agent and may exercise any and all remedies of such Assignor in
     respect of such Collateral;

          (iii) instruct all depository banks and/or  Securities  Intermediaries
     which have entered into a control  agreement with the Collateral Agent with
     respect to any  Collateal to transfer all monies,  securities,  instruments
     and  Financial  Assets  held  by such  depositary  bank  and/or  Securities
     Intermediary to the Cash Collateral Account;

          (iv) sell, assign or otherwise  liquidate any or all of the Collateral
     or any part thereof in  accordance  with Section 7.2 hereof,  or direct the
     relevant Assignor to sell, assign or otherwise  liquidate any or all of the
     Collateral or any part thereof,  and, in each case,  take possession of the
     proceeds of any such sale or liquidation;

          (v)  take  possession  of the  Collateral  or  any  part  thereof,  by
     directing  the  relevant  Assignor  in writing  to deliver  the same to the
     Collateral  Agent at any  reasonable  place  or  places  designated  by the
     Collateral Agent, in which event such Assignor shall at its own expense:

               (x)  forthwith  cause the same to be moved to the place or places
          so  designated  by the  Collateral  Agent and there  delivered  to the
          Collateral Agent;

<PAGE>
                                                                         Page 17

               (y) store and keep any  Collateral so delivered to the Collateral
          Agent at such place or places pending further action by the Collateral
          Agent as provided in Section 7.2 hereof; and

               (z) while the  Collateral  shall be so stored  and kept,  provide
          such guards and maintenance  services as shall be necessary to protect
          the same and to preserve  and maintain the  Collateral  in  reasonable
          working condition;

          (vi) license or  sublicense,  whether on an exclusive or  nonexclusive
     basis, any Marks, Patents or Copyrights included in the Collateral for such
     term and on such  conditions  and in such  manner as the  Collateral  Agent
     shall in its sole judgment  determine  (taking into account such provisions
     as may be  necessary  to  protect  and  preserve  such  Marks,  Patents  or
     Copyrights);

          (vii) apply any monies constituting  Collateral or proceeds thereof in
     accordance  with the  provisions  of Section 7.4; and

         (viii) take  any other action as specified  in clauses (1) through (5),
     inclusive, of Section 9-607 of the UCC;

it being understood that each Assignor's obligation so to deliver the Collateral
is of the essence of this Agreement and that, accordingly, upon application to a
court of equity having jurisdiction, the Collateral Agent shall be entitled to a
decree requiring  specific  performance by such Assignor of said obligation.  By
accepting the benefits of this Agreement and each other Security  Document,  the
Secured Creditors  expressly  acknowledge and agree that this Agreement and each
other Security Document may be enforced only by the action of the Administrative
Agent or the Collateral  Agent, in each case acting upon the instructions of the
Required  Secured  Creditors and that no other Secured  Creditor  shall have any
right  individually to seek to enforce or to enforce this Agreement or any other
Security  Document  or to realize  upon the  security  to be  granted  hereby or
thereby,  it being  understood  and agreed that such rights and  remedies may be
exercised by the Administrative Agent or the Collateral Agent for the benefit of
the Secured  Creditors  upon the terms of this  Agreement and the other Security
Documents.

          7.2  Remedies;   Disposition   of  the   Collateral.   Any  Collateral
repossessed by the Collateral  Agent under or pursuant to Section 7.1 hereof and
any other Collateral  whether or not so repossessed by the Collateral Agent, may
be sold,  assigned,  leased or otherwise disposed of under one or more contracts
or as an entirety,  and without the  necessity of gathering at the place of sale
the property to be sold,  and in general in such manner,  at such time or times,
at such  place or places  and on such  terms as the  Collateral  Agent  may,  in
compliance with any mandatory  requirements  of applicable law,  determine to be
commercially reasonable.  Any of the Collateral may be sold, leased or otherwise
disposed  of, in the  condition  in which  the same  existed  when  taken by the
Collateral  Agent or after any overhaul or repair at the expense of the relevant
Assignor  which  the  Collateral   Agent  shall  determine  to  be  commercially
reasonable.  Any such sale, lease or other  disposition may be effected by means
of a public disposition or private disposition,  effected in accordance with the
applicable  requirements  (in  each  case if and to the  extent  applicable)  of
Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements
of applicable  law as may apply to the  respective  disposition.  The

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                                                                         Page 18

Collateral  Agent may,  without  notice or  publication,  adjourn  any public or
private  disposition  or cause  the same to be  adjourned  from  time to time by
announcement  at the  time  and  place  fixed  for  the  disposition,  and  such
disposition  may be made at any time or place to which the disposition may be so
adjourned.  To the  extent  permitted  by  any  such  requirement  of  law,  the
Collateral  Agent may bid for and become the  purchaser  (and may pay all or any
portion of the  purchase  price by  crediting  Obligations  against the purchase
price)  of the  Collateral  or any item  thereof,  offered  for  disposition  in
accordance  with  this  Section  7.2  without  accountability  to  the  relevant
Assignor.  If, under  applicable law, the Collateral Agent shall be permitted to
make disposition of the Collateral within a period of time which does not permit
the giving of notice to the  relevant  Assignor as  hereinabove  specified,  the
Collateral  Agent need give such  Assignor  only such notice of  disposition  as
shall be reasonably  practicable  in view of the  applicable  law. Each Assignor
agrees  to do or  cause  to be done all such  other  acts and  things  as may be
necessary to make such  disposition or dispositions of all or any portion of the
Collateral valid and binding and in compliance with any and all applicable laws,
regulations,  orders,  writs,  injunctions,  decrees  or  awards  of any and all
courts,  arbitrators  or  governmental  instrumentalities,  domestic or foreign,
having jurisdiction over any such sale or sales, all at such Assignor's expense.

          7.3 Waiver of Claims.  Except as otherwise provided in this Agreement,
EACH ASSIGNOR HEREBY WAIVES,  TO THE EXTENT  PERMITTED BY APPLICABLE LAW, NOTICE
AND JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT'S TAKING POSSESSION
OR THE  COLLATERAL  AGENT'S  DISPOSITION  OF ANY OF THE  COLLATERAL,  INCLUDING,
WITHOUT  LIMITATION,  ANY AND ALL PRIOR  NOTICE AND HEARING FOR ANY  PREJUDGMENT
REMEDY OR REMEDIES,  and each  Assignor  hereby  further  waives,  to the extent
permitted by law:

          (i) all damages  occasioned  by such taking of  possession or any such
     disposition  except  to the  extent  any  damages  are  the  result  of the
     Collateral Agent's gross negligence or willful misconduct (as determined by
     a court of competent jurisdiction in a final and non-appealable decision);

          (ii) all other requirements as to the time, place and terms of sale or
     other  requirements  with  respect  to the  enforcement  of the  Collateral
     Agent's rights hereunder; and

          (iii)  all  rights  of  redemption,  appraisement,   valuation,  stay,
     extension or moratorium  now or hereafter in force under any applicable law
     in order to  prevent  or delay the  enforcement  of this  Agreement  or the
     absolute sale of the Collateral or any portion thereof,  and each Assignor,
     for  itself  and all who may claim  under it,  insofar as it or they now or
     hereafter lawfully may, hereby waives the benefit of all such laws.

