Document:

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                                                                     EXHIBIT 4.1

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                             ARGO-TECH CORPORATION,

                    THE SUBSIDIARY GUARANTORS PARTIES HERETO

                                       AND

                           BNY MIDWEST TRUST COMPANY,
                                   AS TRUSTEE

                          9 1/4% Senior Notes due 2011

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                                    INDENTURE

                            Dated as of June 23, 2004

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                                TABLE OF CONTENTS

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                                    ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.1. Definitions.......................................................................      1
SECTION 1.2. Other Definitions.................................................................     31
SECTION 1.3. Incorporation by Reference of Trust Indenture Act.................................     32
SECTION 1.4. Rules of Construction.............................................................     33

                                   ARTICLE II
                                 THE SECURITIES

SECTION 2.1. Form, Dating and Terms............................................................     34
SECTION 2.2. Execution and Authentication......................................................     42
SECTION 2.3. Registrar and Paying Agent........................................................     43
SECTION 2.4. Paying Agent to Hold Money in Trust...............................................     43
SECTION 2.5. Securityholder Lists..............................................................     44
SECTION 2.6. Transfer and Exchange.............................................................     44
SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to IAIs..........     47
SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers Pursuant to
                       Regulation S............................................................     49
SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities...................................     50
SECTION 2.10. Outstanding Securities...........................................................     51
SECTION 2.11. Temporary Securities.............................................................     52
SECTION 2.12. Cancellation.....................................................................     52
SECTION 2.13. Payment of Interest; Defaulted Interest..........................................     52
SECTION 2.14. Computation of Interest..........................................................     54
SECTION 2.15. CUSIP, Common Code and ISIN Numbers..............................................     54

                                   ARTICLE III
                                    COVENANTS

SECTION 3.1. Payment of Securities.............................................................     54
SECTION 3.2. Limitation on Indebtedness........................................................     55
SECTION 3.3. Limitation on Restricted Payments.................................................     59
SECTION 3.4. Limitation on Restrictions on Distributions from Restricted Subsidiaries..........     65
SECTION 3.5. Limitation on Sales of Assets and Subsidiary Stock................................     67
SECTION 3.6. Limitation on Liens...............................................................     70
SECTION 3.7. Limitation on Sale/Leaseback Transactions.........................................     71
SECTION 3.8. Limitation on Affiliate Transactions..............................................     71
SECTION 3.9. Limitation on Sale of Capital Stock of Restricted Subsidiaries....................     73
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<S>                                                                                                 <C>
SECTION 3.10. Change of Control................................................................     73
SECTION 3.11. SEC Reports......................................................................     75
SECTION 3.12. Future Subsidiary Guarantors.....................................................     75
SECTION 3.13. Maintenance of Office or Agency..................................................     75
SECTION 3.14. Corporate Existence..............................................................     76
SECTION 3.15. Payment of Taxes and Other Claims................................................     76
SECTION 3.16. Payments for Consent.............................................................     76
SECTION 3.17. Compliance Certificate...........................................................     77
SECTION 3.18. Further Instruments and Acts.....................................................     77
SECTION 3.19. Limitation on Lines of Business..................................................     77
SECTION 3.20. Statement by Officers as to Default..............................................     77

                                   ARTICLE IV
                                SUCCESSOR COMPANY

SECTION 4.1. Merger and Consolidation..........................................................     77

                                   ARTICLE V
                            REDEMPTION OF SECURITIES

SECTION 5.1. Redemption........................................................................     78
SECTION 5.2. Applicability of Article..........................................................     79
SECTION 5.3. Election to Redeem; Notice to Trustee.............................................     79
SECTION 5.4. Selection by Trustee of Securities to Be Redeemed.................................     79
SECTION 5.5. Notice of Redemption..............................................................     79
SECTION 5.6. Deposit of Redemption Price.......................................................     80
SECTION 5.7. Securities Payable on Redemption Date.............................................     81
SECTION 5.8. Securities Redeemed in Part.......................................................     81

                                   ARTICLE VI
                             DEFAULTS AND REMEDIES

SECTION 6.1. Events of Default.................................................................     81
SECTION 6.2. Acceleration......................................................................     84
SECTION 6.3. Other Remedies....................................................................     85
SECTION 6.4. Waiver of Past Defaults...........................................................     85
SECTION 6.5. Control by Majority...............................................................     85
SECTION 6.6. Limitation on Suits...............................................................     85
SECTION 6.7. Rights of Holders to Receive Payment..............................................     86
SECTION 6.8. Collection Suit by Trustee........................................................     86
SECTION 6.9. Trustee May File Proofs of Claim..................................................     86
SECTION 6.10. Priorities.......................................................................     87
SECTION 6.11. Undertaking for Costs............................................................     87
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                                  ARTICLE VII
                                    TRUSTEE

SECTION 7.1. Duties of Trustee.................................................................      87
SECTION 7.2. Rights of Trustee.................................................................      89
SECTION 7.3. Individual Rights of Trustee......................................................      90
SECTION 7.4. Trustee's Disclaimer..............................................................      90
SECTION 7.5. Notice of Defaults................................................................      90
SECTION 7.6. Reports by Trustee to Holders.....................................................      90
SECTION 7.7. Compensation and Indemnity........................................................      90
SECTION 7.8. Replacement of Trustee............................................................      91
SECTION 7.9. Successor Trustee by Merger.......................................................      92
SECTION 7.10. Eligibility; Disqualification....................................................      92
SECTION 7.11. Preferential Collection of Claims Against the Company............................      93
SECTION 7.12. Trustee's Application for Instruction from the Company...........................      93
SECTION 7.13. Paying Agents....................................................................      93

                                  ARTICLE VIII
                       DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.1. Discharge of Liability on Securities; Defeasance..................................      94
SECTION 8.2. Conditions to Defeasance..........................................................      95
SECTION 8.3. Application of Trust Money........................................................      96
SECTION 8.4. Repayment to the Company..........................................................      97
SECTION 8.5. Indemnity for U.S. Government Obligations.........................................      97
SECTION 8.6. Reinstatement.....................................................................      97

                                   ARTICLE IX
                                   AMENDMENTS

SECTION 9.1. Without Consent of Holders........................................................      97
SECTION 9.2. With Consent of Holders...........................................................      98
SECTION 9.3. Compliance with Trust Indenture Act...............................................      99
SECTION 9.4. Revocation and Effect of Consents and Waivers.....................................      99
SECTION 9.5. Notation on or Exchange of Securities.............................................     100
SECTION 9.6. Trustee To Sign Amendments........................................................     100

                                    ARTICLE X
                              SECURITIES GUARANTEE

SECTION 10.1. Subsidiary Guarantee.............................................................     100
SECTION 10.2. Limitation on Liability; Termination, Release and Discharge......................     102
SECTION 10.3. Right of Contribution............................................................     103
SECTION 10.4. No Subrogation...................................................................     104
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                                          ARTICLE XI
                                         MISCELLANEOUS

SECTION 11.1. Trust Indenture Act Controls.....................................................     104
SECTION 11.2. Notices..........................................................................     104
SECTION 11.3. Communication by Holders with other Holders......................................     105
SECTION 11.4. Certificate and Opinion as to Conditions Precedent...............................     106
SECTION 11.5. Statements Required in Certificate or Opinion....................................     106
SECTION 11.6. When Securities Disregarded......................................................     106
SECTION 11.7. Rules by Trustee, Paying Agent and Registrar.....................................     106
SECTION 11.8. Legal Holidays...................................................................     107
SECTION 11.9. GOVERNING LAW....................................................................     107
SECTION 11.10. No Recourse Against Others......................................................     107
SECTION 11.11. Successors......................................................................     107
SECTION 11.12. Multiple Originals..............................................................     107
SECTION 11.13. Qualification of Indenture......................................................     107
SECTION 11.14. Table of Contents; Headings.....................................................     107
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ANNEX 3.4       Agreements Containing Permitted Encumbrances
ANNEX 3.8       Permitted Agreements With Affiliates
EXHIBIT A       Form of the Series A Note
EXHIBIT B       Form of the Series B Note
EXHIBIT C       Form of Indenture Supplement to Add Subsidiary Guarantors

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                              CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
TIA                                                                                             Indenture
Section                                                                                          Section
<S>                                                                                             <C>
310(a)(1)             .......................................................................   7.10
   (a)(2)             .......................................................................   7.10
   (a)(3)             .......................................................................   N.A.
   (a)(4)             .......................................................................   N.A.
   (a)(5)             .......................................................................   7.10
   (b)                .......................................................................   7.3; 7.8; 7.10
   (c)                .......................................................................   N.A.
311(a)                .......................................................................   7.11
   (b)                .......................................................................   7.11
   (c)                .......................................................................   N.A.
312(a)                .......................................................................   2.5
   (b)                .......................................................................   11.3
   (c)                .......................................................................   11.3
313(a)                .......................................................................   7.6
   (b)(1)             .......................................................................   N.A.
   (b)(2)             .......................................................................   7.6
   (c)                .......................................................................   7.6
   (d)                .......................................................................   7.6
314(a)                .......................................................................   3.11; 3.17; 11.5
   (b)                .......................................................................   N.A.
   (c)(1)             .......................................................................   11.4
   (c)(2)             .......................................................................   11.4
   (c)(3)             .......................................................................   N.A.
   (d)                .......................................................................   N.A.
   (e)                .......................................................................   11.5
315(a)                .......................................................................   7.1
   (b)                .......................................................................   7.5; 11.2
   (c)                .......................................................................   7.1
   (d)                .......................................................................   7.1
   (e)                .......................................................................   6.11
316(a)(last sentence) .......................................................................   11.6
   (a)(1)(A)          .......................................................................   6.5
   (a)(1)(B)          .......................................................................   6.4
   (a)(2)             .......................................................................   N.A.
   (b)                .......................................................................   6.7
   (c)                .......................................................................   6.5
317(a)(1)             .......................................................................   6.8
   (a)(2)             .......................................................................   6.9
   (b)                .......................................................................   2.4
318(a)                .......................................................................   11.1
</TABLE>

    N.A. means Not Applicable.
                                     vi
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Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
part of this Indenture.
                                      vii
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            INDENTURE dated as of June 23, 2004, among ARGO-TECH CORPORATION, a
Delaware corporation (the "Company"), THE SUBSIDIARY GUARANTORS (as defined
herein) and BNY MIDWEST TRUST COMPANY, an Illinois trust company organized under
the laws of the State of Illinois (the "Trustee"), as Trustee.

            For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, each party hereto covenants and agrees as
follows for the benefit of the other parties and for the equal and ratable
benefit of all Holders of (i) the Company's 9 1/4% Senior Notes, Series A, due
2011 issued on the date hereof and the guarantees thereof by certain of the
Company's subsidiaries (the "Initial Securities"), (ii) if and when issued, an
unlimited principal amount of additional 9 1/4% Senior Notes, Series A, due 2011
in a non-registered offering or 9 1/4% Senior Notes, Series B, due 2011 in a
registered offering of the Company and the guarantees thereof by certain of the
Company's subsidiaries that may be offered from time to time subsequent to the
Issue Date (the "Additional Securities") and (iii) if and when issued, the
Company's 9 1/4% Senior Notes, Series B, due 2011 and the guarantees thereof by
certain of the Company's subsidiaries that may be issued from time to time in
exchange for Initial Securities or any Additional Securities in an offer
registered under the Securities Act as provided in a Registration Rights
Agreement (as hereinafter defined) (the "Exchange Securities," and together with
the Initial Securities and Additional Securities, the "Securities").

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

            SECTION 1.1. Definitions.

            "Acquired Indebtedness" means Indebtedness (i) of a Person or any of
its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary or (ii) assumed in connection with the acquisition of assets from
such Person, in each case whether or not Incurred by such Person in connection
with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to have
been Incurred, with respect to clause (i) of the preceding sentence, on the date
such Person becomes a Restricted Subsidiary and, with respect to clause (ii) of
the preceding sentence, on the date of consummation of such acquisition of
assets.

            "Additional Assets" means:

            (1)   any property, plant or equipment, to be used by the Company or
                  a Restricted Subsidiary in a Related Business;

            (2)   the Capital Stock of a Person that becomes a Restricted
                  Subsidiary as a result of the acquisition of such Capital
                  Stock by the Company or a Restricted Subsidiary; or

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            (3)   Capital Stock constituting a minority interest in any Person
                  that at such time is a Restricted Subsidiary;

provided, however, that, in the case of clauses (2) and (3), such Restricted
Subsidiary is primarily engaged in a Related Business.

            "Additional Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.

            "Affiliate" of any specified Person means any other Person, directly
or indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing;
provided that beneficial ownership of 10% or more of the Voting Stock of a
Person shall be deemed to be control.

            "Amended Credit Facility" means the Third Amended and Restated
Credit Agreement, dated as of June 23, 2004, among the Company, Holdings,
National City Bank, as administrative agent, and the lenders party thereto from
time to time, as the same may be amended, supplemented or otherwise modified
from time to time.

            "Asset Disposition" means any direct or indirect sale, lease (other
than an operating lease entered into in the ordinary course of business),
transfer, issuance or other disposition, or a series of related sales, leases,
transfers, issuances or dispositions that are part of a common plan, of shares
of Capital Stock of a Subsidiary (other than directors' qualifying shares),
property or other assets (each referred to for the purposes of this definition
as a "disposition") by the Company or any of its Restricted Subsidiaries,
including any disposition by means of a merger, consolidation or similar
transaction.

            Notwithstanding the preceding, the following items shall not be
deemed to be Asset Dispositions:

            (1) a disposition by a Restricted Subsidiary to the Company or by
      the Company or a Restricted Subsidiary to a Wholly-Owned Subsidiary;
      provided that in the case of a sale by a Restricted Subsidiary to another
      Restricted Subsidiary, the Company directly or indirectly owns an equal or
      greater percentage of the Common Stock of the transferee than of the
      transferor;

            (2) the sale of Cash Equivalents in the ordinary course of business;

            (3) a disposition of inventory in the ordinary course of business;

            (4) a disposition of obsolete or worn out equipment or equipment
      that is no longer useful in the conduct of the business of the Company and
      its Restricted Subsidiaries and that is disposed of in each case in the
      ordinary course of business;

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            (5) the exchange of real property for other similar real property
structured on a tax-free like-kind basis in accordance with Section 1031 of the
Code;

            (6) transactions permitted pursuant to Section 4.1;

            (7) an issuance of Capital Stock by a Restricted Subsidiary to the
      Company or to a Wholly-Owned Subsidiary;

            (8) for purposes of Section 3.5 only, the making of a Permitted
      Investment (other than a Permitted Investment to the extent such
      transaction results in the receipt of cash or Cash Equivalents by the
      Company or its Restricted Subsidiaries) or a disposition subject to
      Section 3.3;

            (9) the contribution of any Capital Stock of Holdings held by the
      Company to any employee stock option plan or similar plan to compensate
      employees of the Company or any Subsidiary;

            (10) dispositions of assets with an aggregate fair market value
      since the Issue Date of less than $1.0 million;

            (11) dispositions in connection with Permitted Liens;

            (12) dispositions of receivables in connection with the compromise,
      settlement or collection thereof in the ordinary course of business or in
      bankruptcy or similar proceedings and exclusive of factoring or similar
      arrangements;

            (13) the licensing or sublicensing of intellectual property or other
      general intangibles and licenses, leases or subleases of other property in
      the ordinary course of business which do not materially interfere with the
      business of the Company and its Restricted Subsidiaries; and

            (14) foreclosure on assets.

            "Attributable Indebtedness" in respect of a Sale/Leaseback
Transaction means, as at the time of determination, the present value
(discounted at the interest rate borne by the Securities, compounded
semi-annually) of the total obligations of the lessee for rental payments during
the remaining term of the lease included in such Sale/Leaseback Transaction
(including any period for which such lease has been extended).

            "Average Life" means, as of the date of determination, with respect
to any Indebtedness or Preferred Stock, the quotient obtained by dividing (1)
the sum of the products of the numbers of years from the date of determination
to the dates of each successive scheduled principal payment of such Indebtedness
or redemption or similar payment with respect to such Preferred Stock multiplied
by the amount of such payment by (2) the sum of all such payments.

            "Bank Indebtedness" means any and all amounts, whether outstanding
on the Issue Date or Incurred after the Issue Date, payable by the Company under
or in respect of the Amended Credit Facility and any related notes, collateral
documents, letters of credit and

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guarantees and any Interest Rate Agreement entered into in connection with the
Amended Credit Facility, including principal, premium, if any, interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company at the rate specified
therein whether or not a claim for post filing interest is allowed in such
proceedings), fees, charges, expenses, reimbursement obligations, guarantees and
all other amounts payable thereunder or in respect thereof.

            "Bankruptcy Law" means Title 11 of the United States Code or any
similar federal or state law for the relief of debtors.

            "Board of Directors" means, as to any Person, the board of directors
of such Person or any duly authorized committee thereof.

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

            "Borrowing Base" means, as of the date of determination, an amount
equal to the sum, without duplication of (1) 80% of the net book value of the
Company's and its Restricted Subsidiaries' accounts receivable at such date and
(2) 60% of the net book value of the Company's and its Restricted Subsidiaries'
inventories at such date. Net book value shall be determined in accordance with
GAAP and shall be that reflected on the most recent available balance sheet (it
being understood that the accounts receivable and inventories of an acquired
business may be included if such acquisition has been completed on or prior to
the date of determination).

            "Business Day" means each day that is not a Saturday, Sunday or
other day on which banking institutions in New York, New York are authorized or
required by law to close.

            "Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participation or other equivalents of or
interests in (however designated) equity of such Person, including any Preferred
Stock, but excluding any debt securities convertible into such equity.

            "Capitalized Lease Obligations" means an obligation that is required
to be classified and accounted for as a capitalized lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation will be the capitalized amount of such obligation
at the time any determination thereof is to be made as determined in accordance
with GAAP, and the Stated Maturity thereof will be the date of the last payment
of rent or any other amount due under such lease prior to the first date such
lease may be terminated without penalty.

            "Cash Equivalents" means:

            (1) securities issued or directly and fully guaranteed or insured by
      the United States Government or any agency or instrumentality of the
      United States (provided that

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      the full faith and credit of the United States is pledged in support
      thereof), having maturities of not more than one year from the date of
      acquisition;

            (2) marketable general obligations issued by any state of the United
      States of America or any political subdivision of any such state or any
      public instrumentality thereof maturing within one year from the date of
      acquisition of the United States (provided that the full faith and credit
      of the United States is pledged in support thereof) and, at the time of
      acquisition, having a credit rating of "A" or better from either Standard
      & Poor's Ratings Services or Moody's Investors Service, Inc.;

            (3) certificates of deposit, time deposits, eurodollar time
      deposits, overnight bank deposits or bankers' acceptances having
      maturities of not more than one year from the date of acquisition thereof
      issued by any commercial bank the long-term debt of which is rated at the
      time of acquisition thereof at least "A" or the equivalent thereof by
      Standard & Poor's Ratings Services, or "A" or the equivalent thereof by
      Moody's Investors Service, Inc., and having combined capital and surplus
      in excess of $500 million;

            (4) repurchase obligations with a term of not more than seven days
      for underlying securities of the types described in clauses (1), (2) and
      (3) entered into with any bank meeting the qualifications specified in
      clause (3) above;

            (5) commercial paper rated at the time of acquisition thereof at
      least "A-2" or the equivalent thereof by Standard & Poor's Ratings
      Services or "P-2" or the equivalent thereof by Moody's Investors Service,
      Inc., or carrying an equivalent rating by a nationally recognized rating
      agency, if both of the two named rating agencies cease publishing ratings
      of investments, and in any case maturing within one year after the date of
      acquisition thereof; and

            (6) interests in any investment company or money market fund which
      invests 95% or more of its assets in instruments of the type specified in
      clauses (1) through (5) above.

            "Change of Control" means:

            (1) prior to the first public offering of Common Stock of the
      Company or Holdings, the Permitted Holders cease to be the "beneficial
      owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
      directly or indirectly, of a majority in the aggregate of the total voting
      power of the Voting Stock of the Company or Holdings, whether as a result
      of the issuance of securities of the Company or Holdings, any merger,
      consolidation, liquidation or dissolution of the Company or Holdings, any
      direct or indirect transfer of securities by any Permitted Holder or
      otherwise (for purposes of this clause (1) and clause (2) below, the
      Permitted Holders shall be deemed to beneficially own any Voting Stock of
      an entity (the "specified entity") held by any other entity (the "parent
      entity") so long as the Permitted Holders beneficially own (as so
      defined), directly or indirectly, in the aggregate a majority of the
      voting power of the Voting Stock of the parent entity); or

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<PAGE>

            (2) on the date of or after the first public offering of Common
      Stock referred to in clause (1), (A) any "person" or "group" of related
      persons (as such terms are used in Sections 13(d) and 14(d) of the
      Exchange Act), other than one or more Permitted Holders, is or becomes the
      beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange
      Act, except that such person or group shall be deemed to have "beneficial
      ownership" of all shares that any such person or group has the right to
      acquire, whether such right is exercisable immediately or only after the
      passage of time), directly or indirectly, of more than 35% of the total
      voting power of the Voting Stock of the Company or Holdings (or its
      successor by merger, consolidation or purchase of all or substantially all
      of its assets) (for the purposes of this clause, such person or group
      shall be deemed to beneficially own any Voting Stock of the Company or
      Holdings held by a parent entity, if such person or group "beneficially
      owns" (as defined above), directly or indirectly, more than 35% of the
      voting power of the Voting Stock of such parent entity); and (B) the
      Permitted Holders "beneficially own" (as defined in Rules 13d-3 and 13d-5
      of the Exchange Act), directly or indirectly, in the aggregate a lesser
      percentage of the total voting power of the Voting Stock of the Company or
      Holdings, as the case may be, (or its successor by merger, consolidation
      or purchase of all or substantially all of its assets) than such other
      person or group and do not have the right or ability by voting power,
      contract or otherwise to elect or designate for election a majority of the
      board of directors of the Company or Holdings or such successor (for the
      purposes of this clause, such other person or group shall be deemed to
      beneficially own any Voting Stock of a specified entity held by a parent
      entity, if such other person or group "beneficially owns" directly or
      indirectly, more than 35% of the voting power of the Voting Stock of such
      parent entity and the Permitted Holders "beneficially own" directly or
      indirectly, in the aggregate a lesser percentage of the voting power of
      the Voting Stock of such parent entity and do not have the right or
      ability by voting power, contract or otherwise to elect or designate for
      election a majority of the board of directors of such parent entity); or

            (3) the first day on which a majority of the members of the Board of
      Directors of the Company or Holdings are not Continuing Directors; or

            (4) the sale, lease, transfer, conveyance or other disposition
      (other than by way of merger or consolidation), in one or a series of
      related transactions, of all or substantially all of the assets of the
      Company or Holdings and its Restricted Subsidiaries taken as a whole to
      any "person" (as such term is used in Sections 13(d) and 14(d) of the
      Exchange Act) other than a Permitted Holder; or

            (5) the adoption by the stockholders of the Company or Holdings of a
      plan or proposal for the liquidation or dissolution of the Company or
      Holdings.

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

            "Commodity Agreement" means any commodity futures contract,
commodity option or other similar agreement or arrangement entered into by the
Company or any Restricted Subsidiary designed to protect the Company or any of
its Restricted Subsidiaries against fluctuations in the price of commodities
actually used in the ordinary course of business of the Company and its
Restricted Subsidiaries.

                                       6
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            "Common Stock" means with respect to any Person, any and all shares,
interests or other participations in, and other equivalents (however designated
and whether voting or nonvoting) of such Person's common stock whether or not
outstanding on the Issue Date, and includes, without limitation, all series and
classes of such common stock.

            "Company" means Argo-Tech Corporation or its successors and assigns.

            "Consolidated Coverage Ratio" means as of any date of determination,
with respect to any Person, the ratio of (x) the aggregate amount of
Consolidated EBITDA of such Person for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination for
which financial statements are in existence to (y) Consolidated Interest Expense
for such four fiscal quarters, provided, however, that:

            (1)   if the Company or any Restricted Subsidiary:

                  (a)   has Incurred any Indebtedness since the beginning of
                        such period that remains outstanding on such date of
                        determination or if the transaction giving rise to the
                        need to calculate the Consolidated Coverage Ratio is an
                        Incurrence of Indebtedness, Consolidated EBITDA and
                        Consolidated Interest Expense for such period will be
                        calculated after giving effect on a pro forma basis to
                        such Indebtedness as if such Indebtedness had been
                        Incurred on the first day of such period (except that in
                        making such computation, the amount of Indebtedness
                        under any revolving credit facility outstanding on the
                        date of such calculation will be deemed to be (i) the
                        average daily balance of such Indebtedness during such
                        four fiscal quarters or such shorter period for which
                        such facility was outstanding or (ii) if such facility
                        was created after the end of such four fiscal quarters,
                        the average daily balance of such Indebtedness during
                        the period from the date of creation of such facility to
                        the date of such calculation) and the discharge of any
                        other Indebtedness repaid, repurchased, defeased or
                        otherwise discharged with the proceeds of such new
                        Indebtedness as if such discharge had occurred on the
                        first day of such period; or

                  (b)   has repaid, repurchased, defeased or otherwise
                        discharged any Indebtedness since the beginning of the
                        period that is no longer outstanding on such date of
                        determination or if the transaction giving rise to the
                        need to calculate the Consolidated Coverage Ratio
                        involves a discharge of Indebtedness (in each case other
                        than Indebtedness Incurred under any revolving credit
                        facility unless such Indebtedness has been permanently
                        repaid and the related commitment terminated),
                        Consolidated EBITDA and Consolidated Interest Expense
                        for such period will be calculated after giving effect
                        on a pro forma basis to such discharge of such
                        Indebtedness, including with the proceeds of such new
                        Indebtedness, as if such discharge had occurred on the
                        first day of such period;

                                       7
<PAGE>

            (2)   if since the beginning of such period the Company or any
                  Restricted Subsidiary will have made any Asset Disposition or
                  disposed of any company, division, operating unit, segment,
                  business, group of related assets or line of business or if
                  the transaction giving rise to the need to calculate the
                  Consolidated Coverage Ratio is such an Asset Disposition:

                  (a)   the Consolidated EBITDA for such period will be reduced
                        by an amount equal to the Consolidated EBITDA (if
                        positive) directly attributable to the assets which are
                        the subject of such Asset Disposition for such period or
                        increased by an amount equal to the Consolidated EBITDA
                        (if negative) directly attributable thereto for such
                        period; and

                  (b)   Consolidated Interest Expense for such period will be
                        reduced by an amount equal to the Consolidated Interest
                        Expense directly attributable to any Indebtedness of the
                        Company or any Restricted Subsidiary repaid,
                        repurchased, defeased or otherwise discharged with
                        respect to the Company and its continuing Restricted
                        Subsidiaries in connection with such Asset Disposition
                        for such period (or, if the Capital Stock of any
                        Restricted Subsidiary is sold, the Consolidated Interest
                        Expense for such period directly attributable to the
                        Indebtedness of such Restricted Subsidiary to the extent
                        the Company and its continuing Restricted Subsidiaries
                        are no longer liable for such Indebtedness after such
                        sale);

            (3)   if since the beginning of such period the Company or any
                  Restricted Subsidiary (by merger or otherwise) will have made
                  an Investment in any Restricted Subsidiary (or any Person
                  which becomes a Restricted Subsidiary or is merged with or
                  into the Company) or an acquisition of assets, including any
                  acquisition of assets occurring in connection with a
                  transaction causing a calculation to be made hereunder, which
                  constitutes all or substantially all of a company, division,
                  operating unit, segment, business, group of related assets or
                  line of business, Consolidated EBITDA and Consolidated
                  Interest Expense for such period will be calculated after
                  giving pro forma effect thereto (including the Incurrence of
                  any Indebtedness) as if such Investment or acquisition
                  occurred on the first day of such period; and

            (4)   if since the beginning of such period any Person (that
                  subsequently became a Restricted Subsidiary or was merged with
                  or into the Company or any Restricted Subsidiary since the
                  beginning of such period) will have Incurred any Indebtedness
                  or discharged any Indebtedness, made any Asset Disposition or
                  any Investment or acquisition of assets that would have
                  required an adjustment pursuant to clause (2) or (3) above if
                  made by the Company or a Restricted Subsidiary during such
                  period, Consolidated EBITDA and Consolidated Interest Expense
                  for such period will be

                                       8
<PAGE>

                  calculated after giving pro forma effect thereto as if such
                  transaction occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to any
calculation under this definition, the pro forma calculations will be determined
in good faith by a responsible financial or accounting officer of the Company
(including pro forma expense and cost reductions calculated on a basis
consistent with Regulation S-X under the Securities Act). If any Indebtedness
bears a floating rate of interest and is being given pro forma effect, the
interest expense on such Indebtedness will be calculated as if the rate in
effect on the date of determination had been the applicable rate for the entire
period (taking into account any Interest Rate Agreement applicable to such
Indebtedness if such Interest Rate Agreement has a remaining term in excess of
12 months). If any Indebtedness that is being given pro forma effect bears an
interest rate at the option of the Company, the interest rate shall be
calculated by applying such optional rate chosen by the Company.

            "Consolidated EBITDA" for any period means, without duplication, the
Consolidated Net Income for such period, plus the following to the extent
deducted in calculating such Consolidated Net Income:

            (1)   Consolidated Interest Expense;

            (2)   Consolidated Income Taxes; and

            (3)   Consolidated Non-Cash Charges.

Notwithstanding the preceding sentence, clauses (2) and (3) relating to amounts
of a Restricted Subsidiary of a Person will be added to Consolidated Net Income
to compute Consolidated EBITDA of such Person only to the extent (and in the
same proportion) that the net income (loss) of such Restricted Subsidiary was
included in calculating the Consolidated Net Income of such Person and, to the
extent the amounts set forth in clauses (2) and (3) are in excess of those
necessary to offset a net loss of such Restricted Subsidiary or if such
Restricted Subsidiary has net income for such period included in Consolidated
Net Income, only if a corresponding amount would be permitted at the date of
determination to be dividended to the Company by such Restricted Subsidiary
without prior approval (that has not been obtained), pursuant to the terms of
its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to that Restricted
Subsidiary or its stockholders.

            "Consolidated Income Taxes" means, with respect to any Person for
any period, taxes imposed upon such Person or other payments required to be made
by such Person by any governmental authority which taxes or other payments are
calculated by reference to the income or profits of such Person or such Person
and its Restricted Subsidiaries (to the extent such income or profits were
included in computing Consolidated Net Income for such period), regardless of
whether such taxes or payments are required to be remitted to any governmental
authority.

                                       9
<PAGE>

            "Consolidated Interest Expense" means, for any period, the total
interest expense of the Company and its consolidated Restricted Subsidiaries,
whether paid or accrued, plus, to the extent not included in such interest
expense:

            (1)   interest expense attributable to Capitalized Lease Obligations
                  and the interest portion of rent expense associated with
                  Attributable Indebtedness in respect of the relevant lease
                  giving rise thereto, determined as if such lease were a
                  capitalized lease in accordance with GAAP and the interest
                  component of any deferred payment obligations;

            (2)   amortization of debt discount (provided that any amortization
                  of bond premium will be credited to reduce Consolidated
                  Interest Expense unless, pursuant to GAAP, such amortization
                  of bond premium has otherwise reduced Consolidated Interest
                  Expense);

            (3)   non-cash interest expense;

            (4)   commissions, discounts and other fees and charges owed with
                  respect to letters of credit and bankers' acceptance
                  financing;

            (5)   the interest expense on Indebtedness of another Person that is
                  Guaranteed by such Person or one of its Restricted
                  Subsidiaries or secured by a Lien on assets of such Person or
                  one of its Restricted Subsidiaries;

            (6)   costs associated with Hedging Obligations (including
                  amortization of fees) provided, however, that if Hedging
                  Obligations result in net benefits rather than costs, such
                  benefits shall be credited to reduce Consolidated Interest
                  Expense unless, pursuant to GAAP, such net benefits are
                  otherwise reflected in Consolidated Net Income;

            (7)   the consolidated interest expense of such Person and its
                  Restricted Subsidiaries that was capitalized during such
                  period;

            (8)   the product of (a) all dividends paid or payable, in cash,
                  Cash Equivalents or Indebtedness or accrued during such period
                  on any series of Disqualified Stock of such Person or on
                  Preferred Stock of its Restricted Subsidiaries payable to a
                  party other than the Company or a Wholly-Owned Subsidiary,
                  times (b) a fraction, the numerator of which is one and the
                  denominator of which is one minus the then current combined
                  federal, state, provincial and local statutory tax rate of
                  such Person, expressed as a decimal, in each case, on a
                  consolidated basis and in accordance with GAAP;

            (9)   Receivable Fees; and

            (10)  the cash contributions to any employee stock ownership plan or
                  similar trust to the extent such contributions are used by
                  such plan or trust to pay interest or fees to any Person
                  (other than the Company and its Restricted

                                       10
<PAGE>

            Subsidiaries) in connection with Indebtedness Incurred by such plan
            or trust;

      provided that the definition of Consolidated Interest Expense shall
      exclude the amortization and/or writeoff of debt issuance costs and
      deferred financing fees.

For the purpose of calculating the Consolidated Coverage Ratio in connection
with the Incurrence of any Indebtedness described in the final paragraph of the
definition of "Indebtedness," the calculation of Consolidated Interest Expense
shall include all interest expense (including any amounts described in clauses
(1) through (10) above) relating to any Indebtedness of the Company or any
Restricted Subsidiary described in the final paragraph of the definition of
"Indebtedness."

            For purposes of the foregoing, total interest expense will be
determined (i) after giving effect to any net payments made or received by the
Company and its Subsidiaries with respect to Interest Rate Agreements and (ii)
exclusive of amounts classified as other comprehensive income in the balance
sheet of the Company. Notwithstanding anything to the contrary contained herein,
commissions, discounts, yield and other fees and charges Incurred in connection
with any transaction pursuant to which the Company or its Restricted
Subsidiaries may sell, convey or otherwise transfer or grant a security interest
in any accounts receivable or related assets shall be included in Consolidated
Interest Expense.

            "Consolidated Net Income" means, for any period, the net
income (loss) of the Company and
its consolidated Restricted Subsidiaries determined in accordance with GAAP;
provided, however, that there will not be included in such Consolidated Net
Income:

            (1)   any net income (loss) of any Person if such Person is not a
                  Restricted Subsidiary, except that:

                  (a)   subject to the limitations contained in clauses (3)
                        through (8) below, the Company's equity in the net
                        income of any such Person for such period will be
                        included in such Consolidated Net Income up to the
                        aggregate amount of cash actually distributed by such
                        Person during such period to the Company or a Restricted
                        Subsidiary as a dividend or other distribution (subject,
                        in the case of a dividend or other distribution to a
                        Restricted Subsidiary, to the limitations contained in
                        clause (2) below); and

                  (b)   the Company's equity in a net loss of any such Person
                        (other than an Unrestricted Subsidiary) for such period
                        will be included in determining such Consolidated Net
                        Income to the extent such loss has been funded with cash
                        from the Company or a Restricted Subsidiary;

            (2)   any net income (but not loss) of any Restricted Subsidiary if
                  such Subsidiary is subject to restrictions, directly or
                  indirectly, on the payment

                                       11
<PAGE>

            of dividends or the making of distributions by such Restricted
            Subsidiary, directly or indirectly, to the Company, except that:

                  (a)   subject to the limitations contained in clauses (3)
                        through (8) below, the Company's equity in the net
                        income of any such Restricted Subsidiary for such period
                        will be included in such Consolidated Net Income up to
                        the aggregate amount of cash that could have been
                        distributed by such Restricted Subsidiary during such
                        period to the Company or another Restricted Subsidiary
                        as a dividend (subject, in the case of a dividend to
                        another Restricted Subsidiary, to the limitation
                        contained in this clause); and

                  (b)   the Company's equity in a net loss of any such
                        Restricted Subsidiary for such period will be included
                        in determining such Consolidated Net Income;

            (3)   any gain (loss) realized upon the sale or other disposition of
                  any property, plant or equipment of the Company or its
                  consolidated Restricted Subsidiaries (including pursuant to
                  any Sale/Leaseback Transaction) which is not sold or otherwise
                  disposed of in the ordinary course of business and any gain
                  (loss) realized upon the sale or other disposition of any
                  Capital Stock of any Person;

            (4)   any net after-tax gain or loss arising from the early
                  extinguishment of any Indebtedness, including the amortization
                  or writeoff of debt issuance costs or debt discount
                  attributable to such write-off;

            (5)   any non-cash compensation charges arising from the grant of or
                  issuance or repricing of stock, stock options or other
                  equity-based awards or any amendment, modification,
                  substitution or change of any such stock, stock options or
                  other equity-based awards;

            (6)   inventory purchase accounting adjustments and amortization and
                  impairment charges resulting from other purchase accounting
                  adjustments with respect to any acquisition transaction;

            (7)   any extraordinary gain or loss; and

            (8)   the cumulative effect of a change in accounting principles.

            "Consolidated Non-Cash Charges" means, with respect to any Person,
for any period, the aggregate depreciation, amortization and other non-cash
charges and impairment charges of such Person and its Restricted Subsidiaries
reducing Consolidated Net Income of such Person and its Restricted Subsidiaries
for such period, determined on a consolidated basis in accordance with GAAP
(excluding any such non-cash charge to the extent it represents an accrual of or
reserve for cash charges in any future period or amortization of a prepaid cash
expense that was paid in a prior period not included in the calculation).

                                       12
<PAGE>

            "Continuing Directors" means, as of any date of determination, any
member of the Board of Directors of the Company or Holdings, as the case may be,
who: (1) was a member of such Board of Directors on the date of this Indenture;
or (2) was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of the
relevant Board at the time of such nomination or election.

            "Credit Facility" means, with respect to the Company or any
Subsidiary Guarantor, one or more debt facilities, including, without
limitation, the Amended Credit Facility or commercial paper facilities with
banks or other institutional lenders providing for revolving credit loans, term
loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables) and/or letters of credit, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced in whole or in
part from time to time (and whether or not with the original administrative
agent and lenders or another administrative agent or agents or other lenders and
whether provided under the original Amended Credit Facility or any other credit
or other agreement or indenture).

            "Currency Agreement" means in respect of a Person any foreign
exchange contract, currency swap agreement, futures contract, option contract or
other similar agreement as to which such Person is a party or a beneficiary.

            "Custodian" means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

            "Default" means any event which is, or after notice or passage of
time or both would be, an Event of Default.

            "Definitive Securities" means certificated Securities.

            "Disqualified Stock" means, with respect to any Person, any Capital
Stock of such Person which by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable) or upon the happening
of any event:

            (1)   matures or is mandatorily redeemable pursuant to a sinking
                  fund obligation or otherwise;

            (2)   is convertible or exchangeable for Indebtedness or
                  Disqualified Stock (excluding Capital Stock which is
                  convertible or exchangeable solely at the option of the
                  Company or a Restricted Subsidiary); or

            (3)   is redeemable at the option of the holder of the Capital Stock
                  in whole or in part,

in each case on or prior to the date that is 91 days after the earlier of the
date (a) of the Stated Maturity of the Securities or (b) on which there are no
Securities outstanding, provided that only the portion of Capital Stock which so
matures or is mandatorily redeemable, is so convertible or exchangeable or is so
redeemable at the option of the holder thereof prior to such date will be deemed
to be Disqualified Stock; provided, further that any Capital Stock that would
constitute

                                       13
<PAGE>

Disqualified Stock solely because the holders thereof have the right to require
the Company to repurchase such Capital Stock upon the occurrence of a change of
control or asset sale (each defined in a substantially identical manner to the
corresponding definitions in this Indenture) shall not constitute Disqualified
Stock if the terms of such Capital Stock (and all such securities into which it
is convertible or for which it is ratable or exchangeable) provide that the
Company may not repurchase or redeem any such Capital Stock (and all such
securities into which it is convertible or for which it is ratable or
exchangeable) pursuant to such provision prior to compliance by the Company with
the provisions of this Indenture described under Section 3.5 and Section 3.10
and such repurchase or redemption complies with Section 3.3.

            "DTC" means The Depository Trust Company, its nominees and their
respective successors and assigns, or such other depository institution
hereinafter appointed by the Company.

            "Equity Offering" means a primary public or private sale for cash by
the Company or Holdings, as the case may be, of its Common Stock, or options,
warrants or rights with respect to its Common Stock, other than a public
offering with respect to the Company's or Holdings' Common Stock, or options,
warrants or rights, registered on Form S-4 or S-8.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

            "Exchange Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.

            "Fiscal Year" means the fiscal year of the Company ending on the
last Saturday in October of each year.

            "GAAP" means generally accepted accounting principles in the United
States of America as in effect as of the date of this Indenture, including those
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the
accounting profession. All ratios and computations based on GAAP contained in
this Indenture will be computed in conformity with GAAP.

            "Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness of any other Person
and any obligation, direct or indirect, contingent or otherwise, of such Person:

            (1)   to purchase or pay (or advance or supply funds for the
                  purchase or payment of) such Indebtedness of such other Person
                  (whether arising by virtue of partnership arrangements, or by
                  agreement to keep-well, to purchase assets, goods, securities
                  or services, to take-or-pay, or to maintain financial
                  statement conditions or otherwise); or

                                       14
<PAGE>

            (2)   entered into for purposes of assuring in any other manner the
                  obligee of such Indebtedness of the payment thereof or to
                  protect such obligee against loss in respect thereof (in whole
                  or in part); provided, however, that the term "Guarantee" will
                  not include endorsements for collection or deposit in the
                  ordinary course of business. The term "Guarantee" used as a
                  verb has a corresponding meaning.

            "Guarantor Subordinated Obligation" means, with respect to a
Subsidiary Guarantor, any Indebtedness of such Subsidiary Guarantor (whether
outstanding on the Issue Date or thereafter Incurred) which is expressly
subordinate in right of payment to the obligations of such Subsidiary Guarantor
under its Subsidiary Guarantee pursuant to a written agreement.

            "Hedging Obligations" of any Person means the obligations of such
Person pursuant to any Interest Rate Agreement, Currency Agreement or Commodity
Agreement.

            "Holder" or "Securityholder" means a Person in whose name a Security
is registered on the Registrar's books.

            "Holdings" means AT Holdings Corporation, a Delaware corporation.

            "IAI" means an institutional "accredited investor" as described in
Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

            "Incur" means issue, create, assume, Guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such Person becomes a Restricted Subsidiary
(whether by merger, consolidation, acquisition or otherwise) will be deemed to
be Incurred by such Restricted Subsidiary at the time it becomes a Restricted
Subsidiary; and the terms "Incurred" and "Incurrence" have meanings correlative
to the foregoing.

            "Indebtedness" means, with respect to any Person on any date of
determination (without duplication):

            (1)   the principal of and premium (if any) in respect of
                  indebtedness of such Person for borrowed money;

            (2)   the principal of and premium (if any) in respect of
                  obligations of such Person evidenced by bonds, debentures,
                  notes or other similar instruments;

            (3)   the principal component of all obligations of such Person in
                  respect of letters of credit, bankers' acceptances or other
                  similar instruments (including reimbursement obligations with
                  respect thereto except to the extent such reimbursement
                  obligation relates to a trade payable and such obligation is
                  satisfied within 30 days of Incurrence);

            (4)   the principal component of all obligations of such Person to
                  pay the deferred and unpaid purchase price of property (except
                  trade payables),

                                       15
<PAGE>

                  which purchase price is due more than six months after the
                  date of placing such property in service or taking delivery
                  and title thereto;

            (5)   Capitalized Lease Obligations and all Attributable
                  Indebtedness of such Person;

            (6)   the principal component or liquidation preference of all
                  obligations of such Person with respect to the redemption,
                  repayment or other repurchase of any Disqualified Stock or,
                  with respect to any Subsidiary that is not a Subsidiary
                  Guarantor, any Preferred Stock;

            (7)   the principal component of all Indebtedness of other Persons
                  secured by a Lien on any asset of such Person, whether or not
                  such Indebtedness is assumed by such Person; provided,
                  however, that the amount of such Indebtedness will be the
                  lesser of (a) the fair market value of such asset at such date
                  of determination and (b) the amount of such Indebtedness of
                  such other Persons;

            (8)   the principal component of Indebtedness of other Persons to
                  the extent Guaranteed by such Person; and

            (9)   to the extent not otherwise included in this definition, net
                  obligations of such Person under Currency Agreements and
                  Interest Rate Agreements (the amount of any such obligations
                  to be equal at any time to the termination value of such
                  agreement or arrangement giving rise to such obligation that
                  would be payable by such Person at such time).

The amount of Indebtedness of any Person at any date will be the outstanding
balance at such date of all unconditional obligations as described above and the
maximum liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date. Notwithstanding the
foregoing, money borrowed and set aside at the time of the Incurrence of any
Indebtedness in order to pre-fund the payment of interest on such Indebtedness
shall not be deemed to be "Indebtedness" provided that such money is held to
secure the payment of such interest.

            In addition, "Indebtedness" of any Person shall include Indebtedness
described in the preceding paragraph that would not appear as a liability on the
balance sheet of such Person if:

            (1)   such Indebtedness is the obligation of a partnership or joint
                  venture that is not a Restricted Subsidiary (a "Joint
                  Venture");

            (2)   such Person or a Restricted Subsidiary of such Person is a
                  general partner of the Joint Venture (a "General Partner");
                  and

            (3)   there is recourse, by contract or operation of law, with
                  respect to the payment of such Indebtedness to property or
                  assets of such Person or a

                                       16
<PAGE>

                  Restricted Subsidiary of such Person; and then such
                  Indebtedness shall be included in an amount not to exceed:

                  (a)   the lesser of (i) the net assets of the General Partner
                        and (ii) the amount of such obligations to the extent
                        that there is recourse, by contract or operation of law,
                        to the property or assets of such Person or a Restricted
                        Subsidiary of such Person; or

                  (b)   if less than the amount determined pursuant to clause
                        (a) immediately above, the actual amount of such
                        Indebtedness that is recourse to such Person or a
                        Restricted Subsidiary of such Person, if the
                        Indebtedness is evidenced by a writing and is for a
                        determinable amount.

            "Indenture" means this Indenture as amended or supplemented from
time to time.

            "Initial Purchasers" means, together, J.P. Morgan Securities Inc.,
Jefferies Quarterdeck, a division of Jefferies & Company, Inc., and NatCity
Investments, Inc., with respect to the Initial Securities.

            "Initial Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.

            "Interest Rate Agreement" means with respect to any Person any
interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement as to which such Person is party or a
beneficiary.

