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  Best Buy Co., Inc.
   Second Amended and Restated
   Deferred Compensation Plan
   Master Plan Document

  Effective April 1, 1998
   Amended and Restated Effective July 1, 1999

  Copyright © 1998
 By Compensation Resource Group, Inc.
 All Rights Reserved  

  BEST BUY CO., INC.
 SECOND AMENDED AND RESTATED
 DEFERRED COMPENSATION PLAN  

  Effective April 1, 1998
 Amended and Restated Effective July 1, 1999
   Purpose  

    The purpose of this Plan is to provide specified benefits to a select group of management and highly compensated Employees and Directors who contribute
materially to the continued growth, development and future business success of Best Buy Co., Inc., a Minnesota corporation, and its subsidiaries. This Plan shall be unfunded for tax purposes
and for purposes of Title I of ERISA.

    The
Plan was initially adopted effective as of April 1, 1998. The Plan was amended and restated effective October 1, 1998 to (i) eliminate the ability of a
Participant to elect to defer Qualifying Gain from the exercise of an Eligible Stock Option, (ii) modify the vesting schedule applicable to a Participant's Company Matching Account to be
consistent with the vesting schedule applicable to the Company Retirement Savings Plan, retroactive to April 1, 1998, (iii) increase the maximum percentage of Base Annual Salary which
may be deferred effective as of January 1, 1999, and (iv) make other clarifying modifications. The Plan was subsequently amended and restated effective July 1, 1999 to
(i) allow Plan participants to change their investment elections monthly rather than quarterly, (ii) to reflect changes to the Measurement Funds, and (iii) to waive the deferral
requirement for any short-term disability benefits received by a Participant under any short-term disability plan maintained by the Participant's Employer.

  ARTICLE 1
   Definitions  

    For purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings:

    1.1 "Account
Balance" shall mean, with respect to a Participant, a credit on the records of the Company equal to the sum of (i) the Deferral Account balance,
(ii) the vested Company Contribution Account balance, (iii) the vested Company Matching Account balance and (iv) the Stock Option Account balance. The Account Balance, and each other
specified account balance, shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her
designated Beneficiary, pursuant to this Plan.

    1.2 "Annual
Deferral Amount" shall mean that portion of a Participant's Base Annual Salary, Bonus and Directors Fees that a Participant elects to have, and is deferred,
in accordance with Article 3, for any one Plan Year. In the event of a Participant's Retirement, Disability (if deferrals cease in accordance with Section 8.1), death or a Termination of
Employment prior to the end of a Plan Year, such year's Annual Deferral Amount shall be the actual amount withheld prior to such event.

    1.3 "Annual
Stock Option Amount" shall mean, with respect to a Participant for any one Plan Year, the amount of Qualifying Gains deferred on Eligible Stock Option
exercise in accordance with Section 3.7 of this Plan, calculated using the closing price of Stock as of the end of the business day of such Eligible Stock Option exercise.

    1.4 "Base
Annual Salary" shall mean the annual cash compensation relating to services performed during any calendar year, whether or not paid in such calendar year or
included on the Federal Income Tax Form W-2 for such calendar year, excluding bonuses, commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments, non-monetary
awards, directors fees and other fees, automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Employee's gross
income). Base Annual Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or non-qualified

2

plans
of any Employer and shall be calculated to include amounts not otherwise included in the Participant's gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans
established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash
to the Employee.

    1.5 "Beneficiary"
shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 9, that are entitled to receive
benefits under this Plan upon the death of a Participant.

    1.6 "Beneficiary
Designation Form" shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee
to designate one or more Beneficiaries.

    1.7 "Board"
shall mean the board of directors of the Company.

    1.8 "Bonus"
shall mean any compensation, in addition to Base Annual Salary relating to services performed during any calendar year, whether or not paid in such calendar
year or included on the Federal Income Tax Form W-2 for such calendar year, payable to a Participant as an Employee under any Employer's bonus and cash incentive plans, excluding stock options.

    1.9 "Change
in Control" shall mean the first to occur of any of the following events:

    (a) Any
"person" (as that term is used in Section 13 and 14(d)(2) of the Securities Exchange Act of 1934 ("Exchange Act")) becomes the beneficial owner (as that
term is used in Section 13(d) of the Exchange Act), directly or indirectly, of 50% or more of the Company's capital stock entitled to vote in the election of directors;

    (b) During
any period of not more than two consecutive years, not including any period prior to the adoption of this Plan, individuals who at the beginning of such
period constitute the board of directors of the Company, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction
described in clause (a), (c), (d) or (e) of this Section 1.9) whose election by the board of directors or nomination for election by the Company's stockholders was approved by a vote of
at least three-fourths (3/4ths) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority thereof;

    (c) The
shareholders of the Company approve any consolidation or merger of the Company, other than a consolidation or merger of the Company in which the holders of the
common stock of the Company immediately prior to the consolidation or merger hold more than 50% of the common stock of the surviving corporation immediately after the consolidation or merger;

    (d) The
shareholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company; or

    (e) The
shareholders of the Company approve the sale or transfer of all or substantially all of the assets of the Company to parties that are not within a "controlled
group of corporations" (as defined in Code Section 1563) in which the Company is a member.

    1.10 "Claimant"
shall have the meaning set forth in Section 14.1.

    1.11 "Code"
shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.

    1.12 "Committee"
shall mean the committee described in Article 12.

    1.13 "Company"
shall mean Best Buy Co., Inc., a Minnesota corporation, and any successor to all or substantially all of the Company's assets or business.

    1.14 "Company
Contribution Account" shall mean (i) the sum of the Participant's Company Contribution Amounts, plus or minus (ii) amounts credited or
debited in accordance with all the applicable crediting and debiting provisions of this Plan that relate to the Participant's Company

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Contribution
Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant's Company Contribution Account.

    1.15 "Company
Contribution Amount" shall mean, for any one Plan Year, the amount determined in accordance with Section 3.5.

    1.16 "Company
Matching Account" shall mean (i) the sum of all of a Participant's Company Matching Amounts, plus or minus (ii) amounts credited or debited
in accordance with all the applicable crediting and debiting provisions of this Plan that relate to the Participant's Company Matching Account, less (iii) all distributions made to the
Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant's Company Matching Account.

    1.17 "Company
Matching Amount" for any one Plan Year shall be the amount determined in accordance with Section 3.6.

    1.18 "Company
Stock Fund" shall mean a measurement fund which tracks the performance of the Stock, including any dividends declared on the Stock.

    1.19 "Company
Stock Option Deferral Trust" shall mean one or more trusts established pursuant to that certain Best Buy Co., Inc. Stock Option Deferral Trust
Agreement, dated as of April 1, 1998 between the Company and the trustee named therein, as amended from time to time.

    1.20 "Deduction
Limitation" shall mean the following described limitation on a benefit that may otherwise be distributable pursuant to the provisions of this Plan.
Except as otherwise provided, this limitation shall be applied to all distributions that are "subject to the Deduction Limitation" under this Plan. If the Company determines in good faith prior to a
Change in Control that there is a reasonable likelihood that any compensation paid to a Participant for a taxable year of the Employer would not be deductible by the Employer solely by reason of the
limitation under Code Section 162(m), then to the extent deemed necessary by the Company to ensure that the entire amount of any distribution to the Participant pursuant to this Plan prior to the
Change in Control is deductible, the Company may defer all or any portion of a distribution under this Plan. Any amounts deferred pursuant to this limitation shall continue to be credited/debited with
additional amounts in accordance with Section 3.11 below, even if such amount is being paid out in installments. The amounts so deferred and amounts credited thereon shall be distributed to the
Participant or his or her Beneficiary (in the event of the Participant's death) at the earliest possible date, as determined by the Company in good faith, on which the deductibility of compensation
paid or payable to the Participant for the taxable year of the Employer during which the distribution is made will not be limited by Section 162(m), or if earlier, the effective date of a Change in
Control. Notwithstanding anything to the contrary in this Plan, the Deduction Limitation shall not apply to any distributions made after a Change in Control.

    1.21 "Deferral
Account" shall mean (i) the sum of all of a Participant's Annual Deferral Amounts, plus or minus (ii) amounts credited or debited in
accordance with all the applicable crediting and debiting provisions of this Plan that relate to the Participant's Deferral Account, less (iii) all distributions made to the Participant or his
or her Beneficiary pursuant to this Plan that relate to his or her Deferral Account.

    1.22 "Director"
shall mean any member of the board of directors of any Employer.

    1.23 "Directors
Fees" shall mean the annual fees paid by any Employer, including retainer fees and meetings fees, as compensation for serving on the board of directors.

    1.24 "Disability"
shall mean a period of disability during which a Participant qualifies for permanent disability benefits under the Participant's Employer's long-term
disability plan, or, if a Participant does not participate in such a plan, a period of disability during which the Participant would have qualified for permanent disability benefits under such a plan
had the Participant been a participant in a plan, as determined in the sole discretion of the Committee. If the Participant's Employer does not sponsor such a plan, or discontinues to sponsor such a
plan, Disability shall be determined by the Committee in its sole discretion.

    1.25 "Disability
Benefit" shall mean the benefit set forth in Article 8.

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    1.26 "Election
Form" shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to make an
election under the Plan.

    1.27 "Eligible
Stock Option" shall mean one or more non-qualified stock option(s) granted under a plan or arrangement of any Employer permitting a Participant under
this Plan to defer gain with respect to such option.

    1.28 "Employee"
shall mean a person who is an employee of any Employer.

    1.29 "Employer(s)"
shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) whose Employees and/or Directors have been
selected by the Board to participate in the Plan.

    1.30 "ERISA"
shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time.

    1.31 "First
Plan Year" shall mean the period beginning April 1, 1998 and ending December 31, 1998.

    1.32 "401(k)
Plan" shall be that certain Best Buy Retirement Savings Plan, dated June 1, 1995 adopted by the Company, as it may be amended from time to time.

    1.33 "In-Service
Distribution" shall mean the payout set forth in Section 4.1.

    1.34 "Master
Trust" shall mean one or more trusts established pursuant to that certain Master Trust Agreement, dated as of April 1, 1998 between the Company and
the trustee named therein, as amended from time to time.

    1.35 "Participant"
shall mean any Employee or Director (i) who is selected to participate in the Plan, (ii) who elects to participate in the Plan,
(iii) who signs a Plan Agreement, an Election Form and a Beneficiary Designation Form, (iv) whose signed Plan Agreement, Election Form and Beneficiary Designation Form are accepted by
the Committee, (v) who commences participation in the Plan, and (vi) whose Plan Agreement has not terminated. A spouse or former spouse of a Participant shall not be treated as a
Participant in the Plan or have an Account Balance under the Plan, even if he or she has an interest in the Participant's benefits under the Plan as a result of applicable law or property settlements
resulting from legal separation or divorce.

    1.36 "Plan"
shall mean the Company's Deferred Compensation Plan, which shall be evidenced by this instrument and by each Plan Agreement, as they may be amended from
time to time.

    1.37 "Plan
Agreement" shall mean a written agreement, as may be amended from time to time, which is entered into by and among the Company, an Employer (if different
from the Company) and a Participant. Each Plan Agreement executed by a Participant, the Participant's Employer and the Company shall provide for the entire benefit to which such Participant is
entitled under the Plan; should there be more than one Plan Agreement, the Plan Agreement bearing the latest date of acceptance by the Company shall supersede all previous Plan Agreements in their
entirety and shall govern such entitlement. The terms of any Plan Agreement may be different for any Participant, and any Plan Agreement may provide additional benefits not set forth in the Plan or
limit the benefits otherwise provided under the Plan; provided, however, that any such additional benefits or benefit limitations must be agreed to by the Company, the Employer and the Participant.

    1.38 "Plan
Year" shall, except for the First Plan Year, mean a period beginning on January 1 of each calendar year and continuing through December 31 of
such calendar year.

    1.39 "Pre-Retirement
Survivor Benefit" shall mean the benefit set forth in Article 6.

5

 

    1.40 "Qualifying
Gain" shall mean the value accrued upon exercise of an Eligible Stock Option (i) using a Stock-for-Stock payment method and (ii) having
an aggregate fair market value in excess of the total Stock purchase price necessary to exercise the option under the Plan. In other words, the Qualifying Gain upon exercise of an Eligible Stock
Option equals the total market value of the shares (or share equivalent units) acquired minus the total stock purchase price. For example, assume a Participant elects to defer the Qualifying Gain
accrued upon exercise of an Eligible Stock Option to purchase 2000 shares of Stock at an exercise price of $20 per share, when Stock has a current fair market value of $25 per share. Using the
Stock-for-Stock payment method, the Participant would deliver or be deemed to deliver 1600 shares of Stock (worth $40,000), which the Participant has held for a minimum of six months, to exercise the
Eligible Stock Option and receive or be deemed to receive, in return, 1600 shares of Stock plus a Qualifying Gain (in this case, in the form of an unfunded and unsecured promise to pay money or
property in the future) equal to $10,000 (i.e., the current value of the remaining 400 shares of Stock).

    1.41 "Quarterly
Installment Method" shall be a quarterly installment payment over the number of quarters selected by the Participant in accordance with this Plan,
calculated as follows: The Account Balance of the Participant shall be calculated as of the close of business on the last business day of the quarter. The quarterly installment shall be calculated by
multiplying this balance by a fraction, the numerator of which is one, and the denominator of which is the remaining number of quarterly payments due the Participant. By way of example, if the
Participant elects a 40 quarter Annual Installment Method, the first payment shall be 1/40th of the Account Balance, calculated as described in this definition. The following quarter, the payment
shall be 1/39th of the Account Balance, calculated as described in this definition. Each quarterly installment shall be paid on or as soon as practicable after the last business day of the applicable
quarter. Unless the Committee determines otherwise, quarterly installment payments shall be drawn on a pro-rata basis from each of the applicable Measurement Funds used to determine amounts to be
credited or debited to the Participant's Account Balance pursuant to Section 3.11 below.

    1.42 "Retirement",
"Retire(s)" or "Retired" shall mean, with respect to an Employee, severance from employment from all Employers for any reason other than a leave of
absence, death or Disability on or after the attainment of age sixty (60); and shall mean with respect to a Director who is not an Employee, severance of his or her directorships with all Employers on
or after the attainment of age seventy (70). If a Participant is both an Employee and a Director, Retirement shall not occur until he or she Retires as both an Employee and a Director, which
Retirement shall be deemed to be a Retirement as a Director; provided, however, that such a Participant may elect, at least five years prior to Retirement and in accordance with the policies and
procedures established by the Committee, to Retire for purposes of this Plan at the time he or she Retires as an Employee, which Retirement shall be deemed to be a Retirement as an Employee.

    1.43 "Retirement
Benefit" shall mean the benefit set forth in Article 5.

    1.44 "Stock"
shall mean Best Buy Co., Inc. common stock, $0.10 par value, or any other equity securities of the Company designated by the Committee.

    1.45 "Stock
Option Account" shall mean the sum of (i) the Participant's Annual Stock Option Amounts, plus or minus (ii) amounts credited or debited in
accordance with all the applicable crediting and debiting provisions of this Plan that relate to the Participant's Stock Option Account, less (iii) all distributions made to the Participant or
his or her Beneficiary pursuant to this Plan that relate to the Participant's Stock Option Account.

    1.46 "Stock
Option Amount" shall mean, for any Eligible Stock Option, the amount of Qualifying Gains deferred in accordance with Section 3.7 of this Plan, calculated
using the closing price of Stock as of the end of the business day of exercise of such Eligible Stock Option.

    1.47 "Subsidiary
Stock Option Deferral Trust" shall mean one or more trusts established pursuant to that certain Best Buy Co., Inc. Stock Option Deferral Trust
Agreement for Best Buy Stores, L.P. Employees, dated as of April 1, 1998, as amended from time to time, and any other

6

trust
established by a subsidiary of the Company to hold Stock Option Amounts of Employees and Directors of such subsidiary.

    1.48 "Termination
Benefit" shall mean the benefit set forth in Article 7.

    1.49 "Termination
of Employment" shall mean the severing of employment with all Employers, or service as a Director of all Employers, voluntarily or involuntarily, for
any reason other than Retirement, Disability, death or an authorized leave of absence. If a Participant is both an Employee and a Director, a Termination of Employment shall occur only upon the
termination of the last position held; provided, however, that such a Participant may elect, at least five years before cessation of employment with all Employers and in accordance with the policies
and procedures established by the Committee, to be treated for purposes of this Plan as having experienced a Termination of Employment at the time he or she ceases employment with all Employers as an
Employee.

    1.50 "Trusts"
shall mean the Master Trust, the Company Stock Option Deferral Trust, and the Subsidiary Stock Option Deferral Trust(s).

    1.51 "Unforeseeable
Financial Emergency" shall mean an unanticipated emergency that is caused by an event beyond the control of the Participant that would result in
severe financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the
Participant's property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined
in the sole discretion of the Committee.

    1.52 "Years
of Service" shall mean the total number of years in which a Participant has been employed by one or more Employers, as defined in Article IV of the
401(k) Plan.

  ARTICLE 2
   Selection, Enrollment, Eligibility  

    2.1  Selection by Committee.  Participation in the Plan shall be limited to a
select group of management and highly compensated Employees and Directors of the Employers, as determined by the Committee in its sole discretion. From that group, the Committee shall select, in its
sole discretion, Employees and Directors to participate in the Plan.

    2.2  Enrollment Requirements.  As a condition to participation, each selected
Employee or Director shall complete, execute and return to the Committee a Plan Agreement, an Election Form and a Beneficiary Designation Form, all within 30 days after he or she is selected to
participate in the Plan. In addition, the Committee shall establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary.

    2.3  Eligibility; Commencement of Participation.  Provided an Employee or
Director selected to participate in the Plan has met all enrollment requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee
within the specified time period, that Employee or Director shall commence participation in the Plan (i) in the case of the First Plan Year, on the first day of the pay period within the First
Plan Year following the date on which the Employee or Director completes all enrollment requirements; or (ii) in the case of any subsequent Plan Year, on the first day of the pay period
commencing in the Plan Year following the date on which the Employee or
Director completes all enrollment requirements. If an Employee or a Director fails to meet all such requirements within the period required, in accordance with Section 2.2, that Employee or Director
shall not be eligible to participate in the Plan until the first day of the pay period commencing in the Plan Year following the delivery to and acceptance by the Committee of the required documents.

    2.4  Termination of Participation and/or Deferrals.  If the Committee determines
in good faith that a Participant no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such group is determined in accordance with Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the right, in its sole discretion, to (i) terminate any deferral election the Participant has made for the
remainder of the Plan Year in

7

which
the Participant's membership status changes, (ii) prevent the Participant from making future deferral elections and/or (iii) immediately distribute the Participant's then Account
Balance as a Termination Benefit subject to Article 7 and terminate the Participant's participation in the Plan.

  ARTICLE 3
   Deferral Commitments/Company Matching/Crediting/Taxes  

    3.1  Minimum Deferrals.  

    (a)  Base Annual Salary, Bonus and Directors Fees.  For each Plan Year, a
Participant may elect to defer, as his or her Annual Deferral Amount, Base Annual Salary, Bonus and/or Director's Fees in the following minimum amounts for each deferral elected:

	Deferral

	 	Minimum Amount

	Base Annual Salary	 	$	2,500
	Bonus	 	$	2,500
	Directors Fees	 	$	0

    If
an election is made for less than stated minimum amounts, or if no election is made, the amount deferred shall be zero.

    (b)  Stock Option Amount.  For each Eligible Stock Option exercised in accordance
with the terms of the applicable stock option plan, a Participant may elect to defer, as his or her Stock Option Amount, the following minimum amount of Qualifying Gain with respect to exercise of the
Eligible Stock Option:

	Deferral

	 	Minimum Amount

	Qualifying Gain	 	$	10,000

    Notwithstanding anything herein to the contrary, no election to defer gain upon an Eligible Stock Option exercise after September 30, 1998 will be
valid.

    3.2  Maximum Deferral.  

    (a)  Base Annual Salary, Bonus and Directors Fees.  For each Plan Year, a
Participant may elect to defer, as his or her Annual Deferral Amount, Base Annual Salary, Bonus and/or Directors Fees up to the following maximum percentages for each deferral elected:

	Deferral

	 	Maximum Amount

	Base Annual Salary	 	Prior to 1999 - 50%

After 1998 - 75%
	Bonus	 	100%
	Directors Fees	 	100%

    (b) Notwithstanding
the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, or in the case of the first Plan Year of the Plan
itself, the maximum Annual Deferral Amount, with respect to Base Annual Salary, Bonus and Directors Fees shall be limited to the amount of compensation not yet earned by the Participant as of the date
the Participant submits a Plan Agreement and Election Form to the Committee for acceptance.

    (c) For
each Eligible Stock Option, a Participant may elect to defer, as his or her Stock Option Amount, Qualifying Gain up to the following maximum percentage with
respect to exercise of the Eligible Stock Option:

	Deferral

	 	Maximum Amount

	Qualifying Gain	 	100%

    Notwithstanding anything herein to the contrary, no election to defer gain upon an Eligible Stock Option exercise after September 30, 1998 will be
valid.

8

    (d) Stock
Option Amounts may also be limited by other terms or conditions set forth in the stock option plan or agreement under which such options are granted.

    3.3  Election to Defer; Effect of Election Form.  

    (a)  First Plan Year.  In connection with a Participant's commencement of
participation in the Plan, the Participant shall make an irrevocable deferral election for the Plan Year in which the Participant commences participation in the Plan, along with such other elections
as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form must be completed and signed by the Participant, timely delivered to the Committee (in
accordance with Section 2.2 above) and accepted by the Committee.

    (b)  Subsequent Plan Years.  For each succeeding Plan Year, an irrevocable
deferral election for that Plan Year, and such other elections as the Committee deems necessary or desirable under the Plan, shall be made by timely delivering to the Committee, in accordance with its
rules and procedures, before the end of the Plan Year preceding the Plan Year for which the election is made, a new Election Form. If no such Election Form is timely delivered for a Plan Year,
the Annual Deferral Amount shall be zero for that Plan Year.

    (c)  Stock Option Deferral.  For an election to defer gain upon an Eligible Stock
Option exercise to be valid: (i) a separate Election Form must be completed and signed by the Participant with respect to the Eligible Stock Option; (ii) the Election Form must be timely
delivered to the Committee and accepted by the Committee at any time prior to the date the Participant exercises the Eligible Stock Option for the First Plan Year, and at least six (6) months
prior to the date the Participant exercises the Eligible Stock Option for each subsequent Plan Year; (iii) the Eligible Stock Option must be exercised using an
actual or phantom Stock-for-Stock payment method; and (iv) the Stock actually or constructively delivered by the Participant to exercise the Eligible Stock Option must have been owned by the
Participant during the entire six (6) month period prior to its delivery. In the event that the total Stock purchase price necessary to exercise the Eligible Stock Option exceeds the aggregate
fair market value of the Stock actually or constructively delivered by the Participant, the excess portion of the Eligible Stock Option shall be forfeited by the Participant. Notwithstanding anything herein to the contrary, no
election to defer gain upon an Eligible Stock Option exercise after September 30, 1998 will be
valid.