Any sale of, or the grant of options to purchase, or any other realization upon,
any Collateral  shall operate to divest all right,  title,  interest,  claim and
demand,  either  at law or in  equity,  of the  relevant  Assignor  therein  and
thereto,  and shall be a perpetual  bar both at law and in equity  against  such
Assignor  and against any and all Persons  claiming or  attempting  to claim the
Collateral  so sold,  optioned  or realized  upon,  or any part  thereof,  from,
through and under such Assignor.

<PAGE>
                                                                         Page 19

          7.4  Application  of  Proceeds.  (a)  All   monies  collected  by  the
Collateral  Agent (or, to the extent the US Pledge  Agreement or the  Additional
Security  Documents  constituting  US  Security  Documents  require  proceeds of
collateral under such US Security Documents to be applied in accordance with the
provisions of this Agreement, the Pledgee under such other US Security Document)
upon any sale or other  disposition of the  Collateral,  together with all other
monies received by the Collateral Agent hereunder, shall be applied as follows:

          (i) first, to the payment of all amounts owing the Collateral Agent of
     the type  described in clauses  (iii),  (iv) and (v) of the  definition  of
     "Obligations";

          (ii)  second,  to the extent  proceeds  remain  after the  application
     pursuant to the  preceding  clause (i), to the payment of all amounts owing
     to the  Administrative  Agent of the type described in clauses (v) and (vi)
     of the definition of "Obligations";

          (iii)  third,  to the extent  proceeds  remain  after the  application
     pursuant  to the  preceding  clauses (i) and (ii),  an amount  equal to the
     outstanding  Primary  Obligations shall be paid to the Secured Creditors as
     provided in Section 7.4(e) hereof,  with each Secured Creditor receiving an
     amount equal to its outstanding Primary Obligations or, if the proceeds are
     insufficient  to pay in full all  such  Primary  Obligations,  its Pro Rata
     Share of the amount remaining to be distributed;

          (iv)  fourth,  to the extent  proceeds  remain  after the  application
     pursuant to the preceding clauses (i) through (iii),  inclusive,  an amount
     equal to the outstanding Secondary Obligations shall be paid to the Secured
     Creditors as provided in Section 7.4(e) hereof,  with each Secured Creditor
     receiving an amount equal to its outstanding  Secondary  Obligations or, if
     the  proceeds  are   insufficient   to  pay  in  full  all  such  Secondary
     Obligations,  its Pro Rata Share of the amount remaining to be distributed;
     and

          (v)  fifth,  to the  extent  proceeds  remain  after  the  application
     pursuant  to  the  preceding  clauses  (i)  through  (iv),  inclusive,  and
     following the  termination  of this Agreement  pursuant to Section  10.8(a)
     hereof, to the relevant Assignor or to whomever may be lawfully entitled to
     receive such surplus.

          (b) For  purposes of this  Agreement  (x) `Pro Rata Share" shall mean,
when  calculating a Secured  Creditor's  portion of any  distribution or amount,
that amount (expressed as a percentage and using the Dollar  Equivalent  thereof
in the case of an amount  expressed in a currency other than Dollars) equal to a
fraction  the  numerator  of which is the then  unpaid  amount  of such  Secured
Creditor's Primary Obligations or Secondary Obligations, as the case may be, and
the  denominator  of  which  is the  then  outstanding  amount  of  all  Primary
Obligations  or  Secondary  Obligations,  as  the  case  may  be,  (y)  "Primary
Obligations" shall mean (i) in the case of the Credit Document Obligations,  all
principal  of,  premium and interest  on, all Loans,  all Unpaid  Drawings,  the
Stated Amount on all outstanding  Letters of Credit and all Fees and (ii) in the
case  of the  Other  Obligations,  all  amounts  due  under  the  Interest  Rate
Protection  Agreements and the Other Hedging Agreements entitled to the benefits
of this Agreement (other than indemnities, fees (including,  without limitation,
attorneys'  fees) and similar  obligations and  liabilities)  and (z) "Secondary
Obligations" shall mean all Obligations other than Primary Obligations.

<PAGE>
                                                                         Page 20

          (c) When  payments  to the  Secured  Creditors  are based  upon  their
respective  Pro Rata  Shares,  the amounts  received by such  Secured  Creditors
hereunder  shall be applied (for  purposes of making  determinations  under this
Section 7.4 only) (i) first, to their Primary  Obligations  and (ii) second,  to
their Secondary  Obligations.  If any payment to any Secured Creditor of its Pro
Rata Share of any  distribution  would  result in  overpayment  to such  Secured
Creditor,  such excess  amount shall  instead be  distributed  in respect of the
unpaid Primary Obligations or Secondary Obligations,  as the case may be, of the
other Secured Creditors, with each Secured Creditor whose Primary Obligations or
Secondary Obligations, as the case may be, have not been paid in full to receive
an amount equal to such excess amount  multiplied by a fraction the numerator of
which is the unpaid Primary  Obligations or Secondary  Obligations,  as the case
may be, of such  Secured  Creditor  and the  denominator  of which is the unpaid
Primary Obligations or Secondary Obligations, as the case may be, of all Secured
Creditors entitled to such distribution.

          (d) Each of the Secured Creditors, by their acceptance of the benefits
hereof,  agrees and  acknowledges  that if the Lender Creditors are to receive a
distribution  on account of undrawn  amounts  with  respect to Letters of Credit
issued under the Credit  Agreement (which shall only occur after all outstanding
Loans and Unpaid  Drawings with respect to such Letters of Credit have been paid
in full),  such  amounts  shall be paid to the  Administrative  Agent  under the
Credit Agreement and held by it, for the equal and ratable benefit of the Lender
Creditors, as cash security for the repayment of Obligations owing to the Lender
Creditors  as such.  If any  amounts are held as cash  security  pursuant to the
immediately  preceding  sentence,  then upon the  termination of all outstanding
Letters of Credit,  and after the  application  of all such cash security to the
repayment of all Obligations  owing to the Lender  Creditors after giving effect
to the  termination  of all such Letters of Credit,  if there remains any excess
cash,  such excess cash shall be  returned  by the  Administrative  Agent to the
Collateral Agent for distribution in accordance with Section 7.4(a) hereof.

          (e) All payments required to be made hereunder shall be made (x) if to
the Lender Creditors, to the Administrative Agent under the Credit Agreement for
the account of the Lender Creditors,  and (y) if to the Other Creditors,  to the
trustee,  paying agent or other similar representative (each a "Representative")
for the Other Creditors or, in the absence of such a Representative, directly to
the Other Creditors.

          (f) For purposes of applying payments received in accordance with this
Section  7.4,  the  Collateral  Agent  shall be  entitled  to rely  upon (i) the
Administrative  Agent under the Credit Agreement and (ii) the Representative for
the Other Creditors or, in the absence of such a Representative,  upon the Other
Creditors  for a  determination  (which  the  Administrative  Agent,  each  such
Representative  for any Other Creditors or the Other Creditors,  as the case may
be and the Secured  Creditors  agree (or shall agree) to provide upon request of
the  Collateral  Agent) of the  outstanding  Primary  Obligations  and Secondary
Obligations owed to the Lender Creditors or the Other Creditors, as the case may
be.  Unless the  Collateral  Agent has  received  written  notice  from a Lender
Creditor or an Other Creditor to the contrary, the Administrative Agent and each
Representative,  in furnishing  information  pursuant to the preceding sentence,
the Collateral Agent, in acting  hereunder,  shall be entitled to assume that no
Secondary Obligations are outstanding.  Unless the Collateral Agent has received
written notice from an Other Creditor to the contrary,  the Collateral Agent, in
acting hereunder, shall be entitled to assume that no

<PAGE>
                                                                         Page 21

Interest Rate Protection Agreements and the Other Hedging Agreements entitled to
the benefits of this Agreement are in existence.

