Document:

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                                                                   Exhibit 10.16

                           REVOLVING CREDIT AGREEMENT

                           Dated as of March 29, 2000

                                      among

                       CABOT MICROELECTRONICS CORPORATION

                               FLEET NATIONAL BANK
       and the other lending institutions which may become a party thereto

                                       and

                          FLEET NATIONAL BANK, as Agent
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                    <C>
1.   DEFINITIONS AND RULES OF INTERPRETATION.........................................................   1
         1.1.   Definitions..........................................................................   1
         1.2.   Rules of Interpretation..............................................................   13
2.   THE REVOLVING CREDIT FACILITY...................................................................   15
         2.1.   Commitment to Lend...................................................................   15
         2.2.   Commitment Fee.......................................................................   15
         2.3.   Reduction of Total Commitment........................................................   15
         2.4.   The Notes............................................................................   15
         2.5.   Interest on Loans....................................................................   16
         2.6.   Requests for Loans...................................................................   16
                  2.6.1.   General...................................................................   16
                  2.6.2.   Swing Line................................................................   16
         2.7.   Conversion Options...................................................................   18
                  2.7.1.   Conversion to Different Type of Loan......................................   18
                  2.7.2.   Continuation of Type of Loan..............................................   18
                  2.7.3.   LIBOR Rate Loans..........................................................   18
         2.8.   Funds for Loan.......................................................................   18
                  2.8.1.   Funding Procedures........................................................   18
                  2.8.2.   Advances by Agent.........................................................   19
         2.9.   Settlements..........................................................................   19
                  2.9.1.   General...................................................................   19
                  2.9.2.   Failure to Make Funds Available...........................................   20
                  2.9.3.   No Effect on Other Banks..................................................   20
3.   REPAYMENT OF THE LOANS..........................................................................   20
         3.1.   Maturity.............................................................................   20
         3.2.   Mandatory Repayments of Loans........................................................   20
         3.3.   Optional Repayments of Loans.........................................................   21
4.   LETTERS OF CREDIT...............................................................................   21
         4.1.   Letter of Credit Commitments.........................................................   21
                  4.1.1.   Commitment to Issue Letters of Credit.....................................   21
                  4.1.2.   Letter of Credit Applications.............................................   22
                  4.1.3.   Terms of Letters of Credit................................................   22
                  4.1.4.   Reimbursement Obligations of Banks........................................   22
                  4.1.5.   Participations of Banks...................................................   22
         4.2.   Reimbursement Obligation of the Borrower.............................................   22
         4.3.   Letter of Credit Payments............................................................   23
         4.4.   Obligations Absolute.................................................................   23
         4.5.   Reliance by Issuer...................................................................   23
         4.6.   Letter of Credit Fee.................................................................   24
5.   CERTAIN GENERAL PROVISIONS......................................................................   24
         5.1.   Closing Fees.........................................................................   24
         5.2.   Funds for Payments...................................................................   24
                  5.2.1.   Payments to Agent.........................................................   24
                  5.2.2.   No Offset, etc............................................................   24
         5.3.   Computations.........................................................................   25
         5.4.   Inability to Determine LIBOR Rate....................................................   25
</TABLE>
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                                      -ii-

<TABLE>
<S>                                                                                                    <C>
         5.5.   Illegality...........................................................................   25
         5.6.   Additional Costs, etc................................................................   26
         5.7.   Capital Adequacy.....................................................................   26
         5.8.   Certificate..........................................................................   26
         5.9.   Indemnity............................................................................   26
         5.10.   Interest After Default..............................................................   26
6.   GUARANTIES......................................................................................   28
         6.1.   Guaranties of Subsidiaries...........................................................   28
7.   REPRESENTATIONS AND WARRANTIES..................................................................   28
         7.1.   Corporate Authority..................................................................   28
                  7.1.1.   Incorporation; Good Standing..............................................   28
                  7.1.2.   Authorization.............................................................   28
                  7.1.3.   Enforceability............................................................   28
         7.2.   Governmental Approvals...............................................................   28
         7.3.   Title to Properties; Leases..........................................................   28
         7.4.   Financial Statements and Projections.................................................   29
                  7.4.1.   Fiscal Year...............................................................   29
                  7.4.2.   Financial Statements......................................................   29
                  7.4.3.   Projections...............................................................   29
                  7.4.4.   Solvency..................................................................   29
         7.5.   No Material Changes, etc.............................................................   29
         7.6.   Franchises, Patents, Copyrights, etc.................................................   29
         7.7.   Litigation...........................................................................   30
         7.8.   No Materially Adverse Contracts, etc.................................................   30
         7.9.   Compliance with Other Instruments, Laws, etc.........................................   30
         7.10.   Tax Status..........................................................................   30
         7.11.   No Event of Default.................................................................   30
         7.12.   Holding Company and Investment Company Acts.........................................   30
         7.13.   Absence of Financing Statements, etc................................................   31
         7.14.   Certain Transactions................................................................   31
         7.15.   Employee Benefit Plans..............................................................   31
                  7.15.1.   In General...............................................................   31
                  7.15.2.   Terminability of Welfare Plans...........................................   31
                  7.15.3.   Guaranteed Pension Plans.................................................   31
                  7.15.4.   Multiemployer Plans......................................................   32
         7.16.   Use of Proceeds.....................................................................   32
                  7.16.1.   General..................................................................   32
                  7.16.2.   Regulations U and X......................................................   32
                  7.16.3.   Ineligible Securities....................................................   32
         7.17.   Environmental Compliance............................................................   32
         7.18.   Subsidiaries, etc...................................................................   34
         7.19.   Disclosure..........................................................................   34
8.   AFFIRMATIVE COVENANTS OF THE BORROWER...........................................................   34
         8.1.   Punctual Payment.....................................................................   34
         8.2.   Maintenance of Office................................................................   34
         8.3.   Records and Accounts.................................................................   34
         8.4.   Financial Statements, Certificates and Information...................................   34
         8.5.   Notices..............................................................................   35
</TABLE>
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                                     -iii-

<TABLE>
<S>                                                                                                    <C>
                  8.5.1.   Defaults..................................................................   35
                  8.5.2.   Environmental Events......................................................   36
                  8.5.3.   Notification of Claim against Assets......................................   36
                  8.5.4.   Notice of Litigation and Judgments........................................   36
         8.6.   Corporate Existence; Maintenance of Properties.......................................   36
         8.7.   Insurance............................................................................   37
         8.8.   Taxes................................................................................   37
         8.9.   Inspection of Properties and Books, etc..............................................   37
                  8.9.1.   General...................................................................   37
                  8.9.2.   Communications with Accountants...........................................   37
         8.10.   Compliance with Laws, Contracts, Licenses, and Permits..............................   37
         8.11.   Employee Benefit Plans..............................................................   37
         8.12.   Use of Proceeds.....................................................................   38
         8.13.   Replacement Instruments.............................................................   38
         8.14.   New Guarantors......................................................................   38
         8.15.   Additional Subsidiaries.............................................................   38
         8.16.   Further Assurances..................................................................   38
9.   CERTAIN NEGATIVE COVENANTS OF THE BORROWER......................................................   38
         9.1.   Restrictions on Indebtedness.........................................................   38
         9.2.   Restrictions on Liens................................................................   39
         9.3.   Restrictions on Investments..........................................................   40
         9.4.   Restricted Payments..................................................................   41
         9.5.   Merger, Consolidation and Disposition of Assets......................................   41
                  9.5.1.   Mergers and Acquisitions..................................................   41
                  9.5.2.   Disposition of Assets.....................................................   42
         9.6.   Sale and Leaseback...................................................................   42
         9.7.   Compliance with Environmental Laws...................................................   42
         9.8.   Employee Benefit Plans...............................................................   43
         9.9.   Business Activities..................................................................   43
         9.10.   Fiscal Year.........................................................................   43
         9.11.   Transactions with Affiliates........................................................   43
         9.12.   Upstream Limitations................................................................   43
         9.13.   Inconsistent Agreements.............................................................   44
         9.14.   Modification of Documents...........................................................   44
10.   FINANCIAL COVENANTS OF THE BORROWER............................................................   44
         10.1.   Leverage Ratio......................................................................   44
         10.2.   Quarterly Net Income................................................................   44
         10.3.   Debt Service Coverage Ratio.........................................................   44
         10.4.   Quick Ratio.........................................................................   44
11.   CLOSING CONDITIONS.............................................................................   44
         11.1.   Loan Documents......................................................................   44
         11.2.   Certified Copies of Charter Documents...............................................   44
         11.3.   Corporate Action....................................................................   45
         11.4.   Incumbency Certificate..............................................................   45
         11.5.   UCC Search Results..................................................................   45
         11.6.   Certificates of Insurance...........................................................   45
         11.7.   Solvency Certificate................................................................   45
         11.8.   Audited Financials..................................................................   45
</TABLE>
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                                      -iv-

<TABLE>
<S>                                                                                                    <C>
         11.9.   Completion of IPO...................................................................   45
         11.10.   Pro Forma Balance Sheet............................................................   45
         11.11.   Opinion of Counsel.................................................................   45
         11.12.   Payment of Fees....................................................................   45
12.   CONDITIONS TO ALL BORROWINGS...................................................................   46
         12.1.   Representations True; No Event of Default...........................................   46
         12.2.   No Legal Impediment.................................................................   46
         12.3.   Governmental Regulation.............................................................   46
         12.4.   Proceedings and Documents...........................................................   46
13.   EVENTS OF DEFAULT; ACCELERATION; ETC...........................................................   46
         13.1.   Events of Default and Acceleration..................................................   46
         13.2.   Termination of Commitments..........................................................   49
         13.3.   Remedies............................................................................   49
         13.4.   Distribution of Proceeds............................................................   50
14.   SETOFF.........................................................................................   50
15.   THE AGENT......................................................................................   51
         15.1.   Authorization.......................................................................   51
         15.2.   Employees and Agents................................................................   51
         15.3.   No Liability........................................................................   51
         15.4.   No Representations..................................................................   51
                  15.4.1.   General..................................................................   52
                  15.4.2.   Closing Documentation, etc...............................................   52
         15.5.   Payments............................................................................   52
                  15.5.1.   Payments to Agent........................................................   52
                  15.5.2.   Distribution by Agent....................................................   52
                  15.5.3.   Delinquent Banks.........................................................   53
         15.6.   Holders of Notes....................................................................   53
         15.7.   Indemnity...........................................................................   53
         15.8.   Agent as Bank.......................................................................   53
         15.9.   Resignation.........................................................................   53
         15.10.   Notification of Defaults and Events of Default.....................................   54
         15.11.   Duties in the Case of Enforcement..................................................   54
16.   EXPENSES AND INDEMNIFICATION...................................................................   54
         16.1.   Expenses............................................................................   54
         16.2.   Indemnification.....................................................................   55
         16.3.   Survival............................................................................   55
17.   USURY..........................................................................................   55
18.   SURVIVAL OF COVENANTS, ETC.....................................................................   56
19.   ASSIGNMENT AND PARTICIPATION...................................................................   56
         19.1.   Conditions to Assignment by Banks...................................................   56
         19.2.   Certain Representations and Warranties; Limitations; Covenants......................   56
         19.3.   Register............................................................................   57
         19.4.   New Notes...........................................................................   58
         19.5.   Participations......................................................................   58
         19.6.   Disclosure..........................................................................   58
         19.7.   Assignee or Participant Affiliated with the Borrower................................   58
         19.8.   Miscellaneous Assignment Provisions.................................................   59
         19.9.   Assignment by Borrower..............................................................   59
</TABLE>
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                                      -v-

<TABLE>
<S>                                                                                                    <C>
20.   NOTICES, ETC...................................................................................   59
21.   GOVERNING LAW..................................................................................   60
22.   HEADINGS.......................................................................................   60
23.   COUNTERPARTS...................................................................................   60
24.   ENTIRE AGREEMENT, ETC..........................................................................   60
25.   WAIVER OF JURY TRIAL...........................................................................   61
26.   CONSENTS, AMENDMENTS, WAIVERS, ETC.............................................................   61
27.   SEVERABILITY...................................................................................   61
</TABLE>
<PAGE>   7

                           REVOLVING CREDIT AGREEMENT

         This REVOLVING CREDIT AGREEMENT is made as of March 29, 2000, by and
among CABOT MICROELECTRONICS CORPORATION (the "Borrower"), a Delaware
corporation having its principal place of business at 870 Commons Drive, Aurora,
Illinois 60504 and FLEET NATIONAL BANK, a national banking association, and the
other lending institutions listed on Schedule 1 and FLEET NATIONAL BANK, as
agent for itself and such other lending institutions.

                   1. DEFINITIONS AND RULES OF INTERPRETATION.

         1.1. DEFINITIONS. The following terms shall have the meanings set forth
in this Section 1 or elsewhere iN the provisions of this Credit Agreement
referred to below:

         Accounts Receivable. All rights of the Borrower or any of the
Guarantors to payment for goods sold, leased, licensed or otherwise marketed in
the ordinary course of business or services rendered in the ordinary course of
business and all sums of money or other proceeds due thereon pursuant to
transactions with account debtors, net of any credits, rebates, offsets,
holdbacks or other adjustments or commissions payable to third parties that are
adjustments to such accounts receivable, and except for that portion of the sum
of money or other proceeds due thereon that relate to sales, use or property
taxes in conjunction with such transactions, recorded on books of account in
accordance with generally accepted accounting principles.

         Adjustment Date. The first day of the month immediately following the
month in which a Compliance Certificate is to be delivered by the Borrower
pursuant to Section 8.4(c).

         Affiliate. Any Person that would be considered to be an affiliate of
the Borrower under Rule 144(a) of the Rules and Regulations of the Securities
and Exchange Commission, as in effect on the date hereof, if the Borrower were
issuing securities.

         Agent's Head Office. The Agent's head office located at 100 Federal
Street, Boston, Massachusetts 02110, or at such other location as the Agent may
designate from time to time.

         Agent.  Fleet National Bank acting as agent for the Banks.

         Agent's Special Counsel. Bingham Dana LLP or such other counsel as may
be approved by the Agent.

         Applicable Margin. For each period commencing on an Adjustment Date
through the date immediately preceding the next Adjustment Date (each a "Rate
Adjustment Period"), the Applicable Margin shall be the applicable margin set
forth below with respect to the Borrower's Leverage Ratio, as determined for the
fiscal period of the Borrower and its Subsidiary ending on the fiscal quarter
ended immediately prior to the applicable Rate Adjustment Period.
<PAGE>   8
                                      -2-

<TABLE>
<CAPTION>

                                                             BASE RATE      LIBOR RATE
           TIER               LEVERAGE RATIO                   LOANS           LOANS        COMMITMENT FEE
         ----------  ------------------------------------  --------------  -------------  -------------------
<S>                  <C>                                   <C>             <C>            <C>
             1       Greater than or equal to 2.00:1.00       0.50%            2.00%            0.50%

             2       Greater than or equal to 1.25:1.00       0.25%            1.75%            0.40%
                          but less than 2.00:1.00

             3              Less than 1.25:1.00                0.0%            1.50%            0.30%
</TABLE>

         Notwithstanding the foregoing, (a) for Loans outstanding and the
Commitment Fee payable during the period commencing on the Closing Date through
the date immediately preceding the first Adjustment Date to occur after June 30,
2000, the Applicable Margin shall be the Applicable Margin set forth in Tier 3
above, and (b) if the Borrower fails to deliver any Compliance Certificate
pursuant to Section 8.4(c) hereof then, for the period commencing on the
Adjustment Date to occur subsequent to such failure through the date immediately
following the date on which such Compliance Certificate is delivered, the
Applicable Margin shall be the highest Applicable Margin set forth above.

         Assignment and Acceptance.  See Section 19.1.

         Balance Sheet Date.  September 30, 1999.

         Banks. Fleet and the other lending institutions listed on Schedule 1
hereto and any other Person who becomes an assignee of any rights and
obligations of a Bank pursuant to Section 19.

         Base Rate. The higher of (a) the annual rate of interest announced from
time to time by Fleet at its head office in Boston, Massachusetts, as its "base
rate" or "prime rate" and (b) one-half of one percent (1/2%) above the Federal
Funds Effective Rate. For the purposes of this definition, "Federal Funds
Effective Rate" shall mean for any day, the rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged by federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day that is a Business Day, the average of the quotations for such day
on such transactions received by the Agent from three funds brokers of
recognized standing selected by the Agent. The Base Rate is a reference rate and
does not necessarily represent the lowest or best rate being charged to any
customer. Changes in the rate of interest resulting from changes in the Base
Rate shall take place immediately without notice or demand of any kind.

         Base Rate Loans. Loans bearing interest calculated by reference to the
Base Rate.

         Borrower.  As defined in the preamble hereto.

         Business Day. Any day on which banking institutions in Boston,
Massachusetts, are open for the transaction of banking business and, in the case
of LIBOR Rate Loans, also a day which is a LIBOR Business Day.
<PAGE>   9
                                      -3-

         Cabot Dividend. The Distributions made by the Borrower to Cabot
Corporation in an aggregate amount not to exceed the sum of (a) the aggregate
amount of all advances made to the Borrower by LaSalle Bank National Association
under the LaSalle Loan Agreement plus (b) the lesser of (i) the net proceeds
received by the Borrower from the consummation of its IPO and (ii) the aggregate
amount of Cabot Corporation's estimated tax basis in the Borrower's capital
stock as of the date of the consummation of the IPO.

         Capital Assets. Fixed assets, both tangible (such as land, buildings,
fixtures, machinery and equipment) and intangible (such as patents, copyrights,
trademarks, franchises and good will); provided that Capital Assets shall not
include any item customarily charged directly to expense or depreciated over a
useful life of twelve (12) months or less in accordance with generally accepted
accounting principles.

         Capital Expenditures. Amounts paid or Indebtedness incurred by the
Borrower or any of its Subsidiaries in connection with (a) the purchase or lease
by the Borrower or any of its Subsidiaries of Capital Assets that would be
required to be capitalized and shown on the balance sheet of such Person in
accordance with generally accepted accounting principles or (b) the lease of any
assets by the Borrower or any of its Subsidiaries as lessee under any Synthetic
Lease to the extent that such assets would have been Capital Assets had the
synthetic lease been treated for accounting purposes as a Capitalized Lease.

         Capitalization Documents. Collectively, the formation documents
(including without limitation any certificate of incorporation and by-laws) of
the Borrower and its Subsidiaries.

         Capitalized Leases. Leases under which the Borrower or any of its
Subsidiaries is the lessee or obligor, the discounted future rental payment
obligations under which are required to be capitalized on the balance sheet of
the lessee or obligor in accordance with generally accepted accounting
principles.

         Cash Equivalents. As to the Borrower and its Subsidiaries, (a)
securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality thereof having maturities of
not more than six (6) months from the date of acquisition; (b) certificates of
deposit and eurodollar time deposits with maturities of six (6) months or less
from the date of acquisition, bankers' acceptances with maturities not exceeding
six (6) months and overnight bank deposits, in each case (i) with any Bank, or
(ii) with any domestic commercial bank having capital and surplus in excess of
$300,000,000 or any commercial bank organized under the laws of any OECD country
and having total assets in excess of $1,000,000,000; (c) repurchase obligations
with a term of not more than seven (7) days for underlying securities of the
types described in clauses (a) and (b) entered into with any financial
institution meeting the qualifications specified in clause (b) above, (d) any
commercial paper issued by any Bank, the parent corporation of any Bank or any
Subsidiary of such Bank's parent corporation and which matures within six (6)
months after the date of acquisition thereof, and (e) any commercial paper or
other security which constitutes an Investment permitted under Section 10.3(c)
and whicH matures within six (6) months after the date of acquisition thereof.

         CERCLA.  See Section 7.17(a).

         Closing Date. The first date on which the conditions set forth in
Section 11 have been satisfied and any Loans are to be made or any Letter of
Credit is to be issued hereunder.

         Code.  The Internal Revenue Code of 1986.
<PAGE>   10
                                      -4-

         Commitment. With respect to each Bank, the amount set forth on Schedule
1 hereto as the amount of such Bank's commitment to make Loans to, and to
participate in the issuance, extension and renewal of Letters of Credit for the
account of, the Borrower, as the same may be reduced from time to time; or if
such commitment is terminated pursuant to the provisions hereof, zero.

         Commitment Fee.  See Section 2.2.

         Commitment Percentage. With respect to each Bank, the percentage set
forth on Schedule 1 hereto as such Bank's percentage of the aggregate
Commitments of all of the Banks.

         Compliance Certificate.  See Section 8.4(c).

         Consolidated or consolidated. With reference to any term defined
herein, shall mean that term as applied to the accounts of the Borrower and its
Subsidiaries, consolidated in accordance with generally accepted accounting
principles.

         Consolidated Current Liabilities. All liabilities and other
Indebtedness of the Borrower and its Subsidiaries on a consolidated basis
maturing on demand or within one (1) year from the date as of which Consolidated
Current Liabilities are to be determined, (including, without limitation, the
outstanding amount of all Loans as of the date of determination) and such other
liabilities as may properly be classified as current liabilities in accordance
with generally accepted accounting principles.

         Consolidated EBIT. With respect to any fiscal period, an amount equal
to the sum of (a) Consolidated Net Income (or Deficit) of the Borrower and its
Subsidiaries for such fiscal period, plus (b) in each case to the extent
deducted in the calculation of such Person's Consolidated Net Income (or
Deficit) and without duplication (i) tax expense for such period, plus (ii)
Consolidated Total Interest Expense paid or accrued during such period, plus
(iii) other noncash charges for such period, and minus (c) to the extent added
in computing Consolidated Net Income, and without duplication, all noncash gains
(including income tax benefits) for such period, all as determined in accordance
with generally accepted accounting principles.

         Consolidated EBITDA. With respect to any fiscal period, an amount equal
to the sum of (a) Consolidated EBIT of the Borrower and its Subsidiaries for
such fiscal period, plus (b) to the extent deducted in the calculation of such
Person's Consolidated Net Income (or Deficit) and without duplication,
depreciation and amortization for such period, all as determined in accordance
with generally accepted accounting principles.

         Consolidated Net Income (or Deficit). The consolidated net income (or
deficit) of the Borrower and its Subsidiaries, after deduction of all expenses,
taxes, and other proper charges, determined in accordance with generally
accepted accounting principles, after eliminating therefrom all extraordinary
nonrecurring items of income.

         Consolidated Quick Assets. All cash, Cash Equivalents and Accounts
Receivable of the Borrower and its Subsidiaries on a consolidated basis that, in
accordance with generally accepted accounting principles, are properly
classified as current assets, provided that accounts receivable shall be
included only if good and collectible as determined by the Borrower in
accordance with established practice consistently applied, and only if payable
and outstanding (a) not more than one hundred eighty (180) days after the date
of the shipment of goods or other transactions out of which any such account
receivable arose and (b) are not outstanding for more than sixty (60) days past
due; and such accounts
<PAGE>   11
                                      -5-

receivable shall be taken at their face value less reserves determined to be
sufficient in accordance with generally accepted accounting principles.

         Consolidated Total Interest Expense. For any period, the aggregate
amount of interest required to be paid or accrued by the Borrower and its
Subsidiaries during such period on all Indebtedness of the Borrower and its
Subsidiaries outstanding during all or any part of such period, whether such
interest was or is required to be reflected as an item of expense or
capitalized, including payments consisting of interest in respect of any
Capitalized Lease, or any Synthetic Lease and including commitment fees, agency
fees, facility fees, balance deficiency fees and similar fees or expenses in
connection with the borrowing of money.

         Conversion Request. A notice given by the Borrower to the Agent of the
Borrower's election to convert or continue a Loan in accordance with Section
2.7.

         Credit Agreement. This Revolving Credit Agreement, including the
Schedules and Exhibits hereto.

         Debt Service Coverage Ratio. As at any date of determination, the ratio
of (a) Consolidated EBIT of the Borrower and its Subsidiaries for the Reference
Period most recently ended, to (b) Consolidated Total Interest Expense of the
Borrower and its Subsidiaries for such Reference Period.

         Default.  See Section 13.1.

         Delinquent Bank.  See Section 15.5.3.

         Derivative Contract. Every obligation of any Person under any forward
contract, futures contract, swap, option or other financing agreement or
arrangement (including, without limitation, caps, floors, collars and similar
agreements), the value of which is dependent upon interest rates, currency
exchange rates, commodities or other indices.

         Distribution. The declaration or payment of any dividend on or in
respect of any shares of any class of capital stock of the Borrower, other than
dividends payable solely in shares of common stock of the Borrower; the
purchase, redemption, or other retirement of any shares of any class of capital
stock of the Borrower, directly or indirectly through a Subsidiary of the
Borrower or otherwise; the return of capital by the Borrower to its shareholders
as such; or any other distribution on or in respect of any shares of any class
of capital stock of the Borrower.

         Dollars or $. Dollars in lawful currency of the United States of
America.

         Domestic Lending Office. Initially, the office of each Bank designated
as such in Schedule 1 hereto; thereafter, such other office of such Bank, if
any, located within the United States that will be making or maintaining Base
Rate Loans.

         Domestic Subsidiary. Any Subsidiary (direct or indirect, existing on
the date hereof or acquired or formed hereafter in accordance with the
provisions hereof) of the Borrower which is organized under the laws of the
United States of America or a state or other subdivision of the United States of
America.

         Drawdown Date. The date on which any Loan is made or is to be made, and
the date on which any Loan is converted or continued in accordance with
Section 2.7.
<PAGE>   12
                                      -6-

         Eligible Assignee. Any of (a) a commercial bank or finance company
organized under the laws of the United States, or any State thereof or the
District of Columbia, and having total assets in excess of $1,000,000,000; (b) a
savings and loan association or savings bank organized under the laws of the
United States, or any State thereof or the District of Columbia, and having a
net worth of at least $100,000,000, calculated in accordance with generally
accepted accounting principles; (c) a commercial bank organized under the laws
of any other country which is a member of the Organization for Economic
Cooperation and Development (the "OECD"), or a political subdivision of any such
country, and having total assets in excess of $1,000,000,000, provided that such
bank is acting through a branch or agency located in the country in which it is
organized or another country which is also a member of the OECD; (d) the central
bank of any country which is a member of the OECD; (e) any investment company,
investment fund or other institutional lender (other than a commercial bank,
finance company, or savings and loan association or savings bank) approved by
the Agent which is an "accredited investor" (as defined in Regulation D of the
federal Securities and Exchange Commission) engaged in making, purchasing or
otherwise investing in commercial loans in the ordinary course of business; and
(f) if, but only if, any Event of Default has occurred and is continuing, any
other bank, insurance company, commercial finance company or other financial
institution or other Person approved by the Agent, such approval not to be
unreasonably withheld.

         Employee Benefit Plan. Any employee benefit plan within the meaning of
Section 3(3) of ERISA maintained oR contributed to by the Borrower or any ERISA
Affiliate, other than a Guaranteed Pension Plan or a Multiemployer Plan.

         Environmental Laws.  See Section 7.17(a).

         EPA.  See Section 7.17(b).

         ERISA.  The Employee Retirement Income Security Act of 1974.

         ERISA Affiliate. Any Person which is treated as a single employer with
the Borrower under Section 414 of The Code.

         ERISA Reportable Event. A reportable event with respect to a Guaranteed
Pension Plan within the meaning of Section 4043 of ERISA and the regulations
promulgated thereunder.

         Eurocurrency Reserve Rate. For any day with respect to a LIBOR Rate
Loan, the maximum rate (expressed as a decimal) at which any lender subject
thereto would be required to maintain reserves under Regulation D of the Board
of Governors of the Federal Reserve System (or any successor or similar
regulations relating to such reserve requirements) against "Eurocurrency
Liabilities" (as that term is used in Regulation D), if such liabilities were
outstanding. The Eurocurrency Reserve Rate shall be adjusted automatically on
and as of the effective date of any change in the Eurocurrency Reserve Rate.

         Event of Default.  See Section 13.1.

         Fee Letter. The fee letter agreement between the Borrower and the Agent
dated on or prior to the Closing Date.

         Fleet. Fleet National Bank, a national banking association in its
individual capacity.
<PAGE>   13
                                      -7-

          generally accepted accounting principles. (a) When used in Section 10,
whether directly or indirectly thrOugh reference to a capitalized term used
therein, means (i) principles that are consistent with the principles
promulgated or adopted by the Financial Accounting Standards Board and its
predecessors, in effect for the fiscal year ended on the Balance Sheet Date, and
(ii) to the extent consistent with such principles, the accounting practice of
the Borrower reflected in its financial statements for the year ended on the
Balance Sheet Date, and (b) when used in general, other than as provided above,
means principles that are (i) consistent with the principles promulgated or
adopted by the Financial Accounting Standards Board and its predecessors, as in
effect from time to time, and (ii) consistently applied with past financial
statements of the Borrower adopting the same principles, provided that in each
case referred to in this definition of "generally accepted accounting
principles" a certified public accountant would, insofar as the use of such
accounting principles is pertinent, be in a position to deliver an unqualified
opinion (other than a qualification regarding changes in generally accepted
accounting principles) as to financial statements in which such principles have
been properly applied.

         Guaranteed Pension Plan. Any employee pension benefit plan within the
meaning of Section 3(2) of ERISA maintained or contributed to by the Borrower or
any ERISA Affiliate the benefits of which are guaranteed on termination in full
or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer
Plan.

         Guarantor. Each Domestic Subsidiary of the Borrower existing on the
Closing Date (if any) and each other Domestic Subsidiary of the Borrower which
is required to be or become a Guarantor from time to time pursuant to
Section 8.13 hereof. Each such Person shall be a party to a Guaranty.

         Guaranty. Collectively, each Guaranty dated on or after the Closing
Date which is required to be delivered by Section 8.13, made by each Guarantor
in favor of the Banks and the Agent pursuant to which each GuaranTor guaranties
to the Banks and the Agent the payment and performance of the Obligations and in
form and substance satisfactory to the Banks and the Agent.

         Hazardous Substances.  See Section 8.18(b).

         Indebtedness. As to any Person and whether recourse is secured by or is
otherwise available against all or only a portion of the assets of such Person
and whether or not contingent, but without duplication:

                  (a)      every obligation of such Person for money borrowed,

                  (b) every obligation of such Person evidenced by bonds,
         debentures, notes or other similar instruments, including obligations
         incurred in connection with the acquisition of property, assets or
         businesses,

                  (c) every reimbursement obligation of such Person with respect
         to letters of credit, bankers' acceptances or similar facilities issued
         for the account of such Person,

                  (d) every obligation of such Person issued or assumed as the
         deferred purchase price of property or services (including securities
         repurchase agreements but excluding trade accounts payable or accrued
         liabilities arising in the ordinary course of business which are not
         overdue or which are being contested in good faith),

                  (e) every obligation of such Person under any Capitalized
         Lease,
<PAGE>   14
                                      -8-

                  (f) every obligation of such Person under any lease (a
         "Synthetic Lease") treated as an operating lease under generally
         accepted accounting principles and as a loan or financing for U.S.
         income tax purposes,

                  (g) all sales by such Person of (i) accounts or general
         intangibles for money due or to become due, (ii) chattel paper,
         instruments or documents creating or evidencing a right to payment of
         money or (iii) other receivables (collectively "receivables"), whether
         pursuant to a purchase facility or otherwise, other than (x) in
         connection with the disposition of the business operations of such
         Person relating thereto, (y) the disposition of any receivables where
         there is no recourse to the Person consummating such disposition or (z)
         a disposition of defaulted receivables for collection and not as a
         financing arrangement, and together with any obligation of such Person
         to pay any discount, interest, fees, indemnities, penalties, recourse,
         expenses or other amounts in connection therewith,

                  (h) every obligation of such Person (an "equity related
         purchase obligation") to purchase, redeem, retire or otherwise acquire
         for value (i) any shares of capital stock of any class issued by such
         Person, (ii) any warrants, options or other rights to acquire any such
         shares, or (iii) any rights measured by the value of such shares,
         warrants, options or other rights, other than any equity related
         purchase obligation which is satisfied solely by the issuance of the
         capital stock of such Person and not cash,

                  (i) every obligation in respect of Indebtedness of any other
         entity (including any partnership in which such Person is a general
         partner) to the extent that such Person is liable therefor as a result
         of such Person's ownership interest in or other relationship with such
         entity, except to the extent that the terms of such Indebtedness
         provide that such Person is not liable therefor and such terms are
         enforceable under applicable law,

                  (j) every obligation, contingent or otherwise, of such Person
         guaranteeing, or otherwise acting as surety for, any obligation of a
         type described in any of clauses (a) through (i) (the "primary
         obligation") of another Person (the "primary obligor"), in any manner,
         whether directly or indirectly, and including, without limitation, any
         obligation of such Person (i) to purchase or pay (or advance or supply
         funds for the purchase of) any security for the payment of such primary
         obligation, (ii) to purchase property, securities or services for the
         purpose of assuring the payment of such primary obligation, or (iii) to
         maintain working capital, equity capital or other financial statement
         condition or liquidity of the primary obligor so as to enable the
         primary obligor to pay such primary obligation.

         The "amount" or "principal amount" of any Indebtedness at any time of
determination represented by (v) any Indebtedness, issued at a price that is
less than the principal amount at maturity thereof, shall be the amount of the
liability in respect thereof determined in accordance with generally accepted
accounting principles, (w) any Capitalized Lease shall be the principal
component of the aggregate of the rentals obligation under such Capitalized
Lease payable over the term thereof that is not subject to termination by the
lessee, (x) any sale of receivables shall be the amount of unrecovered capital
or principal investment of the purchaser (other than the Borrower or any of its
wholly-owned Subsidiaries) thereof, excluding amounts representative of yield or
interest earned on such investment, (y) any Synthetic Lease shall be the
stipulated loss value, termination value or other equivalent amount, and (z) any
equity related purchase obligation shall be the maximum fixed redemption or
purchase price
<PAGE>   15
                                      -9-

thereof inclusive of any accrued and unpaid dividends to be comprised in such
redemption or purchase price.

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

         Interest Payment Date. (a) As to any Base Rate Loan, the last day of
the calendar quarter with respect to interest accrued during such calendar
quarter, including, without limitation, the calendar quarter which includes the
Drawdown Date of such Base Rate Loan and; (b) as to any LIBOR Rate Loan in
respect of which the Interest Period is (i) three (3) months or less, the last
day of such Interest Period and (ii) more than three (3) months, the date that
is three (3) months from the first day of such Interest Period and, in addition,
the last day of such Interest Period.

         Interest Period. With respect to each Loan, (a) initially, the period
commencing on the Drawdown Date of such Loan and ending on the last day of one
of the periods set forth below, as selected by the Borrower in a Loan Request or
as otherwise required by the terms of this Credit Agreement (i) for any Base
Rate Loan, the last day of the calendar quarter; (ii) for any Money Market Rate
Loan, 1, 2, 3, 4, 5, 6 or 7 days; and (iii) for any LIBOR Rate Loan, 1, 2, 3, or
6 months; and (b) thereafter, each period commencing on the day immediately
following the end of the next preceding Interest Period applicable to such Loan
and ending on the last day of one of the periods set forth above, as selected by
the Borrower in a Conversion Request; provided that all of the foregoing
provisions relating to Interest Periods are subject to the following:

                  (a) if any Interest Period with respect to a LIBOR Rate Loan
         would otherwise end on a day that is not a LIBOR Business Day, that
         Interest Period shall be extended to the next succeeding LIBOR Business
         Day unless the result of such extension would be to carry such Interest
         Period into another calendar month, in which event such Interest Period
         shall end on the immediately preceding LIBOR Business Day;

                  (b) if any Interest Period with respect to a Base Rate Loan or
         a Money Market Rate Loan would end on a day that is not a Business Day,
         that Interest Period shall end on the next succeeding Business Day;

                  (c) if the Borrower shall fail to give notice as provided in
         Section 2.7, the Borrower shall be deemed to have requested a
         conversion of the affected LIBOR Rate Loan to a Base Rate Loan and the
         continuance of all Base Rate Loans as Base Rate Loans on the last day
         of the then current Interest Period with respect thereto;

                  (d) any Interest Period relating to any LIBOR Rate Loan that
         begins on the last LIBOR Business Day of a calendar month (or on a day
         for which there is no numerically corresponding day in the calendar
         month at the end of such Interest Period) shall end on the last LIBOR
         Business Day of a calendar month; and

                  (e) any Interest Period that would otherwise extend beyond the
         Maturity Date shall end on the Maturity Date.

         International Standby Practices. With respect to any standby Letter of
Credit, International Standby Practices (ISP98), International Chamber of
Commerce Publication No. 590, or any successor
<PAGE>   16
                                      -10-

code of standby letter of credit practices among banks adopted by the Agent in
the ordinary course of its business as a standby letter of credit issuer and in
effect at the time of issuance of such Letter of Credit.

         Investments. All expenditures made and all liabilities incurred
(contingently or otherwise) for the acquisition of stock or Indebtedness of, or
for loans, advances, capital contributions or transfers of property to, or in
respect of any guaranties (or other commitments as described under
Indebtedness), or obligations of, any Person. In determining the aggregate
amount of Investments outstanding at any particular time: (a) the amount of any
Investment represented by a guaranty shall be taken at not less than the
principal amount of the obligations guaranteed and still outstanding; (b) there
shall be included as an Investment all interest accrued with respect to
Indebtedness constituting an Investment unless and until such interest is paid;
(c) there shall be deducted in respect of each such Investment any amount
received as a return of capital (but only by repurchase, redemption, retirement,
repayment, liquidating dividend or liquidating distribution); (d) there shall
not be deducted in respect of any Investment any amounts received as earnings on
such Investment, whether as dividends, interest or otherwise, except that
accrued interest included as provided in the foregoing clause (b) may be
deducted when paid; and (e) there shall not be deducted from the aggregate
amount of Investments any decrease in the value thereof.

         IPO.  The initial public offering of the common stock of the Borrower.

         LaSalle Loan Agreement. The Credit Agreement, dated as of March 31,
2000, between the Borrower and LaSalle Bank National Association, pursuant to
which LaSalle Bank National Association has agreed to lend to the Borrower
$17,000,000.

         LaSalle Loan Documents. The LaSalle Loan Agreement and all agreements
and documents required to be entered into or delivered in connection therewith,
each in the form delivered to the Agent prior to the Closing Date.

         Letter of Credit.  See Section 4.1.1.

         Letter of Credit Application.  See Section 4.1.1.

         Letter of Credit Fee.  See Section 4.6.

         Letter of Credit Participation.  See Section 4.1.4.

         Leverage Ratio. As at any date of determination, the ratio of (a) Total
Funded Indebtedness of the Borrower and its Subsidiaries outstanding on such
date, to (b) Consolidated EBITDA of the Borrower and its Subsidiaries for the
Reference Period ending on such date.

         LIBOR Business Day. Any day on which commercial banks are open for
international business (including dealings in Dollar deposits) in London or such
other eurodollar interbank market as may be selected by the Agent in its sole
discretion acting in good faith.

         LIBOR Lending Office. Initially, the office of each Bank designated as
such in Schedule 1 hereto; thereafter, such other office of such Bank, if any,
that shall be making or maintaining LIBOR Rate Loans.

         LIBOR Rate. For any Interest Period with respect to a LIBOR Rate Loan,
the rate of interest equal to (a) the rate determined by the Agent at which
Dollar deposits for such Interest Period are offered
<PAGE>   17
                                      -11-

based on information presented on Telerate Page 3750 as of 11:00 a.m. London
time on the second LIBOR Business Day prior to the first day of such Interest
Period, divided by (b) a number equal to 1.00 minus the Eurocurrency Reserve
Rate, if applicable.

         LIBOR Rate Loans. Loans bearing interest calculated by reference to the
LIBOR Rate.

         Loan Documents. This Credit Agreement, the Notes, the Letter of Credit
Applications, the Letters of Credit and the Guaranty.

         Loan Request.  See Section 2.6.

         Loans. Revolving credit loans made or to be made by the Banks to the
Borrower pursuant to Section 2.

         Majority Banks. As of any date, the Banks holding at least fifty-one
percent (51%) of the outstanding principal amount of the Notes on such date; and
if no such principal is outstanding, the Banks whose aggregate Commitments
constitutes at least fifty-one percent (51%) of the Total Commitment.