            "Investment" means, with respect to any Person, all investments by
such Person in other Persons (including Affiliates) in the form of any direct or
indirect advance, loan (other than advances or extensions of credit to customers
in the ordinary course of business) or other extensions of credit (including by
way of Guarantee or similar arrangement, but excluding any debt or extension of
credit represented by a bank deposit other than a time deposit) or capital
contribution to (by means of any transfer of cash or other property to others or
any payment for property or services for the account or use of others), or any
purchase or acquisition of Capital Stock, Indebtedness or other similar
instruments issued by, such Person and all other items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP;
provided that none of the following will be deemed to be an Investment:

            (1)   Hedging Obligations entered into in the ordinary course of
                  business and in compliance with this Indenture;

            (2)   endorsements of negotiable instruments and documents in the
                  ordinary course of business; and

                                       17
<PAGE>

            (3)   an acquisition of assets, Capital Stock or other securities by
                  the Company or a Subsidiary for consideration to the extent
                  such consideration consists of Common Stock of the Company.

For purposes of Section 3.3:

            (1)   "Investment" will include the portion (proportionate to the
                  Company's equity interest in a Restricted Subsidiary to be
                  designated as an Unrestricted Subsidiary) of the fair market
                  value of the net assets of such Restricted Subsidiary at the
                  time that such Restricted Subsidiary is designated an
                  Unrestricted Subsidiary; provided, however, that upon a
                  redesignation of such Subsidiary as a Restricted Subsidiary,
                  the Company will be deemed to continue to have a permanent
                  "Investment" in an Unrestricted Subsidiary in an amount (if
                  positive) equal to (a) the Company's "Investment" in such
                  Subsidiary at the time of such redesignation less (b) the
                  portion (proportionate to the Company's equity interest in
                  such Subsidiary) of the fair market value of the net assets
                  (as conclusively determined by the Board of Directors of the
                  Company in good faith) of such Subsidiary at the time that
                  such Subsidiary is so re-designated a Restricted Subsidiary;
                  and

            (2)   any property transferred to or from an Unrestricted Subsidiary
                  will be valued at its fair market value at the time of such
                  transfer, in each case as determined in good faith by the
                  Board of Directors of the Company.

            "Issue Date" means the closing date for the sale and issuance of the
Initial Securities.

            "Legal Holiday" has the meaning ascribed to it in Section 11.8.

            "Lien" means any mortgage, pledge, security interest, encumbrance,
lien or charge of any kind (including any conditional sale or other title
retention agreement or lease in the nature thereof).

            "Net Available Cash" from an Asset Disposition means cash payments
received (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise and net
proceeds from the sale or other disposition of any securities received as
consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring person of
Indebtedness or other obligations relating to the properties or assets that are
the subject of such Asset Disposition or received in any other non-cash form)
therefrom, in each case net of:

            (1)   all legal, accounting, investment banking, title and recording
                  tax expenses, commissions and other fees and expenses
                  Incurred, and all Federal, state, provincial, foreign and
                  local taxes required to be paid or accrued as a liability
                  under GAAP (after taking into account any available tax
                  credits or

                                       18
<PAGE>

                  deductions and any tax sharing agreements), as a consequence
                  of such Asset Disposition;

            (2)   all payments made on any Indebtedness which is secured by any
                  assets subject to such Asset Disposition, in accordance with
                  the terms of any Lien upon such assets, or which must by its
                  terms, or in order to obtain a necessary consent to such Asset
                  Disposition, or by applicable law be repaid out of the
                  proceeds from such Asset Disposition;

            (3)   all distributions and other payments required to be made to
                  minority interest holders in Subsidiaries or joint ventures as
                  a result of such Asset Disposition; and

            (4)   the deduction of appropriate amounts to be provided by the
                  seller as a reserve, in accordance with GAAP, against any
                  liabilities associated with the assets disposed of in such
                  Asset Disposition and retained by the Company or any
                  Restricted Subsidiary after such Asset Disposition.

            "Net Cash Proceeds," with respect to any issuance or sale of Capital
Stock, means the cash proceeds of such issuance or sale net of attorneys' fees,
accountants' fees, underwriters' or placement agents' fees, listing fees,
discounts or commissions and brokerage, consultant and other fees and charges
actually Incurred in connection with such issuance or sale and net of taxes paid
or payable as a result of such issuance or sale (after taking into account any
available tax credit or deductions and any tax sharing arrangements); provided
that, the cash proceeds of an Equity Offering by Holdings shall not be deemed
Net Cash Proceeds, except to the extent such cash proceeds are contributed to
the Company.

            "Non-Recourse Debt" means Indebtedness of a Person:

            (1)   as to which neither the Company nor any Restricted Subsidiary
                  (a) provides any Guarantee or credit support of any kind
                  (including any undertaking, guarantee, indemnity, agreement or
                  instrument that would constitute Indebtedness) or (b) is
                  directly or indirectly liable (as a guarantor or otherwise);

            (2)   no default with respect to which (including any rights that
                  the holders thereof may have to take enforcement action
                  against an Unrestricted Subsidiary) would permit (upon notice,
                  lapse of time or both) any holder of any other Indebtedness of
                  the Company or any Restricted Subsidiary to declare a default
                  under such other Indebtedness or cause the payment thereof to
                  be accelerated or payable prior to its stated maturity; and

            (3)   the explicit terms of which provide there is no recourse
                  against any of the assets of the Company or its Restricted
                  Subsidiaries.

            "Non-U.S. Person" means a Person who is not a U.S. Person (as
defined in Regulation S).

                                       19
<PAGE>

            "Officer" means the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Financial Officer, any Vice President, the
Treasurer or the Secretary of the Company. Officer of any Subsidiary Guarantor
has a correlative meaning.

            "Officers' Certificate" means a certificate signed by two Officers
or by an Officer and either an Assistant Treasurer or an Assistant Secretary of
the Company.

            "Opinion of Counsel" means a written opinion from legal counsel who
is acceptable to the Trustee. The counsel may be an employee of or counsel to
the Company or the Trustee.

            "Pari Passu Indebtedness" means Indebtedness that ranks equally in
right of payment to the Securities.

            "Permitted Holders" means (i) Mr. Masashi Yamada and members of his
immediate family, (ii) corporations and other entities that are controlled by
one or more of the persons referred to in clause (i), (iii) trusts for the sole
benefit of one or more of the persons referred to in clause (i), (iv) the
Company's Employee Stock Ownership Plan, (v) individuals who are members of
management of Holdings or the Company as of the Issue Date and (vi) any Person
acting in the capacity of an underwriter in connection with a public or private
offering of the Company's or Holdings' Capital Stock until the completion of
such offering.

            "Permitted Investment" means an Investment by the Company or any
Restricted Subsidiary in:

            (1)   a Restricted Subsidiary or a Person which will, upon the
                  making of such Investment, become a Restricted Subsidiary;
                  provided, however, that the primary business of such
                  Restricted Subsidiary is a Related Business;

            (2)   another Person if as a result of such Investment such other
                  Person is merged or consolidated with or into, or transfers or
                  conveys all or substantially all its assets to, the Company or
                  a Restricted Subsidiary; provided, however, that such Person's
                  primary business is a Related Business;

            (3)   cash and Cash Equivalents;

            (4)   receivables owing to the Company or any Restricted Subsidiary
                  created or acquired in the ordinary course of business and
                  payable or dischargeable in accordance with customary trade
                  terms; provided, however, that such trade terms may include
                  such concessionary trade terms as the Company or any such
                  Restricted Subsidiary deems reasonable under the
                  circumstances;

            (5)   payroll, travel and similar advances to cover matters that are
                  expected at the time of such advances ultimately to be treated
                  as expenses for accounting purposes and that are made in the
                  ordinary course of business;

                                       20
<PAGE>

            (6)   loans or advances to employees (other than executive officers)
                  made in the ordinary course of business consistent with past
                  practices of the Company or such Restricted Subsidiary;
                  provided that the Company and its Restricted Subsidiaries,
                  will comply in all material respects with all applicable
                  provisions of the Sarbanes-Oxley Act and the rules and
                  regulations promulgated in connection therewith in connection
                  with such loans and advances;

            (7)   Capital Stock, obligations or securities received in
                  settlement of debts created in the ordinary course of business
                  and owing to the Company or any Restricted Subsidiary or in
                  satisfaction of judgments or pursuant to any plan of
                  reorganization or similar arrangement upon the bankruptcy or
                  insolvency of a debtor;

            (8)   Investments made as a result of the receipt of non-cash
                  consideration from an Asset Disposition that was made pursuant
                  to and in compliance with Section 3.5;

            (9)   Investments in existence on the Issue Date;

            (10)  Investments by the Rabbi Trust using assets of the Rabbi Trust
                  in existence on the Issue Date (including income and capital
                  growth with respect thereto);

            (11)  Currency Agreements, Interest Rate Agreements and related
                  Hedging Obligations, which transactions or obligations are
                  Incurred in compliance with Section 3.2;

            (12)  Investments by the Company or any of its Restricted
                  Subsidiaries, together with all other Investments pursuant to
                  this clause (11), in an aggregate amount at the time of such
                  Investment not to exceed $5.0 million outstanding at any one
                  time (with the fair market value of such Investment being
                  measured at the time made and without giving effect to
                  subsequent changes in value); and

            (13)  Guarantees issued in accordance with Section 3.2.

            "Permitted Liens" means, with respect to any Person:

            (1)   Liens securing Indebtedness and other obligations under the
                  Amended Credit Facility (and under any other Credit Facility
                  permitted to be Incurred under the Indenture under the
                  provisions described in clause (1) of the second paragraph
                  under Section 3.2) and related Hedging Obligations and liens
                  on assets of Restricted Subsidiaries securing Guarantees of
                  Indebtedness and other obligations of the Company and
                  Subsidiary Guarantors under any Credit Facility permitted to
                  be Incurred under the provisions described in clause (1) of
                  the second paragraph under

                                       21
<PAGE>

                  Section 3.2); provided that Liens permitted under this clause
                  (1) shall only extend to Indebtedness issued, created or
                  Incurred pursuant to a credit facility or commercial paper
                  facility with banks or other institutional lenders providing
                  for revolving credit loans, term loans, receivables financing
                  and/or letters of credit;

            (2)   pledges or deposits by such Person under workmen's
                  compensation laws, unemployment insurance laws or similar
                  legislation, or good faith deposits in connection with bids,
                  tenders, contracts (other than for the payment of
                  Indebtedness) or leases to which such Person is a party, or
                  deposits to secure public or statutory obligations of such
                  Person or deposits of cash or United States government bonds
                  to secure surety or appeal bonds to which such Person is a
                  party, or deposits as security for contested taxes or import
                  or customs duties or for the payment of rent, in each case
                  Incurred in the ordinary course of business;

            (3)   Liens imposed by law, including carriers', warehousemen's and
                  mechanics' Liens, in each case for sums not yet due or being
                  contested in good faith by appropriate proceedings if a
                  reserve or other appropriate provisions, if any, as shall be
                  required by GAAP shall have been made in respect thereof;

            (4)   Liens for taxes, assessments or other governmental charges not
                  yet subject to penalties for non-payment or which are being
                  contested in good faith by appropriate proceedings provided
                  appropriate reserves required pursuant to GAAP have been made
                  in respect thereof;

            (5)   Liens in favor of issuers of surety or performance bonds or
                  letters of credit or bankers' acceptances issued pursuant to
                  the request of and for the account of such Person in the
                  ordinary course of its business; provided, however, that such
                  letters of credit do not constitute Indebtedness;

            (6)   encumbrances, ground leases, easements or reservations of, or
                  rights of others for, licenses, rights of way, sewers,
                  electric lines, telegraph and telephone lines and other
                  similar purposes, or zoning, building codes or other
                  restrictions (including, without limitation, minor defects or
                  irregularities in title and similar encumbrances) as to the
                  use of real properties or liens incidental to the conduct of
                  the business of such Person or to the ownership of its
                  properties which do not in the aggregate materially adversely
                  affect the value of said properties or materially impair their
                  use in the operation of the business of such Person;

            (7)   Liens securing Hedging Obligations so long as the related
                  Indebtedness is, and is permitted to be under this Indenture,
                  secured by a Lien on the same property securing such Hedging
                  Obligation;

                                       22
<PAGE>

            (8)   leases, licenses, subleases and sublicenses of assets
                  (including, without limitation, real property and intellectual
                  property rights) which do not materially interfere with the
                  ordinary conduct of the business of the Company or any of its
                  Restricted Subsidiaries;

            (9)   judgment Liens not giving rise to an Event of Default so long
                  as such Lien is adequately bonded and any appropriate legal
                  proceedings which may have been duly initiated for the review
                  of such judgment have not been finally terminated or the
                  period within which such proceedings may be initiated has not
                  expired;

            (10)  Liens for the purpose of securing the payment of all or a part
                  of the purchase price of, or Capitalized Lease Obligations,
                  purchase money obligations or other payments Incurred to
                  finance the acquisition, improvement or construction of,
                  assets or property acquired or constructed in the ordinary
                  course of business; provided that:

                  (a)   the aggregate principal amount of Indebtedness secured
                        by such Liens is otherwise permitted to be Incurred
                        under this Indenture and does not exceed the cost of the
                        assets or property so acquired or constructed; and

                  (b)   such Liens are created within 180 days of construction
                        or acquisition of such assets or property and do not
                        encumber any other assets or property of the Company or
                        any Restricted Subsidiary other than such assets or
                        property and assets affixed or appurtenant thereto;

            (11)  Liens arising solely by virtue of any statutory or common law
                  provisions relating to banker's Liens, rights of set-off or
                  similar rights and remedies as to deposit accounts or other
                  funds maintained with a depositary institution; provided that:

                  (a)   such deposit account is not a dedicated cash collateral
                        account and is not subject to restrictions against
                        access by the Company in excess of those set forth by
                        regulations promulgated by the Federal Reserve Board;
                        and

                  (b)   such deposit account is not intended by the Company or
                        any Restricted Subsidiary to provide collateral to the
                        depository institution;

            (12)  Liens arising from Uniform Commercial Code financing statement
                  filings regarding operating leases entered into by the Company
                  and its Restricted Subsidiaries in the ordinary course of
                  business;

            (13)  Liens existing on the Issue Date;

                                       23
<PAGE>

            (14)  Liens on property or shares of stock of a Person at the time
                  such Person becomes a Restricted Subsidiary; provided,
                  however, that such Liens are not created, Incurred or assumed
                  in connection with, or in contemplation of, such other Person
                  becoming a Restricted Subsidiary; provided further, however,
                  that any such Lien may not extend to any other property owned
                  by the Company or any Restricted Subsidiary;

            (15)  Liens on property at the time the Company or a Restricted
                  Subsidiary acquired the property, including any acquisition by
                  means of a merger or consolidation with or into the Company or
                  any Restricted Subsidiary; provided, however, that such Liens
                  are not created, Incurred or assumed in connection with, or in
                  contemplation of, such acquisition; provided further, however,
                  that such Liens may not extend to any other property owned by
                  the Company or any Restricted Subsidiary;

            (16)  Liens securing Indebtedness or other obligations of a
                  Restricted Subsidiary owing to the Company or another
                  Restricted Subsidiary;

            (17)  Liens securing the Securities and Subsidiary Guarantees;

            (18)  Liens securing Refinancing Indebtedness Incurred to refinance
                  Indebtedness that was previously so secured, provided that any
                  such Lien is limited to all or part of the same property or
                  assets (plus improvements, accessions, proceeds or dividends
                  or distributions in respect thereof) that secured (or, under
                  the written arrangements under which the original Lien arose,
                  could secure) the Indebtedness being refinanced or is in
                  respect of property that is the security for a Permitted Lien
                  hereunder;

            (19)  any interest or title of a lessor under any Capitalized Lease
                  Obligation or operating lease; and

            (20)  Liens securing Indebtedness (other than Subordinated
                  Obligations and Guarantor Subordinated Obligations) in an
                  aggregate principal amount outstanding at any one time not to
                  exceed the greater of (x) 10% of Total Tangible Assets and (y)
                  $10.0 million.

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

            "Preferred Stock" as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however designated)
which is preferred as to the payment of dividends, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such
corporation.

                                       24
<PAGE>

            "QIB" means any "qualified institutional buyer" as such term is
defined in Rule 144A.

            "Rabbi Trust" means the irrevocable grantor trust established by the
Company pursuant to The Argo-Tech Trust Agreement dated October 28, 1994, as
amended on November 22, 2002, for the benefit of Michael Lipscomb, as
beneficiary, in connection with Mr. Lipscomb's Stay Pay and Severance Agreement
dated February 13, 1989.

            "Receivable" means a right to receive payment arising from a sale or
lease of goods or the performance of services by a Person pursuant to an
arrangement with another Person pursuant to which such other Person is obligated
to pay for goods or services under terms that permit the purchase of such goods
and services on credit and shall include, in any event, any items of property
that would be classified as an "account," "chattel paper," "payment intangible"
or "instrument" under the Uniform Commercial Code as in effect in the State of
New York and any "supporting obligations" as so defined.

            "Receivables Fees" means any fees or interest paid to purchasers or
lenders providing the financing in connection with a factoring agreement or
other similar agreement, including any such amounts paid by discounting the face
amount of Receivables or participations therein transferred in connection with a
factoring agreement or other similar arrangement, regardless of whether any such
transaction is structured as on-balance sheet or off-balance sheet or through a
Restricted Subsidiary or an Unrestricted Subsidiary.

            "Redemption Date" means, with respect to any redemption of
Securities, the date of redemption with respect thereto.

            "Refinancing Indebtedness" means Indebtedness that is Incurred to
refund, refinance, replace, exchange, renew, repay or extend (including pursuant
to any defeasance or discharge mechanism) (collectively, "refinance,"
"refinances," and "refinanced" shall have a correlative meaning) any
Indebtedness existing on the date of this Indenture or Incurred in compliance
with this Indenture (including Indebtedness of the Company that refinances
Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted
Subsidiary that refinances Indebtedness of another Restricted Subsidiary)
including Indebtedness that refinances Refinancing Indebtedness, provided,
however, that:

            (1)   (a) if the Stated Maturity of the Indebtedness being
                  refinanced is earlier than the Stated Maturity of the
                  Securities, the Refinancing Indebtedness has a Stated Maturity
                  no earlier than the Stated Maturity of the Indebtedness being
                  refinanced or (b) if the Stated Maturity of the Indebtedness
                  being refinanced is later than the Stated Maturity of the
                  Securities, the Refinancing Indebtedness has a Stated Maturity
                  at least 91 days later than the Stated Maturity of the
                  Securities;

            (2)   the Refinancing Indebtedness has an Average Life at the time
                  such Refinancing Indebtedness is Incurred that is equal to or
                  greater than the Average Life of the Indebtedness being
                  refinanced;

                                       25
<PAGE>

            (3)   such Refinancing Indebtedness is Incurred in an aggregate
                  principal amount (or if issued with original issue discount,
                  an aggregate issue price) that is equal to or less than the
                  sum of the aggregate principal amount (or if issued with
                  original issue discount, the aggregate accreted value) then
                  outstanding of the Indebtedness being refinanced (plus,
                  without duplication, any additional Indebtedness Incurred to
                  pay interest or premiums required by the instruments governing
                  such existing Indebtedness and fees Incurred in connection
                  therewith); and

            (4)   if the Indebtedness being refinanced is subordinated in right
                  of payment to the Securities or the Subsidiary Guarantee of a
                  Subsidiary Guarantor, such Refinancing Indebtedness is
                  subordinated in right of payment to the Securities or the
                  Subsidiary Guarantee of a Subsidiary Guarantor, as the case
                  may be, on terms at least as favorable to the holders as those
                  contained in the documentation governing the Indebtedness
                  being extended, refinanced, renewed, replaced, defeased or
                  refunded.

            "Registered Exchange Offer" shall have the meaning set forth in the
Registration Rights Agreement.

            "Registration Rights Agreement" means that certain registration
rights agreement dated as of the date of this Indenture by and among the
Company, the Subsidiary Guarantors and the initial purchasers set forth therein
and, with respect to any Additional Securities, one or more substantially
similar registration rights agreements among the Company and the other parties
thereto, as such agreements may be amended from time to time.

            "Regulation S" means Regulation S under the Securities Act.

            "Related Business" means any business which is the same as or
related, ancillary or complementary to any of the businesses of the Company and
its Restricted Subsidiaries on the date of this Indenture.

            "Restricted Investment" means any Investment other than a Permitted
Investment.

            "Restricted Period", with respect to any Securities, means the
period of 40 consecutive days beginning on and including the later of (A) the
day on which the Securities are first offered to Persons other than distributors
(as defined in Regulation S), notice of which day shall be promptly given by the
Company to the Trustee, and (B) the issue date with respect to such Securities.

            "Restricted Securities Legend" means the Private Placement Legend
set forth in clause (1) of Section 2.1(d)(A) or the Regulation S Legend set
forth in clause (2) of Section 2.1(d)(B), as applicable.

            "Restricted Subsidiary" means any Subsidiary of the Company other
than an Unrestricted Subsidiary.

            "Rule 144A" means Rule 144A under the Securities Act.

                                       26
<PAGE>

            "Sale/Leaseback Transaction" means an arrangement relating to
property now owned or hereafter acquired whereby the Company or a Restricted
Subsidiary transfers such property to a Person and the Company or a Restricted
Subsidiary leases it from such Person.

            "SEC" means the United States Securities and Exchange Commission.

            "Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.

            "Securities Act" means the Securities Act of 1933 (15
U.S.C. Sections 77a-77aa), as amended, and the rules and regulations of the SEC
promulgated thereunder.

            "Securities Custodian" means the custodian with respect to the
Global Securities (as appointed by DTC), or any successor Person thereto and
shall initially be the Trustee.

            "Securities Register" means the register of Securities, maintained
by the Registrar, pursuant to Section 2.3.

            "Shelf Registration Statement" shall have the meaning set forth in
the Registration Rights Agreement.

            "Significant Subsidiary" means any Restricted Subsidiary that would
be a "Significant Subsidiary" of the Company within the meaning of Rule 1-02
under Regulation S-X promulgated by the SEC.

            "Specified Real Estate" means the real property owned by Argo-Tech
Corporation (HBP) on the Issue Date.

            "Stated Maturity" means, with respect to any security, the date
specified in such security as the fixed date on which the payment of principal
of such security is due and payable, including pursuant to any mandatory
redemption provision, but shall not include any contingent obligations to repay,
redeem or repurchase any such principal prior to the date originally scheduled
for the payment thereof.

            "Subordinated Obligation" means any Indebtedness of the Company
(whether outstanding on the Issue Date or thereafter Incurred) which is
subordinate or junior in right of payment to the Securities pursuant to a
written agreement.

            "Subsidiary" of any Person means (a) any corporation, association or
other business entity (other than a partnership, joint venture, limited
liability company or similar business entity) of which more than 50% of the
total ordinary voting power of shares of Capital Stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof (or persons performing similar functions) or (b)
any partnership, joint venture, limited liability company or similar business
entity of which more than 50% of the capital accounts, distribution rights,
total equity and voting interests or general or limited partnership interests,
as applicable, is, in the case of clauses (a) and (b), at the time owned or
controlled, directly or indirectly, by (1) such Person, (2) such Person and one
or more

                                       27
<PAGE>

Subsidiaries of such Person or (3) one or more Subsidiaries of such Person.
Unless otherwise specified herein, each reference to a Subsidiary will refer to
a Subsidiary of the Company.

            "Subsidiary Guarantee" means, individually, any Guarantee of payment
of the Securities and Exchange Securities issued in a registered exchange offer
pursuant to the Registration Rights Agreement by a Subsidiary Guarantor pursuant
to the terms of this Indenture and any supplemental indenture thereto (including
pursuant to Exhibit C), and, collectively, all such Guarantees. Each such
Subsidiary Guarantee will be in the form prescribed by this Indenture.

            "Subsidiary Guarantor" means each Subsidiary of the Company in
existence on the Issue Date that provides a Subsidiary Guarantee on the Issue
Date and any other Subsidiary of the Company that provides a Subsidiary
Guarantee in accordance with this Indenture; provided that upon the release or
discharge of such Person from its Subsidiary Guarantee in accordance with this
Indenture, such Person shall cease to be a Subsidiary Guarantor.

            "TIA" or "Trust Indenture Act" means the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bbbb), as in effect on the date of this Indenture.

            "Total Tangible Assets" means the total consolidated assets of the
Company and its Restricted Subsidiaries, as shown on the most recent balance
sheet of the Company, less goodwill, patents, trademarks and other intangible
assets as determined in accordance with GAAP.

            "Trustee" means the party named as such in this Indenture until a
successor replaces it and, thereafter, means the successor.

            "Trust Officer" shall mean, when used with respect to the Trustee,
any officer within the corporate trust department of the Trustee, including any
vice president, assistant vice president, assistant treasurer, trust officer or
any other officer of the Trustee who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such
person's knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

            "Unrestricted Subsidiary" means:

            (1)   any Subsidiary of the Company that at the time of
                  determination shall be designated an Unrestricted Subsidiary
                  by the Board of Directors of the Company in the manner
                  provided below; and

            (2)   any Subsidiary of an Unrestricted Subsidiary.

The Board of Directors of the Company may designate any Subsidiary of the
Company (including any newly acquired or newly formed Subsidiary or a Person
becoming a Subsidiary through merger or consolidation or Investment therein) to
be an Unrestricted Subsidiary only if:

                                       28
<PAGE>

            (1)   such Subsidiary or any of its Subsidiaries does not own any
                  Capital Stock or Indebtedness of or have any Investment in, or
                  own or hold any Lien on any property of, any other Subsidiary
                  of the Company which is not a Subsidiary of the Subsidiary to
                  be so designated or otherwise an Unrestricted Subsidiary;

            (2)   all the Indebtedness of such Subsidiary and its Subsidiaries
                  shall, at the date of designation, and will at all times
                  thereafter, consist of Non-Recourse Debt;

            (3)   such designation and the Investment of the Company in such
                  Subsidiary complies with Section 3.3;

            (4)   such Subsidiary, either alone or in the aggregate with all
                  other Unrestricted Subsidiaries, does not operate, directly or
                  indirectly, all or substantially all of the business of the
                  Company and its Subsidiaries;

            (5)   such Subsidiary is a Person with respect to which neither the
                  Company nor any of its Restricted Subsidiaries has any direct
                  or indirect obligation:

                  (a)   to subscribe for additional Capital Stock of such
                        Person; or

                  (b)   to maintain or preserve such Person's financial
                        condition or to cause such Person to achieve any
                        specified levels of operating results; and

            (6)   on the date such Subsidiary is designated an Unrestricted
                  Subsidiary, such Subsidiary is not a party to any agreement,
                  contract, arrangement or understanding with the Company or any
                  Restricted Subsidiary with terms substantially less favorable
                  to the Company than those that might have been obtained from
                  Persons who are not Affiliates of the Company.

Any such designation by the Board of Directors of the Company shall be evidenced
to the Trustee by filing with the Trustee a resolution of the Board of Directors
of the Company giving effect to such designation and an Officers' Certificate
certifying that such designation complies with the foregoing conditions. If, at
any time, any Unrestricted Subsidiary would fail to meet the foregoing
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of
such Subsidiary shall be deemed to be Incurred as of such date.

            The Board of Directors of the Company may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided that immediately after giving
effect to such designation, no Default or Event of Default shall have occurred
and be continuing or would occur as a consequence thereof and the Company could
Incur at least $1.00 of additional Indebtedness under the first paragraph of
Section 3.2 on a pro forma basis taking into account such designation.

                                       29
<PAGE>

            "U.S. Government Obligations" means securities that are (a) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depositary receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such U.S.
Government Obligations or a specific payment of principal of or interest on any
such U.S. Government Obligations held by such custodian for the account of the
holder of such depositary receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the U.S. Government Obligations or the specific payment
of principal of or interest on the U.S. Government Obligations evidenced by such
depositary receipt.

            "Voting Stock" of a corporation means all classes of Capital Stock
of such corporation then outstanding and normally entitled to vote in the
election of directors.

            "Wholly-Owned Subsidiary" means a Restricted Subsidiary, all of the
Capital Stock of which (other than directors' qualifying shares) is owned by the
Company or another Wholly-Owned Subsidiary.

                                       30
<PAGE>

                        SECTION 1.2. Other Definitions.

<TABLE>
<CAPTION>
                                                                                             Defined in
                            Term                                                               Section
                            ----                                                             ----------
<S>                                                                                          <C>
"Additional Restricted Securities".............................................                   2.1(b)

"Affiliate Transaction"........................................................                   3.8

"Agent"........................................................................                   3.13

"Agent Members"................................................................                   2.1(e)

"Asset Disposition Offer"......................................................                   3.5

"Asset Disposition Offer Amount"...............................................                   3.5

"Asset Disposition Offer Period"...............................................                   3.5

"Asset Disposition Purchase Date"..............................................                   3.5

"Authenticating Agent".........................................................                   2.2

"Change of Control Offer"......................................................                   3.10

"Change of Control Payment"....................................................                   3.10

"Change of Control Payment Date"...............................................                   3.10

"Company Order"................................................................                   2.2

"covenant defeasance option"...................................................                   8.1(b)

"cross acceleration provision".................................................                   6.1(6)(b)

"Defaulted Interest"...........................................................                   2.13

"Event of Default".............................................................                   6.1

"Excess Proceeds"..............................................................                   3.5

"Exchange Global Note".........................................................                   2.1(b)

"Guarantor Obligations"........................................................                  10.1

"Global Securities"............................................................                   2.1(b)

"Institutional Accredited Investor Global Note"................................                   2.1(b)
</TABLE>
                                       31
<PAGE>

<TABLE>
<CAPTION>
                                                                                    Defined in
                            Term                                                      Section
                            ----                                                    -----------
<S>                                                                                 <C>
"Institutional Accredited Investor Notes"......................................        2.1(b)

"legal defeasance option"......................................................        8.1(b)

"Pari Passu Notes".............................................................        3.5

"payment default"..............................................................        6.1(6)(a)

"Paying Agent".................................................................        2.3

"Private Placement Legend".....................................................        2.1(d)

"protected purchaser"..........................................................        2.9

"Registrar"....................................................................        2.3

"Regulation S Global Note".....................................................        2.1(b)

"Regulation S Legend"..........................................................        2.1(d)

"Regulation S Notes"...........................................................        2.1(b)

"Resale Restriction Termination Date"..........................................        2.6(a)

"Restricted Payment"...........................................................        3.3

"Restricted Securities"........................................................        2.1(a)

"Rule 144A Global Note"........................................................        2.1(b)

"Rule 144A Notes"..............................................................        2.1(b)

"Special Interest Payment Date"................................................        2.13(a)

"Special Record Date"..........................................................        2.13(a)

"Successor Company"............................................................        4.1
</TABLE>

            SECTION 1.3. Incorporation by Reference of Trust Indenture Act. This
Indenture is subject to the mandatory provisions of the TIA, which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

            "Commission" means the SEC.

            "indenture securities" means the Securities.

                                       32
<PAGE>

            "indenture security holder" means a Securityholder.

            "indenture to be qualified" means this Indenture.

            "indenture trustee" or "institutional trustee" means the Trustee.

            "obligor" on the indenture securities means the Company, the
Subsidiary Guarantors and any other obligor on the indenture securities.

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

            SECTION 1.4. Rules of Construction. Unless the context otherwise
requires:

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

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

            (3) "or" is not exclusive;

            (4) "including" means including without limitation;

            (5) words in the singular include the plural and words in the plural
      include the singular;

            (6) the principal amount of any noninterest bearing or other
      discount security at any date shall be the principal amount thereof that
      would be shown on a balance sheet of the issuer dated such date prepared
      in accordance with GAAP;

            (7) the principal amount of any Preferred Stock shall be (i) the
      maximum liquidation value of such Preferred Stock or (ii) the maximum
      mandatory redemption or mandatory repurchase price with respect to such
      Preferred Stock, whichever is greater;

            (8) all amounts expressed in this Indenture or in any of the
      Securities in terms of money refer to the lawful currency of the United
      States of America;

            (9) the words "herein," "hereof" and "hereunder" and other words of
      similar import refer to this Indenture as a whole and not to any
      particular Article, Section or other subdivision.

                                       33
<PAGE>

                                   ARTICLE II

                                 THE SECURITIES

            SECTION 2.1. Form, Dating and Terms.

            (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Initial
Securities issued on the date hereof will be in an aggregate principal amount of
$250,000,000. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, Additional Securities and
Exchange Securities. Furthermore, Securities may be authenticated and delivered
upon registration or transfer, or in lieu of, other Securities pursuant to
Section 2.6, 2.9, 2.11 or 9.5 or in connection with a Change of Control Offer
pursuant to Section 3.10.

            The Initial Securities shall be known and designated as "9 1/4%
Senior Notes, Series A, due 2011" of the Company. Additional Securities issued
as securities bearing one of the restrictive legends described in Section 2.1(d)
("Restricted Securities") shall be known and designated as "9 1/4% Senior Notes,
Series A, due 2011" of the Company. Additional Securities issued other than as
Restricted Securities shall be known and designated as "9 1/4% Senior Notes,
Series B, due 2011" of the Company, and Exchange Securities shall be known and
designated as "9 1/4% Senior Notes, Series B, due 2011" of the Company.

            With respect to any Additional Securities, the Company shall set
forth in (a) a Board Resolution of the Company and (b) (i) an Officers'
Certificate or (ii) one or more indentures supplemental hereto, the following
information:

            (1) the aggregate principal amount of such Additional Securities to
      be authenticated and delivered pursuant to this Indenture;

            (2) the issue price and the issue date of such Additional
      Securities, including the date from which interest shall accrue; and

            (3) whether such Additional Securities shall be Restricted
      Securities issued in the form of Exhibit A hereto and/or shall be issued
      in the form of Exhibit B hereto.

            The Initial Securities, the Additional Securities and the Exchange
Securities shall be considered collectively as a single class for all purposes
of this Indenture. Holders of the Initial Securities, the Additional Securities
and the Exchange Securities will vote and consent together on all matters to
which such Holders are entitled to vote or consent as one class, and none of the
Holders of the Initial Securities, the Additional Securities or the Exchange
Securities shall have the right to vote or consent as a separate class on any
matter to which such Holders are entitled to vote or consent.

            If any of the terms of any Additional Securities are established by
action taken pursuant to a Board Resolution of the Company, a copy of an
appropriate record of such action shall be certified by the Secretary or any
Assistant Secretary of the Company and delivered to the

                                       34
<PAGE>

Trustee at or prior to the delivery of the Officers' Certificate or the
indenture supplemental hereto setting forth the terms of the Additional
Securities.

            (b) The Initial Securities are being offered and sold by the Company
pursuant to a Purchase Agreement, dated June 17, 2004, among the Company, the
Subsidiary Guarantors and the Initial Purchasers. The Initial Securities and any
Additional Securities (if issued as Restricted Securities) (the "Additional
Restricted Securities") will be resold initially only to (A) QIBs in reliance on
Rule 144A and (B) Non-U.S. Persons in reliance on Regulation S. Such Initial
Securities and Additional Restricted Securities may thereafter be transferred
to, among others, QIBs, purchasers in reliance on Regulation S and IAIs in
accordance with Rule 501 of the Securities Act, in each case, in accordance with
the procedure described herein. Additional Securities offered after the date
hereof may be offered and sold by the Company from time to time pursuant to one
or more purchase agreements in accordance with applicable law.

            Initial Securities and Additional Restricted Securities offered and
sold to QIBs in the United States of America in reliance on Rule 144A (the "Rule
144A Notes") shall be issued in the form of a permanent global Security, without
interest coupons, substantially in the form of Exhibit A, which is hereby
incorporated by reference and made a part of this Indenture, including
appropriate legends as set forth in Section 2.1(d) (the "Rule 144A Global
Note"), deposited with the Trustee, as custodian for DTC, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The Rule 144A
Global Note may be represented by more than one certificate, if so required by
DTC's rules regarding the maximum principal amount to be represented by a single
certificate. The aggregate principal amount of the Rule 144A Global Note may
from time to time be increased or decreased by adjustments made on the Rule 144A
Global Note and on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

            Initial Securities and Additional Securities offered and sold
outside the United States of America (the "Regulation S Notes") in reliance on
Regulation S shall be issued in the form of a permanent global Security, without
interest coupons, substantially in the form of Exhibit A including appropriate
legends as set forth in Section 2.1(d) (the "Regulation S Global Note"). The
Regulation S Global Note will be deposited upon issuance with the Trustee, as
custodian for DTC, duly executed by the Company and authenticated by the Trustee
as hereinafter provided. During the Restricted Period, interests in the
Regulation S Global Note may be transferred to Non-U.S. Persons pursuant to
Regulation S or to QIBs and IAIs in accordance with this Indenture.

            The Regulation S Global Note may be represented by more than one
certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal amount
of the Regulation S Global Note may from time to time be increased or decreased
by adjustments made on the Regulation S Global Note and on the records of the
Trustee, as custodian for DTC or its nominee, as hereinafter provided.

            Initial Securities and Additional Securities resold to IAIs (the
"Institutional Accredited Investor Notes") in the United States of America shall
be issued in the form of a permanent global Security, without interest coupons,
substantially in the form of Exhibit A including appropriate legends as set
forth in Section 2.1(d) (the "Institutional Accredited Investor

                                       35
<PAGE>

Global Note") deposited with the Trustee, as custodian for DTC, duly executed by
the Company and authenticated by the Trustee as hereinafter provided. The
Institutional Accredited Investor Global Note may be represented by more than
one certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal amount
of the Institutional Accredited Investor Global Note may from time to time be
increased or decreased by adjustments made on the Institutional Accredited
Investor Note and on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

            Exchange Securities exchanged for interests in the Rule 144A Notes,
the Regulation S Notes and the Institutional Accredited Investor Notes will be
issued in the form of a permanent global Security, without interest coupons,
substantially in the form of Exhibit B, which is hereby incorporated by
reference and made a part of this Indenture, deposited with the Trustee as
hereinafter provided, including the appropriate legend set forth in Section
2.1(d) (the "Exchange Global Note"). The Exchange Global Note will be deposited
upon issuance with, or on behalf of, the Trustee as custodian for DTC, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The Exchange Global Note may be represented by more than one
certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate.

            The Rule 144A Global Note, the Regulation S Global Note, the
Institutional Accredited Investor Global Note and the Exchange Global Note are
sometimes collectively herein referred to as the "Global Securities."

            The principal of (and premium, if any) and interest on the
Securities shall be payable at the office or agency of the Company maintained
for such purpose in the Borough of Manhattan, The City of New York, State of New
York, or at such other office or agency of the Company as may be maintained for
such purpose pursuant to Section 2.3; provided, however, that, at the option of
the Company, each installment of interest may be paid by (i) check mailed to
addresses of the Persons entitled thereto as such addresses shall appear on the
Securities Register or (ii) wire transfer to an account located in the United
States maintained by the payee. Payments in respect of Securities represented by
a Global Security (including principal, premium, if any, and interest) will be
made by wire transfer of immediately available funds to the accounts specified
by DTC. Payments in respect of Securities represented by Definitive Securities
(including principal, premium, if any, and interest) held by a Holder of at
least $1,000,000 aggregate principal amount of Securities represented by
Definitive Securities will be made by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Trustee or the Paying
Agent to such effect designating such account no later than 15 days immediately
preceding the relevant due date for payment (or such other date as the Trustee
may accept in its discretion).

            The Securities may have notations, legends or endorsements required
by law, stock exchange rule or usage, in addition to those set forth on Exhibit
A and Exhibit B and in Section 2.1(d). The Company and the Trustee shall approve
the forms of the Securities and any notation, endorsement or legend on them.
Each Security shall be dated the date of its authentication. The terms of the
Securities set forth in Exhibit A and Exhibit B are part of the

                                       36
<PAGE>

terms of this Indenture and, to the extent applicable, the Company, the
Subsidiary Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to be bound by such terms.

            (c) Denominations. The Securities shall be issuable only in fully
registered form, without interest coupons, and only in denominations of $1,000
and an integral multiple thereof.

            (d) Restrictive Legends. Unless and until (i) an Initial Security is
sold under an effective registration statement or (ii) an Initial Security is
exchanged for an Exchange Security in connection with an effective registration
statement, in each case pursuant to the Registration Rights Agreement or a
similar agreement,

            (A) the Rule 144A Global Note and the Institutional Accredited
Investor Global Note shall bear the following legend (the "Private Placement
Legend") on the face thereof:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR
      OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
      PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
      PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
      REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
      SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
      AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH
      IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
      SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE")
      THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
      THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE
      OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO
      THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
      DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
      SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
      SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
      INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
      PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
      INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
      MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR
      OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
      SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE
      MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT
      IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN
      ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR,
      IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000,
      FOR INVESTMENT PURPOSES

                                       37
<PAGE>

      AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY
      DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO
      ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO
      ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO
      REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER
      INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON
      THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

      THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, REPRESENTS AND
      WARRANTS THAT EITHER (A) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO
      ACQUIRE AND HOLD THIS SECURITY CONSTITUTES THE ASSETS OF ANY EMPLOYEE
      BENEFIT PLAN SUBJECT TO TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED ("ERISA"), ANY PLAN, ACCOUNT OR OTHER
      ARRANGEMENT SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF
      1986, AS AMENDED (THE "CODE"), OR PROVISIONS UNDER ANY FEDERAL, STATE,
      LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH
      PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, "SIMILAR LAWS") (EACH, A
      "PLAN") OR ANY ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE
      "PLAN ASSETS" OF ANY SUCH PLAN OR (B) THE ACQUISITION AND HOLDING OF THIS
      SECURITY BY YOU WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION
      UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION
      UNDER ANY APPLICABLE SIMILAR LAW.

            (B) the Regulation S Global Note shall bear the following legend
(the "Regulation S Legend") on the face thereof:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR
      OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
      PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
      PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
      REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
      SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
      AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH
      IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
      SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE")
      THAT IS 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
      LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE
      OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY),

                                       38
<PAGE>

      ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
      BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
      SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
      SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
      INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
      PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
      INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
      MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR
      OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
      SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE
      MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT
      IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN
      ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR,
      IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000,
      FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN
      CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR
      (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE
      TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
      CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
      CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
      LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
      RESTRICTION TERMINATION DATE. BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF
      REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE
      ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE
      TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT.

      THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, REPRESENTS AND
      WARRANTS THAT EITHER (A) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO
      ACQUIRE AND HOLD THIS SECURITY CONSTITUTES THE ASSETS OF ANY EMPLOYEE
      BENEFIT PLAN SUBJECT TO TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED ("ERISA"), ANY PLAN, ACCOUNT OR OTHER
      ARRANGEMENT SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF
      1986, AS AMENDED (THE "CODE"), OR PROVISIONS UNDER ANY FEDERAL, STATE,
      LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH
      PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, "SIMILAR LAWS") (EACH, A
      "PLAN") OR ANY ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE
      "PLAN ASSETS" OF ANY SUCH PLAN OR (B) THE ACQUISITION AND HOLDING OF THIS
      SECURITY BY YOU WILL NOT CONSTITUTE A NON-

                                       39
<PAGE>

      EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
      OF THE CODE OR A VIOLATION UNDER ANY APPLICABLE SIMILAR LAW.

            (C) Each Global Security, whether or not an Initial Security, shall
bear the following legend on the face thereof:

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
      THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK,
      NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
      OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
      OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
      PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

      TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
      BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR
      SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
      SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
      FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

            (e) Book-Entry Provisions.

            (i) This Section 2.1(e) shall apply only to Global Securities
deposited with the Trustee, as custodian for DTC.

            (ii) Each Global Security initially shall (x) be registered in the
name of DTC for such Global Security or the nominee of DTC, (y) be delivered to
the Trustee as custodian for DTC and (z) bear legends as set forth in Section
2.1(d).

            (iii) Members of, or participants in, DTC ("Agent Members") shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by DTC or by the Trustee as the custodian of DTC or under such
Global Security, and DTC may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by DTC or impair, as between DTC and its Agent Members,
the operation of customary practices of DTC governing the exercise of the rights
of a Holder of a beneficial interest in any Global Security.

                                       40
<PAGE>

            (iv) In connection with any transfer of a portion of the beneficial
interest in a Global Security pursuant to subsection (f) of this Section 2.1 to
beneficial owners who are required to hold Definitive Securities, the Securities
Custodian shall reflect on its books and records the date and a decrease in the
principal amount of such Global Security in an amount equal to the principal
amount of the beneficial interest in the Global Security to be transferred, and
the Company shall execute, and the Trustee shall authenticate and make available
for delivery, one or more Definitive Securities of like tenor and amount.

            (v) In connection with the transfer of an entire Global Security to
beneficial owners pursuant to subsection (f) of this Section 2.1, such Global
Security shall be deemed to be surrendered to the Trustee for cancellation, and
the Company shall execute, and the Trustee shall authenticate and make available
for delivery, to each beneficial owner identified by DTC in exchange for its
beneficial interest in such Global Security, an equal aggregate principal amount
of Definitive Securities of authorized denominations.

            (vi) The registered Holder of a Global Security may grant proxies
and otherwise authorize any person, including Agent Members and persons that may
hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

            (vii) Any Holder of a Global Security shall, by acceptance of such
Global Security, agree that transfers of beneficial interests in such Global
Security may be effected only through a book-entry system maintained by (a) the
Holder of such Global Security (or its agent) or (b) any Holder of a beneficial
interest in such Global Security, and that ownership of a beneficial interest in
such Global Security shall be required to be reflected in a book entry.

            (f) Definitive Securities. (i) Except as provided below, owners of
beneficial interests in Global Securities will not be entitled to receive
Definitive Securities. If required to do so pursuant to any applicable law or
regulation, beneficial owners may obtain Definitive Securities in exchange for
their beneficial interests in a Global Security upon written request in
accordance with DTC's and the Registrar's procedures. In addition, Definitive
Securities shall be transferred to all beneficial owners in exchange for their
beneficial interests in a Global Security if (A) DTC notifies the Company at any
time that it is unwilling or unable to continue as depositary for such Global
Security or DTC ceases to be a clearing agency registered under the Exchange
Act, at a time when DTC is required to be so registered in order to act as
depositary, and in each case a successor depositary is not appointed by the
Company within 90 days of such notice or, (B) the Company in its sole discretion
executes and delivers to the Trustee and Registrar an Officers' Certificate
stating that such Global Security shall be so exchangeable or (C) an Event of
Default has occurred and is continuing and the Registrar has received a request
from DTC. In the event of the occurrence of any of the events specified in
clause (A), (B) or (C) of the preceding sentence, the Company shall promptly
make available to the Trustee a reasonable supply of Definitive Securities in
fully registered form without interest coupons.

            (ii) Any Definitive Security delivered in exchange for an interest
in a Global Security pursuant to Section 2.1(e)(iv) or (v) shall, except as
otherwise provided by Section 2.6(c), bear the applicable legend regarding
transfer restrictions applicable to the Definitive Security set forth in Section
2.1(d).

                                       41
<PAGE>

            (iii) In connection with the exchange of a portion of a Definitive
Security for a beneficial interest in a Global Security, the Trustee shall
cancel such Definitive Security, and the Company shall execute, and the Trustee
shall authenticate and make available for delivery, to the transferring Holder a
new Definitive Security representing the principal amount not so transferred.

            SECTION 2.2. Execution and Authentication. One Officer shall sign
the Securities for the Company by manual or facsimile signature. If an Officer
whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.