    (d)  Effect of Termination on Pending Election.  Upon the occurrence of a
Termination of Employment, any pending election shall be automatically terminated.

    3.4  Withholding of Annual Deferral Amounts.  For each Plan Year, the Base Annual
Salary portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Base Annual Salary payroll in equal amounts, as may be adjusted from time to time for increases and
decreases in Base Annual Salary. The Bonus and/or Directors Fees portion of the Annual Deferral Amount shall be withheld at the time the Bonus or Directors Fees are or otherwise would be paid to the
Participant, whether or not this occurs during the Plan Year itself.

    3.5  Company Contribution Amount.  For each Plan Year, the Company, in its sole
discretion, may, but is not required to, credit any amount it desires to any Participant's Company Contribution Account under this Plan, which amount shall be for that Participant the Company
Contribution Amount for that Plan Year. The amount so credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant
for a Plan Year may be zero, even though one or more other Participants receive a Company Contribution Amount for that Plan Year. The Company Contribution Amount, if any, shall be credited as of the
date(s) selected by the Company.

    3.6  Company Matching Amount.  For each Plan Year, the Company, in its sole
discretion, may, but is not required to, credit to each Participant's Company Matching Account a Company Matching Amount for any Plan Year equal to a percentage of all or a portion of the
Participant's Annual Deferral Amount for such Plan Year. Such Company Matching Amount may, but need not be, coordinated with any matching contribution made to the 401(k) Plan on the Participant's
behalf for the plan year of the 401(k) Plan that corresponds to the Plan Year. The Company Matching Amount, if any, shall be credited as of the date(s) selected by the Company, which may, but need not
be, the same date(s) that matching contributions are credited under the 401(k) Plan.

9

    3.7  Stock Option Amount.  Subject to any terms and conditions imposed by this
Plan and by the Committee, Participants may elect to defer, under the Plan, Qualifying Gains attributable to an Eligible Stock Option exercise. Stock Option Amounts shall be credited to the
Participant on the books of the Company at the time Stock would otherwise have been delivered to the Participant pursuant to the Eligible Stock Option exercise, but for the election to defer.

    3.8  Investment of Trust Assets.  The trustees of the Trusts shall be authorized,
upon written instructions received from the Committee or investment manager appointed by the Committee, to invest and reinvest the assets of the Trusts in accordance with the applicable trust
agreements, including the disposition of Stock and reinvestment of the proceeds in one or more investment vehicles designated by the Committee.

    3.9  Sources of Stock.  If Stock Option Amounts are credited under the Plan in
either the Company Stock Option Deferral Trust or any Subsidiary Stock Option Deferral Trust pursuant to Section 3.7 in connection with an Eligible Stock Option exercise, the shares underlying the
Stock Option Amounts so credited shall be counted against the number of shares reserved under such other plan, program or arrangement.

    3.10  Vesting.  

    (a) A
Participant shall at all times be 100% vested in his or her Deferral Account and Stock Option Account.

    (b) A
Participant shall be vested in his or her Company Contribution Account, if any, and any earnings credited thereon pursuant to Section 3.11 below, in accordance
with the vesting schedule established by the Company in its sole discretion and contained in his or her plan Agreement.

    (c) A
Participant shall be vested in his or her Company Matching Account, and any earnings credited thereon pursuant to Section 3.11 below, as follows: (i) with respect
to all benefits under this Plan other than the Termination Benefit, a Participant's vested Company Matching Account shall equal 100% of such Participant's Company Matching Account; and
(ii) with respect to the Termination Benefit, a Participant's Company Matching Account shall vest on the basis of the Participant's Years of Service at the time the Participant experiences a
Termination of Employment, in accordance with the following schedule:

	Years of Service at Date of

Termination of Employment

	 	Vested Percentage of

Company Matching Account

	Less than 2 years	 	0%
	2 years or more, but less than 3	 	20%
	3 years or more, but less than 4	 	40%
	4 years or more, but less than 5	 	60%
	5 years or more	 	100%

    (d) Notwithstanding
anything to the contrary contained in this Section 3.10, in the event of a Change in Control, a Participant's Company Contribution Account and
Company Matching Account shall immediately become 100% vested (if it is not already vested in accordance with the above vesting schedules).

    (e) Notwithstanding
subsection (d), the vesting schedule for a Participant's Company Contribution Account and Company Matching Account shall not be accelerated to the
extent that the Committee determines that such acceleration would cause the deduction limitations of Section 280G of the Code to become effective. In the event that all of a Participant's Company
Contribution Account and/or Company Matching Account is not vested pursuant to such a determination, the Participant may request independent verification of the Committee's calculations with respect
to the application of Section 280G. In such case, the Committee must provide to the Participant within 15 business days of such a request an opinion from a nationally recognized accounting firm
selected by the Participant (the "Accounting Firm"). The opinion shall state the Accounting Firm's opinion that any limitation in the vested percentage hereunder is necessary to avoid the limits of
Section 280G and contain supporting calculations. The cost of such opinion shall be paid for by the Company.

10

 

    3.11  Crediting/Debiting of Account Balances.  In accordance with, and subject
to, the rules and procedures that are established from time to time by the Committee, in its sole discretion, amounts shall be credited or debited to a Participant's Account Balance, which
solely for purposes of this Section 3.11 shall include the Participant's Company Contribution Account and Company Matching Account regardless of vesting status, in accordance with the following rules:

    (a)  Election of Measurement Funds.  Except as otherwise provided in Section
3.11(f) below, a Participant, in connection with his or her initial deferral election in accordance with Section 3.3(a) above, shall elect, on the Election Form, one or more Measurement
Fund(s) (as described in Section 3.11(c) below) to be used to determine the additional amounts to be credited or debited to his or her Account Balance for the first calendar month or portion
thereof in which the Participant commences participation in the Plan and continuing thereafter for each subsequent calendar month in which the Participant participates in the Plan, unless changed in
accordance with the next sentence. Except as otherwise provided in Section 3.11(f) below, commencing with the first calendar month that follows the Participant's commencement of participation
in the Plan and continuing thereafter for each subsequent calendar month in which the Participant participates in the Plan, no later than five days prior to the last business day of the calendar
month, the Participant may (but is not required to) elect, by submitting an Election Form to the Committee that is accepted by the Committee, to add or delete one or more Measurement Fund(s) to be
used to determine the additional amounts to be credited or debited to his or her Account Balance, or to change the portion of his or her Account Balance allocated to each previously or newly elected
Measurement Fund. If an election is made in accordance with the previous sentence, it shall apply to the next calendar month and continue thereafter for each subsequent calendar month in which the
Participant participates in the Plan, unless changed in accordance with the previous sentence

    (b)  Proportionate Allocation.  In making any election described in Section
3.11(a) above, the Participant shall specify on the Election Form, in increments of one percentage point (1%), the percentage of his or her Account Balance to be allocated to a Measurement Fund
(as if the Participant was making an investment in that Measurement Fund with that portion of his or her Account Balance).

    (c)  Measurement Funds.  Except as otherwise provided in Section 3.11(f) below,
the Participant may elect one or more of the following measurement funds, based on certain mutual funds (the "Measurement Funds"), for the purpose of crediting additional amounts to his or her Account
Balance:

	(1)
	Dreyfus
VIF Capital Appreciation Portfolio

	(2)
	Dreyfus
Stock Index Fund

	(3)
	Fidelity
VIP II Asset Manager Portfolio

	(4)
	Fidelity
High Income Portfolio

	(5)
	Fidelity
VIP Overseas Portfolio

	(6)
	Neuberger &
Berman Limited Maturity Bond Portfolio

	(7)
	Warburg
Pincus Small Company Growth Portfolio

	(8)
	Company
Stock Fund (only available upon exercise of an Eligible Stock Option to the extent of a Qualifying Gain deferral)

    As
necessary, the Committee may, in its sole discretion, discontinue, substitute or add a Measurement Fund. Each such action will take effect as of the first day of the calendar month
that follows by thirty (30) days the day on which the Committee gives Participants advance written notice of such change.

    (d)  Crediting or Debiting Method.  The performance of each elected Measurement
Fund (either positive or negative) will be determined by the Committee, in its reasonable discretion, based on the performance of the Measurement Funds themselves. A Participant's Account Balance
shall be credited or debited on a daily basis based on the performance of each Measurement Fund selected by the Participant, as determined by the Committee in its sole
discretion, as though (i) a

11

Participant's
Account Balance were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such calendar month, as of the close of business on the first
business day of such calendar month, at the closing price on such date; (ii) the portion of the Annual Deferral Amount that was actually deferred during any calendar month were invested in the
Measurement Fund(s) selected by the Participant, in the percentages applicable to such calendar month, no later than the close of business on the third business day after the day on which such amounts
are actually deferred from the Participant's Base Annual Salary through reductions in his or her payroll, at the closing price on such date; and (iii) any distribution made to a Participant
that decreases such Participant's Account Balance ceased being invested in the Measurement Fund(s), in the percentages applicable to such calendar month, no earlier than three business days prior to
the distribution, at the closing price on such date. The Participant's Company Matching Amount shall be credited to his or her Company Matching Account for purposes of this Section 3.11(d) as
of the close of business on the date(s) that matching contributions are credited under the 401(k) Plan. The Participant's Company Contribution Amount shall be credited to his or her Company
Contribution Account on any date(s) selected by the Company. The Participant's Annual Stock Option Amount(s) shall be credited to his or her Stock Option Account no later than the close of business on
the third business day after the day on which the Eligible Stock Option was exercised or otherwise disposed of.

    (e)  No Actual Investment.  Notwithstanding any other provision of this Plan that
may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant's election of any such Measurement Fund, the allocation to his or her Account
Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account Balance shall not be
considered or construed in any manner as an actual investment of his or her Account Balance in any such Measurement Fund. In the event that the Company or the trustees of the Trusts, in their own
discretion, decide to invest funds in any or all of the Measurement Funds, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant's
Account Balance shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trusts; the Participant shall at all times remain
an unsecured creditor of the Company, and where applicable, the Participant's Employer.

    (f)  Special Rule for Stock Option Amount.  Notwithstanding any other
provision of this Plan that may be interpreted to the contrary, a Participant shall automatically be invested in the Company Stock Fund upon exercise of an Eligible Stock Option to the extent of
Qualifying Gains deferral. Once the Stock Option Amount representing the Qualifying Gains deferral is credited to the Account Balance of a Participant, except as provided below, the Participant cannot
reallocate the Stock Option Amount from the Company Stock Fund to another Measurement Fund; provided, however, any Participant who has deferred Qualifying Gains upon an
Eligible Stock Option exercise prior to October 1, 1998, shall have until March 31, 1999 to elect to reallocate the Stock Option Account from the Company Stock Fund to one or more other
Measurement Fund(s) in accordance with the provisions of Section 3.11 hereof.

    3.12  FICA and Other Taxes.  

    (a)  Annual Deferral Amounts.  For each Plan Year in which an Annual Deferral
Amount is being withheld from a Participant, the Participant's Employer(s) shall withhold from that portion of the Participant's
Base Annual Salary and Bonus that is not being deferred, in a manner determined by the Employer(s), the Participant's share of FICA and other employment taxes on such Annual Deferral Amount. If
necessary, the Committee may reduce the Annual Deferral Amount in order to comply with this Section 3.12.

    (b)  Company Matching and Contribution Amounts.  When a Participant becomes
vested in a portion of his or her Company Matching Account or Company Contribution Account, the Participant's Employer(s) shall withhold from the Participant's Base Annual Salary and/or Bonus that is
not deferred, in a manner determined by the Employer(s), the Participant's share of FICA and other employment taxes. If necessary, the Committee may reduce the vested portion of the Participant's
Company Matching Account in order to comply with this Section 3.12.

12

    (c)  Annual Stock Option Amounts.  For each Plan Year in which an Annual Stock
Option Amount is being first credited to a Participant's Stock Option Account, the Participant's Employer(s) shall withhold from that portion of the Participant's Base Annual Salary, Bonus and
Qualifying Gains that are not being deferred, in a manner determined by the Employer(s), the Participant's share of FICA and other employment taxes on such Annual Stock Option Amount. If necessary,
the Committee may reduce the Annual Stock Option Amount in order to comply with this Section 3.12.

    3.13  Distributions.  The Company, or the trustees of the Trusts, shall withhold
from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld in connection with such payments, in amounts and in a
manner to be determined in the sole discretion of the Company and the trustees of the Trusts.

  ARTICLE 4
   In-Service Distribution; Unforeseeable Financial Emergencies  

    4.1  In-Service Distribution.  In connection with each election to defer an
Annual Deferral Amount, a Participant may irrevocably elect to receive a future "In-Service Distribution" from the Plan with respect to all or a portion of such Annual Deferral Amount. Subject to the
Deduction Limitation, the In-Service Distribution shall be a lump sum payment in an amount that is equal to the portion of the Annual Deferral Amount for which the Participant has elected to receive
an In-Service Distribution plus or minus amounts credited or debited in the manner provided in Section 3.11 above on that amount, determined at the time that the In-Service Distribution becomes
payable (rather than the date of a Termination of Employment). Subject to the Deduction Limitation and the other terms and conditions of this Plan, each In-Service Distribution elected shall be paid
out during a 60 day period commencing immediately after the last day of any Plan Year designated by the Participant that is at least five Plan Years after the Plan Year in which the Annual Deferral
Amount is actually deferred. By way of example, if a five year In-Service Distribution is elected for Annual Deferral Amounts that are deferred in the Plan Year commencing April 1, 1998, the
five year In-Service Distribution would become payable during a 60 day period commencing January 1, 2004.

    4.2  Other Benefits Take Precedence Over In-Service Distribution.  Should an
event occur that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral Amount, plus amounts credited or debited thereon, that is subject to an In-Service Distribution election
under Section 4.1 shall not be paid in accordance with Section 4.1 but shall be paid in accordance with the other applicable Article.

    4.3  Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies.  If
the Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the Committee to (i) suspend any deferrals required to be made by a Participant and/or
(ii) receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the Participant's Account Balance, calculated as if such Participant were receiving a Termination
Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved,
suspension shall take effect upon the date of approval and any
payout shall be made within 60 days of the date of approval. The payment of any amount under this Section 4.3 shall not be subject to the Deduction Limitation.

  ARTICLE 5
   Retirement Benefit  

    5.1  Retirement Benefit.  Subject to the Deduction Limitation, a Participant who
Retires shall receive, as a Retirement Benefit, his or her Account Balance.

    5.2  Payment of Retirement Benefit.  A Participant, in connection with his or her
commencement of participation in the Plan, shall elect on an Election Form to receive the Retirement Benefit in a lump sum or pursuant to a Quarterly Installment Method of 20, 40 or 60 quarters. If
the Participant's Account Balance at the time of Retirement is less than $10,000, the Committee, at its discretion, may allow the Retirement Benefit to be paid in a lump sum. The Participant may
annually change his or her election to an allowable alternative payout period by submitting a new Election Form to the Committee, provided that any such Election Form is submitted at least 3 years
prior to the Participant's

13

Retirement
and is accepted by the Committee in its sole discretion. The Election Form most recently accepted by the Committee shall govern the payout of the Retirement Benefit. If a Participant does
not make any election with respect to the payment of the Retirement Benefit, then such benefit shall be payable in a lump sum. The lump sum payment shall be made, or installment payments shall
commence, no later than 60 days after the last day of the Plan Year in which the Participant Retires. Any payment made shall be subject to the Deduction Limitation. Notwithstanding any other provision
of this Plan that may be interpreted to the contrary, all distributions from the Company Stock Fund must be paid in the form of Stock.

    5.3  Death Prior to Completion of Retirement Benefit.  If a Participant dies
after Retirement but before the Retirement Benefit is paid in full, the Participant's unpaid Retirement Benefit payments shall continue and shall be paid to the Participant's Beneficiary
(a) over the remaining number of quarters and in the same amounts as that benefit would have been paid to the Participant had the Participant survived, or (b) in a lump sum, if requested
by the Beneficiary and allowed in the sole discretion of the Committee, that is equal to the Participant's unpaid remaining Account Balance.

  ARTICLE 6
   Pre-Retirement Survivor Benefit  

    6.1  Pre-Retirement Survivor Benefit.  Subject to the Deduction Limitation, the
Participant's Beneficiary shall receive a Pre-Retirement Survivor Benefit equal to the Participant's Account Balance if the Participant dies before he or she Retires, experiences a Termination of
Employment or suffers a Disability.

    6.2  Payment of Pre-Retirement Survivor Benefit.  A Participant, in connection
with his or her commencement of participation in the Plan, shall elect on an Election Form whether the Pre-Retirement Survivor Benefit shall be received by his or her Beneficiary in a lump sum or
pursuant to a Quarterly Installment Method of 20 or 40 quarters. The Participant may annually change this election to an allowable alternative payout period by submitting a new Election Form to the
Committee, which form must be accepted by the Committee in its sole discretion. The Election Form most recently accepted by the Committee prior to the Participant's death shall govern the payout of
the Participant's Pre-Retirement Survivor Benefit. If a Participant does not make any election with respect to the payment of the Pre-Retirement Survivor Benefit, then such benefit shall be paid in a
lump sum. Despite the foregoing, if the Participant's Account Balance at the time of his or her death is less than $25,000, payment of the Pre-Retirement Survivor Benefit may be made, in the sole
discretion of the Committee, in a lump sum or pursuant to a Quarterly Installment Method of not more than 20 quarters. The lump sum payment shall be made, or installment payments shall commence, no
later than 60 days after the last day of the Plan Year in which the Committee is provided with proof that is satisfactory to the Committee of the Participant's death. Any payment made shall be subject
to the
Deduction Limitation. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, all distributions from the Company Stock Fund must be in the form of Stock.

  ARTICLE 7
   Termination Benefit  

    7.1  Termination Benefit.  Subject to the Deduction Limitation, the Participant
shall receive a Termination Benefit, which shall be equal to the Participant's Account Balance, if a Participant experiences a Termination of Employment prior to his or her Retirement, death or
Disability.

    7.2  Payment of Termination Benefit.  If the Participant's Account Balance at the
time of his or her Termination of Employment is less than $25,000, payment of his or her Termination Benefit shall be paid in a lump sum. If his or her Account Balance at such time is equal to or
greater than that amount, the Participant may request and the Committee, in its sole discretion, may allow the Termination Benefit to be paid in a lump sum or pursuant to a Quarterly Installment
Method of 20 quarters. The lump sum payment shall be made, or installment payments shall commence, no later than 60 days after the last day of the Plan Year in which the Participant experiences the
Termination of Employment. Any payment made shall be subject to the Deduction Limitation. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, all distributions
from the Company Stock Fund must be paid in the form of Stock.

14

 

  ARTICLE 8
   Disability Waiver and Benefit  

    8.1  Disability Waiver.  

    (a)  Waiver of Deferral.  A Participant who is determined by the Committee to be
suffering from a Disability shall be (i) excused from fulfilling that portion of the Annual Deferral Amount commitment that would otherwise have been withheld from a Participant's Base Annual
Salary, Bonus and/or Directors Fees for the Plan Year during which the Participant first suffers a Disability and (ii) excused from fulfilling any unexercised Stock Option Amount commitments. During
the period of Disability, the Participant shall not be allowed to make any additional deferral elections, but will continue to be considered a Participant for all other purposes of this Plan.

    (b)  Return to Work.  If a Participant returns to employment, or service as a
Director, with an Employer, after a Disability ceases, the Participant may elect to defer an Annual Deferral Amount and Stock Option Amount for the Plan Year following his or her return to employment
or service and for every Plan Year thereafter while a Participant in the Plan; provided such deferral elections are otherwise allowed and an Election Form is delivered to and accepted by the Committee
for each such election in accordance with Section 3.3 above.

    8.2  Continued Eligibility; Disability Benefit.  A Participant suffering a
Disability shall, for benefit purposes under this Plan, continue to be considered to be employed, or in the service of an Employer as a Director, and shall be eligible for the benefits provided for in
Articles 4, 5, 6 or 7 in accordance with the provisions of those Articles. Notwithstanding the above, the Committee shall have the right to, in its sole and absolute discretion and for purposes of
this Plan only, and must in the case of a Participant who is otherwise eligible to Retire, deem the Participant to have experienced a Termination of Employment, or in the case of a Participant who is
eligible to Retire, to have Retired, at any time (or in the case of a Participant who is eligible to Retire, as soon as practicable) after such Participant is determined to be suffering a Disability,
in which case the Participant shall receive a Disability Benefit equal to his or her Account Balance at the time of the Committee's determination; provided, however, that should the Participant
otherwise have been eligible to Retire, he or she shall be paid in accordance with Article 5. The Disability Benefit shall be paid in a lump sum within 60 days of the Committee's exercise of
such right. Any payment made shall be subject to the Deduction Limitation.

    8.3  Short-Term Disability Waiver.  If a Participant qualifies for and receives
short-term disability benefits under any short-term disability plan maintained by Participant's Employer, the Participant shall continue to be considered employed by the Employer for purposes of this
Plan and the Participant shall be excused from making deferrals under the Plan until the earlier of the date the short-term disability benefits expire or the Participant returns to a paid employment
status. Upon such expiration or return, deferrals shall resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the deferral election, if any, made for
that Plan Year. If no election was made for that Plan Year, no deferral shall be withheld.

  ARTICLE 9
   Beneficiary Designation  

    9.1  Beneficiary.  Each Participant shall have the right, at any time, to
designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated
under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates.

    9.2  Beneficiary Designation; Change; Spousal Consent.  A Participant shall
designate his or her Beneficiary by completing and signing the Beneficiary Designation Form, and returning it to the Committee or its designated agent. A Participant shall have the right to change a
Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Committee's rules and procedures, as in effect from time to time. If the
Participant names someone other than his or her spouse as a Beneficiary of at least fifty percent (50%) of the Participant's benefits, a spousal consent, in the form designated by the Committee, must
be signed by that

15

Participant's
spouse and returned to the Committee. Upon the acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The
Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death.

    9.3  Acknowledgment.  No designation or change in designation of a Beneficiary
shall be effective until received and acknowledged in writing by the Committee or its designated agent.

    9.4  No Beneficiary Designation.  If a Participant fails to designate a
Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant's benefits, then the
Participant's designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary
shall be payable to the executor or personal representative of the Participant's estate.

    9.5  Doubt as to Beneficiary.  If the Committee has any doubt as to the proper
Beneficiary to receive payments pursuant to this Plan, the Committee shall have the right, exercisable in its discretion, to cause the Company to withhold such payments until this matter is resolved
to the Committee's satisfaction.

    9.6  Discharge of Obligations.  The payment of benefits under the Plan to a
Beneficiary shall fully and completely discharge all Employers and the Committee from all further obligations under this Plan with respect to the Participant, and that Participant's Plan Agreement
shall terminate upon such full payment of benefits.