          (g) It is  understood  that the  Assignors  shall  remain  jointly and
severally  liable to the  extent of any  deficiency  between  the  amount of the
proceeds of the Collateral and the aggregate amount of the Obligations.

          (h) Notwithstanding anything to the contrary contained in this Section
7.4, it is understood that, until such time as CanCo is no longer subject to the
restrictions  contained  in the  relevant  Campbell  Can  Acquisition  Documents
restricting  CanCo from being  jointly  liable with the other  Assignors,  CanCo
shall not be jointly  and  severally  liable  with the other  Assignors  for any
deficiency  described  in  Section  7.4(g)  above to the  extent  such joint and
several liability is prohibited by such Campbell Can Acquisition Documents,  but
shall remain  liable to the extent of any  deficiency  between the amount of the
proceeds of the Collateral hereunder and the amount of its own Obligations.

          7.5 Remedies Cumulative. Each and every right, power and remedy hereby
specifically  given to the Collateral  Agent shall be in addition to every other
right,  power and remedy  specifically  given to the Collateral Agent under this
Agreement,  the other Secured Debt  Agreements  or now or hereafter  existing at
law, in equity or by statute and each and every right,  power and remedy whether
specifically  herein given or otherwise  existing may be exercised  from time to
time or simultaneously and as often and in such order as may be deemed expedient
by the  Collateral  Agent.  All  such  rights,  powers  and  remedies  shall  be
cumulative and the exercise or the beginning of the exercise of one shall not be
deemed a waiver  of the  right to  exercise  any  other or  others.  No delay or
omission of the  Collateral  Agent in the  exercise of any such right,  power or
remedy and no renewal or  extension of any of the  Obligations  shall impair any
such right,  power or remedy or shall be construed to be a waiver of any Default
or Event of Default or an  acquiescence  thereof.  No notice to or demand on any
Assignor in any case shall  entitle it to any other or further  notice or demand
in similar or other circumstances or constitute a waiver of any of the rights of
the Collateral Agent to any other or further action in any circumstances without
notice or demand. In the event that the Collateral Agent shall bring any suit to
enforce any of its rights  hereunder and shall be entitled to judgment,  then in
such  suit the  Collateral  Agent may  recover  reasonable  expenses,  including
reasonable  attorneys'  fees, and the amounts  thereof shall be included in such
judgment.

          7.6 Discontinuance of Proceedings.  In case the Collateral Agent shall
have instituted any proceeding to enforce any right,  power or remedy under this
Agreement by foreclosure,  sale,  entry or otherwise,  and such proceeding shall
have been discontinued or abandoned for any reason or shall have been determined
adversely  to the  Collateral  Agent,  then and in every such case the  relevant
Assignor,  the Collateral Agent and each holder of any of the Obligations  shall
be restored to their former  positions and rights  hereunder with respect to the
Collateral  subject to the security  interest created under this Agreement,  and
all rights,  remedies and powers of the Collateral Agent shall continue as if no
such proceeding had been instituted.

          8. INDEMNITY

<PAGE>
                                                                         Page 22

          8.1  Indemnity.  (a) Each  Assignor  jointly and  severally  agrees to
indemnify,  reimburse and hold the Collateral Agent, each other Secured Creditor
and their respective successors,  assigns, employees,  affiliates,  servants and
agents   (hereinafter   in  this  Section  8.1  referred  to   individually   as
"Indemnitee,"  and  collectively  as  "Indemnitees")  harmless  from any and all
liabilities,   obligations,   damages,  injuries,  penalties,  claims,  demands,
actions,  suits,  judgments  and any and all costs,  expenses  or  disbursements
(including  reasonable  attorneys'  fees and expenses) (for the purposes of this
Section 8.1 the foregoing are collectively called "expenses") of whatsoever kind
and nature imposed on, asserted against or incurred by any of the Indemnitees in
any way  relating to or arising out of this  Agreement,  any other  Secured Debt
Agreement or any other document executed in connection  herewith or therewith or
in  any  other  way  connected  with  the  administration  of  the  transactions
contemplated hereby or thereby or the enforcement of any of the terms of, or the
preservation  of any rights  under any  thereof,  or in any way  relating  to or
arising  out  of  the  manufacture,  ownership,  ordering,  purchase,  delivery,
control, acceptance, lease, financing,  possession,  operation, condition, sale,
return  or  other  disposition,  or use of the  Collateral  (including,  without
limitation, latent or other defects, whether or not discoverable), the violation
of the laws of any country,  state or other  governmental body or unit, any tort
(including,  without limitation, claims arising or imposed under the doctrine of
strict  liability,  or for or on account of injury to or the death of any Person
(including any Indemnitee),  or property  damage),  or contract claim;  provided
that no Indemnitee shall be indemnified  pursuant to this Section 8.1(a) for any
expenses to the extent caused by the gross  negligence or willful  misconduct of
such  Indemnitee (as determined by a court of competent  jurisdiction in a final
and non-appealable decision);  provided that the indemnity described above shall
not apply to any liabilities,  obligations,  losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses or disbursements incurred by, imposed
on or  assessed  as a result of, or arising out of, or in any way related to, or
by reason of any litigation,  proceeding or other action solely between or among
the Lenders (excluding, however, any liabilities,  obligations, losses, damages,
penalties,  claims, actions, judgments, suits, costs, expenses and disbursements
(all of which shall be covered by such  indemnity)  incurred  by,  imposed on or
assessed against the Administrative  Agent, the Collateral Agent or any of their
respective officers, directors, employees, affiliates, representatives or agents
as a result of, or arising out of, or in any way related to, or by reason of any
such litigation,  proceeding or action to which the Administrative  Agent or the
Collateral Agent (or any of their  respective  officers,  directors,  employees,
affiliates,  representatives  or agents) is a party in its  capacity as such) to
the extent (and only to the extent) that such  litigation,  proceeding  or other
action does not relate to, or arise  from,  any action or omission by Siligan or
any of its  Subsidiaries.  Each Assignor  agrees that upon written notice by any
Indemnitee of the  assertion of such a liability,  obligation,  damage,  injury,
penalty,  claim, demand,  action, suit or judgment,  the relevant Assignor shall
assume full  responsibility  for the defense thereof.  Each Indemnitee agrees to
use its best  efforts to  promptly  notify  the  relevant  Assignor  of any such
assertion of which such Indemnitee has knowledge.