         Maturity Date.  March 29, 2003.

         Maximum Drawing Amount. The maximum aggregate amount that the
beneficiaries may at any time draw under outstanding Letters of Credit, as such
aggregate amount may be reduced from time to time pursuant to the terms of the
Letters of Credit.

         Money Market Rate. The fixed rate of interest quoted by the Agent on
the first day of any Interest Period which is the rate the Agent is willing to
charge with respect to a Money Market Rate Loan to be made by the Agent during
such period.

         Money Market Rate Loan. Loans being interest calculated by reference to
the Money Market Rate.

         Multiemployer Plan. Any multiemployer plan within the meaning of
Section 3(37) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate.

         Note Record. The grid attached to a Note, or the continuation of such
grid, or any other similar record, including computer records, maintained by any
Bank with respect to any Loan referred to in such Note.

         Notes.  See Section 2.4.

         Obligations. All indebtedness, obligations and liabilities of any of
the Borrower and its Subsidiaries to any of the Banks and the Agent,
individually or collectively, existing on the date of this Credit Agreement or
arising thereafter, direct or indirect, joint or several, absolute or
contingent, matured or unmatured, liquidated or unliquidated, secured or
unsecured, arising by contract, operation of law or otherwise, arising or
incurred under this Credit Agreement or any of the other Loan Documents or in
respect of any of the Loans made or Reimbursement Obligations incurred or any of
the Notes, Letter of Credit Application, Letter of Credit or other instruments
at any time evidencing any thereof.
<PAGE>   18
                                      -12-

         outstanding. With respect to the Loans, the aggregate unpaid principal
thereof as of any date of determination.

         PBGC. The Pension Benefit Guaranty Corporation created by Section 4002
of ERISA and any successor entity Or entities having similar responsibilities.

         Permitted Acquisition.  See Section 9.5.1.

         Permitted Liens. Liens, security interests and other encumbrances
permitted by Section 9.2.

         Person. Any individual, corporation, partnership, trust, unincorporated
association, business, or other legal entity, and any government or any
governmental agency or political subdivision thereof.

         Purchase Price.  See Section 9.5.1.

         Quick Ratio. As at any date of determination, the ratio of (a)
Consolidated Quick Assets of the Borrower and its Subsidiaries on such date, to
(b) Consolidated Current Liabilities of the Borrower and its Subsidiaries on
such date.

         Rate Adjustment Period. As defined in the definition of "Applicable
Margin."

         RCRA.  See Section 7.17(a).

         Real Estate. All real property at any time owned or leased (as lessee
or sublessee) by the Borrower or any of its Subsidiaries.

         Reference Period. As of any date of determination, the period of four
(4) consecutive fiscal quarters of the Borrower and its Subsidiaries ending on
such date, or if such date is not a fiscal quarter end date, the period of four
(4) consecutive fiscal quarters most recently ended.

         Register.  See Section 19.3.

         Reimbursement Obligation. The Borrower's obligation to reimburse the
Agent and the Banks on account of any drawing under any Letter of Credit as
provided in Section 4.2.

         Restricted Payment. In relation to the Borrower and its Subsidiaries,
any (a) Distribution or (b) payment or prepayment by the Borrower or its
Subsidiaries to the Borrower's shareholders or to any Affiliate of the Borrower
or the Borrower's shareholders.

         SARA.  See Section 7.17(a).

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

         Settlement. The making or receiving of payments, in immediately
available funds, by the Banks, to the extent necessary to cause each Bank's
actual share of the outstanding amount of Loans (after giving effect to any Loan
Request) to be equal to such Bank's Commitment Percentage of the
<PAGE>   19
                                      -13-

outstanding amount of such Loans (after giving effect to any Loan Request), in
any case where, prior to such event or action, the actual share is not so equal.

         Settlement Amount.  See Section 2.9.1.

         Settlement Date. (a) The date which is seven (7) days from the Drawdown
Date of any Money Market Rate Loan made pursuant to Section 2.6.2 hereof, or if
such day is not a Business Day, the Business Day immediately follOwing such
Business Day, (b) at the option of the Agent, on any Business Day following a
day on which the account officers of the Agent active upon the Borrower's
account become aware of the existence of an Event of Default, (c) any Business
Day on which the amount of Loans outstanding from Fleet plus Fleet's Commitment
Percentage of the sum of the Maximum Drawing Amount and any Unpaid Reimbursement
Obligations is equal to or greater than Fleet's Commitment Percentage of the
Total Commitment, or (d) any day on which any conversion of a Money Market Rate
Loan to a Base Rate Loan or a Eurodollar Rate Loan occurs.

         Settling Bank.  See Section 2.9.1.

         Subsidiary. Any corporation, association, trust, or other business
entity of which the designated parent shall at any time own directly or
indirectly through a Subsidiary or Subsidiaries at least a majority (by number
of votes) of the outstanding Voting Stock.

         Synthetic Lease. As defined in paragraph (f) of the definition of
"Indebtedness."

         Total Commitment. The sum of the Commitments of the Banks, as in effect
from time to time.

         Total Funded Indebtedness. All Indebtedness of the Borrower and its
Subsidiaries for borrowed money, purchase money Indebtedness and with respect to
Capitalized Leases and Synthetic Leases, determined on a consolidated basis in
accordance with generally accepted accounting principles.

         Type. As to any Loan, its nature as a Base Rate Loan, a Money Market
Rate Loan or a LIBOR Rate Loan.

         Uniform Customs. With respect to any Letter of Credit, the Uniform
Customs and Practice for Documentary Credits (1993 Revision), International
Chamber of Commerce Publication No. 500 or any successor version thereto adopted
by the Agent in the ordinary course of its business as a letter of credit issuer
and in effect at the time of issuance of such Letter of Credit.

         Unpaid Reimbursement Obligation. Any Reimbursement Obligation for which
the Borrower does not reimburse the Agent and the Banks on the date specified
in, and in accordance with, Section 4.2.

         Voting Stock. Stock or similar interests, of any class or classes
(however designated), the holders of which are at the time entitled, as such
holders, to vote for the election of a majority of the directors (or persons
performing similar functions) of the corporation, association, trust or other
business entity involved, whether or not the right so to vote exists by reason
of the happening of a contingency.

         1.2.  RULES OF INTERPRETATION.
<PAGE>   20
                                      -14-

                  (a) A reference to any document or agreement shall include
         such document or agreement as amended, modified or supplemented from
         time to time in accordance with its terms and the terms of this Credit
         Agreement.

                  (b) The singular includes the plural and the plural includes
the singular.

                  (c) A reference to any law includes any amendment or
modification to such law.

                  (d) A reference to any Person includes its permitted
successors and permitted assigns.

                  (e) Accounting terms not otherwise defined herein have the
         meanings assigned to them by generally accepted accounting principles
         applied on a consistent basis by the accounting entity to which they
         refer.

                  (f) The words "include", "includes" and "including" are not
limiting.

                  (g) All terms not specifically defined herein or by generally
         accepted accounting principles, which terms are defined in the Uniform
         Commercial Code as in effect in the Commonwealth of Massachusetts, have
         the meanings assigned to them therein, with the term "instrument" being
         that defined under Article 9 of the Uniform Commercial Code.

                  (h) Reference to a particular "Section" refers to that section
         of this Credit Agreement unlEss otherwise indicated.

                  (i) The words "herein", "hereof", "hereunder" and words of
         like import shall refer to this Credit Agreement as a whole and not to
         any particular section or subdivision of this Credit Agreement.

                  (j) Unless otherwise expressly indicated, in the computation
         of periods of time from a specified date to a later specified date, the
         word "from" means "from and including," the words "to" and "until" each
         mean "to but excluding," and the word "through" means "to and
         including."

                  (k) This Credit Agreement and the other Loan Documents may use
         several different limitations, tests or measurements to regulate the
         same or similar matters. All such limitations, tests and measurements
         are, however, cumulative and are to be performed in accordance with the
         terms thereof.

                  (l) This Credit Agreement and the other Loan Documents are the
         result of negotiation among, and have been reviewed by counsel to,
         among others, the Agent and the Borrower and are the product of
         discussions and negotiations among all parties. Accordingly, this
         Credit Agreement and the other Loan Documents are not intended to be
         construed against the Agent or any of the Banks merely on account of
         the Agent's or any Bank's involvement in the preparation of such
         documents.

                  (m) All pro forma computations required to be made hereunder
         giving effect to any acquisition, investment, sale, disposition, merger
         or similar event shall reflect on a pro forma basis such event and, to
         the extent applicable, the historical earnings and cash flows
         associated with the assets acquired or disposed of and any related
         incurrence or reduction of Indebtedness,
<PAGE>   21
                                      -15-

but shall not take into account any projected synergies or similar benefits
expected to be realized as a result of such event.

                        2. THE REVOLVING CREDIT FACILITY.

         2.1. COMMITMENT TO LEND. Subject to the terms and conditions set forth
in this Credit Agreement, each of the Banks severally agrees to lend to the
Borrower and the Borrower may borrow, repay, and reborrow from time to time from
the Closing Date up to but not including the Maturity Date upon notice by the
Borrower to the Agent given in accordance with Section 2.6, such sums as are
requested by the Borrower up to a maximum aggregate amount outstanding (after
giving effect to all amounts requested) at any one time equal to such Bank's
Commitment minus such Bank's Commitment Percentage of the sum of the Maximum
Drawing Amount and all Unpaid Reimbursement Obligations, provided that the sum
of the outstanding amount of the Loans (after giving effect to all amounts
requested) plus the Maximum Drawing Amount and all Unpaid Reimbursement
Obligations shall not at any time exceed the Total Commitment. The Loans shall
be made pro rata in accordance with each Bank's Commitment Percentage. Each
request for a Loan hereunder shall constitute a representation and warranty by
the Borrower that the conditions set forth in Section 11 and Section 12, in the
case of the initial Loans to be made on the Closing Date, And Section 12, in the
case of all other Loans, have been satisfied on the date of such request.

         2.2. COMMITMENT FEE. The Borrower agrees to pay to the Agent for the
accounts of the Banks in accordance with their respective Commitment Percentages
a commitment fee (the "Commitment Fee") calculated in accordance with the
pricing grid contained in the definition of "Applicable Margin" for the
Commitment Fee on a per annum basis on the average daily amount during each
calendar quarter or portion thereof from the date hereof to the Maturity Date by
which the Total Commitment minus the sum of the Maximum Drawing Amount and all
Unpaid Reimbursement Obligations exceeds the outstanding amount of Loans during
such calendar quarter. The commitment fee shall be payable quarterly in arrears
on the first day of each calendar quarter for the immediately preceding calendar
quarter commencing on the first such date following the date hereof, with a
final payment on the Maturity Date or any earlier date on which the Commitments
shall terminate.

         2.3. REDUCTION OF TOTAL COMMITMENT. The Borrower shall have the right
at any time and from time to time upon five (5) Business Days prior written
notice to the Agent to reduce by $1,000,000 or an integral multiple thereof or
terminate entirely the Total Commitment, whereupon the Commitments of the Banks
shall be reduced pro rata in accordance with their respective Commitment
Percentages of the amount specified in such notice or, as the case may be,
terminated. Promptly after receiving any notice of the Borrower delivered
pursuant to this Section 2.3, the Agent will notify the Banks of the substance
thereof. Upon the effective date of any such reduction or termination, the
Borrower shall pay to the Agent for the respective accounts of the Banks the
full amount of any Commitment Fee then accrued on the amount of the reduction.
No reduction or termination of the Commitments may be reinstated.

         2.4. THE NOTES. The Loans shall be evidenced by separate promissory
notes of the Borrower in substantially the form of Exhibit A hereto (each a
"Note"), dated as of the Closing Date and completed with appropriate insertions.
One Note shall be payable to the order of each Bank in a principal amount equal
to such Bank's Commitment or, if less, the outstanding amount of all Loans made
by such Bank, plus interest accrued thereon, as set forth below. The Borrower
irrevocably authorizes each Bank to make or cause to be made, at or about the
time of the Drawdown Date of any Loan or at the time of receipt of any payment
of principal on such Bank's Note, an appropriate notation on such Bank's Note
<PAGE>   22
                                      -16-

Record reflecting the making of such Loan or (as the case may be) the receipt of
such payment. The outstanding amount of the Loans set forth on such Bank's Note
Record shall be prima facie evidence of the principal amount thereof owing and
unpaid to such Bank, but the failure to record, or any error in so recording,
any such amount on such Bank's Note Record shall not limit or otherwise affect
the obligations of the Borrower hereunder or under any Note to make payments of
principal of or interest on any Note when due.

         2.5.  INTEREST ON LOANS.  Except as otherwise provided in Section 5.10,

                  (a) Each Base Rate Loan shall bear interest for the period
         commencing with the Drawdown Date thereof and ending on the last day of
         the Interest Period with respect thereto at the rate per annum equal to
         the Base Rate plus the Applicable Margin for Base Rate Loans.

                  (b) Each LIBOR Rate Loan shall bear interest for the period
         commencing with the Drawdown Date thereof and ending on the last day of
         the Interest Period with respect thereto at the rate of per annum equal
         to the LIBOR Rate determined for such Interest Period, plus the
         Applicable Margin for LIBOR Rate Loans.

                  (c) Each Money Market Rate Loan shall bear interest for the
         period commencing with the Drawdown Date thereof and ending on the last
         day of the Interest Period with respect thereto at the rate per annum
         equal to the Money Market Rate.

                  (d) The Borrower promises to pay interest on each Loan in
         arrears on each Interest Payment Date with respect thereto.

         2.6.  REQUESTS FOR LOANS.

                  2.6.1. GENERAL. The Borrower shall give to the Agent written
         notice in the form of Exhibit B hereto (or telephonic notice confirmed
         in a writing in the form of Exhibit B hereto) of each Loan requested
         hereunder (a "Loan Request") no less than (a) one (1) Business Day
         prior to the proposed Drawdown Date of any Base Rate Loan and (b) three
         (3) LIBOR Business Days prior to the proposed Drawdown Date of any
         LIBOR Rate Loan. Each such notice shall specify (i) the principal
         amount of the Loan requested, (ii) the proposed Drawdown Date of such
         Loan, (iii) the Interest Period for such Loan and (iv) the Type of such
         Loan. Promptly upon receipt of any such notice, the Agent shall notify
         each of the Banks thereof. Each Loan Request shall be irrevocable and
         binding on the Borrower and shall obligate the Borrower to accept the
         Loan requested from the Banks on the proposed Drawdown Date. Each Loan
         Request shall be in a minimum aggregate amount of $1,000,000 or an
         integral multiple thereof.

                  2.6.2. SWING LINE. Notwithstanding the notice and minimum
         amount requirements set forth in Section 2.6.1 but otherwise in
         accordance with the terms and conditions of this Credit Agreement, the
         Agent may, in its sole discretion and without conferring with the
         Banks, make Money Market Rate Loans to the Borrower in an amount
         requested by the Borrower, but in no event shall the aggregate amount
         of all Money Market Rate Loans outstanding at any one time exceed
         $5,000,000. The Borrower hereby requests and authorizes the Agent to
         make from time to time such Money Market Rate Loan so requested. The
         Borrower acknowledges and agrees that the making of such Money Market
         Rate Loans shall, in each case, be subject in all respects to the
         provisions of this Credit Agreement as if they were Loans covered by a
         Loan Request including, without limitation, the limitations set forth
         in Section 2.1 and the requirements that the
<PAGE>   23
                                      -17-

applicable provisions of Section 11 (in the case of Loans made on the Closing
Date) and Section 12 be satisfied. All actions taken by the Agent pursuant to
the provisions of this Section 2.6.2 shall be conclusive and binding on the
Borrower and the Banks absent the Agent's gross negligence or willful
misconduct.  Loans made pursuant to this Section 2.6.2 shall be Money Market
Rate Loans until converted in accordance with the provisions of the Credit
Agreement and, prior to a Settlement, such interest shall be for the account
of the Agent.

                           2.6.2.1. PROCEDURAL REQUIREMENT. Money Market Rate
                  Loans shall be requested and funded in accordance with the
                  procedures set forth below. Each request for a Money Market
                  Rate Loan shall be referred to as an "Advance Request".

                           2.6.2.2. ADVANCE REQUESTS. In the event the Borrower
                  desires to borrow any Money Market Rate Loan, the Borrower may
                  request by telephone (a "Rate Request") that the Agent on any
                  Business Day give the Borrower a firm quotation of the Money
                  Market Rate Loan which would be applicable to a Money Market
                  Rate Loan to be made on such day for an Interest Period
                  commencing on the date of such Rate Request. Each Rate Request
                  shall (a) specify the aggregate principal amount of the Money
                  Market Rate Loan to which such rate quotation would apply
                  (which shall be in integral multiples of $100,000), (b) the
                  Interest Period being requested for such Money Market Rate
                  Loan and (c) be received by the Agent not later than 11:00
                  a.m., Boston time, on such day. At or before 12:00 noon,
                  Boston time, the Agent shall notify the Borrower by telephone,
                  telex or telecopier of the Money Market Rate which would apply
                  to such Money Market Rate Loan; provided, however, that the
                  Agent may, in its sole and absolute discretion, decline to
                  give any such quotation. Such rate quotation shall remain in
                  effect for one hour on such day. If the Borrower wishes to
                  accept the rate quotation from the Agent, and thereby request
                  such Money Market Rate Loan, the Borrower shall give the Agent
                  written notice of acceptance (a "M/M Rate Acceptance"), no
                  later than the expiration of such one hour period. Each M/M
                  Rate Acceptance may be given by telex or telecopier (confirmed
                  by letter), and shall confirm the Borrower's acceptance of
                  such rate quotation and the aggregate principal amount of the
                  Money Market Rate Loan requested. Each Advance Request made by
                  the Borrower shall

                                    (a) obligate the Borrower to borrow the

                 principal amount of the Money Market Rate Loan requested
                 thereby; and

                                    (b) constitute a representation and warranty
                  by the Borrower to the Agent that all of the conditions set
                  forth in Section 11 and Section 12 hereof have been satisfied.

                           An Advance Request made by the Borrower shall be
                  valid if given by an officer or other agent of the Borrower
                  identified as being an officer or agent authorized by the
                  Borrower to give such notices in a certificate executed by the
                  Secretary of the Borrower and delivered to the Agent. The
                  Agent is authorized to accept any telephonic Advance Requests
                  or Rate Requests if, in good faith, it believes them to have
                  been given by such an authorized person, and the Borrower
                  shall be obligated to borrow the amount of the Money Market
                  Rate Loan requested thereby and repay all such Money Market
                  Rate Loans made by the Agent. Any Advance Request or Rate
                  Request made by an officer or other agent of the Borrower
                  identified as being an officer or agent authorized by the
                  Borrower shall be binding upon the Borrower until such time as
                  the Agent has received
<PAGE>   24
                                      -18-

                  written notification from the Borrower in the form of a
                  certificate executed by the Secretary of the Borrower and
                  delivered to the Agent that such officer or agent, as the case
                  may be, is no longer authorized by the Borrower to give such
                  notice.

         2.7.  CONVERSION OPTIONS.

                  2.7.1. CONVERSION TO DIFFERENT TYPE OF LOAN. The Borrower may
         elect from time to time to convert any outstanding Loan to a Loan of
         another Type, provided that (a) with respect to any such conversion of
         a Loan to a Base Rate Loan, the Borrower shall give the Agent at least
         one (1) Business Day prior written notice of such election; (b) with
         respect to any such conversion of a Money Market Rate Loan or a Base
         Rate Loan to a LIBOR Rate Loan, the Borrower shall give the Agent at
         least three (3) LIBOR Business Days prior written notice of such
         election; (c) with respect to any such conversion of a LIBOR Rate Loan
         into a Base Rate Loan, such conversion shall only be made on the last
         day of the Interest Period with respect thereto and (d) no Loan may be
         converted into a LIBOR Rate Loan when any Default or Event of Default
         has occurred and is continuing. On the date on which such conversion is
         being made each Bank shall take such action as is necessary to transfer
         its Commitment Percentage of such Loans to its Domestic Lending Office
         or its LIBOR Lending Office, as the case may be. All or any part of
         outstanding Loans of any Type may be converted into a Loan of another
         Type as provided herein, provided that any partial conversion shall be
         in an aggregate principal amount of $1,000,000 or an integral multiple
         thereof plus an integral multiple of $100,000 in excess thereof. Each
         Conversion Request relating to the conversion of a Loan to a LIBOR Rate
         Loan shall be irrevocable by the Borrower.

                  2.7.2. CONTINUATION OF TYPE OF LOAN. Any Loan of any Type may
         be continued as a Loan of the same Type upon the expiration of an
         Interest Period with respect thereto by compliance by the Borrower with
         the notice provisions contained in Section 2.7.1; provided that no
         Money Market Rate Loan or LIBOR Rate Loan may be continued as such when
         any Default or Event of Default has occurred and is continuing, but
         shall be automatically converted to a Base Rate Loan on the last day of
         the first Interest Period relating thereto ending during the
         continuance of any Default or Event of Default of which officers of the
         Agent active upon the Borrower's account have actual knowledge. In the
         event that the Borrower fails to provide any such notice with respect
         to the continuation of any Money Market Rate Loan or LIBOR Rate Loan as
         such, then such Money Market Rate Loan or LIBOR Rate Loan, as the case
         may be, shall be automatically converted to a Base Rate Loan on the
         last day of the first Interest Period relating thereto. The Agent shall
         notify the Banks promptly when any such automatic conversion
         contemplated by this Section 2.7 is scheduled to occur.

                  2.7.3. LIBOR RATE LOANS. Any conversion to or from LIBOR Rate
         Loans shall be in such amounts and be made pursuant to such elections
         so that, after giving effect thereto, the aggregate principal amount of
         all LIBOR Rate Loans having the same Interest Period shall not be less
         than $1,000,000 or an integral multiple of $1,000,000 in excess
         thereof. In addition, there shall be more than five (5) LIBOR Rate
         Loans outstanding at any one time.

         2.8.  FUNDS FOR LOAN.

                  2.8.1. FUNDING PROCEDURES. Not later than 11:00 a.m. (Boston
         time) on the proposed Drawdown Date of any Loans, each of the Banks
         will make available to the Agent, at the Agent's Head Office, in
         immediately available funds, the amount of such Bank's Commitment
<PAGE>   25
                                      -19-

         Percentage of the amount of the requested Loans. Upon receipt from each
         Bank of such amount, and upon receipt of the documents required by
         Sections 11 and 12 and the satisfaction of the other conditions
         set forth therein, to the extent applicable, the Agent will make
         available to the Borrower the aggregate amount of such Loans made
         available to the Agent by the Banks. The failure or refusal of any Bank
         to make available to the Agent at the aforesaid time and place on any
         Drawdown Date the amount of its Commitment Percentage of the requested
         Loans shall not relieve any other Bank from its several obligation
         hereunder to make available to the Agent the amount of such other
         Bank's Commitment Percentage of any requested Loans.

                  2.8.2. ADVANCES BY AGENT. The Agent may, unless notified to
         the contrary by any Bank prior to a Drawdown Date, assume that such
         Bank has made available to the Agent on such Drawdown Date the amount
         of such Bank's Commitment Percentage of the Loans to be made on such
         Drawdown Date, and the Agent may (but it shall not be required to), in
         reliance upon such assumption, make available to the Borrower a
         corresponding amount. If any Bank makes available to the Agent such
         amount on a date after such Drawdown Date, such Bank shall pay to the
         Agent on demand an amount equal to the product of (a) the average
         computed for the period referred to in clause (c) below, of the
         weighted average interest rate paid by the Agent for federal funds
         acquired by the Agent during each day included in such period, times
         (b) the amount of such Bank's Commitment Percentage of such Loans,
         times (c) a fraction, the numerator of which is the number of days that
         elapse from and including such Drawdown Date to the date on which the
         amount of such Bank's Commitment Percentage of such Loans shall become
         immediately available to the Agent, and the denominator of which is
         365. A statement of the Agent submitted to such Bank with respect to
         any amounts owing under this paragraph shall be prima facie evidence of
         the amount due and owing to the Agent by such Bank. If the amount of
         such Bank's Commitment Percentage of such Loans is not made available
         to the Agent by such Bank within three (3) Business Days following such
         Drawdown Date, the Agent shall be entitled to recover such amount from
         the Borrower on demand, with interest thereon at the rate per annum
         applicable to the Loans made on such Drawdown Date.

         2.9.  SETTLEMENTS.

                  2.9.1. GENERAL. On each Settlement Date, the Agent shall, not
         later than 11:00 a.m. (Boston time), give telephonic or facsimile
         notice (a) to the Banks and the Borrower of the respective outstanding
         amount of Money Market Rate Loans made by the Agent on behalf of the
         Banks from the immediately preceding Settlement Date through the close
         of business on the prior day and the amount of any Base Rate Loan or
         LIBOR Rate Loans to be made (following the giving of notice pursuant to
         Section 2.6.1(b)) on such date pursuant to a Loan Request and (b) to
         the Banks of the amount (a "Settlement Amount") that each Bank (a
         "Settling Bank") shall pay to effect a Settlement of any Money Market
         Rate Loan. A statement of the Agent submitted to the Banks and the
         Borrower or to the Banks with respect to any amounts owing under this
         Section 2.9 shall be prima facie evidence of the amount due and owing.
         Each Settling Bank shall, not later than 3:00 p.m. (Boston time) on
         such Settlement Date, effect a wire transfer of immediately available
         funds to the Agent in the amount of the Settlement Amount for such
         Settling Bank. On the Settlement Date, all outstanding Money Market
         Rate Loans shall automatically be converted into Base Rate Loans. All
         funds advanced by any Bank as a Settling Bank pursuant to this Section
         2.9 shall for all purposes be treated as a Base Rate Loan made by such
         Settling Bank to the Borrower and all funds received by any Bank
         pursuant to this Section 2.9 shall for all purposes be treated as
         repayment of amounts owed with respect to Loans made by such Bank. In
         the event that any
<PAGE>   26
                                      -20-

         bankruptcy, reorganization, liquidation, receivership or similar cases
         or proceedings in which the Borrower is a debtor prevent a Settling
         Bank from making any Loan to effect a Settlement as contemplated
         hereby, such Settling Bank will make such dispositions and arrangements
         with the other Banks with respect to such Money Market Rate Loans,
         either by way of purchase of participations, distribution, pro tanto
         assignment of claims, subrogation or otherwise as shall result in each
         Bank's share of the outstanding Loans being equal, as nearly as may be,
         to such Bank's Commitment Percentage of the outstanding amount of the
         Loans.

                  2.9.2. FAILURE TO MAKE FUNDS AVAILABLE. The Agent may, unless
         notified to the contrary by any Settling Bank prior to a Settlement
         Date, assume that such Settling Bank has made or will make available to
         the Agent on such Settlement Date the amount of such Settling Bank's
         Settlement Amount, and the Agent may (but it shall not be required to),
         in reliance upon such assumption, make available to the Borrower a
         corresponding amount. If any Settling Bank makes available to the Agent
         such amount on a date after such Settlement Date, such Settling Bank
         shall pay to the Agent on demand an amount equal to the product of (a)
         the average computed for the period referred to in clause (c) below, of
         the weighted average interest rate paid by the Agent for federal funds
         acquired by the Agent during each day included in such period, times
         (b) the amount of such Settlement Amount, times (c) a fraction, the
         numerator of which is the number of days that elapse from and including
         such Settlement Date to the date on which the amount of such Settlement
         Amount shall become immediately available to the Agent, and the
         denominator of which is 360. A statement of the Agent submitted to such
         Settling Bank with respect to any amounts owing under this Section
         2.10.2 shall be prima facie evidence of the amount due and owing to the
         Agent by such Settling Bank. If such Settling Bank's Settlement Amount
         is not made available to the Agent by such Settling Bank within three
         (3) Business Days following such Settlement Date, the Agent shall be
         entitled to recover such amount from the Borrower on demand, with
         interest thereon at the rate per annum applicable to the Loans as of
         such Settlement Date.

                  2.9.3. NO EFFECT ON OTHER BANKS. The failure or refusal of any
         Settling Bank to make available to the Agent at the aforesaid time and
         place on any Settlement Date the amount of such Settling Bank's
         Settlement Amount shall not (a) relieve any other Settling Bank from
         its several obligations hereunder to make available to the Agent the
         amount of such other Settling Bank's Settlement Amount or (b) impose
         upon any Bank, other than the Settling Bank so failing or refusing, any
         liability with respect to such failure or refusal or otherwise increase
         the Commitment of such other Bank.

                           3. REPAYMENT OF THE LOANS.

         3.1. MATURITY. The Borrower promises to pay on the Maturity Date, and
there shall become absolutely due and payable on the Maturity Date, all of the
Loans outstanding on such date, together with any and all accrued and unpaid
interest thereon.

         3.2. MANDATORY REPAYMENTS OF LOANS. If at any time the sum of the
outstanding amount of the Loans, the Maximum Drawing Amount and all Unpaid
Reimbursement Obligations exceeds the Total Commitment, then the Borrower shall
immediately pay the amount of such excess to the Agent for the respective
accounts of the Banks for application: first, to any Unpaid Reimbursement
Obligations; second, to the Loans; and third, to provide to the Agent cash
collateral for Reimbursement Obligations as contemplated by Section 4.2(b) and
(c). Each payment of any Unpaid Reimbursement Obligations or
<PAGE>   27
                                      -21-

prepayment of Loans shall be allocated among the Banks, in proportion, as nearly
as practicable, to each Reimbursement Obligation or (as the case may be) the
respective unpaid principal amount of each Bank's Note, with adjustments to the
extent practicable to equalize any prior payments or repayments not exactly in
proportion.

         3.3. OPTIONAL REPAYMENTS OF LOANS. The Borrower shall have the right,
at its election, to repay the outstanding amount of the Loans, as a whole or in
part, at any time without penalty or premium, provided that any full or partial
prepayment of the outstanding amount of any LIBOR Rate Loans pursuant to this
Section 3.3 may be made only on the last day of the Interest Period relating
thereto. The Borrower shall give the Agent, no later than 10:00 a.m., Boston
time, at least one (1) Business Day prior written notice of any proposed
prepayment pursuant to this Section 3.3 of Base Rate Loans, and three (3) LIBOR
Business Days notice of any proposed prepayment pursuant to this Section 3.3 of
LIBOR Rate Loans, in each case specifying the proposed date of prepayment of
Loans and the principal amount to be prepaid. Each such partial prepayment of
the Loans shall be in an integral multiple of $1,000,000, shall be accompanied
by the payment of accrued interest on the principal prepaid to the date of
prepayment and shall be applied, in the absence of instruction by the Borrower,
first to the principal of Base Rate Loans and then to the principal of LIBOR
Rate Loans, at the Agent's option. Each partial prepayment shall be allocated
among the Banks, in proportion, as nearly as practicable, to the respective
unpaid principal amount of each Bank's Note, with adjustments to the extent
practicable to equalize any prior repayments not exactly in proportion.

                              4. LETTERS OF CREDIT.

         4.1.  LETTER OF CREDIT COMMITMENTS.

                  4.1.1. COMMITMENT TO ISSUE LETTERS OF CREDIT. Subject to the
         terms and conditions hereof and the execution and delivery by the
         Borrower of a letter of credit application on the Agent's customary
         form (a "Letter of Credit Application"), the Agent on behalf of the
         Banks and in reliance upon the agreement of the Banks set forth in
         Section 4.1.4 and upon the representations and warranties of the
         Borrower contained herein, agrees, in its individual capacity, to
         issue, extend and renew for the account of the Borrower one or more
         standby or documentary letters of credit (individually, a "Letter of
         Credit"), in such form as may be requested from time to time by the
         Borrower and agreed to by the Agent; provided, however, that, after
         giving effect to such request, (a) the sum of the aggregate Maximum
         Drawing Amount and all Unpaid Reimbursement Obligations shall not
         exceed $5,000,000 at any one time and (b) the sum of (i) the Maximum
         Drawing Amount on all Letters of Credit, (ii) all Unpaid Reimbursement
         Obligations, and (iii) the amount of all Loans outstanding shall not
         exceed the Total Commitment. Notwithstanding the foregoing, the Agent
         shall have no obligation to issue any Letter of Credit to support or
         secure any Indebtedness of the Borrower or any of its Subsidiaries to
         the extent that such Indebtedness was incurred prior to the proposed
         issuance date of such Letter of Credit, unless in any such case the
         Borrower demonstrates to the satisfaction of the Agent that (x) such
         prior incurred Indebtedness was then fully secured by a prior perfected
         and unavoidable security interest in collateral provided by the
         Borrower or such Subsidiary to the proposed beneficiary of such Letter
         of Credit or (y) such prior incurred Indebtedness was then secured or
         supported by a letter of credit issued for the account of the Borrower
         or such Subsidiary and the reimbursement obligation with respect to
         such letter of credit was fully secured by a prior perfected and
         unavoidable security interest in collateral provided to the issuer of
         such letter of credit by the Borrower or such Subsidiary.
<PAGE>   28
                                      -22-

                  4.1.2. LETTER OF CREDIT APPLICATIONS. Each Letter of Credit
         Application shall be completed to the satisfaction of the Agent. In the
         event that any provision of any Letter of Credit Application shall be
         inconsistent with any provision of this Credit Agreement, then the
         provisions of this Credit Agreement shall, to the extent of any such
         inconsistency, govern.

                  4.1.3. TERMS OF LETTERS OF CREDIT. Each Letter of Credit
         issued, extended or renewed hereunder shall, among other things, (a)
         provide for the payment of sight drafts for honor thereunder when
         presented in accordance with the terms thereof and when accompanied by
         the documents described therein, and (b) have an expiry date no later
         than the date which is fourteen (14) days (or, if the Letter of Credit
         is confirmed by a confirmer or otherwise provides for one or more
         nominated persons, forty-five (45) days) prior to the Maturity Date.
         Each Letter of Credit so issued, extended or renewed shall be subject
         to the Uniform Customs or, in the case of a standby Letter of Credit,
         either the Uniform Customs or the International Standby Practices.

                  4.1.4. REIMBURSEMENT OBLIGATIONS OF BANKS. Each Bank severally
         agrees that it shall be absolutely liable, without regard to the
         occurrence of any Default or Event of Default or any other condition
         precedent whatsoever, to the extent of such Bank's Commitment
         Percentage, to reimburse the Agent on demand for the amount of each
         draft paid by the Agent under each Letter of Credit to the extent that
         such amount is not reimbursed by the Borrower pursuant to Section 4.2
         (such agreement for a Bank being called herein the "Letter of Credit
         Participation" of such Bank).

                  4.1.5. PARTICIPATIONS OF BANKS. Each such payment made by a
         Bank shall be treated as the purchase by such Bank of a participating
         interest in the Borrower's Reimbursement Obligation under Section 4.2
         in an amount equal to such payment. Each Bank shall share in accordance
         with its participating interest in any interest which accrues pursuant
         to Section 4.2.

         4.2. REIMBURSEMENT OBLIGATION OF THE BORROWER. In order to induce the
Agent to issue, extend and renew each Letter of Credit and the Banks to
participate therein, the Borrower hereby agrees to reimburse or pay to the
Agent, for the account of the Agent or (as the case may be) the Banks, with
respect to each Letter of Credit issued, extended or renewed by the Agent
hereunder,

                  (a) except as otherwise expressly provided in Section 4.2(b)
         and (c), on each date that any draft presented under such Letter of
         Credit is honored by the Agent, or the Agent otherwise makes a payment
         with respect thereto, (i) the amount paid by the Agent under or with
         respect to such Letter of Credit, and (ii) the amount of any taxes,
         fees, charges or other costs and expenses whatsoever incurred by the
         Agent or any Bank in connection with any payment made by the Agent or
         any Bank under, or with respect to, such Letter of Credit,

                  (b) upon the reduction (but not termination) of the Total
         Commitment to an amount less than the Maximum Drawing Amount, an amount
         equal to such difference, which amount shall be held by the Agent for
         the benefit of the Banks and the Agent as cash collateral for all
         Reimbursement Obligations, and

                  (c) upon the termination of the Total Commitment, or the
         acceleration of the Reimbursement Obligations with respect to all
         Letters of Credit in accordance with Section 13, an amount equal to the
         then Maximum Drawing Amount on all Letters of Credit, which amount
         shall be held by the Agent for the benefit of the Banks and the Agent
         as cash collateral for all Reimbursement Obligations.
<PAGE>   29
                                      -23-

Each such payment shall be made to the Agent at the Agent's Head Office in
immediately available funds. Interest on any and all amounts remaining unpaid by
the Borrower under this Section 4.2 at any time from the date such amounts
become due and payable (whether as stated in this Section 4.2, by acceleration
or otherwise) until payment in full (whether before or after judgment) shall be
payable to the Agent on demand at the rate specified in Section 5.10 for overdue
principal on the Loans.

         4.3. LETTER OF CREDIT PAYMENTS. If any draft shall be presented or
other demand for payment shall be made under any Letter of Credit, the Agent
shall notify the Borrower of the date and amount of the draft presented or
demand for payment and of the date and time when it expects to pay such draft or
honor such demand for payment. If the Borrower fails to reimburse the Agent as
provided in Section 4.2 on or before the date that such draft is paid or other
payment is made by the Agent, the Agent may at any time thereafter notify the
Banks of the amount of any such Unpaid Reimbursement Obligation. No later than
3:00 p.m. (Boston time) on the Business Day next following the receipt of such
notice, each Bank shall make available to the Agent, at the Agent's Head Office,
in immediately available funds, such Bank's Commitment Percentage of such Unpaid
Reimbursement Obligation, together with an amount equal to the product of (a)
the average, computed for the period referred to in clause (c) below, of the
weighted average interest rate paid by the Agent for federal funds acquired by
the Agent during each day included in such period, times (b) the amount equal to
such Bank's Commitment Percentage of such Unpaid Reimbursement Obligation, times
(c) a fraction, the numerator of which is the number of days that elapse from
and including the date the Agent paid the draft presented for honor or otherwise
made payment to the date on which such Bank's Commitment Percentage of such
Unpaid Reimbursement obligation shall become immediately available to the Agent,
and the denominator of which is 360. The responsibility of the Agent to the
Borrower and the Banks shall be only to determine that the documents (including
each draft) delivered under each Letter of Credit in connection with such
presentment shall be in conformity in all material respects with such Letter of
Credit.

         4.4. OBLIGATIONS ABSOLUTE. The Borrower's obligations under this
Section 4 shall be absolute and unconditional under any and all circumstances
and irrespective of the occurrence of any Default or Event of Default or any
condition precedent whatsoever or any setoff, counterclaim or defense to payment
which the Borrower may have or have had against the Agent, any Bank or any
beneficiary of a Letter of Credit. The Borrower further agrees with the Agent
and the Banks that the Agent and the Banks shall not be responsible for, and the
Borrower's Reimbursement Obligations under Section 4.2 shall not be affected by,
among other things, the validity or genuineness of documents or of any
endorsements thereon, even if such documents should in fact prove to be in any
or all respects invalid, fraudulent or forged, or any dispute between or among
the Borrower, the beneficiary of any Letter of Credit or any financing
institution or other party to which any Letter of Credit may be transferred or
any claims or defenses whatsoever of the Borrower against the beneficiary of any
Letter of Credit or any such transferee. The Agent and the Banks shall not be
liable for any error, omission, interruption or delay in transmission, dispatch
or delivery of any message or advice, however transmitted, in connection with
any Letter of Credit. The Borrower agrees that any action taken or omitted by
the Agent or any Bank under or in connection with each Letter of Credit and the
related drafts and documents, if done in good faith, shall be binding upon the
Borrower and shall not result in any liability on the part of the Agent or any
Bank to the Borrower.

         4.5. RELIANCE BY ISSUER. To the extent not inconsistent with Section
4.4, the Agent shall be entitled to rely, and shall be fully protected in
relying upon, any Letter of Credit, draft, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document believed by it to be genuine and
correct and to have been signed, sent or made
<PAGE>   30
                                      -24-

by the proper Person or Persons and upon advice and statements of legal counsel,
independent accountants and other experts selected by the Agent. The Agent shall
be fully justified in failing or refusing to take any action under this Credit
Agreement unless it shall first have received such advice or concurrence of the
Majority Banks as it reasonably deems appropriate or it shall first be
indemnified to its reasonable satisfaction by the Banks against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Credit Agreement
in accordance with a request of the Majority Banks, and such request and any
action taken or failure to act pursuant thereto shall be binding upon the Banks
and all future holders of the Notes or of a Letter of Credit Participation.