  ARTICLE 10
   Leave of Absence  

    10.1  Paid Leave of Absence.  If a Participant is authorized by the Participant's
Employer for any reason to take a paid leave of absence from the employment of the Employer, the Participant shall continue to be considered employed by the Employer and the Annual Deferral Amount
shall continue to be withheld during such paid leave of absence in accordance with Section 3.3.

    10.2  Unpaid Leave of Absence.  If a Participant is authorized by the
Participant's Employer for any reason to take an unpaid leave of absence from the employment of the Employer, the Participant shall continue to be considered employed by the Employer and the
Participant shall be excused from making deferrals until the earlier of the date the leave of absence expires or the Participant returns to a paid employment status. Upon such expiration or return,
deferrals shall resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the deferral election, if any, made for that Plan Year. If no election was made for
that Plan Year, no deferral shall be withheld.

  ARTICLE 11
   Termination, Amendment or Modification  

    11.1  Termination.  Although the Company anticipates that it will continue the
Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, the Company reserves the
right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with respect to any or all of the participating Employees and Directors, by action of its board of directors.
Upon the termination of the Plan with respect to the Employees and/or Directors of any Employer, the Plan Agreements of the affected Participants who are employed by that Employer, or in the service
of that Employer as Directors, shall terminate and their Account Balances, determined as if they had experienced a Termination of Employment on the date of Plan termination or, if Plan termination
occurs after the date upon which a Participant was eligible to Retire, then with respect to that Participant as if he or she had Retired on the date of Plan termination, shall be paid to the
Participants as follows: Prior to a Change in Control, if the Plan is terminated with respect to all of the Employees and/or Directors of an Employer, the Company shall have the right, in its sole
discretion, and notwithstanding any elections made by the Participant, to pay such benefits in a lump sum or pursuant to a Quarterly Installment Method of up to 60 quarters, with amounts credited and
debited during the installment period as provided herein. If the Plan is terminated with respect to less than all of the

16

Employees
and/or Directors of an Employer, the Company shall be required to pay such benefits in a lump sum. After a Change in Control, the Company shall be required to pay such benefits in a lump
sum. The termination of the Plan shall not adversely affect any benefits to which a Participant or Beneficiary has become entitled under the Plan as of the date of termination; provided however, that
the Company shall have the right to accelerate installment payments without a premium or prepayment penalty by paying the Account Balance in a lump sum or pursuant to a Quarterly Installment Method
using fewer quarters (provided that the present value of all payments that will have been received by a Participant at any given point of time under the different payment schedule shall equal or
exceed the present value of all payments that would have been received at that point in time under the original payment schedule).

    11.2  Amendment.  The Company may, at any time, amend or modify the Plan in whole
or in part by the action of its board of directors; provided, however, that: (i) no amendment or modification shall be effective to decrease or restrict the value of a Participant's Account Balance in
existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Termination of Employment as of the effective date of the amendment or modification or,
if the amendment or modification occurs after the date upon which the Participant was eligible to Retire, the Participant had Retired as of the effective date of the amendment or modification, and
(ii) no amendment or modification of this Section 11.2 or Section 12.2 of the Plan shall be effective. The amendment or modification of the Plan shall not adversely affect any benefits to which
a Participant or Beneficiary has become entitled under the Plan as of the date of the amendment or modification; provided, however, that the Company shall have the right to accelerate installment
payments by paying the Account Balance in a lump sum or pursuant to a Quarterly Installment Method using fewer quarters (provided that the present value of all payments that will have been received by
a Participant at any given point of time under the different payment schedule shall equal or exceed the present value of all payments that would have been received at that point in time under the
original payment schedule).

    11.3  Plan Agreement.  Despite the provisions of Sections 11.1 and 11.2 above, if
a Participant's Plan Agreement contains benefits or limitations that are not in this Plan document, the Company may only amend or terminate such provisions with the consent of the Participant.

    11.4  Effect of Payment.  The full payment of the applicable benefit under
Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all obligations to a Participant and his or her designated Beneficiaries under this Plan and the Participant's Plan Agreement shall
terminate.

  ARTICLE 12
   Administration  

    12.1  Committee Duties.  Except as otherwise provided in this Article 12,
this Plan shall be administered by a Committee which shall consist of the Board, or such committee as the Board shall appoint. Members of the Committee may be Participants under this Plan. The
Committee shall also have the discretion and authority to (i) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and
(ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan. Any individual serving on the Committee who is a Participant shall
not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or
the Company.

    12.2  Administration Upon Change In Control.  For purposes of this Plan, the
Company shall be the "Administrator" at all times prior to the occurrence of a Change in Control. Upon and after the occurrence of a Change in Control, the "Administrator" shall be an independent
third party selected by the trustee of the Master Trust and approved by the individual who, immediately prior to such event, was the Company's Chief Executive Officer or, if not so identified, the
Company's highest ranking officer (the "Ex-CEO"). The Administrator shall have the discretionary power to determine all questions arising in connection with the administration of the Plan and the
interpretation of the Plan and Trusts including, but not limited to benefit entitlement determinations; provided, however, upon and after the occurrence of a Change in Control, the Administrator shall
have no power to direct the investment of Plan assets or assets of the Trusts or select any investment manager or custodial firm for the Plan or Trusts. Upon and after the occurrence of a Change in
Control, the Company must: (1) pay

17

all
reasonable administrative expenses and fees of the Administrator; and (2) supply full and timely information to the Administrator or all matters relating to the Plan, the Trusts, the Participants
and their Beneficiaries, the Account Balances of the Participants, the date of circumstances of the Retirement, Disability, death or Termination of Employment of the Participants, and such other
pertinent information as the Administrator may reasonably require. Upon and after a Change in Control, the Administrator may be terminated (and a replacement appointed) by the trustee of the Master
Trust only with the approval of the Ex-CEO. Upon and after a Change in Control, the Administrator may not be terminated by the Company.

    12.3  Agents.  In the administration of this Plan, the Committee may, from time
to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may
be counsel to any Employer.

    12.4  Binding Effect of Decisions.  The decision or action of the Administrator
with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be
final and conclusive and binding upon all persons having any interest in the Plan.

    12.5  Indemnity of Committee.  The Company shall indemnify and hold harmless the
members of the Committee, and any Employee or agent to whom the duties of the Committee may be delegated, and the Administrator against any and all claims, losses, damages, expenses or liabilities
arising from any action or failure to act with respect to this Plan, except in the case of gross negligence or willful misconduct by the Committee, any of its members, any such Employee or the
Administrator.

    12.6  Employer Information.  To enable the Committee and/or Administrator to
perform its functions, the Company and each Employer shall supply full and timely information to the Committee and/or Administrator, as the case may be, on all matters relating to the compensation of
its Participants, the date and circumstances of the Retirement, Disability, death or Termination of Employment of its Participants, and such other pertinent information as the Committee or
Administrator may reasonably require.

  ARTICLE 13
   Other Benefits and Agreements  

    13.1  Coordination with Other Benefits.  The benefits provided for a Participant
and Participant's Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Participant's Employer. The Plan
shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

  ARTICLE 14
   Claims Procedures  

    14.1  Presentation of Claim.  Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as a "Claimant") may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such
Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant. All other
claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

    14.2  Notification of Decision.  The Committee shall consider a Claimant's claim
within a reasonable time, and shall notify the Claimant in writing:

    (a) that
the Claimant's requested determination has been made, and that the claim has been allowed in full; or

    (b) that
the Committee has reached a conclusion contrary, in whole or in part, to the Claimant's requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant:

18

     (i) the
specific reason(s) for the denial of the claim, or any part of it;

    (ii) specific
reference(s) to pertinent provisions of the Plan upon which such denial was based;

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

    (iv) an
explanation of the claim review procedure set forth in Section 14.3 below.

    14.3  Review of a Denied Claim.  Within 60 days after receiving a notice from the
Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Committee a written request for a review of the denial of
the claim. Thereafter, but not later than 30 days after the review procedure began, the Claimant (or the Claimant's duly authorized representative):

    (a) may
review pertinent documents;

    (b) may
submit written comments or other documents; and/or

    (c) may
request a hearing, which the Committee, in its sole discretion, may grant.

    14.4  Decision on Review.  The Committee shall render its decision on review
promptly, and not later than 60 days after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the
Committee's decision must be rendered
within 120 days after such date. Such decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

    (a) specific
reasons for the decision;

    (b) specific
reference(s) to the pertinent Plan provisions upon which the decision was based; and

    (c) such
other matters as the Committee deems relevant.

    14.5  Subsequent Action; Mandatory Arbitration.  

    (a)  Subsequent Action.  A Claimant's compliance with the foregoing provisions of
this Article 14 is a mandatory prerequisite to a Claimant's right to commence any subsequent action with respect to any claim for benefits under this Plan.

    (b)  Mandatory Arbitration.  Any controversy or claim arising out of or relating
to this Plan shall be resolved by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. Arbitration shall be by a single arbitrator
experienced in the matters at issue and selected by the parties in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitration shall be held in such place
in Minneapolis, Minnesota, as may be specified by the arbitrator (or any place agreed to by the parties and the arbitrator). The decision of the arbitrator shall be final and binding as to any matters
submitted under this Article 14; provided, however, if necessary, such decision may be enforced in any court having jurisdiction over the subject matter or over any of the parties to this Plan.
All costs and expenses incurred in connection with any such arbitration proceeding (including reasonable attorneys' fees) shall be borne by the party against which the decision is rendered. If the
arbitrator's decision is a compromise, the determination of which party or parties bears the costs and expenses incurred in connection with such arbitration proceeding shall be made by the arbitrator
on the basis of the arbitrator's assessment of the relative merits of the parties' positions.

  ARTICLE 15
   Trusts  

    15.1  Establishment of the Trusts.  

    (a)  In General.  The Company shall establish the Trusts.

19

 

    (b)  Master Trust.  The Company shall at least annually transfer over to the
Master Trust such assets as the Company determines, in its sole discretion, are necessary to provide, on a present value basis, for its respective future liabilities created with respect to the Annual
Deferral Amounts, Company Contribution Amounts, and Company Matching Amounts for the Participants for all periods prior to the transfer, as well as any debits and credits to the Participants' Account
Balances (excluding debits and credits to the Participant's Stock Option Account balance) for all periods prior to the transfer, taking into consideration the value of the assets in such Trust at the
time of the transfer.

    (c)  Company Stock Option Deferral Trust.  The Company shall at least annually
transfer over to the Company Stock Option Deferral Trust such assets as the Company determines, in its sole discretion, are necessary to provide, on a present value basis, for its respective future
liabilities created with respect to the Annual Stock Option Amounts for the Company's Participants for all periods prior to the transfer, as well as any debits and credits to the Participants' Account
Balances (excluding debits and credits to the Participant's Deferral Account balance, Company Contribution Account balance, and Company Matching Account balance) for all periods prior to the transfer,
taking into consideration the value of the assets in such Trust at the time of the transfer.

    (d)  Subsidiary Stock Option Deferral Trusts.  The Company shall at least
annually transfer over to the Subsidiary Stock Option Deferral Trust such assets as the Company determines, in its sole discretion, are necessary to provide, on a present value basis, for its
respective future liabilities created with respect to the Annual Stock Option Amounts for Participants who are Employees or Directors of any subsidiary of the Company, for all periods prior to the
transfer, as well as any debits and credits to such Participants' Account Balances (excluding debits and credits to the Participant's Deferral Account balance, Company Contribution Account balance,
and Company Matching Account balance) for all periods prior to the transfer, taking into consideration the value of the assets in such Trust at the time of the transfer.

    15.2  Interrelationship of the Plan and the Trusts.  The provisions of the Plan
and the Plan Agreement shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trusts shall govern the rights of the Company, the Participants,
and the creditors of the Company and, where applicable, creditors of Employers other than the Company, to the assets transferred to the Trusts. The Company shall at all times remain liable to carry
out its obligations under the Plan.

    15.3  Distributions From the Trusts.  The Company's obligations under the Plan
may be satisfied with assets of the Trusts distributed pursuant to the terms of the Trusts, and any such distribution shall reduce the Company's obligations under this Plan.

    15.4  Stock Transferred to the Trusts.  Notwithstanding any other provision of
this Plan, the Company Stock Option Deferral Trust, or any Subsidiary Stock Option Deferral Trust: (i) if assets of the Trusts are distributed to a Participant in a distribution which reduces
the Participant's Stock Option Account balance under this Plan, such distribution must be made in the form of Stock; and (ii) any Stock transferred to any such Trusts may not be otherwise
distributed or disposed of by the trustee (except pursuant to a valid election to reallocate from the Company Stock Fund made by a Participant in accordance with Section 3.11(f) hereof).

  ARTICLE 16
   Miscellaneous  

    16.1  Status of Plan.  The Plan is intended to be a plan that is not qualified
within the meaning of Code Section 401(a) and that "is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employee" within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted to the extent possible in a manner consistent
with that intent.

    16.2  Unsecured General Creditor.  Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of
the Company's assets shall be, and

20

remain,
the general, unpledged unrestricted assets of the Company. The Company's obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

    16.3  Employer Liability.  The Company's liability for the payment of benefits ,
and the obligation of any Employer, shall be defined only by the Plan and the Plan Agreement, as entered into between the Company, the Employer (if different from the Company) and a Participant.
Neither the Company nor an Employer shall have any obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement.

    16.4  Nonassignability.  Neither a Participant nor any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be
subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by
operation of law in the event of a Participant's or any other person's bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.

    16.5  Not a Contract of Employment.  The terms and conditions of this Plan shall
not be deemed to constitute a contract of employment between any Employer and the Participant. Such employment is hereby acknowledged to be an "at will" employment relationship that can be terminated
at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give a
Participant the right to be retained in the service of any Employer, either as an Employee or a Director, or to interfere with the right of any Employer to discipline or discharge the Participant at
any time.

    16.6  Furnishing Information.  A Participant or his or her Beneficiary will
cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and
the payments of benefits hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary.

    16.7  Terms.  Whenever any words are used herein in the masculine, they shall be
construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used herein in the singular or in the plural, they shall be construed as though they
were used in the plural or the singular, as the case may be, in all cases where they would so apply.

    16.8  Captions.  The captions of the articles, sections and paragraphs of this
Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

    16.9  Governing Law.  Subject to ERISA, the provisions of this Plan shall be
construed and interpreted according to the internal laws of the State of Minnesota without regard to its conflicts of laws principles.

    16.10  Notice.  Any notice or filing required or permitted to be given to the
Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Best
Buy Co., Inc.

Office of the General Counsel

7075 Flying Cloud Drive

Eden Prairie, MN 55344

with
a copy to:

Elliot
S. Kaplan, Esq.

Robins, Kaplan, Miller & Ciresi, L.L.P.

2800 LaSalle Plaza

800 LaSalle Avenue

Minneapolis, MN 55402

21

    Such
notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

    Any
notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant.

    16.11  Successors.  The provisions of this Plan shall bind and inure to the
benefit of the Company and, where applicable, the Participant's Employer, their respective successors and assigns, and the Participant and the Participant's designated Beneficiaries.

    16.12  Spouse's Interest.  The interest in the benefits hereunder of a spouse of
a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse's
will, nor shall such interest pass under the laws of intestate succession.

    16.13  Validity.  In case any provision of this Plan shall be illegal or invalid
for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted
herein.

    16.14  Incompetent.  If the Committee determines in its discretion that a benefit
under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person's property, the Committee may direct payment of such benefit
to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The Committee may require proof of minority, incompetence, incapacity or
guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant's Beneficiary, as the
case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.

    16.15  Court Order.  The Committee is authorized to make any payments directed by
court order in any action in which the Plan or the Committee has been named as a party. In addition, if a court determines that a spouse or former spouse of a Participant has an interest in the
Participant's benefits under the Plan in connection with a property settlement or otherwise, the Committee, in its sole discretion, shall have the right, notwithstanding any election made by a
Participant, to immediately distribute the spouse's or former spouse's interest in the Participant's benefits under the Plan to that spouse or former spouse.

    16.16  Distribution in the Event of Taxation.  

    (a)  In General.  If, for any reason, all or any portion of a Participant's
benefits under this Plan becomes taxable to the Participant prior to receipt, a Participant may petition the Committee before a Change in Control, or the Administrator of the Trusts after a Change in
Control, for a distribution of that portion of his or her benefit that has become taxable. Upon the grant of such a petition, which grant shall not be unreasonably withheld (and, after a Change in
Control, shall be granted), the Company shall distribute to the Participant immediately available funds in an amount equal to the taxable portion of his or her benefit (which amount shall not exceed a
Participant's unpaid Account Balance under the Plan). If the petition is granted, the tax liability distribution shall be made within 90 days of the date when the Participant's petition is granted.
Such a distribution shall affect and reduce the benefits to be paid under this Plan.

    (b)  Trusts.  If any of the Trusts terminate in accordance with Section
3.6(e) of such Trust and benefits are distributed from such Trust to a Participant in accordance with that Section, the Participant's benefits under this Plan shall be reduced to the extent of
such distributions.

    16.17  Insurance.  The Company, on its own behalf or on behalf of the trustees of
any of the Trusts, and, in its sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as the trustees may choose. The Company or the
trustees of any of the Trusts, as the case may be, shall be the sole owner and beneficiary of any such insurance. The Participant shall have no interest whatsoever in any such policy or policies, and
at the request of the Company shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Company
has applied for insurance.

22

    16.18  Legal Fees To Enforce Rights After Change in Control.  The Company is
aware that upon the occurrence of a Change in Control, the Board or the board of directors of a Participant's Employer (which might then be composed of new members) or a shareholder of the Company or
the Participant's Employer, or of any successor corporation might then cause or attempt to cause the Company, the Participant's Employer or such successor to refuse to comply with its obligations
under the Plan and might cause or attempt to cause the Company or the Participant's Employer to institute, or may institute, litigation seeking to deny Participants the benefits intended under the
Plan. In these circumstances, the purpose of the Plan could be frustrated. Accordingly, if, following a Change in Control, it should appear to any Participant that the Company, the Participant's
Employer or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder or, if the Company, such Employer or any other person takes any action
to declare the Plan void or unenforceable or institutes any litigation or other legal action designed to deny, diminish or to recover from any Participant the benefits intended to be provided, then
the Company irrevocably authorizes such Participant to retain counsel of his or her choice at the expense of the Company to represent such Participant in connection with the initiation or defense of
any litigation or other legal action, whether by or against the Company, the Participant's Employer or any director, officer, shareholder or other person affiliated with the Company, the Participant's
Employer or any successor thereto in any jurisdiction.

    IN
WITNESS WHEREOF, the Company has signed this Second Amended and Restated Plan document effective as of July 1, 1999.

	 	 	Best Buy Co., Inc., a Minnesota corporation
	 

 	 
 	 

By:	 

/s/ RICHARD M. SCHULZE   
 Richard M. Schulze

Chief Executive Officer

23

QuickLinks

Best Buy Co., Inc. Second Amended and Restated Deferred Compensation Plan Master Plan Document

Effective April 1, 1998 Amended and Restated Effective July 1, 1999

Copyright © 1998 By Compensation Resource Group, Inc. All Rights Reserved

BEST BUY CO., INC. SECOND AMENDED AND RESTATED DEFERRED COMPENSATION PLAN

Effective April 1, 1998 Amended and Restated Effective July 1, 1999 Purpose

ARTICLE 1 Definitions

ARTICLE 2 Selection, Enrollment, Eligibility

ARTICLE 3 Deferral Commitments/Company Matching/Crediting/Taxes

ARTICLE 4 In-Service Distribution; Unforeseeable Financial Emergencies

ARTICLE 5 Retirement Benefit

ARTICLE 6 Pre-Retirement Survivor Benefit

ARTICLE 7 Termination Benefit

ARTICLE 8 Disability Waiver and Benefit

ARTICLE 9 Beneficiary Designation

ARTICLE 10 Leave of Absence

ARTICLE 11 Termination, Amendment or Modification

ARTICLE 12 Administration

ARTICLE 13 Other Benefits and Agreements

ARTICLE 14 Claims Procedures

ARTICLE 15 Trusts

ARTICLE 16 MiscellaneousPREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

                         dated as of May 9, 2000

                              by and among

                        BPC HOLDING CORPORATION,

                 CHASE VENTURE CAPITAL ASSOCIATES, LLC,

                                   and

             THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
<PAGE>
                            TABLE OF CONTENTS

                                                                     PAGE

ARTICLE I DEFINED TERMS                                                1
     Section 1.1.  Defined Terms.......................................1
     Section 1.2.  Additional Terms....................................6
     Section 1.3.  Construction........................................7

ARTICLE II  PURCHASE AND SALE TERMS                                    7
     Section 2.1.  Purchase and Sale; Purchase Price...................7
     Section 2.2.  The Merger..........................................7
     Section 2.3.  The Closing.........................................7
     Section 2.4.  Payment and Delivery................................7
     Section 2.5.  Restrictive Legend..................................8
     Section 2.6.  Use of Proceeds.....................................8

ARTICLE III  CLOSING CONDITIONS                                        8
     Section 3.1.  Conditions of the Purchasers and the Company........8
     Section 3.1.1.  Execution of This Agreement and All Related
                     Documents.........................................8
     Section 3.1.2.  Issuance and Purchase of the Units................8
     Section 3.1.3.  Merger Effective; Amended and Restated
                     Certificate of Incorporation......................9
     Section 3.1.4.  Merger Consideration..............................9
     Section 3.1.5.  No Litigation, etc................................9
     Section 3.1.6.  Environmental Report..............................9
     Section 3.1.7.  Approvals, etc....................................9
     Section 3.1.10.  All Proceedings to be Satisfactory...............9
     Section 3.1.11.  Reasonable Satisfaction of Parties and Counsel...9
     Section 3.2.  Conditions of the Purchasers.......................10
     Section 3.2.1.  Representations and Warranties to be True
                and Correct; Certificate of Officer of the Company....10
     Section 3.2.2.  Supporting Documents.............................10
     Section 3.2.3.  Legal Opinion from Counsel for the Company.......11
     Section 3.2.4.  Delivery of SBA Forms............................11
     Section 3.2.5.  [Intentionally Omitted]..........................11
     Section 3.2.6.  Credit Facility..................................11
     Section 3.2.7.  The Merger.......................................11
     Section 3.3.   Conditions of the Company.........................12
     Section 3.3.1.  Representations and Warranties to be True and
                     Correct..........................................12
     Section 3.3.2.  The Merger.......................................12
     Section 3.4.  Conditions of Northwestern.........................12
     Section 3.4.1.  Purchase Permitted By Applicable Law, etc........12
     Section 3.4.2.  Private Placement Number.........................12
                                      (i)
<PAGE>
ARTICLE IV  REPRESENTATIONS AND WARRANTIES                            12
     Section 4.1.  Representations and Warranties of the Company......12
     Section 4.1.1.  Corporate Existence..............................13
     Section 4.1.2.  Power and Authority..............................13
     Section 4.1.3.  Enforceability, etc..............................13
     Section 4.1.4.  Capitalization...................................13
     Section 4.1.5.  Consents, Approvals and Non-Contravention........14
     Section 4.1.6.  Pro Forma Balance Sheet..........................15
     Section 4.1.7.  SEC Reports and Financial Statements.............15
     Section 4.1.8.  Material Adverse Change..........................15
     Section 4.1.9.  Events Subsequent to the Date of the Last
                     Financial Statement..............................15
     Section 4.1.10.  Absence of Undisclosed Liabilities..............16
     Section 4.1.11.  Taxes...........................................16
     Section 4.1.12.  Litigation......................................17
     Section 4.1.13.  Insurance.......................................17
     Section 4.1.14.  Conflicts of Interests..........................17
     Section 4.1.15.  Other Relationships.............................18
     Section 4.1.16.  Licenses; Compliance with Laws, Other
                      Agreements, etc.................................18
     Section 4.1.17.  Intellectual Property Rights and Government
                      Approvals.......................................18
     Section 4.1.18.  Investment Company Act..........................19
     Section 4.1.19.  Brokers, etc....................................19
     Section 4.1.20.  Private Sale....................................19
     Section 4.1.21.  Disclosure......................................19
     Section 4.1.23.  Customers and Suppliers.........................19
     Section 4.1.24.  Employee Matters and Benefits...................20
     Section 4.1.25.  Environmental Matters...........................22
     Section 4.1.26.  Lending Activities..............................23
     Section 4.1.27.  Title to Properties.............................24
     Section 4.1.28.  Condition and Sufficiency of Assets.............24
     Section 4.1.29.  Real Property...................................24
     Section 4.2.  [Intentionally Omitted]............................25