          (b) Without  limiting the  application of Section 8.1(a) hereof,  each
Assignor agrees, jointly and severally, to pay or reimburse the Collateral Agent
for any and all reasonable  fees,  costs and expenses of whatever kind or nature
incurred in  connection  with the  creation,  preservation  or protection of the
Collateral   Agent's  Liens  on,  and  security  interest  in,  the  Collateral,
including,  without  limitation,  all fees  and  taxes  in  connection  with the
recording or filing of instruments and documents in public  offices,  payment or
discharge of any taxes or Liens upon or in respect of the  Collateral,  premiums
for insurance with respect to the Collateral and all

<PAGE>
                                                                         Page 23

other fees,  costs and expenses in connection  with  protecting,  maintaining or
preserving the Collateral and the Collateral  Agent's interest therein,  whether
through  judicial  proceedings or otherwise,  or in defending or prosecuting any
actions, suits or proceedings arising out of or relating to the Collateral.

          (c) Without  limiting the application of Section 8.1(a) or (b) hereof,
each Assignor  agrees,  jointly and severally,  to pay,  indemnify and hold each
Indemnitee harmless from and against any loss, costs, damages and expenses which
such Indemnitee may suffer,  expend or incur in consequence of or growing out of
any misrepresentation by any Assignor in this Agreement,  any other Secured Debt
Agreement or in any writing  contemplated by or made or delivered pursuant to or
in connection with this Agreement or any other Secured Debt Agreement.

          (d) If and to the extent that the  obligations  of any Assignor  under
this Section 8.1 are unenforceable  for any reason,  such Assignor hereby agrees
to make  the  maximum  contribution  to the  payment  and  satisfaction  of such
obligations which is permissible under applicable law.

          (e) Notwithstanding anything to the contrary contained in this Section
8.1, until such time as the CanCo  Restrictions  are no longer in effect,  CanCo
shall not be jointly  and  severally  liable  with the other  Assignors  for any
indemnity  obligations  under  this  Section  8.1 to the  extent  such joint and
several  liability is  prohibited  by such CanCo  Restrictions,  but will remain
obligated for indemnity obligations with respect to its own actions.

          8.2 Indemnity Obligations Secured by Collateral; Survival. Any amounts
paid  by  any  Indemnitee  as  to  which  such   Indemnitee  has  the  right  to
reimbursement  shall  constitute  Obligations  secured  by the  Collateral.  The
indemnity  obligations  of each  Assignor  contained  in this Article VIII shall
continue in full force and effect notwithstanding the full payment of all of the
other Obligations and  notwithstanding the full payment of all the Notes issued,
and Loans made,  under the Credit  Agreement,  the termination of all Letters of
Credit issued under the Credit  Agreement,  the termination of all Interest Rate
Protection  Agreements and Other Hedging  Agreements entered into with the Other
Creditors  and the  payment of all other  Obligations  and  notwithstanding  the
discharge thereof.

          9. DEFINITIONS

          The following  terms shall have the meanings  herein  specified.  Such
definitions shall be equally  applicable to the singular and plural forms of the
terms defined.

          "Account"  shall  mean any  "account"  as such term is  defined in the
Uniform  Commercial  Code as in  effect  on the date  hereof in the State of New
York,  and in any event shall include but shall not be limited to, all rights to
payment of any monetary  obligation,  whether or not earned by performance,  (i)
for  property  that has been or is to be sold,  leased,  licensed,  assigned  or
otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a
policy of  insurance  issued or to be issued,  (iv) for a  secondary  obligation
incurred or to be incurred, (v) for energy provided or to be provided,  (vi) for
the use or hire of a vessel under a charter or other contract, (vii) arising out
of the use of a credit or charge card or information contained on or for

<PAGE>
                                                                         Page 24

use with the card,  or (viii) as  winnings  in a lottery or other game of chance
operated  or  sponsored  by a State,  governmental  unit of a State,  or  person
licensed or authorized to operate the game by a State or governmental  unit of a
State.  Without  limiting the foregoing,  the term  "account"  shall include all
Health-Care-Insurance Receivables.

          "Administrative Agent" shall have the meaning provided in the recitals
to this Agreement.

          "Agreement"  shall have the meaning  provided  in the first  paragraph
hereof.

          "As-Extracted Collateral" shall mean "as-extracted collateral" as such
term is defined in the Uniform  Commercial  Code as in effect on the date hereof
in the State of New York.

          "Assignor"  shall have the meaning  provided in the first paragraph of
this Agreement.

          "Borrower"  shall have the meaning  provided  in the  recitals to this
Agreement.

          "CanCo"  shall  have the  meaning  provided  in the  recitals  to this
Agreement.

          "Cash  Collateral  Account"  shall  mean  a  cash  collateral  account
maintained  with, and in the sole dominion and control of, the Collateral  Agent
for the benefit of the Secured Creditors.

          "Chattel  Paper" shall mean "chattel paper" as such term is defined in
the Uniform  Commercial Code as in effect on the date hereof in the State of New
York.  Without  limiting the  foregoing,  the term "Chattel  Paper" shall in any
event include all Tangible Chattel Paper and all Electronic Chattel Paper.

          "Class"  shall  have the  meaning  provided  in  Section  10.2 of this
Agreement.

          "Co-Documentation  Agents"  shall  have the  meaning  provided  in the
recitals to this Agreement.

          "Co-Syndication  Agents"  shall  have  the  meaning  provided  in  the
recitals to this Agreement.

          "Collateral" shall have the meaning provided in Section 1.1(a) of this
Agreement.

          "Collateral  Agent"  shall  have the  meaning  provided  in the  first
paragraph of this Agreement.

          "Commercial  Tort Claims" shall mean  "commercial tort claims" as such
term is defined in the Uniform  Commercial  Code as in effect on the date hereof
in the State of New York.

          "Containers"  shall have the meaning  provided in the recitals to this
Agreement.

<PAGE>
                                                                         Page 25

          "Contract  Rights"  shall mean all rights of any  Assignor  under each
Contract,  including,  without limitation, (i) any and all rights to receive and
demand  payments under any or all Contracts,  (ii) any and all rights to receive
and compel  performance  under any or all  Contracts and (iii) any and all other
rights, interests and claims now existing or in the future arising in connection
with any or all Contracts.

          "Contracts"  shall mean all contracts  between any Assignor and one or
more  additional  parties  (including,  without  limitation,  any Interest  Rate
Protection  Agreements,  licensing  agreements and any  partnership  agreements,
joint venture  agreements,  operating  agreements and limited  liability company
agreements),  but  excluding  any contract  that is governed by a law other than
that of the United  States or any State  thereof to the extent that the terms of
any such  contract  prohibit the granting of a security  interest  therein which
would be enforceable under any such applicable foreign law.

          "Copyrights"  shall  mean any  United  States  copyright  owned by any
Assignor,  including any  registrations of any copyrights,  in the United States
Copyright Office or any foreign  equivalent  office,  as well as any application
for a  copyright  registration  now or  hereafter  made with the  United  States
Copyright Office or any foreign equivalent office by any Assignor.

          "Credit  Agreement" shall have the meaning provided in the recitals to
this Agreement.

          "Credit Document  Obligations"  shall have the meaning provided in the
definition of "Obligations" in this Article IX.

          "Default"  shall mean any event which with notice or lapse of time, or
both, would constitute an Event of Default.