         4.6. LETTER OF CREDIT FEE. The Borrower shall, on the date of issuance
or any extension or renewal of any Letter of Credit pay a fee (in each case, a
"Letter of Credit Fee") to the Agent (a) in respect of each standby Letter of
Credit, calculated at the Applicable Margin per annum for LIBOR Rate Loans on
the face amount of such standby Letter of Credit, plus, to the extent there is
more than one Bank party to the Credit Agreement, a fee equal to one-eighth of
one percent (1/8%) per annum of the face amount of such standby Letter of Credit
(the "Standby Fronting Fee"), which Standby Fronting Fee shall be for the
account of the Agent, as a fronting fee, and the balance of which Letter of
Credit Fee shall be for the accounts of the Banks in accordance with their
respective Commitment Percentages and (b) in respect of each documentary Letter
of Credit calculated at the Applicable Margin per annum for LIBOR Rate Loans on
the face amount of such documentary Letter of Credit, plus to the extent there
is more than one Bank party to the Credit Agreement, a fee equal to one-eighth
of one percent (1/8%) per annum on the face amount of such documentary Letter of
Credit (the "Documentary Fronting Fee"), which Documentary Fronting Fee shall be
for the account of the Agent, as a fronting fee, and the balance of which Letter
of Credit Fee shall be for the accounts of the Banks in accordance with their
respective Commitment Percentages. The Letter of Credit Fee, the Standby
Fronting Fee and the Documentary Fronting Fee shall be payable quarterly in
arrears on the last Business Day of each calendar quarter for the calendar
quarter then ending. In respect of each Letter of Credit, the Borrower shall
also pay to the Agent for the Agent's own account, at such other time or times
as such charges are customarily made by the Agent, the Agent's customary
issuance, amendment, negotiation or document examination and other
administrative fees as in effect from time to time.

                         5. CERTAIN GENERAL PROVISIONS.

         5.1. CLOSING FEES. The Borrower agrees to pay to the Agent for the pro
rata accounts of the Banks on the Closing Date a closing fee in the amount of
and at the times set forth in the Fee Letter.

         5.2.  FUNDS FOR PAYMENTS.

                  5.2.1. PAYMENTS TO AGENT. All payments of principal, interest,
         Reimbursement Obligations, Commitment Fees, Letter of Credit Fees and
         any other amounts due hereunder or under any of the other Loan
         Documents shall be made on the due date thereof to the Agent in
         Dollars, for the respective accounts of the Banks and the Agent, at the
         Agent's Head Office or at such other place that the Agent may from time
         to time designate, in each case at or about 11:00 a.m. (Boston,
         Massachusetts, time or other local time at the place of payment) and in
         immediately available funds.

                  5.2.2. NO OFFSET, ETC. All payments by the Borrower hereunder
         and under any of the other Loan Documents shall be made without
         recoupment, setoff or counterclaim and free and clear of and without
         deduction for any taxes, levies, imposts, duties, charges, fees,
         deductions,
<PAGE>   31
                                      -25-

         withholdings, compulsory loans, restrictions or conditions of any
         nature now or hereafter imposed or levied by any jurisdiction or any
         political subdivision thereof or taxing or other authority therein
         unless the Borrower is compelled by law to make such deduction or
         withholding. If any such obligation is imposed upon the Borrower with
         respect to any amount payable by it hereunder or under any of the other
         Loan Documents, the Borrower will pay to the Agent, for the account of
         the Banks or (as the case may be) the Agent, on the date on which such
         amount is due and payable hereunder or under such other Loan Document,
         such additional amount in Dollars as shall be necessary to enable the
         Banks or the Agent to receive the same net amount which the Banks or
         the Agent would have received on such due date had no such obligation
         been imposed upon the Borrower. The Borrower will deliver promptly to
         the Agent certificates or other valid vouchers for all taxes or other
         charges deducted from or paid with respect to payments made by the
         Borrower hereunder or under such other Loan Document.

         5.3. COMPUTATIONS. All computations of interest on Base Rate Loans
shall be based on a 365-day year and paid for the actual number of days elapsed.
All computations of interest on LIBOR Rate Loans and of Commitment Fees, Letter
of Credit Fees or other fees shall, unless otherwise expressly provided herein,
be based on a 360-day year and paid for the actual number of days elapsed.
Except as otherwise provided in the definition of the term "Interest Period"
with respect to LIBOR Rate Loans, whenever a payment hereunder or under any of
the other Loan Documents becomes due on a day that is not a Business Day, the
due date for such payment shall be extended to the next succeeding Business Day,
and interest shall accrue during such extension. The outstanding amount of the
Loans as reflected on the Note Records from time to time shall be considered
correct and binding on the Borrower unless within five (5) Business Days after
receipt of any notice by the Agent or any of the Banks of such outstanding
amount, the Agent or such Bank shall notify the Borrower to the contrary.

         5.4. INABILITY TO DETERMINE LIBOR RATE. In the event, prior to the
commencement of any Interest Period relating to any LIBOR Rate Loan, the Agent
shall determine or be notified by the Majority Banks that adequate and
reasonable methods do not exist for ascertaining the LIBOR Rate that would
otherwise determine the rate of interest to be applicable to any LIBOR Rate Loan
during any Interest Period, the Agent shall forthwith give notice of such
determination (which shall be conclusive and binding on the Borrower and the
Banks) to the Borrower and the Banks. In such event (a) any Loan Request or
Conversion Request with respect to LIBOR Rate Loans shall be automatically
withdrawn and shall be deemed a request for Base Rate Loans, (b) each LIBOR Rate
Loan will automatically, on the last day of the then current Interest Period
relating thereto, become a Base Rate Loan, and (c) the obligations of the Banks
to make LIBOR Rate Loans shall be suspended until the Agent or the Majority
Banks determines that the circumstances giving rise to such suspension no longer
exist, whereupon the Agent or, as the case may be, the Agent upon the
instruction of the Majority Banks, shall so notify the Borrower and the Banks.

         5.5. ILLEGALITY. Notwithstanding any other provisions herein, if any
present or future law, regulation, treaty or directive or in the interpretation
or application thereof shall make it unlawful for any Bank to make or maintain
LIBOR Rate Loans, such Bank shall forthwith give notice of such circumstances to
the Borrower and the other Banks and thereupon (a) the commitment of such Bank
to make LIBOR Rate Loans or convert Loans of another Type to LIBOR Rate Loans
shall forthwith be suspended and (b) such Bank's Loans then outstanding as LIBOR
Rate Loans, if any, shall be converted automatically to Base Rate Loans on the
last day of each Interest Period applicable to such LIBOR Rate Loans or within
such earlier period as may be required by law. The Borrower hereby agrees
promptly to pay the Agent for the account of such Bank, upon demand by such
Bank, any additional amounts
<PAGE>   32
                                      -26-

necessary to compensate such Bank for any costs incurred by such Bank in making
any conversion in accordance with this Section 5.5, including any interest or
fees payable by such Bank to lenders of funds obtained by it in order to make or
maintain its LIBOR Rate Loans hereunder.

         5.6. ADDITIONAL COSTS, ETC. If any present or future applicable law,
which expression, as used herein, includes statutes, rules and regulations
thereunder and interpretations thereof by any competent court or by any
governmental or other regulatory body or official charged with the
administration or the interpretation thereof and requests, directives,
instructions and notices at any time or from time to time hereafter made upon or
otherwise issued to any Bank or the Agent by any central bank or other fiscal,
monetary or other authority (whether or not having the force of law), shall:

                  (a) subject any Bank or the Agent to any tax, levy, impost,
         duty, charge, fee, deduction or withholding of any nature with respect
         to this Credit Agreement, the other Loan Documents, any Letters of
         Credit, such Bank's Commitment or the Loans (other than taxes based
         upon or measured by the income or profits of such Bank or the Agent),
         or

                  (b) materially change the basis of taxation (except for
         changes in taxes on income or profits) of payments to any Bank of the
         principal of or the interest on any Loans or any other amounts payable
         to any Bank or the Agent under this Credit Agreement or any of the
         other Loan Documents, or

                  (c) impose or increase or render applicable (other than to the
         extent specifically provided for elsewhere in this Credit Agreement)
         any special deposit, reserve, assessment, liquidity, capital adequacy
         or other similar requirements (whether or not having the force of law)
         against assets held by, or deposits in or for the account of, or loans
         by, or letters of credit issued by, or commitments of an office of any
         Bank, or

                  (d) impose on any Bank or the Agent any other conditions or
         requirements with respect to this Credit Agreement, the other Loan
         Documents, any Letters of Credit, the Loans, such Bank's Commitment, or
         any class of loans, letters of credit or commitments of which any of
         the Loans or such Bank's Commitment forms a part, and the result of any
         of the foregoing is

                           (i) to increase the cost to any Bank of making,
                  funding, issuing, renewing, extending or maintaining any of
                  the Loans or such Bank's Commitment or any Letter of Credit,
                  or

                           (ii) to reduce the amount of principal, interest,
                  Reimbursement Obligation or other amount payable to such Bank
                  or the Agent hereunder on account of such Bank's Commitment,
                  any Letter of Credit or any of the Loans, or

                           (iii) to require such Bank or the Agent to make any
                  payment or to forego any interest or Reimbursement Obligation
                  or other sum payable hereunder, the amount of which payment or
                  foregone interest or Reimbursement Obligation or other sum is
                  calculated by reference to the gross amount of any sum
                  receivable or deemed received by such Bank or the Agent from
                  the Borrower hereunder,

then, and in each such case, the Borrower will, upon demand made by such Bank or
(as the case may be) the Agent at any time and from time to time and as often as
the occasion therefor may arise, pay to such Bank or the Agent such additional
amounts as will be sufficient to compensate such Bank or the Agent
<PAGE>   33
                                      -27-

for such additional cost, reduction, payment or foregone interest or
Reimbursement Obligation or other sum. Each Bank shall allocate such cost
increases among its customers in good faith and on an equitable basis.

         5.7. CAPITAL ADEQUACY. If after the date hereof any Bank or the Agent
determines that (a) the adoption of or change in any law, governmental rule,
regulation, policy, guideline or directive (whether or not having the force of
law) regarding capital requirements for banks or bank holding companies or any
change in the interpretation or application thereof by a court or governmental
authority with appropriate jurisdiction, or (b) compliance by such Bank or the
Agent or any corporation controlling such Bank or the Agent with any law,
governmental rule, regulation, policy, guideline or directive (whether or not
having the force of law) of any such entity regarding capital adequacy, has the
effect of reducing the return on such Bank's or the Agent's commitment with
respect to any Loans to a level below that which such Bank or the Agent could
have achieved but for such adoption, change or compliance (taking into
consideration such Bank's or the Agent's then existing policies with respect to
capital adequacy and assuming full utilization of such entity's capital) by any
amount deemed by such Bank or (as the case may be) the Agent to be material,
then such Bank or the Agent may notify the Borrower of such fact. To the extent
that the amount of such reduction in the return on capital is not reflected in
the Base Rate, the Borrower and such Bank shall thereafter attempt to negotiate
in good faith, within thirty (30) days of the day on which the Borrower receives
such notice, an adjustment payable hereunder that will adequately compensate
such Bank in light of these circumstances. If the Borrower and such Bank are
unable to agree to such adjustment within thirty (30) days of the date on which
the Borrower receives such notice, then commencing on the date of such notice
(but not earlier than the effective date of any such increased capital
requirement), the fees payable hereunder shall increase by an amount that will,
in such Bank's reasonable determination, provide adequate compensation. Each
Bank shall allocate such cost increases among its customers in good faith and on
an equitable basis.

         5.8. CERTIFICATE. A certificate setting forth any additional amounts
payable pursuant to Sections 5.6 or 5.7 and a brief explanation of such
amounts which are due, submitted by any Bank or the Agent to the Borrower, shall
be conclusive, absent manifest error, that such amounts are due and owing.

         5.9. INDEMNITY. The Borrower agrees to indemnify each Bank and to hold
each Bank harmless from and against any loss, cost or expense (including loss of
anticipated profits) that such Bank may sustain or incur as a consequence of (a)
default by the Borrower in payment of the principal amount of or any interest on
any LIBOR Rate Loans as and when due and payable, including any such loss or
expense arising from interest or fees payable by such Bank to lenders of funds
obtained by it in order to maintain its LIBOR Rate Loans, (b) default by the
Borrower in making a borrowing or conversion after the Borrower has given (or is
deemed to have given) a Loan Request or a Conversion Request relating thereto in
accordance with Section 2.6 or Section 2.7 or (c) the making of any payment of a
LIBOR Rate Loan or the making of any conversion of any such Loan to a Base Rate
Loan on a day that is not the last day of the applicable Interest Period with
respect thereto, including interest or fees payable by such Bank to lenders of
funds obtained by it in order to maintain any such Loans.

         5.10. INTEREST AFTER DEFAULT. Overdue principal and (to the extent
permitted by applicable law) interest on the Loans and all other overdue amounts
payable hereunder or under any of the other Loan Documents shall bear interest
compounded monthly and payable on demand at a rate per annum equal to two
percent (2.0%) above the rate of interest otherwise applicable to such Loans
pursuant to Section 2.5 until such amount shall be paid in full (after as well
as before judgment)
<PAGE>   34
                                      -28-

                                 6. GUARANTIES.

         6.1. GUARANTIES OF SUBSIDIARIES. The Obligations shall be guaranteed
pursuant to the terms of the Guaranty.

                       7. REPRESENTATIONS AND WARRANTIES.

         The Borrower represents and warrants to the Banks and the Agent as
follows:

         7.1.  CORPORATE AUTHORITY.

                  7.1.1. INCORPORATION; GOOD STANDING. Each of the Borrower and
         its Subsidiaries (a) is a corporation duly organized, validly existing
         and in good standing under the laws of its state of incorporation, (b)
         has all requisite corporate power to own its property and conduct its
         business as now conducted and as presently contemplated, and (c) is in
         good standing as a foreign corporation and is duly authorized to do
         business in each jurisdiction where such qualification is necessary
         except where a failure to be so qualified would not have a materially
         adverse effect on the business, assets or financial condition of the
         Borrower or such Subsidiary.

                  7.1.2. AUTHORIZATION. The execution, delivery and performance
         of this Credit Agreement and the other Loan Documents to which the
         Borrower or any of its Subsidiaries is or is to become a party and the
         transactions contemplated hereby and thereby (a) are within the
         corporate authority of such Person, (b) have been duly authorized by
         all necessary corporate proceedings, (c) do not conflict with or result
         in any breach or contravention of any provision of law, statute, rule
         or regulation to which the Borrower or any of its Subsidiaries is
         subject or any judgment, order, writ, injunction, license or permit
         applicable to the Borrower or any of its Subsidiaries and (d) do not
         conflict with any provision of the corporate charter or bylaws of, or
         any agreement or other instrument binding upon, the Borrower or any of
         its Subsidiaries.

                  7.1.3. ENFORCEABILITY. The execution and delivery of this
         Credit Agreement and the other Loan Documents to which the Borrower or
         any of its Subsidiaries is or is to become a party will result in valid
         and legally binding obligations of such Person enforceable against it
         in accordance with the respective terms and provisions hereof and
         thereof, except as enforceability is limited by bankruptcy, insolvency,
         reorganization, moratorium or other laws relating to or affecting
         generally the enforcement of creditors' rights and except to the extent
         that availability of the remedy of specific performance or injunctive
         relief is subject to the discretion of the court before which any
         proceeding therefor may be brought.

         7.2. GOVERNMENTAL APPROVALS. The execution, delivery and performance by
the Borrower and any of its Subsidiaries of this Credit Agreement and the other
Loan Documents to which the Borrower or any of its Subsidiaries is or is to
become a party and the transactions contemplated hereby and thereby do not
require the approval or consent of, or filing with, any governmental agency or
authority other than those already obtained.

         7.3. TITLE TO PROPERTIES; LEASES. Except as indicated on Schedule 7.3
hereto, the Borrower and its Subsidiaries own all of the assets reflected in the
consolidated balance sheet of the Borrower and its Subsidiaries as at the
Balance Sheet Date or acquired since that date (except property and assets sold
or otherwise disposed of in the ordinary course of business since that date),
subject to no rights of others,
<PAGE>   35
                                      -29-

including any mortgages, leases, conditional sales agreements, title retention
agreements, liens or other encumbrances except Permitted Liens.

         7.4.  FINANCIAL STATEMENTS AND PROJECTIONS.

                  7.4.1. FISCAL YEAR. The Borrower and each of its Subsidiaries
         has a fiscal year which is the twelve months ending on September 30 of
         each calendar year.

                  7.4.2. FINANCIAL STATEMENTS. There has been furnished to each
         of the Banks a consolidated balance sheet of the Borrower and its
         Subsidiaries as at the Balance Sheet Date, and a consolidated statement
         of income of the Borrower and its Subsidiaries for the fiscal year then
         ended, certified by PricewaterhouseCoopers LLP. Such balance sheet and
         statement of income have been prepared in accordance with generally
         accepted accounting principles and fairly present the financial
         condition of the Borrower as at the close of business on the date
         thereof and the results of operations for the fiscal year then ended.
         There are no contingent liabilities of the Borrower or any of its
         Subsidiaries as of such date involving material amounts, known to the
         officers of the Borrower, which were not disclosed in such balance
         sheet and the notes related thereto.

                  7.4.3. PROJECTIONS. The projections of the annual operating
         budgets of the Borrower and its Subsidiaries on a consolidated basis,
         balance sheets and cash flow statements for the 2000 to 2002 fiscal
         years, copies of which have been delivered to each Bank, disclose all
         assumptions made with respect to general economic, financial and market
         conditions used in formulating such projections. To the knowledge of
         the Borrower or any of its Subsidiaries, no facts exist that
         (individually or in the aggregate) would result in any material change
         in any of such projections. The projections are based upon reasonable
         estimates and assumptions, have been prepared on the basis of the
         assumptions stated therein and reflect the reasonable estimates of the
         Borrower and its Subsidiaries of the results of operations and other
         information projected therein.

                  7.4.4. SOLVENCY. The Borrower and its Subsidiaries, on a
         consolidated and consolidating basis, both before and after giving
         effect to the transactions contemplated by this Credit Agreement and
         the other Loan Documents (a) are solvent; (b) have assets having a fair
         value in excess of their liabilities; (c) have assets having a fair
         value in excess of the amount required to pay their liabilities on
         existing debts as such debts become due and payable, and (d) have, and
         expect to continue to have, access to adequate capital for the conduct
         of their business and the ability to pay their debts from time to time
         incurred in connection with the operation of their business as such
         debts mature.

         7.5. NO MATERIAL CHANGES, ETC. Since the Balance Sheet Date there has
occurred no materially adverse change in the financial condition or business of
the Borrower and its Subsidiaries as shown on or reflected in the consolidated
balance sheet of the Borrower and its Subsidiaries as at the Balance Sheet Date,
or the consolidated statement of income for the fiscal year then ended, other
than changes in the ordinary course of business that have not had any materially
adverse effect either individually or in the aggregate on the business or
financial condition of the Borrower or any of its Subsidiaries. Since the
Balance Sheet Date, the Borrower has not made any Distributions.

         7.6. FRANCHISES, PATENTS, COPYRIGHTS, ETC. Except as set forth in
Schedule 7.7, neither the Borrower nor any Subsidiary has received written
notice from any Person alleging or claiming that the Borrower or any Subsidiary
is infringing any patent, trademark, copyright or any other intellectual
<PAGE>   36
                                      -30-

property rights of such Person, and, in addition, neither the Borrower nor any
Subsidiary has any actual knowledge of any claim by any Person that would
preclude the Borrower or such Subsidiary from possessing and otherwise using all
franchises, patents (if any), copyrights, trademarks, trade names, licenses and
permits, and rights in respect of the foregoing, which are adequate for the
conduct of its business substantially as now conducted.

         7.7. LITIGATION. Except as set forth in Schedule 7.7 hereto, there are
no actions, suits, proceedings or investigations of any kind pending or, to the
best of the Borrower's knowledge, threatened against the Borrower or any of its
Subsidiaries before any court, tribunal or administrative agency or board that,
if adversely determined, might, either in any case or in the aggregate,
materially adversely affect the properties, assets, financial condition or
business of the Borrower and its Subsidiaries or materially impair the right of
the Borrower and its Subsidiaries, considered as a whole, to carry on business
substantially as now conducted by them, or result in any substantial liability
not adequately covered by insurance, or for which adequate reserves are not
maintained on the consolidated balance sheet of the Borrower and its
Subsidiaries, or which question the validity of this Credit Agreement or any of
the other Loan Documents, or any action taken or to be taken pursuant hereto or
thereto.

         7.8. NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Borrower nor any
of its Subsidiaries is subject to any charter, corporate or, to the best of the
Borrower's knowledge, other legal restriction, or any judgment, decree, order,
rule or regulation that has or is expected in the future to have a materially
adverse effect on the business, assets or financial condition of the Borrower or
any of its Subsidiaries. Neither the Borrower nor any of its Subsidiaries is a
party to any contract or agreement that has or is expected, in the judgment of
the Borrower's officers, to have any materially adverse effect on the business
of the Borrower or any of its Subsidiaries.

         7.9. COMPLIANCE WITH OTHER INSTRUMENTS, LAWS, ETC. Neither the Borrower
nor any of its Subsidiaries is in violation of any provision of its charter
documents, bylaws, or any agreement or instrument to which it may be subject or
by which it or any of its properties may be bound or, to the best of the
Borrower's knowledge, any decree, order, judgment, statute, license, rule or
regulation, in any of the foregoing cases in a manner that could result in the
imposition of substantial penalties or materially and adversely affect the
financial condition, properties or business of the Borrower or any of its
Subsidiaries.

         7.10. TAX STATUS. The Borrower and its Subsidiaries (a) have made or
filed all federal and state income and all other tax returns, reports and
declarations required by any jurisdiction to which any of them is subject, (b)
have paid all taxes and other governmental assessments and charges shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and by appropriate proceedings and (c) have set
aside on their books provisions reasonably adequate for the payment of all taxes
for periods subsequent to the periods to which such returns, reports or
declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction, and the officers of the
Borrower know of no basis for any such claim.

         7.11. NO EVENT OF DEFAULT. No Default or Event of Default has occurred
and is continuing.

         7.12. HOLDING COMPANY AND INVESTMENT COMPANY ACTS. Neither the Borrower
nor any of its Subsidiaries is a "holding company", or a "subsidiary company" of
a "holding company", or an "affiliate" of a "holding company", as such terms are
defined in the Public Utility Holding Company Act of 1935; nor is it an
"investment company", or an "affiliated company" or a "principal underwriter" of
an "investment company", as such terms are defined in the Investment Company Act
of 1940.
<PAGE>   37
                                      -31-

         7.13. ABSENCE OF FINANCING STATEMENTS, ETC. Except with respect to
Permitted Liens, there is no financing statement, security agreement, chattel
mortgage, real estate mortgage or other document filed or recorded with any
filing records, registry or other public office, that purports to cover, affect
or give notice of any present or possible future lien on, or security interest
in, any assets or property of the Borrower or any of its Subsidiaries or any
rights relating thereto.

         7.14. CERTAIN TRANSACTIONS. Except for arm's length transactions
pursuant to which the Borrower or any of its Subsidiaries makes payments in the
ordinary course of business upon terms no less favorable than the Borrower or
such Subsidiary could obtain from third parties, none of the officers,
directors, or employees of the Borrower or any of its Subsidiaries is presently
a party to any transaction with the Borrower or any of its Subsidiaries (other
than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Borrower, any corporation, partnership, trust or other entity
in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.

         7.15.  EMPLOYEE BENEFIT PLANS.

                  7.15.1. IN GENERAL. Each Employee Benefit Plan and each
         Guaranteed Pension Plan of the Borrower and its Subsidiaries has been
         maintained and operated and is being maintained and operated in
         compliance in all material respects with the provisions of ERISA and,
         to the extent applicable, the Code, including but not limited to the
         provisions thereunder respecting prohibited transactions and the
         bonding of fiduciaries and other persons handling plan funds as
         required by Section 412 of ERISA. The Borrower has heretofore delivered
         to the Agent the most recently completed annual report, Form 5500, with
         all required attachments, and actuarial statement required to be
         submitted under Section 103(d) of ERISA, with respect to each
         Guaranteed Pension Plan.

                  7.15.2. TERMINABILITY OF WELFARE PLANS. No Employee Benefit
         Plan of the Borrower or any Subsidiary, which is an employee welfare
         benefit plan within the meaning of Section 3(1) or Section 3(2)(B) of
         ERISA, provides benefit coverage subsequent to termination of
         employment, except as required by Title I, Part 6 of ERISA or the
         applicable state insurance laws and certain retiree medical and life
         insurance benefits. The Borrower may terminate each such Plan at any
         time (or at any time subsequent to the expiration of any applicable
         bargaining agreement) in the discretion of the Borrower without
         liability to any Person other than for claims arising prior to
         termination.

                  7.15.3. GUARANTEED PENSION PLANS. Each contribution required
         to be made to a Guaranteed Pension Plan by the Borrower or any
         Subsidiary, whether required to be made to avoid the incurrence of an
         accumulated funding deficiency, the notice or lien provisions of
         Section 302(f) of ERISA, or otherwise, has been timely made. No waiver
         of an accumulated funding deficiency or extension of amortization
         periods has been received with respect to any Guaranteed Pension Plan,
         and neither the Borrower nor any ERISA Affiliate is obligated to or has
         posted security in connection with an amendment to a Guaranteed Pension
         Plan pursuant to Section 307 of ERISA or Section 401(a)(29) of the
         Code. No liability to the PBGC (other than required insurance premiums,
         all of which have been paid) has been incurred by the Borrower or any
         ERISA Affiliate with respect to any Guaranteed Pension Plan and there
         has not been any ERISA Reportable Event (other than an ERISA Reportable
         Event as to which the requirement of 30 days
<PAGE>   38
                                      -32-

         notice has been waived), or any other event or condition which presents
         a material risk of termination of any Guaranteed Pension Plan by the
         PBGC. Based on the latest valuation of each Guaranteed Pension Plan
         (which in each case occurred within twelve months of the date of this
         representation), and on the actuarial methods and assumptions employed
         for that valuation, the aggregate benefit liabilities of all such
         Guaranteed Pension Plans within the meaning of Section 4001 of ERISA
         did not exceed the aggregate value of the assets of all such Guaranteed
         Pension Plans.

                  7.15.4. MULTIEMPLOYER PLANS. Neither the Borrower nor any
         ERISA Affiliate has incurred any material liability (including
         secondary liability) to any Multiemployer Plan as a result of a
         complete or partial withdrawal from such Multiemployer Plan under
         Section 4201 of ERISA or as a result of a sale of assets described in
         Section 4204 of ERISA. Neither the Borrower nor any ERISA Affiliate has
         been notified that any Multiemployer Plan is in reorganization or
         insolvent under and within the meaning of Section 4241 or Section 4245
         of ERISA or is at risk of entering reorganization or becoming
         insolvent, or that any Multiemployer Plan intends to terminate or has
         been terminated under Section 4041A of ERISA.

         7.16.  USE OF PROCEEDS.

                  7.16.1. GENERAL. The proceeds of the Loans shall be used for
         working capital, general corporate purposes (including, without
         limitation, financing all or any portion of any Permitted Acquisition)
         and capital expenditures. The Borrower will obtain Letters of Credit
         solely for working capital and general corporate purposes.

                  7.16.2. REGULATIONS U AND X. No portion of any Loan is to be
         used, and no portion of any Letter of Credit is to be obtained, for the
         purpose of purchasing or carrying any "margin security" or "margin
         stock" as such terms are used in Regulations U and X of the Board of
         Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and 224.

                  7.16.3. INELIGIBLE SECURITIES. No portion of the proceeds of
         any Loans is to be used, and no portion of any Letter of Credit is to
         be obtained, for the purpose of knowingly purchasing, or providing
         credit support for the purchase of, during the underwriting or
         placement period or within thirty (30) days thereafter, any Ineligible
         Securities underwritten or privately placed by a Section 20 Subsidiary.

         7.17. ENVIRONMENTAL COMPLIANCE. The Borrower has taken all necessary
steps to investigate the past and present condition and usage of the Real Estate
and the operations conducted thereon and, based upon such diligent
investigation, has determined that:

                  (a) none of the Borrower, its Subsidiaries or any operator of
         the Real Estate or any operations thereon is in violation, or, to the
         best of the Borrower's knowledge, alleged violation, of any judgment,
         decree, order, law, license, rule or regulation pertaining to
         environmental matters, including without limitation, those arising
         under the Resource Conservation and Recovery Act ("RCRA"), the
         Comprehensive Environmental Response, Compensation and Liability Act of
         1980 as amended ("CERCLA"), the Superfund Amendments and
         Reauthorization Act of 1986 ("SARA"), the Federal Clean Water Act, the
         Federal Clean Air Act, the Toxic Substances Control Act, or any state
         or local statute, regulation, ordinance, order or decree relating to
         health, safety or the environment (hereinafter "Environmental Laws"),
         which violation would have a material adverse effect on the environment
         or the business, assets or financial condition of the Borrower or any
         of its Subsidiaries;
<PAGE>   39
                                      -33-

                  (b) neither the Borrower nor any of its Subsidiaries has
         received notice from any third party including, without limitation, any
         federal, state or local governmental authority, (i) that any one of
         them has been identified by the United States Environmental Protection
         Agency ("EPA") as a potentially responsible party under CERCLA with
         respect to a site listed on the National Priorities List, 40 C.F.R.
         Part 300 Appendix B; (ii) that any hazardous waste, as defined by 42
         U.S.C. Section 6903(5), any hazardous substances as defined by 42
         U.S.C. Section 9601(14), any pollutant or contaminant as defined by 42
         U.S.C. Section 9601(33) and any toxic substances, oil or hazardous
         materials or other chemicals or substances regulated by any
         Environmental Laws ("Hazardous Substances") which any one of them has
         generated, transported or disposed of has been found at any site at
         which a federal, state or local agency or other third party has
         conducted or has ordered that any Borrower or any of its Subsidiaries
         conduct a remedial investigation, removal or other response action
         pursuant to any Environmental Law; or (iii) that it is or shall be a
         named party to any claim, action, cause of action, complaint, or legal
         or administrative proceeding (in each case, contingent or otherwise)
         arising out of any third party's incurrence of costs, expenses, losses
         or damages of any kind whatsoever in connection with the release of
         Hazardous Substances;

                  (c) except as set forth on Schedule 7.17 attached hereto: (i)
         no portion of the Real Estate has been used for the handling,
         processing, storage or disposal of Hazardous Substances except in
         accordance with applicable Environmental Laws; and no underground tank
         or other underground storage receptacle for Hazardous Substances is
         located on any portion of the Real Estate; (ii) in the course of any
         activities conducted by the Borrower, its Subsidiaries or operators of
         its properties, no Hazardous Substances have been generated or are
         being used on the Real Estate except in accordance with applicable
         Environmental Laws; (iii) there have been no releases (i.e. any past or
         present releasing, spilling, leaking, pumping, pouring, emitting,
         emptying, discharging, injecting, escaping, disposing or dumping) or
         threatened releases of Hazardous Substances on, upon, into or from the
         properties of the Borrower or its Subsidiaries, which releases would
         have a material adverse effect on the value of any of the Real Estate
         or adjacent properties or the environment; (iv) to the best of the
         Borrower's knowledge, there have been no releases on, upon, from or
         into any real property in the vicinity of any of the Real Estate which,
         through soil or groundwater contamination, may have come to be located
         on, and which would have a material adverse effect on the value of, the
         Real Estate; and (v) in addition, any Hazardous Substances that have
         been generated on any of the Real Estate have been transported offsite
         only by carriers having an identification number issued by the EPA,
         treated or disposed of only by treatment or disposal facilities
         maintaining valid permits as required under applicable Environmental
         Laws, which transporters and facilities have been and are, to the best
         of the Borrower's knowledge, operating in compliance with such permits
         and applicable Environmental Laws; and

                  (d) None of the Borrower and its Subsidiaries or any of the
         Real Estate is subject to any applicable environmental law requiring
         the performance of Hazardous Substances site assessments, or the
         removal or remediation of Hazardous Substances, or the giving of notice
         to any governmental agency or the recording or delivery to other
         Persons of an environmental disclosure document or statement by virtue
         of the transactions set forth herein and contemplated hereby, or to the
         effectiveness of any other transactions contemplated hereby.
<PAGE>   40
                                      -34-

         7.18. SUBSIDIARIES, ETC. Except as set forth on Schedule 7.18(a)
hereto, the Borrower has no Subsidiaries. Except as set forth on Schedule
7.18(b) hereto, neither the Borrower nor any Subsidiary of the Borrower is
engaged in any joint venture or partnership with any other Person.

         7.19. DISCLOSURE. None of this Credit Agreement or any of the other
Loan Documents contains any untrue statement of a material fact or omits to
state a material fact (known to the Borrower or any of its Subsidiaries in the
case of any document or information not furnished by it or any of its
Subsidiaries) necessary in order to make the statements herein or therein not
misleading. There is no fact known to the Borrower or any of its Subsidiaries
which materially adversely affects, or which is reasonably likely in the future
to materially adversely affect, the business, assets, financial condition or
prospects of the Borrower or any of its Subsidiaries, exclusive of effects
resulting from changes in general economic conditions, legal standards or
regulatory conditions.

                    8. AFFIRMATIVE COVENANTS OF THE BORROWER.

         The Borrower covenants and agrees that, so long as any Loan, Unpaid
Reimbursement Obligation, Letter of Credit or Note is outstanding or any Bank
has any obligation to make any Loans or the Agent has any obligation to issue,
extend or renew any Letters of Credit:

         8.1. PUNCTUAL PAYMENT. The Borrower will duly and punctually pay or
cause to be paid the principal and interest on the Loans, all Reimbursement
Obligations, the Letter of Credit Fees, the Commitment Fees and all other
amounts provided for in this Credit Agreement and the other Loan Documents to
which the Borrower or any of its Subsidiaries is a party, all in accordance with
the terms of this Credit Agreement and such other Loan Documents.

         8.2. MAINTENANCE OF OFFICE. The Borrower will maintain its chief
executive office in Aurora, Illinois, or at such other place in the United
States of America as the Borrower shall designate upon written notice to the
Agent, where notices, presentations and demands to or upon the Borrower in
respect of the Loan Documents to which the Borrower is a party may be given or
made.

         8.3. RECORDS AND ACCOUNTS. The Borrower will (a) keep, and cause each
of its Subsidiaries to keep, true and accurate records and books of account in
which full, true and correct entries will be made in accordance with generally
accepted accounting principles, (b) maintain adequate accounts and reserves for
all taxes (including income taxes), depreciation, depletion, obsolescence and
amortization of its properties and the properties of its Subsidiaries,
contingencies, and other reserves, and (c) at all times engage
PricewaterhouseCoopers LLP or other independent certified public accountants
satisfactory to the Agent as the independent certified public accountants of the
Borrower and its Subsidiaries and will not permit more than thirty (30) days to
elapse between the cessation of such firm's (or any successor firm's) engagement
as the independent certified public accountants of the Borrower and its
Subsidiaries and the appointment in such capacity of a successor firm as shall
be satisfactory to the Agent.

         8.4. FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION. The Borrower
will deliver to each of the Banks:

                  (a) as soon as practicable, but in any event not later than
         ninety (90) days after the end of each fiscal year of the Borrower, the
         consolidated balance sheet of the Borrower and its Subsidiaries and the
         consolidating balance sheet of the Borrower and its Subsidiaries, each
         as at the end of such year, and the related consolidated statement of
         income and consolidated statement of
<PAGE>   41
                                      -35-

         cash flow and consolidating statement of income and consolidating
         statement of cash flow for such year, each setting forth in comparative
         form the figures for the previous fiscal year and all such consolidated
         and consolidating statements to be in reasonable detail, prepared in
         accordance with generally accepted accounting principles, and certified
         without qualification by PricewaterhouseCoopers LLP or by other
         independent certified public accountants satisfactory to the Agent,
         together with a written statement from such accountants to the effect
         that they have read a copy of this Credit Agreement, and that, in
         making the examination necessary to said certification, they have
         obtained no knowledge of any Default or Event of Default, or, if such
         accountants shall have obtained knowledge of any then existing Default
         or Event of Default they shall disclose in such statement any such
         Default or Event of Default; provided that such accountants shall not
         be liable to the Banks for failure to obtain knowledge of any Default
         or Event of Default;

                  (b) as soon as practicable, but in any event not later than
         forty-five (45) days after the end of each of the fiscal quarters of
         the Borrower, copies of the unaudited consolidated balance sheet of the
         Borrower and its Subsidiaries and the unaudited consolidating balance
         sheet of the Borrower and its Subsidiaries, each as at the end of such
         quarter, and the related consolidated statement of income and
         consolidated statement of cash flow and consolidating statement of
         income and consolidating statement of cash flow for the portion of the
         Borrower's fiscal year then elapsed, all in reasonable detail and
         prepared in accordance with generally accepted accounting principles,
         together with a certification by the principal financial or accounting
         officer of the Borrower that the information contained in such
         financial statements fairly presents the financial position of the
         Borrower and its Subsidiaries on the date thereof (subject to year-end
         adjustments);

                  (c) simultaneously with the delivery of the financial
         statements referred to in subsections (a) and (b) above, a statement
         certified by the principal financial or accounting officer of the
         Borrower (the "Compliance Certificate") in substantially the form of
         Exhibit C hereto and setting forth in reasonable detail computations
         evidencing compliance with the covenants contained in Section 11 and
         (if applicable) reconciliations to reflect changes in generally
         accepted accounting principles since the Balance Sheet Date;

                  (d) contemporaneously with the filing or mailing thereof,
         copies of all material of a financial nature filed with the Securities
         and Exchange Commission or sent to the stockholders of the Borrower;

                  (e) from time to time upon request of the Agent, projections
         of the Borrower and its Subsidiaries updating those projections
         delivered to the Banks and referred to in Section 7.4.2 or, if
         applicable, updating any later such projections delivered in response
         to a request pursuant to this Section 8.4(e); and

                  (f) from time to time such other financial data and
         information (including accountants, management letters) as the Agent or
         any Bank may reasonably request.

         8.5.  NOTICES.

                  8.5.1. DEFAULTS. The Borrower will promptly notify the Agent
         and each of the Banks in writing of the occurrence of any Default or
         Event of Default. If any Person shall give any notice or take any other
         action in respect of a claimed default (whether or not constituting an
         Event of Default) under this Credit Agreement or any other note,
         evidence of indebtedness, indenture or
<PAGE>   42
                                      -36-

         other obligation to which or with respect to which the Borrower or any
         of its Subsidiaries is a party or obligor, whether as principal,
         guarantor, surety or otherwise, the Borrower shall forthwith give
         written notice thereof to the Agent and each of the Banks, describing
         the notice or action and the nature of the claimed default.

                  8.5.2. ENVIRONMENTAL EVENTS. The Borrower will promptly give
         notice to the Agent and each of the Banks (a) of any violation of any
         Environmental Law that the Borrower or any of its Subsidiaries reports
         in writing or is reportable by such Person in writing (or for which any
         written report supplemental to any oral report is made) to any federal,
         state or local environmental agency and (b) upon becoming aware
         thereof, of any inquiry, proceeding, investigation, or other action,
         including a notice from any agency of potential environmental
         liability, of any federal, state or local environmental agency or
         board, that has the potential to materially affect the assets,
         liabilities, financial conditions or operations of the Borrower or any
         of its Subsidiaries.

                  8.5.3. NOTIFICATION OF CLAIM AGAINST ASSETS. The Borrower
         will, immediately upon becoming aware thereof, notify the Agent and
         each of the Banks in writing of any setoff, claims (including, with
         respect to the Real Estate, environmental claims), withholdings or
         other defenses to which any of the Borrower's or any Subsidiary assets
         are subject.