ARTICLE V  REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS           25
     Section 5.1.  Representations and Warranties of the Purchaser....25
     Section 5.1.1.  Power and Authority..............................25
     Section 5.1.2.  Enforceability, etc..............................25
     Section 5.1.3.  Purchase for Investment..........................26
     Section 5.1.4.  Financial Matters................................26
     Section 5.1.5.  Access to Personnel and Materials................26
     Section 5.1.6.  Brokers, etc.....................................26

ARTICLE VI  COVENANTS                                                 26
     Section 6.1.  [Intentionally Omitted]............................26
     Section 6.2.  Post-Closing Date Covenants of the Company.........26
     Section 6.2.1.  Use of Proceeds..................................26
                                      (ii)
<PAGE>
     Section 6.2.2.  Inspection of Property...........................26
     Section 6.2.3.  Compliance with Agreements.......................27
     Section 6.2.4.  Affirmative Covenants............................27
     Section 6.2.5.  SBIC Regulatory Provisions.......................28
     Section 6.2.6.  Regulatory Compliance Cooperation................28
     Section 6.2.7.  Further Assurances...............................29
     Section 6.2.8.  Reservation and Authorization of Common Stock....29
     Section 6.2.9.  Financial Statements; Information................29
     Section 6.2.10.  Form 1099.......................................30

ARTICLE VIA  REGISTRATION RIGHTS IN RESPECT OF REGISTRABLE
             SECURITIES                                               30
     Section 6A.1  Notice.............................................30
     Section 6A.2 Proration...........................................30
     Section 6A.3  Registration Procedures............................31
     Section 6A.4  Holdback on Sales..................................33
     Section 6A.5  Expenses...........................................33

ARTICLE VIB  [INTENTIONALLY OMITTED]                                  33

ARTICLE VIC  INDEMNIFICATION IN RESPECT OF REGISTRATION RIGHTS        33
     Section 6C.1  Indemnification by the Company.....................33
     Section 6C.2  Indemnification by the Sellers.....................34
     Section 6C.3  Notices of Claims, etc.............................35
     Section 6C.4  Contribution.......................................36

ARTICLE VII  TERMINATION                                              36
     Section 7.1.  Termination........................................36
     Section 7.2.  Effect of Termination..............................37

ARTICLE VIII  MISCELLANEOUS                                           37
     Section 8.1.  Payment of Costs and Expenses......................37
     Section 8.2.  [Intentionally Omitted]............................37
     Section 8.3.  Brokerage..........................................38
     Section 8.4.  [Intentionally Omitted]............................38
     Section 8.5.  Assignment; Parties in Interest....................38
     Section 8.6. Notices.............................................38
     Section 8.7.  No Waiver..........................................38
     Section 8.8.  Amendment..........................................38
     Section 8.9.  Survival of Representations, Warranties,
                   Covenants and Agreements...........................38
     Section 8.10.  Governing Law.....................................38
     Section 8.11.  Specific Performance..............................39
     Section 8.12.  Entire Understanding..............................39
                                   (iii)
<PAGE>
     Section 8.13.  Counterparts......................................39

EXHIBITS

Exhibit A Amended and Restated Certificate of Incorporation of the
        Company

Exhibit B Form of Warrant

Exhibit C-1 Form of Merger Agreement

Exhibit C-2 Form of Certificate of Merger

SCHEDULES

Schedule I Purchaser Information

Schedule II Addresses For Notice

Schedule III Capitalization Schedule of the Company

Schedule IV Consents Relating to the Purchasers
<PAGE>
             PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

     This PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT, dated as of May
9, 2000 (as amended or otherwise modified from time to time, this
"AGREEMENT"), is made by and among BPC HOLDING CORPORATION, a Delaware
corporation (the "COMPANY"), CHASE VENTURE CAPITAL ASSOCIATES, L.P., a
California limited partnership ("CVCA") and THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY ("NORTHWESTERN" and, together with CVCA, the
"PURCHASERS".)

                           W I T N E S E T H:

     WHEREAS, the Company intends to acquire Poly-Seal Corporation in a
merger transaction (the "MERGER"), and has formed a subsidiary, Berry
Plastics Acquisition Corporation, a Delaware corporation ("MERGERCO") in
connection therewith;

     WHEREAS, in order to provide a portion of the financing for the
consummation of the Merger, the Company proposes to enter into the
transactions contemplated by this Agreement;

     WHEREAS, the Purchasers desire to purchase an aggregate of
(i) 1,000,000 shares of Preferred Stock, and (ii) warrants in the form
attached hereto as EXHIBIT B entitling the holder or holders thereof to
purchase, on certain terms and conditions, an aggregate of 25,997 shares
of Class B Non-Voting Common Stock, at a purchase price of $0.01 per
share, subject to adjustment as provided therein (the "WARRANTS" and,
together with the Preferred Stock, the "PURCHASED SECURITIES"), all on
the terms and subject to the conditions set forth in this Agreement;

     WHEREAS, the Company desires to issue and sell the Purchased
Securities to the Purchasers, on the terms and subject to the conditions
set forth in this Agreement;

     NOW, THEREFORE, based upon the foregoing and the mutual covenants
and agreements herein contained, and for other good and sufficient
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

                                ARTICLE I

                              DEFINED TERMS

     Section 1.1.  DEFINED TERMS

     .  Capitalized terms used but not otherwise defined in this
Agreement shall have the meaning assigned to such terms in the Merger
Agreement.  When used in this Agreement, the following terms shall have
the following meanings:

     "AFFILIATE" means, with respect to any specified Person, any other
Person which, directly or indirectly, controls, is under common control
with, or is owned or controlled by, such specified Person.  For purposes
of this definition, (i) "control" means, with respect to any specified
Person, either (x) the beneficial ownership of more than 30 percent of
any class of equity securities or (y) the power to direct the management
or policies of the specified Person through the ownership of voting

<PAGE>
securities, by contract, voting agreement or otherwise, and (ii) the
terms "controlling", "control with" and "controlled by", etc., shall have
meanings correlative to the foregoing.

     "AMENDED AND RESTATED CERTIFICATE OF INCORPORATION" means the
Amended and Restated Certificate of Incorporation of the Company in the
form attached hereto as EXHIBIT A and filed in Delaware on the date
hereof, as amended from time to time in accordance with the requirements
hereof.

     "AMENDMENT TO STOCKHOLDERS AGREEMENT" means the First Amendment
dated as of May 9, 2000 to the Stockholders Agreement.

     "BERRY" means Berry Plastics Corporation, a wholly-owned subsidiary
of the Company.

     "BY-LAWS" means the by-laws of the Company, as amended from time to
time in accordance with the requirements hereof and thereof.

     "CERTIFICATE OF MERGER" means the Certificate of Merger, dated as of
the Closing Date, by and between Mergerco and Poly-Seal Corporation, in
substantially the form of EXHIBIT C-2 hereto.

     "CLASS A COMMON STOCK" means the Company's Class A Voting Common
Stock and Class A Non-Voting Common Stock.

     "CLASS A NON-VOTING COMMON STOCK" means the Company's Class A Non-
Voting Common Stock, par value $.01 per share.

     "CLASS A VOTING COMMON STOCK" means the Company's Class A Voting
Common Stock, par value $.01 per share.

     "CLASS B COMMON STOCK" means the Company's Class B Voting Common
Stock and Class B Non-Voting Common Stock.

     "CLASS B NON-VOTING COMMON STOCK" means the Company's Class B Non-
Voting Common Stock, par value $.01 per share.

     "CLASS B VOTING COMMON STOCK" means the Company's Class B Voting
Common Stock, par value $.01 per share.

     "CLASS C COMMON STOCK" means the Company's non-voting Class C Common
Stock, par value $.01 per share.

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

     "COMMON STOCK" means the Class A Common Stock, the Class B Common
Stock and the Class C Common Stock and any other classes of common stock
of the Company hereafter authorized in accordance with the requirements
hereof and of the Stockholders Agreement.

                                      2
<PAGE>
     "CREDIT FACILITY" means the Third Amended and Restated Financing and
Security Agreement by and among Berry Plastics Corporation, NIM Holdings
Limited, Berry Plastics UK Limited, Bank of America, N.A., Fleet Capital
Corporation, General Electric Capital Corporation, Heller Financial,
Inc., PNC Bank, National Association and Bank of America, N.A. dated as
of May 9, 2000, INCLUDING ANY RELATED NOTES, GUARANTEES, COLLATERAL
DOCUMENTS, INSTRUMENTS AND AGREEMENTS EXECUTED IN CONNECTION THEREWITH,
AND IN EACH CASE AS AMENDED, MODIFIED, RENEWED, REFUNDED, REPLACED OR
REFINANCED FROM TIME TO TIME WHICH INCLUDES THE ADDITION, SUBSTITUTION OR
REPLACEMENT OF ANY OR ALL LENDERS THEREUNDER UNDER THE SAME OR ANY
REPLACEMENT AGREEMENT.

     "DGCL" means the General Corporation Law of the State of Delaware.

     "ENVIRONMENTAL LAW" means any law which relates to or otherwise
imposes liability or standards of conduct concerning discharges,
emissions, releases or threatened releases of noises, odors or any
pollutants, contaminants or hazardous or toxic wastes, substances or
materials, whether as matter or energy, into ambient air, water, or land,
or otherwise relating to the manufacture, processing, generation,
distribution, use, treatment, storage, disposal, cleanup, transport or
handling of pollutants, contaminants, or hazardous or toxic wastes,
substances or materials, including the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 and the Superfund
Amendments and Reauthorization Act of 1986 (together, as amended,
"CERCLA"), the Resource Conservation and Recovery Act of 1976, as
amended, the Toxic Substances Control Act of 1976, as amended, the
Federal Water Pollution Control Act Amendments of 1972, the Clean Water
Act of 1977, as amended, any so-called "Superlien" law, and any other
similar Federal, state or local Law.

     "ENVIRONMENTAL PERMIT" means any permit, license, approval, consent
or other authorization required by or pursuant to any applicable
Environmental Law.

     "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended, or any successor law thereto.

     "EVENT OF NONCOMPLIANCE" has the meaning provided in the
Stockholders Agreement.

     "GOVERNMENTAL AUTHORITY" means the government of the United States
or any foreign country or any state or political subdivision thereof and
any entity, body or authority exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government.

     "HAZARDOUS MATERIAL" means

          (a) any "hazardous substance", as defined by CERCLA;

          (b) any "hazardous waste", as defined by the Resource
     Conservation and Recovery Act, as amended;

          (c) any petroleum product or fractions thereof; or

                                     3
<PAGE>
          (d) any pollutant or contaminant or hazardous, dangerous or
     toxic chemical, material or substance within the meaning of any
     other applicable Federal, state or local law, regulation, ordinance
     or requirement (including consent decrees and administrative orders)
     relating to or imposing liability or standards of conduct concerning
     any hazardous, toxic or dangerous waste, substance or material, all
     as now or at any time hereafter in effect.

     "HOLDER" means any Purchaser or any of its permitted successors and
assigns, other than the Company or any of its Subsidiaries holding any
Preferred Stock.

     "INDEBTEDNESS" means, with respect to any Person, any indebtedness
of such Person, whether or not contingent, in respect of borrowed money
or evidenced by bonds, notes, debentures or similar instruments or
letters of credit (or reimbursement agreements in respect thereof) or
representing Capital Lease Obligations (as defined in the Amended and
Restated Certificate of Incorporation) or the balance deferred and unpaid
of the purchase price of any property or representing Hedging Obligations
(as defined in the Amended and Restated Certificate of Incorporation),
except any such balance that constitutes an accrued expense or trade
payable, if and to the extent any of the foregoing indebtedness (other
than letters of credit and Hedging Obligations) would appear as a
liability upon a balance sheet of such Person prepared in accordance with
GAAP, and also includes, to the extent not otherwise included, the
Guarantee (as defined in the Amended and Restated Certificate of
Incorporation) of any Indebtedness of such Person or any other Person.

     "INTERESTS" means any evidence of equity ownership of any Person,
whether represented by common stock, preferred stock, securities
convertible into, exchangeable or exercisable for the purchase or other
acquisition of common stock or preferred stock (including convertible or
exchangeable debentures, warrants and options), trust certificates or
general or limited partnership interests.

     "INTERNATIONAL" means Atlantic Equity Partners International II,
L.P., a Delaware limited partnership domiciled in the Cayman Islands.

     "LIEN" means any mortgage, lien (except for any lien for taxes not
yet due and payable), charge, restriction, pledge, security interest,
option, lease or sublease, claim, right of any third party, easement,
encroachment or encumbrance.

     "LOSSES" means all losses, claims, damages, liabilities, costs
(including any costs of investigation and reasonable attorneys' fees) and
expenses.

     "MATERIAL ADVERSE EFFECT" means, with respect to any Person, any
fact, event, change, circumstance or effect that has or is reasonably
likely to have a materially adverse effect on the business, financial
condition, results of operations or, to the actual knowledge of such
Person, prospects of such Person and its Subsidiaries, taken as a whole.

     "MERGER AGREEMENT" means the Agreement and Plan of Merger, dated as
of May 5, 2000, by and among Mergerco, Berry, Poly-Seal Corporation and
the Shareholder Parties, in substantially the form of EXHIBIT C-1 hereto.

                                    4
<PAGE>
     "OTHER FINANCING DOCUMENTS" means the Credit Facility and any
agreements and documents related thereto.

     "PERSON" means any individual, corporation, general or limited
partnership, joint venture, association, limited liability company, joint
stock company, trust, business trust, bank, trust company, estate
(including any beneficiaries thereof), unincorporated organization,
cooperative, association or governmental branch, authority, agency or
political subdivision thereof.

     "PREFERRED STOCK" means the Series A-1 Senior Cumulative Preferred
Stock of the Company, par value $.01 per share.

     "PURCHASED SECURITIES" has the meaning specified in the recitals of
this Agreement.

     "REGISTRABLE SECURITIES" means the Preferred Stock, the Warrants and
the Warrant Stock, PROVIDED that as to any particular shares of Preferred
Stock, Warrants or Warrant Stock, once issued such securities shall cease
to be Registrable Securities when (i) a registration statement with
respect to the sale of such securities shall have become effective under
the Securities Act and such securities shall have been disposed of in
accordance with such registration statement, (ii) they shall have been
distributed to the public pursuant to Rule 144 or have become eligible
for sale pursuant to paragraph (k) of Rule 144 or (iii) they shall have
ceased to be outstanding.

     "RELATED DOCUMENTS" means the Amended and Restated Certificate of
Incorporation, the Warrants, the Merger Agreement, the Certificate of
Merger and the Amendment to Stockholders Agreement.

     "RESTATED CERTIFICATE OF INCORPORATION" means the Company's amended
and restated certificate of incorporation filed with the Secretary of
State of the State of Delaware on December 20, 1990 (amending and
restating the certificate of incorporation of the Company filed on
December 11, 1990), as further amended by the amended and restated
certificate of incorporation filed on April 19, 1994, as further amended
by the certificate of amendment filed on May 5, 1995, as further amended
by the certificate of amendment filed June 14, 1996.

     "RESTRICTED SECURITIES" means (i) the Preferred Stock, (ii) the
Warrants, (iii) the Warrant Stock and (iv) any securities issued with
respect to the securities specified in the foregoing clauses (i), (ii) or
(iii) by way of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization.  Any security referred to in the preceding sentence shall
cease to be a Restricted Security when it has (a) been disposed of
pursuant to an effective registration statement under the Securities Act,
(b) become eligible for sale pursuant to paragraph (k) of Rule 144 or (c)
otherwise been transferred and new certificates therefor not bearing the
legend set forth in Section 2.5 have been issued.

     "STOCKHOLDERS AGREEMENT" means the Stockholders Agreement, dated as
of June 18, 1996, among the Company, CVCA, International, the
institutional investors named therein,  certain members of management of
the Company and CVCA and Northwestern as holders of Preferred Stock with
respect to certain provisions thereof, as amended from time to time
pursuant to its terms.

                                     5
<PAGE>
     "SUBSIDIARY" or "SUBSIDIARIES" of any Person means any corporation
or other entity of which securities or other ownership interests having
ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions are at the time directly or
indirectly owned or controlled by such Person or one or more Subsidiaries
of such Person.

     "`33 ACT" or "SECURITIES ACT" means the Securities Act of 1933, as
amended, and the rules and regulations issued in respect thereto.

     "`34 ACT" or "EXCHANGE ACT" means the Securities Exchange Act of
1934, as amended, and the rules and regulations issued in respect
thereto.

     "UNITS" has the meaning specified in Section 2.1 of this Agreement.

     "WARRANTS" has the meaning specified in the recitals of this
Agreement.

     "WARRANT STOCK" means all shares of Class B Non-Voting Common Stock
issuable from time to time upon exercise of the Warrants.

     Section 1.2.  ADDITIONAL TERMS

     .  The following terms shall have the meanings indicated or referred
to in the following Sections of this Agreement:

          TERM SECTION

          Agreement Preamble
          Approval 4.1.5(a)
          Balance Sheet 4.1.9
          Blue Sky Laws 4.1.4(d)
          Capitalization Schedule 3.1.3
          CERCLA definition of Environmental Law
          Closing 2.3
          Closing Date 2.3
          Company Preamble
          CVCA Preamble
          Employee Benefit Plans 4.1.24(b)
          Financial Statements 4.1.7(b)
          GAAP 4.1.7(b)
          Indemnified Seller 6C.1
          Intellectual Property 4.1.17
          Licenses 4.1.16
          Merger 1st Recital
          Mergerco 1st Recital
          Northwestern Preamble
          Proceeding 6C.3
          Purchase Price 2.1
          Purchasers Preamble
          Regulatory Problem 6.2.6(b)
          SBA Compliance Document 3.2.4
          SBIC Holder 6.2.5(a)
                                      6
<PAGE>
          SEC 4.1.7(a)
          SEC Reports 4.1.7(a)
          Seller 6A.1
          Seller Notice 6A.1

     Section 1.3.  CONSTRUCTION.

     .  When used herein, the masculine form of words includes the
feminine and the neuter and vice versa, and, unless the context otherwise
requires, the singular form of words includes the plural and vice versa.
The words "herein", "hereof", "hereunder" and other words of similar
import when used in this Agreement refer to this Agreement as a whole,
and not to any particular section or subsection.

                               ARTICLE II

                         PURCHASE AND SALE TERMS

     Section 2.1.  PURCHASE AND SALE; PURCHASE PRICE

     .  Subject to the terms of this Agreement, the Company agrees to
authorize, issue and sell to the Purchasers, and the Purchasers severally
agree to purchase from the Company, (i) an aggregate of 1,000,000 shares
of Preferred Stock and (ii) Warrants to purchase an aggregate of 25,997
shares of Class B Non-Voting Common Stock (subject to adjustment).
Shares of the Preferred Stock and the Warrants shall be issued and sold
to the Purchasers in units (the "UNITS"), each Unit consisting of 1,000
shares of Preferred Stock and Warrants to purchase 25.997 shares of Class
B Non-Voting Common Stock.  The purchase price for each Unit shall be
$25,000, for an aggregate purchase price of $25,000,000 (the "PURCHASE
PRICE"), payable in immediately available funds at the Closing in the
manner provided in Section 2.4.  Each Purchaser will purchase the number
of Units set forth opposite the name of such Purchaser on SCHEDULE I
hereto.

     Section 2.2.  THE MERGER

     .  Subject to the terms of this Agreement, the Company shall effect
the Merger at the Closing in accordance with the terms of the Merger
Agreement.

     Section 2.3.  THE CLOSING

     .  The closing of the purchase and sale of the Units and the
consummation of the Merger shall take place at the offices of O'Sullivan,
Graev & Karabell, LLP, located at 30 Rockefeller Plaza, New York, New
York 10112 or at such other location as the Company and the Purchasers
may designate (the "CLOSING").  The Closing shall occur on or before May
9, 2000, or such later date as the Company and the Purchasers may
designate (the "CLOSING DATE").  It is the intention of the parties
hereto that the Closing Date shall occur simultaneously with the issuance
of the Units hereunder.

     Section 2.4.  PAYMENT AND DELIVERY

     .  At the Closing, each Purchaser will deliver the portion of the
Purchase Price set forth opposite such Purchaser's name on SCHEDULE I
hereto by wire or interbank transfer in immediately available funds to an
account designated in writing by the Company prior to the Closing Date,
against delivery by the Company to each of the Purchasers of (i) one or
more (as designated by such Purchaser) duly executed stock certificates
evidencing the number of shares of Preferred Stock to be purchased by
such Purchaser (as set forth on SCHEDULE I hereto) and (ii) the duly
executed warrant certificates, in such numbers as may be requested by
each of the Purchasers, evidencing Warrants to purchase the aggregate
number of shares of Class B Non-Voting Common Stock set forth opposite
                                     7
<PAGE>
such Purchaser's name on SCHEDULE I hereto, each such certificate to be
dated the Closing Date and registered in the name of such Purchaser or
its nominee.

     Section 2.5.  RESTRICTIVE LEGEND.

       In addition to any legend required by the DGCL, each certificate
evidencing the Preferred Stock and the Warrants issued at the Closing
will bear, and each certificate representing a Restricted Security will
bear, a legend in the following terms:

     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
     APPLICABLE STATE SECURITIES LAWS, AND ACCORDINGLY, SUCH
     SECURITIES MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED
     OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION
     PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR
     APPLICABLE EXEMPTIONS THEREFROM."

WHENEVER ANY PARTICULAR SECURITY CEASES TO BE A RESTRICTED SECURITY, THE
HOLDER THEREOF SHALL BE ENTITLED TO RECEIVE FROM THE COMPANY, WITHOUT
EXPENSE, NEW SECURITIES OF LIKE TENOR, NOT BEARING THE ABOVE LEGEND.