          "Deposit  Accounts" shall mean all "deposit  accounts" as such term is
defined in the  Uniform  Commercial  Code as in effect on the date hereof in the
State of New York.

          "Documents"  shall  mean  "documents"  as such term is  defined in the
Uniform  Commercial  Code as in  effect  on the date  hereof in the State of New
York.

          "Electronic  Chattel Paper" shall mean  "electronic  chattel paper" as
such term is defined  in the  Uniform  Commercial  Code as in effect on the date
hereof in the State of New York.

          "Equipment"  shall mean any "equipment" as such term is defined in the
Uniform  Commercial  Code as in  effect  on the date  hereof in the State of New
York,  and in any  event,  shall  include,  but shall  not be  limited  to,  all
machinery, equipment,  furnishings, fixtures and vehicles now or hereafter owned
by any Assignor and any and all additions, substitutions and replacements of any
of the foregoing and all accessions thereto, wherever located, together with all
attachments,  components,  parts, equipment and accessories installed thereon or
affixed thereto.

<PAGE>
                                                                         Page 26

          "Event of  Default"  shall  mean any Event of  Default  under,  and as
defined  in,  the  Credit  Agreement  and  shall in any event  include,  without
limitation,  any payment default on any of the Obligations  after the expiration
of any applicable grace period.

          "Financial Asset" shall mean "financial asset" as such term is defined
in Section 8-102(a)(9) of the UCC.

          "General Intangibles" shall mean "general intangibles" as such term is
defined in the  Uniform  Commercial  Code as in effect on the date hereof in the
State of New York.

          "Goods"  shall mean  "goods"  as such term is  defined in the  Uniform
Commercial Code as in effect on the date hereof in the State of New York.

          "Health-Care-Insurance       Receivable"      shall      mean      any
"health-care-insurance  receivable"  as such  term  is  defined  in the  Uniform
Commercial Code as in effect on the date hereof in the State of New York.

          "Indemnitee" shall have the meaning provided in Section 8.1(a) of this
Agreement.

          "Instruments"  shall mean "instruments" as such term is defined in the
Uniform  Commercial  Code as in  effect  on the date  hereof in the State of New
York.

          "Inventory"  shall mean  merchandise,  inventory  and  goods,  and all
additions,  substitutions and replacements  thereof and all accessions  thereto,
wherever  located,  together with all goods,  supplies,  incidentals,  packaging
materials,   labels,   materials   and  any  other   items  used  or  usable  in
manufacturing,  processing,  packaging  or  shipping  same,  in  all  stages  of
production from raw materials through work in process to finished goods, and all
products  and  proceeds of whatever  sort and  wherever  located and any portion
thereof  which  may be  returned,  rejected,  reclaimed  or  repossessed  by the
Collateral Agent from any Assignor's  customers,  and shall specifically include
all  "inventory"  as such term is defined in the Uniform  Commercial  Code as in
effect on the date hereof in the State of New York.

          "Investment Property" shall mean "investment property" as such term is
defined in the  Uniform  Commercial  Code as in effect on the date hereof in the
State of New York.

          "Joint Lead Arrangers" shall have the meaning provided in the recitals
to this Agreement.

          "Letter-of-Credit Rights" shall mean "letter-of-credit rights" as such
term is defined in the Uniform  Commercial  Code as in effect on the date hereof
in the State of New York.

          "Lender  Creditors" shall have the meaning provided in the recitals to
this Agreement.

          "Lenders"  shall have the  meaning  provided  in the  recitals to this
Agreement.

<PAGE>
                                                                         Page 27

          "Liens"  shall mean any security  interest,  mortgage,  pledge,  lien,
claim, charge,  encumbrance,  title retention agreement,  lessor's interest in a
financing lease or analogous instrument, in, of, or on any Assignor's property.

          "Location" of any Assignor  shall mean such  Assignor's  "location" as
determined pursuant to Section 9-307 of the UCC.

          "Manufacturing"  shall have the meaning  provided  in the  recitals to
this Agreement.

          "Marks" shall mean all right,  title and interest in and to any United
States trademarks,  service marks and trade names now held or hereafter acquired
by any Assignor,  including any  registration or application for registration of
any  trademarks  and service  marks in the United  States  Patent and  Trademark
Office or in any  equivalent  foreign  office or the  equivalent  thereof in any
State of the United  States and any trade dress  including  logos,  trade names,
company names,  business names,  fictitious  names,  other business  identifiers
and/or designs used by any Assignor in the United States.

          "Obligations" shall mean and include all of the following:

          (i) the full  and  prompt  payment  when due  (whether  at the  stated
     maturity, by acceleration or otherwise) of all obligations, liabilities and
     indebtedness (including,  without limitation,  principal, premium, interest
     (including,  without  limitation,  all  interest  that  accrues  after  the
     commencement  of any  case,  proceeding  or other  action  relating  to the
     bankruptcy,  insolvency,   reorganization  or  similar  proceeding  of  any
     Assignor  or  any  Subsidiary  thereof  at  the  rate  provided  for in the
     respective documentation, whether or not a claim for post-petition interest
     is allowed in any such proceeding), reimbursement obligations under Letters
     of Credit,  fees,  costs and  indemnities)  of each  Assignor to the Lender
     Creditors,  whether now existing or hereafter  incurred under,  arising out
     of, or in  connection  with,  the  Credit  Agreement  and the other  Credit
     Documents to which such Assignor is a party (including, in the case of each
     Assignor  that  is a  Guarantor,  all  such  obligations,  liabilities  and
     indebtedness of such Assignor under the US Borrowers/Subsidiaries Guaranty)
     and the due  performance  and  compliance  by such Assignor with all of the
     terms,  conditions and agreements  contained in the Credit Agreement and in
     such  other  Credit  Documents  (all  such  obligations,   liabilities  and
     indebtedness  under this clause  (i),  except to the extent  consisting  of
     obligations,  liabilities  or  indebtedness  with respect to Interest  Rate
     Protection  Agreements or Other Hedging Agreements entitled to the benefits
     of this Agreement,  being herein  collectively  called the "Credit Document
     Obligations");

          (ii) the full and  prompt  payment  when due  (whether  at the  stated
     maturity, by acceleration or otherwise) of all obligations, liabilities and
     indebtedness  (including,  without  limitation,  all interest  that accrues
     after the commencement of any case,  proceeding or other action relating to
     the bankruptcy,  insolvency,  reorganization  or similar  proceeding of any
     Assignor  or  any  Subsidiary  thereof  at  the  rate  provided  for in the
     respective documentation, whether or not a claim for post-petition interest
     is  allowed in any such  proceeding)  owing by such  Assignor  to the Other
     Creditors  under,  or  with

<PAGE>
                                                                         Page 28

     respect to  (including,  in the case of each  Assignor that is a Guarantor,
     all such  obligations,  liabilities and indebtedness of such Assignor under
     the US  Borrowers/Subsidiaries  Guaranty),  each Interest  Rate  Protection
     Agreement  and Other  Hedging  Agreement  entitled to the  benefits of this
     Agreement, whether such Interest Rate Protection Agreement or Other Hedging
     Agreement is now in existence or hereafter arising, and the due performance
     and  compliance  by such  Assignor  with all of the terms,  conditions  and
     agreements  contained  therein  (all  such  obligations,   liabilities  and
     indebtedness described in this clause (ii) being herein collectively called
     the "Other Obligations");