                  8.5.4. NOTICE OF LITIGATION AND JUDGMENTS. The Borrower will,
         and will cause each of its Subsidiaries to, give notice to the Agent
         and each of the Banks in writing within fifteen (15) days of becoming
         aware of any litigation or proceedings threatened in writing or any
         pending litigation and proceedings affecting the Borrower or any of its
         Subsidiaries or to which the Borrower or any of its Subsidiaries is or
         becomes a party involving an uninsured claim against the Borrower or
         any of its Subsidiaries that could reasonably be expected to have a
         materially adverse effect on the Borrower or any of its Subsidiaries
         and stating the nature and status of such litigation or proceedings.
         The Borrower will, and will cause each of its Subsidiaries to, give
         notice to the Agent and each of the Banks, in writing, in form and
         detail satisfactory to the Agent, within ten (10) days of any judgment
         not covered by insurance, final or otherwise, against the Borrower or
         any of its Subsidiaries in an amount in excess of $5,000,000.

         8.6. CORPORATE EXISTENCE; MAINTENANCE OF PROPERTIES. The Borrower will
do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence, rights and franchises and those of its
Subsidiaries and will not, and will not cause or permit any of its Subsidiaries
to, convert to a limited liability company. It (a) will cause all of its
properties and those of its Subsidiaries used or useful in the conduct of its
business or the business of its Subsidiaries to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment,
(b) will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Borrower may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times, and (c) will, and will cause
each of its Subsidiaries to, continue to engage primarily in the businesses now
conducted by them and in related businesses; provided that nothing in this
Section 8.6 shall prevent the Borrower from discontinuing the operation and
maintenance of any of its properties or any of those of its Subsidiaries if such
discontinuance is, in the judgment of the Borrower, desirable in the conduct of
its or their business and that do not in the aggregate materially adversely
affect the business of the Borrower and its Subsidiaries on a consolidated
basis.
<PAGE>   43
                                      -37-

         8.7. INSURANCE. The Borrower will, and will cause each of its
Subsidiaries to, maintain with financially sound and reputable insurers
insurance with respect to its properties and business against such casualties
and contingencies as shall be in accordance with the general practices of
businesses engaged in similar activities in similar geographic areas and in
amounts, containing such terms, in such forms and for such periods as may be
reasonable and prudent.

         8.8. TAXES. The Borrower will, and will cause each of its Subsidiaries
to, duly pay and discharge, or cause to be paid and discharged, before the same
shall become overdue, all taxes, assessments and other governmental charges
imposed upon it and its real properties, sales and activities, or any part
thereof, or upon the income or profits therefrom, as well as all claims for
labor, materials, or supplies that if unpaid might by law become a lien or
charge upon any of its property; provided that any such tax, assessment, charge,
levy or claim need not be paid if the validity or amount thereof shall currently
be contested in good faith by appropriate proceedings and if the Borrower or
such Subsidiary shall have set aside on its books adequate reserves with respect
thereto; and provided further that the Borrower and each Subsidiary of the
Borrower will pay all such taxes, assessments, charges, levies or claims
forthwith upon the commencement of proceedings to foreclose any lien that may
have attached as security therefor.

         8.9.  INSPECTION OF PROPERTIES AND BOOKS, ETC.

                  8.9.1. GENERAL. The Borrower shall permit the Banks, through
         the Agent or any of the Banks' other designated representatives, to
         visit and inspect any of the properties of the Borrower or any of its
         Subsidiaries, to examine the books of account of the Borrower and its
         Subsidiaries (and to make copies thereof and extracts therefrom), and
         to discuss the affairs, finances and accounts of the Borrower and its
         Subsidiaries with, and to be advised as to the same by, its and their
         officers, all at such reasonable times and intervals as the Agent or
         any Bank may reasonably request.

                  8.9.2. COMMUNICATIONS WITH ACCOUNTANTS. The Borrower
         authorizes the Agent and, if accompanied by the Agent, the Banks to
         communicate directly with the Borrower's independent certified public
         accountants with respect to the business, financial condition and other
         affairs of the Borrower or any of its Subsidiaries. At the request of
         the Agent, the Borrower shall deliver a letter addressed to such
         accountants instructing them to comply with the provisions of this
         Section 8.9.2.

         8.10. COMPLIANCE WITH LAWS, CONTRACTS, LICENSES, AND PERMITS. The
Borrower will, and will cause each of its Subsidiaries to, comply with (a) the
applicable laws and regulations wherever its business is conducted, including
all Environmental Laws, (b) the provisions of its charter documents and by-laws,
(c) all agreements and instruments by which it or any of its properties may be
bound and (d) all applicable decrees, orders, and judgments. If any
authorization, consent, approval, permit or license from any officer, agency or
instrumentality of any government shall become necessary or required in order
that the Borrower or any of its Subsidiaries may fulfill any of its obligations
hereunder or any of the other Loan Documents to which the Borrower or such
Subsidiary is a party, the Borrower will, or (as the case may be) will cause
such Subsidiary to, immediately take or cause to be taken all reasonable steps
within the power of the Borrower or such Subsidiary to obtain such
authorization, consent, approval, permit or license and furnish the Agent and
the Banks with evidence thereof.

         8.11. EMPLOYEE BENEFIT PLANS. The Borrower will (a) promptly upon
filing the same with the Department of Labor or Internal Revenue Service upon
request of the Agent, furnish to the Agent a copy
<PAGE>   44
                                      -38-

of the most recent actuarial statement required to be submitted under
Section 103(d) of ERISA and Annual Report, Form 5500, with all required
attachments, in respect of each Guaranteed Pension Plan and (b) promptly upon
receipt or dispatch, furnish to the Agent any notice, report or demand sent or
received in respect of a Guaranteed Pension Plan under Sections 302, 4041,
4042, 4043, 4063, 4065, 4066 and 4068 of ERISA, or in respect of a Multiemployer
Plan, under Sections 4041A, 4202, 4219, 4242, or 4245 of ERISA.

         8.12. USE OF PROCEEDS. The Borrower will use the proceeds of the Loans
solely for the purposes specified in Section 7.16.1. The Borrower will obtain
Letters of Credit solely for general corporate purposes.

         8.13. REPLACEMENT INSTRUMENTS. Upon receipt of an affidavit of an
officer of the Agent or any Bank as to the loss, theft, destruction or
mutilation of any Note, and, in the case of any such loss, theft, destruction or
mutilation, upon cancellation of such Note, the Borrower shall issue, in lieu
thereof, a replacement Note in the same principal amount thereof and otherwise
of like tenor.

         8.14. NEW GUARANTORS. The Borrower will cause each Domestic Subsidiary
created, acquired or otherwise existing, on or after the Closing Date to
immediately become a Guarantor on the Closing Date or on the date of its
acquisition or formation, as the case may be, and shall cause such Domestic
Subsidiary to execute and deliver to the Agent, for the benefit of the Agent and
the Banks, a Guaranty, together with legal opinions in form and substance
satisfactory to the Agent to be delivered to the Agent and the Banks opining as
to authorization validity and enforceability of such Guaranty and as to the due
incorporation, and legal existence of such Domestic Subsidiary.

         8.15. ADDITIONAL SUBSIDIARIES. If, after the Closing Date, the Borrower
or any of its Subsidiaries creates or acquires, either directly or indirectly,
any Subsidiary, it will immediately notify the Agent of such creation or
acquisition, as the case may be, and provide the Agent with an updated Schedule
7.18(a) hereof and take all other actions required by Section 8.14 and
Section 9.5.1 hereof.

         8.16. FURTHER ASSURANCES. The Borrower will, and will cause each of its
Subsidiaries to, cooperate with the Banks and the Agent and execute such further
instruments and documents as the Banks or the Agent shall reasonably request to
carry out to their satisfaction the transactions contemplated by this Credit
Agreement and the other Loan Documents.

                 9. CERTAIN NEGATIVE COVENANTS OF THE BORROWER.

         The Borrower covenants and agrees that, so long as any Loan, Unpaid
Reimbursement Obligation, Letter of Credit or Note is outstanding or any Bank
has any obligation to make any Loans or the Agent has any obligations to issue,
extend or renew any Letters of Credit:

         9.1. RESTRICTIONS ON INDEBTEDNESS. The Borrower will not, and will not
permit any of its Subsidiaries to, create, incur, assume, guarantee or be or
remain liable, contingently or otherwise, with respect to any Indebtedness other
than:

                  (a) Indebtedness to the Banks and the Agent arising under any
         of the Loan Documents;

                  (b) endorsements for collection, deposit or negotiation and
         warranties of products or services, in each case incurred in the
         ordinary course of business;
<PAGE>   45
                                      -39-

                  (c) Indebtedness incurred in connection with the acquisition
         after the date hereof of any real or personal property by the Borrower
         or such Subsidiary or under any Capitalized Lease or Synthetic Lease,
         provided that the aggregate principal amount of such Indebtedness of
         the Borrower and its Subsidiaries shall not exceed the aggregate amount
         of $5,000,000 at any one time;

                  (d) Indebtedness existing on the date hereof and listed and
         described on Schedule 9.1 hereto;

                  (e) Indebtedness of a Subsidiary of the Borrower to the
         Borrower or a Guarantor so long as such Subsidiary is a Guarantor
         hereunder and remains a Subsidiary;

                  (f) unsecured Indebtedness of the Borrower evidenced by the
         LaSalle Loan Documents in an aggregate principal amount not to exceed
         $17,000,000 outstanding at any time;

                  (g) unsecured Indebtedness of the Borrower or any Subsidiary
         not otherwise permitted by this Section 9.1, provided that the
         aggregate amount of such Indebtedness permitted by this Section 9.1(g)
         does not exceed $5,000,000 outstanding at any time; and

                  (g) unsecured Indebtedness in respect of any Derivative
         Contracts, provided that such Derivative Contracts are entered into in
         the ordinary course of business and not for speculative purposes.

         9.2. RESTRICTIONS ON LIENS. The Borrower will not, and will not permit
any of its Subsidiaries to, (a) create or incur or suffer to be created or
incurred or to exist any lien, encumbrance, mortgage, pledge, charge,
restriction or other security interest of any kind upon any of its property or
assets of any character whether now owned or hereafter acquired, or upon the
income or profits therefrom; (b) transfer any of such property or assets or the
income or profits therefrom for the purpose of subjecting the same to the
payment of Indebtedness or performance of any other obligation in priority to
payment of its general creditors; (c) acquire, or agree or have an option to
acquire, any property or assets upon conditional sale or other title retention
or purchase money security agreement, device or arrangement; (d) suffer to exist
for a period of more than thirty (30) days after the same shall have been
incurred any Indebtedness or claim or demand against it that if unpaid might by
law or upon bankruptcy or insolvency, or otherwise, be given any priority
whatsoever over its general creditors; or (e) sell, assign, pledge or otherwise
transfer any "receivables" as defined in clause (g) of the definition of the
term "Indebtedness," with or without recourse; provided that the Borrower or any
of its Subsidiaries may create or incur or suffer to be created or incurred or
to exist:

                  (a) liens in favor of the Borrower on all or part of the
         assets of Subsidiaries of the Borrower securing Indebtedness owing by
         Subsidiaries of the Borrower to the Borrower;

                  (b) liens to secure taxes, assessments and other government
         charges in respect of obligations not overdue or liens on properties to
         secure claims for labor, material or supplies in respect of obligations
         not overdue;

                  (c) deposits or pledges made in connection with, or to secure
         payment of, workmen's compensation, unemployment insurance, old age
         pensions or other social security obligations;
<PAGE>   46
                                      -40-

                  (d) liens on properties in respect of judgments or awards that
         have been in force for less than the applicable period for taking an
         appeal so long as execution is not levied thereunder or in respect of
         which the Borrower or such Subsidiary shall at the time in good faith
         be prosecuting an appeal or proceedings for review and in respect of
         which a stay of execution shall have been obtained pending such appeal
         or review;

                  (e) liens of carriers, warehousemen, mechanics and
         materialmen, and other like liens on properties in existence less than
         120 days from the date of creation thereof in respect of obligations
         not overdue;

                  (f) encumbrances on Real Estate consisting of easements,
         rights of way, zoning restrictions, restrictions on the use of real
         property and defects and irregularities in the title thereto,
         landlord's or lessor's liens under leases to which the Borrower or a
         Subsidiary of the Borrower is a party, and other minor liens or
         encumbrances none of which in the opinion of the Borrower interferes
         materially with the use of the property affected in the ordinary
         conduct of the business of the Borrower and its Subsidiaries, which
         defects do not individually or in the aggregate have a materially
         adverse effect on the business of the Borrower individually or of the
         Borrower and its Subsidiaries on a consolidated basis;

                  (g) liens existing on the date hereof and listed on Schedule
         9.2 hereto; and

                  (h) purchase money security interests in or purchase money
         mortgages on real or personal property acquired after the date hereof
         to secure purchase money Indebtedness of the type and amount permitted
         by Section 9.1(c), incurred in connection with the acquisition of such
         property, which security interests or mortgages cover only the real or
         personal property so acquired.

         9.3. RESTRICTIONS ON INVESTMENTS. The Borrower will not, and will not
permit any of its Subsidiaries to, make or permit to exist or to remain
outstanding any Investment except Investments in:

                  (a) marketable direct or guaranteed obligations of the United
         States of America or any OECD country that mature within one (1) year
         from the date of purchase by the Borrower;

                  (b) demand deposits, certificates of deposit, bankers
         acceptances and time deposits of United States banks or any other
         commercial banks organized under the laws of any other country which is
         a member of the OECD having total assets in excess of $1,000,000,000;

                  (c) securities commonly known as "commercial paper" issued by
         a corporation organized and existing under the laws of the United
         States of America or any state thereof or any OECD country that at the
         time of purchase have been rated and the ratings for which are not less
         than "P 1" if rated by Moody's Investors Service, Inc., and not less
         than "A 1" if rated by Standard and Poor's Rating Group;

                  (d) Investments existing on the date hereof and listed on
         Schedule 9.3 hereto;

                  (e) Investments with respect to Indebtedness permitted by
         Section 9.1(e) so long as such entities remain Subsidiaries of the
         Borrower and remain Guarantors;
<PAGE>   47
                                      -41-

                  (f) Investments consisting of the Guaranty or Investments by
         the Borrower or any Guarantor in Subsidiaries of the Borrower which are
         also Guarantors; and

                  (g) Investments consisting of promissory notes received as
         proceeds of asset dispositions permitted by Section 9.5.2.

         9.4. RESTRICTED PAYMENTS. Neither the Borrower nor any Subsidiary will
make any Restricted Payment, provided, however, notwithstanding anything to the
contrary contained in this Credit Agreement, so long as no Default or Event of
Default has occurred and is continuing or would exist as a result thereof, (a)
any Subsidiary of the Borrower shall be permitted to make a Restricted Payment
to the Borrower or a Guarantor, (b) the Borrower shall be permitted to make the
Cabot Dividend, (c) the Borrower shall be permitted Restricted Payments to Cabot
Corporation pursuant to the terms of the various agreements between the Borrower
and Cabot Corporation, as described in the preliminary prospectus relating to
the IPO dated March 15, 2000 (under the section entitled "Relationship between
our Company and Cabot Corporation"), which agreements are in place on or before
the date of the completion of the IPO; and (d) the Borrower shall be permitted
to make Distributions (including, without limitation, any repurchase by the
Borrower of any of its capital stock so long as such purchase price is not
greater than the fair market value of such capital stock), provided, that the
aggregate amount of such Distributions made over the life of this Credit
Agreement does not exceed the amount equal to the lesser of (i) fifty percent
(50%) of the Consolidated Net Income of the Borrower and its Subsidiaries
(calculated on a cumulative basis from the Closing Date through and including
the date of any such Distribution) and (ii) $25,000,000.

         9.5.  MERGER, CONSOLIDATION AND DISPOSITION OF ASSETS.

                  9.5.1. MERGERS AND ACQUISITIONS. The Borrower will not, and
         will not permit any of its Subsidiaries to, become a party to any
         merger or consolidation, or agree to or effect any asset acquisition or
         stock acquisition (other than the acquisition of assets in the ordinary
         course of business consistent with past practices) except (a) the
         merger or consolidation of one or more of the Subsidiaries of the
         Borrower with and into the Borrower, (b) the merger or consolidation of
         two or more Subsidiaries of the Borrower provided, however, to the
         extent any Subsidiary is a Guarantor, the survivor of such merger or
         consolidation shall be a Guarantor; and (c) any merger or asset or
         stock acquisition by the Borrower or any of its Subsidiaries of Persons
         in the same or similar line of business as the Borrower, or such
         Person's line of business is incidental to the Borrower's existing line
         of business (a "Permitted Acquisition") where (i) the Borrower has
         provided the Agent with written notice of such Permitted Acquisition,
         which notice shall include a reasonably detailed description of such
         Permitted Acquisition; (ii) the business to be acquired would not
         subject the Agent or the Banks to any additional regulatory or third
         party approvals in connection with the exercise of its rights and
         remedies under this Credit Agreement or any other Loan Document; (iii)
         any Indebtedness incurred or assumed in connection with such Permitted
         Acquisition shall have been permitted to be incurred or assumed
         pursuant to Section 9.1 hereof; (iv) the Borrower has provided the
         Agent with such other information as was reasonably requested by the
         Agent; (v) after the consummation of the Permitted Acquisition, to the
         extent such acquisition was a stock acquisition, either (A) the Person
         so acquired is merged with and into the Borrower or its Subsidiary,
         with the Borrower or such Subsidiary, as the case may be, being the
         survivor of such merger or (B) to the extent such Person is not merged
         with and into the Borrower or a Subsidiary, such Person shall become a
         Guarantor hereunder to the extent such Person is a Domestic Subsidiary;
         (vi) the aggregate amount of the Purchase Price for all Permitted
         Acquisitions (or series of related acquisitions) shall not exceed
         $60,000,000 during the life of the Credit Agreement and, in addition
         the aggregate amount of the Purchase Price for all Permitted
         Acquisitions (or series of related acquisitions) which are payable in
         anything other than the capital stock of the Borrower shall not exceed
         $30,000,000 in the aggregate; (vii) no more than $15,000,000 in the
         aggregate of the Purchase Price for all Permitted Acquisitions (or
<PAGE>   48
                                      -42-

         series of related acquisitions) may be funded with borrowings
         hereunder; (viii) the board of directors and the shareholders (if
         required by applicable law), or the equivalent, of each of the Borrower
         and the Person to be acquired has approved such merger, consolidation
         or acquisition and such Permitted Acquisition is otherwise considered
         "friendly"; (ix) no Default or Event of Default has occurred and is
         continuing hereunder or will occur as a result of the Permitted
         Acquisition; (x) the Borrower has demonstrated to the satisfaction of
         the Agent that the Borrower is in compliance, on a pro forma basis,
         with the financial covenants contained in Section 10 hereof both before
         and after giving effect to such Permitted Acquisition; and (xi) the
         Borrower has delivered to the Agent a certificate of the chief
         financial officer of the Borrower to the effect that (A) the Borrower
         and its Subsidiaries, on a consolidated and consolidating basis, will
         be solvent upon the consummation of the Permitted Acquisition; (B) the
         pro forma Compliance Certificate fairly presents the financial
         condition of the Borrower and its Subsidiaries as of the date thereof
         and after giving effect to such Permitted Acquisition; and (C) no
         Default or Event of Default then exists or would result after giving
         effect to the Permitted Acquisition. For purposes of this Section
         9.5.1, the Purchase Price shall be defined as the aggregate amount of
         consideration paid by the Borrower to the seller on the closing date of
         any Permitted Acquisition (including, without limitation, the aggregate
         amount of all potential earn-out payments and the aggregate amount of
         Indebtedness incurred or assumed in connection therewith regardless of
         the maturity date thereof). In addition, when valuing the capital stock
         component of the Purchase Price, the value of the Borrower's capital
         stock shall be valued in the manner consistent with the purchase
         agreement pertaining to the Permitted Acquisition, and, to the extent
         no such purchase agreement exists, or a valuation method is not
         detailed therein, then the value shall equal the average of the fair
         market value of the Borrower's capital stock for the ten (10) Business
         Days immediately preceding the date on which such Permitted Acquisition
         is consummated.

         In the event any new Domestic Subsidiary is formed or acquired as a
result of or in connection with any acquisition, the Loan Documents shall be
amended and/or supplemented as necessary to make the terms and conditions of the
Loan Documents applicable to such Domestic Subsidiary. Such Domestic Subsidiary
shall, immediately upon its formation, creation or acquisition, become a
Guarantor hereunder and shall execute and deliver to the Agent a Guaranty.

                  9.5.2. DISPOSITION OF ASSETS. The Borrower will not, and will
         not permit any of its Subsidiaries to, become a party to or agree to or
         effect any disposition of assets, other than (a) the sale of inventory,
         the licensing of intellectual property and the disposition of obsolete
         assets, in each case in the ordinary course of business consistent with
         past practices and (b) the disposition or other transfer of assets from
         the Borrower to any wholly-owned Domestic Subsidiary (which such
         Domestic Subsidiary complying with the conditions set forth in
         Section 8.14 hereof).

         9.6. SALE AND LEASEBACK. Except as permitted by Section 9.5.1, the
Borrower will not, and will not permit any of its Subsidiaries to, enter into
any arrangement, directly or indirectly, whereby the Borrower or any Subsidiary
of the Borrower shall sell or transfer any property owned by it in order then or
thereafter to lease such property or lease other property that the Borrower or
any Subsidiary of the Borrower intends to use for substantially the same purpose
as the property being sold or transferred.

         9.7. COMPLIANCE WITH ENVIRONMENTAL LAWS. The Borrower will not, and
will not permit any of its Subsidiaries to, (a) use any of the Real Estate or
any portion thereof for the handling, processing, storage or disposal of
Hazardous Substances, (b) cause or permit to be located on any of the Real
Estate
<PAGE>   49
                                      -43-

any underground tank or other underground storage receptacle for Hazardous
Substances, (c) generate any Hazardous Substances on any of the Real Estate, (d)
conduct any activity at any Real Estate or use any Real Estate in any manner so
as to cause a release (i.e. releasing, spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, disposing or
dumping) or threatened release of Hazardous Substances on, upon or into the Real
Estate or (e) otherwise conduct any activity at any Real Estate or use any Real
Estate in any manner that would violate any Environmental Law or bring such Real
Estate in violation of any Environmental Law.

         9.8. EMPLOYEE BENEFIT PLANS. Neither the Borrower nor any ERISA
Affiliate will

                  (a) engage in any "prohibited transaction" within the meaning
         of Section 406 of ERISA or Section 4975 of the Code which could result
         in a material liability for the Borrower or any of its Subsidiaries; or

                  (b) permit any Guaranteed Pension Plan to incur an
         "accumulated funding deficiency", as such term is defined in Section
         302 of ERISA, whether or not such deficiency is or may be waived; or

                  (c) fail to contribute to any Guaranteed Pension Plan to an
         extent which, or terminate any Guaranteed Pension Plan in a manner
         which, could result in the imposition of a lien or encumbrance on the
         assets of the Borrower or any of its Subsidiaries pursuant to
         Section 302(f) or Section 4068 of ERISA; or

                  (d) amend any Guaranteed Pension Plan in circumstances
         requiring the posting of security pursuant to Section 307 of ERISA or
         Section 401(a)(29) of the Code; or

                  (e) permit or take any action which would result in the
         aggregate benefit liabilities (with the meaning of Section 4001 of
         ERISA) of all Guaranteed Pension Plans exceeding the value of the
         aggregate assets of such Plans, disregarding for this purpose the
         benefit liabilities and assets of any such Plan with assets in excess
         of benefit liabilities.

         9.9. BUSINESS ACTIVITIES. The Borrower will not, and will not permit
any of its Subsidiaries to, engage directly or indirectly (whether through
Subsidiaries or otherwise) in any type of business other than the businesses
conducted by them on the Closing Date and in related businesses.

         9.10. FISCAL YEAR. The Borrower will not, and will not permit any of it
Subsidiaries to, change the date of the end of its fiscal year from that set
forth in Section 7.4.1.

         9.11. TRANSACTIONS WITH AFFILIATES. Except in respect of the agreements
between the Borrower and Cabot Corporation described in section 9.4(c) hereof,
the Borrower will not, and will not permit any of its Subsidiaries to, engage in
any transaction with any Affiliate (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
such Affiliate or, to the knowledge of the Borrower, any corporation,
partnership, trust or other entity in which any such Affiliate has a substantial
interest or is an officer, director, trustee or partner, on terms more favorable
to such Person than would have been obtainable on an arm's-length basis in the
ordinary course of business.

         9.12. UPSTREAM LIMITATIONS. The Borrower will not, and will not permit
any of its Subsidiaries to, enter into any agreement, contract or arrangement
(other than the Credit Agreement and the other
<PAGE>   50
                                      -44-

Loan Documents) restricting the ability of any Subsidiary to pay or make
dividends or distributions in cash or kind to the Borrower, to make loans,
advances or other payments of whatsoever nature to the Borrower, or to make
transfer or distributions of all or any part of its assets to the Borrower.

         9.13. INCONSISTENT AGREEMENTS. The Borrower will not, and will not
permit any of its Subsidiaries to, enter into any agreement containing any
provision which would be violated or breached by the performance by the Borrower
or any of its Subsidiaries of their respective obligations hereunder or under
any of the Loan Documents.

         9.14. MODIFICATION OF DOCUMENTS. The Borrower will not, nor will it
permit any of its Subsidiaries to, consent to or agree to any amendment,
supplement or other modification to the Capitalization Documents or the LaSalle
Loan Documents without the prior written consent of the Agent unless such
amendment, supplement or modification would not have any material adverse effect
on the Agent's or the Bank's rights under the Loan Documents or the Borrower's
or any of its Subsidiaries' obligations under the Loan Documents.

                    10. FINANCIAL COVENANTS OF THE BORROWER.

         The Borrower covenants and agrees that, so long as any Loan, Unpaid
Reimbursement Obligation, Letter of Credit or Note is outstanding or any Bank
has any obligation to make any Loans or the Agent has any obligation to issue,
extend or renew any Letters of Credit:

         10.1. LEVERAGE RATIO. The Borrower will not at any time permit the
Leverage Ratio to exceed 2.25:1.00.

         10.2. QUARTERLY NET INCOME. The Borrower will not permit Consolidated
Net Income (or Deficit) (a) for any single fiscal quarter to be greater than
($7,500,000) and (b) for any two (2) consecutive fiscal quarters to be greater
than ($10,000,000).

         10.3. DEBT SERVICE COVERAGE RATIO. The Borrower will not permit the
Debt Service Coverage Ratio as at the end of any fiscal quarter for the
Reference Period ending on such date to be less than 3.00:1.00.

         10.4. QUICK RATIO. The Borrower will not permit the Quick Ratio to be
less than 1.25:1.00 at any time.

                             11. CLOSING CONDITIONS.

         The obligations of the Banks to make the initial Loans and of the Agent
to issue any initial Letters of Credit shall be subject to the satisfaction of
the following conditions precedent on or prior to the Closing Date:

         11.1. LOAN DOCUMENTS. Each of the Loan Documents shall have been duly
executed and delivered by the respective parties thereto, shall be in full force
and effect and shall be in form and substance satisfactory to each of the Banks.
Each Bank shall have received a fully executed copy of each such document.

         11.2. CERTIFIED COPIES OF CHARTER DOCUMENTS. Each of the Banks shall
have received from the Borrower and each Guarantor a copy, certified by a duly
authorized officer of such Person to be true and
<PAGE>   51
                                      -45-

complete on the Closing Date, of each of (a) its charter or other incorporation
documents as in effect on such date of certification, and (b) its by-laws as in
effect on such date.

         11.3. CORPORATE ACTION. All corporate action necessary for the valid
execution, delivery and performance by the Borrower and each of the Guarantors
of this Credit Agreement and the other Loan Documents to which it is or is to
become a party shall have been duly and effectively taken, and evidence thereof
satisfactory to the Banks shall have been provided to each of the Banks.

         11.4. INCUMBENCY CERTIFICATE. Each of the Banks shall have received
from the Borrower and each Guarantor an incumbency certificate, dated as of the
Closing Date, signed by a duly authorized officer of the Borrower or such
Guarantor, and giving the name and bearing a specimen signature of each
individual who shall be authorized: (a) to sign, in the name and on behalf of
each of the Borrower of such Guarantor, each of the Loan Documents to which the
Borrower or such Guarantor is or is to become a party; (b) in the case of the
Borrower, to make Loan Requests and Conversion Requests and to apply for Letters
of Credit; and (c) to give notices and to take other action on its behalf under
the Loan Documents.

         11.5. UCC SEARCH RESULTS. The Agent shall have received from each of
the Borrower and its Subsidiaries the results of UCC searches, indicating no
liens other than Permitted Liens and otherwise in form and substance
satisfactory to the Agent.

         11.6. CERTIFICATES OF INSURANCE. The Agent shall have received a
certificate of insurance from an independent insurance broker dated as of the
Closing Date, identifying insurers, types of insurance, insurance limits, and
policy terms.

         11.7. SOLVENCY CERTIFICATE. Each of the Banks shall have received an
officer's certificate of the Borrower dated as of the Closing Date as to the
solvency of the Borrower and its Subsidiaries following the consummation of the
transactions contemplated herein and in form and substance satisfactory to the
Banks.

         11.8. AUDITED FINANCIALS. The Agent shall have received from the
Borrower, the consolidated balance sheet of the Borrower and its Subsidiaries
for the fiscal year ended September 30, 1999, and the related consolidated
statement of income and statement of cash flow for such year, such financials to
be in reasonable detail, prepared in accordance with generally accepted
accounting principles and certified without qualification by
PricewaterhouseCoopers LLP.

         11.9. COMPLETION OF IPO. The IPO shall have been completed on terms and
conditions satisfactory to the Agent.

         11.10. PRO FORMA BALANCE SHEET. The Agent shall have received from the
Borrower, a pro forma balance sheet demonstrating that on the Closing Date, on a
pro forma basis after giving effect to the IPO, and after giving effect to the
borrowings hereunder, Indebtedness of the Borrower is less than $22,000,000.

         11.11. OPINION OF COUNSEL. Each of the Banks and the Agent shall have
received a favorable legal opinion addressed to the Banks and the Agent, dated
as of the Closing Date, in form and substance satisfactory to the Banks and the
Agent, from counsel to the Borrower and its Subsidiaries.

         11.12. PAYMENT OF FEES. The Borrower shall have paid to the Banks or
the Agent, as appropriate, the closing fees pursuant to Section 5.1
<PAGE>   52
                                      -46-

                        12. CONDITIONS TO ALL BORROWINGS.

         The obligations of the Banks to make any Loan, including the initial
Loan, and of the Agent to issue, extend or renew any Letter of Credit, in each
case whether on or after the Closing Date, shall also be subject to the
satisfaction of the following conditions precedent:

         12.1. REPRESENTATIONS TRUE; NO EVENT OF DEFAULT. Each of the
representations and warranties of any of the Borrower and its Subsidiaries
contained in this Credit Agreement, the other Loan Documents or in any document
or instrument delivered pursuant to or in connection with this Credit Agreement
shall be true as of the date as of which they were made and shall also be true
at and as of the time of the making of such Loan or the issuance, extension or
renewal of such Letter of Credit, with the same effect as if made at and as of
that time (except to the extent of changes resulting from transactions
contemplated or permitted by this Credit Agreement and the other Loan Documents
and changes occurring in the ordinary course of business that singly or in the
aggregate are not materially adverse, and to the extent that such
representations and warranties relate expressly to an earlier date) and no
Default or Event of Default shall have occurred and be continuing.

         12.2. NO LEGAL IMPEDIMENT. No change shall have occurred in any law or
regulations thereunder or interpretations thereof that in the reasonable opinion
of any Bank would make it illegal for such Bank to make such Loan or to
participate in the issuance, extension or renewal of such Letter of Credit or in
the reasonable opinion of the Agent would make it illegal for the Agent to
issue, extend or renew such Letter of Credit.

         12.3. GOVERNMENTAL REGULATION. Each Bank shall have received such
statements in substance and form reasonably satisfactory to such Bank as such
Bank shall require for the purpose of compliance with any applicable regulations
of the Comptroller of the Currency or the Board of Governors of the Federal
Reserve System.

         12.4. PROCEEDINGS AND DOCUMENTS. All proceedings in connection with the
transactions contemplated by this Credit Agreement, the other Loan Documents and
all other documents incident thereto shall be satisfactory in substance and in
form to the Banks and to the Agent and the Agent's Special Counsel, and the
Banks, the Agent and such counsel shall have received all information and such
counterpart originals or certified or other copies of such documents as the
Agent may reasonably request.

                    13. EVENTS OF DEFAULT; ACCELERATION; ETC.

         13.1. EVENTS OF DEFAULT AND ACCELERATION. If any of the following
events ("Events of Default" or, if the giving of notice or the lapse of time or
both is required, then, prior to such notice or lapse of time, "Defaults") shall
occur:

                  (a) the Borrower shall fail to pay any principal of the Loans
         or any Reimbursement Obligation when the same shall become due and
         payable, whether at the stated date of maturity or any accelerated date
         of maturity or at any other date fixed for payment;

                  (b) the Borrower shall fail to pay any interest on the Loans,
         the Commitment Fee, any Letter of Credit Fee, the Agent's fee, or other
         sums due hereunder or under any of the other Loan Documents, within
         three (3) days of when the same shall become due and payable, whether
         at the stated date of maturity or any accelerated date of maturity or
         at any other date fixed for payment;

<PAGE>   53
                                      -47-

                  (c) the Borrower shall fail to comply with any of its
         covenants contained in Section 8.1, 8.3, 8.4, 8.5.1, 8.6, 8.9, 8.12,
         8.13, 8.14, 8.15, 9 and 10;

                  (d) the Borrower or any of its Subsidiaries shall fail to
         perform any term, covenant or agreement contained herein or in any of
         the other Loan Documents (other than those specified elsewhere in this
         Section 13.1) for fifteen (15) days after written notice of such
         failure has been given to the Borrower by the Agent;

                  (e) any representation or warranty of the Borrower or any of
         its Subsidiaries in this Credit Agreement or any of the other Loan
         Documents or in any other document or instrument delivered pursuant to
         or in connection with this Credit Agreement shall prove to have been
         false in any material respect upon the date when made or deemed to have
         been made or repeated;

                  (f) the Borrower or any of its Subsidiaries shall fail to pay
         at maturity, or within any applicable period of grace, any obligation
         for borrowed money or credit received or in respect of any Capitalized
         Leases in an amount in excess of $5,000,000, or fail to observe or
         perform any material term, covenant or agreement contained in any
         agreement by which it is bound, evidencing or securing borrowed money
         or credit received or in respect of any Capitalized Leases in an amount
         in excess of $5,000,000, for such period of time as would permit
         (assuming the giving of appropriate notice if required) the holder or
         holders thereof or of any obligations issued thereunder to accelerate
         the maturity thereof, or any such holder or holders shall rescind or
         shall have a right to rescind the purchase of any such obligations;

                  (g) the Borrower or any of its Subsidiaries shall make an
         assignment for the benefit of creditors, or admit in writing its
         inability to pay or generally fail to pay its debts as they mature or
         become due, or shall petition or apply for the appointment of a trustee
         or other custodian, liquidator or receiver of the Borrower or any of
         its Subsidiaries or of any substantial part of the assets of the
         Borrower or any of its Subsidiaries or shall commence any case or other
         proceeding relating to the Borrower or any of its Subsidiaries under
         any bankruptcy, reorganization, arrangement, insolvency, readjustment
         of debt, dissolution or liquidation or similar law of any jurisdiction,
         now or hereafter in effect, or shall take any action to authorize or in
         furtherance of any of the foregoing, or if any such petition or
         application shall be filed or any such case or other proceeding shall
         be commenced against the Borrower or any of its Subsidiaries and the
         Borrower or any of its Subsidiaries shall indicate its approval
         thereof, consent thereto or acquiescence therein or such petition or
         application shall not have been dismissed within forty-five (45) days
         following the filing thereof;

                  (h) a decree or order is entered appointing any such trustee,
         custodian, liquidator or receiver or adjudicating the Borrower or any
         of its Subsidiaries bankrupt or insolvent, or approving a petition in
         any such case or other proceeding, or a decree or order for relief is
         entered in respect of the Borrower or any Subsidiary of the Borrower in
         an involuntary case under federal bankruptcy laws as now or hereafter
         constituted;

                  (i) there shall remain in force, undischarged, unsatisfied and
         unstayed, for more than thirty days, whether or not consecutive, any
         final judgment against the Borrower or any of its Subsidiaries that,
         with other outstanding final judgments, undischarged, against the
         Borrower or any of its Subsidiaries exceeds in the aggregate
         $5,000,000;
<PAGE>   54
                                      -48-

                  (j) if any of the Loan Documents shall be cancelled,
         terminated, revoked or rescinded otherwise than in accordance with the
         terms thereof or with the express prior written agreement, consent or
         approval of the Banks, or any action at law, suit or in equity or other
         legal proceeding to cancel, revoke or rescind any of the Loan Documents
         shall be commenced by or on behalf of the Borrower or any of its
         Subsidiaries party thereto or any of their respective stockholders, or
         any court or any other governmental or regulatory authority or agency
         of competent jurisdiction shall make a determination that, or issue a
         judgment, order, decree or ruling to the effect that, any one or more
         of the Loan Documents is illegal, invalid or unenforceable in
         accordance with the terms thereof;

                  (k) the Borrower or any ERISA Affiliate incurs any liability
         to the PBGC or a Guaranteed Pension Plan pursuant to Title IV of ERISA
         in an aggregate amount exceeding $5,000,000, or the Borrower or any
         ERISA Affiliate is assessed withdrawal liability pursuant to Title IV
         of ERISA by a Multiemployer Plan requiring aggregate annual payments
         exceeding $5,000,000, or any of the following occurs with respect to a
         Guaranteed Pension Plan: (i) an ERISA Reportable Event, or a failure to
         make a required installment or other payment (within the meaning of
         Section 302(f)(1) of ERISA), provided that the Agent determines in its
         reasonable discretion that such event (A) could be expected to result
         in liability of the Borrower or any of its Subsidiaries to the PBGC or
         such Guaranteed Pension Plan in an aggregate amount exceeding
         $5,000,000 and (B) could constitute grounds for the termination of such
         Guaranteed Pension Plan by the PBGC, for the appointment by the
         appropriate United States District Court of a trustee to administer
         such Guaranteed Pension Plan or for the imposition of a lien in favor
         of such Guaranteed Pension Plan; or (ii) the appointment by a United
         States District Court of a trustee to administer such Guaranteed
         Pension Plan; or (iii) the institution by the PBGC of proceedings to
         terminate such Guaranteed Pension Plan;

                  (l) the Borrower or any of its Subsidiaries shall be enjoined,
         restrained or in any way prevented by the order of any court or any
         administrative or regulatory agency from conducting any material part
         of its business and such order shall continue in effect for more than
         thirty (30) days;

                  (m) there shall occur any material damage to, or loss, theft
         or destruction of, any Collateral, whether or not insured, or any
         strike, lockout, labor dispute, embargo, condemnation, act of God or
         public enemy, or other casualty, which in any such case causes, for
         more than fifteen (15) consecutive days, the cessation or substantial
         curtailment of revenue producing activities at any facility of the
         Borrower or any of its Subsidiaries if such event or circumstance is
         not covered by business interruption insurance and would have a
         material adverse effect on the business or financial condition of the
         Borrower or such Subsidiary;

                  (n) there shall occur the loss, suspension or revocation of,
         or failure to renew, any license or permit now held or hereafter
         acquired by the Borrower or any of its Subsidiaries if such loss,
         suspension, revocation or failure to renew would have a material
         adverse effect on the business or financial condition of the Borrower
         or such Subsidiary;

                  (o) the Borrower or any of its Subsidiaries shall be indicted
         for a state or federal crime, or any civil or criminal action shall
         otherwise have been brought or threatened against the Borrower or any
         of its Subsidiaries, a punishment for which in any such case could
         include the
<PAGE>   55
                                      -49-

         forfeiture of any assets of the Borrower or such Subsidiary having a
         fair market value in excess of $5,000,000; or

                  (p) any person or group of persons (within the meaning of
         Section 13 or 14 of the Securities Exchange Act of 1934, as amended)
         other than Cabot Corporation shall have acquired beneficial ownership
         (within the meaning of Rule 13d-3 promulgated by the Securities and
         Exchange Commission under said Act) of 20% or more of the outstanding
         shares of common stock of the Borrower; or, during any period of twelve
         consecutive calendar months, individuals who were directors of the
         Borrower on the first day of such period shall cease to constitute a
         majority of the board of directors of the Borrower;

then, and in any such event, so long as the same may be continuing, the Agent
may, and upon the request of the Majority Banks shall, by notice in writing to
the Borrower declare all amounts owing with respect to this Credit Agreement,
the Notes and the other Loan Documents and all Reimbursement Obligations to be,
and they shall thereupon forthwith become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by the Borrower; provided that in the event of any Event
of Default specified in Section 13.1(g) or 13.1(h), all such amounts shall
become immediately due and payable automatically and without any requirement of
notice from the Agent or any Bank.