     Section 2.6.  USE OF PROCEEDS

     .  The Company shall use the net cash proceeds received from the
Credit Facility and the sale of the Units solely for purposes of
effecting the Merger, funding the Aggregate Merger Consideration and
paying the costs, expenses and fees incurred in connection therewith.

                               ARTICLE III

                           CLOSING CONDITIONS

     Section 3.1.  CONDITIONS OF THE PURCHASERS AND THE COMPANY

     .  The obligation of each of the Purchasers to purchase, and the
obligation of the Company to issue and sell, the Units, as applicable,
and the obligation of the Company to effect the Merger on the Closing
Date, shall be subject to satisfaction of the following conditions on or
prior to such date (unless otherwise specified below):

     Section 3.1.1.  EXECUTION OF THIS AGREEMENT AND ALL RELATED
DOCUMENTS

     .  The Company, Mergerco, each of the Purchasers, the Shareholder
Parties and all other requisite parties shall have duly authorized and
executed copies of this Agreement, each Related Document, each Other
Financing Document and each other agreement, document or instrument
related hereto or thereto, to which any such Person is a party, required
in connection with the consummation of the transactions contemplated
hereby and thereby.  This Agreement, each such Related Document, each
such Other Financing Document and each other related agreement, document
or instrument shall remain in full force and effect.

     Section 3.1.2.  ISSUANCE AND PURCHASE OF THE UNITS

     .  The Company shall have duly issued and delivered applicable
certificates to each of the Purchasers representing the number of shares
of Preferred Stock and Warrants purchased by each of the Purchasers as
provided in ARTICLE II hereof and the Purchasers shall have purchased and
                                    8
<PAGE>
paid for such Preferred Stock and Warrants of the Company to be purchased
by them pursuant to such ARTICLE II.

     Section 3.1.3.  MERGER EFFECTIVE; AMENDED AND RESTATED CERTIFICATE
OF INCORPORATION

     The Certificate of Merger and the Amended and Restated
Certificate of Incorporation of the Company shall have been filed with
the Secretary of State of Delaware in accordance with Delaware law and be
in effect.  Immediately after giving effect to the Closing and the
consummation of the transactions contemplated hereby, the Company's
capitalization shall be as set forth on SCHEDULE III hereto (the
"CAPITALIZATION SCHEDULE").

     Section 3.1.4.  MERGER CONSIDERATION

     Upon the effectiveness of the Merger, the Company shall have paid
the Closing Date Payment Amount to the Shareholder Payments Escrow
Account pursuant to the Merger Agreement and shall have made the escrow
deposits required by the Merger Agreement.

     Section 3.1.5.  NO LITIGATION, ETC

     No litigation, arbitration, governmental investigation or
proceeding shall, as of the Closing Date, be pending or, to the knowledge
of the Company, threatened, which seeks to enjoin or otherwise prevent
the consummation of, or to recover any damages or obtain relief as a
result of, the transactions contemplated by this Agreement, the other
Related Documents, the Other Financing Documents or any other material
agreement related hereto or thereto.

     Section 3.1.6.  ENVIRONMENTAL REPORT

     The Purchasers shall have received and reviewed a Phase I and
Phase II environmental assessment for each parcel of real property owned
or leased by Poly-Seal Corporation, each of which environmental
assessment has been performed by a reputable and recognized environmental
consulting firm acceptable to the Purchasers and has revealed no material
Hazardous Materials Contamination (as defined in the Credit Facility) or
material violations of any Environmental Laws, and shall otherwise be in
all respects acceptable to the Purchasers.

     Section 3.1.7.  APPROVALS, ETC.

       All Approvals set forth on ITEM 4.1.5 ("Consents and Approvals")
of the Disclosure Schedule hereto shall have been obtained or otherwise
satisfied, and all applicable waiting or appeal periods with respect
thereto shall have passed, in each case to the satisfaction of each of
the Purchasers.

     Section 3.1.8.  [Intentionally Omitted]

     Section 3.1.9.  [Intentionally Omitted]

     Section 3.1.10.  ALL PROCEEDINGS TO BE SATISFACTORY

     (a)  All corporate and other proceedings to be taken by the
Company in connection with the transactions contemplated hereby, (b) the
other Related Documents and the Other Financing Documents, and (c) all
documents incident thereto, shall be satisfactory in form and substance
to the Purchasers and their counsel, and the Purchasers and said counsel
shall have received all such counterpart originals or certified or other
copies of such documents as they may reasonably request.

     Section 3.1.11.  REASONABLE SATISFACTION OF PARTIES AND COUNSEL

     All instruments applicable to the issuance and sale of the
Preferred Stock and the Warrants and the other transactions contemplated
                                      9
<PAGE>
hereby and by the Credit Facility shall be reasonably satisfactory to the
parties hereto and thereto and their respective counsel.

     Section 3.2.  CONDITIONS OF THE PURCHASERS

     The obligations of each of the Purchasers to purchase the Units
shall be further subject to the satisfaction of the following conditions
on or prior to such date (unless otherwise specified below):

     Section 3.2.1.  REPRESENTATIONS AND WARRANTIES TO BE TRUE
AND CORRECT; CERTIFICATE OF OFFICER OF THE COMPANY
    The representations and warranties contained in ARTICLE IV, as
well as the representations and warranties set forth in Article IV of the
Credit Facility, shall be true and correct in all material respects
(except with respect to any such representation or warranty that contains
an express materiality limitation, in which case such representation or
warranty shall be true and correct in all respects) on and as of the
Closing Date with the same effect as though such representations and
warranties had been made on and as of the Closing Date (except to the
extent that any such representations and warranties specifically apply to
a prior date).  The Company shall have delivered to each of the
Purchasers a certificate of its chief executive or chief financial
officer certifying that (i) the representations and warranties set forth
herein and therein are in fact true and correct as stated above, (ii) the
Company has performed or complied with all agreements and conditions
contained herein which are required to be performed or complied with by
it on or before the Closing Date, (iii) Berry has performed or complied
with all agreements and conditions contained in the Credit Facility and
(iv) each of the conditions set forth in SECTIONS 3.1 and 3.2 has been
satisfied.

     Section 3.2.2.  SUPPORTING DOCUMENTS

     On or prior to the Closing Date, the Purchasers and their counsel
shall have received copies of the following supporting documents:

            (a) (i) copies of the Company's Amended and Restated Certificate of
      Incorporation, certified as of the Closing Date by the Secretary of State
      of the State of Delaware, (ii) a certificate of said Secretary of State,
      dated as of a recent date, as to the due incorporation and good standing
      of the Company and its Subsidiaries and listing all documents of the
      Company on file with said Secretary of State, and (iii) a facsimile,
      telegram or telex from said Secretary as of the close of business on the
      business day preceding the Closing Date as to the continued good standing
      of the Company;

            (b) [Intentionally Omitted];

            (c) a certificate of the Secretary of the Company, dated the
      Closing Date and certifying:  (i) that attached thereto is a true and
      complete copy of the By-laws of the Company as in effect on the date of
      such certification; (ii) that attached thereto is a true and complete
      copy of resolutions adopted by the Board of Directors of the Company
      authorizing the execution, delivery and performance of this Agreement,
      each of the Related Documents and each of the Other Financing Documents,
      the issuance, sale and delivery of the Preferred Stock and Warrants to
      the Purchasers by the Company, and that all such resolutions are still in
      full force and effect and are all the resolutions adopted in connection
      with the transactions contemplated hereunder and thereunder; (iii) that
      the Company's Restated Certificate of Incorporation has not been amended
      (other than by the amendment and restatement of the Company's Restated
      Certificate of Incorporation by the Amended and Restated Certificate of
      Incorporation) since the date of the certificate delivered pursuant to
                                    10
<PAGE>
      CLAUSE (a)(ii) above; and (iv) the incumbency and specimen signature of
      each officer of the Company executing this Agreement, each of the Related
      Documents, each of the Other Financing Documents, the stock certificate
      or certificates representing the Preferred Stock, Warrants and any
      certificate or instrument furnished pursuant hereto or thereto, and a
      certification by another officer of the Company as to the incumbency and
      signature of the officer signing the certificate referred to in this
      CLAUSE (C); and

            (d) [Intentionally Omitted];

            (e) such additional supporting documents, instruments,
      certificates, opinions and other information with respect to the
      operations and affairs of the Company as the Purchasers or their counsel
      may reasonably request.

     All such documents shall be satisfactory in form and substance to
the Purchasers and their counsel.

     Section 3.2.3.  LEGAL OPINION FROM COUNSEL FOR THE COMPANY

     On the Closing Date, each of the Purchasers shall have received
the written opinion of O'Sullivan, Graev & Karabell, LLP, counsel for the
Company, in form and substance satisfactory to each of the Purchasers and
their counsel.

     Section 3.2.4.  DELIVERY OF SBA FORMS.

       In the event that any Purchaser is a licensed Small Business
Investment Company under the Small Business Investment Act of 1958, as
amended, the Company shall have provided such Purchaser with all
information necessary for such Purchaser to prepare the Portfolio
Financing Report on Form 1031 (the "SBA COMPLIANCE DOCUMENT"), and all of
the information set forth in the SBA Compliance Document shall be true
and correct in all respects.

     Section 3.2.5.  [Intentionally Omitted]

     Section 3.2.6.  CREDIT FACILITY

     The terms of the Credit Facility shall be satisfactory to each of
the Purchasers, the Credit Facility shall be in full force and effect,
the Purchasers shall have received copies of the documents comprising the
Credit Facility and the Company shall have borrowed not more than $70
million thereunder.

     Section 3.2.7.  THE MERGER.

          (a) The Merger shall have been completed and closed prior to or
     simultaneously herewith in accordance with the Merger Agreement and
     all applicable laws.

          (b) The Purchasers shall have received photocopies of all
     Merger documents executed, delivered and/or furnished in connection
     with the Merger, together with a certificate signed by an Officer of
     the Company certifying that the Merger Agreement and the other
     Merger documents furnished to the Purchasers are true, correct, in
     full force and effect and the provisions thereof have not been in
     any way modified, amended or waived, except as otherwise disclosed
                                    11
<PAGE>
     in writing to and consented to by the Purchasers on or before the
     date of this Agreement.

     Section 3.3.   CONDITIONS OF THE COMPANY

     The obligations of the Company to effect the Merger and to sell
Units shall be further subject to satisfaction of the following
conditions on or prior to such date:

     Section 3.3.1.  REPRESENTATIONS AND WARRANTIES TO BE TRUE AND
CORRECT

     The representations and warranties contained in ARTICLE V shall
be true and correct on and as of the Closing Date with the same effect as
though such representations and warranties had been made on and as of
such date (except to the extent that any such representations and
warranties specifically apply to a prior date).

     Section 3.3.2.  THE MERGER

    The Merger shall have been completed and closed prior to or
simultaneously herewith in accordance with the Merger Agreement and all
applicable laws.

     Section 3.4.  CONDITIONS OF NORTHWESTERN

    The obligations of Northwestern to purchase the Units shall be
further subject to the satisfaction of the following conditions on or
prior to the Closing Date (unless otherwise specified below):

     Section 3.4.1.  PURCHASE PERMITTED BY APPLICABLE LAW, ETC.

     On the Closing Date, the purchase of Units by Northwestern shall (i)
be permitted by the laws and regulations of each jurisdiction to which
Northwestern is subject, without recourse to provisions (such as Section
1405(a)(8) of the New York Insurance Law) permitting limited investments
by insurance companies without restriction as to the character of the
particular investment, (ii) not violate any applicable law or regulation
(including, without limitation, Regulation G, T or X of the Board of
Governors of the Federal Reserve System) and (iii) not subject
Northwestern to any tax, penalty or liability under or pursuant to any
applicable law or regulation, which law or regulation was not in effect
on the date hereof.

     Section 3.4.2.  PRIVATE PLACEMENT NUMBER

    A Private Placement number issued by Standard & Poor's CUSIP
Service Bureau (in cooperation with the Securities Valuation Office of
the National Association of Insurance Commissioners) shall have been
requested for the Preferred Stock and Warrants.

                               ARTICLE IV

                     REPRESENTATIONS AND WARRANTIES

     Section 4.1.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to each of the Purchasers, as
of the date hereof and the Closing Date, after giving effect to the
transactions contemplated to occur thereon (except to the extent any of
the following representations or warranties specifically apply or relate
to a prior date, in which event the Company represents and warrants such
representations and warranties to be true and correct as of such prior
date), as follows:

                                      12
<PAGE>
     Section 4.1.1.  CORPORATE EXISTENCE

      Each of the Company and each of its Subsidiaries is a corporation
duly incorporated, validly existing and in good standing under the laws
of the jurisdiction set forth for such corporation on ITEM 4.1.1
("Company and Existing Subsidiaries (Name, Jurisdiction of
Incorporation)") of the Disclosure Schedule hereto, and is duly qualified
to do business as a foreign corporation and is in good standing in each
jurisdiction in which the ownership or use of its assets or properties,
or the conduct or nature of its business, makes such qualification
necessary, except where the failure to so qualify would not constitute a
Material Adverse Effect.  The Company has all requisite corporate power
and authority to conduct its business and own its properties as now
conducted and owned.  Attached as EXHIBIT A hereto is a true and complete
copy of the Company's Amended and Restated Certificate of Incorporation,
as in effect and as on file with the Secretary of State of the State of
Delaware as of the Closing Date after giving effect to the Merger.

     Section 4.1.2.  POWER AND AUTHORITY

      The Company has all requisite corporate power and authority, and
has taken all required corporate and other action necessary, to execute,
deliver and perform this Agreement, all Related Documents, all Other
Financing Documents to which the Company is a party and to effect the
Merger, each as herein and therein provided.  Except as disclosed on ITEM
4.1.2 ("Power and Authority") of the Disclosure Schedule hereto, none of
the foregoing actions will (i) violate any provision of the Company's
By-laws, Restated Certificate of Incorporation prior to the Merger or
Amended and Restated Certificate of Incorporation following the Merger,
(ii) result in the breach of or constitute a default under any contract,
agreement or instrument to which the Company or any of its Subsidiaries
is a party or by which it or any of them is bound, (iii) result in the
creation or imposition of any lien, claim or encumbrance on any asset of
the Company or any of its Subsidiaries (except as contemplated by the
Related Documents or the other Financing Documents), (iv) give any Person
rights to terminate any contracts or agreements with the Company or any
of its Subsidiaries or otherwise to exercise rights against the Company
or any of its Subsidiaries or (v) violate any Approval or any order,
writ, judgment, injunction, decree, statute, rule or regulation  of any
court, tribunal or governmental entity applicable to or bearing upon the
Company or any of its Subsidiaries or any of their respective assets or
business, except, in the case of each of clauses (ii), (iii), (iv) and
(v) above, for occurrences that would not in the aggregate constitute a
Material Adverse Effect.

     Section 4.1.3.  ENFORCEABILITY, ETC.

       Each of this Agreement, each of the Related Documents and each of
the Other Financing Documents to which the Company is a party has been
duly executed and delivered by the Company and constitutes the legal,
valid and binding obligation of the Company enforceable against it in
accordance with their respective terms, except as may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance or other
similar laws affecting the enforcement of creditors' rights generally and
general equitable principles.

     Section 4.1.4.  CAPITALIZATION

     Assuming that all transactions contemplated hereunder have been
consummated (including the issuance and sale of the Preferred Stock and
the Warrants and consummation of the Merger) as of the Closing Date:
                                    13
<PAGE>

            (a) the Capitalization Schedule sets forth a true and complete
      statement of the capitalization of the Company and each of its
      Subsidiaries as of the Closing Date, including a list of all holders of
      Interests of or in the Company and its Subsidiaries (and the amount and
      type of such Interests);

            (b) except as set forth on the Capitalization Schedule, neither the
      Company nor any of its Subsidiaries has issued any Interests, nor are any
      Interests (or any rights to acquire or purchase any Interests)
      outstanding;

            (c) [Intentionally Omitted];

            (d) The 25,997 shares of Class B Non-Voting Common Stock issuable
      upon the exercise of the Warrants will have been duly authorized and
      reserved for issuance upon exercise of the Warrants and, when issued upon
      such exercise and payment of the exercise price thereof in accordance
      with the terms of the Warrants, will have been duly authorized, validly
      issued and will be fully paid and nonassessable and will be delivered to
      the holder(s) of the Warrants free and clear of any liens, encumbrances,
      pre-emptive rights, escrows, options, rights of first refusal or other
      agreements, arrangements, commitments, understandings or obligations,
      whether written or oral, or any other restrictions affecting rights and
      other incidents of record and beneficial ownership, other than (i) as set
      forth herein, and (ii) restrictions on transferability imposed generally
      under the `33 Act and under the securities laws of the several states and
      the rules and regulations issued in respect thereof (such state laws,
      rules and regulations, being, collectively, "BLUE SKY LAWS"); and

            (e) [Intentionally Omitted].

     Except as set forth on ITEM 4.1.1 ("Company and Existing
Subsidiaries (Name, Jurisdiction of Incorporation)") of the Disclosure
Schedule hereto, the Company has no Subsidiaries.  The Company owns 100%
of all issued and outstanding shares of capital stock of its
Subsidiaries, and owns no capital stock, other securities or Interests,
or rights or obligations to acquire the same, of any other Person.

     Section 4.1.5.  CONSENTS, APPROVALS AND NON-CONTRAVENTION

     Except as set forth on ITEM 4.1.5 ("Consents and Approvals") of
the Disclosure Schedule hereto, neither the execution, delivery and
performance by the Company of this Agreement, any Related Documents or
any of the Other Financing Documents to which it is a party,  nor the
consummation of any transaction related hereto or thereto, nor the
issuance, sale or delivery of the Common Stock issued on exercise of the
Warrants, the Preferred Stock or Warrants will:

            (a) require any consent, approval, license, permit, waiver or other
      authorization of, filing or taking of any other action with, or notice
      to, any Person, including any local, state or federal governmental
      agency, authority, branch or instrumentality (collectively, an
      "APPROVAL"), except where the failure to obtain an Approval would not in
      the aggregate constitute a Material Adverse Effect; or

            (b) violate any of the Company's, or any of its Subsidiaries',
      Licenses, except where such violation would not in the aggregate
      constitute a Material Adverse Effect.

                                     14
<PAGE>
     Section 4.1.6.  PRO FORMA BALANCE SHEET

     The pro forma balance sheet set forth on ITEM 4.1.6 ("Pro Forma
Balance Sheet") of the Disclosure Schedule hereto fairly presents in all
material respects the financial condition of the Company and its
Subsidiaries on a consolidated basis as of the date of the Balance Sheet,
giving effect to the consummation of the transactions contemplated hereby
and by the Related Documents and the Other Financing Documents as if such
transactions had been consummated as of such date.  ITEM 4.1.6 ("Pro
Forma Balance Sheet") of the Disclosure Schedule also sets forth a pro
forma consolidating balance sheet of each of the Company and its
Subsidiaries.

     Section 4.1.7.  SEC REPORTS AND FINANCIAL STATEMENTS

     (a) The Company has filed all forms, reports and documents
required to be filed with the Securities and Exchange Commission ("SEC")
since December 31, 1994, and has made available to the Purchasers (i) its
Annual Reports on Form 10-K for the 1998 and 1999 fiscal years, (ii) all
other reports, information and registration statements filed by the
Company with the SEC since December 31, 1998 and (iii) all amendments and
supplements to all such reports, information and registration statements
filed by the Company with the SEC (collectively, the "SEC REPORTS").  The
SEC Reports (1) were prepared in accordance with the requirements of the
Securities Act or the Exchange Act, as the case may be, and the rules and
regulations promulgated thereunder and (2) did not at the time they were
filed (or if amended or superseded by a filing prior to the date of this
Agreement, then on the date of such filing) contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
As of the date of filing of the last SEC Report, there was no contract or
agreement that was required to be filed as an exhibit thereto which had
not been filed as such, and, other than the Related Documents, since such
date there has been no contract or agreement that would have to be
included in any SEC Reports filed thereafter.  True and complete copies
of each SEC Report, including all exhibits thereto, have been made
available to the Purchasers.

     (b)  Except as set forth on Item 4.1.7 ("FINANCIAL STATEMENTS") of
the Disclosure Schedule hereto, each of the consolidated financial
statements (including, in each case, any related notes thereto) (the
"FINANCIAL STATEMENTS") contained in the SEC Reports (i) was prepared in
accordance with generally accepted accounting principles ("GAAP") applied
on a consistent basis throughout the periods involved (except as may be
expressly described in the notes thereto) and (ii) fairly presents the
consolidated financial position of the Company and its Subsidiaries as at
the respective dates thereof and the consolidated results of its
operations and cash flows for the periods indicated, except that the
unaudited interim financial statements included in the Company's Form 10-
Q reports were or are subject to normal and recurring year-end
adjustments.

     Section 4.1.8.  MATERIAL ADVERSE CHANGE

     Except as set forth on ITEM 4.1.8 ("Material Adverse Change") of
the Disclosure Schedule hereto, since the date of the last audited
Financial Statement, (i) there has been no material adverse change in the
assets, liabilities or financial condition of the Company and its
Subsidiaries from that reflected in such audited Financial Statement,
except for changes in the ordinary course of business individually or in
the aggregate and (ii) there has been no event that would result in a
Material Adverse Effect.

     Section 4.1.9.  EVENTS SUBSEQUENT TO THE DATE OF THE LAST FINANCIAL
STATEMENT

     Since the date of the last audited Financial Statements, except
as contemplated by this Agreement or as set forth in the balance sheet
                                     15
<PAGE>
included in the Company's Form 10-K for the period ending January 1, 2000
(the "BALANCE SHEET") or ITEM 4.1.9 ("Subsequent Events") of the
Disclosure Schedule hereto, neither the Company nor any of its
Subsidiaries has (i) issued any stock, bond or other corporate security
other than in connection with the exercise of options issued pursuant to
the Company's 1996 Stock Option Plan, (ii) borrowed any amount or
incurred or become subject to any material liability (absolute, accrued
or contingent), except liabilities under the Credit Facility, current
liabilities incurred and liabilities under contracts entered into in the
ordinary course of business, (iii) discharged or satisfied any lien or
encumbrance or incurred or paid any obligation or liability (absolute,
accrued or contingent) other than current liabilities shown on the
Balance Sheet and current liabilities incurred since the date of the
Balance Sheet in the ordinary course of business, (iv) declared or made
any payment or distribution to stockholders or purchased or redeemed any
of its capital stock (other than repurchases from employees permitted
under the Other Financing Documents or any Indenture of the Company),
(v) except in connection with the transactions contemplated by the Credit
Facility, mortgaged, pledged or subjected to any lien or encumbrance any
of its assets, tangible or intangible, other than liens for current real
property taxes not yet due and payable, (vi) sold, assigned or
transferred any of its tangible assets except in the ordinary course of
business, or cancelled any debt or claim owed to the Company or any such
Subsidiary except in the ordinary course of business, (vii) sold,
assigned, transferred or granted any exclusive license with respect to
any patent, trademark, trade name, service mark, copyright, trade secret
or other intangible asset, (viii) suffered any substantial loss of
property or waived any right of substantial value other than in the
ordinary course of business, (ix) made any change in officer compensation
except in the ordinary course of business and consistent with past
practice, (x) made any material change in the manner of business or
operations of the Company and its Subsidiaries taken as a whole,
(xi) entered into any transaction except in the ordinary course of
business or as otherwise contemplated hereby or (xii) entered into any
commitment, obligation, understanding or other arrangement, contingent or
otherwise, to effect, directly or indirectly, any of the foregoing.