            A Security shall not be valid until an authorized signatory of the
Trustee manually authenticates the Security. The signature of the Trustee on a
Security shall be conclusive evidence that such Security has been duly and
validly authenticated and issued under this Indenture. A Security shall be dated
the date of its authentication.

            At any time and from time to time after the execution and delivery
of this Indenture, the Trustee shall authenticate and make available for
delivery: (1) Initial Securities for original issue on the Issue Date in an
aggregate principal amount of $250,000,000 (2) subject to the terms of this
Indenture, Additional Securities for original issue in an unlimited principal
amount and (3) Exchange Securities for issue only in a Registered Exchange Offer
or upon resale under an effective Shelf Registration Statement, and only in
exchange for Initial Securities or Additional Securities of an equal principal
amount, in each case upon a written order of the Company signed by two Officers
of the Company (the "Company Order"). Such Company Order shall specify whether
the Securities will be in the form of Definitive Securities or Global
Securities, the amount of the Securities to be authenticated and the date on
which the original issue of Securities is to be authenticated and whether the
Securities are to be Initial Securities, Additional Securities or Exchange
Securities.

            The Trustee may appoint an agent (the "Authenticating Agent")
reasonably acceptable to the Company to authenticate the Securities. Any such
instrument shall be evidenced by an instrument signed by a Trust Officer, a copy
of which shall be furnished to the Company. Unless limited by the terms of such
appointment, any such Authenticating Agent may authenticate Securities whenever
the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by the Authenticating Agent. An Authenticating
Agent has the same rights as any Registrar, Paying Agent or agent for service of
notices and demands.

            In case the Company, pursuant to Article IV, shall be consolidated
or merged with or into any other Person or shall convey, transfer, lease or
otherwise dispose of its properties and assets substantially as an entirety to
any Person, and the successor Person resulting from such consolidation, or
surviving such merger, or into which the Company shall have been merged, or the
Person which shall have received a conveyance, transfer, lease or other
disposition as aforesaid, shall have executed an indenture supplemental hereto
with the Trustee pursuant to Article IV, any of the Securities authenticated or
delivered prior to such consolidation, merger, conveyance, transfer, lease or
other disposition may, from time to time, at the request of the successor
Person, be exchanged for other Securities executed in the name of the successor

                                       42
<PAGE>

Person with such changes in phraseology and form as may be appropriate, but
otherwise in substance of like tenor as the Securities surrendered for such
exchange and of like principal amount; and the Trustee, upon Company Order of
the successor Person, shall authenticate and make available for delivery
Securities as specified in such order for the purpose of such exchange. If
Securities shall at any time be authenticated and delivered in any new name of a
successor Person pursuant to this Section 2.2 in exchange or substitution for or
upon registration of transfer of any Securities, such successor Person, at the
option of the Holders but without expense to them, shall provide for the
exchange of all Securities at the time outstanding for Securities authenticated
and delivered in such new name.

            SECTION 2.3. Registrar and Paying Agent. The Company shall maintain
an office or agency where Securities may be presented for registration of
transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Company shall
cause each of the Registrar and the Paying Agent to maintain an office or agency
in New York, New York. The Registrar shall keep a register of the Securities and
of their transfer and exchange (the "Securities Register"). The Company may have
one or more co-registrars and one or more additional paying agents. The term
"Paying Agent" includes any additional paying agent and the term "Registrar"
includes any co-registrar.

            The Company shall enter into an appropriate agency agreement with
any Registrar or Paying Agent not a party to this Indenture, which shall
incorporate the terms of the TIA. The agreement shall implement the provisions
of this Indenture that relate to such agent. The Company shall notify the
Trustee of the name and address of each such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.7. Any of
the Company's Wholly-Owned Subsidiaries organized in the United States may act
as Paying Agent, Registrar or transfer agent.

            The Company initially appoints the Trustee as Registrar and Paying
Agent for the Securities. The Company may remove any Registrar or Paying Agent
upon written notice to such Registrar or Paying Agent and to the Trustee;
provided, however, that no such removal shall become effective until (i)
acceptance of any appointment by a successor as evidenced by an appropriate
agreement entered into by the Company and such successor Registrar or Paying
Agent, as the case may be, and delivered to the Trustee or (ii) notification to
the Trustee that the Trustee shall serve as Registrar or Paying Agent until the
appointment of a successor in accordance with clause (i) above. The Registrar or
Paying Agent may resign at any time upon written notice to the Company and the
Trustee.

            SECTION 2.4. Paying Agent to Hold Money in Trust. By no later than
10:00 a.m. (New York City time) on the date on which any principal of, premium,
if any, or interest on any Security is due and payable, the Company shall
deposit with the Paying Agent a sum sufficient in immediately available funds to
pay such principal, premium, if any, or interest when due. The Company shall
require each Paying Agent (other than the Trustee) to agree in writing that such
Paying Agent shall hold in trust for the benefit of Securityholders or the
Trustee all money held by such Paying Agent for the payment of principal,
premium, if any, of or interest on the Securities (whether such assets have been
distributed to it by the Company or other obligors on the Securities) and shall
notify the Trustee in writing of any default by the Company

                                       43
<PAGE>

or any Subsidiary Guarantor in making any such payment. If a Subsidiary
Guarantor of the Company acts as Paying Agent, it shall segregate the money held
by it as Paying Agent and hold it as a separate trust fund. The Company at any
time may require a Paying Agent (other than the Trustee) to pay all money held
by it to the Trustee and to account for any funds or assets disbursed by such
Paying Agent. Upon complying with this Section, the Paying Agent (if other than
a Subsidiary Guarantor of the Company) shall have no further liability for the
money delivered to the Trustee. Upon any bankruptcy, reorganization or similar
proceeding with respect to the Company, the Trustee shall serve as Paying Agent
for the Securities.

            SECTION 2.5. Securityholder Lists. The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Securityholders and shall otherwise comply with
TIA Section 312(a). If the Trustee is not the Registrar, or to the extent
otherwise required under the TIA, the Company, on its own behalf and on behalf
of each of the Subsidiary Guarantors, shall furnish or cause the Registrar to
furnish to the Trustee, in writing at least five Business Days before each
interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Securityholders and the Company and the
Subsidiary Guarantors shall otherwise comply with TIA Section 312(a).

            SECTION 2.6. Transfer and Exchange.

            (a) The following provisions shall apply with respect to any
proposed transfer of a Rule 144A Note or an Institutional Accredited Investor
Note prior to the date which is two years after the later of the date of its
original issue and the last date on which the Company or any Affiliate of the
Company was the owner of such Securities (or any predecessor thereto) (the
"Resale Restriction Termination Date"):

            (i) a transfer of a Rule 144A Note or an Institutional Accredited
      Investor Note or a beneficial interest therein to a QIB shall be made upon
      the representation of the transferee, in the form of assignment as set
      forth on the reverse of the Security, that it is purchasing the Security
      for its own account or an account with respect to which it exercises sole
      investment discretion and that it and any such account is a "qualified
      institutional buyer" within the meaning of Rule 144A, and is aware that
      the sale to it is being made in reliance on Rule 144A and acknowledges
      that it has received such information regarding the Company as the
      undersigned has requested pursuant to Rule 144A or has determined not to
      request such information and that it is aware that the transferor is
      relying upon its foregoing representations in order to claim the exemption
      from registration provided by Rule 144A;

            (ii) a transfer of a Rule 144A Note or an Institutional Accredited
      Investor Note or a beneficial interest therein to an IAI shall be made
      upon receipt by the Trustee or its agent of a certificate substantially in
      the form set forth in Section 2.7 from the proposed transferee and, if
      requested by the Company or the Trustee, the receipt by the Trustee or its
      agent of an opinion of counsel, certification and/or other information
      satisfactory to each of them; and

                                       44
<PAGE>

            (iii) a transfer of a Rule 144A Note or an Institutional Accredited
      Investor Note or a beneficial interest therein to a Non-U.S. Person shall
      be made upon receipt by the Trustee or its agent of a certificate
      substantially in the form set forth in Section 2.8 from the proposed
      transferee and, if requested by the Company or the Trustee, the delivery
      of an opinion of counsel, certification and/or other information
      satisfactory to each of them.

            (b) The following provisions shall apply with respect to any
proposed transfer of a Regulation S Note prior to the expiration of the
Restricted Period:

            (i) a transfer of a Regulation S Note or a beneficial interest
      therein to a QIB shall be made upon the representation of the transferee,
      in the form of assignment as set forth on the reverse of the Security,
      that it is purchasing the Security for its own account or an account with
      respect to which it exercises sole investment discretion and that it and
      any such account is a "qualified institutional buyer" within the meaning
      of Rule 144A, and is aware that the sale to it is being made in reliance
      on Rule 144A and acknowledges that it has received such information
      regarding the Company as the undersigned has requested pursuant to Rule
      144A or has determined not to request such information and that it is
      aware that the transferor is relying upon its foregoing representations in
      order to claim the exemption from registration provided by Rule 144A;

            (ii) a transfer of a Regulation S Note or a beneficial interest
      therein to an IAI shall be made upon receipt by the Trustee or its agent
      of a certificate substantially in the form set forth in Section 2.7 from
      the proposed transferee and, if requested by the Company or the Trustee,
      the delivery of an opinion of counsel, certification and/or other
      information satisfactory to each of them; and

            (iii) a transfer of a Regulation S Note or a beneficial interest
      therein to a Non-U.S. Person shall be made upon receipt by the Trustee or
      its agent of a certificate substantially in the form set forth in Section
      2.8 hereof from the proposed transferee and, if requested by the Company
      or the Trustee, receipt by the Trustee or its agent of an opinion of
      counsel, certification and/or other information satisfactory to each of
      them.

            After the expiration of the Restricted Period, interests in the
Regulation S Note may be transferred in accordance with applicable law without
requiring the certifications set forth in Section 2.7 or 2.8 or any additional
certification.

            (c) Restricted Securities Legend. Upon the transfer, exchange or
replacement of Securities not bearing a Restricted Securities Legend, the
Registrar shall deliver Securities that do not bear a Restricted Securities
Legend. Upon the transfer, exchange or replacement of Securities bearing a
Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless, (i) Initial Securities are being
exchanged for Exchange Securities in a Registered Exchange Offer in which case
the Exchange Securities shall not bear a Restricted Securities Legend, (ii) an
Initial Security is being transferred pursuant to the Shelf Registration
Statement or other effective registration statement or (iii) there is delivered
to the Registrar an Opinion of Counsel reasonably satisfactory to the Company
and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to

                                       45
<PAGE>

maintain compliance with the provisions of the Securities Act. Any Additional
Securities sold in a registered offering shall not be required to bear the
Restricted Securities Legend.

            (d) The Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.1 or this Section
2.6. The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon the
giving of reasonable prior written notice to the Registrar.

            (e) Obligations with Respect to Transfers and Exchanges of
Securities.

            (i) To permit registrations of transfers and exchanges, the Company
      shall, subject to the other terms and conditions of this Article II,
      execute, and the Trustee shall authenticate, Definitive Securities and
      Global Securities at the Registrar's request.

            (ii) No service charge shall be made to a Holder for any
      registration of transfer or exchange, but the Company may require the
      Holder to pay a sum sufficient to cover any transfer tax, assessments, or
      similar governmental charge payable in connection therewith (other than
      any such transfer taxes, assessments or similar governmental charges
      payable upon exchange or transfer pursuant to Sections 2.6 or 9.5).

            (iii) The Company (and the Registrar) shall not be required to
      register the transfer of or exchange of any Security for a period
      beginning (1) 15 days before the mailing of a notice of an offer to
      repurchase or redeem Securities and ending at the close of business on the
      day of such mailing or (2) 15 days before an interest payment date and
      ending on such interest payment date.

            (iv) Prior to the due presentation for registration of transfer of
      any Security, the Company, the Trustee, the Paying Agent or the Registrar
      may deem and treat the person in whose name a Security is registered as
      the absolute owner of such Security for the purpose of receiving payment
      of principal of, premium, if any, and interest on such Security and for
      all other purposes whatsoever, including without limitation the transfer
      or exchange of such Security, whether or not such Security is overdue, and
      none of the Company, the Trustee, the Paying Agent or the Registrar shall
      be affected by notice to the contrary.

            (v) Any Definitive Security delivered in exchange for an interest in
      a Global Security pursuant to Section 2.1(e) shall, except as otherwise
      provided by Section 2.6(c), bear the applicable legend regarding transfer
      restrictions applicable to the Definitive Security set forth in Section
      2.1(d).

            (vi) All Securities issued upon any transfer or exchange pursuant to
      the terms of this Indenture shall evidence the same debt and shall be
      entitled to the same benefits under this Indenture as the Securities
      surrendered upon such transfer or exchange.

            (f) No Obligation of the Trustee.

            (i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Security, a member of, or a participant in, DTC or
other Person with respect to the

                                       46
<PAGE>

accuracy of the records of DTC or its nominee or of any participant or member
thereof, with respect to any ownership interest in the Securities or with
respect to the delivery to any participant, member, beneficial owner or other
Person (other than DTC) of any notice (including any notice of redemption) or
the payment of any amount or delivery of any Securities (or other security or
property) under or with respect to such Securities. All notices and
communications to be given to the Holders and all payments to be made to Holders
in respect of the Securities shall be given or made only to or upon the order of
the registered Holders (which shall be DTC or its nominee in the case of a
Global Security). The rights of beneficial owners in any Global Security shall
be exercised only through DTC subject to the applicable rules and procedures of
DTC. The Trustee may rely and shall be fully protected in relying upon
information furnished by DTC with respect to its members, participants and any
beneficial owners.

            (ii) The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any
interest in any Security (including any transfers between or among DTC
participants, members or beneficial owners in any Global Security) other than to
require delivery of such certificates and other documentation or evidence as are
expressly required by, and to do so if and when expressly required by, the terms
of this Indenture, and to examine the same to determine substantial compliance
as to form with the express requirements hereof.

            SECTION 2.7. Form of Certificate to be Delivered in Connection with
Transfers to IAIs.

                                                   [Date]

BNY Midwest Trust Company
2 North LaSalle Street
Suite 1020
Chicago, IL 60602

Attention: Corporate Trust Administration

            Re:   Argo-Tech Corporation
                  9 1/4% Senior Notes, Series A, due 2011

Ladies and Gentlemen:

            This certificate is delivered to request a transfer of $[_________]
principal amount of the 9 1/4% Senior Notes, Series A, due 2011 (the
"Securities") of Argo-Tech Corporation (the "Company").

            Upon transfer, the Securities would be registered in the name of the
new beneficial owner as follows:

            Name: ___________________________________________

                                       47
<PAGE>

            Address:_________________________________________

            Taxpayer ID Number:______________________________

            The undersigned represents and warrants to you that:

            1. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
"Securities Act")), purchasing for our own account or for the account of such an
institutional "accredited investor" at least $250,000 principal amount of the
Securities, and we are acquiring the Securities not with a view to, or for offer
or sale in connection with, any distribution in violation of the Securities Act.
We have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risk of our investment in the Securities
and we invest in or purchase securities similar to the Securities in the normal
course of our business. We and any accounts for which we are acting are each
able to bear the economic risk of our or its investment.

            2. We understand that the Securities have not been registered under
the Securities Act and, unless so registered, may not be sold except as
permitted in the following sentence. We agree on our own behalf and on behalf of
any investor account for which we are purchasing Securities to offer, sell or
otherwise transfer such Securities prior to the date that is two years after the
later of the date of original issue and the last date on which the Company or
any affiliate of the Company was the owner of such Securities (or any
predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Company, (b) pursuant to a registration statement that has been declared
effective under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act, to a person we reasonably
believe is a "qualified institutional buyer" under Rule 144A of the Securities
Act (a "QIB") that is purchasing for its own account or for the account of a QIB
and to whom notice is given that the transfer is being made in reliance on Rule
144A, (d) pursuant to offers and sales that occur outside the United States
within the meaning of Regulation S under the Securities Act, (e) to an
institutional "accredited investor" within the meaning of Rule 501(a)(1), (2),
(3) or (7) under the Securities Act that is purchasing for its own account or
for the account of such an institutional "accredited investor," in each case in
a minimum principal amount of Securities of $250,000, for investment purposes
and not with a view to or for offer or sale in connection with any distribution
in violation of the Securities Act or (f) pursuant to any other available
exemption from the registration requirements of the Securities Act, subject in
each of the foregoing cases to any requirement of law that the disposition of
our property or the property of such investor account or accounts be at all
times within our or their control and in compliance with any applicable state
securities laws. The foregoing restrictions on resale will not apply subsequent
to the Resale Restriction Termination Date. If any resale or other transfer of
the Securities is proposed to be made pursuant to clause (e) above prior to the
Resale Restriction Termination Date, the transferor shall deliver a letter from
the transferee substantially in the form of this letter to the Company and BNY
Midwest Trust Company, as Trustee (the "Trustee"), which shall provide, among
other things, that the transferee is an institutional "accredited investor"
(within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act)
and that it is acquiring such Securities for investment purposes and not for
distribution in violation of the Securities Act. Each purchaser acknowledges
that the Company and the Trustee reserve the right prior to any offer, sale or
other transfer prior to the Resale Termination Date of the Securities pursuant
to

                                       48
<PAGE>

clauses (d), (e) or (f) above to require the delivery of an opinion of counsel,
certifications and/or other information satisfactory to the Company and the
Trustee.

            The Trustee and the Company are entitled to rely upon this letter
and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

                                             TRANSFEREE:________________________

                                             BY:________________________________

cc:  Argo-Tech Corporation

            SECTION 2.8. Form of Certificate to be Delivered in Connection with
Transfers Pursuant to Regulation S.

                                                   [Date]

BNY Midwest Trust Company
2 North LaSalle Street
Suite 1020
Chicago, IL 60602

Attention: Corporate Trust Administration

            Re:   Argo-Tech Corporation
                  9 1/4% Senior Notes, Series A, due 2011

Ladies and Gentlemen:

            In connection with our proposed sale of $[________] aggregate
principal amount of the 9 1/4% Senior Notes, Series A, due 2011 (the
"Securities") of Argo-Tech Corporation (the "Company"), we confirm that such
sale has been effected pursuant to and in accordance with Regulation S under the
United States Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, we represent that:

            (a) the offer of the Securities was not made to a person in the
      United States;

            (b) either (i) at the time the buy order was originated, the
      transferee was outside the United States or we and any person acting on
      our behalf reasonably believed that the transferee was outside the United
      States or (ii) the transaction was executed in, on or through the
      facilities of a designated off-shore securities market and neither we nor
      any person acting on our behalf knows that the transaction has been
      pre-arranged with a buyer in the United States;

                                       49
<PAGE>

            (c) no directed selling efforts have been made in the United States
      in contravention of the requirements of Rule 903(a)(2) or Rule 904(a)(2)
      of Regulation S, as applicable; and

            (d) the transaction is not part of a plan or scheme to evade the
      registration requirements of the Securities Act.

            In addition, if the sale is made during a restricted period and the
provisions of Rule 903(b)(2) or Rule 904(b)(1) of Regulation S are applicable
thereto, we confirm that such sale has been made in accordance with the
applicable provisions of Rule 903(b)(2) or Rule 904(b)(1), as the case may be.

            BNY Midwest Trust Company, as Trustee, and the Company are entitled
to rely upon this letter and are irrevocably authorized to produce this letter
or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.
Terms used in this certificate have the meanings set forth in Regulation S.

            Very truly yours,

            [Name of Transferor]

            By:____________________________

            _______________________________
                  Authorized Signature

cc: Argo-Tech Corporation

            SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities. If a
mutilated Security is surrendered to the Registrar or if the Holder of a
Security claims that the Security has been lost, destroyed or wrongfully taken,
the Company shall issue and the Trustee shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial Code are
met, such that the Securityholder (a) satisfies the Company or the Trustee
within a reasonable time after such Securityholder has notice of such loss,
destruction or wrongful taking and the Registrar has not registered a transfer
prior to receiving such notification, (b) makes such request to the Company or
Trustee prior to the Security being acquired by a protected purchaser as defined
in Section 8-303 of the Uniform Commercial Code (a "protected purchaser") and
(c) satisfies any other reasonable requirements of the Trustee. If required by
the Trustee or the Company, such Holder shall furnish an indemnity bond
sufficient in the judgment of the Company and the Trustee to protect the
Company, the Trustee, the Paying Agent and the Registrar from any loss which any
of them may suffer if a Security is replaced, and, in the absence of notice to
the Company, any Subsidiary Guarantor or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and, upon receipt
of a Company Order, the Trustee shall authenticate and make available for
delivery, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security,

                                       50
<PAGE>

a new Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

            In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

            Upon the issuance of any new Security under this Section, the
Company may require that such Holder pay a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of counsel and of the Trustee) in
connection therewith.

            Every new Security issued pursuant to this Section in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, any Subsidiary Guarantor (if
applicable) and any other obligor upon the Securities, whether or not the
mutilated, destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

            The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.

            SECTION 2.10. Outstanding Securities. Securities outstanding at any
time are all Securities authenticated by the Trustee except for those cancelled
by it, those delivered to it for cancellation and those described in this
Section as not outstanding. A Security does not cease to be outstanding in the
event either of the Company or an Affiliate of the Company holds the Security,
provided, however, that (i) for purposes of determining which are outstanding
for consent or voting purposes hereunder, the provisions of Section 11.6 shall
apply and (ii) in determining whether the Trustee shall be protected in making a
determination whether the Holders of the requisite principal amount of
outstanding Securities are present at a meeting of Holders of Securities for
quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification
hereunder, or relying upon any such quorum, consent or vote, only Securities
which a Trust Officer of the Trustee actually knows to be held by the Company or
an Affiliate of the Company shall not be considered outstanding.

            If a Security is replaced pursuant to Section 2.9 (other than a
mutilated Security surrendered for replacement), it ceases to be outstanding
unless the Trustee and the Company receive proof satisfactory to them that the
replaced Security is held by a protected purchaser. A mutilated Security ceases
to be outstanding upon surrender of such Security and replacement pursuant to
Section 2.9.

            If the Paying Agent segregates and holds in trust, in accordance
with this Indenture, on a Redemption Date or maturity date money sufficient to
pay all principal, premium, if any, and accrued interest payable on that date
with respect to the Securities (or portions thereof) to be redeemed or maturing,
as the case may be, and the Paying Agent is not

                                       51
<PAGE>

prohibited from paying such money to the Securityholders on that date pursuant
to the terms of this Indenture, then on and after that date such Securities (or
portions thereof) cease to be outstanding and interest on them ceases to accrue.

            SECTION 2.11. Temporary Securities. In the event that Definitive
Securities are to be issued under the terms of this Indenture, until such
Definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form, and shall carry all rights, of Definitive Securities
but may have variations that the Company considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate Definitive Securities. After the preparation of
Definitive Securities, the temporary Securities shall be exchangeable for
Definitive Securities upon surrender of the temporary Securities at any office
or agency maintained by the Company for that purpose and such exchange shall be
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute, and the Trustee shall
authenticate and make available for delivery in exchange therefor, one or more
Definitive Securities representing an equal principal amount of Securities.
Until so exchanged, the Holder of temporary Securities shall in all respects be
entitled to the same benefits under this Indenture as a Holder of Definitive
Securities.

            SECTION 2.12. Cancellation. The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agent
shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment or
cancellation and dispose of such Securities in accordance with its internal
policies and customary procedures and shall deliver canceled Securities to the
Company pursuant to written direction by an Officer of the Company. If the
Company or any Subsidiary Guarantor acquires any of the Securities, such
acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.12. The
Company may not issue new Securities to replace Securities it has paid or
delivered to the Trustee for cancellation for any reason other than in
connection with a transfer or exchange.

            At such time as all beneficial interests in a Global Security have
either been exchanged for Definitive Securities, transferred, redeemed,
repurchased or canceled, such Global Security shall be returned by DTC to the
Trustee for cancellation or retained and canceled by the Trustee. At any time
prior to such cancellation, if any beneficial interest in a Global Security is
exchanged for Definitive Securities, transferred in exchange for an interest in
another Global Security, redeemed, repurchased or canceled, the principal amount
of Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then
the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such reduction.

            SECTION 2.13. Payment of Interest; Defaulted Interest. Interest on
any Security which is payable, and is punctually paid or duly provided for, on
any interest payment date shall be paid to the Person in whose name such
Security (or one or more predecessor

                                       52
<PAGE>

Securities) is registered at the close of business on the regular record date
for such payment at the office or agency of the Company maintained for such
purpose pursuant to Section 2.3.

            Any interest on any Security which is payable, but is not paid when
the same becomes due and payable and such nonpayment continues for a period of
30 days shall forthwith cease to be payable to the Holder on the regular record
date, and such defaulted interest and (to the extent lawful) interest on such
defaulted interest at the rate borne by the Securities (such defaulted interest
and interest thereon herein collectively called "Defaulted Interest") shall be
paid by the Company, at its election in each case, as provided in clause (a) or
(b) below:

            (a) The Company may elect to make payment of any Defaulted Interest
      to the Persons in whose names the Securities (or their respective
      predecessor Securities) are registered at the close of business on a
      Special Record Date (as defined below) for the payment of such Defaulted
      Interest, which shall be fixed in the following manner. The Company shall
      notify the Trustee in writing of the amount of Defaulted Interest proposed
      to be paid on each Security and the date (not less than 30 days after such
      notice) of the proposed payment (the "Special Interest Payment Date"), and
      at the same time the Company shall deposit with the Trustee an amount of
      money equal to the aggregate amount proposed to be paid in respect of such
      Defaulted Interest or shall make arrangements satisfactory to the Trustee
      for such deposit prior to the date of the proposed payment, such money
      when deposited to be held in trust for the benefit of the Persons entitled
      to such Defaulted Interest as in this clause provided. Thereupon the
      Trustee shall fix a record date (the "Special Record Date") for the
      payment of such Defaulted Interest, which date ------------------- shall
      be not more than 15 days and not less than 10 days prior to the Special
      Interest Payment Date and not less than 10 days after the receipt by the
      Trustee of the notice of the proposed payment. The Trustee shall promptly
      notify the Company of such Special Record Date, and in the name and at the
      expense of the Company, shall cause notice of the proposed payment of such
      Defaulted Interest and the Special Record Date and Special Interest
      Payment Date therefor to be given in the manner provided for in Section
      11.2, not less than 10 days prior to such Special Record Date. Notice of
      the proposed payment ------------ of such Defaulted Interest and the
      Special Record Date and Special Interest Payment Date therefor having been
      so given, such Defaulted Interest shall be paid on the Special Interest
      Payment Date to the Persons in whose names the Securities (or their
      respective predecessor Securities) are registered at the close of business
      on such Special Record Date and shall no longer be payable pursuant to the
      following clause (b).

            (b) The Company may make payment of any Defaulted Interest in any
      other lawful manner not inconsistent with the requirements of any
      securities exchange on which the Securities may be listed, and upon such
      notice as may be required by such exchange, if, after notice given by the
      Company to the Trustee of the proposed payment pursuant to this clause,
      such manner of payment shall be deemed practicable by the Trustee.

            Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of, transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

                                       53
<PAGE>

            SECTION 2.14. Computation of Interest. Interest on the Securities
shall be computed on the basis of a 360-day year of twelve 30-day months.

            SECTION 2.15. CUSIP, Common Code and ISIN Numbers. The Company in
issuing the Securities may use "CUSIP," "Common Code" or "ISIN" numbers and, if
so, the Trustee shall use "CUSIP," "Common Code" or "ISIN" numbers in notices of
redemption or purchase as a convenience to Holders; provided, however, that any
such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Securities or as contained in any notice
of a redemption or purchase and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption or
purchase shall not be affected by any defect in or omission of such CUSIP,
Common Code or ISIN number. The Company shall promptly notify the Trustee in
writing of any change in the CUSIP, Common Code or ISIN number.

                                  ARTICLE III

                                    COVENANTS

            SECTION 3.1. Payment of Securities. The Company shall promptly pay
the principal of, premium, if any, and interest on the Securities on the dates
and in the manner provided in the Securities and in this Indenture. Principal,
premium, if any, and interest shall be considered paid on the date due if on
such date the Trustee or the Paying Agent holds in accordance with this
Indenture immediately available funds sufficient to pay all principal, premium,
if any, and interest then due and the Trustee or the Paying Agent, as the case
may be, is not prohibited from paying such money to the Securityholders on that
date pursuant to the terms of this Indenture.

            The Company shall pay interest on overdue principal at the rate
specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

            The Company and the Subsidiary Guarantors will pay any present or
future stamp, court or documentary taxes or any other excise or property taxes,
charges or similar levies that arise in any jurisdiction from the execution,
delivery, enforcement or registration of the Securities, the Subsidiary
Guarantees, the Indenture or any other document or instrument in relation
thereof, or the receipt of any payments with respect to the Securities or the
Subsidiary Guarantees, excluding such taxes, charges or similar levies imposed
by any jurisdiction outside of the United States, the jurisdiction of
incorporation of any successor of the Company or any Subsidiary Guarantor or any
jurisdiction in which a paying agent is located, other than those resulting
from, or required to be paid in connection with, the enforcement of the
Securities, the Subsidiary Guarantees or any other such document or instrument
following the occurrence of any Event of Default with respect to the Securities.
The Company or the Subsidiary Guarantors will agree to indemnify the Holders for
any such taxes paid by such Holders.

                                       54
<PAGE>

            Notwithstanding anything to the contrary contained in this
Indenture, the Company or any Subsidiary Guarantor may, to the extent it is
required to do so by law, deduct or withhold income or other similar taxes
imposed by the United States of America from principal, premium or interest
payments hereunder.

            SECTION 3.2. Limitation on Indebtedness. The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, Incur any Indebtedness
(including Acquired Indebtedness); provided, however, that the Company and the
Subsidiary Guarantors may Incur Indebtedness if on the date thereof:

            (1)   the Consolidated Coverage Ratio for the Company and its
                  Restricted Subsidiaries is at least 2.00 to 1.00; and

            (2)   no Default or Event of Default shall have occurred or be
                  continuing or would occur as a consequence of Incurring the
                  Indebtedness or transactions relating to such Incurrence.

The first paragraph of this covenant shall not prohibit the Incurrence of the
following Indebtedness:

            (1)   Indebtedness of the Company or Subsidiary Guarantors Incurred
                  pursuant to a Credit Facility in an aggregate amount up to the
                  greater of (a) the Borrowing Base and (b) $55.0 million, less
                  the aggregate principal amount of all principal repayments
                  with proceeds from Asset Dispositions utilized in accordance
                  with clause (3)(a) of Section 3.5 that permanently reduce the
                  commitments thereunder;

            (2)   Guarantees by the Company or the Subsidiary Guarantors of
                  Indebtedness Incurred in accordance with the provisions of
                  this Indenture; provided that in the event such Indebtedness
                  that is being Guaranteed is a Subordinated Obligation or a
                  Guarantor Subordinated Obligation, then the related Guarantee
                  shall be subordinated in right of payment to the Securities or
                  the Subsidiary Guarantee, as applicable;

            (3)   Indebtedness of the Company owing to and held by any
                  Restricted Subsidiary or Indebtedness of a Restricted
                  Subsidiary owing to and held by the Company or any other
                  Restricted Subsidiary; provided, however,

                  (a)   if the Company is the obligor on such Indebtedness, such
                        Indebtedness is expressly subordinated to the prior
                        payment in full in cash of all obligations with respect
                        to the Securities;

                  (b)   if a Subsidiary Guarantor is the obligor on such
                        Indebtedness and the Company or a Subsidiary Guarantor
                        is not the obligee, such Indebtedness is subordinated in
                        right of payment to the Subsidiary Guarantee of such
                        Subsidiary Guarantor; and

                                       55
<PAGE>

                  (c)   (i) any subsequent issuance or transfer of Capital Stock
                        or any other event which results in any such
                        Indebtedness being beneficially held by a Person other
                        than the Company or a Restricted Subsidiary of the
                        Company; and

                        (ii) any sale or other transfer of any such Indebtedness
                        to a Person other than the Company or a Restricted
                        Subsidiary of the Company;

                  shall be deemed, in each case, to constitute an Incurrence of
                  such Indebtedness by the Company or such Subsidiary, as the
                  case may be;

            (4)   Indebtedness represented by (a) the Securities issued on the
                  Issue Date, the Exchange Securities issued in a Registered
                  Exchange Offer and the Subsidiary Guarantees, (b) any
                  Indebtedness (other than the Indebtedness described in clauses
                  (1), (2), (3), (6), (8), (9) and (10)) outstanding on the
                  Issue Date and (c) any Refinancing Indebtedness Incurred in
                  respect of any Indebtedness described in this clause (4) or
                  clause (5) or Incurred pursuant to the first paragraph of this
                  covenant;

            (5)   Indebtedness of a Restricted Subsidiary Incurred and
                  outstanding on the date on which such Restricted Subsidiary
                  was acquired by the Company (other than Indebtedness Incurred
                  (a) to provide all or any portion of the funds utilized to
                  consummate the transaction or series of related transactions
                  pursuant to which such Restricted Subsidiary became a
                  Restricted Subsidiary or was otherwise acquired by the Company
                  or (b) otherwise in connection with, or in contemplation of,
                  such acquisition); provided, however, that at the time such
                  Restricted Subsidiary is acquired by the Company, the Company
                  would have been able to Incur $1.00 of additional Indebtedness
                  pursuant to the first paragraph of this covenant after giving
                  effect to the Incurrence of such Indebtedness pursuant to this
                  clause (5);

            (6)   Indebtedness under Hedging Obligations that are Incurred in
                  the ordinary course of business (and not for speculative
                  purposes) (1) for the purpose of fixing or hedging interest
                  rate risk with respect to any Indebtedness Incurred without
                  violation of the Indenture; (2) for the purpose of fixing or
                  hedging currency exchange rate risk with respect to any
                  currency exchanges; or (3) for the purpose of fixing or
                  hedging commodity price risk with respect to any commodities;

            (7)   the Incurrence by the Company or any of its Restricted
                  Subsidiaries of Indebtedness represented by Capitalized Lease
                  Obligations, mortgage financings or purchase money obligations
                  with respect to assets other than Capital Stock or other
                  Investments, in each case Incurred for the purpose of
                  financing all or any part of the purchase price or cost of
                  construction or improvements of property used in the business
                  of the Company or such

                                       56
<PAGE>

                  Restricted Subsidiary, in an aggregate principal amount not to
                  exceed $10.0 million at any time outstanding;

            (8)   Indebtedness Incurred in respect of workers' compensation
                  claims, self-insurance obligations, performance, surety and
                  similar bonds and completion guarantees provided by the
                  Company or a Restricted Subsidiary in the ordinary course of
                  business;

            (9)   Indebtedness arising from agreements of the Company or a
                  Restricted Subsidiary providing for indemnification,
                  adjustment of purchase price or similar obligations, in each
                  case, Incurred or assumed in connection with the disposition
                  of any business, assets or Capital Stock of a Restricted
                  Subsidiary, provided that the maximum aggregate liability in
                  respect of all such Indebtedness shall at no time exceed the
                  gross proceeds actually received by the Company and its
                  Restricted Subsidiaries in connection with such disposition;

            (10)  Indebtedness arising from the honoring by a bank or other
                  financial institution of a check, draft or similar instrument
                  (except in the case of daylight overdrafts) drawn against
                  insufficient funds in the ordinary course of business and
                  Indebtedness arising from automated clearing house
                  transactions pursuant to agreements or overdrafts, controlled
                  disbursement accounts and other electronic funds transfer in
                  the ordinary course of business, provided, however, that in
                  any such instance such Indebtedness is extinguished within
                  five Business Days of Incurrence;

            (11)  Indebtedness of a Joint Venture that is not a Restricted
                  Subsidiary in an aggregate principal amount not to exceed $3.0
                  million at any time outstanding as calculated pursuant to the
                  third paragraph of the definition of "Indebtedness"; and

            (12)  in addition to the items referred to in clauses (1) through
                  (11) above, (a) Indebtedness of Restricted Subsidiaries in an
                  aggregate outstanding principal amount which, when taken
                  together with the principal amount of all other Indebtedness
                  Incurred pursuant to this clause (12)(a) and then outstanding,
                  will not exceed $5.0 million and (b) Indebtedness of the
                  Company or its Restricted Subsidiaries in an aggregate
                  outstanding principal amount which, when taken together with
                  the principal amount of all other Indebtedness Incurred
                  pursuant to this clause (12)(b) and then outstanding, will not
                  exceed $15.0 million at any time outstanding (it being
                  understood that any Indebtedness Incurred pursuant to this
                  clause (12) shall cease to be deemed Incurred or outstanding
                  for purposes of this clause (12) but shall be deemed Incurred
                  for the purposes of the first paragraph of this covenant from
                  and after the first date on which the Company or such
                  Restricted Subsidiary (if such Restricted Subsidiary is a
                  Subsidiary Guarantor) could have Incurred such Indebtedness
                  under the first paragraph of this covenant without reliance on
                  this clause (12)).

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<PAGE>

The Company shall not Incur any Indebtedness under the preceding paragraph if
the proceeds thereof are used, directly or indirectly, to refinance any
Subordinated Obligations of the Company unless such Indebtedness will be
subordinated to the Securities to at least the same extent as such Subordinated
Obligations. No Subsidiary Guarantor shall Incur any Indebtedness if the
proceeds thereof are used, directly or indirectly, to refinance any Guarantor
Subordinated Obligations of such Subsidiary Guarantor unless such Indebtedness
shall be subordinated to the obligations of such Subsidiary Guarantor under its
Subsidiary Guarantee to at least the same extent as such Guarantor Subordinated
Obligations. No Restricted Subsidiary may Incur any Indebtedness if the proceeds
are used to refinance Indebtedness of the Company.

            For purposes of determining compliance with, and the outstanding
principal amount of any particular Indebtedness Incurred pursuant to and in
compliance with, this covenant:

            (1)   in the event that Indebtedness meets the criteria of more than
                  one of the types of Indebtedness described in the first and
                  second paragraphs of this covenant, the Company, in its sole
                  discretion, shall classify on the date of Incurrence and may
                  later reclassify such item of Indebtedness in any manner that
                  complies with this covenant and only be required to include
                  the amount and type of such Indebtedness in one of such
                  clauses;

            (2)   all Indebtedness outstanding on the date of this Indenture
                  under the Amended Credit Facility shall be deemed initially
                  Incurred on the Issue Date under clause (1) of the second
                  paragraph of this covenant and not the first paragraph or
                  clause (4) of the second paragraph of this covenant;

            (3)   Guarantees of, or obligations in respect of letters of credit
                  relating to, Indebtedness which is otherwise included in the
                  determination of a particular amount of Indebtedness shall not
                  be included;

            (4)   if obligations in respect of letters of credit are Incurred
                  pursuant to a Credit Facility and are being treated as
                  Incurred pursuant to clause (1) of the second paragraph above
                  and the letters of credit relate to other Indebtedness, then
                  such other Indebtedness shall not be included;

            (5)   the principal amount of any Disqualified Stock of the Company
                  or a Restricted Subsidiary, or Preferred Stock of a Restricted
                  Subsidiary that is not a Subsidiary Guarantor, shall be equal
                  to the greater of the maximum mandatory redemption or
                  repurchase price (not including, in either case, any
                  redemption or repurchase premium) or the liquidation
                  preference thereof;

            (6)   Indebtedness permitted by this covenant need not be permitted
                  solely by reference to one provision permitting such
                  Indebtedness but may be permitted in part by one such
                  provision and in part by one or more other provisions of this
                  covenant permitting such Indebtedness; and

                                       58
<PAGE>

            (7)   the amount of Indebtedness issued at a price that is less than
                  the principal amount thereof shall be equal to the amount of
                  the liability in respect thereof determined in accordance with
                  GAAP.

Accrual of interest, accrual of dividends, the accretion of accreted value, the
payment of interest in the form of additional Indebtedness and the payment of
dividends in the form of additional shares of Preferred Stock or Disqualified
Stock shall not be deemed to be an Incurrence of Indebtedness for purposes of
this covenant. The amount of any Indebtedness outstanding as of any date shall
be (i) the accreted value thereof in the case of any Indebtedness issued with
original issue discount and (ii) the principal amount or liquidation preference
thereof, together with any interest thereon that is more than 30 days past due,
in the case of any other Indebtedness.

            In addition, the Company shall not permit any of its Unrestricted
Subsidiaries to Incur any Indebtedness or issue any shares of Disqualified
Stock, other than Non-Recourse Debt. If at any time an Unrestricted Subsidiary
becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary shall be
deemed to be Incurred by a Restricted Subsidiary as of such date (and, if such
Indebtedness is not permitted to be Incurred as of such date under this Section
3.2, the Company shall be in Default of this covenant).

            For purposes of determining compliance with any U.S.
dollar-denominated restriction on the Incurrence of Indebtedness, the U.S.
dollar-equivalent principal amount of Indebtedness denominated in a foreign
currency shall be calculated based on the relevant currency exchange rate in
effect on the date such Indebtedness was Incurred, in the case of term
Indebtedness, or first committed, in the case of revolving credit Indebtedness;
provided that if such Indebtedness is Incurred to refinance other Indebtedness
denominated in a foreign currency, and such refinancing would cause the
applicable U.S. dollar-dominated restriction to be exceeded if calculated at the
relevant currency exchange rate in effect on the date of such refinancing, such
U.S. dollar-dominated restriction shall be deemed not to have been exceeded so
long as the principal amount of such refinancing Indebtedness does not exceed
the principal amount of such Indebtedness being refinanced. Notwithstanding any
other provision of this covenant, the maximum amount of Indebtedness that the
Company and the Subsidiary Guarantors may Incur pursuant to this covenant shall
not be deemed to be exceeded solely as a result of fluctuations in the exchange
rate of currencies. The principal amount of any Indebtedness Incurred to
refinance other Indebtedness, if Incurred in a different currency from the
Indebtedness being refinanced, shall be calculated based on the currency
exchange rate applicable to the currencies in which such Refinancing
Indebtedness is denominated that is in effect on the date of such refinancing.

            SECTION 3.3. Limitation on Restricted Payments. The Company shall
not, and shall not permit any of its Restricted Subsidiaries, directly or
indirectly, to:

            (1)   declare or pay any dividend or make any distribution (whether
                  made in cash, securities or other property) on or in respect
                  of its Capital Stock (including any payment in connection with
                  any merger or consolidation involving the Company or any of
                  its Restricted Subsidiaries) except:

                                       59
<PAGE>

                  (a)   dividends or distributions payable in Capital Stock of
                        the Company (other than Disqualified Stock) or in
                        options, warrants or other rights to purchase such
                        Capital Stock of the Company; and

                  (b)   dividends or distributions payable to the Company or a
                        Restricted Subsidiary (and if such Restricted Subsidiary
                        is not a Wholly-Owned Subsidiary, to its other holders
                        of common Capital Stock on a pro rata basis);

            (2)   purchase, redeem, retire or otherwise acquire for value any
                  Capital Stock of the Company or any direct or indirect parent
                  of the Company held by Persons other than the Company or a
                  Restricted Subsidiary (other than in exchange for Capital
                  Stock of the Company (other than Disqualified Stock));

            (3)   purchase, repurchase, redeem, defease or otherwise acquire or
                  retire for value, prior to scheduled maturity, scheduled
                  repayment or scheduled sinking fund payment, any Subordinated
                  Obligations or Guarantor Subordinated Obligations (other than
                  the purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement of Subordinated Obligations or
                  Guarantor Subordinated Obligations purchased in anticipation
                  of satisfying a sinking fund obligation, principal installment
                  or final maturity, in each case due within one year of the
                  date of purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement); or

            (4)   make any Restricted Investment in any Person;

(any such dividend, distribution, purchase, redemption, repurchase, defeasance,
other acquisition, retirement or Restricted Investment referred to in clauses
(1) through (4) shall be referred to herein as a "Restricted Payment"), if at
the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

            (a)   a Default shall have occurred and be continuing (or would
                  result therefrom); or

            (b)   the Company is not able to Incur an additional $1.00 of
                  Indebtedness pursuant to the first paragraph under Section 3.2
                  after giving effect, on a pro forma basis, to such Restricted
                  Payment; or

            (c)   the aggregate amount of such Restricted Payment and all other
                  Restricted Payments declared or made subsequent to the Issue
                  Date (excluding the Restricted Payments permitted by clauses
                  (1), (2), (3), (4), (7), (8), (9)(a), (9)(c), (9)(d), (9)(e)
                  and (11) of the following paragraph only) would exceed the sum
                  of:

                  (i)   50% of Consolidated Net Income for the period (treated
                        as one accounting period) from the beginning of the
                        first fiscal quarter

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<PAGE>

                        commencing after the date of this Indenture to the end
                        of the most recent fiscal quarter ending prior to the
                        date of such Restricted Payment for which financial
                        statements are in existence (or, in case such
                        Consolidated Net Income is a deficit, minus 100% of such
                        deficit);

                  (ii)  100% of the aggregate Net Cash Proceeds received by the
                        Company from the issue or sale of its Capital Stock
                        (other than Disqualified Stock) or other capital
                        contributions subsequent to the Issue Date (other than
                        Net Cash Proceeds received from an issuance or sale of
                        such Capital Stock to a Subsidiary of the Company or an
                        employee stock ownership plan, option plan or similar
                        trust to the extent such sale to an employee stock
                        ownership plan or similar trust is financed by loans
                        from or Guaranteed by the Company or any Restricted
                        Subsidiary unless such loans have been repaid with cash
                        on or prior to the date of determination);

                  (iii) the amount by which Indebtedness of the Company or its
                        Restricted Subsidiaries is reduced on the Company's
                        balance sheet upon the conversion or exchange (other
                        than by a Subsidiary of the Company) subsequent to the
                        Issue Date of any Indebtedness of the Company or its
                        Restricted Subsidiaries convertible or exchangeable for
                        Capital Stock (other than Disqualified Stock) of the
                        Company (less the amount of any cash, or the fair market
                        value of any other property, distributed by the Company
                        upon such conversion or exchange); and

                  (iv)  the amount equal to the net reduction in Restricted
                        Investments made by the Company or any of its Restricted
                        Subsidiaries in any Person resulting from:

                        (A)   repurchases or redemptions of such Restricted
                              Investments by such Person, proceeds realized upon
                              the sale of such Restricted Investment to an
                              unaffiliated purchaser, repayments of loans or
                              advances or other transfers of assets (including
                              by way of dividend or distribution) by such Person
                              to the Company or any Restricted Subsidiary; or

                        (B)   the redesignation of Unrestricted Subsidiaries as
                              Restricted Subsidiaries (valued in each case as
                              provided in the definition of "Investment") not to
                              exceed, in the case of any Unrestricted
                              Subsidiary, the amount of Investments previously
                              made by the Company or any Restricted Subsidiary
                              in such Unrestricted Subsidiary,

                                       61
<PAGE>

                              which amount in each case under this clause (iv)
                              was included in the calculation of the amount of
                              Restricted Payments; provided, however, that no
                              amount will be included under this clause (iv) to
                              the extent it is already included in Consolidated
                              Net Income.