         13.2. TERMINATION OF COMMITMENTS. If any one or more of the Events of
Default specified in Section 13.1(g) or Section 13.1(h) shall occur, any unused
portion of the credit hereunder shall forthwith terminate and each of the Banks
shall be relieved of all further obligations to make Loans to the Borrower and
the Agent shall be relieved of all further obligations to issue, extend or renew
Letters of Credit. If any other Event of Default shall have occurred and be
continuing, or if on any Drawdown Date or other date for issuing, extending or
renewing any Letter of Credit the conditions precedent to the making of the
Loans to be made on such Drawdown Date or (as the case may be) to issuing,
extending or renewing such Letter of Credit on such other date are not
satisfied, the Agent may and, upon the request of the Majority Banks, shall, by
notice to the Borrower, terminate the unused portion of the credit hereunder,
and upon such notice being given such unused portion of the credit hereunder
shall terminate immediately and each of the Banks shall be relieved of all
further obligations to make Loans and the Agent shall be relieved of all further
obligations to issue, extend or renew Letters of Credit. No termination of the
credit hereunder shall relieve the Borrower or any of its Subsidiaries of any of
the Obligations.

         13.3. REMEDIES. In case any one or more of the Events of Default shall
have occurred and be continuing, and whether or not the Banks shall have
accelerated the maturity of the Loans pursuant to Section 13.1, each Bank, if
owed any amount with respect to the Loans or the Reimbursement Obligations, may,
with the consent of the Majority Banks but not otherwise, proceed to protect and
enforce its rights by suit in equity, action at law or other appropriate
proceeding, whether for the specific performance of any covenant or agreement
contained in this Credit Agreement and the other Loan Documents or any
instrument pursuant to which the Obligations to such Bank are evidenced,
including as permitted by applicable law the obtaining of the ex parte
appointment of a receiver, and, if such amount shall have become due, by
declaration or otherwise, proceed to enforce the payment thereof or any other
legal or equitable right of such Bank. No remedy herein conferred upon any Bank
or the Agent or the holder of any Note or purchaser of any Letter of Credit
Participation is intended to be exclusive of any other remedy and each and every
remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute or any
other provision of law.
<PAGE>   56
                                      -50-

         13.4. DISTRIBUTION OF PROCEEDS. In the event that, following the
occurrence or during the continuance of any Default or Event of Default, the
Agent or any Bank, as the case may be, receives any monies in connection with
the enforcement of its rights hereunder or under any of the other Loan
Documents, such monies shall be distributed for application as follows:

                  (a) First, to the payment of, or (as the case may be) the
         reimbursement of the Agent for or in respect of all reasonable costs,
         expenses, disbursements and losses which shall have been incurred or
         sustained by the Agent in connection with the collection of such monies
         by the Agent, for the exercise, protection or enforcement by the Agent
         of all or any of the rights, remedies, powers and privileges of the
         Agent under this Credit Agreement or any of the other Loan Documents or
         in support of any provision of adequate indemnity to the Agent against
         any taxes or liens which by law shall have, or may have, priority over
         the rights of the Agent to such monies;

                  (b) Second, to all other Obligations in such order or
         preference as the Majority Banks may determine; provided, however, that
         (i) distributions shall be made with respect to each type of Obligation
         owing to the Banks, such as interest, principal, fees and expenses,
         among the Banks pro rata, and (ii) the Agent may in its discretion make
         proper allowance to take into account any Obligations not then due and
         payable;

                  (c) Third, upon payment and satisfaction in full or other
         provisions for payment in full satisfactory to the Banks and the Agent
         of all of the Obligations, to the payment of any obligations required
         to be paid pursuant to Section 9-504(1)(c) of the Uniform Commercial
         Code of the Commonwealth of Massachusetts; and

                  (d) Fourth, the excess, if any, shall be returned to the
         Borrower or to such other Persons as are entitled thereto.

                                   14. SETOFF.

         During the continuance of any Event of Default, any deposits or other
sums credited by or due from any of the Banks to the Borrower and any securities
or other property of the Borrower in the possession of such Bank may be applied
to or set off by such Bank against the payment of Obligations and any and all
other liabilities, direct, or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising, of the Borrower to such Bank. Each of
the Banks agrees with each other Bank that (a) if an amount to be set off is to
be applied to Indebtedness of the Borrower to such Bank, other than Indebtedness
evidenced by the Notes held by such Bank or constituting Reimbursement
Obligations owed to such Bank, such amount shall be applied ratably to such
other Indebtedness and to the Indebtedness evidenced by all such Notes held by
such Bank or constituting Reimbursement Obligations owed to such Bank, and (b)
if such Bank shall receive from the Borrower, whether by voluntary payment,
exercise of the right of setoff, counterclaim, cross action, enforcement of the
claim evidenced by the Notes held by, or constituting Reimbursement Obligations
owed to, such Bank by proceedings against the Borrower at law or in equity or by
proof thereof in bankruptcy, reorganization, liquidation, receivership or
similar proceedings, or otherwise, and shall retain and apply to the payment of
the Note or Notes held by, or Reimbursement Obligations owed to, such Bank any
amount in excess of its ratable portion of the payments received by all of the
Banks with respect to the Notes held by, and Reimbursement Obligations owed to,
all of the Banks, such Bank will make such disposition and arrangements with the
other Banks with respect to such excess, either by way of distribution, pro
tanto assignment of claims, subrogation or otherwise as shall result in each
Bank receiving in respect of the
<PAGE>   57
                                      -51-

Notes held by it or Reimbursement obligations owed it, its proportionate payment
as contemplated by this Credit Agreement; provided that if all or any part of
such excess payment is thereafter recovered from such Bank, such disposition and
arrangements shall be rescinded and the amount restored to the extent of such
recovery, but without interest.

                                 15. THE AGENT.

         15.1.  AUTHORIZATION.

                  (a) The Agent is authorized to take such action on behalf of
         each of the Banks and to exercise all such powers as are hereunder and
         under any of the other Loan Documents and any related documents
         delegated to the Agent, together with such powers as are reasonably
         incident thereto, provided that no duties or responsibilities not
         expressly assumed herein or therein shall be implied to have been
         assumed by the Agent.

                  (b) The relationship between the Agent and each of the Banks
         is that of an independent contractor. The use of the term "Agent" is
         for convenience only and is used to describe, as a form of convention,
         the independent contractual relationship between the Agent and each of
         the Banks. Nothing contained in this Credit Agreement nor the other
         Loan Documents shall be construed to create an agency, trust or other
         fiduciary relationship between the Agent and any of the Banks.

                  (c) As an independent contractor empowered by the Banks to
         exercise certain rights and perform certain duties and responsibilities
         hereunder and under the other Loan Documents, the Agent is nevertheless
         a "representative" of the Banks, as that term is defined in Article 1
         of the Uniform Commercial Code, for purposes of actions for the benefit
         of the Banks and the Agent with respect to all collateral security and
         guaranties contemplated by the Loan Documents. Such actions include the
         designation of the Agent as "secured party", "mortgagee" or the like on
         all financing statements and other documents and instruments, whether
         recorded or otherwise, relating to the attachment, perfection, priority
         or enforcement of any security interests, mortgages or deeds of trust
         in collateral security intended to secure the payment or performance of
         any of the Obligations, all for the benefit of the Banks and the Agent.

         15.2. EMPLOYEES AND AGENTS. The Agent may exercise its powers and
execute its duties by or through employees or agents and shall be entitled to
take, and to rely on, advice of counsel concerning all matters pertaining to its
rights and duties under this Credit Agreement and the other Loan Documents. The
Agent may utilize the services of such Persons as the Agent in its sole
discretion may reasonably determine, and all reasonable fees and expenses of any
such Persons shall be paid by the Borrower.

         15.3. NO LIABILITY. Neither the Agent nor any of its shareholders,
directors, officers or employees nor any other Person assisting them in their
duties nor any agent or employee thereof, shall be liable for any waiver,
consent or approval given or any action taken, or omitted to be taken, in good
faith by it or them hereunder or under any of the other Loan Documents, or in
connection herewith or therewith, or be responsible for the consequences of any
oversight or error of judgment whatsoever, except that the Agent or such other
Person, as the case may be, may be liable for losses due to its willful
misconduct or gross negligence.

         15.4.  NO REPRESENTATIONS.
<PAGE>   58
                                      -52-

                  15.4.1. GENERAL. The Agent shall not be responsible for the
         execution or validity or enforceability of this Credit Agreement, the
         Notes, the Letters of Credit, any of the other Loan Documents or any
         instrument at any time constituting, or intended to constitute,
         collateral security for the Notes, or for the value of any such
         collateral security or for the validity, enforceability or
         collectability of any such amounts owing with respect to the Notes, or
         for any recitals or statements, warranties or representations made
         herein or in any of the other Loan Documents or in any certificate or
         instrument hereafter furnished to it by or on behalf of the Borrower or
         any of its Subsidiaries, or be bound to ascertain or inquire as to the
         performance or observance of any of the terms, conditions, covenants or
         agreements herein or in any instrument at any time constituting, or
         intended to constitute, collateral security for the Notes or to inspect
         any of the properties, books or records of the Borrower or any of its
         Subsidiaries. The Agent shall not be bound to ascertain whether any
         notice, consent, waiver or request delivered to it by the Borrower or
         any holder of any of the Notes shall have been duly authorized or is
         true, accurate and complete. The Agent has not made nor does it now
         make any representations or warranties, express or implied, nor does it
         assume any liability to the Banks, with respect to the credit
         worthiness or financial conditions of the Borrower or any of its
         Subsidiaries. Each Bank acknowledges that it has, independently and
         without reliance upon the Agent or any other Bank, and based upon such
         information and documents as it has deemed appropriate, made its own
         credit analysis and decision to enter into this Credit Agreement.

                  15.4.2. CLOSING DOCUMENTATION, ETC. For purposes of
         determining compliance with the conditions set forth in Section 11,
         each Bank that has executed this Credit Agreement shall be deemed to
         have consented to, approved or accepted, or to be satisfied with, each
         document and matter either sent, or made available, by the Agent to
         such Bank for consent, approval, acceptance or satisfaction, or
         required thereunder to be to be consent to or approved by or acceptable
         or satisfactory to such Bank, unless an officer of the Agent active
         upon the Borrower's account shall have received notice from such Bank
         prior to the Closing Date specifying such Bank's objection thereto and
         such objection shall not have been withdrawn by notice to the Agent to
         such effect on or prior to the Closing Date.

         15.5. PAYMENTS.

                  15.5.1. PAYMENTS TO AGENT. A payment by the Borrower to the
         Agent hereunder or any of the other Loan Documents for the account of
         any Bank shall constitute a payment to such Bank. The Agent agrees
         promptly to distribute to each Bank such Bank's pro rata share of
         payments received by the Agent for the account of the Banks except as
         otherwise expressly provided herein or in any of the other Loan
         Documents.

                  15.5.2. DISTRIBUTION BY AGENT. If in the opinion of the Agent
         the distribution of any amount received by it in such capacity
         hereunder, under the Notes or under any of the other Loan Documents
         might involve it in liability, it may refrain from making distribution
         until its right to make distribution shall have been adjudicated by a
         court of competent jurisdiction. If a court of competent jurisdiction
         shall adjudge that any amount received and distributed by the Agent is
         to be repaid, each Person to whom any such distribution shall have been
         made shall either repay to the Agent its proportionate share of the
         amount so adjudged to be repaid or shall pay over the same in such
         manner and to such Persons as shall be determined by such court.
<PAGE>   59
                                      -53-

                  15.5.3. DELINQUENT BANKS. Notwithstanding anything to the
         contrary contained in this Credit Agreement or any of the other Loan
         Documents, any Bank that fails (a) to make available to the Agent its
         pro rata share of any Loan or to purchase any Letter of Credit
         Participation or (b) to comply with the provisions of Section 14 with
         respect to making dispositions and arrangements with the other Banks,
         where such Bank's share of any payment received, whether by setoff or
         otherwise, is in excess of its pro rata share of such payments due and
         payable to all of the Banks, in each case as, when and to the full
         extent required by the provisions of this Credit Agreement, shall be
         deemed delinquent (a "Delinquent Bank") and shall be deemed a
         Delinquent Bank until such time as such delinquency is satisfied. A
         Delinquent Bank shall be deemed to have assigned any and all payments
         due to it from the Borrower, whether on account of outstanding Loans,
         Unpaid Reimbursement Obligations, interest, fees or otherwise, to the
         remaining nondelinquent Banks for application to, and reduction of,
         their respective pro rata shares of all outstanding Loans and Unpaid
         Reimbursement Obligations. The Delinquent Bank hereby authorizes the
         Agent to distribute such payments to the nondelinquent Banks in
         proportion to their respective pro rata shares of all outstanding Loans
         and Unpaid Reimbursement Obligations. A Delinquent Bank shall be deemed
         to have satisfied in full a delinquency when and if, as a result of
         application of the assigned payments to all outstanding Loans and
         Unpaid Reimbursement Obligations of the nondelinquent Banks, the Banks'
         respective pro rata shares of all outstanding Loans and Unpaid
         Reimbursement Obligations have returned to those in effect immediately
         prior to such delinquency and without giving effect to the nonpayment
         causing such delinquency.

         15.6. HOLDERS OF NOTES. The Agent may deem and treat the payee of any
Note or the purchaser of any Letter of Credit Participation as the absolute
owner or purchaser thereof for all purposes hereof until it shall have been
furnished in writing with a different name by such payee or by a subsequent
holder, assignee or transferee.

         15.7. INDEMNITY. The Banks ratably agree hereby to indemnify and hold
harmless the Agent and its affiliates from and against any and all claims,
actions and suits (whether groundless or otherwise), losses, damages, costs,
expenses (including any expenses for which the Agent or such affiliate has not
been reimbursed by the Borrower as required by Section 16), and liabilities of
every nature and character arising out of or related to this Credit Agreement,
the Notes, or any of the other Loan Documents or the transactions contemplated
or evidenced hereby or thereby, or the Agent's actions taken hereunder or
thereunder, except to the extent that any of the same shall be directly caused
by the Agent's willful misconduct or gross negligence.

         15.8. AGENT AS BANK. In its individual capacity, Fleet shall have the
same obligations and the same rights, powers and privileges in respect to its
Commitment and the Loans made by it, and as the holder of any of the Notes and
as the purchaser of any Letter of Credit Participations, as it would have were
it not also the Agent.

         15.9. RESIGNATION. The Agent may resign at any time by giving sixty
(60) days prior written notice thereof to the Banks and the Borrower. Upon any
such resignation, the Majority Banks shall have the right to appoint a successor
Agent. Unless a Default or Event of Default shall have occurred and be
continuing, such successor Agent shall be reasonably acceptable to the Borrower.
If no successor Agent shall have been so appointed by the Majority Banks and
shall have accepted such appointment within thirty (30) days after the retiring
Agent's giving of notice of resignation, then the retiring Agent may, on behalf
of the Banks, appoint a successor Agent, which shall be a financial institution
having a rating of not less than A or its equivalent by Standard & Poor's
Corporation. Upon the acceptance of any
<PAGE>   60
                                      -54-

appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations hereunder. After any retiring Agent's
resignation, the provisions of this Credit Agreement and the other Loan
Documents shall continue in effect for its benefit in respect of any actions
taken or omitted to be taken by it while it was acting as Agent.

         15.10. NOTIFICATION OF DEFAULTS AND EVENTS OF DEFAULT. Each Bank hereby
agrees that, upon learning of the existence of a Default or an Event of Default,
it shall promptly notify the Agent thereof. The Agent hereby agrees that upon
receipt of any notice under this Section 15.10 it shall promptly notify the
other Banks of the existence of such Default or Event of Default.

         15.11. DUTIES IN THE CASE OF ENFORCEMENT. In case one of more Events of
Default have occurred and shall be continuing, and whether or not acceleration
of the Obligations shall have occurred, the Agent shall, if (a) so requested by
the Majority Banks and (b) the Banks have provided to the Agent such additional
indemnities and assurances against expenses and liabilities as the Agent may
reasonably request, proceed to enforce the provisions of the Security Documents
authorizing the sale or other disposition of all or any part of the Collateral
and exercise all or any such other legal and equitable and other rights or
remedies as it may have in respect of such Collateral. The Majority Banks may
direct the Agent in writing as to the method and the extent of any such sale or
other disposition, the Banks hereby agreeing to indemnify and hold the Agent,
harmless from all liabilities incurred in respect of all actions taken or
omitted in accordance with such directions, provided that the Agent need not
comply with any such direction to the extent that the Agent reasonably believes
the Agent's compliance with such direction to be unlawful or commercially
unreasonable in any applicable jurisdiction.

                        16. EXPENSES AND INDEMNIFICATION.

         16.1. EXPENSES. The Borrower agrees to pay (a) the reasonable costs of
producing and reproducing this Credit Agreement, the other Loan Documents and
the other agreements and instruments mentioned herein, (b) any taxes (including
any interest and penalties in respect thereto) payable by the Agent or any of
the Banks (other than taxes based upon the Agent's or any Bank's net income) on
or with respect to the transactions contemplated by this Credit Agreement (the
Borrower hereby agreeing to indemnify the Agent and each Bank with respect
thereto), (c) the reasonable fees, expenses and disbursements of the Agent's
Special Counsel or any local counsel to the Agent incurred in connection with
the preparation, syndication, administration or interpretation of the Loan
Documents and other instruments mentioned herein, each closing hereunder, any
amendments, modifications, approvals, consents or waivers hereto or hereunder,
or the cancellation of any Loan Document upon payment in full in cash of all of
the Obligations or pursuant to any terms of such Loan Document for providing for
such cancellation, (d) the fees, expenses and disbursements of the Agent or any
of its affiliates incurred by the Agent or such affiliate in connection with the
preparation, syndication, administration or interpretation of the Loan Documents
and other instruments mentioned herein, including all title insurance premiums
and surveyor, engineering and appraisal charges, (e) all reasonable
out-of-pocket expenses (including without limitation reasonable attorneys' fees
and costs, which attorneys may be employees of any Bank or the Agent, and
reasonable consulting, accounting, appraisal, investment banking and similar
professional fees and charges) incurred by any Bank or the Agent in connection
with (i) the enforcement of or preservation of rights under any of the Loan
Documents against the Borrower or any of its Subsidiaries or the administration
thereof after the occurrence of a Default or Event of Default and (ii) any
litigation, proceeding or dispute whether arising hereunder or otherwise, in any
way related to any Bank's or the
<PAGE>   61
                                      -55-

Agent's relationship with the Borrower or any of its Subsidiaries and (f) all
reasonable fees, expenses and disbursements of any Bank or the Agent incurred in
connection with UCC searches.

         16.2. INDEMNIFICATION. The Borrower agrees to indemnify and hold
harmless the Agent, its affiliates and the Banks from and against any and all
claims, actions and suits whether groundless or otherwise, and from and against
any and all liabilities, losses, damages and expenses of every nature and
character arising out of this Credit Agreement or any of the other Loan
Documents or the transactions contemplated hereby including, without limitation,
(a) any actual or proposed use by the Borrower or any of its Subsidiaries of the
proceeds of any of the Loans or Letters of Credit, (b) the Borrower or any of
its Subsidiaries entering into or performing this Credit Agreement or any of the
other Loan Documents or (c) with respect to the Borrower and its Subsidiaries
and their respective properties and assets, the violation of any Environmental
Law, the presence, disposal, escape, seepage, leakage, spillage, discharge,
emission, release or threatened release of any Hazardous Substances or any
action, suit, proceeding or investigation brought or threatened with respect to
any Hazardous Substances (including, but not limited to, claims with respect to
wrongful death, personal injury or damage to property), in each case including,
without limitation, the reasonable fees and disbursements of counsel and
allocated costs of internal counsel incurred in connection with any such
investigation, litigation or other proceeding, except to the extent that any of
the foregoing are directly caused by the gross negligence or willful misconduct
of the otherwise indemnified party. In litigation, or the preparation therefor,
in the event in the opinion of counsel to the Banks and the Agent the interests
of the Borrower, on the one hand and the interests of the Banks and the Agent,
on the other hand are not sufficiently the same or a conflict exists or could
arise as a result of the Borrower, the Agent and the Banks using one counsel,
the Banks and the Agent and its affiliates shall be entitled to select their own
counsel and, in addition to the foregoing indemnity, the Borrower agrees to pay
promptly the reasonable fees and expenses of such counsel, provided, the
Borrower shall only be required to pay the reasonable fees and expenses of one
such counsel so selected by the Agent, unless the Agent or any Bank reasonably
believes a conflict exists or could arise as a result of the Agent and/or the
Banks using one counsel, in which case each of the Banks making such a
determination and the Agent shall be entitled to select their own counsel, and
in addition to the foregoing indemnity, the Borrower agrees to pay promptly the
reasonable fees and expenses of such counsel. If, and to the extent that the
obligations of the Borrower under this Section 16.2 are unenforceable for any
reason, the Borrower hereby agrees to make the maximum contribution to the
payment in satisfaction of such obligations which is permissible under
applicable law.

         16.3. SURVIVAL. The covenants contained in this Section 16 shall
survive payment or satisfaction in full of all other Obligations.

                                   17. USURY.

         All agreements between the Borrower and the Agent and the Banks are
hereby expressly limited so that in no contingency or event whatsoever, whether
by reason of acceleration of the maturity of the Notes or otherwise, shall the
amount paid or agreed to be paid to the Agent or any Bank for the use or the
forbearance of the Indebtedness represented by any Note exceed the maximum
permissible under applicable law. In this regard, it is expressly agreed that it
is the intent of the Borrower, the Agent and the Banks, in the execution,
delivery and acceptance of the Notes, to contract in strict compliance with the
laws of the Commonwealth of Massachusetts. If, under any circumstances
whatsoever, performance or fulfillment of any provision of any of the Notes or
any of the other Loan Documents at the time such provision is to be performed or
fulfilled shall involve exceeding the limit of validity prescribed by applicable
law, then the obligation so to be performed or fulfilled shall be reduced
automatically to the
<PAGE>   62
                                      -56-

limits of such validity, and if under any circumstances whatsoever the Agent or
any Banks should ever receive as interest an amount which would exceed the
highest lawful rate, such amount which would be excessive interest shall be
applied to the reduction of the principal balance evidenced by the Notes and not
to the payment of interest. The provisions of this Section 27 shall control
every other provision of this Credit Agreement and each of the Notes.

                         18. SURVIVAL OF COVENANTS, ETC.

         All covenants, agreements, representations and warranties made herein,
in the Notes, in any of the other Loan Documents or in any documents or other
papers delivered by or on behalf of the Borrower or any of its Subsidiaries
pursuant hereto shall be deemed to have been relied upon by the Banks and the
Agent, notwithstanding any investigation heretofore or hereafter made by any of
them, and shall survive the making by the Banks of any of the Loans and the
issuance, extension or renewal of any Letters of Credit, as herein contemplated,
and shall continue in full force and effect so long as any Letter of Credit or
any amount due under this Credit Agreement or the Notes or any of the other Loan
Documents remains outstanding or any Bank has any obligation to make any Loans
or the Agent has any obligation to issue, extend or renew any Letter of Credit,
and for such further time as may be otherwise expressly specified in this Credit
Agreement. All statements contained in any certificate or other paper delivered
to any Bank or the Agent at any time by or on behalf of the Borrower or any of
its Subsidiaries pursuant hereto or in connection with the transactions
contemplated hereby shall constitute representations and warranties by the
Borrower or such Subsidiary hereunder.

                        19. ASSIGNMENT AND PARTICIPATION.

         19.1. CONDITIONS TO ASSIGNMENT BY BANKS. Except as provided herein,
each Bank may assign to one or more Eligible Assignees all or a portion of its
interests, rights and obligations under this Credit Agreement (including all or
a portion of its Commitment Percentage and Commitment and the same portion of
the Loans at the time owing to it, the Notes held by it and its participating
interest in the risk relating to any Letters of Credit); provided that (a) each
of the Agent and, unless a Default or Event of Default shall have occurred and
be continuing, the Borrower shall have given its prior written consent to such
assignment, which consent, in the case of the Borrower, will not be unreasonably
withheld, (b) each such assignment shall be of a constant, and not a varying,
percentage of all the assigning Bank's rights and obligations under this Credit
Agreement, (c) each assignment shall be in an amount that is a whole multiple of
$5,000,000 and (d) the parties to such assignment shall execute and deliver to
the Agent, for recording in the Register (as hereinafter defined), an Assignment
and Acceptance, substantially in the form of Exhibit D hereto (an "Assignment
and Acceptance"), together with any Notes subject to such assignment. Upon such
execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, which effective date shall be at
least five (5) Business Days after the execution thereof, (i) the assignee
thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Bank hereunder,
and (ii) the assigning Bank shall, to the extent provided in such assignment and
upon payment to the Agent of the registration fee referred to in Section 19.3,
be released from its obligations under this Credit Agreement.

         19.2. CERTAIN REPRESENTATIONS AND WARRANTIES; LIMITATIONS; COVENANTS.
By executing and delivering an Assignment and Acceptance, the parties to the
assignment thereunder confirm to and agree with each other and the other parties
hereto as follows:

                  (a) other than the representation and warranty that it is the
         legal and beneficial owner of the interest being assigned thereby free
         and clear of any adverse claim, the assigning
<PAGE>   63
                                      -57-

         Bank makes no representation or warranty, express or implied, and
         assumes no responsibility with respect to any statements, warranties or
         representations made in or in connection with this Credit Agreement or
         the execution, legality, validity, enforceability, genuineness,
         sufficiency or value of this Credit Agreement, the other Loan Documents
         or any other instrument or document furnished pursuant hereto or the
         attachment, perfection or priority of any security interest or
         mortgage,

                  (b) the assigning Bank makes no representation or warranty and
         assumes no responsibility with respect to the financial condition of
         the Borrower and its Subsidiaries or any other Person primarily or
         secondarily liable in respect of any of the Obligations, or the
         performance or observance by the Borrower and its Subsidiaries or any
         other Person primarily or secondarily liable in respect of any of the
         Obligations of any of their obligations under this Credit Agreement or
         any of the other Loan Documents or any other instrument or document
         furnished pursuant hereto or thereto;

                  (c) such assignee confirms that it has received a copy of this
         Credit Agreement, together with copies of the most recent financial
         statements referred to in Section 7.4 and Section 8.4 and such other
         documents and information as it has deemed appropriate to make its own
         credit analysis and decision to enter into such Assignment and
         Acceptance;

                  (d) such assignee will, independently and without reliance
         upon the assigning Bank, the Agent or any other Bank and based on such
         documents and information as it shall deem appropriate at the time,
         continue to make its own credit decisions in taking or not taking
         action under this Credit Agreement;

                  (e) such assignee represents and warrants that it is an
         Eligible Assignee;

                  (f) such assignee appoints and authorizes the Agent to take
         such action as agent on its behalf and to exercise such powers under
         this Credit Agreement and the other Loan Documents as are delegated to
         the Agent by the terms hereof or thereof, together with such powers as
         are reasonably incidental thereto;

                  (g) such assignee agrees that it will perform in accordance
         with their terms all of the obligations that by the terms of this
         Credit Agreement are required to be performed by it as a Bank;

                  (h) such assignee represents and warrants that it is legally
         authorized to enter into such Assignment and Acceptance; and

                  (i) such assignee acknowledges that it has made arrangements
         with the assigning Bank satisfactory to such assignee with respect to
         its pro rata share of Letter of Credit Fees in respect of outstanding
         Letters of Credit.

         19.3. REGISTER. The Agent shall maintain a copy of each Assignment and
Acceptance delivered to it and a register or similar list (the "Register") for
the recordation of the names and addresses of the Banks and the Commitment
Percentage of, and principal amount of the Loans owing to and Letter of Credit
Participations purchased by, the Banks from time to time. The entries in the
Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Agent and the Banks may treat each Person whose name is recorded
in the Register as a Bank hereunder for all purposes of this Credit
<PAGE>   64
                                      -58-

Agreement. The Register shall be available for inspection by the Borrower and
the Banks at any reasonable time and from time to time upon reasonable prior
notice. Upon each such recordation, the assigning Bank agrees to pay to the
Agent a registration fee in the sum of $3,500.

         19.4. NEW NOTES. Upon its receipt of an Assignment and Acceptance
executed by the parties to such assignment, together with each Note subject to
such assignment, the Agent shall (a) record the information contained therein in
the Register, and (b) give prompt notice thereof to the Borrower and the Banks
(other than the assigning Bank). Within five (5) Business Days after receipt of
such notice, the Borrower, at its own expense, shall execute and deliver to the
Agent, in exchange for each surrendered Note, a new Note to the order of such
Eligible Assignee in an amount equal to the amount assumed by such Eligible
Assignee pursuant to such Assignment and Acceptance and, if the assigning Bank
has retained some portion of its obligations hereunder, a new Note to the order
of the assigning Bank in an amount equal to the amount retained by it hereunder.
Such new Notes shall provide that they are replacements for the surrendered
Notes, shall be in an aggregate principal amount equal to the aggregate
principal amount of the surrendered Notes, shall be dated the effective date of
such Assignment and Acceptance and shall otherwise be in substantially the form
of the assigned Notes. Within five (5) days of issuance of any new Notes
pursuant to this Section 19.4, the Borrower shall deliver an opinion of counsel,
addressed to the Banks and the Agent, relating to the due authorization,
execution and delivery of such new Notes and the legality, validity and binding
effect thereof, in form and substance satisfactory to the Banks. The surrendered
Notes shall be cancelled and returned to the Borrower.

         19.5. PARTICIPATIONS. Each Bank may sell participations to one or more
banks or other entities in all or a portion of such Bank's rights and
obligations under this Credit Agreement and the other Loan Documents; provided
that (a) each such participation shall be in an amount of not less than
$5,000,000, (b) any such sale or participation shall not affect the rights and
duties of the selling Bank hereunder to the Borrower and (c) the only rights
granted to the participant pursuant to such participation arrangements with
respect to waivers, amendments or modifications of the Loan Documents shall be
the rights to approve waivers, amendments or modifications that would reduce the
principal of or the interest rate on any Loans, extend the term or increase the
amount of the Commitment of such Bank as it relates to such participant, reduce
the amount of any commitment fees or Letter of Credit Fees to which such
participant is entitled or extend any regularly scheduled payment date for
principal or interest.

         19.6. DISCLOSURE. The Borrower agrees that in addition to disclosures
made in accordance with standard and customary banking practices any Bank may
disclose information obtained by such Bank pursuant to this Credit Agreement to
assignees or participants and potential assignees or participants hereunder;
provided that such assignees or participants or potential assignees or
participants shall agree (a) to treat in confidence such information unless such
information otherwise becomes public knowledge, (b) not to disclose such
information to a third party, except as required by law or legal process and (c)
not to make use of such information for purposes of transactions unrelated to
such contemplated assignment or participation. For purposes of this Section 19.6
an assignee or participant or potential assignee or participant may include a
counterparty with whom such Bank has entered into or potentially might enter
into a derivative contract referenced to credit or other risks or events arising
under this Credit Agreement or any other Loan Document.

         19.7. ASSIGNEE OR PARTICIPANT AFFILIATED WITH THE BORROWER. If any
assignee Bank is an Affiliate of the Borrower, then any such assignee Bank shall
have no right to vote as a Bank hereunder or under any of the other Loan
Documents for purposes of granting consents or waivers or for purposes of
agreeing to amendments or other modifications to any of the Loan Documents or
for purposes of making
<PAGE>   65
                                      -59-

requests to the Agent pursuant to Section 13.1 or Section 13.2, and the
determination of the Majority Banks shall for all purposes of this Credit
Agreement and the other Loan Documents be made without regard to such assignee
Bank's interest in any of the Loans or Reimbursement Obligations. If any Bank
sells a participating interest in any of the Loans or Reimbursement Obligations
to a participant, and such participant is the Borrower or an Affiliate of the
Borrower, then such transferor Bank shall promptly notify the Agent of the sale
of such participation. A transferor Bank shall have no right to vote as a Bank
hereunder or under any of the other Loan Documents for purposes of granting
consents or waivers or for purposes of agreeing to amendments or modifications
to any of the Loan Documents or for purposes of making requests to the Agent
pursuant to Section 13.1 or Section 13.2 to the extent that such participation
is beneficially owned by the Borrower or any Affiliate of the Borrower, and the
determination of the Majority Banks shall for all purposes of this Credit
Agreement and the other Loan Documents be made without regard to the interest of
such transferor Bank in the Loans or Reimbursement Obligations to the extent of
such participation.

         19.8. MISCELLANEOUS ASSIGNMENT PROVISIONS. Any assigning Bank shall
retain its rights to be indemnified pursuant to Section 16 with respect to any
claims or actions arising prior to the date of such assignment. If any assignee
Bank is not incorporated under the laws of the United States of America or any
state thereof, it shall, prior to the date on which any interest or fees are
payable hereunder or under any of the other Loan Documents for its account,
deliver to the Borrower and the Agent certification as to its exemption from
deduction or withholding of any United States federal income taxes. If any
Reference Bank transfers all of its interest, rights and obligations under this
Credit Agreement, the Agent shall, in consultation with the Borrower and with
the consent of the Borrower and the Majority Banks, appoint another Bank to act
as a Reference Bank hereunder. Anything contained in this Section 19 to the
contrary notwithstanding, any Bank may at any time pledge all or any portion of
its interest and rights under this Credit Agreement (including all or any
portion of its Notes) to any of the twelve Federal Reserve Banks organized under
Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341, provided that any
foreclosure or similar action by such trustee or other representative shall be
subject to the other provisions of this Section 19. No such pledge or the
enforcement thereof shall release the pledgor Bank from its obligations
hereunder or under any of the other Loan Documents.

         19.9. ASSIGNMENT BY BORROWER. The Borrower shall not assign or transfer
any of its rights or obligations under any of the Loan Documents without the
prior written consent of each of the Banks.

                                20. NOTICES, ETC.

         Except as otherwise expressly provided in this Credit Agreement, all
notices and other communications made or required to be given pursuant to this
Credit Agreement or the Notes or any Letter of Credit Applications shall be in
writing and shall be delivered in hand, mailed by United States registered or
certified first class mail, postage prepaid, sent by overnight courier, or sent
by telegraph, telecopy, facsimile or telex and confirmed by delivery via courier
or postal service, addressed as follows:

                  (a) if to the Borrower, at 870 Commons Drive, Aurora, Illinois
         60504, Attention: Mack McCarthy, Chief Financial Officer, or at such
         other address for notice as the Borrower shall last have furnished in
         writing to the Person giving the notice;

                  (b) if to the Agent, at 100 Federal Street, Boston,
         Massachusetts 02110, USA, Attention: Harvey H. Thayer, Jr., Director or
         such other address for notice as the Agent shall last have furnished in
         writing to the Person giving the notice; and
<PAGE>   66
                                      -60-

                  (c) if to any Bank, at such Bank's address set forth on
         Schedule 1 hereto, or such other address for notice as such Bank shall
         have last furnished in writing to the Person giving the notice.

         Any such notice or demand shall be deemed to have been duly given or
made and to have become effective (i) if delivered by hand, overnight courier or
facsimile to a responsible officer of the party to which it is directed, at the
time of the receipt thereof by such officer or the sending of such facsimile and
(ii) if sent by registered or certified first-class mail, postage prepaid, on
the third Business Day following the mailing thereof.

                               21. GOVERNING LAW.

         THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED
THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE CONTRACTS UNDER THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS AND SHALL FOR ALL PURPOSES BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID COMMONWEALTH OF MASSACHUSETTS
(EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE BORROWER
AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS CREDIT AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE COMMONWEALTH OF
MASSACHUSETTS OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE
NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT
BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN SECTION 20. THE
BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN
INCONVENIENT COURT.

                                  22. HEADINGS.

         The captions in this Credit Agreement are for convenience of reference
only and shall not define or limit the provisions hereof.

                                23. COUNTERPARTS.

         This Credit Agreement and any amendment hereof may be executed in
several counterparts and by each party on a separate counterpart, each of which
when executed and delivered shall be an original, and all of which together
shall constitute one instrument. In proving this Credit Agreement it shall not
be necessary to produce or account for more than one such counterpart signed by
the party against whom enforcement is sought.

                           24. ENTIRE AGREEMENT, ETC.

         The Loan Documents and any other documents executed in connection
herewith or therewith express the entire understanding of the parties with
respect to the transactions contemplated hereby. Neither this Credit Agreement
nor any term hereof may be changed, waived, discharged or terminated, except as
provided in Section 26.
<PAGE>   67
                                      -61-

                            25. WAIVER OF JURY TRIAL.

         The Borrower hereby waives its right to a jury trial with respect to
any action or claim arising out of any dispute in connection with this Credit
Agreement, the Notes or any of the other Loan Documents, any rights or
obligations hereunder or thereunder or the performance of such rights and
obligations. Except as prohibited by law, the Borrower hereby waives any right
it may have to claim or recover in any litigation referred to in the preceding
sentence any special, exemplary, punitive or consequential damages or any
damages other than, or in addition to, actual damages. The Borrower (a)
certifies that no representative, agent or attorney of any Bank or the Agent has
represented, expressly or otherwise, that such Bank or the Agent would not, in
the event of litigation, seek to enforce the foregoing waivers and (b)
acknowledges that the Agent and the Banks have been induced to enter into this
Credit Agreement, the other Loan Documents to which it is a party by, among
other things, the waivers and certifications contained herein.

                     26. CONSENTS, AMENDMENTS, WAIVERS, ETC.

         Any consent or approval required or permitted by this Credit Agreement
to be given by the Banks may be given, and any term of this Credit Agreement,
the other Loan Documents or any other instrument related hereto or mentioned
herein may be amended, and the performance or observance by the Borrower or any
of its Subsidiaries of any terms of this Credit Agreement, the other Loan
Documents or such other instrument or the continuance of any Default or Event of
Default may be waived (either generally or in a particular instance and either
retroactively or prospectively) with, but only with, the written consent of the
Borrower and the written consent of the Majority Banks. Notwithstanding the
foregoing, the rate of interest on the Notes (other than interest accruing
pursuant to Section 5.10 following the effective date of any waiver by the
Majority Banks of the Default or Event of Default relating thereto) or the
amount of the Commitment Fee or Letter of Credit Fees may not be decreased
without the written consent of each Bank affected thereby; the amount of the
Commitments may not be increased without the written consent of the Borrower and
of each Bank affected thereby; the Maturity Date may not be postponed without
the written consent of each Bank affected thereby; this Section 26 and the
definition of Majority Banks may not be amended, without the written consent of
all of the Banks; and the amount of the Letter of Credit Fees payable for the
Agent's account and Section 15 may not be amended without the written consent of
the Agent. No waiver shall extend to or affect any obligation not expressly
waived or impair any right consequent thereon. No course of dealing or delay or
omission on the part of the Agent or any Bank in exercising any right shall
operate as a waiver thereof or otherwise be prejudicial thereto. No notice to or
demand upon the Borrower shall entitle the Borrower to other or further notice
or demand in similar or other circumstances.