          (iii) any and all sums  advanced by the  Collateral  Agent in order to
     preserve  the   Collateral  or  preserve  its  security   interest  in  the
     Collateral;

          (iv) in the event of any  proceeding for the collection or enforcement
     of any indebtedness,  obligations, or liabilities of such Assignor referred
     to in clauses  (i) and (ii)  above,  after an Event of  Default  shall have
     occurred and be continuing,  the reasonable expenses of retaking,  holding,
     preparing for sale or lease, selling or otherwise disposing of or realizing
     on the Collateral, or of any exercise by the Collateral Agent of its rights
     hereunder, together with reasonable attorneys' fees and court costs;

          (v) all amounts paid by any Indemnitee as to which such Indemnitee has
     the right to reimbursement under Section 8.1 of this Agreement; and

          (vi) all amounts owing to the Administrative  Agent pursuant to any of
     the Credit Documents in its capacity as such;

it being acknowledged and agreed that the "Obligations" shall include extensions
of credit of the types described above,  whether outstanding on the date of this
Agreement or extended from time to time after the date of this Agreement.

          "Other  Creditors"  shall have the meaning provided in the recitals of
this Agreement.

          "Other  Obligations" shall have the meaning provided in the definition
of "Obligations" in this Article IX.

          "Patents"  shall mean any United  States  patent to which any Assignor
now or hereafter has any right,  title or interest  therein,  and any divisions,
continuations  (including,  but  not  limited  to,  continuations-in-parts)  and
improvements  thereof, as well as any application for a United States patent now
or hereafter made by any Assignor.

          "Permits"  shall mean,  to the extent  permitted to be assigned by the
terms  thereof or by  applicable  law, all licenses,  permits,  rights,  orders,
variances, franchises or authorizations of or from any governmental authority or
agency.

          "Plastics"  shall have the meaning  provided  in the  recitals to this
Agreement.

<PAGE>
                                                                         Page 29

          "Primary  Obligations"  shall  have the  meaning  provided  in Section
7.4(b) of this Agreement.

          "Pro Rata Share" shall have the meaning  provided in Section 7.4(b) of
this Agreement.

          "Proceeds"  shall mean all  "proceeds"  as such term is defined in the
Uniform Commercial Code as in effect in the State of New York on the date hereof
and, in any event,  shall also  include,  but not be limited to, (i) any and all
proceeds  of any  insurance,  indemnity,  warranty  or  guaranty  payable to the
Collateral  Agent or any  Assignor  from time to time with respect to any of the
Collateral,  (ii) any and all payments (in any form  whatsoever) made or due and
payable to any Assignor  from time to time in connection  with any  requisition,
confiscation,  condemnation,  seizure  or  forfeiture  of all or any part of the
Collateral  by any  governmental  authority (or any person acting under color of
governmental  authority)  and (iii) any and all other  amounts from time to time
paid or payable under or in connection with any of the Collateral.

          "Registered  Organization"  shall  have the  meaning  provided  in the
Uniform Commercial Code as in effect in the State of New York.

          "Representative"  shall have the meaning provided in Section 7.4(e) of
this Agreement.

          "Required  Secured  Creditors"  shall  mean (i) at any  time  when any
Credit  Document  Obligations  are  outstanding or any Commitments or Letters of
Credit under the Credit Agreement exist, the Required Lenders (or, to the extent
provided in Section 12.12 of the Credit Agreement, each of the Lenders) and (ii)
at any time after all of the Credit Document  Obligations have been paid in full
in cash and all  Commitments  and Letters of Credit  under the Credit  Agreement
have been terminated and no further Commitments may be provided thereunder,  the
holders  of a  majority  of  the  outstanding  principal  amount  of  the  Other
Obligations.

          "Requisite  Creditors" shall have the meaning provided in Section 10.2
of this Agreement.

          "Secondary  Obligations"  shall have the  meaning  provided in Section
7.4(b) of this Agreement.

          "Secured Creditors" shall have the meaning provided in the recitals to
this Agreement.

          "Secured Debt Agreements"  shall mean and include this Agreement,  the
other Credit  Documents and the Interest Rate  Protection  Agreements  and Other
Hedging Agreements  entitled to the benefits of this Agreement entered into with
an Other Creditor.

          "Securities Intermediary" shall mean "securities intermediary" as such
term is defined in Section 8-102(a)(14) of the UCC.

          "Silgan"  shall have the  meaning  provided  in the  recitals  to this
Agreement.

<PAGE>
                                                                         Page 30

          "Software"  shall  mean  "software"  as such  term is  defined  in the
Uniform  Commercial  Code as in  effect  on the date  hereof in the State of New
York.

          "Supporting  Obligations"  shall mean any  "supporting  obligation" as
such term is defined  in the  Uniform  Commercial  Code as in effect on the date
hereof in the State of New York, now or hereafter  owned by any Assignor,  or in
which any Assignor has any rights,  and, in any event, shall include,  but shall
not be limited to all of such Assignor's rights in any Letter-of-Credit Right or
secondary  obligation  that  supports  the  payment or  performance  of, and all
security  for,  any  Account,  Chattel  Paper,  Document,   General  Intangible,
Instrument or Investment Property.

          "Tangible  Chattel Paper" shall mean "tangible  chattel paper" as such
term is defined in the Uniform  Commercial  Code as in effect on the date hereof
in the State of New York.

          "Termination  Date" shall have the meaning provided in Section 10.8(a)
of this Agreement.

          "Timber-to-be-Cut"  shall mean "timber-to-be-cut" as such term is used
in the Uniform  Commercial  Code as in effect on the date hereof in the State of
New York.

          "Trade Secret  Rights" shall have the meaning  provided in Section 5.1
of this Agreement.

          "UCC" shall mean the Uniform Commercial Code as in effect from time to
time in the relevant jurisdiction.

          10. MISCELLANEOUS

          10.1  Notices.  Except as  otherwise  specified  herein,  all notices,
requests,  demands or other  communications  to or upon the  respective  parties
hereto shall be sent or delivered by mail, telegraph,  telex, telecopy, cable or
courier  service and all such  notices and  communications  shall,  when mailed,
telegraphed,  telexed,  telecopied,  or cabled or sent by courier,  be effective
when deposited in the mails,  delivered to the telegraph company,  cable company
or overnight courier, as the case may be, or sent by telex or telecopier, except
that notices and  communications  to the Collateral  Agent or any Assignor shall
not be effective until received by the Collateral Agent or such Assignor, as the
case may be.  All  notices  and other  communications  shall be in  writing  and
addressed as follows:

          (a)   if to any Assignor, at :

                c/o Silgan Holdings Inc.
                4 Landmark Square
                Suite 400
                Stamford, CT 06901
                Tel: (203) 975-7110
                Fax: (203) 975-4598
                Attention: General Counsel

<PAGE>
                                                                         Page 31

          (b)   if to the Collateral Agent, at:

                Deutsche Bank AG New York Branch
                222 S. Riverside Plaza
                Chicago, Illinois 60606
                Tel: (312) 537-4231
                Fax: (312) 537-1324
                Attention: Marla Brefka Heller

          (c) if to any Lender  Creditor,  other than the Collateral  Agent,  at
such  address  as such  Lender  Creditor  shall  have  specified  in the  Credit
Agreement;

          (d) if to any Other  Creditor,  at such address as such Other Creditor
shall have specified in writing to Silgan and the Collateral Agent;

or at such other  address or  addressed to such other  individual  as shall have
been furnished in writing by any Person described above to the party required to
give notice hereunder.