            The provisions of the preceding paragraph shall not prohibit:

            (1)   any purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement of Capital Stock, Disqualified
                  Stock, Subordinated Obligations of the Company or Guarantor
                  Subordinated Obligations of any Subsidiary Guarantor made by
                  exchange for, or out of the proceeds of the substantially
                  concurrent sale of, Capital Stock of the Company (other than
                  Disqualified Stock and other than Capital Stock issued or sold
                  to a Subsidiary or an employee stock ownership plan or similar
                  trust to the extent such sale to an employee stock ownership
                  plan or similar trust is financed by loans from or Guaranteed
                  by the Company or any Restricted Subsidiary unless such loans
                  have been repaid with cash on or prior to the date of
                  determination); provided, however, that the Net Cash Proceeds
                  from such sale of Capital Stock will be excluded from clause
                  (c)(ii) of the preceding paragraph;

            (2)   any purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement of Subordinated Obligations of the
                  Company or Guarantor Subordinated Obligations of any
                  Subsidiary Guarantor made by exchange for, or out of the
                  proceeds of the substantially concurrent sale of, Subordinated
                  Obligations of the Company or any purchase, repurchase,
                  redemption, defeasance or other acquisition or retirement of
                  Guarantor Subordinated Obligations made by exchange for or out
                  of the proceeds of the substantially concurrent sale of
                  Guarantor Subordinated Obligations that, in each case, is
                  permitted to be Incurred pursuant to Section 3.2 and that in
                  each case constitutes Refinancing Indebtedness;

            (3)   any purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement of Disqualified Stock of the Company
                  or a Restricted Subsidiary made by exchange for or out of the
                  proceeds of the substantially concurrent sale of Disqualified
                  Stock of the Company or such Restricted Subsidiary, as the
                  case may be, that, in each case, is permitted to be Incurred
                  pursuant to Section 3.2 and that in each case constitutes
                  Refinancing Indebtedness;

            (4)   so long as no Default or Event of Default has occurred and is
                  continuing, any purchase or redemption of Subordinated
                  Obligations or Guarantor Subordinated Obligations of a
                  Subsidiary Guarantor from Net Available Cash to the extent
                  permitted under Section 3.5 below;

            (5)   dividends paid within 60 days after the date of declaration if
                  at such date of declaration such dividend would have complied
                  with this provision;

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            (6)   so long as no Default or Event of Default has occurred and is
                  continuing,

                  (a)   the purchase, redemption or other acquisition,
                        cancellation or retirement for value of Capital Stock,
                        or options, warrants, equity appreciation rights or
                        other rights to purchase or acquire Capital Stock of the
                        Company or any Restricted Subsidiary or any parent of
                        the Company held by any existing or former directors,
                        employees or officers of the Company or Holdings or any
                        Subsidiary of the Company or their assigns, estates or
                        heirs, in each case in connection with the repurchase
                        provisions under employee stock option or stock purchase
                        agreements or other agreements to compensate employees;
                        provided that such redemptions or repurchases pursuant
                        to this clause shall not exceed $3.5 million in the
                        aggregate during any calendar year (with amounts not
                        being used in any calendar year being carried forward to
                        subsequent calendar years; provided that the aggregate
                        amount in any calendar year may not exceed $10.0
                        million);

                  (b)   the purchase, redemption or other acquisition,
                        cancellation or retirement for value of Capital Stock of
                        the Company, any Restricted Subsidiary or Holdings held
                        by any existing or former directors, employees or
                        officers of the Company or Holdings or any Subsidiary of
                        the Company or their assigns, estates or heirs, made by
                        exchange for Subordinated Obligations of the Company in
                        connection with the repurchase provisions of the
                        Company's Employee Stock Ownership Plan and Trust
                        Agreement, as amended, as in effect on the Issue Date
                        and only to the extent of amounts mandatorily required
                        to be purchased, redeemed, acquired, cancelled or
                        retired by such Employee Stock Ownership Plan and Trust
                        Agreement, as amended, as in effect on the Issue Date;
                        and

                  (c)   loans or advances to employees or directors of the
                        Company or Holdings or any Subsidiary of the Company the
                        proceeds of which are used to purchase Capital Stock of
                        the Company or Holdings, in an aggregate principal
                        amount not in excess of $1.0 million at any one time
                        outstanding; provided, however, that the Company and its
                        Subsidiaries shall comply in all material respects with
                        all applicable provisions of the Sarbanes-Oxley Act and
                        the rules and regulations promulgated in connection
                        therewith relating to such loans and advances;

            (7)   so long as no Default or Event of Default has occurred and is
                  continuing, the declaration and payment of dividends to
                  holders of any class or series of Disqualified Stock of the
                  Company issued in accordance with the terms of this Indenture
                  to the extent such dividends are included in the definition of
                  "Consolidated Interest Expense";

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<PAGE>

            (8)   repurchases of Capital Stock deemed to occur upon the exercise
                  of stock options, warrants or other convertible securities if
                  such Capital Stock represents a portion of the exercise price
                  thereof;

            (9)   cash dividends or loans to Holdings in amounts equal to:

                  (a)   the amounts required for Holdings to pay any Federal,
                        state or local income taxes to the extent that such
                        income taxes are directly attributable to the income of
                        the Company and its Restricted Subsidiaries;

                  (b)   to the extent of amounts actually received by the
                        Company from its Unrestricted Subsidiaries, the amounts
                        required for Holdings to pay any Federal, state or local
                        income taxes to the extent that such income taxes are
                        directly attributable to the income of such Unrestricted
                        Subsidiaries;

                  (c)   the amounts required for Holdings to pay franchise taxes
                        and other fees required to maintain its legal existence;

                  (d)   an amount not to exceed $0.5 million in any fiscal year
                        to permit Holdings to pay its corporate overhead
                        expenses Incurred in the ordinary course of business,
                        and to pay salaries or other compensation of employees
                        who perform services for both Holdings and the Company;

                  (e)   an amount not to exceed $57.6 million to enable Holdings
                        to redeem all of the outstanding shares of Holdings'
                        Series A Cumulative Exchangeable Redeemable Preferred
                        Stock on the Issue Date; and

                  (f)   the amounts required to enable Holdings to effect any
                        transaction permitted under clause (6) of this
                        paragraph, to the extent permitted by such clause, in
                        lieu of the Company or any Restricted Subsidiary;

            (10)  the purchase, repurchase, redemption, defeasance or other
                  acquisition or retirement for value of any Subordinated
                  Obligation (i) at a purchase price not greater than 101% of
                  the principal amount of such Subordinated Obligation in the
                  event of a Change of Control in accordance with provisions
                  similar to Section 3.10 or (ii) at a purchase price not
                  greater than 100% of the principal amount thereof in
                  accordance with provisions similar to Section 3.5; provided
                  that, prior to or simultaneously with such purchase,
                  repurchase, redemption, defeasance or other acquisition or
                  retirement, the Company has made the Change of Control Offer
                  or Asset Disposition Offer, as applicable, as provided in such
                  covenant with respect to the Securities and has completed the
                  repurchase or redemption of all

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                  Securities validly tendered for payment in connection with
                  such Change of Control Offer or Asset Disposition Offer; and

            (11)  Restricted Payments in an amount not to exceed $5.0 million.

            The amount of all Restricted Payments (other than cash) shall be the
fair market value on the date of such Restricted Payment of the asset(s) or
securities proposed to be paid, transferred or issued by the Company or such
Restricted Subsidiary, as the case may be, pursuant to such Restricted Payment.
The fair market value of any cash Restricted Payment shall be its face amount
and any non-cash Restricted Payment shall be determined conclusively by the
Board of Directors of the Company acting in good faith whose resolution with
respect thereto shall be delivered to the Trustee, such determination to be
based upon an opinion or appraisal issued by an accounting, appraisal or
investment banking firm of national standing if such fair market value is
estimated in good faith by the Board of Directors of the Company to exceed $20.0
million. Not later than the date of making any Restricted Payment, the Company
shall deliver to the Trustee an Officers' Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Section 3.3 were computed, together with a copy of
any fairness opinion or appraisal required by this Indenture.

            SECTION 3.4. Limitation on Restrictions on Distributions from
Restricted Subsidiaries. The Company shall not, and shall not permit any
Restricted Subsidiary to, create or otherwise cause or permit to exist or become
effective any consensual encumbrance or consensual restriction on the ability of
any Restricted Subsidiary to:

            (1)   pay dividends or make any other distributions on its Capital
                  Stock or pay any Indebtedness or other obligations owed to the
                  Company or any Restricted Subsidiary (it being understood that
                  the priority of any Preferred Stock in receiving dividends or
                  liquidating distributions prior to dividends or liquidating
                  distributions being paid on Common Stock shall not be deemed a
                  restriction on the ability to make distributions on Capital
                  Stock);

            (2)   make any loans or advances to the Company or any Restricted
                  Subsidiary (it being understood that the subordination of
                  loans or advances made to the Company or any Restricted
                  Subsidiary to other Indebtedness Incurred by the Company or
                  any Restricted Subsidiary shall not be deemed a restriction on
                  the ability to make loans or advances); or

            (3)   transfer any of its property or assets to the Company or any
                  Restricted Subsidiary.

            The preceding provisions shall not prohibit:

                  (i)   any encumbrance or restriction pursuant to an agreement
                        in effect at or entered into on the date of this
                        Indenture and identified in an annex to this Indenture,
                        including, without limitation, this Indenture and the
                        Amended Credit Facility in effect on such date;

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<PAGE>

                  (ii)  any encumbrance or restriction with respect to a
                        Restricted Subsidiary pursuant to an agreement relating
                        to any Capital Stock or Indebtedness Incurred by a
                        Restricted Subsidiary on or before the date on which
                        such Restricted Subsidiary was acquired by the Company
                        (other than Capital Stock or Indebtedness Incurred as
                        consideration in, or to provide all or any portion of
                        the funds utilized to consummate, the transaction or
                        series of related transactions pursuant to which such
                        Restricted Subsidiary became a Restricted Subsidiary or
                        was acquired by the Company or in contemplation of the
                        transaction) and outstanding on such date, provided,
                        that any such encumbrance or restriction shall not
                        extend to any assets or property of the Company or any
                        other Restricted Subsidiary other than the assets and
                        property so acquired;

                  (iii) any encumbrance or restriction with respect to a
                        Restricted Subsidiary pursuant to an agreement effecting
                        a refunding, replacement or refinancing of Indebtedness
                        Incurred pursuant to an agreement referred to in clause
                        (i) or (ii) of this paragraph or this clause (iii) or
                        contained in any amendment to an agreement referred to
                        in clause (i) or (ii) of this paragraph or this clause
                        (iii); provided, however, that the encumbrances and
                        restrictions with respect to such Restricted Subsidiary
                        contained in any such agreement are no less favorable in
                        any material respect to the Holders of the Securities
                        than the encumbrances and restrictions contained in such
                        agreements referred to in clauses (i) or (ii) of this
                        paragraph on the Issue Date or the date such Restricted
                        Subsidiary became a Restricted Subsidiary, whichever is
                        applicable;

                  (iv)  in the case of clause (3) of the first paragraph of this
                        covenant, any encumbrance or restriction:

                        (a)   that restricts in a customary manner the
                              subletting, assignment or transfer of any property
                              or asset that is subject to a lease, license or
                              similar contract, or the assignment or transfer of
                              any such lease, license or other contract;

                        (b)   contained in mortgages, pledges or other security
                              agreements permitted under this Indenture securing
                              Indebtedness of the Company or a Restricted
                              Subsidiary to the extent such encumbrances or
                              restrictions restrict the transfer of the property
                              subject to such mortgages, pledges or other
                              security agreements; or

                        (c)   pursuant to customary provisions restricting
                              dispositions of real property interests set forth
                              in any reciprocal easement agreements of the
                              Company or any Restricted Subsidiary;

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<PAGE>

                  (v)   (a) purchase money obligations for property acquired in
                        the ordinary course of business and (b) Capitalized
                        Lease Obligations permitted under this Indenture, in
                        each case, that impose encumbrances or restrictions of
                        the nature described in clause (3) of the first
                        paragraph of this covenant on the property so acquired;

                  (vi)  any restriction with respect to a Restricted Subsidiary
                        (or any of its property or assets) imposed pursuant to
                        an agreement entered into for the direct or indirect
                        sale or disposition of all or substantially all of the
                        Capital Stock or assets of such Restricted Subsidiary
                        (or the property or assets that are subject to such
                        restriction) pending the closing of such sale or
                        disposition;

                  (vii) any provisions in joint venture agreements relating to
                        joint ventures that are not Restricted Subsidiaries and
                        other similar agreements entered into in the ordinary
                        course of business;

                  (viii) encumbrances or restrictions (a) contained in
                        indentures or other debt instruments or debt
                        arrangements Incurred by any Subsidiary Guarantor in
                        accordance with Section 3.2 that are not more materially
                        restrictive, taken as a whole, than those applicable to
                        the Company in either this Indenture or the Amended
                        Credit Facility on the date of this Indenture (which may
                        result in encumbrances or restrictions comparable to
                        those applicable to the Company at a Restricted
                        Subsidiary level) or (b) with respect to Restricted
                        Subsidiaries that are not Subsidiary Guarantors, that
                        are Incurred subsequent to the Issue Date pursuant to
                        clause (12) of the second paragraph of Section 3.2 by
                        Restricted Subsidiaries, provided that after giving
                        effect to such incurrence of Indebtedness under clause
                        (b) above, the Company would be permitted to incur at
                        least $1.00 of additional Indebtedness pursuant to the
                        Consolidated Coverage Ratio test set forth in the first
                        paragraph of Section 3.2;

                  (ix)  net worth provisions in leases and other agreements
                        entered into by the Company or any Restricted Subsidiary
                        in the ordinary course of business; and

                  (x)   encumbrances or restrictions arising or existing by
                        reason of applicable law or any applicable rule,
                        regulation or order.

            SECTION 3.5. Limitation on Sales of Assets and Subsidiary Stock. The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
make any Asset Disposition unless:

            (1)   the Company or such Restricted Subsidiary, as the case may be,
                  receives consideration at least equal to the fair market value
                  (such fair market value to be determined on the date of
                  contractually agreeing to such Asset

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<PAGE>

                  Disposition), as determined in good faith by the Board of
                  Directors of the Company (including as to the value of all
                  non-cash consideration), of the shares and assets subject to
                  such Asset Disposition;

            (2)   at least 75%, or 50% in the case of an Asset Disposition
                  relating to the Specified Real Estate, of the consideration
                  from such Asset Disposition received by the Company or such
                  Restricted Subsidiary, as the case may be, is in the form of
                  cash or Cash Equivalents; and

            (3)   an amount equal to 100% of the Net Available Cash from such
                  Asset Disposition is applied by the Company or such Restricted
                  Subsidiary, as the case may be:

                  (a)   first, to the extent the Company or any Restricted
                        Subsidiary, as the case may be, elects (or is required
                        by the terms of any Indebtedness), to prepay, repay or
                        purchase secured Indebtedness of the Company (other than
                        any Disqualified Stock or Subordinated Obligations) or
                        secured Indebtedness of a Wholly-Owned Subsidiary (other
                        than any Disqualified Stock or Guarantor Subordinated
                        Obligations of a Wholly-Owned Subsidiary that is a
                        Subsidiary Guarantor) (in each case other than
                        Indebtedness owed to the Company or an Affiliate of the
                        Company) within 360 days from the later of the date of
                        such Asset Disposition or the receipt of such Net
                        Available Cash; provided, however, that, in connection
                        with any prepayment, repayment or purchase of
                        Indebtedness pursuant to this clause (a), the Company or
                        such Restricted Subsidiary shall retire such
                        Indebtedness and shall cause the related commitment (if
                        any) to be permanently reduced in an amount equal to the
                        principal amount so prepaid, repaid or purchased; and

                  (b)   second, to the extent of the balance of such Net
                        Available Cash after application in accordance with
                        clause (a), to the extent the Company or such Restricted
                        Subsidiary elects, to invest in Additional Assets within
                        360 days from the later of the date of such Asset
                        Disposition or the receipt of such Net Available Cash;

            provided that pending the final application of any such Net
            Available Cash in accordance with clause (a) or clause (b) above,
            the Company and its Restricted Subsidiaries may temporarily reduce
            Indebtedness or otherwise invest such Net Available Cash in any
            manner not prohibited by this Indenture.

            Any Net Available Cash from Asset Dispositions that are not applied
or invested as provided in the preceding paragraph shall be deemed to constitute
"Excess Proceeds." On the 361st day after an Asset Disposition, if the aggregate
amount of Excess Proceeds exceeds $10.0 million, the Company shall be required
to make an offer ("Asset Disposition Offer") to all Holders of Securities and to
the extent required by the terms of other Pari Passu Indebtedness, to

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<PAGE>

all holders of other Pari Passu Indebtedness outstanding with similar provisions
requiring the Company to make an offer to purchase such Pari Passu Indebtedness
with the proceeds from any Asset Disposition ("Pari Passu Notes"), to purchase
the maximum principal amount of Securities and any such Pari Passu Notes to
which the Asset Disposition Offer applies that may be purchased out of the
Excess Proceeds, at an offer price in cash in an amount equal to 100% of the
principal amount of the Securities and Pari Passu Notes plus accrued and unpaid
interest to the date of purchase, in accordance with the procedures set forth in
this Indenture or the agreements governing the Pari Passu Notes, as applicable,
in each case in integral multiples of $1,000. Any Excess Proceeds not used by
the Company for the purchase of Securities and Pari Passu Notes validly tendered
and not properly withdrawn pursuant to an Asset Disposition Offer may be used by
the Company for general corporate purposes, subject to other covenants contained
in this Indenture. If the aggregate principal amount of Securities surrendered
by Holders thereof and other Pari Passu Notes surrendered by holders or lenders,
collectively, exceeds the amount of Excess Proceeds, the Trustee shall select
the Securities and Pari Passu Notes to be purchased on a pro rata basis on the
basis of the aggregate principal amount of tendered Securities and Pari Passu
Notes. Upon completion of such Asset Disposition Offer, the amount of Excess
Proceeds shall be reset at zero.

            The Asset Disposition Offer shall remain open for a period of 20
Business Days following its commencement, except to the extent that a longer
period is required by applicable law (the "Asset Disposition Offer Period"). No
later than five Business Days after the termination of the Asset Disposition
Offer Period (the "Asset Disposition Purchase Date"), the Company shall purchase
the principal amount of Securities and Pari Passu Notes required to be purchased
pursuant to this covenant (the "Asset Disposition Offer Amount") or, if less
than the Asset Disposition Offer Amount has been so validly tendered, all
Securities and Pari Passu Notes validly tendered in response to the Asset
Disposition Offer.

            If the Asset Disposition Purchase Date is on or after an interest
record date and on or before the related interest payment date, any accrued and
unpaid interest shall be paid to the Person in whose name a Security is
registered at the close of business on such record date, and no additional
interest shall be payable to Holders who tender Securities pursuant to the Asset
Disposition Offer.

            On or before the Asset Disposition Purchase Date, the Company shall,
to the extent lawful, accept for payment, on a pro rata basis to the extent
necessary, the Asset Disposition Offer Amount of Securities and Pari Passu Notes
or portions of Securities and Pari Passu Notes so validly tendered and not
properly withdrawn pursuant to the Asset Disposition Offer, or if less than the
Asset Disposition Offer Amount has been validly tendered and not properly
withdrawn, all Securities and Pari Passu Notes so validly tendered and not
properly withdrawn, in each case in integral multiples of $1,000. The Company
shall deliver to the Trustee an Officers' Certificate stating that such
Securities or portions thereof were accepted for payment by the Company in
accordance with the terms of this covenant and, in addition, the Company shall
deliver all certificates and notes required, if any, by the agreements governing
the Pari Passu Notes. The Company or the Paying Agent, as the case may be, shall
promptly (but in any case not later than five Business Days after termination of
the Asset Disposition Offer Period) mail or deliver to each tendering Holder of
Securities or holder or lender of Pari Passu Notes, as the case may be, an
amount equal to the purchase price of the Securities or Pari Passu

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<PAGE>

Notes so validly tendered and not properly withdrawn by such holder or lender,
as the case may be, and accepted by the Company for purchase, and the Company
will promptly issue a new Security, and the Trustee, upon delivery of an
Officers' Certificate from the Company, shall authenticate and mail or deliver
such new Security to such Holder, in a principal amount equal to any unpurchased
portion of the Security surrendered; provided that each such new Security shall
be in a principal amount of $1,000 or an integral multiple of $1,000. In
addition, the Company shall take any and all other actions required by the
agreements governing the Pari Passu Notes. Any Security not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof. The Company
shall publicly announce the results of the Asset Disposition Offer on the Asset
Disposition Purchase Date.

            For the purposes of this covenant, the following shall be deemed to
be cash:

            (1)   the assumption by the transferee of Indebtedness (other than
                  Subordinated Obligations or Disqualified Stock) of the Company
                  or Indebtedness of a Wholly-Owned Subsidiary (other than
                  Guarantor Subordinated Obligations or Disqualified Stock of
                  any Wholly-Owned Subsidiary that is a Subsidiary Guarantor)
                  and the release of the Company or such Restricted Subsidiary
                  from all liability on such Indebtedness in connection with
                  such Asset Disposition (in which case the Company will,
                  without further action, be deemed to have applied such deemed
                  cash to Indebtedness in accordance with clause (a) above); and

            (2)   securities, notes or other obligations received by the Company
                  or any Restricted Subsidiary from the transferee that are
                  promptly converted by the Company or such Restricted
                  Subsidiary into cash.

The Company shall comply, to the extent applicable, with the requirements of
Section 14(e) of the Exchange Act and any other securities laws or regulations
in connection with the repurchase of Securities pursuant to this Indenture. To
the extent that the provisions of any securities laws or regulations conflict
with provisions of this covenant, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Indenture by virtue of any conflict.

            SECTION 3.6. Limitation on Liens. The Company shall not, and shall
not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, Incur or suffer to exist any Lien (other than Permitted Liens) upon any
of its property or assets (including Capital Stock of Restricted Subsidiaries),
whether owned on the date of this Indenture or acquired after that date, which
Lien is securing any Indebtedness, unless contemporaneously with the Incurrence
of such Liens effective provision is made to secure the Indebtedness due under
this Indenture and the Securities or, in respect of Liens on any Restricted
Subsidiary's property or assets, any Subsidiary Guarantee of such Restricted
Subsidiary, equally and ratably with (or prior to in the case of Liens with
respect to Subordinated Obligations or Guarantor Subordinated Obligations, as
the case may be) the Indebtedness secured by such Lien for so long as such
Indebtedness is so secured.

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<PAGE>

            SECTION 3.7. Limitation on Sale/Leaseback Transactions. The Company
shall not, and shall not permit any of its Restricted Subsidiaries to, enter
into any Sale/Leaseback Transaction with respect to any property unless:

            (1)   the Company or such Restricted Subsidiary, as the case may be,
                  receives consideration at the time of such Sale/Leaseback
                  Transaction at least equal to the fair market value (as
                  evidenced by a resolution of the Board of Directors of the
                  Company) of the property subject to such transaction;

            (2)   the Company or such Restricted Subsidiary could have Incurred
                  Indebtedness in an amount equal to the Attributable
                  Indebtedness in respect of such Sale/Leaseback Transaction
                  pursuant to Section 3.2;

            (3)   the Company or such Restricted Subsidiary would be permitted
                  to create a Lien on the property subject to such
                  Sale/Leaseback Transaction without securing the Securities
                  pursuant to Section 3.6; and

            (4)   the Sale/Leaseback Transaction is treated as an Asset
                  Disposition and all of the conditions of this Indenture
                  described in Section 3.5 (including the provisions concerning
                  the application of Net Available Cash) are satisfied with
                  respect to such Sale/Leaseback Transaction, treating all of
                  the consideration received in such Sale/Leaseback Transaction
                  as Net Available Cash for purposes of such covenant.

            SECTION 3.8. Limitation on Affiliate Transactions. The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, enter into or conduct any transaction (including the purchase, sale,
lease or exchange of any property or the rendering of any service) with any
Affiliate of the Company (an "Affiliate Transaction") unless:

            (1)   the terms of such Affiliate Transaction are no less favorable
                  to the Company or such Restricted Subsidiary, as the case may
                  be, than those that could be obtained in a comparable
                  transaction at the time of such transaction in arm's-length
                  dealings with a Person who is not such an Affiliate;

            (2)   in the event such Affiliate Transaction involves an aggregate
                  consideration in excess of $5.0 million, the terms of such
                  transaction have been approved by a majority of the members of
                  the Board of Directors of the Company and by a majority of the
                  members of such Board of Directors having no personal stake in
                  such transaction, if any (and such majority or majorities, as
                  the case may be, determines that such Affiliate Transaction
                  satisfies the criteria in clause (1) above); and

            (3)   in the event such Affiliate Transaction involves an aggregate
                  consideration in excess of $15.0 million, the Company has
                  received a written opinion from an independent investment
                  banking, accounting or appraisal firm of nationally recognized
                  standing that such Affiliate Transaction is not

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<PAGE>

                  materially less favorable than those that might reasonably
                  have been obtained in a comparable transaction at such time on
                  an arm's-length basis from a Person that is not an Affiliate.

            The preceding paragraph shall not apply to:

            (1)   any Restricted Payment (other than a Restricted Investment)
                  permitted to be made pursuant to Section 3.3;

            (2)   any issuance of securities, or other payments, awards or
                  grants in cash, securities or otherwise pursuant to, or the
                  funding of, employment agreements and other compensation
                  arrangements, options to purchase Capital Stock of the
                  Company, restricted stock plans, long-term incentive plans,
                  stock appreciation rights plans, participation plans or
                  similar employee benefits plans and/or indemnity provided on
                  behalf of officers and employees approved by the Board of
                  Directors of the Company;

            (3)   loans or advances to employees, officers or directors in the
                  ordinary course of business of the Company or any of its
                  Restricted Subsidiaries but in any event not to exceed $2.0
                  million in the aggregate outstanding (without giving effect to
                  the forgiveness of any such loan) at any one time with respect
                  to all loans or advances made since the Issue Date; provided,
                  however, that the Company and its Restricted Subsidiaries
                  shall comply in all material respects with all applicable
                  provisions of the Sarbanes-Oxley Act and the rules and
                  regulations promulgated in connection therewith in connection
                  with such loans or advances;

            (4)   any transaction between the Company and a Restricted
                  Subsidiary or between Restricted Subsidiaries and Guarantees
                  issued by the Company or a Restricted Subsidiary for the
                  benefit of the Company or a Restricted Subsidiary, as the case
                  may be, in accordance with Section 3.2;

            (5)   the payment of reasonable and customary fees paid to, and
                  indemnity provided on behalf of, directors of the Company or
                  any Restricted Subsidiary;

            (6)   the performance of obligations of the Company or any of its
                  Restricted Subsidiaries under the terms of any agreement to
                  which the Company or any of its Restricted Subsidiaries is a
                  party as of or on the Issue Date and identified in an annex to
                  this Indenture on the Issue Date, as these agreements may be
                  amended, modified, supplemented, extended or renewed from time
                  to time; provided, however, that any future amendment,
                  modification, supplement, extension or renewal entered into
                  after the Issue Date shall be permitted to the extent that its
                  terms are not more disadvantageous to the Holders of the
                  Securities than the terms of the agreements in effect on the
                  Issue Date; and

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<PAGE>

            (7)   the issuance of Capital Stock (other than Disqualified Stock)
                  of the Company to any Affiliate.

            SECTION 3.9. Limitation on Sale of Capital Stock of Restricted
Subsidiaries. The Company shall not, and shall not permit any Restricted
Subsidiary to, transfer, convey, sell, lease or otherwise dispose of any Voting
Stock of any Restricted Subsidiary or, with respect to a Restricted Subsidiary,
to issue any of its Voting Stock (other than, if necessary, shares of its Voting
Stock constituting directors' qualifying shares) to any Person except:

            (1)   to the Company or a Wholly-Owned Subsidiary; or

            (2)   in compliance with Section 3.5 and immediately after giving
                  effect to such issuance or sale, such Restricted Subsidiary
                  would continue to be a Restricted Subsidiary.

            Notwithstanding the preceding paragraph, the Company or any
Restricted Subsidiary may sell all the Voting Stock of a Restricted Subsidiary
as long as the Company or such Restricted Subsidiary complies with the terms of
Section 3.5.

            SECTION 3.10. Change of Control. Upon the occurrence of a Change of
Control, unless the Company has exercised its right to redeem all of the
Securities pursuant to Article V, each Holder of Securities shall have the right
to require the Company to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of such Holder's Securities at a purchase price in
cash equal to 101% of the principal amount of the Securities plus accrued and
unpaid interest, if any, to the date of purchase (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

            Within 30 days following any Change of Control, unless the Company
has exercised its right to redeem all of the Securities pursuant to Article V,
the Company shall mail a notice (the "Change of Control Offer") to each Holder,
with a copy to the Trustee, stating:

            (1)   that a Change of Control has occurred and that such Holder has
                  the right to require the Company to purchase such Holder's
                  Securities at a purchase price in cash equal to 101% of the
                  principal amount of such Securities plus accrued and unpaid
                  interest, if any, to the date of purchase (subject to the
                  right of Holders of record on a record date to receive
                  interest on the relevant interest payment date) (the "Change
                  of Control Payment");

            (2)   the repurchase date (which shall be no earlier than 30 days
                  nor later than 60 days from the date such notice is mailed)
                  (the "Change of Control Payment Date"); and

            (3)   the procedures determined by the Company, consistent with this
                  Indenture, that a Holder must follow in order to have its
                  Securities repurchased.

On the Change of Control Payment Date, the Company shall, to the extent lawful:

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            (1)   accept for payment all Securities or portions of Securities
                  (in integral multiples of $1,000) properly tendered pursuant
                  to the Change of Control Offer;

            (2)   deposit with the paying agent an amount equal to the Change of
                  Control Payment in respect of all Securities or portions of
                  Securities so tendered; and

            (3)   deliver or cause to be delivered to the Trustee the Securities
                  so accepted together with an Officers' Certificate stating the
                  aggregate principal amount of Securities or portions of
                  Securities being purchased by the Company.

The Paying Agent shall promptly mail to each Holder of Securities so tendered
the Change of Control Payment for such Securities, and the Trustee shall
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Security equal in principal amount to any unpurchased portion
of the Securities surrendered, if any; provided that each such new Security
shall be in a principal amount of $1,000 or an integral multiple thereof.

            If the Change of Control Payment Date is on or after an interest
record date and on or before the related interest payment date, any accrued and
unpaid interest, if any, shall be paid to the Person in whose name a Security is
registered at the close of business on such record date, and no additional
interest shall be payable to Holders who tender pursuant to the Change of
Control Offer.

            Prior to mailing a Change of Control Offer, and as a condition to
such mailing (i) the requisite holders of each issue of Indebtedness issued
under an indenture or other agreement that may be violated by such payment shall
have consented to such Change of Control Offer being made and waived the event
of default, if any, caused by the Change of Control or (ii) the Company shall
repay all outstanding Indebtedness issued under an indenture or other agreement
that may be violated by a payment to the Holders of Securities under a Change of
Control Offer or (iii) the Company must offer to repay all such Indebtedness,
and make payment to the holders of such Indebtedness that accept such offer, and
obtain waivers of any event of default from the remaining holders of such
Indebtedness. The Company covenants to effect such repayment or obtain such
consent within 30 days following any Change of Control, it being a default of
the Change of Control provisions of this Indenture if the Company fails to
comply with such covenant.

            The Company shall not be required to make a Change of Control Offer
upon a Change of Control if a third party makes the Change of Control Offer in
the manner, at the times and otherwise in compliance with the requirements set
forth in this Indenture applicable to a Change of Control Offer made by the
Company and purchases all Securities validly tendered and not withdrawn under
such Change of Control Offer.

            The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Securities pursuant to this
covenant. To the extent that the provisions of

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any securities laws or regulations conflict with provisions of this Indenture,
the Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations described in this Indenture
by virtue of the conflict.

            SECTION 3.11. SEC Reports. Notwithstanding that the Company may not
be subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, to the extent permitted by the Exchange Act, the Company shall file with
the SEC, and make available to the Trustee and the registered Holders of the
Securities, the annual reports and the information, documents and other reports
(or copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) that are specified in Sections 13 and 15(d) of the
Exchange Act within the time periods specified therein. In the event that the
Company is not permitted to file such reports, documents and information with
the SEC pursuant to the Exchange Act, the Company shall nevertheless make
available such Exchange Act information to the Trustee and the Holders of the
Securities as if the Company were subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act within the time periods specified
therein.

            If the Company has designated any of its Subsidiaries as
Unrestricted Subsidiaries, then the quarterly and annual financial information
required by the preceding paragraph shall include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
to the financial statements and in Management's Discussion and Analysis of
Results of Operations and Financial Condition, of the financial condition and
results of operations of the Company and its Restricted Subsidiaries.

            SECTION 3.12. Future Subsidiary Guarantors. After the Issue Date,
the Company shall cause each Restricted Subsidiary that Guarantees any
Indebtedness of the Company or any of the Subsidiary Guarantors to execute and
deliver to the Trustee a supplemental indenture pursuant to which such
Restricted Subsidiary will unconditionally Guarantee, on a joint and several
basis, the full and prompt payment of the principal of, premium, if any, and
interest on the Securities on a senior basis and all other obligations under
this Indenture. Notwithstanding the foregoing, if a Subsidiary Guarantor,
including any Subsidiary Guarantor existing on the Issue Date, is released and
discharged in full from all of its obligations under Guarantees of (1) each
Credit Facility and related documentation and (2) all other Indebtedness of the
Company and its Restricted Subsidiaries, then the Subsidiary Guarantee of such
Subsidiary Guarantor shall be automatically and unconditionally released or
discharged; provided, that such Restricted Subsidiary has not Incurred any
Indebtedness in reliance on its status as a Subsidiary Guarantor pursuant to
Section 3.2 unless such Subsidiary Guarantor's obligations under such
Indebtedness so Incurred are satisfied in full and discharged.

            SECTION 3.13. Maintenance of Office or Agency. The Company shall
maintain an office or agency where the Securities may be presented or
surrendered for payment, where, if applicable, the Securities may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served.
The agency of BNY Midwest Trust Company (the "Agent") currently located at 2
North LaSalle Street, Suite 1020, Chicago, Illinois 60602 shall be such office
or agency of the Company, unless the Company shall designate and maintain some
other office or agency for one or more of such purposes. The Company shall give
prompt written notice to the Trustee of any change in the location of any such
office or agency. If at any time the Company

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<PAGE>

shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Agent of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

            The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind any such designation. The
Company shall give prompt written notice to the Trustee of any such designation
or rescission and any change in the location of any such other office or agency.

            SECTION 3.14. Corporate Existence. Except as otherwise provided in
this Article III, Article IV and Section 10.2(b), the Company shall do or cause
to be done all things necessary to preserve and keep in full force and effect
its corporate existence and the corporate, partnership, limited liability
company or other existence of each Subsidiary Guarantor in accordance with their
respective organizational documents (as the same may be amended from time to
time) and the rights (charter and statutory) licenses and franchises of the
Company and each such Subsidiary Guarantor; provided, however, that the Company
shall not be required to preserve any such right, license or franchise or the
corporate, partnership, limited liability company or other existence of any
Subsidiary Guarantor if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and each of its Restricted Subsidiaries, taken as a
whole, and that the loss thereof is not, and will not be, disadvantageous in any
material respect to the Holders; provided, further, that the foregoing shall not
prohibit a sale, transfer, or conveyance of a Restricted Subsidiary or any of
its assets in compliance with the terms of this Indenture.

            SECTION 3.15. Payment of Taxes and Other Claims. The Company shall
pay or discharge or cause to be paid or discharged, before the same shall become
delinquent, (i) all material taxes, assessments and governmental charges levied
or imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary and (ii) all lawful claims for labor,
materials and supplies, which, if unpaid, might by law become a material
liability or lien upon the property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which appropriate reserves, if necessary (in the
good faith judgment of management of the Company), are being maintained in
accordance with GAAP or where the failure to effect such payment will not be
disadvantageous to the Holders.

            SECTION 3.16. Payments for Consent. Neither the Company nor any of
its Restricted Subsidiaries shall, directly or indirectly, pay or cause to be
paid any consideration, whether by way of interest, fees or otherwise, to any
Holder of any Securities for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or is paid to all Holders of the
Securities that consent, waive or agree to amend in the time frame set forth in
the solicitation documents relating to such consent, waiver or amendment.

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<PAGE>

            SECTION 3.17. Compliance Certificate. The Company shall deliver to
the Trustee within 120 days after the end of each Fiscal Year of the Company an
Officers' Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have
knowledge of any Default or Event of Default and whether or not the signers know
of any Default or Event of Default that occurred during the previous Fiscal
Year. If they do, the certificate shall describe the Default or Event of
Default, its status and the action the Company is taking or proposes to take
with respect thereto. The Company also shall comply with TIA Section 314(a)(4).

            SECTION 3.18. Further Instruments and Acts. Upon request of the
Trustee, or as necessary, the Company shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.

            SECTION 3.19. Limitation on Lines of Business. The Company shall
not, and shall not permit any Restricted Subsidiary to, engage in any business
other than a Related Busine

            SECTION 3.20. Statement by Officers as to Default. The Company shall
deliver to the Trustee, as soon as possible and in any event within 30 days
after the occurrence of any Event of Default or an event which, with notice or
the lapse of time or both, would constitute an Event of Default, an Officers'
Certificate setting forth the details of such Event of Default or Default, its
status and the actions which the Company are taking or propose to take with
respect thereto.

                                   ARTICLE IV

                                SUCCESSOR COMPANY

            SECTION 4.1. Merger and Consolidation. The Company shall not
consolidate with or merge with or into, or convey, transfer or lease all or
substantially all its assets to, any Person, unless:

            (1)   the resulting, surviving or transferee Person (the "Successor
                  Company") will be a corporation organized and existing under
                  the laws of the United States of America, any State of the
                  United States or the District of Columbia and the Successor
                  Company (if not the Company) will expressly assume, by
                  supplemental indenture, executed and delivered to the Trustee,
                  in form satisfactory to the Trustee, all the obligations of
                  the Company under the Securities and this Indenture;

            (2)   immediately after giving effect to such transaction (and
                  treating any Indebtedness that becomes an obligation of the
                  Successor Company or any Subsidiary of the Successor Company
                  as a result of such transaction as having been Incurred by the
                  Successor Company or such Subsidiary at the

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<PAGE>

                  time of such transaction), no Default or Event of Default
                  shall have occurred and be continuing;

            (3)   immediately after giving effect to such transaction, the
                  Successor Company would be able to Incur at least an
                  additional $1.00 of Indebtedness pursuant to the first
                  paragraph of Section 3.2;

            (4)   each Subsidiary Guarantor (unless it is the other party to the
                  transactions above, in which case clause (1) shall apply)
                  shall have by supplemental indenture confirmed that its
                  Subsidiary Guarantee shall apply to such Person's obligations
                  in respect of this Indenture and the Securities and its
                  obligations under the Registration Rights Agreement shall
                  continue to be in effect; and

            (5)   the Company shall have delivered to the Trustee an Officers'
                  Certificate and an Opinion of Counsel, each stating that such
                  consolidation, merger or transfer and such supplemental
                  indenture (if any) comply with this Indenture.

For purposes of this Section 4.1, the sale, lease, conveyance, assignment,
transfer or other disposition of all or substantially all of the properties and
assets of one or more Subsidiaries of the Company, which properties and assets,
if held by the Company instead of such Subsidiaries, would constitute all or
substantially all of the properties and assets of the Company on a consolidated
basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

            The predecessor company shall be released from its obligations under
this Indenture and the Successor Company shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, but, in the case of a lease of all or substantially all its assets,
the predecessor Company shall not be released from the obligation to pay the
principal of and interest on the Securities.

            Notwithstanding the preceding clause (3), (x) any Restricted
Subsidiary may consolidate with, merge into or transfer all or part of its
properties and assets to the Company and (y) the Company may merge with an
Affiliate incorporated solely for the purpose of reincorporating the Company in
another jurisdiction to realize tax benefits; provided that, in the case of a
Restricted Subsidiary that merges into the Company, the Company shall not be
required to comply with the preceding clause (5).

                                   ARTICLE V

                            REDEMPTION OF SECURITIES

            SECTION 5.1. Redemption. The Securities may be redeemed, as a whole
or from time to time in part, subject to the conditions and at the redemption
prices specified in

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paragraph 5 of the form of Securities set forth in Exhibit A and Exhibit B
hereto, which are hereby incorporated by reference and made a part of this
Indenture, together with accrued and unpaid interest, if any, to the Redemption
Date.

            SECTION 5.2. Applicability of Article. Redemption of Securities at
the election of the Company or otherwise, as permitted or required by any
provision of this Indenture, shall be made in accordance with such provision and
this Article.

            SECTION 5.3. Election to Redeem; Notice to Trustee. The election of
the Company to redeem any Securities pursuant to Section 5.1 shall be evidenced
by a Board Resolution of the Company. In case of any redemption at the election
of the Company, the Company shall, upon not later than the earlier of the date
that is 45 days prior to the Redemption Date fixed by the Company or the date on
which notice is given to the Holders (except as provided in Section 5.5 or
unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities to be
redeemed and shall deliver to the Trustee such documentation and records as
shall enable the Trustee to select the Securities to be redeemed pursuant to
Section 5.4. Any such notice may be cancelled at any time prior to notice of
such redemption being mailed to any Holder and shall thereby be void and of no
effect.

            SECTION 5.4. Selection by Trustee of Securities to Be Redeemed. If
less than all the Securities are to be redeemed at any time pursuant to an
optional redemption, the particular Securities to be redeemed shall be selected
not more than 60 days prior to the Redemption Date by the Trustee, from the
outstanding Securities not previously called for redemption, in compliance with
the requirements of the principal national securities exchange, if any, on which
such Securities are listed, or, if such Securities are not so listed, on a pro
rata basis among the classes of Securities, by lot or by such other method as
the Trustee in its sole discretion shall deem fair and appropriate (and in such
manner as complies with applicable legal requirements) and which may provide for
the selection for redemption of portions of the principal of the Securities;
provided, however, that no such partial redemption shall reduce the portion of
the principal amount of a Security not redeemed to less than $1,000.

            The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Securities selected
for partial redemption, the method it has chosen for the selection of Securities
and the principal amount thereof to be redeemed.

            For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Securities shall relate, in
the case of any Security redeemed or to be redeemed only in part, to the portion
of the principal amount of such Security which has been or is to be redeemed.

            SECTION 5.5. Notice of Redemption. Notice of redemption shall be
given in the manner provided for in Section 11.2 not less than 30 nor more than
60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed. At the Company's request, the Trustee shall give notice of redemption
in the Company's name and at the Company's expense; provided, however, that the
Company shall deliver to the Trustee, at least 45 days prior to the

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Redemption Date, an Officers' Certificate requesting that the Trustee give such
notice at the Company's expense and the form of notice that shall include the
following items.

            All notices of redemption shall state:

            (1) the Redemption Date,

            (2) the redemption price and the amount of accrued interest to the
      Redemption Date payable as provided in Section 5.7, if any,

            (3) if less than all outstanding Securities are to be redeemed, the
      identification of the particular Securities (or portion thereof) to be
      redeemed, as well as the aggregate principal amount of Securities to be
      redeemed and the aggregate principal amount of Securities to be
      outstanding after such partial redemption,

            (4) in case any Security is to be redeemed in part only, the notice
      which relates to such Security shall state that on and after the
      Redemption Date, upon surrender of such Security, the Holder will receive,
      without charge, a new Security or Securities of authorized denominations
      for the principal amount thereof remaining unredeemed,

            (5) that on the Redemption Date the redemption price (and accrued
      interest, if any, to the Redemption Date payable as provided in Section
      5.7) will become due and payable upon each such Security, or the portion
      thereof, to be redeemed, and, unless the Company defaults in making the
      redemption payment, that interest on Securities called for redemption (or
      the portion thereof) will cease to accrue on and after said date,

            (6) the place or places where such Securities are to be surrendered
      for payment of the redemption price and accrued interest, if any,

            (7) the name and address of the Paying Agent,

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

            (9) the CUSIP, Common Code and ISIN numbers, if applicable, and that
      no representation is made as to the accuracy or correctness of the CUSIP,
      Common Code and ISIN numbers, if applicable, if any, listed in such notice
      or printed on the Securities, and

            (10) the paragraph of the Securities pursuant to which the
      Securities are to be redeemed.

            SECTION 5.6. Deposit of Redemption Price. Prior to 10:00 a.m., New
York City time, on any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company or any of the Company's
Subsidiaries is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 2.4) an amount of money sufficient to pay the redemption
price of, and accrued interest on, all the Securities which are to be redeemed
on that date, other than Securities or portions of Securities called for
redemption that are

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beneficially owned by the Company and have been delivered by the Company to the
Trustee for cancellation.

            SECTION 5.7. Securities Payable on Redemption Date. Notice of
redemption having been given as aforesaid, the Securities or portions of
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the redemption price therein specified (together with accrued
interest, if any, to the Redemption Date), and on and after such date (unless
the Company shall default in the payment of the redemption price and accrued
interest) such Securities shall cease to bear interest and the only right of the
Holders thereof will be to receive payment of the redemption price and, subject
to the next sentence, unpaid interest on such Securities to the Redemption Date.
Upon surrender of any such Security for redemption in accordance with said
notice, such Security shall be paid by the Company at the redemption price,
together with accrued interest, if any, to the Redemption Date (subject to the
rights of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date).

            If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the unpaid principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate borne by
the Securities.