                                27. SEVERABILITY.

         The provisions of this Credit Agreement are severable and if any one
clause or provision hereof shall be held invalid or unenforceable in whole or in
part in any jurisdiction, then such invalidity or unenforceability shall affect
only such clause or provision, or part thereof, in such jurisdiction, and shall
not in any manner affect such clause or provision in any other jurisdiction, or
any other clause or provision of this Credit Agreement in any jurisdiction.
<PAGE>   68
         IN WITNESS WHEREOF, the undersigned have duly executed this Credit
Agreement as a sealed instrument as of the date first set forth above.

                                      CABOT MICROELECTRONICS CORPORATION

                                      By: /s/ William C. McCarthy
                                          ____________________________________
                                             Name: William C. McCarthy
                                             Title: CFO, Treasurer and Secretary

                                      FLEET NATIONAL BANK, individually and as
                                      Agent

                                      By: /s/ Harvey H. Thayer, Jr.
                                          ____________________________________
                                             Name: Harvey H. Thayer, Jr.
                                             Title: Director
<PAGE>   69
                                   SCHEDULE 1

                              Banks and Commitments

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                                                                     COMMITMENT
                  BANK                            COMMITMENT         PERCENTAGE
--------------------------------------------------------------------------------
<S>                                              <C>                 <C>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FLEET NATIONAL BANK                              $25,000,000             100%
Domestic and Eurodollar Lending Office:
100 Federal Street
Boston, MA 02110
Attn: Harvey H. Thayer

--------------------------------------------------------------------------------
TOTAL:                                           $25,000,000             100%
--------------------------------------------------------------------------------
</TABLE>
<PAGE>   70
                                      -2-

                                  Schedule 7.3

                               UCC SEARCH SUMMARY
                   FLEET NATIONAL BANK/CABOT MICROELECTRONICS
                                   1000/104351

DEBTOR: CABOT CORPORATION

<TABLE>
<CAPTION>
       Secured Party                    Jurisdiction   File Number   Date Filed    Collateral        Comments
       -------------                    ------------   -----------   ----------    ----------        --------
<S>                                     <C>            <C>           <C>           <C>               <C>
----------------------------------------------------------------------------------------------------------------------------------
GTE Leasing Corporation                 SOS, IL        3057196       12/1/92       Equipment Lease   UCCs searched through 2/29/00
                                                       3764377       11/18/97                        Continue

United Financial of Illinois, Inc.;                    3209576       1/11/94       Equipment Lease
assigned to Drexel National Bank
                                                       3969673       1/8/99                          Continue

Citicorp Leasing, Inc.                                 3464437       10/31/95      Equipment Lease

Citicorp Leasing, Inc.                                 3473996       11/29/93      Equipment Lease

Bennett Telecom Funding Corporation                    3499392       1/30/96       Equipment Lease

Vanguard Financial Service Corp.                       3590566       9/23/96       Equipment Lease

IBM Credit Corporation (Lessor)                        3674604       4/8/97        Equipment Lease

Vanguard Financial Service Corp.                       3697633       6/4/97        Equipment Lease

Vanguard Financial Service Corp.                       3731102       8/22/97       Equipment Lease
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   71
                                      -3-

<TABLE>
<S>                                     <C>            <C>           <C>           <C>               <C>
----------------------------------------------------------------------------------------------------------------------------------
IBM Credit Corporation (Lessor)                        3794513       1/29/98       Equipment Lease

NTFC Capital Corporation                               4050736       6/14/99       Equipment Lease

Fleet Leasing Corporation                              4072755       7/30/99       Equipment Lease

Illinois Material Handling; assigned                   4113081       10/25/99      Equipment Lease
to Illinois Material Handling

Lessor, Caterpillar Financial           SOS, MA        468344        5/13/97       Equipment Lease   UCCs searched through 3/13/00
Services Corporation
                                                       500029        9/29/97                         Amend collateral description

StorageTek Distributed Systems                         306156        4/18/95       Equipment Lease
Division, Inc.
                                                       345995        10/23/95                        Amend collateral description

General Electric Capital Corp.                         689158        1/18/00       Equipment Lease

Beckwith Machinery Company; assigned                   284450        1/5/95        Equipment Lease
to Toyota Motor Credit Corporation

Citicorp Leasing, Inc.                                 292417        2/13/95       Equipment Lease

Citicorp Leasing, Inc.                                 347929        10/30/95      Equipment Lease

Citicorp Leasing, Inc.                                 352632        11/21/95      Equipment Lease

Caterpillar Financial Services                         435930        12/16/96      Equipment Lease
Corporation

El Camino Resources, Ltd.                              438549        12/26/96      Equipment Lease
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   72
                                      -4-

<TABLE>
<S>                                     <C>            <C>           <C>           <C>               <C>
----------------------------------------------------------------------------------------------------------------------------------
Lessor:  NTEC Capital Corporation                      441356        1/9/97        Equipment Lease

Sanwa Leasing Corporation                              466157        5/5/97        Equipment Lease

Citicorp Leasing Inc.                                  478777        6/25/97       Equipment Lease

Citicorp Del Lease, Inc.                               575444        9/3/98        Equipment Lease

Saleco Credit Co., Inc.                                633844        5/24/99       Equipment Lease

Newcourt Financial USA, Inc.                           636776        6/4/99        Equipment Lease

Lessor:  General Electric Capital                      652360        8/9/99        Equipment Lease
Corp.

General Electric Capital Corp.                         680122        12/9/99       Equipment Lease

Citicorp Del Lease, Inc.                               684850        12/29/99      Equipment Lease

Lessor:  NTFC Capital Corporation                      052265        10/10/91      Equipment Lease
                                                       415639        9/10/96                         Amend collateral

Beckwith Machinery Company; assigned    Boston, MA     379588        1/5/95        Equipment Lease   UCCs searched through 3/10/00
to Toyota Motor Credit Corporation                                                (EXPIRED)

Citicorp Leasing, Inc.                                 380565        2/21/95       Equipment Lease
                                                                                  (EXPIRED)

Citicorp Leasing, Inc.                                 386095        10/30/95      Equipment Lease

Citicorp Leasing, Inc.                                 3866629       11/22/95      Equipment Lease

El Camino Resources, Ltd.                              395799        12/26/96      Equipment Lease
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   73
                                      -5-

<TABLE>
<S>                                     <C>            <C>           <C>           <C>               <C>
----------------------------------------------------------------------------------------------------------------------------------
Lessor:  NTFC Capital Corporation                      396136        1/9/97        Equipment Lease

Citicorp Del Lease, Inc.                               410714        9/9/98        Equipment Lease

Safeco Credit Co. Inc.                                 416994        5/24/99       Equipment Lease

Newcourt Financial USA Inc.                            417301        6/7/99        Equipment Lease

General Electric Capital Corporation                   421825        12/9/99       Equipment Lease

Citicorp Del Lease, Inc.                               422354        12/29/99      Equipment Lease

General Electric Capital Corp.                         422770        1/18/00       Equipment Lease
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

DEBTOR: CABOT MICROELECTRONICS

<TABLE>
<CAPTION>
       Secured Party                    Jurisdiction   File Number   Date Filed    Collateral        Comments
       -------------                    ------------   -----------   ----------    ----------        --------
<S>                                     <C>            <C>           <C>           <C>               <C>
----------------------------------------------------------------------------------------------------------------------------------
                                        SOS, IL                                                      UCCs clear through 2/21/00

                                        SOS, MA                                                      UCCs clear through 3/13/00

                                        Boston, MA                                                   UCCs clear through 3/10/00
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   74
                                      -6-
                                  Schedule 7.7

                               LEGAL PROCEEDINGS

     In June 1998, one of our major competitors, Rodel Inc., filed a lawsuit
against Cabot in the United States District Court for the District of Delaware
entitled Rodel, Inc. v. Cabot Corporation (Civil Action No. 98-352). In this
lawsuit, Rodel has requested a jury trial and is seeking a permanent injunction
and an award of compensatory, punitive, and other damages relating to
allegations that Cabot is infringing United States Patent No. 4,959,113
(entitled "Method and Composition for Polishing Metal Surfaces"), which is owned
by an affiliate of Rodel. We refer to this patent as the Roberts patent and this
lawsuit as the Roberts lawsuit. Cabot filed an answer and counterclaim seeking
dismissal of the Roberts lawsuit with prejudice, a judgment that Cabot is not
infringing the Roberts patent and/or that the Roberts patent is invalid, and
other relief. Cabot subsequently filed a motion for a summary judgment that the
Rodel patent is invalid because all of the claims contained in the patent were
not sufficiently different under applicable patent law from subject matter
contained in previously granted patents, specifically United States Patents Nos.
4,705,566, 4,956,015 and 4,929,257, each of which is owned by a third party not
affiliated with Rodel or us. This motion was denied on September 30, 1999 based
on the court's finding that there were genuine issues of material fact to be
determined at trial. Although the Roberts lawsuit is presently in the discovery
stage and trial is scheduled to begin in November 2000, the trial date has not
yet been scheduled. After the ruling on the summary judgment motion, Rodel filed
a request for reexamination of the Roberts patent with the United States Patent
and Trademark Office, which was granted on November 12, 1999.

     In April 1999, Rodel commenced a second lawsuit against Cabot in the United
States District Court for the District of Delaware entitled Rodel, Inc. v. Cabot
Corporation (Civil Action No. 99-256). In this lawsuit, Rodel has requested a
jury trial and is seeking a permanent injunction and an award of compensatory,
punitive, and other damages relating to allegations that Cabot is infringing two
other patents owned by an affiliate of Rodel. These two patents are United
States Patent No. 5,391,258 (entitled "Compositions and Methods for Polishing")
and United States Patent No. 5,476,606 (entitled "Compositions and Methods for
Polishing"). We refer to these patents as the Brancaleoni patents and this
lawsuit as the Brancaleoni lawsuit. Cabot has filed an answer and counterclaim
to the complaint seeking dismissal of the complaint with prejudice, a judgment
that Cabot is not infringing the Brancaleoni patents and/or that the Brancaleoni
patents are invalid, and other relief. The Brancaleoni lawsuit is presently in
the discovery stage which is currently to be completed by February 25, 2000.
Trial is presently currently scheduled to commence on December 4, 2000.
The parties have jointly requested that the court extend these dates.

     In the Roberts lawsuit, the only product that Rodel to date has alleged
infringes the Roberts patent is our W2000 slurry, which is used to polish
tungsten and which currently accounts for a significant portion of our total
revenue. In the Brancaleoni lawsuit, Rodel has not alleged that any specific
product infringes the Brancaleoni patents; instead, Rodel alleges that our
United States Patent No. 5,858,813 (entitled "Chemical Mechanical Polishing
Slurry for Metal Layers and Films" and which relates to a CMP polishing slurry
for metal surfaces including, among other things, aluminum and copper) is
evidence that Cabot is infringing the Brancaleoni patents through the
manufacture and sales of unspecified products. At this stage, we cannot predict
whether or to what extent Rodel will make specific infringement claims with
respect to any of our products other than W2000 in these or any future
proceedings. It is possible that Rodel will claim that many of our products
infringe its patents.

     Although Cabot is the only named defendant in these lawsuits, we will agree
to indemnify Cabot for any and all losses and expenses arising out of this
litigation as well as any other litigation arising out of our business. While we
believe there are meritorious defenses to the pending actions and intend to
defend them vigorously, these defenses may not be successful. If Rodel wins
either of these cases, we may have to pay damages and, in the future, may be
prohibited from producing any products found to infringe or required to pay
Rodel royalty and licensing fees with respect to sales of those products. In
addition, we may be subject to future infringement claims by Rodel or others
with respect to our products and processes. Such claims, even if they are
without merit, could be expensive and time consuming to defend and if we were to
lose any future infringement claims we could be subject to injunctions, damages
and/or royalty or licensing agreements. Royalty or licensing agreements, if
required as a result of any pending or future claims, may not be available to
use on acceptable terms or at all. Successful claims or infringements against us
could adversely affect our business, financial condition and results of
operations.

<PAGE>   75
                                      -7-

                                  Schedule 7.17

                                      None
<PAGE>   76
                                      -8-

                                  Schedule 7.18

                                      None
<PAGE>   77
                                      -9-

                                  Schedule 9.1

                                      None
<PAGE>   78
                                      -10-

                                  Schedule 9.2

                              Same as Schedule 7.3
<PAGE>   79
                                      -11-

                                  Schedule 9.3

                                      None<PAGE>   1
                                                                   Exhibit 10.17

                                CREDIT AGREEMENT

         This Credit Agreement, dated as of March 29, 2000 (this "Agreement"),
is between Cabot Microelectronics Corporation, a Delaware corporation (the
"Borrower"), and LaSalle Bank National Association, a national banking
association (the "Lender").

                             PRELIMINARY STATEMENTS:

         1. The Borrower has requested that the Lender provide the Borrower with
an unsecured credit facility under which the Lender would make term loans to the
Borrower in an aggregate amount of $17,000,000.

         2. The Lender has agreed to provide such a credit facility on the terms
and subject to the conditions set forth in this Agreement.

                                   AGREEMENT:

         In consideration of the premises and the mutual agreements herein
contained, the Borrower and the Lender hereby agree as follows:

                            SECTION 1: INTERPRETATION

         1.1 Definitions. When used in this Agreement the following terms have
the indicated meanings:

         Affiliate of any Person means (i) any other Person that, directly or
indirectly, controls or is controlled by or is under common control with such
Person and (ii) any officer or director of such Person. A Person shall be deemed
to be "controlled by" any other Person if such Person possesses, directly or
indirectly, power to vote 5% or more of the securities (on a fully diluted
basis) having ordinary voting power for the election of directors or managers or
power to direct or cause the direction of the management and policies of such
Person whether by contract or otherwise. Unless the context otherwise requires,
each reference to an Affiliate in this Agreement is a reference to an Affiliate
of the Borrower.

         Agreement has the meaning set forth in the Preamble.

         Applicable Margin means, as of any date of determination, a percentage
per annum determined by reference to the Level in effect at such time, as set
forth below:

<TABLE>
<CAPTION>
                                          Applicable Margin:
Level                             Eurodollar Rate (Reserve Adjusted)
-----                             ----------------------------------
<S>                               <C>
Level I                                          1.50%
Level II                                         1.75%
Level III                                        2.00%
</TABLE>
<PAGE>   2
The Applicable Margin shall change on the effective date of any change in the
applicable Level.

        Base Rate means, for any day, the rate of interest in effect for such
day as publicly announced from time to time by the Lender at its principal place
of business in Chicago, Illinois as its prime, base or equivalent rate of
interest (whether or not such rate is actually charged by the Lender), which
rate is not necessarily the lowest rate of interest charged by the Lender with
respect to commercial loans. Any change in the Base Rate announced by the Lender
is effective as of the effective date specified in the public announcement by
the Lender of such change.

        Base Rate Loan means any Loan bearing interest at the Base Rate.

        Borrower has the meaning set forth in the Preamble.

        Business Day means any day on which the Lender is open for commercial
banking business in Chicago, Illinois and, in the case of a Business Day that
relates to a Eurodollar Loan, on which dealings are carried on in the London
interbank eurodollar market.

        Cabot Dividend means the dividends to be declared and paid by the
Borrower to Cabot Corporation in an aggregate amount equal to the lesser of (i)
the borrowings under the Loans plus the net proceeds of the Borrower's initial
public offering and (ii) Cabot's Corporation's estimated tax basis in the
Borrower's capital stock as of the completion of the Borrower's initial public
offering.

        Capital Lease means, with respect to any Person, any lease of (or other
agreement conveying the right to use) any real or personal property by such
Person that, in conformity with GAAP, is or should be accounted for as a capital
lease on the balance sheet of such Person.

        CERCLA means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, any amendments thereto, any regulations promulgated
thereunder and any successor statutes or regulations.

        Change in Control means (i) the acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended, a "Controlling Person"), other than Cabot
Corporation, of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934, as amended) of more than
30% of the combined voting power of the then-outstanding voting securities
entitled to vote generally in the election of directors of the Borrower or (ii)
during any period of up to 24 consecutive months, commencing before or after the
Closing Date, individuals who at the beginning of such 24-month period were
directors of the Borrower shall cease for any reason (other than due to death,
disability or previously established mandatory retirement) to constitute a
majority of the board of directors of the Borrower.

        Closing Date means the later of (i) March 29, 2000, and (ii) the date
that each of the conditions precedent set forth in Section 9 have been satisfied
in full, which date will be set forth in the certificate described in Section
9.1(g).

                                       2
<PAGE>   3
        Code means the Internal Revenue Code of 1986, any amendments thereto,
any regulations promulgated thereunder and any successor statutes or
regulations.

        Consolidated Net Income (or Loss) means, with respect to the Borrower
and its Subsidiaries for any period, the net income (or loss) of the Borrower
and its Subsidiaries for such period, computed without giving effect to
extraordinary losses or extraordinary gains and any related tax effect.

        Controlled Group means all members of a controlled group of corporations
and all members of a controlled group of trades or businesses (whether or not
incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414 of the Code or Section 4001 of
ERISA.

        Disposal has the meaning set forth in the definition of "Release".

        EBITDA means, for any period, (i) Consolidated Net Income (or Loss) for
such period plus (ii) to the extent deducted in determining such Consolidated
Net Income (or Loss), (a) consolidated gross interest expense (including all
commissions, discounts, fees and other charges in connection with standby
letters of credit and similar instruments) accrued or paid by the Borrower and
its Subsidiaries for such period (including all imputed interest on Capital
Leases), determined in accordance with GAAP, (b) provisions for any income or
similar taxes paid or accrued by the Borrower and its Subsidiaries, (c) all
amounts treated as expenses for depreciation and the amortization of intangibles
of any kind and (d) any other non-cash charges minus (iii) non-cash gains
received by the Borrower during such period, in each case determined on a
consolidated basis in accordance with GAAP. For purposes of this definition,
EBITDA shall be calculated for any period by including the actual amount for
such period ending on the date of determination, including the EBITDA
attributable to any Person acquired pursuant to a Permitted Acquisition
occurring during such period on a pro forma basis for the period from the first
day of the applicable period through the date of the closing of each such
Permitted Acquisition, utilizing (a) where available or required pursuant to the
terms of this Agreement, historical audited or reviewed unaudited financial
statements obtained from such acquired Person (and prepared by an accounting
firm of national recognition or otherwise reasonably acceptable to the Lender),
broken down by fiscal quarter using methodology consistent with GAAP or (b)
where audited or reviewed financial statements are unavailable and not required
pursuant to the terms of this Agreement, unaudited financial statements reviewed
internally by the Borrower, broken down by fiscal quarter using methodology
consistent with GAAP.

        Environmental Claims means all claims, however asserted, by any
governmental, regulatory or judicial authority or other Person alleging
potential liability or responsibility for violation of any Environmental Law, or
for release or injury to the environment.

        Environmental Laws means all present or future federal, state or local
laws, statutes, common law duties, rules, regulations, ordinances and codes,
together with all administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any governmental authority,
in each case relating to Environmental Matters.

                                       3
<PAGE>   4
        Environmental Matters means any matter arising out of or relating to
health and safety, or pollution or protection of the environment or workplace,
including, without limitation, any of the foregoing relating to the presence,
use, production, generation, handling, transport, treatment, storage, disposal,
distribution, discharge, release, control or cleanup of any Hazardous Substance.

        ERISA means the Employee Retirement Income Security Act of 1974, any
amendments thereto, any regulations promulgated thereunder and any successor
statutes or regulations.

        Eurocurrency Reserve Percentage means, with respect to any Eurodollar
Loan for any Interest Period, a percentage (expressed as a decimal) equal to the
daily average during such Interest Period of the percentage in effect on each
day of such Interest Period, as prescribed by the Board of Governors of the
Federal Reserve System (or any successor), for determining the aggregate maximum
reserve requirements applicable to "Eurocurrency Liabilities" pursuant to
Regulation D or any other then applicable regulation of such Board of Governors
which prescribes reserve requirements applicable to "Eurocurrency Liabilities"
as presently defined in Regulation D.

        Eurodollar Loan means any Loan bearing interest at the Eurodollar Rate
(Reserve Adjusted).

        Eurodollar Office means with respect to the Lender the office or offices
of the Lender that shall be making or maintaining the Eurodollar Loans of the
Lender hereunder or such other office or offices through which the Lender
determines its Eurodollar Rate. A Eurodollar Office of the Lender may be, at the
option of the Lender, either a domestic or foreign office.

        Eurodollar Rate means, with respect to any Eurodollar Loan for any
Interest Period, a rate per annum equal to the offered rate for deposits in
Dollars for a period equal or comparable to such Interest Period that appears on
Telerate Page 3750 as of 11:00 A.M. (London time) three Business Days prior to
the first day of such Interest Period. "Telerate Page 3750 " means the display
designated as "Page 3750 " on the Telerate Service (or such other page as may
replace page 3750 on that service or such other service as may be nominated by
the British Bankers' Association as the information vendor for the purpose of
displaying British Bankers' Association Interest Settlement Rates for Dollar
deposits).

        Eurodollar Rate (Reserve Adjusted) means, with respect to any Eurodollar
Loan for any Interest Period, a rate per annum (rounded upwards, if necessary,
to the nearest 1/16th of 1%) determined pursuant to the following formula:

         Eurodollar Rate     =      Eurodollar Rate
                                    ---------------
        (Reserve Adjusted)         1-Eurocurrency Reserve Percentage

        Event of Default means any of the events described in Section 10.1.

        Funded Debt means, as of the date of determination, Indebtedness for
borrowed money and with respect to Capital Leases of the Borrower and its
Subsidiaries, determined on a consolidated basis in accordance with GAAP.

        GAAP means generally accepted accounting principles set forth from time
to time in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of

                                       4
<PAGE>   5
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the U.S. accounting profession), which are
applicable to the circumstances as of the date of determination; provided that
for purposes of determining compliance with the covenants set forth in Section
8.4, "GAAP" means such accounting principles as in effect on the Closing Date.

        Hazardous Substance has the meaning set forth in Section 7.20(b).

        Indebtedness of any Person means, without duplication, (i) all
indebtedness of such Person for borrowed money, whether or not evidenced by
bonds, debentures, notes or similar instruments, (ii) all obligations of such
Person as lessee under Capital Leases which have been or should be recorded as
liabilities on a balance sheet of such Person in accordance with GAAP, (iii) all
obligations of such Person to pay the deferred purchase price of property or
services (excluding trade accounts payable in the ordinary course of business),
(iv) all indebtedness secured by a Lien on the property of such Person, whether
or not such indebtedness shall have been assumed by such Person, (v) all
obligations, contingent or otherwise, with respect to the face amount of all
letters of credit (whether or not drawn) and banker's acceptances issued for the
account of such Person and s(vi) all liabilities of such Person under any
agreement, undertaking or arrangement by which such Person guarantees, endorses
or otherwise becomes or is contingently liable upon (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment, to supply
funds to or otherwise to invest in a debtor, or otherwise to assure a creditor
against loss) any indebtedness, obligation or other liability of any other
Person (other than by endorsements of instruments in the course of collection),
or guarantees the payment of dividends or other distributions upon the shares of
any other Person.

        Interest Period means, as to any Eurodollar Loan, the period commencing
on the date such loan is borrowed or continued as a Eurodollar Loan and ending
on the date one, two, three or six months thereafter as selected by the Borrower
pursuant to Section 2.2.1; provided that:

        (i)    if any Interest Period would otherwise end on a day that is not a
               Business Day, such Interest Period shall be extended to the
               following Business Day unless the result of such extension would
               be to carry such Interest Period into another calendar month, in
               which event such Interest Period shall end on the preceding
               Business Day;

        (ii)   any Interest Period that begins on a day for which there is no
               numerically corresponding day in the calendar month at the end of
               such Interest Period shall end on the last Business Day of the
               calendar month at the end of such Interest Period; and

        (iii)  the Borrower may not select an interest period that would extend
               beyond the Termination Date.

        Lender has the meaning set forth in the Preamble.

        Level means any of Level I, Level II and Level III. "Level I" means that
the Company's Leverage Ratio is less than 1.25 to 1.00 as of the end of the
fiscal quarter most recently ended. "Level II" means that the Company's Leverage
Ratio is greater than or equal to 1.25 to 1.00 and less than 2.00 to 1.00 as of
the end of the fiscal quarter most recently ended. "Level III" means that the

                                       5
<PAGE>   6
Company's Leverage Ratio is greater than or equal to 2.00 to 1.00 as of the end
of the fiscal quarter most recently ended. Any change in a Level will be made
upon receipt by the Lender of the applicable compliance certificate delivered
under Section 8.1(c) and will be effective three Business Days thereafter.

        Leverage Ratio means the ratio of (i) Funded Debt to (ii) EBITDA.

        Liabilities means all of the Borrower's liabilities, obligations and
indebtedness to the Lender for monetary amounts, whether now or hereafter owing,
arising, due or payable under this Agreement and any other Loan Document
howsoever evidenced, created, incurred, acquired or owing.

        Lien means any lien, security interest or other charge or encumbrance of
any kind, or any other type of preferential arrangement, including, without
limitation, the lien or retained security title of a conditional vendor and any
easement, right of way or other encumbrance on title to real property.

        Loan Documents means this Agreement, the Notes and such other documents
as the Borrower or any Subsidiary delivers to the Lender pursuant to the terms
of this Agreement.

        Loans means Term Loan A and Term Loan B.

        Margin Stock means any "margin stock" as defined in Regulation U of the
Board of Governors of the Federal Reserve System.

        Material Adverse Effect means any event that has had or could be
reasonably likely to have (i) a material adverse change in, or a material
adverse effect upon, the condition (financial or otherwise), operations, assets,
business or properties of the Borrower and its Subsidiaries taken as a whole,
(ii) a material impairment on the ability of the Borrower or any Subsidiary to
perform any of its obligations under any Loan Document or (iii) a material
adverse effect upon the legality, validity, binding effect or enforceability
against the Borrower or any other Person (other than the Lender) of any Loan
Document.

        Multiemployer Pension Plan means a multiemployer plan, as such term is
defined in Section 4001(a)(3) of ERISA, and to which the Borrower or any member
of the Controlled Group may have any liability.

        Notes means Term Note A and Term Note B.

        PBGC means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

        Pension Plan means a "pension plan", as such term is defined in Section
3(2) of ERISA, which is subject to Title IV of ERISA (other than a Multiemployer
Pension Plan), and to which the Borrower or any member of the Controlled Group
may have any liability, including any liability by reason of having been a
substantial employer within the meaning of Section 4063 of ERISA at any time
during the preceding five years, or by reason of being deemed to be a
contributing sponsor under Section 4069 of ERISA.

                                       6
<PAGE>   7
        Permitted Acquisitions means the purchase or other acquire all or
substantially all of the assets or any stock of any class of, or any partnership
or joint venture interest in, any Person, so long as (i) the purchase price of
which, together with the aggregate purchase price all other purchases and
acquisitions consummated after the Closing Date, does not exceed $60,000,000,
(ii) the purchase price (payable in anything other than capital stock of the
Borrower) of which, together with the aggregate purchase price (payable in
anything other than capital stock of the Borrower) all other purchases and
acquisitions consummated after the Closing Date, does not exceed $30,000,000,
(iii) the Borrower has notified the Lender in writing of such acquisition and
such notice gives a reasonably detailed description of the acquisition, (iv) the
Borrower has provided the Lender with such other information as the Lender
reasonably requests, (v) such acquisition would not subject the Lender to any
additional regulatory or third party approvals in connection with the exercise
of its rights under this Agreement and the other Loan Documents, (vi) the board
of directors and, if required, the shareholders of the Borrower and the Person
so acquired have approved the acquisition and such acquisition is otherwise
considered "friendly," (vii) to the extent such acquisition is a stock or other
equity acquisition, the Person so acquired either guarantees the Liabilities in
a manner satisfactory to the Lender or is immediately merged with and into the
Borrower or another Person who has guaranteed the Liabilities (with the Borrower
or such other Person being the surviving entity), (viii) the Borrower has
demonstrated to the satisfaction of the Lender that it is in compliance with the
financial covenants and restrictions contained in Section 8.6 both before and
immediately after the consummation of such acquisition, (ix) no Event of Default
or Unmatured Event of Default has occurred and is continuing or would result
from the consummation of such acquisition and (x) the representations and
warranties of the Borrower set forth in Section 7 will be true and correct both
before and immediately after the consummation of such acquisition. For purposes
of this definition, (a) "purchase price" means the aggregate amount of
consideration to be paid to the seller upon the consummation of a Permitted
Acquisition (including, without limitation, Indebtedness incurred or assumed in
connection therewith and the aggregate amount of all potential earn-out
payments, but excluding the aggregate amount of such earn-out payments to the
extent determined by the post-acquisition performance of the applicable acquired
Person) and (b) capital stock of the Borrower will be valued in a manner
consistent with the purchase agreement relating to the Permitted Acquisition or,
if no such valuation method exists, the average of the fair market value of such
capital stock for the ten Business Days immediately preceding the consummation
date of the Permitted Acquisition.

        Person means any natural person, corporation, partnership, trust,
limited liability company, association, governmental authority or unit, or any
other entity, whether acting in an individual, fiduciary or other capacity.

        RCRA means the Resource Conservation and Recovery Act, any amendments
thereto, any regulations promulgated thereunder and any successor statutes or
regulations.

        Release has the meaning specified in CERCLA and the term "Disposal" (or
"Disposed") has the meaning specified in RCRA; provided that in the event either
CERCLA or RCRA is amended so as to broaden the meaning of any term defined
thereby, such broader meaning shall apply as of the effective date of such
amendment; and provided, further that to the extent that the laws of a state
wherein any affected property lies establish a meaning for "Release" or
"Disposal" which is broader than is specified in either CERCLA or RCRA, such
broader meaning shall apply.

                                       7
<PAGE>   8
        Responsible Officer means any executive officer of the Borrower, or any
other officer of the Borrower designated in writing by the chief executive
officer or chief financial officer of the Borrower to the Lender as responsible
for overseeing or reviewing compliance with this Agreement or any other Loan
Document.

        Revolving Credit Facility means the revolving credit facility provided
to the Borrower under a credit agreement to be entered into among the Borrower,
certain lending institutions and Fleet National Bank, a national banking
association, as agent, or any other revolving credit facility entered into in
substitution thereof.

        STEP means the State of Illinois' State Treasurer's Economic Program.

        STEP Rate means a fixed interest rate equal to 1.75% plus (i) until the
second anniversary of the Closing Date, 70% of the "two year treasury rate" and
(ii) after the second anniversary of the Closing Date and before the Termination
Date, 70% of the "three year treasury rate." For purposes of this definition,
(a) "two year treasury rate" means the rate for U.S. Treasury Bonds maturing
over a two year period announced in the Wall Street Journal or any similar
publication on the Closing Date and (b) "three year treasury rate" means the
rate for U.S. Treasury Bonds maturing over a three year period announced in the
Wall Street Journal or any similar publication on the second anniversary of the
Closing Date.

        Subsidiary means, with respect to any Person, a corporation,
partnership, limited liability company or other entity of which such Person
and/or its other Subsidiaries own, directly or indirectly, such number of
outstanding shares or other ownership interests as have at least 50% of the
ordinary voting power for the election of directors or other managers or such
corporation, partnership, limited liability company or other entity. Unless the
context otherwise requires, each reference to a Subsidiary in this Agreement is
a reference to a Subsidiary of the Borrower.

        Term Loan A has the meaning set forth in Section 2.1.

        Term Loan B has the meaning set forth in Section 2.2.

        Term Note A has the meaning set forth in Section 2.1.

        Term Note B has the meaning set forth in Section 2.2.

        Termination Date means the earlier of (i) the fifth anniversary of the
Closing Date (unless extended in writing by the Lender and the Borrower) and
(ii) the date the Liabilities become due and payable under Section 10.2.

        Unmatured Event of Default means any event that, if it continues
uncured, will with lapse of time or the giving of notice or both constitute an
Event of Default.

        Welfare Plan means a "welfare plan", as such term is defined in Section
3(1) of ERISA.

        1.2 Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the words
"from" or "commencing on" means

                                       8
<PAGE>   9
"from and including" and the words "to," "through," "ending on" and "until" each
mean "to but excluding."

        1.3 Accounting Terms. Except as otherwise indicated, all accounting
terms not specifically defined in this Agreement shall be construed in
accordance with, and certificates of compliance with covenants shall be based
upon, GAAP.

        1.4 Headings and References. Section and other headings are for
reference only, and shall not affect the interpretation or meaning of any
provision of this Agreement. Any Section or clause references are to this
Agreement, unless otherwise specified. References to an annex, schedule or
exhibit are, unless otherwise specified, to an Annex, Schedule or Exhibit
attached to this Agreement. References in this Agreement and the other Loan
Documents or any other agreement include this Agreement and the other Loan
Documents and other agreements as the same may be amended, restated,
supplemented or otherwise modified from time to time pursuant to the provisions
hereof or thereof. A reference to any law, statute or regulation shall mean that
law, statute or regulation as it may be amended, supplemented or otherwise
modified from time to time, and any successor law, statute or regulation. A
reference to a Person includes the successors and assigns of such Person, but
such reference shall not increase, decrease or otherwise modify in any way the
provisions in this Agreement or any other Loan Document governing the assignment
of rights and obligations under or the binding effect of any provision of this
Agreement or any other Loan Document. The provisions of this Agreement relating
to Subsidiaries shall apply only during such times as the Borrower has one or
more Subsidiaries.

        1.5 Construction. Each covenant contained in this Agreement shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person. The term "including" is not limiting and means
"including without limitation."

                                SECTION 2: CREDIT

        2.1 Term Loan A. Subject to Section 9, on the Closing Date the Lender
will make a term loan ("Term Loan A") to the Borrower in the principal amount of
$3,500,000. The obligations in connection with Term Loan A will be evidenced by
and payable in accordance with the terms of a promissory note ("Term Note A")
made in favor of the Lender, dated as of the Closing Date and in the form of
Exhibit A. Term Loan A shall be repaid in full, together with any accrued and
unpaid interest thereon, on the Termination Date. Notwithstanding anything in
Term Note A or this Agreement to the contrary, the obligations in connection
with Term Loan A shall become immediately due and payable as provided in Section
10. No portion of Term Loan A that has been repaid may be reborrowed.

        2.2 Term Loan B. Subject to Section 9, on the Closing Date the Lender
will make a term loan ("Term Loan B") to the Borrower in the principal amount of
$13,500,000. The obligations in connection with Term Loan B will be evidenced by
and payable in accordance with the terms of a promissory note ("Term Note B")
made in favor of the Lender, dated as of the Closing Date and in

                                       9
<PAGE>   10
the form of Exhibit A. Term Loan B shall be repaid in quarterly installments of
$337,500 on the last Business Day of each calendar quarter (commencing on June
30, 2000), with all remaining outstanding principal of Term Loan B, together
with any accrued and unpaid interest thereon, payable on the Termination Date.
Notwithstanding anything in Term Note B or this Agreement to the contrary, the
obligations in connection with Term Loan B shall become immediately due and
payable as provided in Section 10. No portion of Term Loan B that has been
repaid may be reborrowed.

        2.3 Various Types of Loans. Unless eligible for the STEP Rate as
described in Section 3.1(i)(a), each Loan shall be either a Base Rate Loan or a
Eurodollar Loan (each a "type" of Loan), as the Borrower shall specify on the
Closing Date or in a related notice of conversion pursuant to Section 2.4.
Eurodollar Loans having the same Interest Period are sometimes called a "group"
or collectively "groups". Base Rate Loans and Eurodollar Loans may be
outstanding at the same time; provided that (i) not more than seven different
groups of Eurodollar Loans shall be outstanding at any one time and (ii) the
aggregate principal amount of each group of Eurodollar Loans shall at all times
be at least $1,000,000 and an integral multiple of $500,000.

        2.4 Conversion and Continuation Procedures. (a) Subject to Section 2.3,
the Borrower may, upon irrevocable written notice to the Agent in accordance
with Section 2.4(b):

        (i)    elect, as of any Business Day, to convert any Loans (or, in the
               case of Loans being converted into Eurodollar Loans, any part
               thereof in an aggregate amount not less than $1,000,000 or a
               higher integral multiple of $500,000) into Loans of the other
               type; or

        (ii)   elect, as of the last day of the applicable Interest Period, to
               continue any Eurodollar Loans having Interest Periods expiring on
               such day (or any part thereof in an aggregate amount not less
               than $1,000,000 or a higher integral multiple of $500,000) for a
               new Interest Period.

        (b) The Borrower shall give written or telephonic (followed immediately
by written confirmation thereof) notice to the Lender of each proposed
conversion or continuation not later than (i) in the case of conversion into
Base Rate Loans, 11:00 A.M., Chicago time, on the proposed date of such
conversion and (ii) in the case of conversion into or continuation of Eurodollar
Loans, 11:00 A.M., Chicago time, at least three Business Days prior to the
proposed date of such conversion or continuation, specifying in each case:

        (i)    the proposed date of conversion or continuation;

        (ii) the aggregate amount of Loans to be converted or continued;

        (iii) the type of Loans resulting from the proposed conversion or
continuation; and

        (iv)   in the case of conversion into, or continuation of, Eurodollar
               Loans, the duration of the requested Interest Period therefor.

                                       10
<PAGE>   11
        (c) If upon the expiration of any Interest Period applicable to
Eurodollar Loans, the Borrower has failed to select timely a new Interest Period
to be applicable to such Eurodollar Loans, the Borrower shall be deemed to have
elected to convert such Eurodollar Loans into Base Rate Loans effective on the
last day of such Interest Period.

        (d) Any conversion of a Eurodollar Loan on a day other than the last day
of an Interest Period therefor shall be subject to Section 6.4.

                            SECTION 3: INTEREST; FEES

        3.1 Interest Rates. The Borrower promises to pay interest on the unpaid
principal amount of the Loans for the period commencing on the Closing Date
until the Loans are paid in full as follows:

        (i)    with respect to Term Loan A, (a) so long as the Borrower remains
               eligible to receive funds from STEP and so long as funds in an
               amount at least equal to the then outstanding principal amount of
               the Term Loan remain on deposit with the Lender at the interest
               rates contemplated by STEP on the Closing Date for purposes of
               funding the Borrower under STEP, at the STEP Rate or (b) during
               any period of Term Loan A that the Borrower is ineligible, as
               determined by the State of Illinois' State Treasurer's Economic
               Program, to receive funds from STEP or the State of Illinois
               ceases to maintain funds on deposit with the Lender in the
               amounts and at the rates contemplated by clause (i)(a) above for
               purposes of funding the Borrower under STEP, at the rate set
               forth for Term Loan B in clause (ii) below;

        (ii)   with respect to Term Loan B, (a) for such portion of such Loan
               that is a Base Rate Loan, at a rate per annum equal to the Base
               Rate from time to time in effect and (b) for such portion of such
               Loan that is a Eurodollar Loan, at a rate per annum equal to the
               sum of the Eurodollar Rate (Reserve Adjusted) from time to time
               in effect plus the Applicable Margin;

provided that at any time an Event of Default exists the interest rate
applicable to the Loans shall be increased by 2.00%.

        3.2 Interest Payment Dates. Accrued interest on Term Loan A (to the
extent calculated at the STEP Rate) and each Base Rate Loan shall be payable in
arrears on the last Business Day of each calendar quarter and at the Termination
Date. Accrued interest on each Eurodollar Loan shall be payable on the last day
of each Interest Period relating to such Loan (and, in the case of a Eurodollar
Loan with a six-month Interest Period, on the three-month anniversary of the
first day of such Interest Period) and at the Termination Date. After the
Termination Date, accrued interest on all Loans shall be payable on demand.

        3.3 Setting and Notice of Eurodollar Rates. The applicable Eurodollar
Rate for each Interest Period shall be determined by the Lender. Each
determination of the applicable Eurodollar Rate by the Lender shall be
conclusive and binding upon the Borrower in the absence of demonstrable error.
The Lender shall upon written request of the Borrower deliver to the Borrower

                                       11
<PAGE>   12
a statement showing the computations used by the Lender in determining any
applicable Eurodollar Rate hereunder.

        3.4 Computation of Interest. All computations of interest shall be
computed for the actual number of days elapsed on the basis of a year of 360
days. The applicable interest rate for each Base Rate Loan shall change
simultaneously with each change in the Base Rate.

        3.5 Closing Fee. On the Closing Date, the Borrower will pay to the
Lender a fully earned and nonrefundable closing fee of $25,000.