     Section 4.1.10.  ABSENCE OF UNDISCLOSED LIABILITIES

     Since the date of the last audited Financial Statement, neither
the Company nor any of its Subsidiaries had any material loss contingency
(as defined in Statement of Financial Accounting Standards No. 5),
whether matured or unmatured, fixed or contingent, which is not fully
reflected or provided for on the Balance Sheet or disclosed in a footnote
thereto, except (i) obligations to perform under commitments or other
obligations incurred in the ordinary course of business, (ii) tax and
related liabilities which have been disclosed pursuant to ITEM 4.1.11
("Taxes") of the Disclosure Schedule hereto and (iii) other liabilities
as set forth on ITEM 4.1.10 ("Liabilities") of the Disclosure Schedule
hereto or in the SEC Reports filed prior to the date hereof.

     Section 4.1.11.  TAXES

     Except as set forth on ITEM 4.1.11 ("Taxes") of the Disclosure
Schedule hereto, the Company has accurately completed and filed or will
file within the time prescribed by law (including extensions of time
approved by the appropriate taxing authority) all tax returns and reports
required to be filed on behalf of the Company and each of its
Subsidiaries with the Internal Revenue Service, the State of Delaware,
any other states or governmental subdivisions and all foreign countries
and has paid all taxes, interest, penalties, assessments or deficiencies
shown to be due (or, to the knowledge of the Company, claimed by such
authority or jurisdiction to be due) on or in respect of such tax returns
and reports.  The Company knows of (i) no other federal, state, county,
municipal or foreign taxes (or other liabilities in respect thereof)
                                     16
<PAGE>
which are due and payable by the Company or any of its Subsidiaries which
have not been so paid, (ii) no other material federal, state, county,
municipal or foreign tax returns or reports which are required to be
filed which have not been so filed, (iii) no other unpaid assessment for
additional taxes or penalties for any fiscal period or any basis thereof
and (iv) no material tax lien, whether imposed by any Federal, state,
county, municipal or foreign taxing authority, outstanding against the
assets or business of the Company or any of its Subsidiaries.  The
federal income tax returns of the Company and its Subsidiaries have been
audited for the Company's 1991, 1992 and 1993 fiscal years and the state
income tax returns of the Company and its Subsidiaries are currently
being audited.  Proper and accurate amounts have been withheld by the
Company and its Subsidiaries from their respective employees for all
periods in compliance with the tax, social security and any employment
withholding provisions of applicable federal and state law, and proper
and accurate federal and state returns have been filed by the Company for
all periods for which returns were due with respect to employee income
tax withholding, social security and unemployment taxes for the Company
and its Subsidiaries, and the amounts shown thereon to be due and payable
have been paid in full or provision therefor included on the books of the
Company in accordance with and to the extent required by GAAP.  The
Company has not made any election under Section 341(f) of the Code.

     Section 4.1.12.  LITIGATION

     Except as set forth on ITEM 4.1.12 ("Litigation") of the
Disclosure Schedule hereto, there are no actions, suits, proceedings,
orders, investigations or claims pending or, to the knowledge of the
Company, threatened against or affecting the Company or any of its
Subsidiaries, any of their respective assets or businesses or any of
their respective directors or employees, at law or in equity, before any
court, arbitration panel, tribunal or governmental department,
commission, board, bureau, agency or instrumentality which would be
required to be disclosed pursuant to Item 103 of SEC Regulation S-K in an
Annual Report on Form 10-K being filed on the date hereof.

     Section 4.1.13.  INSURANCE

     Except as set forth on ITEM 4.1.13 ("Insurance") of the
Disclosure Schedule hereto, the Company holds valid policies in full
force and effect covering all of the insurance required to be maintained
by it pursuant to SECTION 6.2.4(G) hereof.

     Section 4.1.14.  CONFLICTS OF INTERESTS

     Except as set forth on ITEM 4.1.14 ("Conflict of Interest") of
the Disclosure Schedule hereto, neither the Company, nor any Subsidiary,
nor, to the knowledge of the Company, any of their respective officers,
employees, agents or any other Person acting on behalf of the Company or
any such Subsidiary has, directly or indirectly, given or agreed to give
any money, gift or similar benefit (other than legal price concessions to
customers in the ordinary course of business) to any customer, supplier,
employee or agent of a customer or supplier, or official or employee of
any governmental agency or instrumentality of any government (domestic or
foreign) or other Person who was, is, or may be in a position to help or
hinder the business of the Company or any of its Subsidiaries (or assist
in connection with any actual or proposed transaction) which (i) could
reasonably be expected to subject the Company or any of its Subsidiaries
to any damage or penalty in any civil, criminal or governmental
litigation or proceeding, (ii) if not given in the past, could reasonably
be expected to constitute a Material Adverse Effect, or (iii) if not
continued in the future, could reasonably be expected to constitute a
Material Adverse Effect.

                                    17
<PAGE>
     Section 4.1.15.  OTHER RELATIONSHIPS

     Except as set forth on ITEM 4.1.15 ("Other Relationships") of the
Disclosure Schedule hereto, to the knowledge of the Company

            (a) the officers of the Company and its Subsidiaries have no
      interest (other than as non-controlling holders of securities of a
      publicly-traded company), either directly or indirectly, in any Person
      (whether as an employee, officer, director, shareholder, agent,
      independent contractor, security holder, creditor, consultant or
      otherwise) that presently (i) provides any services or designs, produces
      or sells any products or product lines, or engages in any activity which
      is the same, similar to or competitive with any activity or business in
      which the Company or any of its Subsidiaries is now engaged, (ii) is a
      supplier of, customer of, creditor of, or has an existing contractual
      relationship with, the Company or any of its Subsidiaries, or (iii) has
      any direct or indirect interest in any asset or property used by the
      Company or any of its Subsidiaries or any property, real or personal,
      tangible or intangible, that is necessary or desirable for the conduct of
      the business of the Company or any of its Subsidiaries; and

            (b) no current or former stockholder, director, officer or employee
      of the Company or any of its Subsidiaries, nor any Affiliate of any such
      Person, is at present, or has, since January 1, 1998, been, directly or
      indirectly through his affiliation with any other Person, a party to any
      transaction (other than as an employee) with the Company or any of its
      Subsidiaries providing for the furnishing of services by, or rental of
      real or personal property from, or otherwise requiring cash payments to
      any such person.

     Section 4.1.16.  LICENSES; COMPLIANCE WITH LAWS, OTHER AGREEMENTS,
                      ETC.

       Except as set forth on ITEM 4.1.16 ("Licenses") of the Disclosure
Schedule hereto, the Company and its Subsidiaries have all franchises,
permits, licenses and other rights, including, without limitation, all
Approvals (governmental and otherwise), which are necessary or required
for the conduct of the business of the Company and its Subsidiaries as
currently conducted and as contemplated to be conducted (pursuant to the
Merger) (collectively, the "LICENSES"), except where the failure to
obtain such Licenses would not in the aggregate constitute a Material
Adverse Effect.  The Company knows of no basis upon which the renewal of
any Licenses would be denied in the future.  Each such License has been
validly issued and is in full force and effect, and neither the Company
nor any of its Subsidiaries is in violation of any such License, except
where such violations would not in the aggregate constitute a Material
Adverse Effect.

     Section 4.1.17.  INTELLECTUAL PROPERTY RIGHTS AND GOVERNMENT
APPROVALS

     Except as set forth on ITEM 4.1.17(A) ("Intellectual Property
Rights") of the Disclosure Schedule hereto, the Company and its
Subsidiaries have all patents, trademarks, service marks, trade names,
copyrights, rights or licenses to use the same, and any and all
applications therefor (collectively, the "INTELLECTUAL PROPERTY"),
necessary to permit the Company and its Subsidiaries to conduct their
business as currently conducted and as contemplated to be conducted,
except where the failure to own or hold any Intellectual Property would
not in the aggregate constitute a Material Adverse Effect.  Except as set
forth on ITEM 4.1.17(A) of the Disclosure Schedule hereto, neither the
Company nor any of its Subsidiaries has received any formal or informal
notice of infringement or other complaint that any of their operations
infringe any rights under any Intellectual Property or any other
proprietary rights of any other Person, nor does the Company or any of
its Subsidiaries have any reason to believe that there has been any such
                                     18
<PAGE>
infringement that would constitute a Material Adverse Effect.  Except as
set forth on ITEM 4.1.17(B) ("Royalties and Other Fees") of the
Disclosure Schedule hereto, no royalties, honorariums or fees are or will
be payable by the Company or any of its Subsidiaries to any other Person
by reason of the ownership or use by any of them of any Intellectual
Property.

     Section 4.1.18.  INVESTMENT COMPANY ACT

     The Company is not, and immediately after any Closing will not
be, an "investment company" or a company "controlled" by an "investment
company" within the meaning of the Investment Company Act.

     Section 4.1.19.  BROKERS, ETC.

       Except as set forth on ITEM 4.1.19 ("Brokers") of the Disclosure
Schedule hereto, the Company has not dealt with, nor is the Company
obligated to pay any fee or commission in connection with, any broker,
finder or other similar Person in connection with the offer or sale of
the Preferred Stock or the Warrants or any of the transactions
contemplated by this Agreement, any Related Document or any Other
Financing Document.

     Section 4.1.20.  PRIVATE SALE

     In connection with the Merger, the Company has not, either
directly or through any agent, offered any Warrants, Preferred Stock or
any other securities to, or solicited any offers to acquire any Warrants,
Preferred Stock or any other Interests or securities from, or otherwise
approached, negotiated or communicated in respect of any Warrants,
Preferred Stock or any other Interests or securities with, any Person in
such a manner as to require that the offer or sale of any such securities
be registered pursuant to the `33 Act or any Blue Sky Laws.

     Section 4.1.21.  DISCLOSURE

     Neither this Agreement, any Related Document, any Other Financing
Document nor any of the exhibits, schedules or attachments hereto or
thereto contain any untrue statement of a material fact or omits a
material fact necessary to make each statement contained herein or
therein not misleading; PROVIDED, HOWEVER, that with respect to any of
the financial projections included therein the Company represents and
warrants only that such projections were based upon assumptions
reasonably believed by the Company to be reasonable and fair as of the
date the projections were prepared in the context of the Company's
history and current and reasonably foreseeable business conditions.

     Section 4.1.22.  CONTRACTS AND COMMITMENTS.  Except as described
therein, ITEM 4.1.22 ("Contracts and Commitments") of the Disclosure
Schedule hereto, sets forth a complete and correct list of all
outstanding Indebtedness of the Company and its Subsidiaries as of the
Closing Date.  Neither the Company nor any Subsidiary is in default and
no waiver of default is currently in effect, in the payment of any
principal or interest on any Indebtedness of the Company or such
Subsidiary and no event or condition exists with respect to any
Indebtedness of the Company or any Subsidiary the outstanding principal
amount of which exceeds $100,000 that would permit (or that with notice
or the lapses of time, or both, would permit) one or more Persons to
cause such Indebtedness to become due and payable before its stated
maturity or before its regular scheduled dates of payment.

     Section 4.1.23.  CUSTOMERS AND SUPPLIERS

     Set forth on ITEM 4.1.23 ("Customers and Suppliers") of the
Disclosure Schedule hereto is a list of the ten largest customers of the
Company and its Subsidiaries for each of the two most recent fiscal
years, and set forth opposite the name of each such customer is the
percentage of consolidated net sales attributable to such customer.  Such
                                       19
<PAGE>
Disclosure Schedule also lists any additional current customers which the
Company anticipates may be among the ten largest customers for the
current fiscal year.  Since the date of the Balance Sheet, no material
supplier of the Company or any of its Subsidiaries has indicated that it
shall stop, or materially decrease the rate of, supplying materials,
products or services to the Company or any such Subsidiary, and, except
as set forth on ITEM 4.1.23 of the Disclosure Schedule, no customer
listed on the aforementioned Disclosure Schedule has indicated that it
shall stop, or materially decrease the rate of, buying materials,
products or services from the Company or any such Subsidiary.

     Section 4.1.24.  EMPLOYEE MATTERS AND BENEFITS.

     (a)      GENERAL. Except as set forth in the SEC Reports filed prior
to the date hereof or on ITEM 4.1.24 ("Employee Benefit Plans") of the
Disclosure Schedule hereto, neither the Company nor any of its
Subsidiaries is a party to, participates in or has any liability
(contingent or otherwise) with respect to:

               (i) any "employee welfare benefit plan" or "employee
          pension benefit plan" (as those terms are respectively defined
          in sections 3(1) and 3(2) of ERISA), other than a
          "multiemployer plan" (as defined in section 3(37) of ERISA);

               (ii) any retirement or deferred compensation plan,
          incentive compensation plan, stock plan,  unemployment
          compensation plan, vacation pay, severance pay, bonus or
          benefit arrangement, insurance or hospitalization program or
          any other fringe benefit arrangements for any current or former
          employee, director, consultant or agent, whether pursuant to
          contract, arrangement, custom or informal understanding, which
          does not constitute an employee benefit plan (as defined in
          section 3(3) of ERISA); or

               (iii) any contract for the employment of any officer,
          individual employee or other Person on a full-time, part-time,
          consulting or other basis providing annual compensation in
          excess of $100,000 per annum.

     (b)  PLAN DOCUMENTS AND REPORTS.  A true and correct copy of each of
the plans, arrangements, and agreements listed on ITEM 4.1.24 ("Employee
Benefit Plans") of the Disclosure Schedule hereto (referred to
hereinafter as "EMPLOYEE BENEFIT PLANS"), and all contracts relating
thereto, or to the funding thereof, including, without limitation, all
trust agreements, insurance contracts, administration contracts,
investment management agreements, subscription and participation
agreements, and recordkeeping agreements, each as in effect on the date
hereof, has been made available to the Purchasers.  In the case of any
Employee Benefit Plan which is not in written form, an accurate
description of such Employee Benefit Plan as in effect on the date hereof
has been made available to the Purchasers.

     (c)  COMPLIANCE WITH LAWS; LIABILITIES.  Except as set forth in
ITEM 4.1.24 ("Employee Benefit Plans") of the Disclosure Schedule hereto
and except for cases that would not in the aggregate constitute a
Material Adverse Effect (it being understood that for the purposes of
this Section 4.1.24 only, Material Adverse Effect shall not exclude any
unfunded liabilities under any Employee Benefit Plans), as to all
Employee Benefit Plans:
                                     20
<PAGE>

               (i) All Employee Benefit Plans comply and have been
          administered in form and in operation in all material respects
          with all applicable requirements of law, and no event has
          occurred which will or could reasonably be expected to cause
          any such Employee Benefit Plan to fail to comply with such
          requirements and no notice has been issued by any governmental
          authority questioning or challenging such compliance.

               (ii) All Employee Benefit Plans which are employee pension
          benefit plans comply in form and in operation with all
          applicable requirements of sections 401(a) and 501(a) of the
          Code; there have been no amendments to such plans which are not
          the subject of a favorable determination letter issued with
          respect thereto by the Internal Revenue Service; and, to the
          knowledge of the Company, no event has occurred which will or
          could reasonably be expected to give rise to disqualification
          of any such plan under such sections or to a tax under section
          511 of the Code.

               (iii) None of the assets of any Employee Benefit Plan that
          is qualified under Sections 401(a) and 501(a) of the Code is
          invested in employer securities or employer real property.

               (iv) There have been no "prohibited transactions" (as
          described in section 406 of ERISA or section 4975 of the Code)
          with respect to any Employee Benefit Plan and neither the
          Company nor any Subsidiary has engaged in any prohibited
          transaction.

               (v) There have been no acts or omissions which have given
          rise to or could reasonably be expected to give rise to fines,
          penalties, taxes or related charges under section 502 of ERISA
          or Chapters 43, 47 or 68 of the Code for which the Company or
          any Subsidiary may be liable.

               (vi) None of the payments contemplated by the Employee
          Benefit Plans would, in the aggregate, constitute excess
          parachute payments (as defined in section 280G of the Code
          (without regard to subsection (b)(4) thereof)).

               (vii) There are no actions, suits or claims (other than
          routine claims for benefits) pending or, to the Company's
          knowledge, threatened involving any Employee Benefit Plan or
          the assets thereof and, to the knowledge of the Company, no
          facts exist which could reasonably be expected to give rise to
          any such actions, suits or claims (other than routine claims
          for benefits).

               (viii) No Employee Benefit Plan is subject to Title IV of
          ERISA.

               (ix) Each Employee Benefit Plan which constitutes a "group
          health plan" (as defined in section 607(1) of ERISA or section
          4980B(g)(2) of the Code), including any plans of current and
          former affiliates which must be taken into account under
          sections 4980B and 414(t) of the Code or section 601 of ERISA,
          has been operated in compliance with applicable law, including
                                        21
<PAGE>
          coverage requirements of section 4980B of the Code and section
          601 of ERISA to the extent such requirements are applicable.

               (x) Neither the Company nor any Subsidiary has any
          liability or contingent liability for providing, under any
          Employee Benefit Plan or otherwise, any post-retirement medical
          or life insurance benefits, other than statutory liability for
          providing group health plan continuation coverage under Part 6
          of Title I of ERISA and section 4980B of the Code.

               (xi) Actuarially adequate accruals for all obligations
          under the Employee Benefit Plans are reflected in the financial
          statements of the Company and such obligations include a pro
          rata amount of the contributions and the Pension Benefit
          Guaranty Corporation premiums which would otherwise have been
          made in accordance with past practices and applicable law for
          the plan years which include the Closing Date.

               (xii) There has been no act or omission that would impair
          the ability of the Company and its Subsidiaries (or any
          successor thereto) to unilaterally amend or terminate any
          Employee Benefit Plan.

     (d)  MULTIEMPLOYER PLANS.  Neither the Company nor any Subsidiary
contributes to, has contributed to, or has any liability or contingent
liability with respect to a multiemployer plan.

     Section 4.1.25.  ENVIRONMENTAL MATTERS

     .  Except as disclosed on ITEM 4.1.25 ("Environmental Matters") of
the Disclosure Schedule hereto and except as would not be required to be
disclosed in an Annual Report on Form 10-K with respect to the Company
filed on the date hereof:

            (a) the business, operations and facilities (whether owned or
      leased) of the Company and its Subsidiaries, and all existing uses of and
      activities on or at any of the properties or facilities (whether owned or
      leased) of the Company and its Subsidiaries, are, to the Company's
      knowledge, in material compliance with all Environmental Laws in effect
      as of the date hereof, and no condition exists or event has occurred
      which, with or without notice or the passage of time or both, would
      constitute a violation of or give rise to any Lien under any
      Environmental Law; provided, however, that, with respect to any property
      or facility which is leased by the Company or any of its Subsidiaries, if
      the lessor of such leased property or facility has leased a portion
      thereof to a Person other than the Company or any of its Subsidiaries,
      the Company makes no representation or warranty under this clause (a) as
      to such other Person or other leased portion;

            (b) the Company and its Subsidiaries are in possession of all
      Environmental Permits necessary or desirable for the conduct or operation
      of its business (or any part thereof), and are in material compliance
      with all of the requirements, conditions and limitations included in such
      Environmental Permits;

            (c) to the Company's knowledge, there is no, and the Company and
      its Subsidiaries have not used or stored any, Hazardous Material in, on,
                                      22
<PAGE>
      or at any of the properties or facilities now owned or leased by the
      Company or its Subsidiaries except for inventories of substances which
      are used or are to be used in the ordinary course of business (which
      inventories have been stored, used and disposed of in accordance with all
      applicable Environmental Laws and Environmental Permits, including all
      so-called "Right To Know Laws");

            (d) the Company and its Subsidiaries have not received any notice,
      whether formal or informal, from any Governmental Authority or any other
      Person that any past or present aspect of the business, operations or
      facilities (whether owned or leased) of the Company or its Subsidiaries
      is in violation of any Environmental Law or Environmental Permit, or that
      the Company or its Subsidiaries is responsible or liable (or potentially
      responsible or liable) for the investigation, cleanup or remediation of
      any Hazardous Materials at any location;

            (e) the Company and its Subsidiaries have not at any time deposited
      or incorporated any Hazardous Material into, on, beneath, or adjacent to
      any property except in compliance in all material respects with all
      applicable Environmental Laws and in a manner which does not create any
      liability under Environmental Law;

            (f) the Company and its Subsidiaries are not the subject of any
      litigation or proceedings in any forum, judicial or administrative,
      involving a demand for damages, injunctive relief, penalties, or other
      potential liability with respect to violations of or liability under any
      Environmental Law;

            (g) the Company and its Subsidiaries timely filed all reports and
      notifications required to be filed with respect to all of their
      operations, properties and facilities (whether owned or leased) and have
      generated and maintained all required records and data under all
      applicable Environmental Laws;

            (h) neither the Company, its Subsidiaries nor, to the knowledge of
      the Company, any predecessor thereof has transported or arranged for the
      transportation of any Hazardous Material to any location which is listed
      or proposed for listing on the National Priorities List pursuant to
      CERCLA or on any similar state list; and

            (i) no condition exists or, to the knowledge of the Company,
      existed in the past, or event has occurred, with respect to any property
      that is currently or was at any time owned or leased by the Company or
      its Subsidiaries, or, to the knowledge of the Company, any predecessor to
      the Company or its Subsidiaries that is likely, with or without notice,
      passage of time or both, to give rise to any present or future liability
      of the Company or its Subsidiaries pursuant to any Environmental Law.

     Section 4.1.26.  LENDING ACTIVITIES

      Except as disclosed on ITEM 4.1.26 ("Lending Activities") of the
Disclosure Schedule, neither the Company nor any of its Subsidiaries
currently or is expected to have a loan facility, credit facility, debt
financing, line of credit or other extension of credit from any
depository institution owned by The Chase Manhattan Corporation.
                                       23
<PAGE>

     Section 4.1.27.  TITLE TO PROPERTIES

     Except as disclosed in the SEC Reports filed prior to the date
hereof or on ITEM 4.1.27 ("Title to Properties") of the Disclosure
Schedule hereto, the Company and its Subsidiaries have, and on the
Closing Date will have, good (and, with respect to real property,
marketable) title to, and are, and on the Closing Date will be, the
lawful owner of, (a) all of the tangible and intangible assets,
properties and rights used in connection with the business of the Company
and its Subsidiaries (except for those assets, properties and rights that
the Company leases or otherwise has the right to use or as to which the
failure to own or possess title would not reasonably be expected to have
a Material Adverse Effect) and (b) all of the tangible and intangible
assets, properties and rights reflected as owned by the Company and its
Subsidiaries in the Financial Statements or the SEC Reports filed prior
to the date hereof or ITEM 4.1.28 ("Assets") of the Disclosure Schedule
hereto or ITEM 4.1.29 ("Real Property") of the Disclosure Schedule hereto
(other than assets leased under the leases set forth in ITEM 4.1.28
("Assets") of the Disclosure Schedule hereto or ITEM 4.1.29 ("Real
Property") of the Disclosure Schedule hereto and assets disposed of in
the ordinary course of business since the date of such Financial
Statements or the most recently filed SEC Report).