            SECTION 5.8. Securities Redeemed in Part. Any Security which is to
be redeemed only in part (pursuant to the provisions of this Article) shall be
surrendered at the office or agency of the Company maintained for such purpose
pursuant to Section 3.13 (with, if the Company or the Trustee so require, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by the Holder thereof or such Holder's
attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and make available for delivery to the Holder of such
Security at the expense of the Company, a new Security or Securities, of any
authorized denomination as requested by such Holder, in an aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered, provided, that each such new Security will be in a
principal amount of $1,000 or integral multiple thereof.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

            SECTION 6.1. Events of Default. Each of the following constitutes an
"Event of Default":

            (1)   default in any payment of interest or additional interest (as
                  required by the Registration Rights Agreement) on any Security
                  when due, continued for 30 days;

            (2)   default in the payment of principal of or premium, if any, on
                  any Security when due at its Stated Maturity, upon optional
                  redemption, upon required repurchase, upon declaration or
                  otherwise;

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<PAGE>

            (3)   failure by the Company or any Subsidiary Guarantor to comply
                  with its obligations under Section 4.1 or clause (b) of
                  Section 10.2, respectively;

            (4)   failure by the Company or any Restricted Subsidiary to comply
                  for 30 days after notice with any of its obligations under
                  Section 3.2 through Section 3.12 inclusive, Section 3.16 and
                  Section 3.19 (in each case, other than a failure to purchase
                  Securities which will constitute an Event of Default under
                  clause (2) above);

            (5)   failure by the Company or any Restricted Subsidiary to comply
                  for 60 days after notice with its other agreements contained
                  in this Indenture or the Securities;

            (6)   default under any mortgage, indenture or instrument under
                  which there may be issued or by which there may be secured or
                  evidenced any Indebtedness for money borrowed by the Company
                  or any of its Restricted Subsidiaries (or the payment of which
                  is guaranteed by the Company or any of its Restricted
                  Subsidiaries or is recourse to the Company or its Restricted
                  Subsidiaries, by contract or operation of law), other than
                  Indebtedness owed to the Company or a Restricted Subsidiary,
                  whether such Indebtedness or guarantee now exists, or is
                  created after the date of this Indenture, which default:

                  (a)   is caused by a failure to pay principal of, or interest
                        or premium, if any, on such Indebtedness within the
                        grace period provided in such Indebtedness ("payment
                        default"); or

                  (b)   results in the acceleration of such Indebtedness prior
                        to its maturity (the "cross acceleration provision");

                  and, in each case, the principal amount of any such
                  Indebtedness, together with the principal amount of any other
                  such Indebtedness under which there has been a payment default
                  or the maturity of which has been so accelerated, aggregates
                  $5.0 million or more;

            (7)   (a)   the Company or a Significant Subsidiary or group of
                  Restricted Subsidiaries that, taken together (as of the latest
                  audited consolidated financial statements for the Company and
                  its Restricted Subsidiaries), would constitute a Significant
                  Subsidiary pursuant to or within the meaning of any Bankruptcy
                  Law:

                        (i)   commences a voluntary case or proceeding;

                        (ii)  consents to the entry of judgment, decree or order
                              for relief against it in an involuntary case or
                              proceeding;

                        (iii) consents to the appointment of a Custodian of it
                              or for any substantial part of its property;

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<PAGE>

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

                        (v)   consents to or acquiesces in the institution of a
                              bankruptcy or an insolvency proceeding against it;

                        (vi)  takes any corporate action to authorize or effect
                              any of the foregoing; or

                        (vii) takes any comparable action under any foreign laws
                              relating to insolvency; or

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

                        (i)   is for relief in an involuntary case against the
                              Company or a Significant Subsidiary or group of
                              Restricted Subsidiaries that, taken together (as
                              of the latest audited consolidated financial
                              statements for the Company and its Restricted
                              Subsidiaries), would constitute a Significant
                              Subsidiary pursuant to or within the meaning of
                              any Bankruptcy Law;

                        (ii)  appoints a Custodian for all or substantially all
                              of the property of the Company or a Significant
                              Subsidiary or group of Restricted Subsidiaries
                              that, taken together (as of the latest audited
                              consolidated financial statements for the Company
                              and its Restricted Subsidiaries), would constitute
                              a Significant Subsidiary pursuant to or within the
                              meaning of any Bankruptcy Law; or

                        (iii) orders the winding up or liquidation of the
                              Company or a Significant Subsidiary or group of
                              Restricted Subsidiaries that, taken together (as
                              of the latest audited consolidated financial
                              statements for the Company and its Restricted
                              Subsidiaries), would constitute a Significant
                              Subsidiary pursuant to or within the meaning of
                              any Bankruptcy Law; and

                        (iv)  in each case the order, decree or relief remains
                              unstayed and in effect for 60 days;

            (8)   failure by the Company or any Significant Subsidiary or group
                  of Restricted Subsidiaries that, taken together (as of the
                  latest audited consolidated financial statements for the
                  Company and its Restricted Subsidiaries), would constitute a
                  Significant Subsidiary to pay final judgments aggregating in
                  excess of $5.0 million (net of any amounts that a reputable
                  and creditworthy insurance company has acknowledged liability

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<PAGE>

                  for in writing), which judgments are not paid, discharged or
                  stayed for a period of 60 days; or

            (9)   any Subsidiary Guarantee ceases to be in full force and effect
                  (except as contemplated by the terms of this Indenture) or is
                  declared null and void in a judicial proceeding or any
                  Subsidiary Guarantor denies or disaffirms its obligations
                  under this Indenture or its Subsidiary Guarantee, and such
                  Default continues for a period of 10 days.

However, a default under clauses (4) and (5) of this paragraph shall not
constitute an Event of Default until the Trustee or the Holders of 25% in
principal amount of the outstanding Securities notify the Company of the default
and the Company does not cure such default within the time specified in clauses
(4) and (5) of this paragraph after receipt of such notice.

            The foregoing shall constitute Events of Default whatever the reason
for any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body.

            In the case of any Event of Default occurring by reason of any
willful action (or inaction) taken (or not taken) by or on behalf of the Company
or any Subsidiary Guarantor with the intention of avoiding payment of the
premium that the Company would have had to pay if the Company then had elected
to redeem the Securities pursuant to the optional redemption provisions of this
Indenture or was required to repurchase the Securities, an equivalent premium
shall also become and be immediately due and payable to the extent permitted by
law upon the acceleration of the Securities. If an Event of Default occurs prior
to June 1, 2008 by reason of any willful action (or inaction) taken (or not
taken) by or on behalf of the Company or any Subsidiary Guarantor with the
intention of avoiding the prohibition on redemption of the Securities prior to
June 1, 2008, the premium specified in this Indenture shall also become
immediately due and payable to the extent permitted by law upon the acceleration
of the Securities.

            SECTION 6.2. Acceleration. If an Event of Default (other than an
Event of Default described in clause (7) of Section 6.1) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least 25%
in principal amount of the outstanding Securities by notice to the Company and
the Trustee, may, and the Trustee at the request of such Holders shall, declare
the principal of, premium, if any, and accrued and unpaid interest, if any, on
all the Securities to be due and payable. Upon such a declaration, such
principal, premium and accrued and unpaid interest shall be due and payable
immediately.

            In the event of a declaration of acceleration of the Securities
because an Event of Default described in clause (6) of Section 6.1 has occurred
and is continuing, the declaration of acceleration of the Securities shall be
automatically annulled if the event of default or payment default triggering
such Event of Default pursuant to clause (6) of Section 6.1 shall be remedied or
cured by the Company or a Restricted Subsidiary or waived by the holders of the
relevant Indebtedness within 20 days after the declaration of acceleration with
respect thereto and if (1) the annulment of the acceleration of the Securities
would not conflict with any judgment or

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decree of a court of competent jurisdiction and (2) all existing Events of
Default, except nonpayment of principal, premium or interest on the Securities
that became due solely because of the acceleration of the Securities, have been
cured or waived.

            If an Event of Default described in clause (7) of Section 6.1 occurs
and is continuing, the principal of, premium, if any, and accrued and unpaid
interest on all the Securities shall become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holders.

            SECTION 6.3. Other Remedies. If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of (or premium, if any) or
interest on the Securities or to enforce the performance of any provision of the
Securities or this Indenture.

            The Trustee may maintain a proceeding even if it does not possess
any of the Securities or does not produce any of them in the proceeding. A delay
or omission by the Trustee or any Securityholder in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

            SECTION 6.4. Waiver of Past Defaults. The Holders of a majority in
principal amount of the outstanding Securities by notice to the Trustee may (a)
waive, by their consent (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for,
Securities), an existing Default or Event of Default and its consequences,
except a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on a Security, and (b) rescind any such
acceleration with respect to the Securities and its consequences if (1)
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction and (2) all existing Events of Default, other than the
nonpayment of the principal of, premium, if any, and interest on the Securities
that have become due solely by such declaration of acceleration, have been cured
or waived. When a Default or Event of Default is waived, it is deemed cured, but
no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any consequent right.

            SECTION 6.5. Control by Majority. The Holders of a majority in
principal amount of the outstanding Securities may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or,
subject to Sections 7.1 and 7.2, that the Trustee determines is unduly
prejudicial to the rights of other Securityholders or would involve the Trustee
in personal liability; provided, however, that the Trustee may take any other
action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking such action.

            SECTION 6.6. Limitation on Suits. Subject to the provisions of this
Indenture relating to the duties of the Trustee, if an Event of Default occurs
and is continuing, the Trustee

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shall be under no obligation to exercise any of the rights or powers under this
Indenture at the request or direction of any of the Holders unless such Holders
have offered to the Trustee reasonable indemnity or security satisfactory to it
against any loss, liability or expense. Except to enforce the right to receive
payment of principal, premium, if any, or interest when due, no Holder may
pursue any remedy with respect to this Indenture or the Securities unless:

            (1) such Holder has previously given the Trustee notice that an
      Event of Default is continuing;

            (2) Holders of at least 25% in principal amount of the outstanding
      Securities have requested the Trustee to pursue the remedy;

            (3) such Holders have offered the Trustee reasonable security or
      indemnity satisfactory to it against any loss, liability or expense;

            (4) the Trustee has not complied with such request within 60 days
      after the receipt of the request and the offer of security or indemnity;
      and

            (5) the Holders of a majority in principal amount of the outstanding
      Securities have not given the Trustee a direction that, in the opinion of
      the Trustee, is inconsistent with such request within such 60-day period.

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

            SECTION 6.7. Rights of Holders to Receive Payment. Notwithstanding
any other provision of this Indenture (including, without limitation, Section
6.6), the right of any Holder to receive payment of principal of, premium, if
any, or interest on the Securities held by such Holder, on or after the
respective due dates expressed in the Securities, or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

            SECTION 6.8. Collection Suit by Trustee. If an Event of Default
specified in clauses (1) or (2) of Section 6.1 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with
interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.7.

            SECTION 6.9. Trustee May File Proofs of Claim. The Trustee may file
such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Securityholders allowed in any judicial
proceedings relative to the Company, its Subsidiaries or its or their respective
creditors or properties and, unless prohibited by law or applicable regulations,
may be entitled and empowered to participate as a member of any official
committee of creditors appointed in such matter and may vote on behalf of the
Holders in any election of a trustee in bankruptcy or other Person performing
similar functions, and any Custodian in any such judicial

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proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section
7.7.

            SECTION 6.10. Priorities. If the Trustee collects any money or
property pursuant to this Article VI, it shall pay out the money or property in
the following order:

            FIRST: to the Trustee for amounts due under Section 7.7;

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

            THIRD: to the Company.

            The Trustee may fix a record date and payment date for any payment
to Securityholders pursuant to this Section. At least 15 days before such record
date, the Company shall mail to each Securityholder and the Trustee a notice
that states the record date, the payment date and amount to be paid.

            SECTION 6.11. Undertaking for Costs. In any suit for the enforcement
of any right or remedy under this Indenture or in any suit against the Trustee
for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys' fees and expenses, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by
Holders of more than 10% in outstanding principal amount of the Securities.

                                  ARTICLE VII

                                     TRUSTEE

            SECTION 7.1. Duties of Trustee. (a) If an Event of Default has
occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the circumstances
in the conduct of such Person's own affairs.

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

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            (1) the Trustee undertakes to perform such duties and only such
      duties as are specifically set forth in this Indenture and no implied
      covenants or obligations shall be read into this Indenture against the
      Trustee; and

            (2) in the absence of bad faith on its part, the Trustee may
      conclusively rely, as to the truth of the statements and the correctness
      of the opinions expressed therein, upon certificates, opinions or orders
      furnished to the Trustee and conforming to the requirements of this
      Indenture. However, in the case of any such certificates or opinions which
      by any provisions hereof are specifically required to be furnished to the
      Trustee, the Trustee shall examine such certificates and opinions to
      determine whether or not they conform to the requirements of this
      Indenture (but need not confirm or investigate the accuracy of
      mathematical calculations or other facts stated therein).

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

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

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

            (3) the Trustee shall not be liable with respect to any action it
      takes or omits to take in good faith in accordance with a direction
      received by it pursuant to Section 6.5.

            (d) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.

            (e) Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law.

            (f) No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

            (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section and to the provisions of the TIA.

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

            (i) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders unless such Holders shall have offered to the Trustee
reasonable security or indemnity satisfactory to it, in its

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sole discretion, against the costs, expenses (including reasonable attorneys'
fees and expenses) and liabilities that might be incurred by it in compliance
with such request or direction.

            SECTION 7.2. Rights of Trustee. Subject to Section 7.1:

            (a) The Trustee may conclusively rely on any document (whether in
its original or facsimile form) reasonably believed by it to be genuine and to
have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document. The Trustee shall receive
and retain financial reports and statements of the Company as provided herein,
but shall have no duty to review or analyze such reports or statements to
determine compliance under covenants or other obligations of the Company.

            (b) Before the Trustee acts or refrains from acting, it may require
an Officers' Certificate and/or an Opinion of Counsel. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on an
Officers' Certificate or Opinion of Counsel.

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

            (d) The Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its rights or
powers, unless the Trustee's conduct constitutes willful misconduct or
negligence.

            (e) The Trustee may consult with counsel of its selection, and the
advice or opinion of counsel with respect to legal matters relating to this
Indenture and the Securities shall be full and complete authorization and
protection from liability in respect of any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

            (f) The Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Trust Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default is
received by the Trustee at the corporate trust office of the Trustee specified
in Section 11.2, and such notice references the Securities and this Indenture.

            (g) The rights, privileges, protections, immunities and benefits
given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder.

            (h) The Trustee shall not be deemed to have knowledge of any fact or
matter unless such fact or matter is known to a Trust Officer of the Trustee.

            (i) Whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may request, and in the absence of bad faith
or willful misconduct on its part, rely upon an Officers' Certificate and an
Opinion of Counsel.

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            SECTION 7.3. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company, Subsidiary Guarantors or their
Affiliates with the same rights it would have if it were not Trustee. Any Paying
Agent, Registrar, co-registrar or co-paying agent may do the same with like
rights. However, the Trustee must comply with Sections 7.10 and 7.11. In
addition, the Trustee shall be permitted to engage in transactions with the
Company; provided, however, that if the Trustee acquires any conflicting
interest, as defined in TIA Section 310(b), the Trustee must (i) eliminate such
conflict within 90 days of acquiring such conflicting interest, (ii) apply to
the SEC for permission to continue acting as Trustee or (iii) resign.

            SECTION 7.4. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, shall not be accountable for the Company's use
of the proceeds from the sale of the Securities, shall not be responsible for
the use or application of any money received by any Paying Agent other than the
Trustee or any money paid to the Company pursuant to the terms of this Indenture
and shall not be responsible for any statement of the Company in this Indenture
or in any document issued in connection with the sale of the Securities or in
the Securities other than the Trustee's certificate of authentication.

            SECTION 7.5. Notice of Defaults. If a Default or Event of Default
occurs and is continuing and if a Trust Officer has actual knowledge thereof,
the Trustee shall mail by first class mail to each Securityholder at the address
set forth in the Securities Register notice of the Default or Event of Default
within the earlier of 90 days after it occurs or 30 days after it is actually
known to a Trust Officer or written notice of it is received by the Trustee.
Except in the case of a Default or Event of Default in payment of principal of,
premium, if any, or interest on any Security (including payments pursuant to the
optional redemption or required repurchase provisions of such Security, if any),
the Trustee may withhold the notice if and so long as its board of directors, a
committee of its board of directors or a committee of its Trust Officers in good
faith determines that withholding the notice is in the interests of
Securityholders.

            SECTION 7.6. Reports by Trustee to Holders. As promptly as
practicable after each May 15 following the date of this Indenture beginning May
15, 2005, and in any event prior to June 15 in each year, the Trustee shall mail
to each Securityholder a brief report dated as of such mail date that complies
with TIA Section 313(a) if and to the extent required thereby. The Trustee also
shall comply with TIA Section 313(b) and TIA Section 313(c).

            A copy of each report at the time of its mailing to Securityholders
shall be filed with the SEC and each stock exchange (if any) on which the
Securities are listed. The Company agrees to notify promptly the Trustee
whenever the Securities become listed on any stock exchange and of any delisting
thereof and the Trustee shall comply with TIA Section 313(d).

            SECTION 7.7. Compensation and Indemnity. The Company shall pay to
the Trustee from time to time reasonable compensation for its acceptance of this
Indenture and services hereunder as the Company and the Trustee shall from time
to time agree in writing. The Trustee's compensation shall not be limited by any
law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred or made by it, including costs of collection, costs of preparing and

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reviewing reports, certificates and other documents, costs of preparation and
mailing of notices to Securityholders and reasonable fees and expenses of
counsel retained by the Trustee, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Company shall indemnify the Trustee against any and all loss,
liability, damages, claims or expense (including reasonable attorneys' fees and
expenses) incurred by it without negligence, bad faith or willful misconduct on
its part in connection with the administration of this trust and the performance
of its duties hereunder, including the costs and expenses of enforcing this
Indenture (including this Section 7.7) and of defending itself against any
claims (whether asserted by any Securityholder, the Company or otherwise). The
Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder. The Company shall defend the claim and the
Trustee shall provide reasonable cooperation at the Company's expense in the
defense. The Trustee may have separate counsel and the Company shall pay the
fees and expenses of such counsel, provided that the Company shall not be
required to pay such fees and expenses if they assume the Trustee's defense,
and, in the reasonable judgment of outside counsel to the Trustee, there is no
conflict of interest between the Company and the Trustee in connection with such
defense. Notwithstanding the foregoing, the Company and the Subsidiary
Guarantors need not reimburse any expense or indemnify against any loss,
liability or expense which is finally determined by a court of competent
jurisdiction to have been incurred by the Trustee through the Trustee's own
willful misconduct, negligence or bad faith.

            To secure the Company's payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee other than money or property held in trust to pay
principal of and interest on particular Securities. Such lien shall survive the
satisfaction and discharge of this Indenture. The Trustee's right to receive
payment of any amounts due under this Section 7.7 shall not be subordinate to
any other liability or Indebtedness of the Company.

            The Company's payment obligations pursuant to this Section shall
survive the discharge of this Indenture. When the Trustee incurs expenses after
the occurrence of a Default specified in clause (7) or clause (8) of Section 6.1
with respect to the Company, the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.

            SECTION 7.8. Replacement of Trustee. The Trustee may resign at any
time by so notifying the Company in writing. The Holders of a majority in
principal amount of the Securities may remove the Trustee by so notifying the
removed Trustee in writing and may appoint a successor Trustee with the
Company's written consent, which consent will not be unreasonably withheld. The
Company shall remove the Trustee if:

            (1) the Trustee fails to comply with Section 7.10;

            (2) the Trustee is adjudged bankrupt or insolvent;

            (3) a receiver or other public officer takes charge of the Trustee
      or its property; or

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            (4) the Trustee otherwise becomes incapable of acting as trustee
      hereunder.

            If the Trustee resigns or is removed by the Company or by the
Holders of a majority in principal amount of the Securities and such Holders do
not reasonably promptly appoint a successor Trustee as described in the
preceding paragraph, or if a vacancy exists in the office of the Trustee for any
reason (the Trustee in such event being referred to herein as the retiring
Trustee), the Company shall promptly appoint a successor Trustee.

            A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Securityholders. The retiring Trustee, upon payment of its charges
hereunder, shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.7.

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

            If the Trustee fails to comply with Section 7.10, unless the
Trustee's duty to resign is stayed as provided in TIA Section 310(b), any
Securityholder, who has been a bona fide holder of a Security for at least six
months, may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

            Notwithstanding the replacement of the Trustee pursuant to this
Section, the Company's obligations under Section 7.7 shall continue for the
benefit of the retiring Trustee.

            SECTION 7.9. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

            In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture, any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Securities in the name
of any predecessor Trustee shall only apply to its successor or successors by
merger, consolidation or conversion.

            SECTION 7.10. Eligibility; Disqualification. This Indenture shall
always have a Trustee that satisfies the requirements of TIA Section 310(a)(1),
(2) and (5) in every respect. The

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Trustee shall have a combined capital and surplus of at least $100 million as
set forth in its most recent published annual report of condition. The Trustee
shall comply with TIA Section 310(b); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities or certificates of interest or participation in
other securities of the Company are outstanding if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

            SECTION 7.11. Preferential Collection of Claims Against the Company.
The Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated.

            SECTION 7.12. Trustee's Application for Instruction from the
Company. Any application by the Trustee for written instructions from the
Company may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the date
on and/or after which such action shall be taken or such omission shall be
effective. The Trustee shall not be liable for any action taken by, or omission
of, the Trustee in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than
three Business Days after the date any officer of the Company actually receives
such application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

            SECTION 7.13. Paying Agents. The Company shall cause each Paying
Agent other than the Trustee to execute and deliver to it and the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 7.13:

            (1) that it will hold all sums held by it as agent for the payment
      of principal of, or premium, if any, or interest on, the Securities
      (whether such sums have been paid to it by the Company or by any obligor
      on the Securities) in trust for the benefit of Holders of the Securities
      or the Trustee;

            (2) that it will at any time during the continuance of any Event of
      Default, upon written request from the Trustee, deliver to the Trustee all
      sums so held in trust by it together with a full accounting thereof; and

            (3) that it will give the Trustee written notice within three
      Business Days of any failure of the Company (or by any obligor on the
      Securities) in the payment of any installment of the principal of,
      premium, if any, or interest on, the Securities when the same shall be due
      and payable.

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                                  ARTICLE VIII

                       DISCHARGE OF INDENTURE; DEFEASANCE

            SECTION 8.1. Discharge of Liability on Securities; Defeasance. (a)
Subject to Section 8.1(c), when (i)(x) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section 2.9)
for cancellation or (y) all outstanding Securities not theretofore delivered for
cancellation have become due and payable, whether at maturity or upon redemption
or will become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption pursuant to Article V hereof and the Company
or any Subsidiary Guarantor irrevocably deposits or causes to be deposited with
the Trustee as trust funds in trust solely for the benefit of the Holders money
in U.S. dollars, U.S. Government Obligations, or a combination thereof, in such
amounts as will be sufficient without consideration of any reinvestment of
interest to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation for principal, premium, if
any, and accrued interest to the date of maturity or redemption; (ii) no Default
or Event of Default shall have occurred and be continuing on the date of such
deposit or shall occur as a result of such deposit and such deposit will not
result in a breach or violation of, or constitute a default under, any other
instrument to which the Company or any Subsidiary Guarantor is a party or by
which the Company or any Subsidiary Guarantor is bound; (iii) the Company or any
Subsidiary Guarantor has paid or caused to be paid all sums payable under this
Indenture and the Securities; and (iv) the Company has delivered irrevocable
instructions to the Trustee under this Indenture to apply the deposited money
toward the payment of such Securities at maturity or the Redemption Date, as the
case may be, then upon demand of the Company (accompanied by an Officers'
Certificate and an Opinion of Counsel stating that all conditions precedent
specified herein relating to the satisfaction and discharge of this Indenture
have been complied with) this Indenture shall cease to be of further effect with
respect to the Securities and the Trustee shall acknowledge satisfaction and
discharge of this Indenture, at the cost and expense of the Company.

            (b) Subject to Sections 8.1(c) and 8.2, the Company at any time may
terminate (i) all its obligations under the Securities and this Indenture
("legal defeasance option"), and after giving effect to such legal defeasance,
any omission to comply with such obligations shall no longer constitute a
Default or Event of Default or (ii) their obligations under Sections 3.2, 3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.16, 3.19 and 4.1(3), and the
Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply with such covenants shall
no longer constitute a Default or an Event of Default under Sections 6.1(3)
(only with respect to Section 4.1(3)), 6.1(4), 6.1(6), 6.1(7) (with respect to
Significant Subsidiaries) and 6.1(8), and the events specified in such Sections
shall no longer constitute an Event of Default (clause (ii) being referred to as
the "covenant defeasance option"), but except as specified above, the remainder
of this Indenture and the Securities shall be unaffected thereby. The Company
may exercise its legal defeasance option notwithstanding its prior exercise of
its covenant defeasance option.

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            If the Company exercises its legal defeasance option, payment of the
Securities may not be accelerated because of an Event of Default and the
Subsidiary Guarantees in effect at such time shall terminate. If the Company
exercises its covenant defeasance option, payment of the Securities may not be
accelerated because of an Event of Default specified in Sections 6.1(3) (only
with respect to Section 4.1(3)), 6.1(4), 6.1(5), 6.1(6), 6.1(7) (with respect
only to Significant Subsidiaries), 6.1(8) or 6.1(9).

            Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge
of those obligations that the Company terminates.

            (c) Notwithstanding the provisions of Sections 8.1(a) and (b), the
Company's obligations in Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.9, 2.10, 2.11,
2.12, 3.1, 3.13, 3.14, 3.15, 3.17, 3.18, 3.20, 6.7, 7.7 and 7.8 and in this
Article VIII shall survive until the Securities have been paid in full. After
the Securities have been paid in full, the Company's obligations in Sections
7.7, 8.4 and 8.5 shall survive.

            SECTION 8.2. Conditions to Defeasance. The Company may exercise its
legal defeasance option or its covenant defeasance option only if:

            (1)   the Company irrevocably deposits in trust with the Trustee for
                  the benefit of the Holders money in U.S. dollars or U.S.
                  Government Obligations or a combination thereof, the principal
                  of and interest (without reinvestment) on which will be
                  sufficient, or a combination thereof sufficient, for the
                  payment of principal of, premium, if any, and interest on the
                  Securities to maturity or redemption, as the case may be;

            (2)   the Company delivers to the Trustee a certificate from a
                  nationally recognized firm of independent accountants
                  expressing their opinion that the payments of principal and
                  interest when due and without reinvestment on the deposited
                  U.S. Government Obligations plus any deposited money without
                  investment will provide cash at such times and in such amounts
                  as will be sufficient to pay principal and interest when due
                  on all the Securities to maturity or redemption, as the case
                  may be;

            (3)   no Default or Event of Default shall have occurred and be
                  continuing on the date of such deposit or, with respect to
                  certain bankruptcy or insolvency Events of Default, on the
                  later of (i) the 91st day after such date of deposit or (ii)
                  the day ending on the day following the expiration of the
                  longest preference period under any bankruptcy law applicable
                  to the Company in respect of such deposit;

            (4)   such legal defeasance or covenant defeasance shall not result
                  in a breach or violation of, or constitute a Default under,
                  this Indenture or any other agreement or instrument to which
                  the Company or any of its Subsidiaries is a party or by which
                  the Company or any of its Subsidiaries is bound;

                                       95
<PAGE>

            (5)   the Company shall have delivered to the Trustee an Opinion of
                  Counsel (subject to customary assumptions and exclusions) to
                  the effect that (A) the Securities and (B) assuming no
                  intervening bankruptcy of the Company between the date of
                  deposit and the 91st day following the deposit and that no
                  Holder of the Securities is an insider of the Company, after
                  the 91st day following the deposit, the trust funds, will not
                  be subject to the effect of any applicable bankruptcy,
                  insolvency, reorganization or similar laws affecting
                  creditors' rights generally;

            (6)   the Company delivers to the Trustee an Opinion of Counsel
                  (subject to customary assumptions and exclusions) to the
                  effect that the trust resulting from the deposit does not
                  constitute, or is qualified as, a regulated investment company
                  under the Investment Company Act of 1940;

            (7)   in the case of the legal defeasance option, the Company shall
                  have delivered to the Trustee an Opinion of Counsel (subject
                  to customary assumptions and exclusions) in the United States
                  stating that (i) the Company has received from, or there has
                  been published by, the Internal Revenue Service a ruling, or
                  (ii) since the date of this Indenture there has been a change
                  in the applicable federal income tax law, in either case to
                  the effect that, and based thereon such Opinion of Counsel
                  shall confirm that, the Securityholders will not recognize
                  income, gain or loss for federal income tax purposes as a
                  result of such deposit and legal defeasance and will be
                  subject to federal income tax on the same amount, in the same
                  manner and at the same times as would have been the case if
                  such deposit and legal defeasance had not occurred;

            (8)   in the case of the covenant defeasance option, the Company
                  shall have delivered to the Trustee an Opinion of Counsel
                  (subject to customary assumptions and exclusions) in the
                  United States to the effect that the Securityholders will not
                  recognize income, gain or loss for federal income tax purposes
                  as a result of such deposit and covenant defeasance and will
                  be subject to federal income tax on the same amount, in the
                  same manner and at the same times as would have been the case
                  if such deposit and covenant defeasance had not occurred; and

            (9)   the Company delivers to the Trustee an Officers' Certificate
                  and an Opinion of Counsel, each stating that all conditions
                  precedent to either the legal defeasance or covenant
                  defeasance, as the case may be, as contemplated by this
                  Article VIII have been complied with.

            SECTION 8.3. Application of Trust Money. The Trustee shall hold in
trust all money or U.S. Government Obligations (including proceeds thereof)
deposited with it pursuant to this Article VIII. It shall apply the deposited
money and the money from U.S. Government Obligations through the Paying Agent
and in accordance with this Indenture and the Securities to the Holders of the
Securities of all sums due in respect of the payment of principal of, premium,
if any, and accrued interest on the Securities.

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<PAGE>

            SECTION 8.4. Repayment to the Company. The Trustee and the Paying
Agent shall promptly turn over to the Company upon request any excess money,
U.S. Government Obligations or securities held by them upon payment of all the
obligations under this Indenture.

            Subject to any applicable abandoned property law, the Trustee and
the Paying Agent shall pay to the Company upon request any money held by them
for the payment of principal of or premium, if any, or interest on the
Securities that remains unclaimed by the Holders thereof for two years, and,
thereafter, Securityholders entitled to the money must look to the Company for
payment as unsecured general creditors.

            SECTION 8.5. Indemnity for U.S. Government Obligations. The Company
shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or the
principal and interest received on such U.S. Government Obligations.

            SECTION 8.6. Reinstatement. If the Trustee or Paying Agent is unable
to apply any money or U.S. Government Obligations in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the obligations of the Company and each
Subsidiary Guarantor under this Indenture and the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to this Article VIII
until such time as the Trustee or Paying Agent is permitted to apply all such
money or U.S. Government Obligations in accordance with this Article VIII;
provided, however, that, if the Company or the Subsidiary Guarantors have made
any payment of principal, premium, if any, interest on or principal of any
Securities because of the reinstatement of its obligations, the Company or
Subsidiary Guarantors, as the case may be, shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

            The Trustee's rights under this Article VIII shall survive
termination of this Indenture.

                                   ARTICLE IX

                                   AMENDMENTS

            SECTION 9.1. Without Consent of Holders. The Company, the Subsidiary
Guarantors and the Trustee may amend or supplement this Indenture or the
Securities without notice to or consent of any Securityholder:

            (1) to cure any ambiguity, omission, defect or inconsistency;

            (2) to provide for the assumption by a Successor Company of the
      obligations of the Company or the assumption by a successor Person of the
      obligations of any Subsidiary Guarantor under this Indenture;

                                       97
<PAGE>

            (3) to provide for uncertificated Securities in addition to or in
      place of certificated Securities; provided, however, that the
      uncertificated Securities are issued in registered form for purposes of
      Section 163(f) of the Code or in a manner such that the uncertificated
      Securities are described in Section 163(f)(2)(B) of the Code;

            (4) to add Guarantees with respect to the Securities or release a
      Subsidiary Guarantor upon its designation as an Unrestricted Subsidiary;
      provided, however, that the designation is in accord with the applicable
      provisions of this Indenture;

            (5) to secure the Securities;

            (6) to add to the covenants of the Company and the Restricted
      Subsidiaries for the benefit of the Holders or surrender any right or
      power conferred upon the Company;

            (7) to make any change that does not adversely affect the rights of
      any Holder;

            (8) to comply with any requirement of the SEC in connection with the
      qualification of this Indenture under the TIA;

            (9) to provide for the issuance of the Exchange Securities which
      will have terms substantially identical in all respects to the Initial
      Securities or the Additional Securities, as the case may be (except that
      the transfer restrictions contained in the Initial Securities or the
      Additional Securities, if any, shall be modified or eliminated, as
      appropriate), and which shall be treated, together with any outstanding
      Initial Securities or Additional Securities, as a single class of
      securities; or

            (10) to provide for the appointment of a successor trustee, provided
      that the successor trustee be otherwise qualified and eligible to act as
      such under the terms of this Indenture.

            After an amendment or supplement under this Section becomes
effective, the Company shall mail to Securityholders a notice briefly describing
such amendment or supplement. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment or supplement under this Section.

            SECTION 9.2. With Consent of Holders. The Company, the Subsidiary
Guarantors and the Trustee may amend or supplement this Indenture or the
Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in principal amount of the Securities then
outstanding (including, without limitation, consents obtained in connection with
a purchase of, or tender offer or exchange offer for, Securities). Any past
default or compliance with any provision of this Indenture or the Securities may
be waived with the written consent of the Holders of a majority in principal
amount of the Securities then outstanding (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Securities). However, without the consent of each Securityholder
affected, an amendment, supplement or waiver may not (with respect to any
Securities held by a non-consenting Holder of Securities):

                                       98
<PAGE>

            (1) reduce the principal amount of Securities outstanding whose
      Holders must consent to an amendment;

            (2) reduce the stated rate of or extend the stated time for payment
      of interest or additional interest on any Security;

            (3) reduce the principal of or extend the Stated Maturity of any
      Security;

            (4) reduce the premium payable upon the redemption or repurchase of
      any Security or change the time at which any Security may or shall be
      redeemed or repurchased as described under Section 3.5 or 3.10 (including
      an amendment to the definition of "Change of Control") or Article V or any
      similar provision, whether through an amendment or waiver of Section 3.5
      or 3.10 or Article V, definitions (with the exception of the defined term
      "Asset Disposition") or otherwise;

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

            (6) impair the right of any Holder to receive payment of, principal
      of, premium, if any, and interest on such Holder's Securities on or after
      the due dates therefor or to institute suit for the enforcement of any
      payment on or with respect to such Holder's Securities;

            (7) make any change to the amendment provisions which require each
      Holder's consent or to the waiver provisions; or

            (8) modify the Subsidiary Guarantees in any manner adverse to the
      Holders.

            It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed amendment, supplement or
waiver, but it shall be sufficient if such consent approves the substance
thereof. A consent to any amendment, supplement or waiver under this Indenture
by any Holder of the Securities given in connection with a tender or exchange of
such Holder's Securities will not be rendered invalid by such tender or
exchange.

            After an amendment or supplement under this Section becomes
effective, the Company shall mail to Securityholders a notice briefly describing
such amendment or supplement. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment or supplement under this Section.

            SECTION 9.3. Compliance with Trust Indenture Act. Every amendment or
supplement to this Indenture or the Securities shall comply with the TIA as then
in effect.

            SECTION 9.4. Revocation and Effect of Consents and Waivers. A
consent to an amendment, supplement or a waiver by a Holder of a Security shall
bind the Holder and every subsequent Holder of that Security or portion of the
Security that evidences the same debt as the consenting Holder's Security, even
if notation of the consent or waiver is not made on the Security. Any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder's
Security or portion of the Security if the Trustee receives the notice of
revocation

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<PAGE>

before the date the amendment, supplement or waiver becomes effective or
otherwise in accordance with any related solicitation documents. After an
amendment, supplement or waiver becomes effective, it shall bind every
Securityholder unless it makes a change described in any of clauses (1) through
(8) of Section 9.2, in which case the amendment, supplement, waiver or other
action shall bind each Securityholder who has consented to it and every
subsequent Securityholder that evidences the same debt as the consenting
Holder's Securities. An amendment, supplement or waiver shall become effective
upon receipt by the Trustee of the requisite number of written consents under
Section 9.1 or 9.2 as applicable.

            The Company may, but shall not be obligated to, fix a record date
for the purpose of determining the Securityholders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Securityholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. No such consent shall become
valid or effective more than 120 days after such record date.

            SECTION 9.5. Notation on or Exchange of Securities. If an amendment,
supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place
an appropriate notation on the Security regarding the changed terms and return
it to the Holder. Alternatively, if the Company or the Trustee so determine, the
Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms. Failure to make the
appropriate notation or to issue a new Security shall not affect the validity of
such amendment.

            SECTION 9.6. Trustee To Sign Amendments. The Trustee shall sign any
amendment, supplement or waiver authorized pursuant to this Article IX if the
amendment, supplement or waiver does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may but need
not sign it. In signing such amendment, supplement or waiver the Trustee shall
be entitled to receive indemnity reasonably satisfactory to it and to be
provided with, and (subject to Sections 7.1 and 7.2) shall be fully protected in
relying upon an Officers' Certificate and an Opinion of Counsel stating that
such amendment, supplement or waiver is authorized or permitted by this
Indenture and that such amendment, supplement or waiver is the legal, valid and
binding obligation of the Company and any Subsidiary Guarantors, enforceable
against them in accordance with its terms, subject to customary exceptions, and
complies with the provisions hereof (including Section 9.3).

                                   ARTICLE X

                              SECURITIES GUARANTEE

            SECTION 10.1. Subsidiary Guarantee. Subject to the provisions of
this Article X, each Subsidiary Guarantor hereby fully, unconditionally and
irrevocably guarantees, as primary obligor and not merely as surety, jointly and
severally with each other Subsidiary

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<PAGE>

Guarantor, to each Holder of the Securities and the Trustee, the full and
punctual payment when due, whether at maturity, by acceleration, by redemption
or otherwise, of the principal of, premium, if any, and interest on the
Securities and all other obligations and liabilities of the Company under this
Indenture (including without limitation interest accruing after the filing of
any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company or any Subsidiary
Guarantor whether or not a claim for post-filing or post-petition interest is
allowed in such proceeding and the obligations under Section 7.7) (all the
foregoing being hereinafter collectively called the "Guarantor Obligations").
Each Subsidiary Guarantor agrees that the Guarantor Obligations will rank
equally in right of payment with other Indebtedness of such Subsidiary
Guarantor, except to the extent such other Indebtedness is subordinate to the
Guarantor Obligations. Each Subsidiary Guarantor further agrees (to the extent
permitted by law) that the Guarantor Obligations may be extended or renewed, in
whole or in part, without notice or further assent from it, and that it will
remain bound under this Article X notwithstanding any extension or renewal of
any Guarantor Obligation.

            Each Subsidiary Guarantor waives presentation to, demand of payment
from and protest to the Company of any of the Guarantor Obligations and also
waives notice of protest for nonpayment. Each Subsidiary Guarantor waives notice
of any default under the Securities or the Guarantor Obligations.

            Each Subsidiary Guarantor further agrees that its Subsidiary
Guarantee herein constitutes a Guarantee of payment when due (and not a
Guarantee of collection) and waives any right to require that any resort be had
by any Holder to any security held for payment of the Guarantor Obligations.

            Except as set forth in Section 10.2, the obligations of each
Subsidiary Guarantor hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason (other than payment of the
Guarantor Obligations in full), including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to any defense of
setoff, counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Guarantor Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of
each Subsidiary Guarantor herein shall not be discharged or impaired or
otherwise affected by (a) the failure of any Holder to assert any claim or
demand or to enforce any right or remedy against the Company or any other person
under this Indenture, the Securities or any other agreement or otherwise; (b)
any extension or renewal of any thereof; (c) any rescission, waiver, amendment
or modification of any of the terms or provisions of this Indenture, the
Securities or any other agreement; (d) the release of any security held by any
Holder or the Trustee for the Guarantor Obligations or any of them; (e) the
failure of any Holder to exercise any right or remedy against any other
Subsidiary Guarantor, or (f) any change in the ownership of the Company; (g) by
any default, failure or delay, willful or otherwise, in the performance of the
Guarantor Obligations, or (h) by any other act or thing or omission or delay to
do any other act or thing which may or might in any manner or to any extent vary
the risk of any Subsidiary Guarantor or would otherwise operate as a discharge
of such Subsidiary Guarantor as a matter of law or equity.

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<PAGE>

            Subject to the provisions of Section 3.12, each Subsidiary Guarantor
agrees that its Subsidiary Guarantee herein shall remain in full force and
effect until payment in full of all the Guarantor Obligations or such Subsidiary
Guarantor is released from its Subsidiary Guarantee upon the merger or the sale
of all the Capital Stock or assets of the Subsidiary Guarantor in compliance
with Section 10.2. Each Subsidiary Guarantor further agrees that its Subsidiary
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of or interest
on any of the Guarantor Obligations is rescinded or must otherwise be restored
by any Holder upon the bankruptcy or reorganization of the Company or otherwise.

            In furtherance of the foregoing and not in limitation of any other
right which any Holder has at law or in equity against any Subsidiary Guarantor
by virtue hereof, upon the failure of the Company to pay any of the Guarantor
Obligations when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby
promises to and will, upon receipt of written demand by the Trustee, forthwith
pay, or cause to be paid, in cash, to the Holders an amount equal to the sum of
(i) the unpaid amount of such Guarantor Obligations then due and owing and (ii)
accrued and unpaid interest on such Guarantor Obligations then due and owing
(but only to the extent not prohibited by law).

            Each Subsidiary Guarantor further agrees that, as between such
Subsidiary Guarantor, on the one hand, and the Holders, on the other hand, (x)
the maturity of the Guarantor Obligations guaranteed hereby may be accelerated
as provided in this Indenture for the purposes of its Subsidiary Guarantee
herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantor Obligations guaranteed hereby and
(y) in the event of any such declaration of acceleration of such Guarantor
Obligations, such Guarantor Obligations (whether or not due and payable) shall
forthwith become due and payable by the Subsidiary Guarantor for the purposes of
this Subsidiary Guarantee.

            Each Subsidiary Guarantor also agrees to pay any and all costs and
expenses (including reasonable attorneys' fees and expenses) incurred by the
Trustee or the Holders in enforcing any rights under this Section.

            SECTION 10.2. Limitation on Liability; Termination, Release and
Discharge.

            (a) Any term or provision of this Indenture to the contrary
notwithstanding, the obligations of each Subsidiary Guarantor hereunder will be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Subsidiary Guarantor (including,
without limitation, any guarantees under the Amended Credit Facility) and after
giving effect to any collections from or payments made by or on behalf of any
other Subsidiary Guarantor in respect of the obligations of such other
Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to its
contribution obligations under this Indenture, result in the obligations of such
Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law and not
otherwise being void or voidable under any similar laws affecting the rights of
creditors generally.

            (b) In addition, the Company shall not permit any Subsidiary
Guarantor to consolidate with or merge with or into any person (other than
another Subsidiary Guarantor) and

                                      102
<PAGE>

shall not permit the conveyance, transfer or lease of substantially all of the
assets of any Subsidiary Guarantor unless:

            (1)   (x) the resulting, surviving or transferee Person shall be a
                  corporation, partnership, trust or limited liability company
                  organized and existing under the laws of the United States of
                  America, any State of the United States or the District of
                  Columbia and such Person (if not such Subsidiary Guarantor)
                  shall expressly assume, by supplemental indenture, executed
                  and delivered to the Trustee, all the obligations of such
                  Subsidiary Guarantor under its Subsidiary Guarantee; (y)
                  immediately after giving effect to such transaction (and
                  treating any Indebtedness that becomes an obligation of the
                  resulting, surviving or transferee Person or any Restricted
                  Subsidiary as a result of such transaction as having been
                  Incurred by such Person or such Restricted Subsidiary at the
                  time of such transaction), no Default or Event of Default
                  shall have occurred and be continuing; and (z) the Company
                  shall have delivered to the Trustee an Officers' Certificate
                  and an Opinion of Counsel, each stating that such
                  consolidation, merger or transfer and such supplemental
                  indenture (if any) comply with this Indenture; or

            (2)   the transaction is made in compliance with Sections 3.5, 3.9
                  and 4.1.

            Upon the sale or disposition of a Subsidiary Guarantor (by merger,
consolidation, the sale of its Capital Stock or the sale of all or substantially
all of its assets (other than by lease)) and whether or not the Subsidiary
Guarantor is the surviving corporation in such transaction to a Person which is
not the Company or a Restricted Subsidiary, such Subsidiary Guarantor will be
automatically released from all its obligations under this Indenture and its
Subsidiary Guarantee and the Registration Rights Agreement and such Subsidiary
Guarantee will terminate; provided, however, that (x) the sale or other
disposition is in compliance with this Indenture, including Sections 3.5, 3.9
and 4.1 and (y) all the obligations of such Subsidiary Guarantor under all
Credit Facilities and related documentation and any other obligations of such
Subsidiary Guarantor relating to any other Indebtedness of the Company or its
Restricted Subsidiaries terminate upon consummation of such transaction.

            (c) Each Subsidiary Guarantor shall be deemed released from all its
obligations under this Indenture and the Registration Rights Agreement and such
Subsidiary Guarantee shall terminate upon the legal defeasance of the Securities
pursuant to the provisions of Article VIII hereof.

            (d) Each Subsidiary Guarantor shall be released from its obligations
under this Indenture, its Subsidiary Guarantee and the Registration Rights
Agreement if the Company designates such Subsidiary Guarantor as an Unrestricted
Subsidiary and such designation complies with the other applicable provisions of
this Indenture.

            SECTION 10.3. Right of Contribution. Each Subsidiary Guarantor
hereby agrees that to the extent that any Subsidiary Guarantor shall have paid
more than its proportionate share of any payment made on the obligations under
the Subsidiary Guarantees,

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<PAGE>

such Subsidiary Guarantor shall be entitled to seek and receive contribution
from and against the Company, or any other Subsidiary Guarantor who has not paid
its proportionate share of such payment. The provisions of this Section 10.3
shall in no respect limit the obligations and liabilities of each Subsidiary
Guarantor to the Trustee and the Holders and each Subsidiary Guarantor shall
remain liable to the Trustee and the Holders for the full amount guaranteed by
such Subsidiary Guarantor hereunder.

            SECTION 10.4. No Subrogation. Notwithstanding any payment or
payments made by each Subsidiary Guarantor hereunder, no Subsidiary Guarantor
shall be entitled to be subrogated to any of the rights of the Trustee or any
Holder against the Company or any other Subsidiary Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Guarantor Obligations, nor shall any Subsidiary Guarantor
seek or be entitled to seek any contribution or reimbursement from the Company
or any other Subsidiary Guarantor in respect of payments made by such Subsidiary
Guarantor hereunder, until all amounts owing to the Trustee and the Holders by
the Company on account of the Guarantor Obligations are paid in full. If any
amount shall be paid to any Subsidiary Guarantor on account of such subrogation
rights at any time when all of the Guarantor Obligations shall not have been
paid in full, such amount shall be held by such Subsidiary Guarantor in trust
for the Trustee and the Holders, segregated from other funds of such Subsidiary
Guarantor, and shall, forthwith upon receipt by such Subsidiary Guarantor, be
turned over to the Trustee in the exact form received by such Subsidiary
Guarantor (duly indorsed by such Subsidiary Guarantor to the Trustee, if
required), to be applied against the Guarantor Obligations.

                                   ARTICLE XI

                                  MISCELLANEOUS

            SECTION 11.1. Trust Indenture Act Controls. If and to the extent
that any provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
provision required by the TIA shall control. Each Subsidiary Guarantor in
addition to performing its obligations under its Subsidiary Guarantee shall
perform such other obligations as may be imposed upon it with respect to this
Indenture under the TIA.