                             SECTION 4: PREPAYMENTS

        The Borrower may from time to time prepay the Loans in whole or in part;
provided that the Borrower shall give the Lender notice thereof not later than
11:00 A.M., Chicago time, on the day of such prepayment (which shall be a
Business Day), specifying the Loans to be prepaid and the date and amount of
prepayment.

                  SECTION 5: MAKING OF PAYMENTS; SETOFF; TAXES

        5.1 Making of Payments. All payments on the Liabilities (including any
costs and expenses arising under Section 6) shall be made by the Borrower to the
Lender in immediately available funds at the office specified by the Lender not
later than 11:00 A.M., Chicago time, on the date due; and funds received after
that hour shall be deemed to have been received by the Lender on the next
following Business Day.

        5.2 Application of Certain Payments. Each payment of principal shall be
applied to the Loans as the Borrower shall direct by notice to be received by
the Lender on or before the date of such payment or, in the absence of such
notice, as the Lender shall determine in its discretion. After an Event of
Default has occurred and is continuing, the Lender may apply any payments as the
Lender shall determine in its sole discretion.

        5.3 Due Date Extension. If any payment on the Liabilities falls due on a
day that is not a Business Day, then such due date shall be extended to the
immediately following Business Day (unless, in the case of a Eurodollar Loan,
such immediately following Business Day is the first Business Day of a calendar
month, in which case such date shall be the immediately preceding Business Day)
and, in the case of principal, additional interest shall accrue and be payable
for the period of any such extension.

        5.4 Setoff. The Borrower agrees that the Lender has all rights of
set-off and bankers' lien provided by applicable law, and in addition thereto,
the Borrower agrees that at any time any Event of Default exists, the Lender may
apply to the payment of any obligations of the Borrower hereunder, whether or
not then due, any and all balances, credits, deposits, accounts or moneys of the
Borrower then or thereafter with the Lender.

        5.5 Taxes. All payments of principal of and interest on the Loans and
all other amounts payable hereunder shall be made free and clear of and without
deduction for any present or future

                                       12
<PAGE>   13
income, excise, stamp or franchise taxes and other taxes, fees, duties,
withholdings or other charges of any nature whatsoever imposed by any taxing
authority, but excluding franchise taxes and taxes imposed on or measured by the
Lender's net income or receipts (all nonexcluded items being called "Taxes"). If
any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any applicable law,
rule or regulation, then the Borrower will:

        (i)    pay directly to the relevant authority the full amount required
               to be so withheld or deducted;

        (ii)   promptly forward to the Lender an official receipt or other
               documentation satisfactory to the Lender evidencing such payment
               to such authority; and

        (iii)  pay to the Lender such additional amount or amounts as is
               necessary to ensure that the net amount actually received by the
               Lender will equal the full amount the Lender would have received
               had no such withholding or deduction been required.

Moreover, if any Taxes are directly asserted against the Lender with respect to
any payment received by the Lender hereunder, the Lender may pay such Taxes and
the Borrower will promptly pay such additional amounts (including any penalty,
interest and expense) as is necessary so that the net amount received by the
Lender after the payment of such Taxes (including any Taxes on such additional
amount) shall equal the amount the Lender would have received had such Taxes not
been asserted. If the Borrower fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to the Lender the required
receipts or other required documentary evidence, the Borrower shall indemnify
the Lender for any incremental Taxes, interest or penalties that may become
payable by the Lender as a result of any such failure.

                           SECTION 6: INCREASED COSTS;
                     SPECIAL PROVISIONS FOR EURODOLLAR LOANS

        6.1 Increased Costs. (a) If, after the Closing Date, the adoption of any
applicable law, rule or regulation, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by the Lender (or any Eurodollar Office of the Lender)
with any request or directive (whether or not having the force of law) of any
such authority, central bank or comparable agency:

        (i)    shall subject the Lender (or any Eurodollar Office of the Lender)
               to any tax, duty or other charge with respect to the Eurodollar
               Loans, the Notes or the Lender's obligation to make Eurodollar
               Loans, or shall change the basis of taxation of payments to the
               Lender of the principal of or interest on the Eurodollar Loans or
               any other amounts due under this Agreement in respect of the
               Eurodollar Loans or the Lender's obligation to make Eurodollar
               Loans (except for changes in the rate of tax on the overall net
               income of the Lender or its Eurodollar Office imposed by the
               jurisdiction in which the Lender's principal executive office or
               Eurodollar Office is located);

                                       13
<PAGE>   14
        (ii)   shall impose, modify or deem applicable any reserve (including
               any reserve imposed by the Board of Governors of the Federal
               Reserve System, but excluding any reserve included in the
               determination of interest rates pursuant to Section 3), special
               deposit or similar requirement against assets of, deposits with
               or for the account of, or credit extended by the Lender (or any
               Eurodollar Office of the Lender); or

        (iii)  shall impose on the Lender (or its Eurodollar Office) any other
               condition affecting the Eurodollar Loans, the Notes or the
               Lender's obligation to make Eurodollar Loans;

and the result of any of the foregoing is to increase the cost to or to impose a
cost on the Lender (or any Eurodollar Office of the Lender) of making or
maintaining any Eurodollar Loan, or to reduce the amount of any sum received or
receivable by the Lender (or its Eurodollar Office) under this Agreement or
under any Note, then upon demand by the Lender, the Borrower shall pay directly
to the Lender such additional amount as will compensate the Lender for such
increased cost or such reduction.

        (b) If the Lender shall determine that the adoption or phase-in of any
applicable law, rule or regulation regarding capital adequacy, or any change
therein, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by the Lender or any
Person controlling the Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of
return on the Lender's or such controlling Person's capital as a consequence of
the Lender's obligations hereunder to a level below that which the Lender or
such controlling Person could have achieved but for such adoption, change or
compliance (taking into consideration the Lender's or such controlling Person's
policies with respect to capital adequacy) by an amount deemed by the Lender or
such controlling Person to be material, then from time to time, upon demand by
the Lender, the Borrower shall pay to the Lender such additional amount or
amounts as will compensate the Lender or such controlling Person for such
reduction.

        6.2 Basis for Determining Interest Rate Inadequate or Unfair. If with
respect to any Interest Period:

        (i)    deposits in Dollars (in the applicable amounts) are not being
               offered to the Lender in the interbank eurodollar market for such
               Interest Period, or the Lender otherwise determines (which
               determination, if made in good faith, shall be binding and
               conclusive on the Borrower) that by reason of circumstances
               affecting the interbank eurodollar market adequate and reasonable
               means do not exist for ascertaining the applicable Eurodollar
               Rate; or

        (ii)   the Eurodollar Rate (Reserve Adjusted) as determined by the
               Lender will not adequately and fairly reflect the cost to the
               Lender of maintaining or funding such Eurodollar Loans for such
               Interest Period or that the making or funding of Eurodollar Loans
               has become impracticable as a result of an event occurring after
               the date of this Agreement;

                                       14
<PAGE>   15
then the Lender shall promptly notify the other parties thereof and, so long as
such circumstances shall continue, (a) the Lender shall be under no obligation
to make Eurodollar Loans and (b) on the last day of the current Interest Period
for each Eurodollar Loan, such Loan shall, unless then repaid in full,
automatically convert to a Base Rate Loan.

        6.3 Changes in Law Rendering Eurodollar Loans Unlawful. If any change in
(including the adoption of any new) applicable law or regulation, or any change
in the interpretation of applicable law or regulation by any governmental or
other regulatory body charged with the administration thereof, should make it
(or in the good faith judgment of the Lender cause a substantial question as to
whether it is) unlawful for the Lender to make, maintain or fund Eurodollar
Loans, then the Lender shall promptly notify the Borrower and, so long as such
circumstances shall continue, (i) the Lender shall have no obligation to make or
convert into Eurodollar Loans and (ii) on the last day of the current Interest
Period for each Eurodollar Loan of the Lender (or, in any event, on such earlier
date as may be required by the relevant law, regulation or interpretation), such
Eurodollar Loan shall, unless then repaid in full, automatically convert to a
Base Rate Loan.

        6.4 Funding Losses. The Borrower hereby agrees that upon demand by the
Lender, the Borrower will indemnify the Lender against any net loss or expense
that the Lender may sustain or incur (including any net loss or expense incurred
by reason of the liquidation or reemployment of deposits or other funds acquired
by the Lender to fund or maintain any Eurodollar Loan) as a result of any
payment or prepayment of any Eurodollar Loan (including any conversion of any
such Eurodollar Loan into a Base Rate Loan) on a date other than the last day of
an Interest Period for such Loan. For this purpose, all notices to the Lender
pursuant to this Agreement shall be deemed to be irrevocable.

        6.5 Right of Lender to Fund through Other Offices. The Lender may, if it
so elects, fulfill its commitment as to any Eurodollar Loan by causing a foreign
branch or affiliate of the Lender to make such Loan; provided that in such event
for the purposes of this Agreement such Loan shall be deemed to have been made
by the Lender and the obligation of the Borrower to repay such Loan shall
nevertheless be to the Lender and shall be deemed held by it, to the extent of
such Loan, for the account of such branch or affiliate.

        6.6 Discretion of Lender as to Manner of Funding. Notwithstanding any
provision of this Agreement to the contrary, the Lender shall be entitled to
fund and maintain its funding of the Loans in any manner it sees fit, it being
understood, however, that for the purposes of this Agreement all determinations
hereunder shall be made as if the Lender had actually funded and maintained each
Eurodollar Loan during each Interest Period for such Loan through the purchase
of deposits having a maturity corresponding to such Interest Period and bearing
an interest rate equal to the Eurodollar Rate for such Interest Period.

        6.7 Conclusiveness of Statements; Survival of Provisions. Determinations
and statements of the Lender pursuant to Section 6.1, 6.2, 6.3 or 6.4 shall be
conclusive absent manifest error. The Lender may use reasonable averaging and
attribution methods in determining compensation under Sections 6.1 and 6.4, and
the provisions of such Sections shall survive repayment of the Loans,
cancellation of the Notes and any termination of this Agreement.

                                       15
<PAGE>   16
                    SECTION 7: REPRESENTATIONS AND WARRANTIES

        To induce the Lender to enter into this Agreement and to induce the
Lender to make the Loans, the Borrower represents and warrants to the Lender
that, as of the Closing Date:

        7.1 Organization. The Borrower is a corporation duly incorporated,
validly existing and in good standing under the laws of its jurisdiction of
incorporation. The Borrower is in good standing and is duly qualified to do
business in the States of California, Colorado, Illinois, Indiana and Texas, the
Commonwealth of Massachusetts and each other jurisdiction where, because of the
nature of its activities or properties, such qualification is required, except
for such jurisdictions where the failure so to qualify would not have a Material
Adverse Effect.

        7.2 Authorization; No Conflict. The Borrower is duly authorized to
execute and deliver each Loan Document to which it is a party, the Borrower is
duly authorized to borrow monies under this Agreement and the Borrower is and
will continue to be duly authorized to perform its obligations under each Loan
Document to which it is a party. The execution, delivery and performance by the
Borrower of this Agreement and of each Loan Document to which it is a party, and
the borrowings by the Borrower under this Agreement, do not and will not (i)
require any consent or approval of any governmental agency or authority that has
not been obtained or (ii) conflict with (a) any provision of law, (b) the
articles of incorporation or by-laws of the Borrower, (c) any material agreement
binding upon the Borrower or its properties or assets or (d) any court or
administrative order or decree applicable to the Borrower, and do not and will
not require, or result in, the creation or imposition of any Lien on any asset
of the Borrower or any of its Subsidiaries.

        7.3 Validity and Binding Nature. Each of this Agreement and each other
Loan Document to which the Borrower is a party is the legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms.

        7.4 Financial Condition. The audited financial statements of the
Borrower as of and for the fiscal years ended September 30, 1998, and September
30, 1999, and unaudited financial statements of the Borrower for the portion of
fiscal year 2000 up to and including December 31, 1999, copies of which have
been furnished prior to the Closing Date to the Lender, fairly present in all
material respects the assets, liabilities, revenues, expenses and cash flows of
the Borrower as of the dates thereof and the results of operations for the
periods covered thereby. The Borrower has no liability or unusual or long-term
commitment that might have a Material Adverse Effect and that is not reflected
in the financial statements referred to above.

        7.5 No Material Adverse Change. Since September 30, 1999, there has been
no event that has had or could be reasonably likely to have a Material Adverse
Effect.

        7.6 Litigation and Contingent Liabilities. Except as set forth in
Schedule 7.6, no litigation (including derivative actions), arbitration
proceeding or governmental investigation or proceeding is pending or, to the
Borrower's knowledge, threatened against the Borrower or any Subsidiary which
might reasonably be expected to have a Material Adverse Effect. There are no
injunctions or temporary restraining orders (either pending or, to the
Borrower's knowledge, threatened) that would prohibit the making of Loans. Other
than any liability incident to such

                                       16
<PAGE>   17
litigation or proceedings, neither the Borrower nor any Subsidiary has any
contingent liabilities not listed on Schedule 7.6 or permitted by Section 8.7.

        7.7 Taxes. The Borrower has filed, has caused to be filed or has been
included in all tax returns (federal, state, local, foreign and other material
tax returns) required to be filed by or on behalf of the Borrower and has paid
or caused to be paid all taxes and other governmental charges due for the
periods covered thereby, including interest and penalties, other than any such
taxes or charges (i) for which a timely and proper extension has been obtained
and (ii) that are being contested in good faith and by proper proceedings and as
to which appropriate reserves (in the reasonable judgment of the Lender) are
being maintained, unless and until any Lien resulting therefrom attaches to its
property and becomes enforceable against its other creditors. The reserves for
taxes reflected on the balance sheets of the Borrower submitted to the Lender in
accordance with the terms of Section 8.1 will be adequate in amount in
accordance with GAAP for the payment of all liabilities for all taxes (whether
or not disputed) of the Borrower accrued through the date of such balance sheet.

        7.8 Information. All information heretofore or contemporaneously with
this Agreement furnished in writing by the Borrower to the Lender for purposes
of or in connection with this Agreement and the transactions contemplated by
this Agreement is, and all written information hereafter furnished by or on
behalf of the Borrower or any Subsidiary to the Lender pursuant to this
Agreement or any other Loan Document or in connection with this Agreement will
be, true and accurate in every material respect on the date as of which such
information is dated or certified, and none of such information is or will be
incomplete by omitting to state any material fact necessary to make such
information not misleading in light of the circumstances under which made (it
being recognized by the Lender that any projections and forecasts provided by
the Borrower are based on good faith estimates and assumptions believed by the
Borrower to be reasonable as of the date of the applicable projections or
assumptions and that actual results during the period or periods covered by any
such projections and forecasts may differ from projected or forecasted results).

        7.9 Solvency. On the Closing Date, and immediately prior to and after
giving effect to the issuance of the Loans and the use of the proceeds thereof,
(i) the Borrower's assets will exceed its liabilities and (ii) the Borrower will
be solvent, will be able to pay its debts as they mature, will own property with
fair saleable value greater than the amount required to pay its debts and will
have capital sufficient to carry on its business as then constituted.

        7.10 No Default. No Event of Default or Unmatured Event of Default
exists or would result from the incurring by the Borrower of any Indebtedness
under this Agreement or under any other Loan Document. No contract or other
agreement to which the Borrower or any Subsidiary is a party has been terminated
or breached by the Borrower or any Subsidiary if such termination or breach
could have a Material Adverse Effect.

        7.11 Use of Proceeds. The Borrower will apply the proceeds of the Loans
under this Agreement to (i) partially finance the construction of a
manufacturing and distribution center in Aurora, Illinois and (ii) make the
Cabot Dividend.

        7.12   Subsidiaries.  The Borrower has no Subsidiaries.

                                       17
<PAGE>   18
        7.13 Ownership of Properties; Liens. Except as permitted pursuant to
Section 8.8, each of the Borrower and each Subsidiary owns good title to all of
its personal properties and assets, tangible and intangible, of any nature
whatsoever (including patents, trademarks, trade names, service marks and
copyrights), free and clear of all Liens, charges and claims (including
infringement claims with respect to patents, trademarks, service marks,
copyrights and the like).

        7.14 Intellectual Property. Except as set forth in Schedule 7.14, the
Borrower and each of its Subsidiaries owns and possesses or has a license or
other right to use all such patents, patent rights, trademarks, trademark
rights, trade names, trade name rights, service marks, service mark rights and
copyrights as are necessary for the conduct of the business of the Borrower and
its Subsidiaries as conducted on the Closing Date, without any infringement upon
rights of others which could reasonably be expected to have a Material Adverse
Effect.

        7.15 Insurance. Set forth on Schedule 7.15 is a complete and accurate
summary of the property and casualty insurance program of the Borrower and its
Subsidiaries as of the Closing Date (including the names of all insurers, policy
numbers, expiration dates, amounts and types of coverage, annual premiums,
exclusions, deductibles, self-insured retention and a description in reasonable
detail of any self-insurance program, retrospective rating plan, fronting
arrangement or other risk assumption arrangement involving the Borrower or any
Subsidiary).

        7.16 Investment Company Act; Public Utility Holding Company Act. Neither
the Borrower nor any Subsidiary is an "investment company" or a company
"controlled" by an "investment company", within the meaning of the Investment
Company Act of 1940. Neither the Borrower nor any Subsidiary is a "holding
company", or a "subsidiary company" of a "holding company", or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company", within
the meaning of the Public Utility Holding Company Act of 1935.

        7.17 Regulation U. The Borrower is not engaged principally, or as one of
its important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

        7.18 Securities Matters. The making of the Loans, the application of the
proceeds and repayment thereof by the Borrower and the consummation of the
transactions contemplated by this Agreement and the other Loan Documents will
not violate any provision of any federal or state securities statutes, rules or
regulations, or any order issued by the Securities and Exchange Commission
(collectively, the "Securities Laws"). The Borrower agrees to indemnify the
Lender and hold the Lender harmless from the claims of any Persons in connection
with any of the Securities Laws and relating to the making of the Loans or the
transactions contemplated by this Agreement and the other Loan Documents.

        7.19 Pension and Welfare Plans. (a) Except as set forth in Schedule
7.19, during the twelve-consecutive-month period prior to the date of the
execution and delivery of this Agreement, (i) no steps have been taken to
terminate any Pension Plan and (ii) no contribution failure has occurred with
respect to any Pension Plan sufficient to give rise to a Lien under Section
302(f) of ERISA. No condition exists or event or transaction has occurred with
respect to any Pension Plan which could result in the incurrence by the Borrower
of any material liability, fine or penalty. The Borrower has no contingent
liability with respect to any post-retirement benefit under a Welfare

                                       18
<PAGE>   19
Plan, other than liability for continuation coverage described in Part 6 of
Subtitle B of Title I of ERISA.

        (b) Except as set forth in Schedule 7.19, all contributions (if any)
have been made to any Multiemployer Pension Plan that are required to be made by
the Borrower or any other member of the Controlled Group under the terms of the
plan or of any collective bargaining agreement or by applicable law; neither the
Borrower nor any member of the Controlled Group has withdrawn or partially
withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability
with respect to any such plan, received notice of any claim or demand for
withdrawal liability or partial withdrawal liability from any such plan, and no
condition has occurred which, if continued, might result in a withdrawal or
partial withdrawal from any such plan; and neither the Borrower nor any member
of the Controlled Group has received any notice that any Multiemployer Pension
Plan is in reorganization, that increased contributions may be required to avoid
a reduction in plan benefits or the imposition of any excise tax, that any such
plan is or has been funded at a rate less than that required under Section 412
of the Code, that any such plan is or may be terminated, or that any such plan
is or may become insolvent.

        7.20   Environmental Matters.

        (a) To the best of the Borrower's knowledge, neither the Borrower nor
any Subsidiary, nor any operator of the Borrower's or any Subsidiary's
properties, is in violation, or alleged violation, of any judgment, decree,
order, law, permit, license, rule or regulation pertaining to environmental
matters, including those arising under RCRA, CERCLA, the Superfund Amendments
and Reauthorization Act of 1986 or any other Environmental Law which might
reasonably be expected to have a Material Adverse Effect.

        (b) Except for matters arising which would, individually, be expected to
have a Material Adverse Effect, neither the Borrower nor any Subsidiary has
received notice from any third party, including any federal, state or local
governmental authority (i) that any one of them has been identified by the
United States Environmental Protection Agency as a potentially responsible party
under CERCLA with respect to a site listed on the National Priorities List, 40
C.F.R. Part 300 Appendix B, (ii) that any hazardous waste, as defined by 42
U.S.C. Section 6903(5), any hazardous substance as defined by 42 U.S.C.
Section 9601(14), any pollutant or contaminant as defined by 42 U.S.C.
Section 9601(33) or any toxic substance, oil or hazardous material or other
chemical or substance regulated by any Environmental Law (all of the foregoing,
"Hazardous Substances"), which any one of them has generated, transported or
disposed of has been found at any site at which a federal, state or local agency
or other third party has conducted a remedial investigation, removal or other
response action pursuant to any Environmental Law, (iii) that the Borrower or
any Subsidiary must conduct a remedial investigation, removal, response action
or other activity pursuant to any Environmental Law or (iv) of any Environmental
Claim.

        (c) Except as set forth on Schedule 7.20, (i) no portion of any real
property or other assets of the Borrower or any Subsidiary has been used for the
handling, processing, storage or disposal of Hazardous Substances except in
accordance in all material respects with applicable Environmental Laws, (ii) in
the course of any activities conducted by the Borrower, any Subsidiary or the
operators of any real property of the Borrower or any Subsidiary, no Hazardous
Substances have been generated or are being used on such properties except in
accordance in all material

                                       19
<PAGE>   20
respects with applicable Environmental Laws, (iii) there have been no Releases
or threatened Releases of Hazardous Substances on, upon, into or from any real
property or other assets of the Borrower or any Subsidiary, which might
reasonably be expected to have a Material Adverse Effect, (iv) there have been
no Releases on, upon, from or into any real property in the vicinity of any real
property or other assets of the Borrower or any Subsidiary which, through soil
or groundwater contamination, may have come to be located on, and which might
reasonably be expected to have a Material Adverse Effect and (v) any Hazardous
Substances generated by the Borrower and its Subsidiaries have been transported
offsite only by properly licensed carriers and delivered only to treatment or
disposal facilities maintaining valid permits as required under applicable
Environmental Laws, which transporters and facilities have been and are
operating in compliance in all material respects with such permits and
applicable Environmental Laws.

        7.21 Labor Matters. Neither the Borrower nor any Subsidiary is subject
to any labor or collective bargaining agreement. There are no existing or
threatened strikes, lockouts or other labor disputes involving the Borrower or
any Subsidiary that singly or in the aggregate could reasonably be expected to
have a Material Adverse Effect. Hours worked by and payment made to employees of
the Borrower and its Subsidiaries are not in violation of the Fair Labor
Standards Act or any other applicable law, rule or regulation dealing with such
matters.

        7.22 Year 2000 Issues. The computer systems in the Borrower's business
are capable of the following before, during or after January 1, 2000 ("Year 2000
Compliant"): (i) handling date information involving all and any dates before,
during and/or after January 1, 2000, including accepting input, providing output
and performing date calculations in whole or in part; (ii) operating accurately
without interruption on and in respect of any and all dates before, during
and/or after January 1, 2000 and without any change in performance; (iii)
responding to and processing two digit year input without creating any ambiguity
as to the century; and (iv) storing and providing date input information without
creating any ambiguity as to the century.

        7.23 Survival of Warranties. All representations contained in this
Agreement and the other Loan Documents survive the execution and delivery of
this Agreement.

                              SECTION 8: COVENANTS

        Until the Termination Date and thereafter until all Liabilities of the
Borrower are paid in full, the Borrower agrees that it will:

        8.1 Reports, Certificates and Other Information. Furnish to the Lender:

        (a)    promptly when available and in any event within 120 days after
               the close of each fiscal year (i) a copy of the annual audit
               report of the Borrower and its Subsidiaries for such fiscal year,
               including therein consolidated balance sheets of the Borrower and
               its Subsidiaries as of the end of such fiscal year and
               consolidated statements of earnings and cash flow of the Borrower
               and its Subsidiaries for such fiscal year, audited by an
               accounting firm reasonably acceptable to the Lender and (ii)
               consolidating balance sheets of the Borrower and its Subsidiaries
               as of the end of such fiscal year and a consolidating statement
               of earnings for the Borrower and its Subsidiaries for such fiscal
               year, together with a comparison of the preceding fiscal year,
               certified by a Responsible Officer of the Borrower;

                                       20
<PAGE>   21
        (b)    promptly when available and in any event within 45 days after the
               end of each fiscal quarter (except the last fiscal quarter) of
               each fiscal year, consolidated balance sheets of the Borrower and
               its Subsidiaries as of the end of such fiscal quarter, together
               with consolidated statements of earnings for such fiscal quarter
               and for the period beginning with the first day of such fiscal
               year end ending on the last day of such fiscal quarter, together
               with a comparison with the corresponding period of the previous
               fiscal year, certified by a Responsible Officer of the Borrower;

        (c)    contemporaneously with the furnishing of a copy of each annual
               audit report pursuant to Section 8.1(a) and each set of quarterly
               statements pursuant to Section 8.1(b), so long as any Liabilities
               are outstanding at such time, a duly completed compliance
               certificate in the form of Exhibit B, with appropriate
               insertions, dated the date of such annual report or such
               quarterly statement and signed by a Responsible Officer of the
               Borrower, containing a computation of each of the financial
               ratios and restrictions set forth in Section 8.6 and to the
               effect that such officer has not become aware of any Event of
               Default or Unmatured Event of Default that has occurred and is
               continuing or, if there is any such event, describing it and the
               steps, if any, being taken to cure it;

        (d)    promptly upon the filing or sending thereof, copies of all
               regular, periodic or special reports of any Affiliate of the
               Borrower filed with the Securities and Exchange Commission (the
               "SEC"); copies of all registration statements of any Affiliate of
               the Borrower filed with the SEC (other than on Form S-8); and
               copies of all proxy statements or other communications made to
               security holders generally (in each case only to the extent such
               reports or filings include or incorporate the financial results
               of the Borrower or any Subsidiary);

        (e)    promptly upon becoming aware of any of the following, written
               notice describing the same and the steps being taken by the
               Borrower or the Subsidiary affected thereby with respect thereto:

               (i)   the occurrence of an Event of Default or an Unmatured Event
                     of Default;

               (ii)  any litigation, arbitration or governmental investigation
                     or proceeding not previously disclosed by the Borrower to
                     the Lender that has been instituted or, to the knowledge of
                     the Borrower, is threatened against the Borrower or any
                     Subsidiary or to which any of the properties of any thereof
                     is subject that might reasonably be expected to have a
                     Material Adverse Effect;

               (iii) the institution of any steps by any member of the
                     Controlled Group or any other Person to terminate any
                     Pension Plan, or the failure of any member of the
                     Controlled Group to make a required contribution to any
                     Pension Plan (if such failure is sufficient to give rise to
                     a Lien under Section 302(f) of ERISA) or to any
                     Multiemployer Pension Plan, or the taking of any action
                     with respect to a Pension Plan which could result in the
                     requirement that the Borrower furnish a bond or other
                     security to the PBGC or such Pension Plan, or the
                     occurrence

                                       21
<PAGE>   22
                     of any event with respect to any Pension Plan or
                     Multiemployer Pension Plan which could result in the
                     incurrence by any member of the Controlled Group of any
                     material liability, fine or penalty (including any claim or
                     demand for withdrawal liability or partial withdrawal from
                     any Multiemployer Pension Plan), or any material increase
                     in the contingent liability of the Borrower with respect to
                     any post-retirement Welfare Plan benefit, or any notice
                     that any Multiemployer Pension Plan is in reorganization,
                     that increased contributions may be required to avoid a
                     reduction in plan benefits or the imposition of an excise
                     tax, that any such plan is or has been funded at a rate
                     less than that required under Section 412 of the Code, that
                     any such plan is or may be terminated, or that any such
                     plan is or may become insolvent;

               (iv)  any cancellation or material change in any insurance
                     maintained by the Borrower or any Subsidiary; or

               (v)   any event (including (a) any violation of any Environmental
                     Law or the assertion of any Environmental Claim or (b) the
                     enactment or effectiveness of any law, rule or regulation)
                     which might reasonably be expected to have a Material
                     Adverse Effect;

        (f)    promptly upon the request of the Lender, copies of all detailed
               financial and management reports submitted to the Borrower by
               independent auditors in connection with each annual or interim
               audit made by such auditors of the books of the Borrower;

        (g)    promptly from time to time, copies of any notices (including,
               without limitation, notices of default or acceleration) received
               from any holder or trustee of, under or with respect to any
               Indebtedness; and

        (h)    from time to time such other information concerning the Borrower,
               its Subsidiaries and its Affiliates, as the Lender may reasonably
               request.

        8.2 Maintenance of Existence. Maintain and preserve, and cause each
Subsidiary to maintain and preserve, (i) its existence and good standing in the
jurisdiction of its organization and (ii) its qualification and good standing as
a foreign corporation in each jurisdiction where the nature of its business
makes such qualification necessary (except in those instances in which the
failure to be qualified or in good standing could not have a Material Adverse
Effect).

        8.3 Compliance with Laws; Payment of Taxes and Liabilities. (i) Comply,
and cause each Subsidiary to comply, in all material respects with all
applicable laws (including Environmental Laws), rules, regulations, decrees,
orders, judgments, licenses and permits, except where failure to comply could
not reasonably be expected to have a Material Adverse Effect and (ii) pay, and
cause each Subsidiary to pay, prior to delinquency, all taxes and other
governmental charges against it or any of its property, as well as claims of any
kind which, if unpaid, might become a Lien on any of its property; provided that
the foregoing shall not require the Borrower or any Subsidiary to pay any such
tax or charge so long as it shall contest the validity thereof in good faith by
appropriate

                                       22
<PAGE>   23
proceedings and shall set aside on its books adequate reserves with respect
thereto in accordance with GAAP.

        8.4 Maintenance of Insurance. Maintain, and cause each Subsidiary to
maintain, with responsible insurance companies, such insurance as may be
required by any law or governmental regulation or court decree or order
applicable to it and such other insurance, to such extent and against such
hazards and liabilities (including business interruption insurance), as is
customarily maintained by companies similarly situated, but which shall insure
against all risks and liabilities of the type identified on Schedule 7.15 and
shall have insured amounts no less than, and deductibles no higher than, those
set forth on such schedule; and, upon request of the Lender, furnish to the
Lender a certificate setting forth in reasonable detail the nature and extent of
all insurance maintained by the Borrower and its Subsidiaries.

        8.5 Books, Records and Inspections. Keep, and cause each Subsidiary to
keep, its books and records in accordance with sound business practices
sufficient to allow the preparation of financial statements in accordance with
GAAP. The Borrower shall permit, and cause each Subsidiary to permit, at any
reasonable time and with reasonable notice (or at any time without notice if an
Event of Default exists), the Lender or any representative thereof to visit any
or all of its offices, to discuss its financial matters with its officers and
its independent auditors (and the Borrower authorizes such independent auditors
to discuss such financial matters with the Lender or any representative
thereof), and to examine (and, at the expense of the Borrower or the applicable
Subsidiary, photocopy extracts from) any of its books or other records.

        8.6    Financial Covenants.

        (i)    Not permit the ratio of (a) the sum of (i) the Borrower's
               investments described in Sections 8.11(ii) and 8.11(iii), plus
               (ii) the Borrower's right to payment for goods sold or leased or
               for services rendered, whether or not evidenced by an instrument
               or chattel paper and whether or not yet earned by performance, in
               each case to the extent classified as current assets under GAAP,
               to (b) current liabilities (as determined according to GAAP) plus
               all outstanding revolving loans under the Revolving Credit
               Facility to be, on a consolidated basis, less than 1.25 to 1.00
               at any time.

        (ii)   Not permit its Leverage Ratio to be greater than 2.25 to 1.00 at
               any time, as measured on the last day of each fiscal quarter of
               the Borrower on a consolidated basis for the four consecutive
               fiscal quarters most recently ended.

        (iii)  Not permit the ratio of (a) the sum of (1) Consolidated Net
               Income (or Loss) for such period plus (2) to the extent deducted
               in determining such Consolidated Net Income (or Loss), (A)
               consolidated gross interest expense (including all commissions,
               discounts, fees and other charges in connection with standby
               letters of credit and similar instruments) accrued or paid by the
               Borrower and its Subsidiaries for such period (including all
               imputed interest on Capital Leases), determined in accordance
               with GAAP and (B) provisions for any income or similar taxes paid
               or accrued by the Borrower and its Subsidiaries minus (3)
               non-cash gains received by the Borrower during such period, in
               each case determined on a consolidated basis in accordance with
               GAAP, to (b) the consolidated gross interest expense (including
               all commissions, discounts, fees and other charges in connection
               with standby letters of

                                       23
<PAGE>   24
               credit and similar instruments) accrued or paid by the Borrower
               and its Subsidiaries (including all imputed interest on Capital
               Leases), determined in accordance with GAAP, to be less than 3.00
               to 1.00, as measured on the last day of each fiscal quarter of
               the Borrower on a consolidated basis for the four consecutive
               fiscal quarters most recently ended.

        (iv)   Not permit Consolidated Net Income (or Loss) of the Borrower and
               its Subsidiaries to be greater than (a) for any fiscal quarter,
               ($7,500,000) and (b) for any two consecutive fiscal quarters,
               ($10,000,000); it being understood that, by way of example,
               ($2,000,000) is greater than ($1,000,000).

        8.7 Limitations on Indebtedness. Not, and not permit any Subsidiary to,
create, incur, assume or suffer to exist any Indebtedness, except:

        (i)    obligations in respect of the Loans;

        (ii)   (a) Indebtedness incurred in connection with the acquisition
               after the Closing Date of any real or personal property by the
               Borrower or such Subsidiary or under any Capital Lease; provided
               that the aggregate principal amount of such Indebtedness shall
               not exceed $5,000,000 outstanding at any time, (b) unsecured
               Indebtedness incurred under the Revolving Credit Facility;
               provided that the aggregate principal amount of such Indebtedness
               shall not exceed $25,000,000 outstanding at any time and (c)
               Indebtedness incurred or assumed in connection with Permitted
               Acquisitions;

        (iii)  Indebtedness of Subsidiaries owed to the Borrower and unsecured
               Indebtedness of the Borrower to owed to Subsidiaries; and

        (iv) Indebtedness listed on Schedule 8.7.

        8.8 Liens. Not, and not permit any Subsidiary to, create or permit to
exist any Lien on any of its real or personal properties, assets or rights of
whatsoever nature (whether now owned or hereafter acquired), except:

        (i)    Liens for taxes or other governmental charges not at the time
               delinquent or thereafter payable without penalty or being
               contested in good faith by appropriate proceedings and, in each
               case, for which it maintains adequate reserves in accordance with
               GAAP;

        (ii)   Liens arising in the ordinary course of business (such as (i)
               Liens of carriers, warehousemen, mechanics and materialmen and
               other similar Liens imposed by law and (ii) Liens incurred in
               connection with worker's compensation, unemployment compensation
               and other types of social security (excluding Liens arising under
               ERISA) or in connection with surety bonds, bids, performance
               bonds and similar obligations) for sums not overdue or being
               contested in good faith by appropriate proceedings and not
               involving any deposits or advances or borrowed money or the
               deferred purchase price of property or services and, in each
               case, for which it maintains adequate reserves in accordance with
               GAAP;

                                       24
<PAGE>   25
        (iii)  (i) Liens arising in connection with Capital Leases (and
               attaching only to the property being leased), (ii) Liens existing
               on property at the time of the acquisition thereof by the
               Borrower or any Subsidiary (and not created in contemplation of
               such acquisition) and (iii) Liens that constitute purchase money
               security interests on any property securing debt incurred for the
               purpose of financing all or any part of the cost of acquiring
               such property; provided that any such Lien attaches to such
               property within 60 days of the acquisition thereof and such Lien
               attaches solely to the property so acquired;

        (iv)   attachments, appeal bonds, judgments and other similar Liens, for
               sums not exceeding $5,000,000 arising in connection with court
               proceedings; provided that the execution or other enforcement of
               such Liens is effectively stayed and the claims secured thereby
               are being actively contested in good faith and by appropriate
               proceedings;

        (v)    easements, rights of way, restrictions, minor defects or
               irregularities in title and other similar Liens not interfering
               in any material respect with the ordinary conduct of the business
               of the Borrower or any Subsidiary; and

        (vi) Liens identified on Schedule 8.8.

        8.9 Mergers, Consolidations, Sales. Will not, and not permit any
Subsidiary to, be a party to any merger or consolidation, or purchase or
otherwise acquire all or substantially all of the assets or any stock of any
class of, or any partnership or joint venture interest in, any other Person, or
sell, transfer, convey or lease any of its assets other than (i) sales in the
ordinary course of business of obsolete, damaged or worn-out equipment and
inventory and (ii) Permitted Acquisitions.

        8.10 Inconsistent Agreements; Negative Pledge. Not, and not permit any
Subsidiary to, enter into any agreement containing any provision which would (i)
be violated or breached by any borrowing of a Loan under this Agreement or by
the performance by the Borrower or any Subsidiary of any of its obligations
under this Agreement or under any other Loan Document, (ii) prohibit the
Borrower or any Subsidiary from granting to the Lender a Lien on any of its
assets (except in connection with the Revolving Credit Facility) or (iii) create
or otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any Subsidiary to (a) pay dividends or make other
distributions on its capital stock owned by the Borrower or any other
Subsidiary, or pay any Indebtedness owed to the Borrower or any other
Subsidiary, (b) make loans or advances to the Borrower or (c) transfer any of
its assets or properties to the Borrower.

        8.11 Advances and Other Investments. Not, and not permit any Subsidiary
to, make, incur, assume or suffer to exist any investment in another Person,
whether by acquisition of any debt or equity security, by making any loan or
advance or by becoming obligated with respect to Indebtedness in respect of
obligations of such other Person, except (without duplication) the following:

        (i)    Permitted Acquisitions;

                                       25
<PAGE>   26
        (ii)   (a) any evidence of Indebtedness, maturing not more than one year
               after such time, issued or guaranteed by the United States
               Government (or, in the case of foreign operations, any country
               that is a member of the OECD) or any agency of the foregoing, (b)
               commercial paper, maturing not more than one year from the date
               of issue, or corporate demand notes, in each case (unless issued
               by the Lender or its Affiliates) rated at least A-l by Standard &
               Poor's Ratings Group or P-l by Moody's Investors Service, Inc.,
               (c) any certificate of deposit (or time deposits represented by
               such certificates of deposit) or banker's acceptance, maturing
               not more than one year after such time, or overnight federal
               funds transactions that are issued or sold by the Lender or its
               Affiliates or by a commercial banking institution that is a
               member of the Federal Reserve System (or, in the case of foreign
               operations, a commercial banking institution organized under the
               laws of a country that is a member of the OECD) and has a
               combined capital and surplus and undivided profits of not less
               than $500,000,000 or (d) any repurchase agreement entered into
               with the Lender (or other commercial banking institution of the
               stature referred to in clause (c) above) which (1) is secured by
               a fully perfected security interest in any obligation of the type
               described in any of clauses (a) through (c) above and (2) has a
               market value at the time such repurchase agreement is entered
               into of not less than 100% of the repurchase obligation of the
               Lender (or other commercial banking institution) thereunder;

        (iii)  bank deposits and balances in the ordinary course of business;
               and

        (iv)   investments in securities of account debtors received pursuant to
               any plan of reorganization or similar arrangement upon the
               bankruptcy or insolvency of such account debtors.

        8.12 Restricted Payments. Not, and not permit any Subsidiary to, without
the prior written consent of the Lender, (i) issue any equity securities of the
Borrower or any Subsidiary in an offering of equity securities registered under
the Securities Act of 1933, (ii) make any distribution to any of its
shareholders, (iii) pay any management fees or similar fees to Cabot Corporation
or any Affiliate thereof or (iv) set aside funds for any of the foregoing, in
each case other than (a) issuance of equity securities of the Borrower in
connection with the initial public offering of such securities, (b) advances to
its employees in connection with expense reimbursements in the ordinary course
of business, (c) management fees to Cabot Corporation or any Affiliate thereof
under the management agreement among such parties as in effect on the Closing
Date, (d) dividends or distributions to the Borrower's shareholders in an
amount, determined in the aggregate for all such dividends or distributions made
in any fiscal year, not to exceed 50% of the Borrower's Consolidated Net Income
(or Loss) for such fiscal year and (e) the Cabot Dividend.