          10.2 Waiver; Amendment.  Except as provided in Sections 10.8 and 10.13
hereof,  none of the terms and conditions of this Agreement,  any other Security
Document  or any  Guaranty  may be  changed,  waived,  modified or varied in any
manner  whatsoever unless in writing duly signed by each Assignor (or Guarantor,
as the case may be) directly affected thereby and the Collateral Agent (with the
written consent of the Required Secured Creditors);  provided, however, that any
change, waiver,  modification or variance affecting the rights and benefits of a
single Class of Secured  Creditors  (and not all Secured  Creditors in a like or
similar  manner)  also  shall  require  the  written  consent  of the  Requisite
Creditors of such affected Class.  For the purpose of this  Agreement,  the term
"Class" shall mean each class of Secured Creditors, i.e., whether (x) the Lender
Creditors  as  holders  of the  Credit  Document  Obligations  or (y) the  Other
Creditors  as the  holders  of the Other  Obligations.  For the  purpose of this
Agreement,  the term  "Requisite  Creditors" of any Class shall mean each of (x)
with respect to the Credit Document  Obligations,  the Required  Lenders (or, to
the extent  provided  in  Section  12.12 of the  Credit  Agreement,  each of the
Lenders), and (y) with respect to the Other Obligations, the holders of at least
a  majority  of  the  outstanding  principal  amount  of all  Other  Obligations
outstanding from time to time.

          10.3 Obligations Absolute.  The obligations of each Assignor hereunder
shall  remain in full  force and  effect  without  regard  to,  and shall not be
impaired  by,  (a)  any  bankruptcy,  insolvency,  reorganization,  arrangement,
readjustment,  composition,  liquidation or the like of such  Assignor;  (b) any
exercise  or  non-exercise,  or any  waiver  of,  any  right,  remedy,  power or
privilege  under or in  respect  of this  Agreement  or any other  Secured  Debt
Agreement; or (c) any amendment to or modification of any Secured Debt Agreement
or any security for any of the  Obligations;  whether or not such Assignor shall
have notice or knowledge of any of the foregoing.

          10.4 Successors and Assigns. This Agreement shall be binding upon each
Assignor  and its  successors  and assigns  (although no Assignor may assign its
rights and obligations hereunder except in accordance with the provisions of the
Secured Debt Agreements)

<PAGE>
                                                                         Page 32

and shall inure to the  benefit of the  Collateral  Agent and the other  Secured
Creditors  and  their  respective   successors  and  assigns.   All  agreements,
statements,  representations  and warranties  made by each Assignor herein or in
any certificate or other instrument  delivered by such Assignor or on its behalf
under this Agreement shall be considered to have been relied upon by the Secured
Creditors and shall survive the execution and delivery of this Agreement and the
other  Secured  Debt  Agreements  regardless  of any  investigation  made by the
Secured Creditors or on their behalf.

          10.5  Headings  Descriptive.  The headings of the several  sections of
this Agreement are inserted for convenience only and shall not in any way affect
the meaning or construction of any provision of this Agreement.

          10.6 GOVERNING LAW; SUBMISSION TO JURISDICTION;  VENUE; WAIVER OF JURY
TRIAL.  (a)  THIS  AGREEMENT  AND THE  RIGHTS  AND  OBLIGATIONS  OF THE  PARTIES
HEREUNDER  SHALL BE CONSTRUED IN  ACCORDANCE  WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK,  WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES.  ANY
LEGAL ACTION OR  PROCEEDING  WITH RESPECT TO THIS  AGREEMENT OR ANY OTHER CREDIT
DOCUMENT  MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES FOR THE SOUTHERN  DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN
THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS  AGREEMENT,  EACH
ASSIGNOR HEREBY  IRREVOCABLY  ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY,  THE NON-EXCLUSIVE  JURISDICTION OF THE AFORESAID
COURTS.  EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
COURTS LACK PERSONAL JURISDICTION OVER SUCH ASSIGNOR, AND AGREES NOT TO PLEAD OR
CLAIM IN ANY LEGAL ACTION OR  PROCEEDING  WITH RESPECT TO THIS  AGREEMENT OR ANY
OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT
LACKS  PERSONAL   JURISDICTION   OVER  SUCH  ASSIGNOR.   EACH  ASSIGNOR  FURTHER
IRREVOCABLY  CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH  ACTION OR  PROCEEDING  BY THE  MAILING OF COPIES  THEREOF BY
REGISTERED  OR CERTIFIED  MAIL,  POSTAGE  PREPAID,  TO ANY SUCH  ASSIGNOR AT ITS
ADDRESS FOR NOTICES AS PROVIDED IN SECTION  10.1 ABOVE,  SUCH  SERVICE TO BECOME
EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH ASSIGNOR HEREBY  IRREVOCABLY  WAIVES
ANY  OBJECTION  TO SUCH  SERVICE OF PROCESS AND FURTHER  IRREVOCABLY  WAIVES AND
AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING  COMMENCED HEREUNDER OR
UNDER ANY OTHER  CREDIT  DOCUMENT  THAT SUCH  SERVICE OF PROCESS  WAS IN ANY WAY
INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL
AGENT UNDER THIS  AGREEMENT,  OR ANY SECURED  CREDITOR,  TO SERVE PROCESS IN ANY
OTHER MANNER  PERMITTED  BY LAW OR TO COMMENCE  LEGAL  PROCEEDINGS  OR OTHERWISE
PROCEED AGAINST ANY ASSIGNOR IN ANY OTHER JURISDICTION.

          (b) EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY

<PAGE>
                                                                         Page 33

OBJECTION  WHICH IT MAY NOW OR  HEREAFTER  HAVE TO THE LAYING OF VENUE OF ANY OF
THE AFORESAID  ACTIONS OR PROCEEDINGS  ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT  OR ANY OTHER  CREDIT  DOCUMENT  BROUGHT IN THE COURTS  REFERRED TO IN
CLAUSE (a) ABOVE AND HEREBY FURTHER  IRREVOCABLY  WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT  THAT ANY SUCH  ACTION OR  PROCEEDING  BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

          (c) EACH OF THE PARTIES TO THIS AGREEMENT  HEREBY  IRREVOCABLY  WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,  PROCEEDING OR COUNTERCLAIM  ARISING
OUT OF OR  RELATING  TO  THIS  AGREEMENT,  THE  OTHER  CREDIT  DOCUMENTS  OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          10.7  Assignor's  Duties.  It is  expressly  agreed,  anything  herein
contained  to the  contrary  notwithstanding,  that each  Assignor  shall remain
liable to perform all of the obligations,  if any, assumed by it with respect to
the  Collateral  and the  Collateral  Agent  shall not have any  obligations  or
liabilities  with respect to any  Collateral by reason of or arising out of this
Agreement, nor shall the Collateral Agent be required or obligated in any manner
to perform or fulfill  any of the  obligations  of each  Assignor  under or with
respect to any Collateral.