     Section 4.1.28.  CONDITION AND SUFFICIENCY OF ASSETS

     Except as disclosed on ITEM 4.1.28 ("Assets") of the Disclosure
Schedule hereto, all of the tangible assets and properties of the Company
and its Subsidiaries, whether real or personal, owned or leased, are in
generally good operating condition and repair (with the exception of
normal wear and tear), and are free from defects (other than such minor
defects as do not either interfere with the intended use thereof in the
conduct of normal operations), except where the failure to conform to
such condition would not in the aggregate constitute a Material Adverse
Effect.  Immediately after the Closing Date, the Company and its
Subsidiaries shall own or have the right to use all the assets,
properties, rights, know-how, key personnel, processes and ability which
are required for or currently used in connection with the operation of
their business as presently conducted, except where the failure to have a
right to use or own any thereof would not have a Material Adverse Effect.

     Section 4.1.29.  REAL PROPERTY

     ITEM 4.1.29 ("Real Property") of the Disclosure Schedule hereto
contains an accurate and complete list, as of the date of this Agreement,
of all fee interests in real property and buildings and structures of the
Company and its Subsidiaries.  The Company and its Subsidiaries have good
and indefeasible title in fee simple to all of the real property and
buildings specified as owned by them in such ITEM 4.1.29 ("Real
Property") of the Disclosure Schedule hereto, and have such title in all
such listed real property and buildings as is required for the conduct of
the business of the Company and its Subsidiaries, as presently conducted,
in each case free and clear of all encumbrances, except:

      (A) Liens for taxes, easements or governmental charges or levies if the
            same shall not at the time be delinquent or thereafter can be paid
            without penalty, or are being contested in good faith by
            appropriate proceedings and are not material to the Company or its
            Subsidiaries;

      (B) such imperfections of title, if any, as do not individually or in the
            aggregate materially detract from the value or marketability of
            such real property as presently used or materially interfere with
            such real property's present, or to the knowledge of the Company,
            proposed use, or that in the aggregate would have a Material
            Adverse Effect; and

                                       24
<PAGE>
     (C)  Liens under the Other Financing Documents.

EXCEPT AS SET FORTH IN ITEM 4.1.29 ("Real Property") of the Disclosure
Schedule hereto, all of the buildings and structures to the extent owned
by the Company or its Subsidiaries are in good operating condition and
repair, suitable for the purposes for which they are being used and each
has adequate rights of ingress and egress for the operation of the
business of the Company and its Subsidiaries in the ordinary course of
business.  To the Company's knowledge, no building or structure to the
extent owned by the Company or its Subsidiaries, or any appurtenance
thereto or equipment therein, or the operation or maintenance thereof,
violates any restrictive covenants or any provisions of any federal,
state, local or foreign law, ordinance or zoning regulation, or
encroaches on any property owned by others, except to the extent any such
violation or encroachment would not (i) materially interfere with the use
or adversely affect the value of such building, structure or appurtenance
or (ii) have a Material Adverse Effect.  No condemnation proceeding is
pending or, to the knowledge of the Company, threatened with respect to
any of the real property listed in ITEM 4.1.29 ("Real Property") of the
Disclosure Schedule hereto nor to the knowledge of the Company, is any
change in any of the foregoing laws, ordinances or regulations pending or
threatened, which proceeding or change could reasonably be expected to
materially interfere with the use or materially adversely affect the
value of any of the real property listed in ITEM 4.1.29 ("Real Property")
of the Disclosure Schedule hereto.

     Section 4.2.  [Intentionally Omitted]

                                ARTICLE V

                           REPRESENTATIONS AND
                      WARRANTIES OF THE PURCHASERS

     Section 5.1.  REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     Each of the Purchasers, severally, but not jointly, represents
and warrants to the Company, as of the date hereof and the Closing Date,
as follows:

     Section 5.1.1.  POWER AND AUTHORITY

     Such Purchaser has full power and authority and has taken all
required corporate action necessary to permit it to execute and deliver
this Agreement and any Related Documents, Other Financing Documents and
other documents or instruments related hereto or thereto that such
Purchaser is a party to, and to carry out the terms hereof and thereof.
None of the foregoing actions will (i) violate any provision of such
Purchaser's by-laws, charter or other similar corporate documents, if
applicable, (ii) result in the breach of or constitute a default under
any contract, agreement or instrument to which such Purchaser is a party
or by which it is bound or (iii) violate any order, writ, judgment,
injunction, decree, statute, rule or regulation of any court, tribunal or
governmental entity or authority applicable to or bearing upon such
Purchaser or any of its assets or business, except for any such
occurrences that would not constitute a Material Adverse Effect.

     Section 5.1.2.  ENFORCEABILITY, ETC.

       This Agreement and each of the Related Documents to which such
Purchaser is a party has been duly executed and delivered by the
Purchaser and constitutes the legal, valid and binding obligation of such
Purchaser enforceable against it in accordance with their respective
terms, except as may be limited by bankruptcy, insolvency,
                                   25
<PAGE>
reorganization, fraudulent conveyance or other similar laws affecting the
enforcement of creditors' rights generally and general equitable
principles.

     Section 5.1.3.  PURCHASE FOR INVESTMENT

      Such Purchaser is purchasing the Purchased Securities for its own
account and with no intention of distributing or reselling said Purchased
Securities or any part thereof in any transaction that would be in
violation of the securities laws of the United States of America or any
state thereof.

     Section 5.1.4.  FINANCIAL MATTERS

     Such Purchaser represents and warrants to the Company that it
understands that the purchase of the Purchased Securities involves
substantial risk and that such Purchaser's financial condition and
investments are such that it is in a financial position to hold the Units
and any Common Stock issued upon exercise of the Warrants for an
indefinite period of time and to bear the economic risk of, and withstand
a complete loss of, its investment in the Units and any Common Stock
issued upon exercise of the Warrants.  Such Purchaser represents that it
is an "accredited investor" as that term is defined in Regulation D
promulgated under the Securities Act, and that such Purchaser is a
sophisticated investor, capable of evaluating the merits and risks of
investing in the Company.

     Section 5.1.5.  ACCESS TO PERSONNEL AND MATERIALS

     During the negotiation of the transactions contemplated herein,
such Purchaser and its representatives have been afforded access to the
Company's financial statements and records, have been afforded an
opportunity to ask such questions of the Company's officers and employees
concerning the Company's business, operations, financial condition,
assets, liabilities and other relevant matters, and have been given all
such information as has been requested, in order to evaluate the merits
and risks of the prospective investment contemplated herein.

     Section 5.1.6.  BROKERS, ETC.

       Such Purchaser has not dealt with any broker, finder or other
similar Person in connection with the offer or sale of the Purchased
Securities or any of the transactions contemplated by this Agreement as a
result of which the Company would be obligated to pay any fee or
commission.

                               ARTICLE VI

                                COVENANTS

     Section 6.1.  [Intentionally Omitted]

     Section 6.2.  POST-CLOSING DATE COVENANTS OF THE COMPANY

     The Company covenants and agrees that, at all times from and
after the Closing Date, it shall perform, observe and comply with the
covenants set forth in this SECTION 6.2.

     Section 6.2.1.  USE OF PROCEEDS

     The Company shall use the proceeds of the sale of the Preferred
Stock and Warrants only for the purposes described in SECTION 2.6 hereof.

     Section 6.2.2.  INSPECTION OF PROPERTY

     Provided such Persons having access shall maintain the
confidentiality of the information to which they have access, the Company
shall permit any representatives designated by the Purchasers upon
reasonable notice and during normal business hours, to (i) visit and
                                      26
<PAGE>
inspect any of the properties of the Company and its Subsidiaries,
(ii) examine the corporate and financial records of the Company and its
Subsidiaries and make copies thereof or extracts therefrom and
(iii) discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the officers, key employees and independent accountants
of the Company and its Subsidiaries.

     Section 6.2.3.  COMPLIANCE WITH AGREEMENTS

     The Company shall perform, observe and comply, in all material
respects, with all agreements, covenants and other obligations set forth
herein, in the Related Documents, the Other Financing Documents, the
Amended and Restated Certificate of Incorporation, By-laws and each other
agreement, document or instrument related thereto by which the Company is
bound.

     Section 6.2.4.  AFFIRMATIVE COVENANTS

     The Company shall, and shall cause each Subsidiary to:

     (a)  use all commercially reasonable efforts to cause to be done all
things necessary to maintain, preserve and renew its corporate existence,
all material Licenses, Approvals, authorizations and permits necessary to
the conduct of its business, except where the failure to do so will not
have a Material Adverse Effect;

     (b)  maintain and keep its properties in good repair, working order
and condition, and from time to time make all necessary repairs, renewals
and replacements, so that its businesses may be properly conducted at all
times;

     (c)  pay and discharge when payable all taxes, assessments and
governmental charges imposed upon its properties or upon the income or
profits therefrom (in each case before the same becomes delinquent and
before penalties accrue thereon) and all claims for labor, materials or
supplies to the extent to which the failure to pay or discharge such
obligations would reasonably be expected to have a material adverse
effect upon the financial condition of the Company and its Subsidiaries,
taken as a whole, unless and to the extent that the same are being
contested in good faith and by appropriate proceedings and adequate
reserves (as determined in accordance with GAAP, consistently applied)
have been established on its books with respect thereto;

     (d)  comply with all other material obligations which it incurs
pursuant to any contract or agreement as such obligations become due to
the extent to which the failure to so comply would reasonably be expected
to have a material adverse effect upon the financial condition of the
Company and its Subsidiaries, taken as a whole, unless and to the extent
that the same are being contested in good faith and by appropriate
proceedings and adequate reserves (as determined in accordance with GAAP,
consistently applied) have been established on its books with respect
thereto;

     (e)  comply in all material respects with all applicable laws, rules
and regulations of all governmental authorities, the violation of which
would reasonably be expected to have a material adverse effect upon the
financial condition of the Company and its Subsidiaries taken as a whole;

                                      27
<PAGE>
     (f)  maintain proper books of record and account which fairly
present its financial condition and results of operations and make
provisions on its financial statements for all such proper reserves as in
each case are required in accordance with GAAP, consistently applied; and

     (g)  maintain in full force and effect a policy or policies of
standard comprehensive general liability insurance underwritten by a U.S.
insurance company insuring its properties and business against such
losses and risks, and in such amounts, as are adequate for its business
and as are customarily carried by entities of similar size engaged in the
same or similar business (such policies shall include property loss
insurance policies, with extended coverage, sufficient in amount to allow
the replacement of any of its tangible properties which might be damaged
or destroyed by the risks or perils normally covered by such policies).

     Section 6.2.5.  SBIC REGULATORY PROVISIONS.

      (a) The Company shall notify each Holder which is a SBIC (a "SBIC
HOLDER") as soon as practicable (and, in any event, not later than 15 days)
prior to taking any action after which the number of record holders of the
Company's voting stock would be increased from fewer than 50 to 50 or more, and
the Company shall notify each SBIC Holder of any other action or occurrence
after which the number of record holders of the Company's voting stock was
increased (or would increase) from fewer than 50 to 50 or more, as soon as
practicable after the Company becomes aware that such other action or
occurrence has occurred or is proposed to occur.

     (b)  The Company shall give CVCA thirty (30) days prior notice
before taking any affirmative steps which would cause the representations
in SECTION 4.1.26 to be untrue, and the Company shall use its best
efforts to notify CVCA promptly at any time in which the Company
reasonably believes the representations contained in SECTION 4.1.26 to be
untrue, whether as a result of the Company's affirmative actions or
otherwise.

     Section 6.2.6.  REGULATORY COMPLIANCE COOPERATION.

      (a)   In the event that any SBIC Holder determines that it has a
Regulatory Problem (as defined below), to the extent reasonably necessary, such
SBIC Holder shall have the right to transfer its Warrants, Common Stock issued
upon exercise of the Warrants and/or Preferred Stock to any (x) Affiliate or
(y) to the extent an Event of Non-Compliance has not occurred and is not then
continuing, with the consent of the Company (which consent shall not be
unreasonably delayed or withheld), an unaffiliated third party without regard
to any restrictions on transfer set forth in this Agreement or the Related
Documents other than federal and state securities law restrictions (provided
that the transferee agrees to acquire and assume the rights and obligations of
such SBIC Holder under this Agreement), and the Company shall take all such
actions as are reasonably requested by such SBIC Holder in order to
(i) effectuate and facilitate such transfer by such SBIC Holder of any
securities of the Company then held by such SBIC Holder to such Person,
(ii) permit such SBIC Holder (or any of its Affiliates) to exchange all or any
portion of voting Common Stock then held by it on a share-for-share basis for
shares of a class of nonvoting Common Stock of the Company, which nonvoting
Common Stock shall be identical in all respects to such voting Common Stock,
except that such non-voting Common Stock shall be nonvoting and shall be
convertible into voting Common Stock on such terms as are requested by such
SBIC Holder in light of regulatory considerations then prevailing,
(iii) continue and preserve the respective allocation of the voting interests
                                      28
<PAGE>
with respect to the Company arising out of the SBIC's ownership of voting
securities and/or provided for in the Stockholders Agreement before the
transfers and amendments referred to above (including entering into such
additional agreements as are reasonably requested by such SBIC Holder to permit
any Person(s) designated by such SBIC Holder to exercise any voting power which
is relinquished by such SBIC Holder, and (iv) amend this Agreement, the Amended
and Restated Certificate of Incorporation, and any other related documents,
agreements or instruments to effectuate and reflect the foregoing.

      (b) For purposes of this Agreement, a "REGULATORY PROBLEM" means any set
of facts or circumstances wherein it has been asserted by any governmental
regulatory agency (or any SBIC Holder reasonably believes in good faith that
there is a substantial risk of such assertion) that such SBIC Holder and its
Affiliates are not entitled to hold, or exercise any significant right with
respect to, any securities issued by the Company.

     Section 6.2.7.  FURTHER ASSURANCES

     The Company will use its commercially reasonable efforts to cure
promptly any defects in the creation and issuance of the Preferred Stock,
Warrants and Common Stock issued upon exercise of Warrants, and in the
execution and delivery of this Agreement.  The Company, at its expense,
will promptly execute and deliver to the Purchasers upon reasonable
request all such other and further documents, agreements and instruments
in compliance with or pursuant to its covenants and agreements herein,
and will make any recordings, file any notices, and obtain any consents
as may be reasonably necessary or appropriate in connection therewith.

     Section 6.2.8.  RESERVATION AND AUTHORIZATION OF COMMON STOCK

          (a)   The Company shall at all times reserve and keep available for
issue upon the exercise or conversion of Warrants such number of its
authorized but unissued shares of Common Stock as will be sufficient to
permit the exercise in full of all outstanding Warrants.

     (b)  Before taking any action which would result in an adjustment in
the number of shares of Common Stock comprising a Stock Unit (as defined
in the Warrants) or which would cause an adjustment reducing the Exercise
Price (as defined in the Warrants) per share of Common Stock below the
then par value, if any, of the shares of Common Stock issuable upon
exercise of the Warrants, the Company shall take any corporate action
which is necessary in order that the Company may validly and legally
issue fully paid and nonassessable shares of Common Stock free and clear
of any liens upon the exercise of all the Warrants immediately after the
taking of such action.

     (c)  The Company will list on each national securities exchange
(including Nasdaq) on which any Common Stock may at any time be listed,
subject to official notice of issuance upon exercise of the Warrants, and
will maintain such listing of, all shares of Common Stock from time to
time issuable upon the exercise of the Warrants.

     SECTION 6.2.9.  FINANCIAL STATEMENTS; INFORMATION

     (a)  The Company shall provide the Purchasers with all financial
statements and information pursuant to Section 2.4 of the Stockholders
Agreement as if each Purchaser was a "Qualified Holder" as defined
thereunder.
                                   29
<PAGE>

     (b)  The Company shall provide the Purchasers with all financial
statements and other information provided to the lenders pursuant to the
Credit Facility.

     Section 6.2.10.  FORM 1099

     After having made due inquiry, the Company will not take the
position in any respect for federal, state or local income tax purposes
that there is any actual or constructive dividend paid to any holder of
Preferred Stock based on the terms thereof (other than in connection with
distributions in respect of, or redemptions of, Preferred Stock paid in
cash), unless advised by counsel or the Company's independent accountants
in writing that there is no reasonable basis for the Company to take the
position adopted in this Section 6.1.10.

                               ARTICLE VIA

        REGISTRATION RIGHTS IN RESPECT OF REGISTRABLE SECURITIES

     Section 6A.1  NOTICE

     If at any time on or after the Closing Date, the Company proposes
to effect the registration of all or any part of any equity securities of
the Company, whether as a primary registration or as a registration of
securities requested by a stockholder, under the Securities Act, the
Company shall promptly, and in any event at least 30 days prior to the
effective date of the proposed registration statement, give written
notice of such proposed registration to all holders of Registrable
Securities.  Each holder of Registrable Securities that wishes to
register any of its Registrable Securities (each, a "SELLER") shall,
within 20 days after receipt of such notice from the Company, deliver to
the Company a notice (a "SELLER NOTICE") stating that such Seller wishes
to participate in such offering and setting forth the number of shares of
Registrable Securities that such Seller desires to include in such
offering.  The Company thereupon shall as expeditiously as possible use
its best efforts (or in the case of the Company's initial registered
public offering of equity securities under the Securities Act, reasonable
efforts) to effect the registration under the Securities Act of such
shares of Registrable Securities, subject in all cases to a determination
by the managing underwriter, or financial adviser, as the case may be,
that the registration of such Registrable Securities will not jeopardize
the success of the proposed offering.

     Section 6A.2 PRORATION

     If the underwriter (or, if the offering is not underwritten, an
independent financial advisor to the Company) determines that marketing
factors require a limitation on the number of securities to be offered
and sold in the offering, including securities requested to be offered
and sold by Sellers, there shall be included in the offering only that
number of securities that the underwriter, or financial advisor, as the
case may be, believes will not jeopardize the success of the offering.
Any reduction in the number of securities to be so offered shall be
pro-rata among the Sellers and all other Persons (other than the Company
or securityholders who are exercising "demand" registration rights),
proposing to sell securities pursuant to such offering, based on the
number of securities originally proposed to be sold by each such person.

NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO LIMIT IN ANY WAY THE
COMPANY'S RIGHT, IN ITS SOLE DISCRETION, TO WITHDRAW ANY REGISTRATION
STATEMENT BEFORE SUCH REGISTRATION STATEMENT BECOMES EFFECTIVE OR TO
POSTPONE THE OFFERING OF SECURITIES CONTEMPLATED BY ANY SUCH REGISTRATION
STATEMENT.
                                     30
<PAGE>

     SECTION 6A.3  REGISTRATION PROCEDURES

     If and whenever the Company is required by the provisions of
Section 6A.1 hereof to use its best efforts, or reasonable efforts, as
the case may be, to effect the registration of any Registrable Securities
under the Securities Act, the Company shall, as expeditiously as
possible,

          (i) prepare and file with the SEC a registration statement with
     respect to such securities and use its best efforts (or reasonable
     efforts, as applicable) to cause such registration statement to
     become and remain effective for a period of not less than 120 days
     in the case of the Company's initial registration of equity
     securities under the Securities Act and 90 days in the case of any
     subsequent registration, or such shorter period as is necessary to
     permit the sale of such securities in accordance with the plan of
     distribution chosen by the Seller or Sellers and the underwriter;

          (ii) prepare and file with the SEC such amendments and
     supplements to such registration statement and the prospectus used
     in connection therewith as may be necessary to keep such
     registration statement effective and to comply with the provisions
     of the Securities Act with respect to the sale or other disposition
     of all securities covered by such registration statement;

          (iii) furnish to each Seller such numbers of copies of a
     prospectus, including a preliminary prospectus, in conformity with
     the requirements of the Securities Act, and such other documents, as
     such Seller may reasonably request in order to facilitate the public
     sale or other disposition of the Registrable Securities owned by
     such Seller;

          (iv) use its best efforts to register or qualify the securities
     covered by such registration statement under such other securities
     or blue sky laws of such jurisdictions within the United States as
     each Seller shall reasonably request, and do such other reasonable
     acts and things as may be requested of it to enable such Seller to
     consummate the public sale or other disposition in such
     jurisdictions of the securities owned by such Seller, except that
     the Company shall not for any such purpose be required to (i)
     qualify to do business as a foreign corporation in any jurisdiction
     wherein it is not so qualified, (ii) subject itself to taxation in
     any jurisdiction solely by reason of such registration or
     qualification or (iii) consent to general service of process in any
     jurisdiction;

          (v) use its best efforts to cause the securities covered by
     such registration statement to be registered with or approved by
     such other governmental agencies or authorities as may be necessary
     to enable the Seller or Sellers thereof to consummate the
     disposition of such securities, except that the Company shall not
     for any such purpose be required to (i) qualify to do business as a
     foreign corporation in any jurisdiction wherein it is not so
     qualified, (ii) subject itself to taxation in any jurisdiction
     solely by reason of such registration or qualification or (iii)
     consent to general service of process in any jurisdiction;

          (vi) notify each Seller of any securities covered by such
     registration statement, at any time when a prospectus relating
     thereto is required to be delivered under the Securities Act, of the
     Company's becoming aware that the prospectus included in such
     registration statement, as then in effect, includes an untrue
     statement of a material fact or omits to state any material fact
                                     31
<PAGE>
     required to be stated therein or necessary to make the statements
     therein not misleading in the light of the circumstances then
     existing (upon receipt of which each Seller agrees to forthwith
     cease making offers and sales of such securities pursuant to such
     prospectus and to deliver to the Company any copies of such
     prospectus then in the possession of such Seller), and at the
     request of any such Seller promptly prepare and furnish to such
     Seller a reasonable number of copies of a prospectus supplemented or
     amended so that, as thereafter delivered to the purchasers of such
     securities, such prospectus shall not include an untrue statement of
     a material fact or omit to state a material fact required to be
     stated therein or necessary to make the statements therein not
     misleading in the light of the circumstances then existing;

          (vii) make available to its security holders, as soon as
     reasonably practicable, an earnings statement covering the period of
     at least twelve months, but not more than eighteen months, beginning
     with the first full calendar month after the effective date of the
     registration statement, which earnings statement shall satisfy the
     provisions of Section 11(a) of the Securities Act and Rule 158
     promulgated thereunder (or any successor provision);

          (viii) otherwise use its best efforts to comply with all
     applicable rules and regulations of the SEC;

          (ix) use its best efforts to list such securities on any
     securities exchange on which similar securities then issued by the
     Company are then listed, or, if not so listed, on a national
     securities exchange (including the Nasdaq stock market), if the
     listing of such securities is then permitted under the rules of such
     exchange;

          (x) provide a transfer agent and registrar for all the
     securities covered by such registration statement not later than the
     effective date of such registration statement;

          (xi) enter into such agreements (including an underwriting
     agreement in customary form containing without limitation customary
     indemnity and contribution provisions for the benefit of the
     underwriter or underwriters and the Seller or Sellers) and take such
     other actions as the Seller or Sellers shall reasonably request in
     order to expedite or facilitate the disposition of such securities;

          (xii) make available for inspection by any Seller of securities
     covered by such registration statement, by any underwriter
     participating in any disposition to be effected pursuant to such
     registration statement and by any attorney, accountant or other
     agent retained by any such Seller or any such underwriter, all
     pertinent financial and other records, pertinent corporate documents
     and properties of the Company, and cause all of the Company's
     officers, directors and employees to supply all information
     reasonably requested by any such Seller, underwriter, attorney,
     accountant or agent in connection with such registration statement;
     and

          (xiii) permit any Seller of securities covered by such
     registration statement to require the insertion therein of material,
     furnished to the Company in writing, which in the reasonable
     judgment of such Seller should be included.