            SECTION 11.2. Notices. Any notice or communication shall be in
writing and delivered in person, sent by facsimile, delivered by commercial
courier service or mailed by first-class mail, postage prepaid, addressed as
follows:

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<PAGE>

                  if to the Company:

                  Argo-Tech Corporation
                  23555 Euclid Avenue
                  Cleveland, OH  44117

                  Attention:  Paul R. Keen
                              Executive Vice President,
                              General Counsel and Secretary

                  with copies to:

                  Jones Day
                  901 Lakeside Avenue
                  Cleveland, OH 44114

                  Attention:  David P. Porter, Esq.

                  if to the Trustee:

                  BNY Midwest Trust Company
                  2 North LaSalle Street
                  Suite 1020
                  Chicago, IL  60602

                  Attention:  Corporate Trust Administration

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

            Any notice or communication to the Company or the Subsidiary
Guarantors shall be deemed to have been given or made as of the date so
delivered if personally delivered; when answered back, if telexed; when receipt
is acknowledged, if telecopied; and five calendar days after mailing if sent by
registered or certified mail, postage prepaid (except that a notice of change of
address shall not be deemed to have been given until actually received by the
addressee).

            Any notice or communication mailed to a registered Securityholder
shall be mailed to the Securityholder at the Securityholder's address as it
appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed.

            Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it, except that
notices to the Trustee shall be effective only upon receipt.

            SECTION 11.3. Communication by Holders with other Holders.
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with

                                      105
<PAGE>

respect to their rights under this Indenture or the Securities. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA Section
312(c).

            SECTION 11.4. Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Company to the Trustee to take or refrain
from taking any action under this Indenture, the Company shall furnish to the
Trustee:

            (1) an Officers' Certificate in form and substance reasonably
      satisfactory to the Trustee stating that, in the opinion of the signers,
      all conditions precedent, if any, provided for in this Indenture relating
      to the proposed action have been complied with; and

            (2) an Opinion of Counsel in form and substance reasonably
      satisfactory to the Trustee stating that, in the opinion of such counsel,
      all such conditions precedent, if any, provided for in this Indenture
      relating to the proposed action have been complied with.

            SECTION 11.5. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

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

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

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

            (4) a statement as to whether or not, in the opinion of such
      individual, such covenant or condition has been complied with.

            In giving such Opinion of Counsel, counsel may rely as to factual
matters on an Officers' Certificate or on certificates of public officials.

            SECTION 11.6. When Securities Disregarded. In determining whether
the Holders of the required aggregate principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company,
any Subsidiary Guarantor or any Affiliate of them shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee actually knows are so owned shall
be so disregarded. Also, subject to the foregoing, only Securities outstanding
at the time shall be considered in any such determination.

            SECTION 11.7. Rules by Trustee, Paying Agent and Registrar. The
Trustee may make reasonable rules for action by, or at meetings of,
Securityholders. The Registrar and the Paying Agent may make reasonable rules
for their functions.

                                      106
<PAGE>

            SECTION 11.8. Legal Holidays. A "Legal Holiday" is a Saturday, a
Sunday or other day on which commercial banking institutions are authorized or
required to be closed in New York, New York. If a payment date is a Legal
Holiday, payment shall be made on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period. If a regular
record date is a Legal Holiday, the record date shall not be affected.

            SECTION 11.9. GOVERNING LAW. THIS INDENTURE AND THE SECURITIES SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE SECURITIES GUARANTEES.

SECTION 11.10. No Recourse Against Others. No director, officer, employee,
incorporator or stockholder of Holdings, the Company or a Subsidiary Guarantor,
as such, shall have any liability for any obligations of the Company or such
Subsidiary Guarantor under the Securities, this Indenture or a Subsidiary
Guarantee or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Securities by accepting a Security
waives and releases all such liability to the extent permitted by applicable
law. The waiver and release are part of the consideration for issuance of the
Securities. Such waiver may not be effective to waive liabilities under the
federal securities laws and it is the view of the SEC that such a waiver is
against public policy.

            SECTION 11.11. Successors. All agreements of the Company and each
Subsidiary Guarantor in this Indenture and the Securities shall bind their
respective successors. All agreements of the Trustee in this Indenture shall
bind its successors.

            SECTION 11.12. Multiple Originals. The parties may sign any number
of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to prove
this Indenture.

            SECTION 11.13. Qualification of Indenture. The Company shall qualify
this Indenture under the TIA in accordance with the terms and conditions of the
Registration Rights Agreement and shall pay all reasonable costs and expenses
(including attorneys' fees and expenses for the Company, the Trustee and the
Holders) incurred in connection therewith, including, but not limited to, costs
and expenses of qualification of this Indenture and the Securities and printing
this Indenture and the Securities. The Trustee shall be entitled to receive from
the Company any such Officers' Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.

            SECTION 11.14. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended
to be considered a part hereof and shall not modify or restrict any of the terms
or provisions hereof.

                                      107
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed as of the date first above written.

                                               ARGO-TECH CORPORATION

                                               By_______________________________
                                                 Name:
                                                 Title:

                                               ARGO-TECH CORPORATION
                                               (AFTERMARKET)

                                               By_______________________________
                                                 Name:
                                                 Title:

                                               ARGO-TECH CORPORATION (HBP)

                                               By_______________________________
                                                 Name:
                                                 Title:

                                               ARGO-TECH CORPORATION (OEM)

                                               By_______________________________
                                                 Name:
                                                 Title:

                                               ARGO-TECH CORPORATION COSTA MESA

                                               By_______________________________
                                                 Name:
                                                 Title:

                                               DURODYNE, INC.

                                               By_______________________________
                                                 Name:
                                                 Title:

<PAGE>

                                               BNY MIDWEST TRUST COMPANY,
                                               as Trustee

                                               By_______________________________
                                                 Name:
                                                 Title:

<PAGE>

                                                                       ANNEX 3.4

                  AGREEMENTS CONTAINING PERMITTED ENCUMBRANCES

1.    The Indenture.

2.    The Amended Credit Facility.

3.    The Indentures governing the Company's 8 5/8% Senior Subordinated Notes
due 2007.

<PAGE>

                                                                       ANNEX 3.8

                      PERMITTED AGREEMENTS WITH AFFILIATES

1.    Distribution Agreement, dated April 1, 2003, between the Company and
Yamada Corporation.

2.    Distribution Agreement, dated July 29, 1985, between J.C. Carter Company,
Inc. (now known as Argo-Tech Corporation Costa Mesa) and Yamada International
Corporation, which agreement has been assigned, in part, to Avex Aerospace
Corporation.

3.    The Rabbi Trust.

<PAGE>

                                                                       EXHIBIT A

                         [FORM OF FACE OF SERIES A NOTE]

                    [Applicable Restricted Securities Legend]
                       [Depository Legend, if applicable]

No. [___]                           Principal Amount $[___________], as
                                    revised by the Schedule of Increases and
                                    Decreases in Global Security attached hereto
                                    CUSIP NO. __________________________
                                    ISIN: _______________________________

                              ARGO-TECH CORPORATION

                     9 1/4% Senior Note, Series A, due 2011

            Argo-Tech Corporation, a Delaware corporation, promises to pay to
Cede & Co., or its registered assigns, the principal sum of [_______________]
DOLLARS, as revised by the Schedule of Increases and Decreases in Global
Security attached hereto, on June 1, 2011.

      Interest Payment Dates: June 1 and December 1, commencing on December 1,
2004

      Record Dates: May 15 and November 15

            Additional provisions of this Security are set forth on the other
side of this Security.

                                               ARGO-TECH CORPORATION

                                               By:______________________________

TRUSTEE'S CERTIFICATE OF
 AUTHENTICATION

BNY MIDWEST TRUST COMPANY
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.

By:________________________________
         Authorized Signatory                         Date: ________ __, 20__

                                      A-1
<PAGE>

                     [FORM OF REVERSE SIDE OF SERIES A NOTE]

                              ARGO-TECH CORPORATION

                     9 1/4% Senior Note, Series A, due 2011

1.    Interest

            Argo-Tech Corporation, a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the "Company"), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.

            The Company will pay interest semi-annually on June 1 and December
1, commencing on December 1, 2004. Interest on the Securities will accrue from
the most recent date to which interest has been paid on the Securities or, if no
interest has been paid, from June 23, 2004. The Company shall pay interest on
overdue principal, and on overdue premium, if any (plus interest on such
interest to the extent lawful), at the rate borne by the Securities to the
extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

            If an exchange offer (the "Exchange Offer") registered under the
Securities Act is not consummated or a shelf registration statement (the "Shelf
Registration Statement") under the Securities Act with respect to resales of the
Securities is not declared effective by the SEC on or before the date that is
180 days after the Issue Date (the "Target Registration Date") in accordance
with the terms of the Registration Rights Agreement dated June 23, 2004 among
the Company, the Subsidiary Guarantors and the Initial Purchasers, the annual
interest rate borne by the Securities shall be increased from the rate shown
above by (i) 0.25% per annum for the first 90-day period immediately following
the Target Registration Date and (ii) an additional 0.25% per annum with respect
to each subsequent 90-day period, in each case until the Exchange Offer is
completed or the Shelf Registration Statement, if required, is declared
effective by the SEC or the Securities become freely tradable under the
Securities Act, up to a maximum of 1.00% per annum of additional interest. If
the Company receives a request (a "Shelf Request") from an Initial Purchaser
requesting that a Shelf Registration Statement be filed due to an unsold
allotment of Securities held by such Initial Purchaser, and the Shelf
Registration Statement is not declared effective by the SEC by the later of (x)
150 days after the Issue Date and (y) 90 days after the delivery of such Shelf
Request (the "Shelf Additional Interest Date"), the annual interest rate borne
by the Securities shall be increased from the rate shown above by (i) 0.25% per
annum for the first 90-day period immediately following the Shelf Additional
Interest Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Shelf Registration Statement is
declared effective, up to a maximum of 1.00% per annum of additional interest.
The Holder of this Security is entitled to the benefits of such Registration
Rights Agreement.

                                      A-2
<PAGE>

2.    Method of Payment

            By no later than 10:00 a.m. (New York City time) on the date on
which any principal of, premium, if any, or interest on any Security is due and
payable, the Company shall irrevocably deposit with the Trustee or the Paying
Agent money sufficient to pay such principal, premium, if any, and/or interest.
The Company will pay interest (except Defaulted Interest) to the Persons who are
registered Holders of Securities at the close of business on the May 15 or
November 15 next preceding the interest payment date even if Securities are
cancelled, repurchased or redeemed after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. Payments in respect of
Securities represented by a Global Security (including principal, premium, if
any, and interest) will be made by the transfer of immediately available funds
to the accounts specified by The Depository Trust Company or any successor
depository. The Company will make all payments in respect of a Definitive
Security (including principal, premium, if any, and interest) by mailing a check
to the registered address of each Holder thereof; provided, however, that
payments on the Securities may also be made, in the case of a Holder of at least
$1,000,000 aggregate principal amount of Securities, by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than 15
days immediately preceding the relevant due date for payment (or such other date
as the Trustee may accept in its discretion).

3.    Paying Agent and Registrar

            Initially, BNY Midwest Trust Company (the "Trustee") will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice to any Securityholder.
Any of the domestically organized Wholly-Owned Subsidiaries may act as Paying
Agent, Registrar or co-registrar.

4.    Indenture

            The Company issued the Securities under an Indenture dated as of
June 23, 2004 (as it may be amended or supplemented from time to time in
accordance with the terms thereof, the "Indenture"), among the Company, the
Subsidiary Guarantors and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect on
the date of the Indenture (the "Act"). Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all terms and provisions of the Indenture, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

            The Securities are general unsecured, senior obligations of the
Company. The aggregate principal amount of securities that may be authenticated
and delivered under the Indenture is unlimited. This Security is one of the 9
1/4% Senior Notes, Series A, due 2011 referred to in the Indenture. The
Securities include (i) $250,000,000 aggregate principal amount

                                      A-3
<PAGE>

of the Company's 9 1/4% Senior Notes, Series A, due 2011 issued under the
Indenture on June 23, 2004 (herein called "Initial Securities"), (ii) if and
when issued, additional 9 1/4% Senior Notes, Series A, due 2011 or 9 1/4% Senior
Notes, Series B, due 2011 of the Company that may be issued from time to time
under the Indenture subsequent to June 23, 2004 (herein called "Additional
Securities") and (iii) if and when issued, the Company's 9 1/4% Senior Notes,
Series B, due 2011 that may be issued from time to time under the Indenture in
exchange for Initial Securities or Additional Securities in an offer registered
under the Securities Act as provided in the Registration Rights Agreement
(herein called "Exchange Securities"). The Initial Securities, Additional
Securities and Exchange Securities are treated as a single class of securities
under the Indenture. The Indenture imposes certain limitations on the incurrence
of indebtedness, the making of restricted payments, the sale of assets and
subsidiary stock, the incurrence of certain liens, sale-leaseback transactions,
affiliate transactions, the sale of capital stock of restricted subsidiaries,
the making of payments for consents, the entering into of agreements that
restrict distributions from restricted subsidiaries and the consummation of
mergers and consolidations. The Indenture also imposes requirements with respect
to the provision of financial information and the provision of guarantees of the
Securities by certain subsidiaries.

            To guarantee the due and punctual payment of the principal, premium,
if any, and interest (including post-filing or post-petition interest) on the
Securities and all other amounts payable by the Company under the Indenture and
the Securities when and as the same shall be due and payable, whether at
maturity, by acceleration or otherwise, according to the terms of the Securities
and the Indenture, the Subsidiary Guarantors have fully, unconditionally and
irrevocably Guaranteed (and future guarantors, together with the Subsidiary
Guarantors, will fully, unconditionally and irrevocably Guarantee), jointly and
severally, to each Holder of the Securities and the Trustee the Guarantor
Obligations pursuant to Article X of the Indenture on a senior basis.

5.    Redemption

            Except as set forth below, the Securities will not be redeemable at
the option of the Company prior to June 1, 2008. On and after such date, the
Securities will be redeemable, at the Company's option, in whole or in part, at
any time upon not less than 30 nor more than 60 days' prior notice mailed by
first class mail to each Holder's registered address, at the following
redemption prices (expressed in percentages of principal amount), plus accrued
and unpaid interest, if any, to the applicable redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date), if redeemed during the 12-month period
commencing on June 1 of the years set forth below:

     PERIOD                                                     PERCENTAGE
     ------                                                     ----------
     2008                                                        104.625%
     2009                                                        102.313%
     2010 and thereafter                                         100.000%

            In addition, at any time and from time to time prior to June 1,
2007, the Company may redeem in the aggregate up to 35% of the original
principal amount of the Securities (after

                                      A-4
<PAGE>

giving effect to any future issuance of Additional Securities) with the Net Cash
Proceeds of one or more Equity Offerings at a redemption price (expressed as a
percentage of principal amount) of 109.25%, plus accrued and unpaid interest, if
any, to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however, that at least 65% of the original principal amount of
the Securities (after giving effect to any future issuance of Additional
Securities) must remain outstanding after each such redemption; provided
further, that each such redemption occurs within 60 days of the date of closing
of such Equity Offering.

            If the optional redemption date is on or after an interest record
date and on or before the related interest payment date, the accrued and unpaid
interest, if any, will be paid to the Person in whose name the Security is
registered at the close of business on such record date, and no additional
interest will be payable to Holders whose Securities will be subject to
redemption by the Company.

            In the case of any partial redemption, selection of the Securities
for redemption will be made by the Trustee in compliance with the requirements
of the principal national securities exchange, if any, on which the Securities
are listed or, if the Securities are not listed, then on a pro rata basis, by
lot or by such other method as the Trustee in its sole discretion shall deem to
be fair and appropriate, although no Securities of $1,000 in original principal
amount or less will be redeemed in part. Any such notice to the Trustee may be
cancelled at any time prior to notice of such redemption being mailed to any
Holder and shall thereby be void and of no effect. If any Security is to be
redeemed in part only, the notice of redemption relating to such Security shall
state the portion of the principal amount thereof to be redeemed. A new Security
in principal amount equal to the unredeemed portion thereof will be issued in
the name of the Holder thereof upon cancellation of the original Security. On
and after the redemption date, interest will cease to accrue on Securities or
portions thereof called for redemption as long as the Company has deposited with
the Paying Agent funds in satisfaction of the applicable redemption price
pursuant to the Indenture.

6.    Repurchase Provisions

            If a Change of Control occurs, unless the Company has exercised its
right to redeem all of the Securities as described under paragraph 5 of the
Securities, then such Change of Control shall constitute a triggering event
which shall trigger the obligation of the Company to offer to repurchase from
each Holder all or any part (equal to $1,000 or an integral multiple thereof) of
such Holder's Securities at a purchase price in cash equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date
of repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided
in, and subject to the terms of, the Indenture.

7.    Denominations; Transfer; Exchange

            The Securities are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay a sum sufficient to

                                      A-5
<PAGE>

cover any taxes and fees required by law or permitted by the Indenture. The
Registrar need not register the transfer of or exchange (i) any Securities
selected for redemption (except, in the case of a Security to be redeemed in
part, the portion of the Security not to be redeemed) for a period beginning 15
days before the mailing of a notice of Securities to be redeemed and ending on
the date of such mailing or (ii) any Securities for a period beginning 15 days
before an interest payment date and ending on such interest payment date.

8.    Persons Deemed Owners

            The registered Holder of this Security may be treated as the owner
of it for all purposes.

9.    Unclaimed Money

            If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Company for payment as general creditors unless an abandoned property law
designates another person and not to the Trustee for payment.

10.   Defeasance

            Subject to certain exceptions and conditions set forth in the
Indenture, the Company at any time may terminate some or all of its obligations
under the Securities and the Indenture if the Company deposits with the Trustee
money or U.S. Government Obligations for the payment of principal, premium, if
any, and interest on the Securities to redemption or maturity, as the case may
be.

11.   Amendment, Supplement, Waiver

            Subject to certain exceptions set forth in the Indenture, (i) the
Indenture and the Securities may be amended or supplemented by the Company, the
Subsidiary Guarantors and the Trustee with the written consent of the Holders of
at least a majority in principal amount of the then outstanding Securities and
(ii) any default (other than with respect to nonpayment or in respect of a
provision that cannot be amended without the written consent of each
Securityholder affected) or noncompliance with any provision may be waived with
the written consent of the Holders of a majority in principal amount of the then
outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company, the
Subsidiary Guarantors and the Trustee may amend or supplement the Indenture or
the Securities to cure any ambiguity, omission, defect or inconsistency, to
provide for uncertificated Securities in addition to or in place of certificated
Securities, to comply with Article IV or Section 10.2 in respect of the
assumption by a Successor Company of an obligation of the Company or the
assumption by a successor Person of the obligations of any Subsidiary Guarantor
under this Indenture, to add Guarantees with respect to the Securities or
release a Subsidiary Guarantor upon its designation as an Unrestricted
Subsidiary in accordance with the Indenture, to secure the Securities, to make
any change that would provide any additional rights or benefits to the Holders
of the Securities or surrender any right or power conferred upon the

                                      A-6
<PAGE>

Company or that does not adversely affect the rights under the Indenture of any
such Holder, to comply with any requirement of the SEC in order to effect or
maintain the qualification of this Indenture under the TIA, to provide for the
issuance of the Exchange Securities or to provide for the appointment of a
successor Trustee.

12.   Defaults and Remedies

            Under the Indenture, Events of Default include (each of which are
more specially described in the Indenture) (i) default for 30 days in payment of
interest or additional interest (as required by the Registration Rights
Agreement) when due on the Securities; (ii) default in payment of principal of
or premium, if any, on the Securities at Stated Maturity, upon required
repurchase or upon optional redemption pursuant to paragraph 5 of the
Securities, upon declaration or otherwise; (iii) the failure by the Company or
any Subsidiary Guarantor to comply with its obligations under Article IV or
Section 10.2(b) of the Indenture; (iv) failure by the Company or any Restricted
Subsidiary to comply for 30 days after notice with any of its obligations under
the covenants described under Sections 3.2 through 3.12 inclusive, Section 3.16
and Section 3.19 of the Indenture (in each case, other than a failure to
purchase Securities when required under the Indenture, which failure shall
constitute an Event of Default under clause (ii) above); (v) the failure by the
Company or any Restricted Subsidiary to comply for 60 days after notice with its
other agreements contained in the Indenture or under the Securities; (vi)
default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Company or any of its Restricted Subsidiaries (or the payment of
which is guaranteed by the Company or any of its Restricted Subsidiaries or is
recourse to the Company or its Restricted Subsidiaries, by contract or operation
of law), other than Indebtedness owed to the Company or a Restricted Subsidiary,
whether such Indebtedness or guarantee now exists, or is created after the date
of the Indenture, which default (a) is caused by a failure to pay principal of
or interest or premium, if any, on such Indebtedness within the grace period
provided in such Indebtedness ("payment default") or (b) results in the
acceleration of such Indebtedness prior to its maturity (the "cross acceleration
provision") and, in each case, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness under which
there has been a payment default or the maturity of which has been so
accelerated, aggregates $5.0 million or more; (vii) certain events of
bankruptcy, insolvency or reorganization of the Company or a Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary (the
"bankruptcy provisions"); (viii) failure by the Company or any Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final
judgments aggregating in excess of $5.0 million (net of any amounts that a
reputable and creditworthy insurance company has acknowledged liability for in
writing), which judgments are not paid, discharged or stayed for a period of 60
days (the "judgment default provision"); or (ix) any Subsidiary Guarantee ceases
to be in full force and effect (except as contemplated by the terms of the
Indenture) or is declared null and void in a judicial proceeding or any
Subsidiary Guarantor denies or disaffirms its obligations under the Indenture or
its Subsidiary Guarantee, and such Default continues for a period of 10 days.
However, a default under clauses (iv) and

                                      A-7
<PAGE>

(v) will not constitute an Event of Default until the Trustee or the Holders of
25% in principal amount of the outstanding Securities notify the Company of the
default and the Company does not cure such default within the time specified in
clauses (iv) and (v) hereof after receipt of such notice.

            If an Event of Default (other than an Event of Default described in
(vii) hereof) occurs and is continuing, the Trustee by notice to the Company or
the Holders of at least 25% in principal amount of the outstanding Securities
may declare all the Securities to be due and payable immediately. If an Event of
Default described in (vii) hereof occurs and is continuing, the principal of,
premium, if any, and accrued and unpaid interest on all the Securities will
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holders.

            Securityholders may not enforce the Indenture or the Securities
except as provided in the Indenture. The Trustee may refuse to enforce the
Indenture or the Securities unless it receives reasonable indemnity or security.
Subject to certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Securityholders notice of any continuing Default or
Event of Default (except a Default or Event of Default in payment of principal
or interest) if it determines that withholding notice is in their interest.

13.   Trustee Dealings with the Company

            Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

14.   No Recourse Against Others

            No director, officer, employee, incorporator or stockholder of
Holdings, the Company or a Subsidiary Guarantor, as such, shall have any
liability for any obligations of the Company or such Subsidiary Guarantor under
the Securities, this Indenture or a Subsidiary Guarantee or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Securities by accepting a Security waives and releases all such
liability to the extent permitted by applicable law. The waiver and release are
part of the consideration for issuance of the Securities. Such waiver may not be
effective to waive liabilities under the federal securities laws and it is the
view of the SEC that such a waiver is against public policy.

15.   Authentication

            This Security shall not be valid until an authorized signatory of
the Trustee (or an authenticating agent acting on its behalf) manually signs the
certificate of authentication on the other side of this Security.

                                      A-8
<PAGE>

16.   Abbreviations

            Customary abbreviations may be used in the name of a Securityholder
or an assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the
entirety), JT TEN (= joint tenants with rights of survivorship and not as
tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors
Act).

17.   CUSIP, Common Code and ISIN Numbers

            The Company has caused CUSIP, Common Code or ISIN numbers, if
applicable, to be printed on the Securities and have directed the Trustee to use
CUSIP, Common Code or ISIN numbers, if applicable, in notices of redemption as a
convenience to Securityholders. No representation is made as to the accuracy of
such numbers either as printed on the Securities or as contained in any notice
of redemption and reliance may be placed only on the other identification
numbers placed thereon.

18.   Governing Law

            This Security shall be governed by, and construed in accordance
with, the laws of the State of New York.

            The Company will furnish to any Securityholder upon written request
and without charge to the Securityholder a copy of the Indenture. Requests may
be made to:

                              Argo-Tech Corporation
                               23555 Euclid Avenue
                               Cleveland, OH 44117

                             Attention: Paul R. Keen

                                      A-9
<PAGE>

                                 ASSIGNMENT FORM

            To assign this Security, fill in the form below:

            I or we assign and transfer this Security to:

________________________________________________________________________________
              (Print or type assignee's name, address and zip code)

________________________________________________________________________________
               (Insert assignee's social security or tax I.D. No.)

      and irrevocably appoint ___________ agent to transfer this Security on the
      books of the Company. The agent may substitute another to act for him.

________________________________________________________________________________

Date:____________________                      Your Signature:__________________

Signature Guarantee:____________________________________________________________
                         (Signature must be guaranteed)

________________________________________________________________________________
Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

      In connection with any transfer or exchange of any of the Securities
evidenced by this certificate occurring prior to the date that is two years
after the later of the date of original issuance of such Securities and the last
date, if any, on which such Securities were owned by the Company, or any
Affiliate of the Company, the undersigned confirms that such Securities are
being:

CHECK ONE BOX BELOW:

      1[ ]  acquired for the undersigned's own account, without transfer; or

      2[ ]  transferred to the Company; or

      3[ ]  transferred pursuant to and in compliance with Rule 144A under the
            Securities Act of 1933, as amended (the "Securities Act"); or

      4[ ]  transferred pursuant to an effective registration statement under
            the Securities Act; or

      5[ ]  transferred pursuant to and in compliance with Regulation S under
            the Securities Act; or

                                      A-10
<PAGE>

      6[ ]  transferred to an institutional "accredited investor" (within the
            meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities
            Act), that has furnished to the Trustee a signed letter containing
            certain representations and agreements (the form of which letter
            appears as Section 2.7 of the Indenture); or

      7[ ]  transferred pursuant to another available exemption from the
            registration requirements of the Securities Act of 1933, as amended.

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Securities evidenced by this certificate in the name of any person other
than the registered Holder thereof; provided, however, that if box (5), (6) or
(7) is checked, the Trustee or the Company may require, prior to registering any
such transfer of the Securities, in its sole discretion, such legal opinions,
certifications and other information as the Trustee or the Company may
reasonably request to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933, as amended, such as the exemption
provided by Rule 144 under such Act.

                                               _________________________________
                                               Signature

Signature Guarantee:

______________________________                 _________________________________
(Signature must be guaranteed)                 Signature

________________________________________________________________________________

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

      The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon the undersigned's foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

                                               _________________________________
                                               Dated:

                                      A-11
<PAGE>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

             SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

            The following increases and decreases in this Global Security have
been made:

<TABLE>
<S>             <C>                      <C>                      <C>                      <C>
                                                                  Principal Amount of      Signature of
Date of         Amount of decrease in    Amount of increase in    this Global Security     authorized signatory
Decrease or     Principal Amount of      Principal Amount of      following such           of Trustee or
Increase        this Global Security     this Global Security     decrease or increase     Securities Custodian
-----------     ---------------------    ---------------------    --------------------     --------------------
</TABLE>

                                      A-12
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

            If you elect to have this Security purchased by the Company Pursuant
to Section 3.5 or 3.10 of the Indenture, check either box:

                                    [ ]     [ ]
                                    3.5     3.10

            If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 3.5 or Section 3.10 of the Indenture, state the
amount in principal amount (must be integral multiple of $1,000):
$____________________________________________

Date: __________ Your Signature ________________________________________________
                                (Sign exactly as your name appears on the other
                                 side of the Security)

Signature Guarantee: ___________________________________________________________
                                (Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      A-13
<PAGE>

                                                                       EXHIBIT B

                         [FORM OF FACE OF SERIES B NOTE]

                       [Depository Legend, if applicable]

No.[___]                            Principal Amount $[___________], as
                                    revised by the Schedule of Increases and
                                    Decreases in Global Security attached hereto
                                    CUSIP NO. __________________________
                                    ISIN:_______________________________

                              ARGO-TECH CORPORATION

                     9 1/4% Senior Note, Series B, due 2011

            Argo-Tech Corporation, a Delaware corporation, promises to pay to
Cede & Co., or its registered assigns, the principal sum of [_______________]
DOLLARS, as revised by the Schedule of Increases and Decreases in Global
Security attached hereto, on June 1, 2011.

          Interest Payment Dates: June 1 and December 1, commencing on
          December 1, 2004 Record Dates: May 15 and November 15

            Additional provisions of this Security are set forth on the other
side of this Security.

                                               ARGO-TECH CORPORATION

                                               By:______________________________

TRUSTEE'S CERTIFICATE OF
 AUTHENTICATION

BNY MIDWEST TRUST COMPANY
as Trustee, certifies
that this is one of
the Securities referred to
in the Indenture.

By:_________________________________
         Authorized Signatory                         Date: ________ __, 20__

                                      B-1
<PAGE>

                     [FORM OF REVERSE SIDE OF SERIES B NOTE]

                              ARGO-TECH CORPORATION

                     9 1/4% Senior Note, Series B, due 2011

1.    Interest

            Argo-Tech Corporation, a Delaware corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being
herein called the "Company"), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.

            The Company will pay interest semi-annually on June 1 and December
1, commencing on December 1, 2004. Interest on the Securities will accrue from
the most recent date to which interest has been paid on the Securities or, if no
interest has been paid, from June 23, 2004. The Company shall pay interest on
overdue principal, and on overdue premium, if any (plus interest on such
interest to the extent lawful), at the rate borne by the Securities to the
extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2.    Method of Payment

            By no later than 10:00 a.m. (New York City time) on the date on
which any principal of, premium, if any, or interest on any Security is due and
payable, the Company shall irrevocably deposit with the Trustee or the Paying
Agent money sufficient to pay such principal, premium, if any, and/or interest.
The Company will pay interest (except Defaulted Interest) to the Persons who are
registered Holders of Securities at the close of business on the May 15 or
November 15 next preceding the interest payment date even if Securities are
cancelled, repurchased or redeemed after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. Payments in respect of
Securities represented by a Global Security (including principal, premium, if
any, and interest) will be made by the transfer of immediately available funds
to the accounts specified by The Depository Trust Company or any successor
depository. The Company will make all payments in respect of a Definitive
Security (including principal, premium, if any, and interest) by mailing a check
to the registered address of each Holder thereof; provided, however, that
payments on the Securities may also be made, in the case of a Holder of at least
$1,000,000 aggregate principal amount of Securities, by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such
Holder elects payment by wire transfer by giving written notice to the Trustee
or the Paying Agent to such effect designating such account no later than 15
days immediately preceding the relevant due date for payment (or such other date
as the Trustee may accept in its discretion).

                                      B-2
<PAGE>

3.    Paying Agent and Registrar

            Initially, BNY Midwest Trust Company (the "Trustee") will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice to any Securityholder.
Any of the domestically organized Wholly-Owned Subsidiaries may act as Paying
Agent, Registrar or co-registrar.

4.    Indenture

            The Company issued the Securities under an Indenture dated as of
June 23, 2004 (as it may be amended or supplemented from time to time in
accordance with the terms thereof, the "Indenture"), among the Company, the
Subsidiary Guarantors and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect on
the date of the Indenture (the "Act"). Capitalized terms used herein and not
defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all terms and provisions of the Indenture, and
Securityholders are referred to the Indenture and the Act for a statement of
those terms.

            The Securities are general unsecured senior obligations of the
Company. The aggregate principal amount of securities that may be authenticated
and delivered under the Indenture is unlimited. This Security is one of the 9
1/4% Senior Notes, Series B, due 2011 referred to in the Indenture. The
Securities include (i) $250,000,000 aggregate principal amount of the Company's
9 1/4% Senior Notes, Series A, due 2011 issued under the Indenture on June 23,
2004 (herein called "Initial Securities"), (ii) if and when issued, additional 9
1/4% Senior Notes, Series A, due 2011 or 9 1/4% Senior Notes, Series B, due 2011
of the Company that may be issued from time to time under the Indenture
subsequent to June 23, 2004 (herein called "Additional Securities") and (iii) if
and when issued, the Company's 9 1/4% Senior Notes, Series B, due 2011 that may
be issued from time to time under the Indenture in exchange for Initial
Securities or Additional Securities in an offer registered under the Securities
Act as provided in the Registration Rights Agreement (herein called "Exchange
Securities"). The Initial Securities, Additional Securities and Exchange
Securities are treated as a single class of securities under the Indenture. The
Indenture imposes certain limitations on the incurrence of indebtedness, the
making of restricted payments, the sale of assets and subsidiary stock, the
incurrence of certain liens, sale-leaseback transactions, affiliate
transactions, the sale of capital stock of restricted subsidiaries, the making
of payments for consents, the entering into of agreements that restrict
distributions from restricted subsidiaries and the consummation of mergers and
consolidations. The Indenture also imposes requirements with respect to the
provision of financial information and the provision of guarantees of the
Securities by certain subsidiaries.

            To guarantee the due and punctual payment of the principal, premium,
if any, and interest (including post-filing or post-petition interest) on the
Securities and all other amounts payable by the Company under the Indenture and
the Securities when and as the same shall be due and payable, whether at
maturity, by acceleration or otherwise, according to the terms of the Securities
and the Indenture, the Subsidiary Guarantors have fully, unconditionally and
irrevocably Guaranteed (and future guarantors, together with the Subsidiary
Guarantors, will fully, unconditionally and irrevocably Guarantee), jointly and
severally, to each Holder of the

                                      B-3
<PAGE>

Securities and the Trustee the Guarantor Obligations pursuant to Article X of
the Indenture on a senior basis.

5.    Redemption

            Except as set forth below, the Securities will not be redeemable at
the option of the Company prior to June 1, 2008. On and after such date, the
Securities will be redeemable, at the Company's option, in whole or in part, at
any time upon not less than 30 nor more than 60 days' prior notice mailed by
first class mail to each Holder's registered address, at the following
redemption prices (expressed in percentages of principal amount), plus accrued
and unpaid interest, if any, to the applicable redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date), if redeemed during the 12-month period
commencing on June 1 of the years set forth below:

     PERIOD                                                    PERCENTAGE
     ------                                                    ----------
     2008                                                       104.625%
     2009                                                       102.313%
     2010 and thereafter                                        100.000%

            In addition, at any time and from time to time prior to June 1,
2007, the Company may redeem in the aggregate up to 35% of the original
principal amount of the Securities (after giving effect to any future issuance
of Additional Securities) with the Net Cash Proceeds of one or more Equity
Offerings at a redemption price (expressed as a percentage of principal amount)
of 109.25%, plus accrued and unpaid interest, if any, to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date); provided, however,
that at least 65% of the original principal amount of the Securities (after
giving effect to any future issuance of Additional Securities) must remain
outstanding after each such redemption; provided further, that each such
redemption occurs within 60 days of the date of closing of such Equity Offering.

            If the optional redemption date is on or after an interest record
date and on or before the related interest payment date, the accrued and unpaid
interest, if any, will be paid to the Person in whose name the Security is
registered at the close of business on such record date, and no additional
interest will be payable to Holders whose Securities will be subject to
redemption by the Company.

            In the case of any partial redemption, selection of the Securities
for redemption will be made by the Trustee in compliance with the requirements
of the principal national securities exchange, if any, on which the Securities
are listed or, if the Securities are not listed, then on a pro rata basis, by
lot or by such other method as the Trustee in its sole discretion shall deem to
be fair and appropriate, although no Securities of $1,000 in original principal
amount or less will be redeemed in part. Any such notice to the Trustee may be
cancelled at any time prior to notice of such redemption being mailed to any
Holder and shall thereby be void and of no effect. If any Security is to be
redeemed in part only, the notice of redemption relating to such Security shall
state the portion of the principal amount thereof to be redeemed. A new Security
in

                                      B-4
<PAGE>

principal amount equal to the unredeemed portion thereof will be issued in the
name of the Holder thereof upon cancellation of the original Security. On and
after the redemption date, interest will cease to accrue on Securities or
portions thereof called for redemption as long as the Company has deposited with
the Paying Agent funds in satisfaction of the applicable redemption price
pursuant to the Indenture.

6.    Repurchase Provisions

            If a Change of Control occurs, unless the Company has exercised its
right to redeem all of the Securities as described under paragraph 5 of the
Securities, then such Change of Control shall constitute a triggering event
which shall trigger the obligation of the Company to offer to repurchase from
each Holder all or any part (equal to $1,000 or an integral multiple thereof) of
such Holder's Securities at a purchase price in cash equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date
of repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided
in, and subject to the terms of, the Indenture.

7.    Denominations; Transfer; Exchange

            The Securities are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay a sum sufficient to cover any
taxes and fees required by law or permitted by the Indenture. The Registrar need
not register the transfer of or exchange (i) any Securities selected for
redemption (except, in the case of a Security to be redeemed in part, the
portion of the Security not to be redeemed) for a period beginning 15 days
before the mailing of a notice of Securities to be redeemed and ending on the
date of such mailing or (ii) any Securities for a period beginning 15 days
before an interest payment date and ending on such interest payment date.

8.    Persons Deemed Owners

            The registered Holder of this Security may be treated as the owner
of it for all purposes.

9.    Unclaimed Money

            If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Company for payment as general creditors unless an abandoned property law
designates another person and not to the Trustee for payment.

10.   Defeasance

                  Subject to certain exceptions and conditions set forth in the
Indenture, the Company at any time may terminate some or all of its obligations
under the Securities and the

                                      B-5
<PAGE>

Indenture if the Company deposits with the Trustee money or U.S. Government
Obligations for the payment of principal, premium, if any, and interest on the
Securities to redemption or maturity, as the case may be.

11.   Amendment, Supplement, Waiver

            Subject to certain exceptions set forth in the Indenture, (i) the
Indenture and the Securities may be amended or supplemented by the Company, the
Subsidiary Guarantors and the Trustee with the written consent of the Holders of
at least a majority in principal amount of the then outstanding Securities and
(ii) any default (other than with respect to nonpayment or in respect of a
provision that cannot be amended without the written consent of each
Securityholder affected) or noncompliance with any provision may be waived with
the written consent of the Holders of a majority in principal amount of the then
outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company, the
Subsidiary Guarantors and the Trustee may amend or supplement the Indenture or
the Securities to cure any ambiguity, omission, defect or inconsistency, to
provide for uncertificated Securities in addition to or in place of certificated
Securities, to comply with Article IV or Section 10.2 in respect of the
assumption by a Successor Company of an obligation of the Company or the
assumption by a successor Person of the obligations of any Subsidiary Guarantor
under this Indenture, to add Guarantees with respect to the Securities or
release a Subsidiary Guarantor upon its designation as an Unrestricted
Subsidiary in accordance with the Indenture, to secure the Securities, to make
any change that would provide any additional rights or benefits to the Holders
of the Securities or surrender any right or power conferred upon the Company or
that does not adversely affect the rights under the Indenture of any such
Holder, to comply with any requirement of the SEC in order to effect or maintain
the qualification of this Indenture under the TIA, to provide for the issuance
of the Exchange Securities or to provide for the appointment of a successor
Trustee.

12.   Defaults and Remedies

            Under the Indenture, Events of Default include (each of which are
more specially described in the Indenture) (i) default for 30 days in payment of
interest when due on the Securities; (ii) default in payment of principal of or
premium, if any, on the Securities at Stated Maturity, upon required repurchase
or upon optional redemption pursuant to paragraph 5 of the Securities, upon
declaration or otherwise; (iii) the failure by the Company or any Subsidiary
Guarantor to comply with its obligations under Article IV or Section 10.2(b) of
the Indenture; (iv) failure by the Company or any Restricted Subsidiary to
comply for 30 days after notice with any of its obligations under the covenants
described under Sections 3.2 through 3.12 inclusive, Section 3.16 and Section
3.19 of the Indenture (in each case, other than a failure to purchase Securities
when required under the Indenture, which failure shall constitute an Event of
Default under clause (ii) above); (v) the failure by the Company or any
Restricted Subsidiary to comply for 60 days after notice with its other
agreements contained in the Indenture or under the Securities; (vi) default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted

                                      B-6
<PAGE>

Subsidiaries (or the payment of which is guaranteed by the Company or any of its
Restricted Subsidiaries or is recourse to the Company or its Restricted
Subsidiaries, by contract or operation of law), other than Indebtedness owed to
the Company or a Restricted Subsidiary, whether such Indebtedness or guarantee
now exists, or is created after the date of the Indenture, which default (a) is
caused by a failure to pay principal of, or interest or premium, if any, on such
Indebtedness within the grace period provided in such Indebtedness ("payment
default") or (b) results in the acceleration of such Indebtedness prior to its
maturity (the "cross acceleration provision") and, in each case, the principal
amount of any such Indebtedness, together with the principal amount of any other
such Indebtedness under which there has been a payment default or the maturity
of which has been so accelerated, aggregates $5.0 million or more; (vii) certain
events of bankruptcy, insolvency or reorganization of the Company or a
Significant Subsidiary or group of Restricted Subsidiaries that, taken together
(as of the latest audited consolidated financial statements for the Company and
its Restricted Subsidiaries), would constitute a Significant Subsidiary (the
"bankruptcy provisions"); (viii) failure by the Company or any Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final
judgments aggregating in excess of $5.0 million (net of any amounts that a
reputable and creditworthy insurance company has acknowledged liability for in
writing), which judgments are not paid, discharged or stayed for a period of 60
days (the "judgment default provision"); or (ix) any Subsidiary Guarantee ceases
to be in full force and effect (except as contemplated by the terms of the
Indenture) or is declared null and void in a judicial proceeding or any
Subsidiary Guarantor denies or disaffirms its obligations under the Indenture or
its Subsidiary Guarantee, and such Default continues for a period of 10 days.
However, a default under clauses (iv) and (v) will not constitute an Event of
Default until the Trustee or the Holders of 25% in principal amount of the
outstanding Securities notify the Company of the default and the Company does
not cure such default within the time specified in clauses (iv) and (v) hereof
after receipt of such notice.

            If an Event of Default (other than an Event of Default described in
(vii) hereof) occurs and is continuing, the Trustee by notice to the Company or
the Holders of at least 25% in principal amount of the outstanding Securities
may declare all the Securities to be due and payable immediately. If an Event of
Default described in (vii) hereof occurs and is continuing, the principal of,
premium, if any, and accrued and unpaid interest on all the Securities will
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holders.

            Securityholders may not enforce the Indenture or the Securities
except as provided in the Indenture. The Trustee may refuse to enforce the
Indenture or the Securities unless it receives reasonable indemnity or security.
Subject to certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Securityholders notice of any continuing Default or
Event of Default (except a Default or Event of Default in payment of principal
or interest) if it determines that withholding notice is in their interest.

                                      B-7
<PAGE>

13.   Trustee Dealings with the Company

            Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

14.   No Recourse Against Others

            No director, officer, employee, incorporator or stockholder of
Holdings, the Company or a Subsidiary Guarantor, as such, shall have any
liability for any obligations of the Company or such Subsidiary Guarantor under
the Securities, this Indenture or a Subsidiary Guarantee or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Securities by accepting a Security waives and releases all such
liability to the extent permitted by applicable law. The waiver and release are
part of the consideration for issuance of the Securities. Such waiver may not be
effective to waive liabilities under the federal securities laws and it is the
view of the SEC that such a waiver is against public policy.

15.   Authentication

            This Security shall not be valid until an authorized signatory of
the Trustee (or an authenticating agent acting on its behalf) manually signs the
certificate of authentication on the other side of this Security.

16.   Abbreviations

            Customary abbreviations may be used in the name of a Securityholder
or an assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the
entirety), JT TEN (= joint tenants with rights of survivorship and not as
tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors
Act).

17.   CUSIP, Common Code and ISIN Numbers

            The Company has caused CUSIP, Common Code or ISIN numbers, if
applicable, to be printed on the Securities and have directed the Trustee to use
CUSIP, Common Code or ISIN numbers, if applicable, in notices of redemption as a
convenience to Securityholders. No representation is made as to the accuracy of
such numbers either as printed on the Securities or as contained in any notice
of redemption and reliance may be placed only on the other identification
numbers placed thereon.

18.   Governing Law

            This Security shall be governed by, and construed in accordance
with, the laws of the State of New York.

                                      B-8
<PAGE>

            The Company will furnish to any Securityholder upon written request
and without charge to the Securityholder a copy of the Indenture. Requests may
be made to:

                              Argo-Tech Corporation
                               23555 Euclid Avenue
                               Cleveland, OH 44117

                             Attention: Paul R. Keen

                                      B-9
<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to:

________________________________________________________________________________
              (Print or type assignee's name, address and zip code)

________________________________________________________________________________
               (Insert assignee's social security or tax I.D. No.)

and irrevocably appoint ____________ agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him.

________________________________________________________________________________

Date: _______________  Your Signature __________________________________________

Signature Guarantee:  __________________________________________________________
                             (Signature must be guaranteed)

________________________________________________________________________________
Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      B-10
<PAGE>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

             SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

            The following increases and decreases in this Global Security have
been made:

<TABLE>
<S>            <C>                      <C>                      <C>                      <C>
                                                                 Principal Amount of      Signature of
Date of        Amount of decrease in    Amount of increase in    this Global Security     authorized signatory
Decrease or    Principal Amount of      Principal Amount of      following such           of Trustee or
Increase       this Global Security     this Global Security     decrease or increase     Securities Custodian
-----------    ---------------------    ---------------------    --------------------     --------------------
</TABLE>

                                      B-11
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

            If you elect to have this Security purchased by the Company Pursuant
to Section 3.5 or 3.10 of the Indenture, check either box:

                                    [ ]     [ ]
                                    3.5     3.10

            If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 3.5 or Section 3.10 of the Indenture, state the
amount in principal amount (must be integral multiple of $1,000):
$____________________________________________

Date: _______________      Your Signature: _____________________________________
                                           (Sign exactly as your name appears on
                                            the other side of the Security)

Signature Guarantee: ___________________________________________________________
                              (Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      B-12
<PAGE>

                                                                       EXHIBIT C

            FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY GUARANTORS

            This Supplemental Indenture, dated as of [_______ __], 20__ (this
"Supplemental Indenture" or "Guarantee"), among [name of future Subsidiary
Guarantor] (the "Guarantor"), Argo-Tech Corporation (together with its
successors and assigns, the "Company"), each other then existing Subsidiary
Guarantor under the Indenture referred to below, and BNY Midwest Trust Company,
as Trustee under the Indenture referred to below.