          10.8  Termination;  Release.  (a) After  the  Termination  Date,  this
Agreement  shall  terminate  (provided  that all  indemnities  set forth  herein
including,  without  limitation,  in  Section  8.1  hereof  shall  survive  such
termination)  and the  Collateral  Agent,  at the  request  and  expense  of the
respective Assignor, will promptly execute and deliver to such Assignor a proper
instrument  or  instruments   (including  Uniform  Commercial  Code  termination
statements on Form UCC-3) acknowledging the satisfaction and termination of this
Agreement,  and will duly assign, transfer and deliver to such Assignor (without
recourse and without any  representation  or warranty) such of the Collateral as
may be in the possession of the Collateral Agent and as has not theretofore been
sold or otherwise  applied or released  pursuant to this  Agreement.  As used in
this  Agreement,  "Termination  Date"  shall  mean the date upon which the Total
Commitment  and all  Interest  Rate  Protection  Agreements  and  Other  Hedging
Agreements  entitled to the benefits of this Agreement have been terminated,  no
Note, Loan or Letter of Credit is outstanding and all other  Obligations  (other
than indemnities  described in Section 8.1 hereof and described in Section 12.13
of the  Credit  Agreement,  and any  other  indemnities  set  forth in any other
Security  Documents,  in each case which are not then due and payable) have been
paid in full in cash.

          (b) In the event that any part of the Collateral is sold in connection
with a sale  permitted by Section  8.02 of the Credit  Agreement or is otherwise
released at the direction of the Required  Secured  Creditors,  such  Collateral
shall be sold or released free and clear of the Liens created by this  Agreement
and the  Collateral  Agent,  at the request and expense of such  Assignor,  will
execute and deliver  such  documentation  to evidence  such  release ( including
UCC-3  termination or partial release  statements and the like) and will assign,
transfer  and  deliver  to such  Assignor  (without  recourse  and  without  any
representation  or  warranty)  such of the  Collateral  as is then being (or has
been) so sold or  released  and as may be in the  possession  of the  Collateral
Agent and has not theretofore been released pursuant to this Agreement.

<PAGE>
                                                                         Page 34

          (c)  In  the  event  that  all of the  capital  stock  of one or  more
Assignors is sold or otherwise  disposed of or liquidated in compliance with the
requirements  of  Section  8.02 of the Credit  Agreement  (or such sale or other
disposition or liquidation has been approved in writing by the Required  Secured
Creditors),  upon the consummation of such sale, disposition or liquidation such
Assignor shall be released from this Agreement and this Agreement  shall,  as to
each such Assignor or Assignors,  terminate, and have no further force or effect
(it being  understood  and agreed that the sale of one or more Persons that own,
directly or  indirectly,  all of the capital stock or other equity  interests of
any Assignor  shall be deemed to be a sale of such  Assignor for the purposes of
this Section 10.8(c)).

          (d) At any time that the respective  Assignor  desires that Collateral
be released as provided in the foregoing  Section 10.8(a),  (b) or (c), it shall
deliver to the Collateral Agent a certificate signed by an authorized officer of
such Assignor stating that the release of the respective Collateral is permitted
pursuant to Section 10.8(a), (b) or (c) hereof.

          (e) The  Collateral  Agent shall have no liability  whatsoever  to any
other  Secured  Creditor  as the result of any  release of  Collateral  by it in
accordance with this Section 10.8.

          10.9  Counterparts.  This  Agreement  may be executed in any number of
counterparts and by the different parties hereto on separate counterparts,  each
of which when so executed and delivered  shall be an original,  but all of which
shall together  constitute one and the same  instrument.  A set of  counterparts
executed by all the parties  hereto  shall be lodged with each  Assignor and the
Collateral Agent.

          10.10   Severability.   Any  provision  of  this  Agreement  which  is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

          10.11  The  Collateral  Agent  and the other  Secured  Creditors.  The
Collateral  Agent will hold in accordance  with this  Agreement all items of the
Collateral at any time received under this Agreement. It is expressly understood
and  agreed  that the  obligations  of the  Collateral  Agent as  holder  of the
Collateral and interests  therein and with respect to the  disposition  thereof,
and otherwise under this  Agreement,  are only those expressly set forth in this
Agreement and in the Credit Agreement.  The Collateral Agent shall act hereunder
on the terms and  conditions  set forth  herein  and in Section 11 of the Credit
Agreement.

          10.12 Benefit of Agreement.  This Agreement  shall be binding upon the
parties  hereto and their  respective  successors and assigns and shall inure to
the  benefit  of and be  enforceable  by  each  of the  parties  hereto  and its
successors and assigns.

          10.13  Additional  Assignors.  It is  understood  and agreed  that any
Subsidiary of Silgan that is required to execute a counterpart of this Agreement
after the date hereof pursuant to the  requirements  of the Credit  Agreement or
any other Credit Document shall  automatically  become an Assignor  hereunder by
executing a counterpart hereof and delivering the same to the

<PAGE>
                                                                         Page 35

Collateral  Agent.  Silgan  agrees  that it  shall  and  shall  cause  any  such
Subsidiary  that  becomes an Assignor  hereunder to (i) deliver  supplements  to
Annexes A through F hereto, inclusive, as are necessary to cause such Annexes to
be complete and accurate with respect to such  additional  Assignor on such date
and (ii) take all  actions as  specified  in this  Agreement  as would have been
taken by such Assignor had it been an original party to this Agreement,  in each
case with all documents  required above to be delivered to the Collateral  Agent
and with all documents and actions  required above to be taken to the reasonable
satisfaction of the Collateral Agent.

                                      *****

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed and delivered by their duly authorized officers as of
the date first above written.

                               SILGAN HOLDINGS INC.,
                               as an Assignor

                               By: /s/ Frank W. Hogan, III
                                   ---------------------------------------------
                                   Title: Senior Vice President, General Counsel
                                           and Secretary

                               SILGAN CONTAINERS CORPORATION
                               SILGAN PLASTICS CORPORATION
                               SILGAN CONTAINERS MANUFACTURING
                                   CORPORATION
                               SILGAN CAN COMPANY
                               SILGAN CORPORATION
                               SILGAN LLC
                               By: SILGAN CONTAINERS CORPORATION,
                                   as Manager
                               RXI PLASTICS, INC.
                               SILGAN CLOSURES CORPORATION
                               SILGAN CLOSURES LLC
                               SILGAN CLOSURES HOLDING COMPANY
                               SILGAN CLOSURES INTERNATIONAL
                                   HOLDING COMPANY
                               SILGAN EQUIPMENT COMPANY
                               SILGAN TUBES CORPORATION
                               SILGAN TUBES HOLDING COMPANY,
                               each as an Assignor

                                By: /s/ Frank W. Hogan, III
                                    -----------------------------------
                                    Title: Vice President and Secretary

<PAGE>

Accepted and Agreed to:

DEUTSCHE BANK AG NEW YORK BRANCH,
as Collateral Agent

By: /s/ Susan LeFevre
    ---------------------------------
    Title: Director

By: /s/ Evelyn Lazala
    ---------------------------------
    Title: Vice President

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