        8.13 Transactions with Affiliates. Except as set forth in Schedule 8.13,
not, and not permit any Subsidiary to, enter into, or cause, suffer or permit to
exist any transaction, arrangement or contract with any of its other Affiliates
(other than the Borrower and its Subsidiaries) which is on terms which are less
favorable than are obtainable from any Person which is not one of its
Affiliates.

        8.14 Restriction of Amendments to Revolving Credit Facility. Not amend
or otherwise modify, or waive any rights under, any agreement or instrument
relating to the Revolving Credit Facility if any such amendment, modification or
waiver would (i) increase the rate of interest (other

                                       26
<PAGE>   27
than with respect to the application of a default rate of interest), the fees
(other than in respect of amendment and waiver fees charged in the ordinary
course of business) or any prepayment premiums payable with respect to the
Revolving Credit Facility, (ii) add or change any covenants or events of default
in a manner materially more restrictive to the Borrower or any Subsidiary, (iii)
impose any express restrictions on the Borrower's ability to make payments on
the Liabilities or (iv) would give the agent or lenders under the Revolving
Credit Facility an express Lien on the assets of the Borrower or any Subsidiary.

        8.15 Compliance with STEP. Use its reasonable efforts to comply with the
requirements of STEP and maintain its eligibility to participate in STEP.

        8.16 Use of Proceeds. Use the proceeds of the Loans solely to (i)
partially finance the construction of a manufacturing and distribution center in
Aurora, Illinois and (ii) make the Cabot Dividend; and not use or permit any
proceeds of any Loan to be used, either directly or indirectly, for the purpose,
whether immediate, incidental or ultimate, of "purchasing or carrying" any
Margin Stock.

        8.17 Employee Benefit Plans. Maintain, and cause each Subsidiary to
maintain, each Pension Plan in substantial compliance with all applicable
requirements of law and regulations.

        8.18 Environmental Matters. (a) If any Release or Disposal of Hazardous
Substances shall occur or shall have occurred on any real property or any other
assets of the Borrower or any Subsidiary, the Borrower shall, or shall cause the
applicable Subsidiary to, cause the prompt containment and removal of such
Hazardous Substances and the remediation of such real property or other assets
as necessary to comply in all material respects with all Environmental Laws and
to preserve the value of such real property or other assets. Without limiting
the generality of the foregoing, the Borrower shall, and shall cause each
Subsidiary to, comply in all material respects with any valid federal or state
judicial or administrative order requiring the performance at any real property
of the Borrower or any Subsidiary of activities in response to the Release or
threatened Release of a Hazardous Substance.

        (b) To the extent that the transportation of "hazardous waste" as
defined by RCRA is permitted by this Agreement, the Borrower shall, and shall
cause its Subsidiaries to, dispose of such hazardous waste only at licensed
disposal facilities operating in compliance with Environmental Laws.

        8.19 Further Assurances. Take, and cause each Subsidiary to take, such
actions as are necessary, or as the Lender may reasonably request.

                 SECTION 9: EFFECTIVENESS; CONDITIONS OF LENDING

        The obligation of the Lender to make any Loan is subject to the
following conditions precedent (which conditions precedent must be satisfied by
no later than April 30, 2000):

        9.1 Documentation. The Lender shall have received all of the following,
each duly executed and dated the Closing Date (or such earlier date as shall be
satisfactory to the Lender), in form and substance satisfactory to the Lender:

                                       27
<PAGE>   28
        (a)    each Loan Document;

        (b)    certified copies of the Borrower's articles of incorporation and
               by-laws and long form good standing certificates and, if
               applicable, tax certificates, for all states where the nature and
               extent of the business transacted by the Borrower or the
               ownership of the Borrower's assets makes such qualification
               necessary;

        (c)    certified copies of resolutions of the board of directors of the
               Borrower authorizing the execution, delivery and performance by
               the Borrower of this Agreement and the Loan Documents to which
               the Borrower is a party;

        (d)    certified copies of all documents evidencing any necessary
               corporate or partnership action, consents and governmental
               approvals (if any) required for the execution, delivery and
               performance by the Borrower of the documents referred to in this
               Section 9.1;

        (e)    a certificate of the secretary or an assistant secretary of the
               Borrower certifying the names of the officer or officers of such
               entity authorized to sign the Loan Documents to which such entity
               is a party, together with a sample of the true signature of each
               such officer (it being understood that the Lender may
               conclusively rely on each such certificate until formally advised
               by a like certificate of any changes therein);

        (f)    a solvency certificate, substantially in the form of Exhibit C,
               executed by a Responsible Officer of the Borrower executed on
               behalf of such officer;

        (g)    a certificate signed by a Responsible Officer of the Borrower on
               behalf of the Borrower dated as of the Closing Date, affirming
               the matters set forth in Section 9.4 as of the Closing Date;

        (h)    Lien search results certified by a party acceptable to the
               Lender, dated a date reasonably near to the Closing Date, listing
               all effective financing statements that name the Borrower (under
               its present name and any previous names) as debtor and that are
               filed in the jurisdictions deemed necessary and appropriate by
               the Lender, together with (i) copies of such financing statements
               and (ii) executed copies of proper termination statements, if
               any, necessary to release all Liens and other rights of any
               Person described in such financing statements (other than Liens
               permitted by Section 8.8); and

        (i)    the opinion of Borrower's counsel covering such matters as are
               described on Exhibit D.

        9.2 Payment of Fees. The Borrowers will provide the Lender with evidence
of payment by the Borrower of all accrued and unpaid fees, costs and expenses to
the extent then due and payable on the Closing Date, together with all fees and
expenses of counsel to the Lender.

                                       28
<PAGE>   29
        9.3 Insurance. The Borrower will provide the Lender with evidence
satisfactory to the Lender of the existence of insurance required to be
maintained pursuant to Section 8.4.

        9.4 Compliance with Representations and Warranties, No Default. Both
before and after giving effect to the making of the Loans the following
statements shall be true and correct:

               (i)   the representations and warranties of the Borrower set
                     forth in this Agreement and the other Loan Documents shall
                     be true and correct in all material respects with the same
                     effect as if then made (except to the extent stated to
                     relate to a specific earlier date, in which case such
                     representations and warranties shall be true and correct as
                     of such earlier date); and

               (ii)  no Event of Default or Unmatured Event of Default shall
                     have then occurred and be continuing.

        9.5 Compliance with STEP. The Borrower will provide the Lender with
evidence satisfactory to the Lender that the Borrower qualifies for STEP and the
State of Illinois has deposited an amount equal to the original principal amount
of Term Loan A with the Lender at an interest rate equal to the STEP rate in
effect on the Closing Date.

        9.6 Other. The Borrowers will provide the Lender with such other
documents or information as the Lender may reasonably request.

                 SECTION 10: EVENTS OF DEFAULT AND THEIR EFFECT

        10.1 Events of Default. Each of the following shall constitute an Event
of Default under this Agreement:

        (a)    default in the payment of any principal or interest on the Loans
               when such principal and interest is due or declared due (whether
               by scheduled maturity, acceleration, demand or otherwise) or
               other Liabilities remain unpaid for five Business Days after
               notice to the Borrower;

        (b)    any default shall occur under the terms applicable to any
               indebtedness of the Borrower or any Subsidiary in an aggregate
               amount (for all such indebtedness so affected) exceeding
               $5,000,000 and such default shall (i) consist of the failure to
               pay such indebtedness when due, whether by acceleration or
               otherwise or (ii) accelerate the maturity of such indebtedness or
               permit the holder or holders thereof, or any trustee or agent for
               such holder or holders, to cause such indebtedness to become due
               and payable prior to its expressed maturity;

        (c)    the Borrower or any Subsidiary becomes insolvent or generally
               fails to pay, or admits in writing its inability or refusal to
               pay, debts as they become due; or the Borrower or any Subsidiary
               applies for, consents to, or acquiesces in the appointment of a
               trustee, receiver or other custodian for the Borrower or such
               Subsidiary or any property thereof, or makes a general assignment
               for the benefit of creditors; or, in the absence of such
               application, consent or acquiescence, a trustee, receiver or
               other

                                       29
<PAGE>   30
               custodian is appointed for the Borrower or any Subsidiary or for
               a substantial part of the property of any thereof and is not
               discharged within 30 days; or the bankruptcy, reorganization,
               debt arrangement, or other case or proceeding under the
               bankruptcy or insolvency law, or any dissolution or liquidation
               proceeding, is commenced in respect of the Borrower or any
               Subsidiary, and if such case or proceeding is not commenced by
               the Borrower or such Subsidiary, it is consented to or acquiesced
               in by the Borrower or such Subsidiary, or remains for 30 days
               undismissed; or the Borrower or any Subsidiary takes any action
               to authorize, or in furtherance of, any of the foregoing;

        (d)    failure by the Borrower to comply with or to perform any covenant
               (i) under Sections 8.2, 8.3, 8.4 and 8.17 and such failure
               remains unremedied for ten days after the earlier of (A) the
               Borrower's knowledge of such failure or (B) written notice of
               such failure by the Lender to the Borrower or (ii) under any
               other Section of this Agreement or any other Loan Document;

        (e)    any representation and warranty made by the Borrower herein or
               any other Loan Document is breached or is false or misleading in
               any material respect, or any schedule, certificate, financial
               statement, report, notice or other writing furnished by the
               Borrower to the Lender in connection herewith is false or
               misleading in any material respect on the date as of which the
               facts therein set forth are stated or certified;

        (f)    final judgments which exceed an aggregate of $5,000,000 shall be
               rendered against the Borrower or any Subsidiary and shall not
               have been paid, discharged or vacated or had execution thereof
               stayed pending appeal within 30 days after entry or filing of
               such judgments;

        (g)    (i) institution of any steps by the Borrower or any other Person
               to terminate a Pension Plan if as a result of such termination
               the Borrower could be required to make a contribution to such
               Pension Plan, or could incur a liability or obligation to such
               Pension Plan, in excess of $5,000,000, (ii) a contribution
               failure occurs with respect to any Pension Plan sufficient to
               give rise to a Lien under Section 302(f) of ERISA or (iii) there
               shall occur any withdrawal or partial withdrawal from a
               Multiemployer Pension Plan and the withdrawal liability (without
               unaccrued interest) to Multiemployer Pension Plans as a result of
               such withdrawal (including any outstanding withdrawal liability
               that the Borrower and the Controlled Group have incurred on the
               date of such withdrawal) exceeds $5,000,000; or

        (h)    a Change in Control shall occur.

        10.2 Effect of Event of Default. If any Event of Default described in
Section 10.1(c) shall occur, the Loans (if they have not theretofore terminated)
shall immediately terminate and all obligations hereunder shall become
immediately due and payable, all without presentment, demand, protest or notice
of any kind; and, if any other Event of Default shall occur and be continuing,
the Lender may declare the Loans (if they have not theretofore terminated) to be
terminated or declare all obligations hereunder to be due and payable, whereupon
the Loans (if they have not theretofore

                                       30
<PAGE>   31
terminated) shall immediately terminate and all obligations hereunder shall
become immediately due and payable, all without presentment, demand, protest or
notice of any kind. The Lender shall promptly advise the Borrower of any such
declaration, but failure to do so shall not impair the effect of such
declaration.

                               SECTION 11: GENERAL

        11.1 Waiver; Amendments. No delay on the part of the Lender in the
exercise of any right, power or remedy shall operate as a waiver thereof, nor
shall any single or partial exercise by any of them of any right, power or
remedy preclude other or further exercise thereof, or the exercise of any other
right, power or remedy. No amendment, modification or waiver of, or consent with
respect to, any provision of this Agreement or any Note shall in any event be
effective unless the same shall be in writing and signed and delivered by the
Lender and then any such amendment, modification, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

        11.2 Notices. All notices hereunder shall be in writing (including
facsimile transmission) and shall be sent to the applicable party at its address
shown on Schedule 11.2 or at such other address as such party may, by written
notice received by the other parties, have designated as its address for such
purpose. Notices sent by facsimile transmission shall be deemed to have been
given when sent; notices sent by mail shall be deemed to have been given three
Business Days after the date when sent by registered or certified mail, postage
prepaid; and notices sent by hand delivery or overnight courier service shall be
deemed to have been given when received.

        11.3 Costs, Expenses and Taxes. The Borrower agrees to pay on demand all
reasonable out-of-pocket costs and expenses of the Lender (including the
reasonable fees and charges of counsel for the Lender and of local counsel, if
any, who may be retained by said counsel) in connection with the preparation,
execution, syndication, delivery and administration of this Agreement, the other
Loan Documents and all other documents provided for herein or delivered or to be
delivered hereunder or in connection herewith (including any amendments,
supplements or waivers to any Loan Documents), and all reasonable out-of-pocket
costs and expenses (including reasonable attorneys' fees, court costs and other
legal expenses and allocated costs of staff counsel) incurred by the Lender in
connection with the enforcement of this Agreement, the other Loan Documents or
any such other documents. In addition, the Borrower agrees to pay, and to save
the Lender harmless from all liability for, any stamp or other taxes (excluding
income taxes and franchise taxes based on net income) that may be payable in
connection with the execution and delivery of this Agreement, the borrowings
hereunder, the issuance of the Notes or the execution and delivery of any other
Loan Document or any other document provided for herein or delivered or to be
delivered hereunder or in connection herewith. All obligations provided for in
this Section 11.3 shall survive repayment of the Loans and any termination of
this Agreement.

        11.4 Governing Law; Severability. This Agreement shall be a contract
made under and governed by the internal laws of the State of Illinois. Whenever
possible each provision of this Agreement shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement. All obligations of the

                                       31
<PAGE>   32
Borrower and rights of the Lender expressed herein or in any other Loan Document
shall be in addition to and not in limitation of those provided by applicable
law.

        11.5 Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts and
each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Agreement.

        11.6 Successors and Assigns. This Agreement shall be binding upon the
Borrower, the Lender and their respective successors and assigns, and shall
inure to the benefit of the Borrower and the Lender and the successors and
assigns of the Lender. If the Lender transfers or assigns any portion of its
rights under this Agreement to any Person then the Lender must transfer such
corresponding portion of STEP deposits made by the State of Illinois Treasury
Department to such assignee or transferee.

        11.7 Indemnification by the Borrower. In consideration of the execution
and delivery of this Agreement by the Lender and the agreement to make the Loans
under this Agreement, the Borrower hereby agrees to indemnify, exonerate and
hold the Lender and each of the officers, directors, employees, Affiliates and
agents of the Lender (each a "Lender Party") free and harmless from and against
any and all actions, causes of action, suits, losses, liabilities, damages and
expenses, including reasonable attorneys' fees and charges and allocated costs
of staff counsel (collectively, the "Indemnified Liabilities"), incurred by the
Lender Parties or any of them as a result of, or arising out of, or relating to
(i) any tender offer, merger, purchase of stock, purchase of assets (including,
without limitation, the Acquisition) or other similar transaction financed or
proposed to be financed in whole or in part, directly or indirectly, with the
proceeds of any of the Loans, (ii) the use, handling, release, emission,
discharge, transportation, storage, treatment or disposal of any hazardous
substance at any property owned or leased by the Borrower or any Subsidiary,
(iii) any violation of any Environmental Laws with respect to conditions at any
property owned or leased by the Borrower or any Subsidiary or the operations
conducted thereon, (iv) the investigation, cleanup or remediation of offsite
locations at which the Borrower or any Subsidiary or their respective
predecessors are alleged to have directly or indirectly disposed of hazardous
substances or (v) the execution, delivery, performance or enforcement of this
Agreement or any other Loan Document by any of the Lender Parties, except for
any such Indemnified Liabilities arising on account of any the Lender Party's
gross negligence or willful misconduct. If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Borrower hereby agrees to
make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable law. Nothing set
forth above shall be construed to relieve the Lender Party from any obligation
it may have under this Agreement. All obligations provided for in this Section
11.7 shall survive repayment of the Loans, any foreclosure under, or any
modification, release or discharge of any or all of the Loan Documents and any
termination of this Agreement.

        11.8 FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT, THE
NOTES OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN
THE COURTS OF THE STATE

                                       32
<PAGE>   33
OF ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ILLINOIS. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE
JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE. THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE BORROWER HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE
BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT, THE NOTE AND THE OTHER LOAN
DOCUMENTS.

        11.9 WAIVER OF JURY TRIAL. EACH OF THE BORROWER AND THE LENDER HEREBY
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS UNDER THIS AGREEMENT, THE NOTES, ANY OTHER LOAN DOCUMENT AND
ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE
FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY
BANKING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND
AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

            [The remainder of this page intentionally is left blank.]

                                       33
<PAGE>   34
        Delivered at Chicago, Illinois, as of the day and year first above
written.

                                             CABOT MICROELECTRONICS CORPORATION

                                             By
                                                   ----------------------------
                                             Title:

                                             LASALLE BANK NATIONAL ASSOCIATION

                                             By
                                                   ----------------------------
                                             Title: First Vice President

<PAGE>   35

                                  SCHEDULE 11.2

                              ADDRESSES FOR NOTICES

BORROWER

Cabot Microelectronics Corporation
870 Commons Drive
Aurora, Illinois 60504
Attention:
Telephone:
Facsimile:

LENDER

Jeffrey A. Raider
LaSalle Bank National Association
135 South LaSalle Street
Chicago, Illinois 60603
Telephone:     (312) 904-2766
Facsimile:     (312) 904-6546
<PAGE>   36
                                    EXHIBIT A

                                  FORM OF NOTE

                                                                          [date]
$[amount]                                                      Chicago, Illinois

         The undersigned, Cabot Microelectronics Corporation, a Delaware
corporation (the "Borrower"), for value received, promises to pay to the order
of LaSalle Bank National Association, a national banking association (the
"Lender"), at the office of the Lender in Chicago, Illinois, in immediately
available funds the principal amount of $[amount], such principal amount to be
payable on the dates set forth in the Credit Agreement dated as of March 29,
2000 (as amended or otherwise modified from time to time, the "Credit
Agreement"), between the Borrower and the Lender.

         The Borrower further promises to pay interest on the unpaid principal
amount evidenced by this promissory note (this "Note") from the date of this
Note until such indebtedness is paid in full, payable at the rates and at the
times set forth in the Credit Agreement. Payments of both principal and interest
are to be made in lawful money of the United States of America.

         This Note evidences indebtedness incurred under, and is subject to the
terms and provisions of, the Credit Agreement, to which reference is hereby made
for a statement of the terms and provisions under which this Note may or must be
paid prior to its due date or its due date accelerated.

         This Note is made under and governed by the internal laws of the State
of Illinois without regard to the conflict provisions thereof.

                                     CABOT MICROELECTRONICS CORPORATION

                                     By:
                                        -------------------------------------
                                     Title:

                                      A-1
<PAGE>   37
                                    EXHIBIT B

                         FORM OF COMPLIANCE CERTIFICATE

         Reference is made to the Credit Agreement dated as of March 29, 2000
(as amended or otherwise modified from time to time, the "Credit Agreement"),
between Cabot Microelectronics Corporation, a Delaware corporation (the
"Borrower"), and LaSalle Bank National Association, a national banking
association (the "Lender"). Capitalized terms used in this certificate and not
otherwise defined have the meanings assigned to such terms in the Credit
Agreement.

         The undersigned certifies to the Lender that he or she is a duly
elected, qualified and acting Responsible Officer of the Borrower and further
certifies as follows:

         1.   Reports. Enclosed herewith is a copy of the [annual
audited/quarterly report] of the Borrower as at _____________ (the "Computation
Date"), which report fairly presents in all material respects the financial
condition and results of operations [(subject to normal year-end adjustments)]
of the Borrower as of the Computation Date and has been prepared in accordance
with GAAP consistently applied.

         2.   Financial Tests. The Borrower hereby certifies and warrants to you
that the attached Schedule I contains the true and correct computations required
to establish whether the Borrower is in compliance with each of the financial
covenants and restrictions set forth in Section 8.6 of the Credit Agreement.

         3.   No Event of Default or Unmatured Event of Default. The Borrower
hereby certifies that no Event of Default or Unmatured Event of Default has
occurred and is continuing[, except: describe the nature of each Event of
Default or Unmatured Event of Default, the period of existence thereof and the
action taken or proposed to be taken with respect thereto].

Dated:
      -------------------

                                     CABOT MICROELECTRONICS CORPORATION

                                     By:
                                        -------------------------------------
                                     Title:

                                      B-1
<PAGE>   38
                                   SCHEDULE 1

                      Schedule 1 to Compliance Certificate
                                  dated as of:

<TABLE>
<S>      <C>                                                      <C>
A.       SECTION 8.6(A) - QUICK RATIO:

1.       Cash and Cash Equivalents                                ______________

2.       Accounts Receivable                                      ______________

3.       Item A1 plus item A2                                     ______________

4.       Current Liabilities (including outstanding revolving
         loans under the Revolving Credit Facility)               ______________

5.       Item A3 divided by item A4 (not to be less than
         1.25 to 1.00)                                            ______________

B.       SECTION 8.6(B) - LEVERAGE RATIO:

1.       Funded Debt                                              ______________

2.       Consolidated Net Income (or Loss)                        ______________

3.       Interest Expense                                         ______________

4.       Taxes                                                    ______________

5.       Depreciation                                             ______________

6.       Amortization                                             ______________

7.       Non-cash charges                                         ______________

8.       Items B2 through and including B7                        ______________

9.       Non-Cash Gains                                           ______________

10.      Item B8 minus item B9                                    ______________

11.      Item B1 divided by item B10 (not to be greater
         than 2.25 to 1.00)                                       ______________
</TABLE>

                                       1
<PAGE>   39
<TABLE>
<S>      <C>                                                      <C>
C.       SECTION 8.6(C) - INTEREST COVERAGE RATIO:

1.       Item B10 (above) minus items                             ______________
         B5 and B6 and B7 (above)

2.       Item C1 divided by item B3 (above) (not to be less
         than 3.00 to 1.00)                                       ______________

D.       SECTION 8.6(D) - CONSOLIDATED NET INCOME (OR LOSS):

1.       Consolidated Net Income (or Loss) (last quarter)         ______________
         (not to be greater than ($7,500,000))

2.       Consolidated Net Income (or Loss) (penultimate quarter)  ______________

3.       Item D1 plus item D2                                     ______________
         (not to be greater than ($10,000,000))
</TABLE>

                                       2
<PAGE>   40
                                    EXHIBIT C

                          FORM OF SOLVENCY CERTIFICATE

         Reference is made to the Credit Agreement dated as of March 29, 2000
(as amended or otherwise modified from time to time, the "Credit Agreement"),
between Cabot Microelectronics Corporation, a Delaware corporation (the
"Borrower"), and LaSalle Bank National Association, a national banking
association (the "Lender"). Capitalized terms used in this certificate and not
otherwise defined have the meanings assigned to such terms in the Credit
Agreement.

         The undersigned certifies to the Lender that he or she is a duly
elected, qualified and acting Responsible Officer of the Borrower and further
certifies as follows:

         1.   The Borrower has furnished the undersigned with a true, complete
and executed copy of the Credit Agreement as in effect on the date of this
certificate, and the undersigned has reviewed the Credit Agreement in its
entirety.

         2.   The undersigned is familiar with all of the Borrower's business
and financial affairs, including, without limitation, all of the matters
described in this certificate.

         3.   As of the date of this certificate, the Borrower is "solvent," and
the Borrower's incurrence of its obligations under the Credit Agreement will not
render the Borrower insolvent. For purposes of this certificate, a corporation
is "solvent" if:

         (a)      its assets exceed its liabilities;

         (b)      it is able to pay its debts as they mature;

         (c)      it owns property with fair salable value (including intangible
                  assets) greater than the amount required to pay its debts; and

         (d)      it has capital sufficient to carry on its business as then
                  constituted.

Dated:__________                     CABOT MICROELECTRONICS CORPORATION

                                     By:
                                        ---------------------------------------
                                     Title:

                                      C-0
<PAGE>   41
                                   EXHIBIT D

                     MATTERS TO BE COVERED BY LEGAL OPINION

         The Borrower will furnish to the Lender a legal opinion of counsel
representing the Borrower dated as of the Closing Date in form and substance
satisfactory to Lender to the effect, among other things, that:

-        The Borrower's due incorporation, existence and good standing in its
         state of incorporation.

-        The Borrower's due qualification and license to do business in the
         States of California, Colorado, Illinois, Indiana and Texas and the
         Commonwealth of Massachusetts.

-        The Borrower's requisite power and authority to execute, deliver and
         perform the Loan Documents to which it is a party and to own or lease
         and operate the properties it has acquired and to carry on its
         business, all as described in its constitutive documents.

-        The execution, delivery and performance by the Borrower of the Loan
         Documents to which it is a party are within its corporate powers and
         have been duly authorized by all necessary action of the Borrower.

-        The Loan Documents to which the Borrower is a party have been duly
         executed and delivered.

-        The Loan Documents to which the Borrower is a party are the legal,
         valid, binding and enforceable obligations of the Borrower, enforceable
         against the Borrower in accordance with their respective terms.

-        The execution, delivery and performance by the Borrower of the Loan
         Documents to which it is a party (i) will not conflict with or violate
         or constitute a default under (a) the Borrower's constitutive
         documents, (b) to the knowledge of such counsel after due inquiry, any
         order, judgment, award, decree, license or authorization of any court
         or governmental instrumentality, authority, bureau or agency binding on
         the Borrower, (c) to the knowledge of such counsel after due inquiry,
         any material financing agreement of the Borrower or (d) any provisions
         of applicable law and (ii) will not result in or require the creation
         or imposition of any Lien upon any property of the Borrower.

-        The execution, delivery and performance by the Borrower of the Loan
         Documents to which it is a party do not require any consents of third
         parties or governmental approvals of the United States or the State of
         Illinois.

-        No pending legal proceeding or threatened litigation against or
         directly affecting the Borrower.

-        The Borrower is not an "investment company" or a company "controlled
         by" an "investment company" as such terms are defined in the Investment
         Company Act of 1940, as amended.

-        The Borrower is not a "holding company" or a "subsidiary" of a "holding
         company" or an "affiliate" of a "holding company" as such terms are
         defined in the Public Utility Holding Company Act of 1935.

-        The transactions contemplated by the Loan Documents do not violate
         Regulation T, U or X of the Board of Governors of the Federal Reserve
         System.

                                       D-0
<PAGE>   42
                                CREDIT AGREEMENT

                           DATED AS OF MARCH 29, 2000,

                                     BETWEEN

                       CABOT MICROELECTRONICS CORPORATION

                                       AND

                        LASALLE BANK NATIONAL ASSOCIATION
<PAGE>   43
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  Page
<S>                                                                               <C>
SECTION 1:  INTERPRETATION 1
         1.1      Definitions ..................................................     1
         1.2      Computation of Time Periods ..................................     8
         1.3      Accounting Terms .............................................     8
         1.4      Headings and References ......................................     9
         1.5      Construction. ................................................     9

SECTION 2:  CREDIT .............................................................     9
         2.1      Term Loan A ..................................................     9
         2.2      Term Loan B ..................................................     9
         2.3      Various Types of Loans .......................................    10
         2.4      Conversion and Continuation Procedures .......................    10

SECTION 3:  INTEREST; FEES .....................................................    11
         3.1      Interest Rates ...............................................    11
         3.2      Interest Payment Dates .......................................    11
         3.3      Setting and Notice of Eurodollar Rates .......................    11
         3.4      Computation of Interest ......................................    11
         3.5      Closing Fee ..................................................    11

SECTION 4:  PREPAYMENTS ........................................................    12

SECTION 5:  MAKING OF PAYMENTS; SETOFF; TAXES ..................................    12
         5.1      Making of Payments ...........................................    12
         5.2      Application of Certain Payments ..............................    12
         5.3      Due Date Extension ...........................................    12
         5.4      Setoff .......................................................    12
         5.5      Taxes ........................................................    12

SECTION 6:  INCREASED COSTS; SPECIAL PROVISIONS
                    FOR EURODOLLAR LOANS .......................................    13
         6.1      Increased Costs ..............................................    13
         6.2      Basis for Determining Interest Rate Inadequate or Unfair .....    14
         6.3      Changes in Law Rendering Eurodollar Loans Unlawful ...........    14
         6.4      Funding Losses ...............................................    15
         6.5      Right of Lender to Fund through Other Offices ................    15
         6.6      Discretion of Lender as to Manner of Funding .................    15
         6.7      Conclusiveness of Statements; Survival of Provisions .........    15

SECTION 7:  REPRESENTATIONS AND WARRANTIES .....................................    15
         7.1      Organization .................................................    15
         7.2      Authorization; No Conflict ...................................    15
         7.3      Validity and Binding Nature ..................................    16
         7.4      Financial Condition ..........................................    16
</TABLE>

                                      -i-
<PAGE>   44
<TABLE>
<CAPTION>
<S>                                                                               <C>
         7.5      No Material Adverse Change ...................................    16
         7.6      Litigation and Contingent Liabilities ........................    16
         7.7      Taxes ........................................................    16
         7.8      Information ..................................................    17
         7.9      Solvency .....................................................    17
         7.10     No Default ...................................................    17
         7.11     Use of Proceeds ..............................................    17
         7.12     Subsidiaries .................................................    17
         7.13     Ownership of Properties; Liens ...............................    17
         7.14     Intellectual Property ........................................    17
         7.15     Insurance ....................................................    17
         7.16     Investment Company Act; Public Utility Holding Company Act ...    18
         7.17     Regulation U .................................................    18
         7.18     Securities Matters ...........................................    18
         7.19     Pension and Welfare Plans ....................................    18
         7.20     Environmental Matters. .......................................    19
         7.21     Labor Matters. ...............................................    19
         7.22     Year 2000 Issues .............................................    20
         7.23     Survival of Warranties .......................................    20

SECTION 8:  COVENANTS ..........................................................    20
         8.1      Reports, Certificates and Other Information ..................    20
         8.2      Maintenance of Existence. ....................................    22
         8.3      Compliance with Laws; Payment of Taxes and Liabilities .......    22
         8.4      Maintenance of Insurance .....................................    22
         8.5      Books, Records and Inspections ...............................    22
         8.6      Financial Covenants ..........................................    23
         8.7      Limitations on Indebtedness ..................................    23
         8.8      Liens ........................................................    24
         8.9      Mergers, Consolidations, Sales ...............................    24
         8.10     Inconsistent Agreements; Negative Pledge .....................    25
         8.11     Advances and Other Investments ...............................    25
         8.12     Restricted Payments ..........................................    26
         8.13     Transactions with Affiliates .................................    26
         8.14     Restriction of Amendments to Revolving Credit Facility .......    26
         8.15     Compliance with STEP .........................................    26
         8.16     Use of Proceeds ..............................................    26
         8.17     Employee Benefit Plans .......................................    26
         8.18     Environmental Matters ........................................    26
         8.19     Further Assurances ...........................................    27

SECTION 9:  EFFECTIVENESS; CONDITIONS OF LENDING ...............................    27
         9.1      Documentation ................................................    27
         9.2      Payment of Fees ..............................................    28
         9.3      Insurance ....................................................    28
         9.4      Compliance with Representations and Warranties, No Default ...    28
         9.5      Compliance with STEP .........................................    28
</TABLE>

                                      -ii-
<PAGE>   45
<TABLE>
<CAPTION>
<S>                                                                               <C>
         9.6      Other ........................................................    28

SECTION 10:  EVENTS OF DEFAULT AND THEIR EFFECT ................................    28
         10.1     Events of Default ............................................    28
         10.2     Effect of Event of Default ...................................    30

SECTION 11:  GENERAL ...........................................................    30
         11.1     Waiver; Amendments ...........................................    30
         11.2     Notices ......................................................    30
         11.3     Costs, Expenses and Taxes ....................................    30
         11.4     Governing Law; Severability ..................................    31
         11.5     Counterparts .................................................    31
         11.6     Successors and Assigns .......................................    31
         11.7     Indemnification by the Borrower ..............................    31
         11.8     FORUM SELECTION AND CONSENT TO JURISDICTION ..................    32
         11.9     Waiver of Jury Trial .........................................    32
</TABLE>

                                     -iii-
<PAGE>   46
                                      -iv-
<PAGE>   47
EXHIBITS

EXHIBIT A         Form of Note

EXHIBIT B         Form of Compliance Certificate

EXHIBIT C         Form of Solvency Certificate

EXHIBIT D         Matters to be Covered by Legal Opinion

SCHEDULES

SCHEDULE 7.6      Litigation and Contingent Liabilities

SCHEDULE 7.14     Intellectual Property

SCHEDULE 7.15     Insurance

SCHEDULE 7.19     Pension and Welfare Plans

SCHEDULE 7.20     Environmental Matters

SCHEDULE 8.7      Existing Indebtedness

SCHEDULE 8.8      Existing Liens

SCHEDULE 8.13     Transactions with Affiliates

SCHEDULE 11.2     Addresses for Notices

                                      -v-
<PAGE>   48

                                  SCHEDULES TO
                                CREDIT AGREEMENT
                                 BY AND BETWEEN
                       LASALLE BANK NATIONAL ASSOCIATION,
                                       AND

                       CABOT MICROELECTRONICS CORPORATION

                           DATED AS OF MARCH 31, 2000

<PAGE>   49
                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 7.6
                                       TO
                                CREDIT AGREEMENT

                                   LITIGATION

         In June 1998, one of Borrower's major competitors, Rodel Inc.
("RODEL"), filed a lawsuit against Cabot Corporation in the United States
District Court for the District of Delaware entitled Rodel, Inc. v. Cabot
Corporation (Civil Action No 98-352, the "ROBERTS LAWSUIT"). In this lawsuit,
Rodel has requested a jury trial and is seeking a permanent injunction and an
award of compensatory, punitive, and other damages relating to allegations that
Cabot is infringing United States Patent No. 4,959,113 (the "ROBERTS PATENT"),
which is owned by an affiliate of Rodel. Cabot filed an answer and counterclaim
seeking dismissal of the Roberts Lawsuit with prejudice, a judgment that Cabot
is not infringing the Roberts Patent and/or that the Roberts Patent is invalid,
and other relief. Cabot subsequently filed a motion for a summary judgment that
the Roberts Patent is invalid because all of the claims contained in the patent
were not sufficiently different under applicable patent law from subject matter
contained in previously granted patents, specifically United States Patents Nos.
4,705,566, 4,956,015 and 4, 929,257, each of which is owned by a third party not
affiliated with Rodel, Cabot Corporation or the Borrower. This motion was denied
on September 30, 1999 based on the court's finding that there were genuine
issues of material fact to be determined at trial. Although the Roberts Lawsuit
is presently in the discovery stage and trial is scheduled to begin in November
2000, the trial date has not yet been scheduled. After the ruling on the summary
judgment motion, Rodel filed a request for reexamination of the Roberts Patent
with the United States Patent and Trademark Office, which was granted on
November 12, 1999.

         In April 1999, Rodel commenced a second lawsuit (the "BRANCALEONI
LAWSUIT") against Cabot Corporation in the United States District Court for the
District of Delaware entitled Rodel, Inc. v. Cabot Corporation (Civil Action No.
99-256). In this lawsuit, Rodel has requested a jury trial and is seeking a
permanent injunction and an award of compensatory, punitive and other damages
relating to allegations that Cabot Corporation is infringing two other patents
owned by an affiliate of Rodel. These two patents are United States patent No.
5,391,258 and United States patent No. 5,476,606 (collectively, the "BRANCALEONI
PATENTS"). Cabot has filed an answer and counterclaim to the complaint seeking
dismissal of the complaint with prejudice, a judgment that Cabot Corporation is
not infringing the Brancaleoni Patents and/or that the Brancaleoni Patents are
invalid, and other relief. The Brancaleoni Lawsuit is presently in the discovery
stage. Trial is presently scheduled to commence on December 4, 2000. The parties
have jointly requested that the court extend this date.

         In the Roberts Lawsuit, the only product that Rodel to date has alleged
infringes the Roberts Patent is the Borrower's W2000 slurry, which is used to
polish tungsten and which currently accounts for a significant portion of our
total revenue. In the Brancaleoni Lawsuit, Rodel has not alleged that any
specific product infringes the Brancaleoni Patents; instead, Rodel alleges that
our United States Patent No. 5,858,813,

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   50
                                                   SCHEDULES TO CREDIT AGREEMENT

which relates to a CMP polishing slurry for metal surfaces including, among
other things, aluminum and copper, is evidence that Cabot Corporation is
infringing the Brancaleoni Patents through the manufacture and sales of
unspecified products.

         Although Cabot Corporation is the only named defendant in these
lawsuits, Borrower has indemnified Cabot Corporation for any and all losses and
expenses arising out of this litigation as well as any other litigation arising
out of our business.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   51
                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 7.14
                                       TO
                                CREDIT AGREEMENT

                              INTELLECTUAL PROPERTY

The contents of Schedule 7.6 above is hereby incorporated by reference as if
such the matters being disclosed therein were set forth in this Schedule 7.14 in
its entirety.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   52
                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 7.15
                                       TO
                                CREDIT AGREEMENT

                                    INSURANCE

An index of the Borrower's existing insurance has been previously provided to
the Lender.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   53

                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 7.19
                                       TO
                                CREDIT AGREEMENT

                            PENSION AND WELFARE PLANS

No exceptions.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   54
                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 7.20
                                       TO
                                CREDIT AGREEMENT

                                  ENVIRONMENTAL

No exceptions.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   55
                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 8.7
                                       TO
                                CREDIT AGREEMENT

                             PERMITTED INDEBTEDNESS

None.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   56

                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 8.8
                                       TO
                                CREDIT AGREEMENT

                                 PERMITTED LIENS

None.

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

<PAGE>   57

                                                   SCHEDULES TO CREDIT AGREEMENT

                                  SCHEDULE 8.13
                                       TO
                                CREDIT AGREEMENT

                          TRANSACTIONS WITH AFFILIATES

The following is an index of the various material agreements entered into by the
Borrower in connection with its separation from Cabot Corporation and its
emergence as a stand-alone entity:

1. Assumption of Liabilities Agreement dated as of March 28, 2000 by and between
Cabot Corporation, Cabot Carbon Ltd., Cabot Specialty Chemicals International
Corporation and together with Cabot Carbon and Cabot Microelectronics
Corporation.

2. General Assignment Agreement dated as of March 28, 2000 by and between Cabot
Corporation, Cabot Carbon Ltd., Cabot Specialty Chemicals International
Corporation and together with Cabot Carbon and Cabot Microelectronics
Corporation.

3. Master Separation Agreement dated as of March 28, 2000 by and among Cabot
Corporation and Certain Subsidiaries of Cabot Corporation and Cabot
Microelectronics Corporation.

4. Trademark License Agreement dated as of March 28, 2000 by and between Cabot
Corporation and Cabot Microelectronics Corporation.

5. Confidential Disclosure & License Agreement dated as of March 28, 2000 by and
between Cabot Corporation and Cabot Microelectronics Corporation.

6. Management Services Agreement dated as of March 28, 2000 by and Between Cabot
Corporation and Cabot Microelectronics Corporation.

7. Registration Rights Agreement dated as of March 28, 2000 by and between Cabot
Microelectronics Corporation and Cabot Corporation.

8. Initial Public Offering and Distribution Agreement dated as of March 28, 2000
by and between Cabot Corporation and Cabot Microelectronics Corporation.

9. Employee Matters Agreement dated as of March 28, 2000 by and between Cabot
Corporation and Cabot Microelectronics Corporation.

10. Tax Sharing Agreement by Cabot Corporation and Cabot Microelectronics
Corporation dated as of March 28, 2000

Unless otherwise defined herein, terms defined in the Credit Agreement shall
have the same meaning when used herein. Any matter disclosed or referenced in
any schedule to the Credit Agreement shall be deemed to have been disclosed on
all other schedules to the Credit Agreement where the applicability of such
disclosure is reasonably apparent on its face.

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