                              W I T N E S S E T H:

            WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have
heretofore executed and delivered an Indenture, dated as of June 23, 2004 (as
amended, supplemented, waived or otherwise modified, the "Indenture"), providing
for the issuance of 9 1/4% Senior Notes due 2011 of the Company (the
"Securities");

            WHEREAS, Section 3.12 of the Indenture provides that the Company is
required to cause each Restricted Subsidiary that Guarantees any Indebtedness of
the Company or any of its Subsidiary Guarantors to execute and deliver to the
Trustee a supplemental indenture pursuant to which such Restricted Subsidiary
will unconditionally Guarantee, on a joint and several basis with the other
Subsidiary Guarantors, the full and prompt payment of the principal of, premium,
if any, and interest on the Securities on a senior basis; and

            WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee, the
Company and the Subsidiary Guarantors are authorized to execute and deliver this
Supplemental Indenture to amend or supplement the Indenture, without the consent
of any Securityholder;

            NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the
Guarantor, the Company, the other Subsidiary Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:

                                   ARTICLE I

                                  Definitions

            SECTION 1.1 Defined Terms. As used in this Supplemental Indenture,
terms defined in the Indenture or in the preamble or recital hereto are used
herein as therein defined, except that the term "Holders" in this Guarantee
shall refer to the term "Holders" as defined in the Indenture and the Trustee
acting on behalf or for the benefit of such Holders. The words "herein,"
"hereof" and "hereby" and other words of similar import used in this
Supplemental

<PAGE>

Indenture refer to this Supplemental Indenture as a whole and not to any
particular section hereof.

                                   ARTICLE II

                        Agreement to be Bound; Guarantee

            SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a
party to the Indenture as a Subsidiary Guarantor and as such will have all of
the rights and be subject to all of the obligations and agreements of a
Subsidiary Guarantor under the Indenture. The Guarantor agrees to be bound by
all of the provisions of the Indenture applicable to a Subsidiary Guarantor and
to perform all of the obligations and agreements of a Subsidiary Guarantor under
the Indenture.

            SECTION 2.2 Guarantee. The Guarantor agrees, on a joint and several
basis with all the existing Subsidiary Guarantors, to fully, unconditionally and
irrevocably Guarantee to each Holder of the Securities and the Trustee the
Guarantor Obligations pursuant to Article X of the Indenture on a senior basis.

                                  ARTICLE III

                                 Miscellaneous

            SECTION 3.1 Notices. All notices and other communications to the
Guarantor shall be given as provided in the Indenture to the Guarantor, at its
address set forth below, with a copy to the Company as provided in the Indenture
for notices to the Company.

            SECTION 3.2 Parties. Nothing expressed or mentioned herein is
intended or shall be construed to give any Person, firm or corporation, other
than the Holders and the Trustee, any legal or equitable right, remedy or claim
under or in respect of this Supplemental Indenture or the Indenture or any
provision herein or therein contained.

            SECTION 3.3 Governing Law. This Supplemental Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York.

            SECTION 3.4 Ratification of Indenture; Supplemental Indentures Part
of Indenture. Except as expressly amended hereby, the Indenture is in all
respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect. This Supplemental Indenture shall
form a part of the Indenture for all purposes, and every Holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby. The
Trustee makes no representation or warranty as to the validity or sufficiency of
this Supplemental Indenture.

                                      C-2
<PAGE>

            SECTION 3.5 Counterparts. The parties hereto may sign one or more
copies of this Supplemental Indenture in counterparts, all of which together
shall constitute one and the same agreement.

            SECTION 3.6 Headings. The headings of the Articles and the Sections
in this Guarantee are for convenience of reference only and shall not be deemed
to alter or affect the meaning or interpretation of any provisions hereof.

                                      C-3
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed as of the date first above written.

                                               [SECURITIES GUARANTOR],
                                               as a Guarantor

                                               By:
                                                  ______________________________
                                                  Name:
                                                  Title:
                                                  [Address]

                                               BNY MIDWEST TRUST COMPANY,
                                               as Trustee

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               ARGO-TECH CORPORATION

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               ARGO-TECH CORPORATION
                                               (AFTERMARKET)

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               ARGO-TECH CORPORATION (HBP)

                                               By:______________________________
                                                  Name:
                                                  Title:

<PAGE>

                                               ARGO-TECH CORPORATION (OEM)

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               ARGO-TECH CORPORATION COSTA MESA

                                               By:______________________________
                                                  Name:
                                                  Title:

                                               DURODYNE, INC.

                                               By:______________________________
                                                  Name:
                                                  Title:

                                      C-2<PAGE>

                                                                    Exhibit 10.1

                   THIRD AMENDED AND RESTATED CREDIT AGREEMENT

                                  June 23, 2004

                                      Among

                             ARGO-TECH CORPORATION,
                                  as Borrower,

                            AT HOLDINGS CORPORATION,

                            The LENDERS Party Hereto

                                       and

                               NATIONAL CITY BANK,
                             as Administrative Agent

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

               NATIONAL CITY BANK and J.P. MORGAN SECURITIES INC.,
                  as Joint Lead Arrangers and Joint Bookrunners

                              JPMORGAN CHASE BANK,
                              as Syndication Agent

                      GENERAL ELECTRIC CAPITAL CORPORATION
                                       and
                              FIRSTMERIT BANK, N.A.
                           as Co-Documentation Agents

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                         Page
                                                                                                                         ----
<S>                                                                                                                      <C>
ARTICLE I
Definitions
      SECTION 1.01.  Defined Terms....................................................................................     2
      SECTION 1.02.  Classification of Loans and Borrowings...........................................................    28
      SECTION 1.03.  Terms Generally..................................................................................    29
      SECTION 1.04.  Accounting Terms; GAAP...........................................................................    29
ARTICLE II
The Credits
      SECTION 2.01.  Commitments; Outstanding Loans...................................................................    29
      SECTION 2.02.  Loans and Borrowings.............................................................................    30
      SECTION 2.03.  Requests for Borrowings..........................................................................    31
      SECTION 2.04.  Letters of Credit................................................................................    32
      SECTION 2.05.  Funding of Borrowings............................................................................    36
      SECTION 2.06.  Interest Elections...............................................................................    37
      SECTION 2.07.  Termination and Reduction of Commitments.........................................................    38
      SECTION 2.08.  Repayment of Loans; Evidence of Debt.............................................................    39
      SECTION 2.10.  Prepayment of Loans..............................................................................    40
      SECTION 2.11.  Fees.............................................................................................    41
      SECTION 2.12.  Interest.........................................................................................    42
      SECTION 2.13.  Alternate Rate of Interest.......................................................................    43
      SECTION 2.14.  Increased Costs..................................................................................    44
      SECTION 2.15.  Break Funding Payments...........................................................................    45
      SECTION 2.16.  Taxes............................................................................................    45
      SECTION 2.17.  Payments Generally; Pro Rata Treatment; Sharing of Setoffs.......................................    46
      SECTION 2.18.  Mitigation Obligations; Replacement of Lenders...................................................    48
      SECTION 2.19.  All Advances to Constitute One Indebtedness; Same Indebtedness; Other References.................    49
ARTICLE III
Representations and Warranties
      SECTION 3.01.  Organization; Powers.............................................................................    49
      SECTION 3.02.  Authorization; Enforceability....................................................................    49
      SECTION 3.03.  Governmental Approvals; No Conflicts.............................................................    50
      SECTION 3.04.  Financial Condition; No Material Adverse Change..................................................    50
      SECTION 3.05.  Properties.......................................................................................    51
      SECTION 3.06.  Litigation and Environmental Matters.............................................................    51
      SECTION 3.07.  Compliance with Laws and Agreements..............................................................    51
      SECTION 3.08.  Investment and Holding Company Status............................................................    52
      SECTION 3.09.  Taxes............................................................................................    52
      SECTION 3.10.  ERISA............................................................................................    52
</TABLE>

                                       2

<PAGE>

<TABLE>
<S>                                                                                                                       <C>
      SECTION 3.11.  Disclosure.......................................................................................    52
      SECTION 3.12.  Subsidiaries.....................................................................................    52
      SECTION 3.13.  Insurance........................................................................................    52
      SECTION 3.14.  Labor Matters....................................................................................    53
      SECTION 3.15.  Solvency.........................................................................................    53
      SECTION 3.16.  Security Documents...............................................................................    53
      SECTION 3.17. Federal Reserve Regulations.......................................................................    54
      SECTION 3.18. TRW Agreement.....................................................................................    54
      SECTION 3.19. Tax Status of ESOP................................................................................    54
      SECTION 3.20.  Certain Agreements...............................................................................    54
ARTICLE IV
Conditions
      SECTION 4.01.  Opening Covenants................................................................................    55
      SECTION 4.02.  Prior to Initial Credit Event....................................................................    55
      SECTION 4.03.  Each Credit Event................................................................................    58
ARTICLE V
Affirmative Covenants
      SECTION 5.01.  Financial Statements and Other Information.......................................................    58
      SECTION 5.02.  Notices of Material Events.......................................................................    60
      SECTION 5.03.  Information Regarding Collateral.................................................................    61
      SECTION 5.04.  Existence; Conduct of Business...................................................................    61
      SECTION 5.05.  Payment of Obligations...........................................................................    61
      SECTION 5.06.  Maintenance of Properties........................................................................    62
      SECTION 5.07.  Insurance........................................................................................    62
      SECTION 5.08.  Casualty and Condemnation........................................................................    63
      SECTION 5.09.  Books and Records; Inspection and Audit Rights...................................................    63
      SECTION 5.10.  Compliance with Laws and Agreements..............................................................    64
      SECTION 5.11.  Use of Proceeds and Letters of Credit............................................................    64
      SECTION 5.12.  Additional Subsidiaries..........................................................................    64
      SECTION 5.13.  Further Assurances...............................................................................    65
ARTICLE VI
Negative Covenants
      SECTION 6.01.  Indebtedness; Certain Equity Securities..........................................................    66
      SECTION 6.02.  Liens............................................................................................    67
      SECTION 6.03.  Fundamental Changes..............................................................................    68
      SECTION 6.04.  Investments, Loans, Advances, Guarantees and Acquisitions........................................    69
      SECTION 6.05.  Asset Sales......................................................................................    71
      SECTION 6.06.  Sale and Lease-Back Transactions.................................................................    71
      SECTION 6.07.  Hedging Agreements...............................................................................    71
      SECTION 6.08.  Restricted Payments; Certain Payments of Indebtedness............................................    72
      SECTION 6.09.  Transactions with Affiliates.....................................................................    73
      SECTION 6.10.  Restrictive Agreements...........................................................................    74
      SECTION 6.11.  Amendment of Material Documents..................................................................    74
      SECTION 6.13. Leverage Ratio....................................................................................    75
      SECTION 6.15 Fixed Charge Coverage Ratio........................................................................    75
</TABLE>

                                       3
<PAGE>

<TABLE>
<S>                                                                                                                       <C>
      SECTION 6.16.  Certain Actions under June 2004 Note Documents...................................................    75
ARTICLE VII
Events of Default
ARTICLE VIII
The Administrative Agent
ARTICLE IX
Miscellaneous
      SECTION 9.01.  Notices..........................................................................................    80
      SECTION 9.02.  Waivers; Amendments..............................................................................    81
      SECTION 9.03.  Expenses; Indemnity; Damage Waiver...............................................................    82
      SECTION 9.04.  Successors and Assigns...........................................................................    84
      SECTION 9.05.  Survival.........................................................................................    87
      SECTION 9.06.  Counterparts; Integration; Effectiveness.........................................................    87
      SECTION 9.07.  Severability.....................................................................................    87
      SECTION 9.08.  Right of Setoff..................................................................................    88
      SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process.......................................    88
      SECTION 9.10.  WAIVER OF JURY TRIAL.............................................................................    89
      SECTION 9.11.  Headings.........................................................................................    89
      SECTION 9.12.  Confidentiality..................................................................................    89
      SECTION 9.13.  Joint Lead Arrangers, et al......................................................................    90
      SECTION 9.14.  Interest Rate Limitation.........................................................................    90
      SECTION 9.15.  Existing Credit Agreement; Effectiveness of Amendment and Restatement............................    90
</TABLE>

                                       4
<PAGE>

SCHEDULES:

Schedule 1.01(a) -- Fiscal Quarter Ends
Schedule 1.01(b) -- Immaterial Subsidiaries
Schedule 2.01    -- Commitments
Schedule 2.01(b)    -- Existing Revolving Loans

Schedule 2.01(c) -- Existing Term Loans; Consolidated Term Loans
Schedule 2.04 -- Existing Letters of Credit
Schedule 3.05 -- Real Property
Schedule 3.06 -- Disclosed Matters
Schedule 3.12 -- Subsidiaries
Schedule 3.13 -- Insurance
Schedule 3.14 -- Labor Matters
Schedule 6.04 -- Investments
Schedule 6.10 -- Existing Restrictions

EXHIBIT:

Exhibit A -- Form of Assignment and Acceptance

                                       5
<PAGE>

            THIRD AMENDED AND RESTATED CREDIT AGREEMENT

            This Third Amended and Restated Credit Agreement is made and entered
into as of June 23, 2004, by and among:

      (i)   ARGO-TECH CORPORATION, a Delaware corporation (the "Borrower");

      (ii)  AT HOLDINGS CORPORATION, a Delaware corporation ("Holdings");

      (iii) THE FINANCIAL INSTITUTIONS as signatory lender parties hereto and
            their successors and assigns (collectively, the "Lenders", with each
            individually being a "Lender");

      (iv)  NATIONAL CITY BANK, as successor to JPMorgan Chase Bank, as
            Administrative Agent and Issuing Bank;

      (v)   JPMORGAN CHASE BANK, as Issuing Bank in respect of the Existing
            Letters of Credit (defined below);

      (vi)  GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Documentation Agent; and

      (vii) FIRSTMERIT BANK, N.A., as Co-Documentation Agent.

                                    Recitals:

            A. The Borrower, Holdings, JPMorgan Chase Bank, in its capacity as
administrative agent (in such capacity, the "Existing Agent"), and JPMorgan
Chase Bank, National City Bank, General Electric Capital Corporation, Comerica
Bank and Harris Trust and Savings Bank (collectively, the "Existing Agreement
Lenders") are the parties to that certain Credit Agreement dated as of July 18,
1997, as amended and restated as of September 26, 1997 and as amended and
restated again as of January 24, 2003 (collectively, the "Existing Credit
Agreement"), as in effect immediately prior to the Third Restatement Effective
Date (as defined herein).

            B. Pursuant and subject to the Existing Credit Agreement, the
Lenders agreed to advance to the Borrower revolving credit loans in an aggregate
principal amount not to exceed $20,000,000 (collectively, the "Existing
Revolving Loans"), term loans in the original aggregate principal amount of
$100,000,000 (collectively, the "Existing Tranche A Term Loans") and delayed
advance acquisition loans in the original aggregate principal amount of
$15,000,000 (collectively, the "Existing Delayed Draw Acquisition Loans"); and,
at the request of the Borrower, JPMorgan Chase Bank, in its capacity as issuing
bank (in such capacity, the "Existing Issuing Bank"), agreed to issue letters of
credit (collectively, the "Existing Letters of Credit").

            C. On the close of business June 22, 2004, the aggregate unpaid
principal balance of the Existing Revolving Loans was $-0-; the aggregate unpaid
principal balance of the Existing Tranche A Term Loans was $17,129,700.00; the
aggregate unpaid principal balance of

<PAGE>

the Existing Delayed Draw Acquisition Loans was $2,720,300.00; and the aggregate
undrawn face amount of the Existing Letters of Credit was $2,492,195.26.

            D. The Borrower and Holdings have requested (i) the Existing
Agreement Lenders to amend and restate in their entirety the terms and
conditions of the Existing Credit Agreement to (a) extend the maturity of the
revolving credit facilities of the Existing Credit Agreement in order to enable
the Borrower to continue to borrow on a revolving credit basis and to have
letters of credit issued at the Borrower's request, on and after the date hereof
and from time to time during the Revolving Availability Period (defined below),
in an aggregate principal amount not in excess of $30,000,000 at any time
outstanding and (b) consolidate, amend and restate the Existing Tranche A Term
Loans and the Existing Delayed Draw Acquisition Loans into a single class of
term loans with modified principal amortization and an extended maturity date,
(ii) National City Bank to succeed the Existing Agent as successor
administrative agent for such amended and extended revolving credit and term
loan facilities, and (iii) National City Bank to succeed the Existing Issuing
Bank as successor letter of credit issuer for such amended and extended
revolving credit facility.

            E. Of the Existing Agreement Lenders, National City Bank, JP Morgan
Chase Bank and General Electric Capital Corporation have agreed to remain as
lenders for such amended and restated facilities; and Comerica Bank and Harris
Trust and Savings Bank (the "Departing Lenders") will be paid in full and cease
to be lenders for such facilities.

            F. Subject to the satisfaction of the terms and conditions set forth
in this Agreement, the parties hereto agree that the Existing Credit Agreement
shall be amended and restated as provided herein.

                                   Agreements:

            NOW, THEREFORE, in consideration of the foregoing Recitals and the
mutual agreements hereinafter set forth, the Borrower, Holdings, the Lenders,
the Issuing Bank and the Administrative Agent hereby agree that the Existing
Credit Agreement is hereby amended and restated in its entirety to provide as
follows:

                                    ARTICLE I

                                   Definitions

            SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:

            "ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

                                       2
<PAGE>

            "Account Debtor" has the meaning assigned to such term in the
Security Agreement.

            "Accounts" has the meaning assigned to such term in the Security
Agreement.

            "Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

            "Administrative Agent" means National City Bank, in its capacity as
successor administrative agent for the Lenders hereunder.

            "Administrative Questionnaire" means an Administrative Questionnaire
in a form supplied by the Administrative Agent.

            "Affiliate" means, with respect to a specified Person, another
Person that (a) directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person
specified or (b) owns, directly or indirectly, 10% or more of the voting
securities of the Person specified.

            "Alternate Base Rate" means, for any day, a rate per annum equal to
the greater of (a) the Prime Rate in effect on such day, and (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

            "Applicable Percentage" means, with respect to any Revolving Lender,
the percentage of the total Revolving Commitments represented by such Lender's
Revolving Commitment. If the Revolving Commitments have terminated or expired,
the Applicable Percentages shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any assignments.

            "Applicable Rate" means, for any day with respect to any ABR Loan or
Eurodollar Loan, or with respect to the commitment fees payable hereunder, as
the case may be, the applicable rate per annum set forth below under the caption
"ABR Spread" "Eurodollar Spread" or "Commitment Fee Rate", as the case may be,
based upon the Leverage Ratio as of the most recent determination date; provided
that until the delivery to the Administrative Agent, pursuant to Section
5.01(b), of Borrower's consolidated financial statements for Borrower's first
full fiscal quarter commencing after the Third Restatement Effective Date, the
"Applicable Rate" shall be the applicable rate per annum set forth below in
Category 1:

                                       3
<PAGE>

<TABLE>
<CAPTION>
Leverage Ratio:                                                             ABR          Eurodollar       Commitment Fee
                                                                           Spread          Spread             Rate
                                                                           ------          ------             ----
<S>                                                                        <C>           <C>              <C>
Category 1                                                                 1.25            2.75               0.50
Greater than or equal to 6.00 to 1.00

Category 2                                                                 1.00            2.50               0.50
Greater than or equal to 5.00 to 1.00 but less than 6.00 to 1.00

Category 3                                                                 0.75            2.25              0.375
Less than 5.00 to 1.00
</TABLE>

            For purposes of the foregoing, (i) the Leverage Ratio shall be
determined as of the end of each fiscal quarter of Borrower's fiscal year based
upon Borrower's consolidated financial statements delivered pursuant to Section
5.01(a) or (b) and (ii) each change in the Applicable Rate resulting from a
change in the Leverage Ratio shall be effective during the period commencing on
and including the date of delivery to the Administrative Agent of such
consolidated financial statements indicating such change and ending on the date
immediately preceding the effective date of the next such change; provided that
the Leverage Ratio shall be deemed to be in Category 1 (A) at any time that an
Event of Default has occurred and is continuing or (B) if the Borrower fails to
deliver the consolidated financial statements required to be delivered by it
pursuant to Section 5.01(a) or (b), during the period from the expiration of the
time for delivery thereof until such consolidated financial statements are
delivered.

            "Argo-Tech Notes" means the senior unsecured subordinated notes in
the aggregate face principal amount of $55,000,000 due October 1, 2007 issued by
the Borrower, at a discount, on December 17, 1998.

            "Argo-Tech Notes Documents" means the indenture under which the
Argo-Tech Notes were issued and all other agreements and documents evidencing,
guaranteeing or providing for the terms and conditions of the Argo-Tech Notes.

            "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent.

            "Board" means the Board of Governors of the Federal Reserve System
of the United States of America.

                                       4
<PAGE>

            "Borrower" means Argo-Tech Corporation, a Delaware corporation.

            "Borrowing" means Loans of the same Class and Type, made, converted
or continued on the same date and, in the case of Eurodollar Loans, as to which
a single Interest Period is in effect.

            "Borrowing Base" means, as of any date of determination, an amount
equal to the sum of (a) 80% of the aggregate amount of the Eligible Accounts
Receivable as of such date, plus (b) 60% of the Eligible Inventory Value as of
such date. The Borrowing Base shall be computed by the Borrower as of the end of
each fiscal month during which the Revolving Exposure equals or exceeds
$15,000,000, and a Borrowing Base Certificate presenting the Borrower's
computation of the Borrowing Base will be delivered to the Administrative Agent
promptly, but in no event later than the 15th day of the following month;
provided that the Borrower may, at its option, deliver a Borrowing Base
Certificate at any time (but not more frequently than once in any week) in order
to establish a new Borrowing Base. The Borrowing Base at any time in effect
shall be determined by reference to the Borrowing Base Certificate most recently
delivered hereunder, absent any error in such Borrowing Base Certificate.

            "Borrowing Base Certificate" means a certificate in a form approved
by the Administrative Agent, together with all attachments contemplated thereby.

            "Borrowing Request" means a request by the Borrower for a Borrowing
in accordance with Section 2.03.

            "Business Day" means any day that is not a Saturday, Sunday or other
day on which commercial banks in either or both of Cleveland, Ohio and New York
City, New York are authorized or required by law to remain closed; provided
that, when used in connection with a Eurodollar Loan, the term "Business Day"
shall also exclude any day on which banks are not open for dealings in dollar
deposits in the London interbank market.

            "California Property" means that parcel of land and buildings and
improvements situated thereon known as 617 West 17th Street, Costa Mesa,
California.

            "Capital Expenditures" means, for any period, (a) the additions to
property, plant and equipment and other capital expenditures of the Borrower and
its consolidated Subsidiaries that are (or would be) set forth in a consolidated
statement of cash flows of the Borrower for such period prepared in accordance
with GAAP and (b) Capital Lease Obligations incurred by the Borrower and its
consolidated Subsidiaries during such period.

            "Capital Lease Obligations" of any Person means the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

                                       5
<PAGE>

            "Change in Control" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person other than Holdings of
any shares of capital stock of the Borrower; (b) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof),
other than Permitted Owners of shares representing more than 20% of the
aggregate ordinary voting power represented by the issued and outstanding
capital stock of Holdings; (c) occupation of a majority of the seats (other than
vacant seats) on the board of directors of Holdings by Persons who were neither
(i) nominated by AT Holdings LLC or the chief executive officer of the Borrower
nor (ii) appointed by directors so nominated; (d) the acquisition of direct or
indirect Control of Holdings by any Person or group other than Permitted Owners;
or (e) any "Change of Control" as defined in the June 2004 Notes Documents.

            "Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender or
the Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of
such Lender or by such Lender's or the Issuing Bank's holding company, if any)
with any request, guideline or directive (whether or not having the force of
law) of any Governmental Authority made or issued after the date of this
Agreement.

            "Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Consolidated Term Loans.

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

            "Collateral" means any and all "Collateral", as defined in any
applicable Security Document, and any and all Mortgaged Property.

            "Collateral Agent" means the "Collateral Agent", as defined in the
Security Agreement.

            "Common Stock" means shares of Common Stock, par value $.001 per
shares, of Holdings.

            "Company's Notes" shall have the meaning set forth in Section 5.4 of
the Stockholders' Agreement.

            "Consolidated EBITDA" means, for any period, Consolidated Net Income
for such period (adjusted to exclude any non-cash items attributable to purchase
accounting for any acquisition transactions consummated subsequent to the Third
Restatement Effective Date), plus, without duplication and to the extent
deducted from revenues in determining Consolidated Net Income, the sum of (a)
the aggregate amount of Consolidated Interest Expense for such period, (b) the
aggregate amount of letter of credit fees accrued during such period, (c) the
aggregate amount of income tax expense for such period, (d) all amounts
attributable to depreciation and

                                       6
<PAGE>

amortization for such period and (e) all extraordinary charges during such
period and all non-cash charges associated with ESOP compensation and stock
options issued to management, and minus, without duplication and to the extent
added to revenues in determining Consolidated Net Income for such period, all
extraordinary gains during such period, all as determined on a consolidated
basis with respect to the Borrower and its Subsidiaries in accordance with GAAP.

            "Consolidated Interest Expense" means, for any period, the interest
expense, both expended and capitalized (including the interest component in
respect of Capital Lease Obligations, but excluding any amortization of deferred
financing costs and prepayment fees), accrued or paid by the Borrower and its
Subsidiaries during such period, determined on a consolidated basis in
accordance with GAAP.

            "Consolidated Net Income" means, for any period, net income or loss
of the Borrower and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP, provided that there shall be
excluded (a) the income of any Person in which any other Person (other than the
Borrower or any of the Subsidiaries or any director holding qualifying shares in
compliance with applicable law) has a joint interest, except income shall be
included to the extent of the amount of dividends or other distributions
actually paid to the Borrower or any of its Subsidiaries by such Person during
such period and (b) the income (or loss) of any Person accrued prior to the date
it becomes a Subsidiary or is merged into or consolidated with the Borrower or
any of its Subsidiaries or the date that Person's assets are acquired by the
Borrower or any of its Subsidiaries.

            "Consolidated Term Borrowing" means a Borrowing comprised of or in
respect of Consolidated Term Loans.

            "Consolidated Term Loans" has the meaning set forth in Section
2.01(c).

            "Consolidated Term Loan Lender" means a Lender with an outstanding
Consolidated Term Loan.

            "Consolidated Term Loan Maturity Date" means June 23, 2009.

            "Control" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

            "Cumulative Maximum" means (i) as of any date of determination
during the period commencing on the Third Restatement Effective Date and prior
to the date of delivery of financial statements pursuant to Section 5.01 with
respect to the fiscal year ending October 30, 2004, $15,000,000 and (ii) as of
any date of determination on and after the date of delivery of such financial
statements, an amount equal to the sum of $15,000,000, plus 75% of cumulative
Excess Cash Flow for the fiscal quarters of the Borrower ending on July 31, 2004
and October 30, 2004 and for each fiscal year of the Borrower ending on or after
October 28, 2005, and

                                       7
<PAGE>

ending prior to such date of determination and in respect of which the Borrower
has delivered financial statements pursuant to Section 5.01.

            "Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

            "Disclosed Matters" means the actions, suits and proceedings and the
environmental matters disclosed in Schedule 3.06.

            "Distributorship Agreement" means the Distributorship Agreement
dated as of April 1, 2003, between the Borrower and Yamada Corporation.

            "dollars" or "$" refers to lawful money of the United States of
America.

            "Effective Date Term Advance" means the term loan advance made by
FirstMerit Bank, N.A. on the Third Restatement Effective Date in the amount of
$3,333,333.33.

            "Eligible Accounts Receivable" means, as of any date of
determination, all Accounts that satisfy all of the following criteria as of
such date:

            (a) all payments on such Account are by the terms of such Account
      due not later than 90 days after the date of the original invoice relating
      thereto;

            (b) such Account is both (i) owing from an Account Debtor with a
      principal place of business in the United States of America and (ii)
      payable from an office located in the United States of America;

            (c) such Account has been invoiced and is not more than 90 days past
      the original invoice date (and, for purposes of determining the aggregate
      amount of such Accounts that are more than 90 days past the original
      invoice date, any net credit balances owing to the applicable Account
      Debtor and its Affiliates in respect of such Accounts shall be
      disregarded);

            (d) such Account is denominated in dollars;

            (e) such Account arose from a completed, outright and lawful sale of
      goods or from the completed performance and acceptance of services
      rendered by the Borrower or a Subsidiary Loan Party;

            (f) such Account is owned solely by the Borrower or a Subsidiary
      Loan Party, is subject to a perfected first priority security interest in
      favor of the Collateral Agent for the benefit of the Secured Parties
      pursuant to the Security Agreement and is not subject to any other Lien;

            (g) such Account arose in the ordinary course of business of the
      Borrower or a Subsidiary Loan Party and, to the best knowledge of the
      Borrower, no event of death,

                                       8
<PAGE>

      bankruptcy, insolvency or inability to pay creditors generally of the
      Account Debtor thereunder has occurred, and no notice thereof has been
      received;

            (h) with respect to such Account, the Account Debtor is not
      Holdings, the Borrower, a Subsidiary or an Affiliate of any thereof;

            (i) such Account constitutes an "account" or "chattel paper" within
      the meaning of the Uniform Commercial Code of the state in which the
      Account is located;

            (j) such Account complies in all material respects with the
      requirements of all applicable laws and regulations;

            (k) such Account is in full force and effect and constitutes a
      legal, valid and binding obligation of the Account Debtor enforceable in
      accordance with its terms;

            (l) such Account is not for goods sold or services rendered under a
      purchase order or pursuant to an agreement or understanding (written or
      oral) indicating that any Person other than the Borrower or a Subsidiary
      Loan Party has or has had or is purported to have or have had an ownership
      interest in such goods or to have rendered such services, as subcontractor
      or otherwise;

            (m) the Account Debtor with respect to such Account (i) is not a
      creditor of the Borrower or any Subsidiary (other than the Lenders) unless
      such Account Debtor has executed a no-offset letter reasonably
      satisfactory to the Administrative Agent and (ii) has not asserted that
      such Account is, and the Borrower is not aware of any basis upon which
      such Account could be, subject to any defense, offset, deduction, credit
      or dispute (but an Account shall not be excluded pursuant to this clause
      (ii) to the extent, if any, of any portion thereof that is not asserted to
      be, and the Borrower is not aware of any basis upon which such portion of
      such Account could be, so subject);

            (n) such Account is not payable from an office located in Minnesota
      or New Jersey unless the Borrower or the applicable Subsidiary Loan Party
      (i) has received a certificate of authority to do business in and is in
      good standing in such state or (ii) has filed a notice of business
      activities report with the appropriate office or agency of such state for
      the current year; and

            (o) such Account is not subject to any credit for advance payments
      or deposits of any Account (but any Account that is so subject shall be
      excluded only to the extent of the amount of such advance payments or
      deposits).

            "Eligible Inventory" means, as of any date of determination, all
Inventory that satisfies all of the following criteria as of such date:

            (a) such Inventory is owned solely by the Borrower or a Subsidiary
      Loan Party, is subject to a perfected first priority security interest in
      favor of the Collateral Agent for the

                                       9
<PAGE>

      benefit of the Secured Parties pursuant to the Security Agreement and is
      not subject to any other Lien;

            (b) such Inventory (i) is located in the United States of America
      and (ii) is in the possession of the Borrower or a Subsidiary Loan Party,
      except Inventory which is not in the possession of the Borrower or a
      Subsidiary Loan Party as a result of manufacturing processes in the
      ordinary course of business; provided that, at the Borrower's request,
      Inventory situated in Canada shall be deemed to comply with the
      requirements of sub-clause (i) of this clause (b), so long as (A) the
      aggregate book value of all such Inventory of all Loan Parties situated in
      Canada claimed to be Eligible Inventory does not exceed $1,000,000 and (B)
      the applicable Loan Parties shall have executed, delivered and, where
      appropriate, caused to be filed, such financing statements and other
      writings, and shall have taken such other actions, as the Collateral Agent
      may reasonably require to perfect its security interest in such Inventory
      and the proceeds thereof;

            (c) subject to the exception at the end of clause (b)(ii), above,
      (i) is located at a location owned by the Borrower or a Subsidiary Loan
      Party or (ii) if such location is not owned by the Borrower or a
      Subsidiary Loan Party, is located at a location for which such Loan Party
      has delivered to the Administrative Agent an appropriate landlord or
      bailee's waiver if required by the terms of Section 5.14, below; and

            (d) such Inventory constitutes "inventory" within the meaning of the
      Uniform Commercial Code of the state in which such Inventory is located.

            "Eligible Inventory Value" means, as of any date of determination,
the gross book value of all Eligible Inventory as of such date.

            "Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by or with any Governmental
Authority, relating in any way to the environment, preservation or reclamation
of natural resources, handling, treatment, storage, disposal, release or
threatened release of any Hazardous Material or to health and safety matters.

            "Environmental Liability" means any liability, contingent or
otherwise (including any liability for damages, natural resource damage, costs
of environmental remediation, administrative oversight costs, fines, penalties
or indemnities), of Holdings, the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time.

                                       10
<PAGE>

            "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

            "ERISA Event" means (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate
from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by the Borrower or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of
any notice, or the receipt by any Multiemployer Plan from the Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.

            "ESOP" means the employee stock ownership plan created pursuant to
the terms of the ESOP Plan and Trust Document.

            "ESOP Documentation" means the ESOP Plan and Trust Document, the
ESOP Loan Agreement, the ESOP Term Note and the ESOP Pledge Agreement.

            "ESOP Loan" means the loan made by the Borrower to the ESOP Trust
pursuant to the terms of the ESOP Loan Agreement.

            "ESOP Loan Agreement" means the ESOP Loan Agreement, dated May 17,
1994, between the Borrower and the ESOP Trust.

            "ESOP Plan and Trust Document" means the Argo-Tech Corporation
Employee Stock Ownership Plan and Trust Agreement, dated May 17, 1994, between
the Borrower and GreatBanc Trust Company in its capacity as ESOP Trustee.

            "ESOP Pledge Agreement" means the ESOP Pledge Agreement, dated May
17, 1994, executed by the ESOP Trust in favor of the Borrower.

            "ESOP Put Option" means, collectively, the put option created
pursuant to Section 7.05 of the ESOP Plan and Trust Document and the put option
payments corresponding to such section created by the Argo-Tech Corporation
Employee Stock Ownership Plan Excess Benefit Plan.

                                       11
<PAGE>

            "ESOP Term Note" means the Term Note, dated the date of the ESOP
Loan, in the original principal amount of $16,800,000, executed and delivered by
the ESOP Trust to the Borrower pursuant to the ESOP Loan Agreement, and also
means all other promissory notes accepted from time to time in substitution
therefor or renewal thereof.

            "ESOP Trust" means the Argo-Tech Employee Stock Ownership Trust
created pursuant to the terms of the ESOP Plan and Trust Document.

            "ESOP Trustee" means GreatBanc Trust Company, in its capacity as
trustee of the ESOP, and any successor thereto in such capacity.

            "Eurodollar", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

            "Event of Default" has the meaning assigned to such term in Article
VII.

            "Excess Cash Flow" means, for any period, the sum (without
duplication) of:

            (a) the consolidated net income (or loss) of the Borrower and its
      consolidated Subsidiaries for such period, adjusted to exclude any gains
      or losses attributable to Prepayment Events; plus

            (b) depreciation, amortization and other non-cash charges or losses
      deducted in determining such consolidated net income (or loss) for such
      period; plus

            (c) the sum of (i) the amount, if any, by which Net Working Capital
      decreased during such period plus (ii) the amount, if any, by which the
      consolidated deferred revenues of the Borrower and its consolidated
      Subsidiaries increased during such period plus (iii) the aggregate
      principal amount of Capital Lease Obligations and other Indebtedness
      incurred during such period to finance Capital Expenditures, to the extent
      that mandatory principal payments in respect of such Indebtedness would
      not be excluded from clause (f) below when made; minus

            (d) the sum of (i) any non-cash gains included in determining such
      consolidated net income (or loss) for such period plus (ii) the amount, if
      any, by which Net Working Capital increased during such period plus (iii)
      the amount, if any, by which the consolidated deferred revenues of the
      Borrower and its Subsidiaries decreased during such period; minus

            (e) Capital Expenditures made during such period; minus

            (f) the aggregate principal amount of Indebtedness repaid or prepaid
      by the Borrower and its consolidated Subsidiaries during such period,
      excluding (i) Indebtedness in respect of Revolving Loans and Letters of
      Credit, (ii) Consolidated Term Loans prepaid pursuant to Section 2.10(c),
      (iii) repayments or prepayments of

                                       12
<PAGE>

      Indebtedness financed by incurring other Indebtedness, to the extent that
      mandatory principal payments in respect of such other Indebtedness would
      not be excluded from this clause (f) when made and (iv) Indebtedness
      referred to in clauses (iii), (iv), and (vii) of Section 6.01(a).

            "Excluded Taxes" means, with respect to the Administrative Agent,
any Lender, the Issuing Bank or any other recipient of any payment to be made by
or on account of any obligation of the Borrower hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which the Borrower is located and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.18(b)), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement (or designates a new lending office) or is attributable to
such Foreign Lender's failure to comply with Section 2.16(e), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 2.16(a).

            "Existing Agent", "Existing Agreement Lenders", "Existing Credit
Agreement", "Existing Delayed Draw Acquisition Loans", "Existing Issuing Bank",
"Existing Revolving Loans", and "Existing Tranche A Term Loans" have the
respective meanings given such terms in the Recitals hereto.

            "Existing Collateral Agent" means JPMorgan Chase Bank, in its
capacity as collateral agent under the Existing Credit Agreement and the
Security Documents prior to the Third Restatement Effective Date.

            "Existing Letters of Credit" has the meaning given such term in the
Recitals hereto and shall include any Existing Letter of Credit after giving
effect to any extension of the expiration date thereof effective after the Third
Restatement Effective Date.

            "Federal Funds Effective Rate" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding 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 (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

            "Financial Officer" means the chief financial officer or treasurer
of the Borrower.

                                       13
<PAGE>

            "Fixed Charge Coverage Ratio" means, for any period, the ratio of
(a)(i) Consolidated EBITDA, minus (ii) Capital Expenditures, minus (iii) the
aggregate amount of income tax expense paid in cash net of refunds received to
(b) the sum of (i) Consolidated Interest Expense (net of interest income), plus
(ii) scheduled payments of Consolidated Term Loans after the Third Restatement
Effective Date, in each case for such period.

            "Foreign Lender" means any Lender that is organized under the laws
of a jurisdiction other than that in which the Borrower is located. For purposes
of this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

            "Foreign Subsidiary" means any Subsidiary that is organized under
the laws of a jurisdiction other than the United States of America or any State
thereof or the District of Columbia.

            "GAAP" means accounting principles generally accepted in the United
States of America, consistently applied.

            "Governmental Authority" means the government of the United States
of America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

            "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided that the term "Guarantee" shall not include
endorsements for collection or deposit in the ordinary course of business.

            "Hazardous Materials" means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

                                       14
<PAGE>

            "Hedging Agreement" means any interest rate hedging agreement
entered into in order to effectively cap, collar or exchange interest rates
(from fixed to floating rates, from one floating rate to another floating rate
or otherwise) with respect to any interest-bearing liability or investment;
foreign currency exchange agreement; commodity price protection agreement; or
other interest or currency exchange rate or commodity price hedging arrangement.

            "Holdings" means AT Holdings Corporation, a Delaware corporation.

            "Holdings Preferred Stock" means up to $30,000,000 of cumulative
exchangeable redeemable preferred stock issued by Holdings with warrants to
purchase common stock of Holdings (on terms and conditions substantially as set
forth on Annex 1 hereto), the proceeds of which are used to purchase Common
Stock from AT Holdings, LLC.

            "Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (j) all obligations,
contingent or otherwise, of such Person in respect of bankers' acceptances. The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent 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 the
terms of such Indebtedness provide that such Person is not liable therefor.

            "Indemnified Taxes" means Taxes other than Excluded Taxes.

            "Indemnity, Subrogation and Contribution Agreement" means the
Amended and Restated Indemnity, Subrogation and Contribution Agreement, of even
date herewith, as amended, supplemented or otherwise modified from time to time,
among the Borrower, Holdings, the Subsidiary Loan Parties and the Administrative
Agent.

            "Interest Election Request" means a request by the Borrower to
convert or continue a Revolving Borrowing or Consolidated Term Borrowing in
accordance with Section 2.06.

            "Interest Payment Date" means (a) with respect to any ABR Loan, the
last day of each fiscal quarter of the Borrower, as such fiscal quarter-ends are
identified on Schedule 1.01(a) hereto, and (b) with respect to any Eurodollar
Loan, the last day of the Interest Period applicable

                                       15
<PAGE>

to the Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months' duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months' duration after the first day of such Interest Period.

            "Interest Period" means, with respect to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the Borrower may elect; provided, that

            (i) if any Interest Period would end on a day other than a Business
Day, such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day,
and

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

For purposes hereof, the date of a Borrowing initially shall be the date on
which such Borrowing is made and thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing.

            "Inventory" has the meaning assigned to such term in the Security
Agreement.

            "Issuing Bank" means, (i) with respect to any Existing Letter of
Credit, JPMorgan Chase Bank, in its capacity as issuer thereof and (ii) with
respect to any Letter of Credit issued on and after the Third Restatement
Effective Date, National City Bank, in its capacity as the issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section
2.04(i). The Issuing Bank may, in its discretion, arrange for one or more
Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case
the term "Issuing Bank" shall include any such Affiliate with respect to Letters
of Credit issued by such Affiliate.

            "June 2004 Notes" means, collectively, the "9 1/4% Senior Notes,
Series A, due 2011" and the "9 1/4% Senior Notes, Series B, due 2011" issued on
the Third Restatement Effective Date in the aggregate principal amount of
$250,000,000 and any substantially identical notes issued in replacement
therefore pursuant to the June 2004 Note Documents.

            "June 2004 Notes Documents" means the indenture under which the June
2004 Notes are issued and all other instruments, agreements and documents
evidencing, guaranteeing or providing for the terms and conditions of the June
2004 Notes.

            "LC Disbursement" means a payment made by the Issuing Bank pursuant
to a Letter of Credit.

                                       16
<PAGE>

            "LC Exposure" means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Borrower at such time. The LC Exposure of any Revolving Lender
at any time shall be its Applicable Percentage of the total LC Exposure at such
time.

            "Lenders" means the Persons listed on Schedule 2.01 and any other
Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Acceptance.

            "Letter of Credit" means any Existing Letter of Credit and any
letter of credit issued pursuant to this Agreement.

            "Leverage Ratio" means, on any date, the ratio of (a) Total Debt as
of such date (provided that the Total Debt as of the fiscal quarter ending July
31, 2004 shall be deemed not to include any Unpaid Transaction Debt) to (b)
Consolidated EBITDA for the period of four consecutive fiscal quarters of the
Borrower, as the case may be, (i) ending on such date (if such date is the last
day of a fiscal quarter) or (ii) most recently ended prior to such date (if such
date is not the last day of a fiscal quarter), all determined on a consolidated
basis in accordance with GAAP.

            "LIBO Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on
any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., Cleveland, Ohio time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the "LIBO Rate" with respect to such
Eurodollar Borrowing for such Interest Period shall instead be the average
(rounded up to the nearest sixteenth of 1%) of the rates at which U.S. dollar
deposits of $5,000,000 are offered to National City Bank (or other Lender
selected as a reference bank by the Administrative Agent and the Required
Lenders) in the London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for
contracts which would be entered into at the commencement of such Interest
Period.

            "Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

            "Loan Documents" means this Agreement, the promissory notes, if any,
executed and delivered pursuant to Section 2.08(e), the Parent Guarantee
Agreement, the Subsidiary

                                       17
<PAGE>

Guarantee Agreement, the Indemnity, Subrogation and Contribution Agreement, and
the Security Documents.

            "Loan Parties" means Holdings, the Borrower and the Subsidiary Loan
Parties.

            "Loans" means the loans made by the Lenders to the Borrower pursuant
to this Agreement.

            "Management Put Options" means the put option created pursuant to
Section 5 of the Stockholders' Agreement.

            "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of Holdings,
the Borrower and the Subsidiaries taken as a whole, (b) the ability of one or
more Loan Parties to perform any of their obligations under the Loan Documents
that, taken as a whole, are material or (c) the rights of or benefits available
to the Lenders under one or more Loan Documents that, taken as a whole, are
material.

            "Material Indebtedness" means (i) Indebtedness under the June 2004
Notes, (ii) other Indebtedness (other than the Loans and Letters of Credit) in
an aggregate principal amount exceeding $2,000,000, or (iii) obligations in
respect of one or more Hedging Agreements in an aggregate principal amount
exceeding $2,000,000, of any one or more of Holdings, the Borrower and its
Subsidiaries. For purposes of determining Material Indebtedness, the "principal
amount" of the obligations of Holdings, the Borrower or any Subsidiary in
respect of any Hedging Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that Holdings, the Borrower or
such Subsidiary would be required to pay if such Hedging Agreement were
terminated at such time.

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

            "Morgan Warrants" means the warrants held by J.P. Morgan Partners
(SBIC), LLC to purchase 46,025 shares of the common stock of Holdings, pursuant
to the Morgan Warrants Agreement, as such warrants provide after giving effect
to an amendment and restatement thereof effective as of the Third Restatement
Effective Date.

            "Morgan Warrants Agreement" means that certain Preferred Stock and
Warrant Purchase Agreement dated December 17, 1998, as amended, between J.P.
Morgan Partners (SBIC), LLC and Holdings pursuant to which the Morgan Warrants
were issued, as such agreement provides on the date hereof (and as modified by
the amendment and restatement of the Morgan Warrants effective as of the Third
Restatement Effective Date).

            "Mortgage" means a mortgage, deed of trust, assignment of leases and
rents, leasehold mortgage or other security document granting a Lien on any
Mortgaged Property to secure the Obligations. Each Mortgage shall be
satisfactory in form and substance to the Collateral Agent.

                                       18
<PAGE>

            "Mortgaged Property" means the California Property, the Ohio
Property and each other parcel of real property and improvements thereto with
respect to which a Mortgage is granted pursuant to Section 5.12 or 5.13.

            "Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

            "Net Proceeds" means, with respect to any event (a) the cash
proceeds received in respect of such event including (i) any cash received in
respect of any non-cash proceeds, but only as and when received, (ii) in the
case of a casualty, insurance proceeds, and (iii) in the case of a condemnation
or similar event, condemnation awards and similar payments, net of (b) the sum
of (i) all reasonable fees and out-of-pocket expenses paid by Holdings, the
Borrower and the Subsidiaries to third parties (other than Affiliates) in
connection with such event, (ii) in the case of a sale, transfer or other
disposition of an asset (including pursuant to a sale and leaseback transaction
or a casualty or other insured damage or condemnation or similar proceeding),
the amount of all payments required to be made by Holdings, the Borrower and the
Subsidiaries as a result of such event to repay Indebtedness (other than Loans)
secured by such asset or otherwise subject to mandatory prepayment as a result
of such event, and (iii) the amount of all taxes paid (or reasonably estimated
to be payable) by Holdings, the Borrower and the Subsidiaries, and the amount of
any reserves established by Holdings, the Borrower and the Subsidiaries to fund
contingent liabilities reasonably estimated to be payable, in each case during
the year that such event occurred or the next succeeding year and that are
directly attributable to such event (as determined reasonably and in good faith
by the chief financial officer of the Borrower).