                                      32
<PAGE>
IF ANY SUCH REGISTRATION OR COMPARABLE STATEMENT REFERS TO ANY SELLER BY
NAME OR OTHERWISE AS THE HOLDER OF ANY SECURITIES OF THE COMPANY, THEN
SUCH SELLER SHALL HAVE THE RIGHT TO REQUIRE (A) THE INSERTION THEREIN OF
LANGUAGE, IN FORM AND SUBSTANCE SATISFACTORY TO SUCH SELLER, TO THE
EFFECT THAT THE HOLDING BY SUCH SELLER OF SUCH SECURITIES IS NOT TO BE
CONSTRUED AS A RECOMMENDATION BY SUCH SELLER OF THE INVESTMENT QUALITY OF
THE COMPANY'S SECURITIES COVERED THEREBY AND THAT SUCH HOLDING DOES NOT
IMPLY THAT SUCH SELLER WILL ASSIST IN MEETING ANY FUTURE FINANCIAL
REQUIREMENTS OF THE COMPANY, OR (B) IN THE EVENT THAT SUCH REFERENCE TO
SUCH SELLER BY NAME OR OTHERWISE IS NOT REQUIRED BY THE SECURITIES ACT,
THE DELETION OF THE REFERENCE TO SUCH SELLER.

     The Company may require each holder of Registrable Securities to,
and each such holder, as a condition to including Registrable Securities
in such registration, shall, furnish the Company with such information
and affidavits regarding such holder and the distribution of such
securities as the Company may from time to time reasonably request in
writing in connection with such registration.  If so required, each
holder of Registrable Securities participating in an underwritten public
offering shall enter into and perform its obligations under an
underwriting agreement, as well as a custody agreement and power of
attorney, all in usual and customary form.

     Section 6A.4  HOLDBACK ON SALES

     The Company and the Purchasers hereby agree on and after the
Closing Date not to effect any public sale or distribution of any
securities similar to those registered in accordance with Section 6A.3
hereof during the 14 day period prior to, and during the 180 day period
beginning on, the effective date of any registration statement (except as
part of such registration statement).

     Section 6A.5  EXPENSES

     All expenses incurred in complying with this Article VIA,
including, without limitation, all registration, filing, securities
exchange listing fees and fees of any applicable stock exchange, all
registration, filing, qualification and other fees and expenses of
complying with securities or blue sky laws of any jurisdiction, all word
processing, duplicating and printing expenses, messenger and delivery
expenses, and the fees and disbursements of counsel and accountants for
the Company, the reasonable fees and disbursements of one counsel for the
Seller or the Sellers (to be chosen by the Seller or by the Sellers
holding a majority of the Preferred Stock to be included by Sellers in a
registration statement), expenses of any special audits incident to or
required by any such registration, shall be paid by the Company;
provided, that in no event shall the Company be required to pay any
underwriting discounts, commissions or fees attributable to the sale of
Registrable Securities by a Seller hereunder.

                               ARTICLE VIB

                         [INTENTIONALLY OMITTED]

                               ARTICLE VIC

            INDEMNIFICATION IN RESPECT OF REGISTRATION RIGHTS

     SECTION 6C.1  INDEMNIFICATION BY THE COMPANY

     In the event of any registration by the Company of any of its
Registrable Securities pursuant to Article 6A, the Company shall, and
                                   33
<PAGE>
hereby agrees to, to the full extent permitted by applicable law,
indemnify and hold harmless each seller of Registrable Securities
pursuant to Article 6A ("each, an INDEMNIFIED SELLER"), and their
respective general or limited partners, directors, officers, employees
and each other Person, if any, who controls such Indemnified Seller
within the meaning of the Securities Act, against any Losses to which any
such Indemnified Seller or any such other Person may become subject under
the Securities Act or otherwise, insofar as such Losses (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the applicable registration statement,
any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, or any
omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein (in the
case of a prospectus, in the light of the circumstances under which they
were made) not misleading, and the Company will reimburse the Indemnified
Sellers and each such other Person for any legal or any other expenses
reasonably incurred by them in connection with investigating or defending
any such Loss (or action or proceeding in respect thereof); PROVIDED that
the Company shall not be liable in any such case to the extent that any
such Loss (or action or proceeding in respect thereof) arises out of or
is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in such registration statement, preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement
in reliance upon and in conformity with written information furnished to
the Company by the Indemnified Seller specifically for use in the
preparation thereof; PROVIDED FURTHER, however that with respect to any
untrue statement or omission or alleged untrue statement or omission made
in any preliminary prospectus, the indemnity agreement contained in this
paragraph shall not apply to the extent that any such Loss results from
the fact that a current copy of the prospectus was not sent or given to
the person asserting any such Loss at or prior to the written
confirmation of the sale of the securities concerned to such person if
the Company had prior thereto given the Indemnified Seller the notice
referred to in Section 6A.3(vi) and provided to such Indemnified Seller a
supplemented or amended prospectus as contemplated by Section 6A.3(vi)
and such current copy of the prospectus would have cured the defect
giving rise to such Loss.  Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of such
seller or any such other Person, and shall survive the transfer of such
securities by such seller.  The Company shall also indemnify each other
Person who participates (including as an underwriter) in the offering or
sale of Registrable Securities, their partners, officers, directors,
employees and each other Person, if any, who controls any such
participating Person within the meaning of the Securities Act to the same
extent as provided above with respect to Indemnified Sellers.

     SECTION 6C.2  INDEMNIFICATION BY THE SELLERS

     Each Indemnified Seller, as a condition to including its
securities in the applicable registration statement, shall, to the full
extent permitted by law, indemnify and hold harmless the Company, its
directors, officers, employees, agents and each other Person, if any, who
controls the Company within the meaning of the Securities Act, against
any Losses to which the Company or any such other Person may become
subject under the Securities Act or otherwise, insofar as such Losses (or
actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in such registration
statement, any preliminary prospectus, final prospectus or summary
prospectus contained therein, or any amendment or supplement thereto, or
any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein
                                        34
<PAGE>
(in the case of a prospectus, in the light of the circumstances under
which they were made) not misleading, if such untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company
by such Indemnified Seller specifically for use in the preparation
thereof; PROVIDED, HOWEVER, that the obligation to provide
indemnification pursuant to this Section 6C.2 shall be several, and not
joint and several, among each of the Indemnified Sellers on the basis of
the number of securities included by each in the applicable registration
statement and the aggregate amount which may be recovered from any holder
of securities pursuant to the indemnification provided for in this
Section 6C.2 in connection with any sale of Registrable Securities shall
be limited to the total proceeds received by such holder from the sale of
such securities.  Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Company or
any such other Person and shall survive the transfer of such securities
by an Indemnified Seller.

     SECTION 6C.3  NOTICES OF CLAIMS, ETC.

       Promptly after receipt by a party entitled to indemnity under this
Article 6C of notice of the commencement of any action or proceeding
(including a governmental action or proceeding) involving a claim
referred to in Section 6C.1. or 6C.2 (a "PROCEEDING"), such indemnified
party will, if a claim in respect thereof is to be made against a person
obligated to provide indemnity under this Article 6C pursuant to such
provisions, give written notice to the latter (in the manner provided in
Section 8.6 hereof) of the commencement of such Proceeding; but the
omission so to notify the indemnifying party will not relieve the
indemnifying party from any liability which the indemnifying party may
have to any party entitled to indemnity under this Article 6C except to
the extent that the indemnifying party is materially prejudiced thereby.
The indemnifying party shall have the right, exercisable by giving
written notice to an indemnified party promptly after the receipt of
written notice from such indemnified party of such Proceeding, to assume,
at its expense, the defense of any such Proceeding with counsel
reasonably satisfactory to such indemnified party; PROVIDED, HOWEVER,
that an indemnified party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such
indemnified party unless (1) the indemnifying party agrees to pay such
fees and expenses, (2) the indemnifying party fails to assume promptly
the defense of such Proceeding or fails to employ counsel reasonably
satisfactory to such indemnified party or (3) the indemnified party shall
have been advised by counsel, in its reasonable judgment, that there is
reasonably likely to be a conflict between the positions of such
indemnified party and any other party represented by such counsel in such
Proceeding which makes it improper, under generally acceptable standards
of professional conduct, for the same counsel to represent both the
indemnified party and such other party; PROVIDED that the indemnifying
party shall not, in connection with any one such Proceeding or separate
but substantially similar or related Proceedings, be liable for the fees
and expenses of more than one separate firm of attorneys for all such
indemnified parties.  The indemnifying party will not be subject to any
liability for any settlement made without its consent (which will not be
unreasonably delayed or withheld); PROVIDED that, if such Proceeding is
settled with its written consent or if there shall be a final judgment
for the claimant or plaintiff in such Proceeding, the indemnifying party
shall indemnify and hold harmless the indemnified party from and against
any Losses by reason of such settlement or judgment for which such
indemnified party would be entitled to indemnification hereunder.  The
indemnifying party shall not, without the consent of an indemnified
party, consent to entry of any judgment or enter into any settlement that
does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release, in form and
                                     35
<PAGE>
substance satisfactory to such indemnified party, from all liability in
respect of such Proceeding for which such indemnified party would be
entitled to indemnification hereunder.

     Section 6C.4  CONTRIBUTION

     If the indemnification provided for in this Article 6C is
unenforceable although available to an indemnified party in respect of
any Losses referred to therein or is insufficient to hold an indemnified
party harmless for any Losses in respect of which the provisions of
Section 6C.1 and/or 6C.2 would otherwise apply by their terms, then the
indemnifying party shall contribute to the aggregate amount paid or
payable by the indemnified party as a result of such Losses in such
proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other
hand in connection with statements or omissions which resulted in such
Losses, as well as any other relevant equitable considerations.  The
relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to
information supplied by the indemnifying party or the indemnified party
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission.  The
amount paid by an indemnified party as a result of the Losses referred to
above shall be deemed to include any legal and other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any Loss which is the subject of this paragraph.

     The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6C.4 were to be determined by pro
rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately
preceding paragraph.  No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

                               ARTICLE VII

                               TERMINATION

     Section 7.1.  TERMINATION

     (a) This Agreement may be terminated at any time prior to the
Closing:

          (i) by mutual consent of the Company and the Purchasers;

          (ii) by either the Company or the Purchasers if the Closing
     shall not have occurred by May 31, 2000; PROVIDED, HOWEVER, that the
     failure to consummate the transactions contemplated hereby is not a
     result of the failure by the party so electing to terminate this
     Agreement to perform any of its obligations hereunder;

          (iii) by either the Company or the Purchasers if a material
     breach of any provision of this Agreement has been committed by a
     party other than the party so electing and such breach has not been
     satisfied, cured or waived; or
                                        36
<PAGE>

          (iv) by the Company or the Purchasers, if any of the respective
     conditions to such Person's performance set forth in SECTION 3.1,
     3.2 or 3.3 hereof, as applicable, have not been satisfied or waived
     as of the Closing Date or if satisfaction of any such a condition is
     or becomes impossible (other than through the failure of the Person
     seeking to terminate this Agreement pursuant to this CLAUSE (IV) to
     comply with any of its respective obligations under this Agreement).

     (b)  If the Closing has not occurred on or prior to May 31, 2000,
this Agreement shall automatically terminate unless the parties hereto
unanimously agree, in writing on or prior to such date, to postpone such
termination.

     Section 7.2.  EFFECT OF TERMINATION

     If this Agreement shall be validly terminated pursuant to SECTION
7.1, all obligations, representations and warranties of the parties
hereto under this Agreement shall terminate and there shall be no
liability of any party to another party, except as otherwise expressly
provided herein.

                              ARTICLE VIII

                              MISCELLANEOUS

     Section 8.1.  PAYMENT OF COSTS AND EXPENSES

     If the Closing occurs, the Company agrees to pay on demand all
reasonable expenses of each of the Purchasers (including the reasonable
fees and out-of-pocket expenses of Milbank, Tweed, Hadley & McCloy,
special counsel to the Purchasers) in connection with:

            (a) the evaluation of the transactions contemplated hereunder; the
      review, negotiation, preparation, execution and delivery of this
      Agreement and the Related Documents and the review of the Other Financing
      Documents, in each case including schedules and exhibits, and any other
      documents, agreements or instruments related hereto or thereto; the
      evaluation of the transactions thereunder; and any amendments, waivers,
      consents, supplements or other modifications hereto or thereto as may
      from time to time hereafter be required, whether or not the transactions
      contemplated hereby are consummated; and

            (b) the preparation and/or review of the form of any document or
      instrument relevant to the transactions contemplated hereby, by the
      Related Documents, the Other Financing Documents or any other document or
      instrument related hereto or thereto.

THE COMPANY FURTHER AGREES TO PAY, AND TO SAVE THE PURCHASERS HARMLESS
FROM ALL LIABILITY FOR, ANY STAMP OR OTHER SIMILAR TAXES WHICH MAY BE
PAYABLE IN CONNECTION WITH THE EXECUTION OR DELIVERY OF THIS AGREEMENT,
THE ISSUANCE AND SALE OF PREFERRED STOCK OR WARRANTS OR THE COMMON STOCK
ISSUABLE UPON EXERCISE OF THE WARRANTS.  THE COMPANY ALSO AGREES TO
REIMBURSE EACH PURCHASER UPON DEMAND FOR ALL REASONABLE OUT-OF-POCKET
EXPENSES (INCLUDING ATTORNEYS' FEES AND LEGAL EXPENSES) INCURRED BY SUCH
PURCHASER IN CONNECTION WITH SUCH PURCHASER'S ENFORCEMENT OF THE
COMPANY'S OBLIGATIONS HEREUNDER OR UNDER THE RELATED DOCUMENTS.

     Section 8.2.  [Intentionally Omitted]
                                      37
<PAGE>

     Section 8.3.  BROKERAGE

     Each party hereto will indemnify and hold harmless the others
against and in respect of any claim for brokerage or other commission
relative to this Agreement or to the transaction contemplated hereby,
based in any way on agreements, arrangements or understandings made or
claimed to have been made by such party with any third party.

     Section 8.4.  [Intentionally Omitted]

     Section 8.5.  ASSIGNMENT; PARTIES IN INTEREST

     Neither this Agreement nor any right, interest or obligation
hereunder may be assigned by the Company, without the prior written
consent of the Purchasers (which consent shall not be unreasonably
withheld), and any attempt to do so will be void.  Except as set forth in
the preceding sentence, all covenants, agreements, rights and obligations
contained in or arising out of this Agreement by or on behalf of any of
the parties hereto shall bind and inure to the benefit of the respective
legal representatives, successors and assigns of the parties hereto
whether so expressed or not.

     Section 8.6. NOTICES

     All notices, demands or other communications to be given or
delivered under or by reason of the provisions of this Agreement or any
Related Document shall be in writing and shall be deemed to have been
given when delivered personally to the recipient, sent to the recipient
by reputable express courier service (charges prepaid), mailed to the
recipient by certified or registered mail, return receipt requested and
postage prepaid, or sent by telecommunications facsimile.  Such notices,
demands and other communications shall be sent to the Company and the
Purchasers at the addresses (or facsimile numbers) set forth below their
respective names on SCHEDULE II hereto or to such other address (or
facsimile number) or to the attention of such other Person as the
recipient party has specified by prior written notice to the sending
party.

     Section 8.7.  NO WAIVER

     No failure to exercise and no delay in exercising any right,
power or privilege granted under this Agreement shall operate as a waiver
of such right, power or privilege.  No single or partial exercise of any
right, power or privilege granted under this Agreement shall preclude any
other or further exercise thereof or the exercise of any other right,
power or privilege.  The rights and remedies provided in this Agreement
are cumulative and are not exclusive of any rights or remedies provided
by law.

     Section 8.8.  AMENDMENT

     This Agreement may be modified or amended only by a writing
signed by or on behalf of the Company and the Purchasers.

     SECTION 8.9.  SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND
AGREEMENTS

     The representations, warranties, covenants and agreements
contained in this Agreement or any other instrument delivered pursuant to
this Agreement shall survive the Closing hereunder.

     Section 8.10.  GOVERNING LAW

     The corporate law of Delaware shall govern all issues concerning
the relative rights of the Company and its shareholders.  All other
issues hereunder shall be governed by and construed in accordance with
the procedural and substantive laws of the State of New York without
regard for its conflicts of laws rules.  The Company agrees that it may
be served with process in the State of New York and any action for breach
of this Agreement may be prosecuted against it in the courts of that
State.
                                         38
<PAGE>

     SECTION 8.11.  SPECIFIC PERFORMANCE

     Damages in the event of breach of this Agreement by either the
Company or the Purchasers would be difficult, if not impossible, to
ascertain, and it is therefore agreed that the Company and the
Purchasers, in addition to and without limiting any other remedy or right
it may have, will have the right to an injunction or other equitable
relief in any court of competent jurisdiction, enjoining any such breach,
and enforcing specifically the terms and provisions hereof, and the
Company and the Purchasers hereby waive any and all defenses it may have
on the ground of lack of jurisdiction or competence of the court to grant
such an injunction or other equitable relief.  The existence of this
right will not preclude the Company or the Purchasers from pursuing any
other rights and remedies at law or in equity which the Company or the
Purchasers may have.

     SECTION 8.12.  ENTIRE UNDERSTANDING

     This Agreement expresses the entire understanding of the parties
and supersedes all other prior and contemporaneous agreements and
undertakings of the parties with respect to the subject matter of this
Agreement.

     Section 8.13.  COUNTERPARTS

     This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original but all of which taken
together shall constitute one agreement.

<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Agreement under
seal as of the date first above written.

                              BPC HOLDING CORPORATION

                              By:  /S/ JAMES M. KRATOCHVIL
                                 Name: James M. Kratochvil

                             Title: Executive Vice President,
                                    Chief Financial Officer,
                                    Treasurer and Secretary

                              CHASE VENTURE CAPITAL ASSOCIATES, LLC

                              By:   Chase Capital Partners,
                                 its Investment Manager

                              By:  /S/ RICK WATERS
                                 Name: Rick Waters
                                 Title: General Partner - Mezzanine

                              THE NORTHWESTERN MUTUAL LIFE INSURANCE
                              COMPANY

                              By:  /S/ RICHARD A. STRAIT
                                 Name:  Richard A. Strait
                                 Title:    Its Authorized Representative

<PAGE>

                           DISCLOSURE SCHEDULE

ITEM 4.1.1          Company and Existing Subsidiaries (Name, Jurisdiction
                      of Incorporation)

ITEM 4.1.2          Power and Authority

ITEM 4.1.5          Consents and Approvals

ITEM 4.1.6          Pro Forma Balance Sheet

ITEM 4.1.7          Financial Statements

ITEM 4.1.8          Material Adverse Change

ITEM 4.1.9          Subsequent Events

ITEM 4.1.10         Liabilities

ITEM 4.1.11         Taxes

ITEM 4.1.12         Litigation

ITEM 4.1.13         Insurance

ITEM 4.1.14         Conflict of Interest

ITEM 4.1.15         Other Relationships

ITEM 4.1.16         Licenses

ITEM 4.1.17(a)      Intellectual Property Rights

ITEM 4.1.17(b)      Royalties and Other Fees

ITEM 4.1.19         Brokers

ITEM 4.1.22         Contracts and Commitments

ITEM 4.1.23         Customers and Suppliers

ITEM 4.1.24         Employee Benefit Plans

ITEM 4.1.25         Environmental Matters

ITEM 4.1.26         Lending Activities

<PAGE>

ITEM 4.1.27         Title to Properties

ITEM 4.1.28         Assets

ITEM 4.1.29         Real Property
<PAGE>
                                                               SCHEDULE I

                       PURCHASER INFORMATION
<TABLE>
<CAPTION>
           INVESTOR                 UNITS       SERIES A-1    NON-VOTING WARRANT  PURCHASE PRICE
                                                 PREFERRED           STOCK              ($)
                                                  SHARES
<S>                            <C>            <C>             <C>                <C>
Chase Venture Capital                     600         600,000             15,599       15,000,000
Associates, LLC
The Northwestern                          400         400,000             10,398       10,000,000
Mutual Life Insurance Company
</TABLE>
<PAGE>
                                 SCHEDULE II

                                  ADDRESSES

If to the Company:

  BPC Holding Corporation
  101 Oakley Street
  P.O. Box 959
  Evansville, IN  47706-0959
  Telecopier:  (812) 421-9604
  Attention:  Mr. Martin R. Imbler

  with copies to:

  First Atlantic Capital, Ltd. O'Sullivan, Graev & Karabell, LLP
  135 East 57th Street        30 Rockefeller Plaza
  29th Floor                  41st Floor
  New York, NY  10022         New York, NY  10112
  Telecopier:  (212) 750-0954 Telecopier:  (212) 408-2420
  Attention:  Mr. Roberto Buaron Attention:  Michael J. O'Brien, Esq.

If to Chase Venture Capital Associates,
LLC:

  Chase Venture Capital Associates, LLC
  380 Madison Avenue
  12th Floor
  New York, New York  10017
  Telecopier:  (212) 622-3950
  Attention:  John M.B. O'Connor

  with copies to:

  Milbank, Tweed, Hadley & McCloy LLP
  One Chase Manhattan Plaza
  New York, New York  10005
  Telecopier:  (212) 530-0219
  Attention:  John T. O'Connor, Esq.

<PAGE>
If to Northwestern:

  The Northwestern Mutual Life Insurance Company
  720 East Wisconsin Avenue
  Milwaukee, Wisconsin  53202
  Telecopier:  (414) 299-7124
  Attention:  Securities Department
<PAGE>
                                                             SCHEDULE III

                 CAPITALIZATION SCHEDULE OF THE COMPANY
<PAGE>
                                                              SCHEDULE IV

                   CONSENTS RELATING TO THE PURCHASERS

          None.

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