            "Net Working Capital" means, at any date, (a) the consolidated
current assets of the Borrower and its consolidated Subsidiaries as of such date
(excluding cash and Permitted Investments) minus (b) the consolidated current
liabilities of the Borrower and its consolidated Subsidiaries as of such date
(excluding current liabilities in respect of Indebtedness). Net Working Capital
at any date may be a positive or negative number. Net Working Capital increases
when it becomes more positive or less negative and decreases when it becomes
less positive or more negative.

            "Obligations" has the meaning assigned to such term in the Security
Agreement.

            "Ohio Property" means that parcel of land and buildings and
improvements situated thereon known as 23555 Euclid Avenue, Euclid, Ohio.

            "Other Taxes" means any and all current or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document.

            "Parent Guarantee Agreement" means the Amended and Restated Parent
Guarantee Agreement of even date herewith, as amended, supplemented or otherwise
modified from time to time, made by Holdings in favor of the Administrative
Agent for the benefit of the Secured Parties.

                                       19
<PAGE>

            "PBGC" means the Pension Benefit Guaranty Corporation referred to
and defined in ERISA and any successor entity performing similar functions.

            "Perfection Certificate" means a certificate in the form of Annex 1
to the Security Agreement or any other form approved by the Collateral Agent.

            "Permitted Acquisition" means any acquisition by the Borrower or a
Subsidiary Loan Party of all or substantially all the assets of, or all the
shares of capital stock of or other equity interests in, a Person or division or
line of business of a Person if, immediately after giving effect thereto, (i) no
Default has occurred and is continuing or would result therefrom, (ii) all
transactions related thereto are consummated in accordance with applicable laws,
(iii) all the capital stock of any Subsidiary formed for the purpose of or
resulting from such acquisition are owned directly by the Borrower or a
Subsidiary Loan Party and all actions required to be taken, if any, with respect
to such acquired or newly formed Subsidiary under Sections 5.12 and 5.13 have
been taken, (iv) the Borrower and its Subsidiaries are in compliance, on a pro
forma basis after giving effect to such acquisition (and taking into account all
appropriate assets, liabilities and items of income and expense of any acquired
entity or acquired assets for any applicable period prior to the acquisition
thereof) with the covenants contained in Sections 6.01, 6.12, 6.13, 6.14 and
6.15 recomputed as at the last day of the most recently ended fiscal quarter of
the Borrower, as if such acquisition had occurred on the first day of each
relevant period for testing such compliance, (v) in the case of an acquisition
of assets, such assets are to be used, and in the case of an acquisition of
capital stock or other equity interests, the Person so acquired is engaged in,
the same or a related line of business as the Borrower and the Subsidiaries and
other business activities incidental thereto, (vi) the Borrower has delivered to
the Administrative Agent an officers' certificate to the effect set forth in
clauses (i) and (iv) above, together with all relevant financial information for
the Person or assets to be acquired, and (vii) neither Holdings, the Borrower
nor any Subsidiary, including any acquired or newly formed Subsidiary, shall be
liable for any Indebtedness other than as permitted by Section 6.01.

            "Permitted Encumbrances" means:

            (a) Liens imposed by law for taxes that are not yet due or are being
      contested in compliance with Section 5.04;

            (b) carriers', warehousemen's, mechanics', materialmen's,
      repairmen's and other like Liens imposed by law, arising in the ordinary
      course of business and securing obligations that are not overdue by more
      than 30 days or are being contested in compliance with Section 5.04;

            (c) pledges and deposits made in the ordinary course of business in
      compliance with workers' compensation, unemployment insurance and other
      social security laws or regulations;

            (d) deposits to secure the performance of bids, trade contracts,
      leases, statutory obligations, surety and appeal bonds, performance bonds
      and other obligations of a like nature, in each case in the ordinary
      course of business;

                                       20
<PAGE>

            (e) judgment liens in respect of judgments that do not constitute an
      Event of Default under clause (k) of Article VII;

            (f) easements, zoning restrictions, rights-of-way and similar
      encumbrances on real property imposed by law or arising in the ordinary
      course of business that do not secure any monetary obligations and do not
      materially detract from the value of the affected property or interfere
      with the ordinary conduct of business of the Borrower or any Subsidiary;
      and

            (g) rights of the government of the United States of America or any
      agency or instrumentality thereof in inventory or equipment, arising out
      of any contract between the Borrower or any Subsidiary and such
      government, agency or instrumentality or pursuant to any contract entered
      into with, or received from, any higher-tier subcontractor or prime
      contractor of such government, agency or instrumentality, whether by
      operation of law or the terms of such contract, or by virtue of the
      receipt by the Borrower or its predecessor or such Subsidiary of progress
      or advance payments or reimbursement of costs in connection therewith;

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

            "Permitted Investments" means:

            (a) direct obligations of, or obligations the principal of and
      interest on which are unconditionally guaranteed by, the United States of
      America (or by any agency thereof to the extent such obligations are
      backed by the full faith and credit of the United States of America), in
      each case maturing within one year from the date of acquisition thereof;

            (b) investments in commercial paper maturing within 270 days from
      the date of acquisition thereof and having, at such date of acquisition, a
      rating of at least A-1 or the equivalent thereof from S&P or P-1 or the
      equivalent thereof from Moody's;

            (c) investments in certificates of deposit, banker's acceptances and
      time deposits maturing within 180 days from the date of acquisition
      thereof issued or guaranteed by or placed with, and money market deposit
      accounts issued or offered by, (i) any domestic office of any commercial
      bank organized under the laws of the United States of America or any State
      thereof that has a combined capital and surplus and undivided profits of
      not less than $500,000,000, (ii) any domestic office of any commercial
      bank organized under the laws of a foreign jurisdiction that has a rating
      of at least AA by S&P or Aa by Moody's and (iii) any Lender;

            (d) fully collateralized repurchase agreements with a term of not
      more than 30 days for securities described in clause (a) above and entered
      into with a financial institution satisfying the criteria described in
      clause (c) above;

                                       21
<PAGE>

            (e) investments in money market funds substantially all the assets
      of which are comprised of securities of the types described in clauses
      (a), (b) and (c), above;

            (f) investments in money market funds access to which is provided as
      part of "sweep" accounts maintained with a Lender;

            (g) investments in industrial development revenue bonds or
      floating-rate taxable bonds which (i) "re-set" interest rates no less
      frequently than quarterly, (ii) are entitled to the benefit of a
      remarketing arrangement with an established broker dealer, and (iii) are
      supported by a direct pay letter of credit covering principal and accrued
      interest which is issued by a bank having, on such date, a short-term
      commercial paper rating of at least A-1 or the equivalent thereof from S&P
      or P-1 or the equivalent thereof from Moody's;

            (h) investments in pooled funds or investment accounts consisting of
      investments of the nature described in the foregoing clause (g);

            (i) receivables owing to the Borrower or any Subsidiary created or
      acquired in the ordinary course of business or payable or dischargeable in
      accordance with customary trade terms; provided, however, that such trade
      terms may include such concessionary terms as the Borrower or such
      Subsidiary deems reasonable under the circumstances;

            (j) payroll, travel and similar advances to cover matters that are
      expected at the time of such advances ultimately to be treated as expenses
      for accounting purposes and that are made in the ordinary course of
      business;

            (k) investments by the Rabbi Trust using assets of the Rabbi Trust
      in existence on the Third Restatement Effective Date (including income and
      capital growth with respect thereto); and

            (l) an investment by Holdings in a Subsidiary or another Person to
      which Holdings transfers certain tracking technology transferred to
      Holdings by the Borrower on or before the Third Restatement Effective
      Date, so long as the proceeds of any such transfer, including, without
      limitation, the stock, membership interests, or other ownership interests
      in such Subsidiary or other Person are, to the satisfaction of the
      Collateral Agent, subject to the security interest of, as applicable, the
      Security Agreement or the Pledge Agreement.

            "Permitted Owners" means (a) Mr. Masashi Yamada and members of his
immediate family, (b) corporations and other entities that are Controlled by one
or more of the persons referred to in clause (a), (c) the ESOP, (d) individuals
who are members of management of Holdings or the Borrower as of the Third
Restatement Effective Date, and (e) trusts for the sole benefit of one or more
of the persons referred to in clause (a) or (d).

            "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

                                       22
<PAGE>

            "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

            "Pledge Agreement" means the Amended and Restated Pledge Agreement
of even date herewith, as amended, supplemented or otherwise modified from time
to time, among the Borrower, Holdings, the Subsidiaries party thereto and the
Collateral Agent for the benefit of the Secured Parties.

            "Prepayment Event" means:

            (a) any sale, transfer or other disposition or series of related
      sales, transfers or other dispositions (including pursuant to a sale and
      leaseback transaction) of any property or asset (including capital stock)
      of Holdings, the Borrower or any Subsidiary, other than (i) dispositions
      described in clauses (a) and (b) of Section 6.05 and (ii) other
      dispositions resulting in aggregate Net Proceeds not exceeding $2,500,000;
      or

            (b) any casualty or other insured damage to, or any taking under
      power of eminent domain or by condemnation or similar proceeding of, any
      property or asset of Holdings, the Borrower or any Subsidiary, but only to
      the extent that the Net Proceeds therefrom have not been applied to
      repair, restore or replace such property or asset within 90 days after
      such event (or any longer period provided for in Section 5.08(c) with
      respect to events referred to in such Section); or

            (c) the issuance by Holdings, the Borrower or any Subsidiary of any
      equity securities, or the receipt by Holdings, the Borrower or any
      Subsidiary of any capital contribution, other than any such issuance of
      equity securities to, or receipt of any such capital contribution from,
      Holdings, the Borrower or a Subsidiary; or

            (d) the incurrence by Holdings, the Borrower or any Subsidiary of
      any Indebtedness, other than Indebtedness permitted under Section 6.01.

            "Prime Rate" means the rate of interest per annum publicly announced
from time to time by National City Bank as its prime rate (or equivalent rate
otherwise named) in effect at its principal office in Cleveland, Ohio; each
change in the Prime Rate shall be effective from and including the date such
change is publicly announced as being effective.

            "Put Options" means, collectively, the ESOP Put Option and the
Management Put Options.

            "Quarterly Payment Date" means the last day of each fiscal quarter
of the Borrower during the term of this Agreement, as such fiscal quarter-ends
are identified on Schedule 1.01(a) hereto.

                                       23
<PAGE>

            "Rabbi Trust" means the irrevocable grantor trust established by the
Borrower pursuant to The Argo-Tech Trust Agreement dated October 28, 1994, as
amended on November 22, 2002, for the benefit of Michael Lipscomb, as
beneficiary, in connection with Mr. Lipscomb's Stay Pay and Severance Agreement
dated February 13, 1989.

            "Ratable Share" means, at any time, in respect of any Revolving
Lender, the Applicable Percentage of such Revolving Lender at such time and, in
respect of any Consolidated Term Loan Lender, the quotient (expressed as a
percentage) obtained by dividing the unpaid principal such Lender's Consolidated
Term Loan at such time by the aggregate unpaid principal of all of the
Consolidated Term Loans at such time.

            "Register" has the meaning set forth in Section 9.04.

            "Regulation G" means Regulation G of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

            "Regulation U" means Regulation U of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

            "Regulation X" means Regulation X of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

            "Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

            "Required Lenders" means, at any time, Lenders having Revolving
Exposures, Consolidated Term Loans and unused Revolving Commitments representing
more than 50% of the sum of the total Revolving Exposures, outstanding
Consolidated Term Loans and unused Revolving Commitments at such time.

            "Restatement Transactions" means the execution and delivery of this
Agreement by each Person party hereto, the satisfaction of the conditions to the
effectiveness hereof, and the consummation of the transactions contemplated
hereby, including the amendments to the Existing Credit Agreement effected by
the restatement thereof.

            "Restricted Payment" means any dividend or other distribution
(whether in cash, securities or other property) with respect to any shares of
any class of capital stock of Holdings, the Borrower or any Subsidiary, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such shares of capital stock of
Holdings, the Borrower or any Subsidiary or any option, warrant or other right
to acquire any such shares of capital stock of Holdings, the Borrower or any
Subsidiary.

            "Restricted Transaction Conditions" means, as of any date, and after
giving effect to the payment, prepayment, purchase payment, investment,
Restricted Payment, Permitted

                                       24
<PAGE>

Acquisition or other transaction in respect of which the Restricted Transaction
Conditions are being referenced, both of the following shall be true: (i) that
there exists no Default, and (ii) that (a) if the total Revolving Exposures then
exceed $15,000,000, or would exceed $15,000,000 after giving effect to such
proposed payment, prepayment, purchase payment, investment, Restricted Payment,
Permitted Acquisition or other transaction, the Borrower shall have delivered to
the Administrative Agent a Borrowing Base Certificate and other evidence
reasonably satisfactory to the Administrative Agent that the aggregate of the
Borrower's consolidated cash-on-hand, plus the Revolving Availability is greater
than $15,000,000, (b) if the total Revolving Exposures then exceed $0, or would
exceed $0 after giving effect to such proposed payment, prepayment, purchase
payment, investment, Restricted Payment, Permitted Acquisition or other
transaction, the Borrower shall have delivered to the Administrative Agent a
written statement in form and substance satisfactory to the Administrative Agent
to the effect that the aggregate of the Borrower's consolidated cash-on-hand,
plus the Revolving Availability is greater than $15,000,000, and (c) in all
other cases, the aggregate of the Borrower's consolidated cash-on-hand, plus the
Revolving Availability is greater than $15,000,000; provided, however, that in
such cases, the Borrower is not required to deliver any evidence thereof to the
Administrative Agent.

            "Restricted Transaction Leverage Ratio" means as of any date, the
maximum Leverage Ratio that the Borrower was permitted to maintain pursuant to
Section 6.12, below, as of the fiscal quarter most recently ended, modified by
subtracting 0.50 from the first (Total Debt) component of the Leverage Ratio so
scheduled in Section 6.12. By way of example and not limitation, if Section 6.12
requires that, as of the last day of the fiscal quarter ending immediately prior
to the date in question, the Leverage Ratio not exceed 6.75 to 1, the Restricted
Transaction Leverage Ratio as of such date would be 6.25 to 1.

            "Revolving Availability" means, as of any date of determination, an
amount equal to (i) the lesser of (a) the aggregate amount of the Lenders'
Revolving Commitments on such date and (b) the Borrowing Base on such date,
minus (ii) the aggregate amount of the Lenders' Revolving Exposures on such
date.

            "Revolving Availability Period" means the period from and including
the Third Restatement Effective Date to but excluding the earlier of the
Revolving Maturity Date and the date of termination of the Revolving
Commitments.

            "Revolving Borrowing" means a Borrowing comprised of or in respect
of Revolving Loans.

            "Revolving Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Exposure
hereunder, as such commitment may be (a) reduced from time to time pursuant to
Section 2.07 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The amount of each
Lender's Revolving Commitment as of the Third Restatement Effective Date is set
forth on Schedule 2.01 and thereafter, the initial amount of each Lender's
Revolving Commitment is set forth in the

                                       25
<PAGE>

Assignment and Acceptance pursuant to which such Lender shall have assumed its
Revolving Commitment. The initial aggregate amount of the Lenders' Revolving
Commitments as of the Third Restatement Effective Date is $30,000,000.

            "Revolving Exposure" means, with respect to any Lender at any time,
the sum of the outstanding principal amount of such Lender's Revolving Loans and
its LC Exposure at such time.

            "Revolving Lender" means a Lender with a Revolving Commitment or, if
the Revolving Commitments have terminated or expired, a Lender with Revolving
Exposure.

            "Revolving Loan" means a Loan made pursuant to Section 2.01(b).

            "Revolving Maturity Date" means June 23, 2009.

            "S&P" means Standard & Poor's.

            "Secured Parties" shall have the meaning assigned to such term in
the Security Agreement.

            "Security Agreement" means the Amended and Restated Security
Agreement of even date herewith, as amended, supplemented or otherwise modified
from time to time, among the Borrower, the Subsidiary Loan Parties and the
Collateral Agent for the benefit of the Secured Parties.

            "Security Documents" means the Security Agreement, the Pledge
Agreement, the Mortgages and each other security agreement or other instrument
or document executed and delivered pursuant to Section 5.12 or 5.13 to secure
any of the Obligations.

            "Senior Debt" means, with respect to the Borrower and its
Subsidiaries on a consolidated basis at any time, all Indebtedness of the
Borrower and its Subsidiaries which at such time would be required to be
reflected as a liability for borrowed money on a consolidated balance sheet of
the Borrower and its consolidated Subsidiaries prepared in accordance with GAAP.

            "Senior Subordinated Notes" means the 85/8% Senior Subordinated
Notes due 2007 in the original aggregate principal amount of $140,000,000 and
any substantially identical notes issued in exchange therefor pursuant to the
Senior Subordinated Notes Documents.

            "Senior Subordinated Notes Documents" means the indenture under
which the Senior Subordinated Notes are issued and all other instruments,
agreements and documents evidencing, guaranteeing or providing for the terms and
conditions of the Senior Subordinated Notes.

            "Statutory Reserve Rate" means a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus

                                       26
<PAGE>

the aggregate of the maximum reserve percentages (including any marginal,
special, emergency or supplemental reserves) expressed as a decimal established
by the Board to which the Administrative Agent is subject with respect to the
Adjusted LIBO Rate, for eurocurrency funding (currently referred to as
"Eurocurrency Liabilities" in Regulation D of the Board). Such reserve
percentage shall include those imposed pursuant to such Regulation D. Eurodollar
Loans shall be deemed to constitute eurocurrency funding and to be subject to
such reserve requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any change in such
reserve percentage.

            "Stockholders' Agreement" means the Stockholders' Agreement dated as
of December 17, 1998, by and among Holdings, AT Holdings, LLC, YC International
Inc., Sunhorizon International, Inc., Chase Venture Capital Associates, LP and
the Management Investors (as defined therein).

            "subsidiary" means, with respect to any Person (the "parent") at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

            "Subsidiary" means any subsidiary of Holdings or the Borrower, as
the context requires.

            "Subsidiary Guarantee Agreement" means the Amended and Restated
Subsidiary Guarantee Agreement of even date herewith, as amended, supplemented
or otherwise modified from time to time, made by the Subsidiary Loan Parties in
favor of the Administrative Agent for the benefit of the Secured Parties.
Subsidiary Loan Parties as of the Third Restatement Effective Date are set forth
on Schedule 3.12.

            "Subsidiary Loan Party" means any Subsidiary of the Borrower other
than (a) any Foreign Subsidiary that, if it were to Guarantee the Obligations,
would result in adverse tax consequences to Holdings or the Borrower, and (b)
immaterial subsidiaries set forth on Schedule 1.01(b) so long as such immaterial
subsidiaries have no operating assets or earnings other than operating assets
and earnings as of the Third Restatement Effective Date.

            "Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

                                       27
<PAGE>

            "Third Restatement Effective Date" means the date as of which the
amendment and restatement of the Existing Credit Agreement pursuant to this
Agreement is effective.

            "Total Debt" means, with respect to the Borrower and its
Subsidiaries on a consolidated basis at any time, all Indebtedness of the
Borrower and its Subsidiaries which at such time would be required to be
reflected as a liability for borrowed money on a consolidated balance sheet of
the Borrower and its consolidated Subsidiaries prepared in accordance with GAAP.

            "Transactions" means (a) the execution, delivery and performance by
each Loan Party of the Loan Documents to which it is to be a party, (b) the
borrowing of Loans, the use of the proceeds thereof and the issuance of Letters
of Credit hereunder, and (c) the issuance of the June 2004 Notes.

            "TRW" means TRW Inc, an Ohio corporation, and its successors and
permitted assigns under the TRW Agreement.

            "TRW Agreement" means that certain Agreement of Purchase and Sale
between Agnem Holdings, Inc. and TRW, dated as of August 5, 1986, as amended by
(a) that certain letter agreement dated September 5, 1986, (b) that certain
Agreement dated as of September 16, 1986, (c) that certain Agreement dated as of
September 26, 1986, (d) that certain Agreement dated as of October 1, 1986, (e)
that certain letter agreement dated as of October 10, 1986, (f) that certain
letter agreement dated October 15, 1986, and (g) that certain Amendment No. 6 to
Purchase Agreement dated as of October 20, 1986; such term shall also include
any other amendments or modifications thereof entered into in accordance with
Section 6.11.

            "Type", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate.

            "Unpaid Transaction Debt" means Indebtedness and other obligations
owing under the Argo-Tech Notes, the Argo-Tech Notes Documents and the Senior
Subordinated Notes Documents that is not paid and satisfied in full on the Third
Restatement Effective Date, which Indebtedness shall not exceed, in the
aggregate, $33,000,000.

            "Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

            SECTION 1.02. Classification of Loans and Borrowings. For purposes
of this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type
(e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving
Borrowing").

                                       28
<PAGE>

            SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

            SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

                                   ARTICLE II

                                   The Credits

            SECTION 2.01. Commitments; Outstanding Loans. (a) Immediately prior
to the effectiveness of this Agreement, the Borrower shall deposit with the
Existing Agent a sum sufficient to prepay in full all of the Existing Tranche A
Term Loans and Delayed Advance Acquisition Loans of each Departing Lender (there
being no Existing Revolving outstanding); each of the Lenders (other than
FirstMerit Bank, N.A.), in their capacity as Existing Agreement Lenders, agrees,
notwithstanding any provisions in the Existing Credit Agreement for the ratable
sharing of payments, that it claims no interest in any such payment to the
Departing Lenders. In addition, also immediately prior to the effectiveness of
this Agreement, the Borrower shall deposit with the Existing Agent a sum
sufficient to prepay in part the respective Tranche A Term Loans of the other
Existing Agreement Lenders (that is, General Electric Capital Corporation,
JPMorgan Chase Bank, and National City Bank), such that, after giving effect to
such

                                       29
<PAGE>

prepayments, the respective unpaid principal balances of the Tranche A Term
Loans of such remaining Existing Agreement Lenders are as set forth on Schedule
2.01(c). Upon the effectiveness of this Agreement, all of the risk participation
exposures of the Departing Lenders in respect of the Existing Letters of Credit
shall be deemed to be assumed by the Revolving Lenders ratably according to
their respective Applicable Percentages; and each Departing Lender shall not be
a party to this Agreement and shall have no further obligation to advance loans
or extend credit to the Borrower or bear any risk participation exposure in
respect of the Existing Letters of Credit.

            (b) No Existing Revolving Loans are outstanding immediately prior to
the Third Restatement Effective Date. Upon the effectiveness of this Agreement,
the terms and conditions governing Existing Revolving Loans will be amended and
restated in their entirety to provide for a revolving credit facility under
which, subject to the terms and conditions set forth in this Agreement, each
Lender agrees to make Revolving Loans to the Borrower from time to time during
the Revolving Availability Period in an aggregate principal amount that (i) will
not result in such Lender's Revolving Exposure exceeding such Lender's Revolving
Commitment and (ii) on any date that the total Revolving Exposures would exceed
$15,000,000 after giving effect to the Revolving Loans requested on such date,
will not result in the total Revolving Exposures exceeding the Borrowing Base
then in effect. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.

            (c) The outstanding principal amount of each Lender's Existing
Tranche A Term Loan and Delayed Draw Acquisition Loan immediately prior to the
Third Restatement Effective Date is set forth on Schedule 2.01(c). Upon the
effectiveness of this Agreement, (i) FirstMerit Bank, N.A. shall advance to the
Borrower the Effective Date Term Advance and (ii) the respective outstanding
principal balances of the Existing Tranche A Term Loans held by General Electric
Capital Corporation, JPMorgan Chase Bank, and National City Bank shall be
consolidated with the respective outstanding principal balances of the Existing
Delayed Draw Acquisition Loans held by General Electric Capital Corporation,
JPMorgan Chase Bank, and National City Bank into consolidated term loans, the
terms and conditions of which shall be amended and restated to provide for a
term loan (collectively with the Effective Date Term Advance, the "Consolidated
Term Loans") in the aggregate original principal amount of Fifteen Million
Dollars ($15,000,000) payable and otherwise governed by the terms and conditions
of this Agreement. The Consolidated Term Loan of each Consolidated Term Loan
Lender as of the Third Restatement Effective Date, after giving effect to, as
the case may be, the Effective Date Term Advance or said consolidation of the
Existing Tranche A Term Loans and Existing Delayed Draw Acquisition Loans, is
also set forth on Schedule 2.01(c).

            SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be
made as part of a Borrowing consisting of the same Type made by the Revolving
Lenders ratably in accordance with their respective Applicable Percentage. The
failure of any Revolving Lender to make any Revolving Loan required to be made
by it shall not relieve any other Revolving Lender of its obligations hereunder;
provided that the Revolving Commitments are several and no

                                       30
<PAGE>

Revolving Lender shall be responsible for any other Revolving Lender's failure
to make Revolving Loans as required.

            (b) Subject to Section 2.13, each Revolving Borrowing and
Consolidated Term Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender
at its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any exercise
of such option shall not affect the obligation of the Borrower to repay such
Loan in accordance with the terms of this Agreement.

            (c) At the commencement of each Interest Period for any Eurodollar
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $100,000 and not less than $2,500,000. At the time that each ABR
Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that
is an integral multiple of $100,000 and not less than $1,000,000; provided that
an ABR Revolving Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the total Revolving Commitments or that is required to
finance the reimbursement of an LC Disbursement as contemplated by Section
2.04(e). Borrowings of more than one Type and Class may be outstanding at the
same time; provided that there shall not at any time be more than a total of six
(6) Eurodollar Borrowings outstanding.

            (d) Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Revolving Maturity Date or Consolidated Term Loan Maturity Date, as
applicable.

            SECTION 2.03. Requests for Borrowings. To request a Revolving
Borrowing or Consolidated Term Borrowing, the Borrower shall notify the
Administrative Agent of such request by telephone (a) in the case of a
Eurodollar Borrowing, not later than 11:00 a.m., Cleveland, Ohio time, three
Business Days before the date of the proposed Borrowing, or (b) in the case of
an ABR Borrowing, not later than 11:00 a.m., Cleveland, Ohio time, one Business
Day before the date of the proposed Borrowing; provided that any such notice of
an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.04(e) may be given not later than 10:00 a.m.,
Cleveland, Ohio time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

            (i) whether the requested Borrowing is to be a Revolving Borrowing
      or Consolidated Term Borrowing;

            (ii) the aggregate amount of such Borrowing;

            (iii) the date of such Borrowing, which shall be a Business Day;

                                       31
<PAGE>

            (iv) subject to the second sentence of Section 2.02(b), whether such
      Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

            (v) in the case of a Eurodollar Borrowing, the initial Interest
      Period to be applicable thereto, which shall be a period contemplated by
      the definition of the term "Interest Period"; and

            (vi) the location and number of the Borrower's account to which
      funds are to be disbursed, which shall comply with the requirements of
      Section 2.05.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the Borrower shall
be deemed to have selected an Interest Period of one month's duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

            SECTION 2.04. Letters of Credit. (a) General. The Existing Letters
of Credit are identified on Schedule 2.04 hereto. Subject to the terms and
conditions set forth herein, the Borrower may request the issuance of Letters of
Credit for its own account, in a form reasonably acceptable to the
Administrative Agent and the Issuing Bank, at any time and from time to time
during the Revolving Availability Period. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement submitted by the
Borrower to, or entered into by the Borrower with, the Issuing Bank relating to
any Letter of Credit, the terms and conditions of this Agreement shall control.

            (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank and the Administrative Agent (reasonably in advance of the requested date
of issuance, amendment, renewal or extension) a notice requesting the issuance
of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section), the
amount of such Letter of Credit, the name and address of the beneficiary thereof
and such other information as shall be necessary to prepare, amend, renew or
extend such Letter of Credit. If requested by the Issuing Bank, the Borrower
also shall submit a letter of credit application on the Issuing Bank's standard
form in connection with any request for a Letter of Credit. A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension (i) the LC Exposure shall not exceed $7,500,000,
(ii) the total Revolving Exposures shall not exceed the total Revolving
Commitments and (iii) on any date that the total Revolving

                                       32
<PAGE>

Exposures would exceed $15,000,000, the total Revolving Exposures shall not
exceed the Borrowing Base then in effect.

            (c) Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date one year after the date
of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Revolving Maturity Date.

            (d) Participations. By the issuance of a Letter of Credit, including
without limitation the previous issuance of an Existing Letter of Credit, (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Revolving Lender, and each Revolving Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal
to such Lender's Applicable Percentage of the aggregate amount available to be
drawn under such Letter of Credit. In consideration and in furtherance of the
foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to
pay to the Administrative Agent, for the account of the Issuing Bank, such
Lender's Applicable Percentage of each LC Disbursement made by the Issuing Bank
and not reimbursed by the Borrower on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to the
Borrower for any reason. Each Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Revolving Commitments, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever.

            (e) Reimbursement. If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such
LC Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, Cleveland, Ohio time, on the date that
such LC Disbursement is made, if the Borrower shall have received notice of such
LC Disbursement prior to 10:00 a.m., Cleveland, Ohio time, on such date, or, if
such notice has not been received by the Borrower prior to such time on such
date, then not later than 12:00 noon, Cleveland, Ohio time, on (i) the Business
Day that the Borrower receives such notice, if such notice is received prior to
10:00 a.m., Cleveland, Ohio time, on the day of receipt, or (ii) the Business
Day immediately following the day that the Borrower receives such notice, if
such notice is not received prior to such time on the day of receipt; provided
that the Borrower may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.03 that such payment be financed with an
ABR Revolving Borrowing in an equivalent amount and, to the extent so financed,
the Borrower's obligation to make such payment shall be discharged and replaced
by the resulting ABR Revolving Borrowing. If the Borrower fails to make such
payment when due, the Administrative Agent shall notify each Revolving Lender of
the applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender's Applicable Percentage thereof. Promptly
following receipt of such notice, each Revolving Lender shall pay to the
Administrative Agent its Applicable Percentage of the payment then due from the
Borrower, in the same manner as provided in

                                       33
<PAGE>

Section 2.05 with respect to Loans made by such Lender (and Section 2.05 shall
apply, mutatis mutandis, to the payment obligations of the Revolving Lenders),
and the Administrative Agent shall promptly pay to the Issuing Bank the amounts
so received by it from the Revolving Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the Issuing
Bank or, to the extent that Revolving Lenders have made payments pursuant to
this paragraph to reimburse the Issuing Bank, then to such Lenders and the
Issuing Bank as their interests may appear. Any payment made by a Revolving
Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC
Disbursement (other than the funding of ABR Revolving Loans as contemplated
above) shall not constitute a Loan and shall not relieve the Borrower of its
obligation to reimburse such LC Disbursement.

            (f) Obligations Absolute. The Borrower's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrower's obligations hereunder. Neither
the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed to excuse the
Issuing Bank from liability to the Borrower to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby
waived by the Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by the Issuing Bank's failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that,
in the absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented that appear on their
face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept

                                       34
<PAGE>

and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

            (g) Disbursement Procedures. The Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly
notify the Administrative Agent and the Borrower by telephone (confirmed by
telecopy) of such demand for payment and whether the Issuing Bank has made or
will make an LC Disbursement thereunder; provided that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Revolving Lenders with respect to any such LC
Disbursement.

            (h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans;
provided that, if the Borrower fails to reimburse such LC Disbursement when due
pursuant to paragraph (e) of this Section, then Section 2.12(c) shall apply.
Interest accrued pursuant to this paragraph shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment by
any Revolving Lender pursuant to paragraph (e) of this Section to reimburse the
Issuing Bank shall be for the account of such Lender to the extent of such
payment.

            (i) Replacement of the Issuing Bank. The Issuing Bank may be
replaced at any time by written agreement among the Borrower, the Administrative
Agent, the replaced Issuing Bank and the successor Issuing Bank. The
Administrative Agent shall notify the Lenders of any such replacement of the
Issuing Bank. At the time any such replacement shall become effective, the
Borrower shall pay all unpaid fees accrued for the account of the replaced
Issuing Bank pursuant to Section 2.11(b). From and after the effective date of
any such replacement, (i) the successor Issuing Bank shall have all the rights
and obligations of the Issuing Bank under this Agreement with respect to Letters
of Credit to be issued thereafter and (ii) references herein to the term
"Issuing Bank" shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the replacement of an Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall continue to have all
the rights and obligations of an Issuing Bank under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.

            (j) Cash Collateralization. If any Event of Default shall occur and
be continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Lenders with LC Exposure representing greater
than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash equal to 105% of the LC Exposure as of
such date plus any accrued

                                       35
<PAGE>

and unpaid interest thereon; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default with respect to the Borrower described in
clause (h) or (i) of Article VII. Each such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole
discretion of the Administrative Agent and at the Borrower's risk and expense,
such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Revolving Lenders with LC
Exposure representing greater than 50% of the total LC Exposure), be applied to
satisfy other obligations of the Borrower under this Agreement. If the Borrower
is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.

            SECTION 2.05. Funding of Borrowings. (a) Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, Cleveland, Ohio time, to the account
of the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders. The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts so received, in like funds, to
an account of the Borrower maintained with the Administrative Agent in
Cleveland, Ohio and designated by the Borrower in the applicable Borrowing
Request; provided that ABR Revolving Loans made to finance the reimbursement of
an LC Disbursement as provided in Section 2.04(e) shall be remitted by the
Administrative Agent to the Issuing Bank.

            (b) Unless the Administrative Agent shall have received notice from
a Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation or (ii) in the case of the Borrower,
the interest rate applicable to

                                       36
<PAGE>

ABR Loans. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender's Loan included in such Borrowing.

            SECTION 2.06. Interest Elections. (a) Each Revolving Borrowing and
Consolidated Term Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall
have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Borrower may elect to convert such Borrowing to a different Type
or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may
elect Interest Periods therefor, all as provided in this Section. The Borrower
may elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing.

            (b) To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

            (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02 and paragraph
(f) of this Section:

            (i) the Borrowing to which such Interest Election Request applies
      and, if different options are being elected with respect to different
      portions thereof, the portions thereof to be allocated to each resulting
      Borrowing (in which case the information to be specified pursuant to
      clauses (iii) and (iv) below shall be specified for each resulting
      Borrowing);

            (ii) the effective date of the election made pursuant to such
      Interest Election Request, which shall be a Business Day;

            (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
      Eurodollar Borrowing; and

            (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
      Interest Period to be applicable thereto after giving effect to such
      election, which shall be a period contemplated by the definition of the
      term "Interest Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

                                       37
<PAGE>

            (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.

            (e) If the Borrower fails to deliver a timely Interest Election
Request with respect to a Eurodollar Borrowing prior to the end of the Interest
Period applicable thereto, then, unless such Borrowing is repaid as provided
herein, at the end of such Interest Period such Borrowing shall be converted to
an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Borrower, then, so long as an
Event of Default is continuing (i) no outstanding Borrowing may be converted to
or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
Borrowing shall be converted to an ABR Borrowing at the end of the Interest
Period applicable thereto.

            (f) A Borrowing of any Class may not be converted to or continued as
a Eurodollar Borrowing if after giving effect thereto (i) the Interest Period
therefor would commence before and end after a date on which any principal of
the Loans of such Class is scheduled to be repaid and (ii) the sum of the
aggregate principal amount of outstanding Eurodollar Borrowings of such Class
with Interest Periods ending on or prior to such scheduled repayment date plus
the aggregate principal amount of outstanding ABR Borrowings of such Class would
be less than the aggregate principal amount of Loans of such Class required to
be repaid on such scheduled repayment date.

            SECTION 2.07. Termination and Reduction of Commitments. (a) Unless
previously terminated, the Revolving Commitments shall terminate on the
Revolving Maturity Date.

            (b) The Borrower may at any time terminate, or from time to time
reduce, the Revolving Commitments; provided that (i) each reduction of the
Revolving Commitments shall be in an amount that is an integral multiple of
$100,000 and not less than $1,000,000 and (ii) the Borrower shall not terminate
or reduce the Revolving Commitments if, after giving effect to any concurrent
prepayment of the Revolving Loans in accordance with Section 2.10, the sum of
the Revolving Exposures would exceed the total Revolving Commitments.

            (c) In the event that, on the date on which any prepayment would be
required pursuant to Section 2.10(c), no Consolidated Term Borrowings remain
outstanding or the amount of the prepayment required by Section 2.10(c), exceeds
the aggregate principal amount of Consolidated Term Borrowings then outstanding,
the Borrower shall reduce the Revolving Commitments, ratably according to the
Applicable Percentages, by an amount equal to the excess of the required
prepayment over the principal amount, if any, of Consolidated Term Borrowings
actually prepaid.

            (d) The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Revolving Commitments under paragraph (b) of
this Section, or any required reduction of the Revolving Commitments under
paragraph (c) of this Section, at least three Business Days prior to the
effective date of such termination or reduction, specifying such

                                       38
<PAGE>

election and the effective date thereof. Promptly following receipt of any
notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Borrower pursuant to this Section shall be
irrevocable; provided that a notice of termination of the Revolving Commitments
delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be
revoked by the Borrower (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied. Any
termination or reduction of the Revolving Commitments shall be permanent. Each
reduction of the Revolving Commitments shall be made ratably among the Lenders
in accordance with their respective Applicable Percentage.

            SECTION 2.08. Repayment of Loans; Evidence of Debt. (a) The Borrower
hereby unconditionally promises to pay (i) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan
of such Lender on the Revolving Maturity Date and (ii) to the Administrative
Agent for the account of each Lender the then unpaid principal amount of each
Consolidated Term Loan of such Lender as provided in Section 2.09.

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

            (c) The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Class and Type
thereof and the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each
Lender's share thereof.

            (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

            (e) Any Lender may request that Loans of any Class made by it be
evidenced by a promissory note. In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times
be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

            SECTION 2.09. Amortization of Consolidated Term Loans. (a) Subject
to adjustment pursuant to paragraph (b) of this Section 2.09 and Section
2.10(c), the Borrower shall

                                       39
<PAGE>

repay Consolidated Term Borrowings in (i) sixteen (16) consecutive
quarter-annual installments, each in the aggregate principal amount of One
Hundred Eighty-seven Thousand Five Hundred Dollars ($187,500), on each Quarterly
Payment Date, commencing with October 29, 2004, (ii) three (3) consecutive
quarter-annual installments, each in the aggregate principal amount of Three
Million Dollars ($3,000,000), on each Quarterly Payment Date, commencing with
October 24, 2008 and (iii) one installment, on the Consolidated Term Loan
Maturity Date, in the aggregate principal amount of all Consolidated Term
Borrowings then remaining unpaid.

            (b) Any prepayment of a Consolidated Term Borrowing on or after the
Third Restatement Effective Date shall be applied to reduce the subsequent
scheduled repayments of the Consolidated Term Borrowings to be made pursuant to
this Section in the order provided for in the last sentence of Section 2.10(c),
below.

            (c) Prior to any repayment of any Consolidated Term Borrowings
hereunder, the Borrower shall select the Borrowing or Borrowings to be repaid
and shall notify the Administrative Agent by telephone (confirmed by telecopy)
of such selection not later than 11:00 a.m., Cleveland, Ohio time, three
Business Days before the scheduled date of such repayment; provided that each
repayment of Consolidated Term Borrowings shall be applied to repay any
outstanding ABR Consolidated Term Borrowings before any Eurodollar Consolidated
Term Borrowings of such Class. Each repayment of a Borrowing shall be applied
ratably to the Loans included in the repaid Borrowing. Repayments of
Consolidated Term Borrowings shall be accompanied by accrued interest on the
amount repaid.

            SECTION 2.10. Prepayment of Loans. (a) The Borrower shall have the
right at any time and from time to time to prepay any Borrowing in whole or in
part, subject to the requirements of paragraphs (e) and (f) this Section;
provided that each prepayment of Consolidated Term Borrowings shall be in an
aggregate amount that is an integral multiple of $100,000 and not less than
$1,000,000.

            (b) On any date that the total Revolving Exposures exceed
$15,000,000, in the event and on each occasion that the total Revolving
Exposures exceed the Borrowing Base then in effect, the Borrower shall prepay
Revolving Borrowings in an aggregate amount equal to such excess.

            (c) In the event and on each occasion that any Net Proceeds are
received by or on behalf of Holdings, the Borrower or any Subsidiary in respect
of any Prepayment Event, the Borrower shall, immediately after such Net Proceeds
are received apply an aggregate amount equal to such Net Proceeds (i) first, to
the prepayment in full of all outstanding Consolidated Term Borrowings and (ii)
second, to the reduction of the Revolving Commitments. Prepayments of the
Consolidated Term Borrowings shall be applied (A) first, to principal
installments of the Consolidated Term Loans due on the four (4) Quarterly
Payment Dates next following such receipt of Net Proceeds in the order of
maturity of such installments and (B) second, to all of the remaining principal
installments of the Consolidated Term Loans, ratably according to the respective
amounts of such remaining installments.

                                       40
<PAGE>

            (d) In the event of any partial reduction of the Revolving
Commitments, then (i) at or prior to the date of such reduction, the
Administrative Agent shall notify the Borrower and the Lenders of the Revolving
Exposure after giving effect thereto and (ii) if such Revolving Exposure would
exceed the Revolving Commitments after giving effect to such reduction, then the
Borrower shall, on the date of such reduction, repay or prepay Revolving
Borrowings in an amount sufficient to eliminate such excess.

            (e) Prior to any optional or mandatory prepayment of Borrowings
hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid
and shall specify such selection in the notice of such prepayment pursuant to
paragraph (f) of this Section; provided that each prepayment of Borrowings of
any Class shall be applied to prepay ABR Borrowings of such Class before any
other Borrowings of such Class.

            (f) The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., Cleveland, Ohio
time, three Business Days before the date of prepayment or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., Cleveland, Ohio time,
one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date, the principal amount of each
Borrowing or portion thereof to be prepaid and, in the case of a mandatory
prepayment, a reasonably detailed calculation of the amount of such prepayment;
provided that, if a notice of optional prepayment is given in connection with a
conditional notice of termination of the Revolving Commitments as contemplated
by Section 2.07, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.07. Promptly following
receipt of any such notice, the Administrative Agent shall advise the Lenders of
the contents thereof. Each partial prepayment of any Borrowing shall be in an
amount that would be permitted in the case of an advance of a Borrowing of the
same Type as provided in Section 2.02, except as necessary to apply fully the
required amount of a mandatory prepayment. Each prepayment of a Borrowing shall
be applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by Section 2.12.

            SECTION 2.11. Fees. (a) The Borrower agrees to pay to the
Administrative Agent for the account of each Revolving Lender a commitment fee,
which shall accrue at the Applicable Rate on the average daily unused amount of
the Revolving Commitment of such Lender during the period from and including the
Third Restatement Effective Date to but excluding the date on which such
Revolving Commitment terminates. Accrued commitment fees shall be payable in
arrears on each Interest Payment Date and on the date on which the Revolving
Commitments terminate, commencing on the first such date to occur after the
Third Restatement Effective Date. All commitment fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). For purposes of
computing commitment fees, a Revolving Commitment of a Lender shall be deemed to
be used to the extent of the outstanding Revolving Loans and LC Exposure of such
Lender.

                                       41
<PAGE>

            (b) The Borrower agrees to pay (i) to the Administrative Agent for
the account of each Revolving Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate as interest on Eurodollar Revolving Loans on the average daily amount of
such Lender's LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Third
Restatement Effective Date to but excluding the later of the date on which such
Lender's Revolving Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee,
which shall accrue at one-fourth of one percent (0.25%) per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Third
Restatement Effective Date to but excluding the later of the date of termination
of the Revolving Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank's standard fees (other than fronting fees,
which shall be payable as specified above) with respect to the issuance,
amendment, renewal or extension of any Letter of Credit or processing of
drawings thereunder. Participation fees and fronting fees shall be payable in
arrears on each Interest Payment Date, commencing on the first such date to
occur after the Third Restatement Effective Date; provided that all such fees
shall be payable on the date on which the Revolving Commitments terminate and
any such fees accruing after the date on which the Revolving Commitments
terminate shall be payable on demand. Any other fees payable to the Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

            (c) The Borrower agrees to pay to the Administrative Agent, for its
own account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent.

            (d) The Borrower shall pay to the Administrative Agent on the Third
Restatement Effective Date for distribution to each Lender a closing fee for
such Lender in the amount specified in the commitment allocation letter between
such Lender and either or both of the Joint Lead Arrangers.

            (e) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the Issuing
Bank, in the case of fees payable to it) for distribution, in the case of
commitment fees and participation fees, to the Lenders entitled thereto. Fees
paid shall not be refundable under any circumstances.

            SECTION 2.12. Interest. (a) The Loans comprising each ABR Borrowing
shall bear interest at the Alternate Base Rate plus the Applicable Rate.

            (b) The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

                                       42
<PAGE>

            (c) Notwithstanding the foregoing, if any principal of or interest
on any Loan or any fee or other amount payable by the Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, two percent
(2%) plus the rate otherwise applicable to such Loan as provided in the
preceding paragraphs of this Section or (ii) in the case of any other amount,
two percent (2%) plus the rate applicable to ABR Revolving Loans as provided in
paragraph (a) of this Section.

            (d) Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan and, in the case of Revolving Loans,
upon termination of the Revolving Commitments; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving
Availability Period), accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

            (e) All interest hereunder shall be computed on the basis of a year
of 360 days, except that interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

            SECTION 2.13. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

            (a) the Administrative Agent determines (which determination shall
      be conclusive absent manifest error) that adequate and reasonable means do
      not exist for ascertaining the Adjusted LIBO Rate for such Interest
      Period; or

            (b) the Administrative Agent is advised by the Required Lenders that
      the Adjusted LIBO Rate for such Interest Period will not adequately and
      fairly reflect the cost to such Lenders (or Lender) of making or
      maintaining their Loans (or its Loan) included in such Borrowing for such
      Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

                                       43
<PAGE>

            SECTION 2.14. Increased Costs. (a) If any Change in Law shall:

            (i) impose, modify or deem applicable any reserve, special deposit
      or similar requirement against assets of, deposits with or for the account
      of, or credit extended by, any Lender (except any such reserve requirement
      reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

            (ii) impose on any Lender or the Issuing Bank or the London
      interbank market any other condition affecting this Agreement or
      Eurodollar Loans made by such Lender or any Letter of Credit or
      participation therein;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or the
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender or the Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing Bank,
as the case may be, for such additional costs incurred or reduction suffered.

            (b) If any Lender or the Issuing Bank determines that any Change in
Law regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender's or the Issuing Bank's capital or on the capital
of such Lender's or the Issuing Bank's holding company, if any, as a consequence
of this Agreement or the Loans made by, or participations in Letters of Credit
held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a
level below that which such Lender or the Issuing Bank or such Lender's or the
Issuing Bank's holding company could have achieved but for such Change in Law
(taking into consideration such Lender's or the Issuing Bank's policies and the
policies of such Lender's or the Issuing Bank's holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company for any such reduction suffered.

            (c) A certificate of a Lender or the Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or the Issuing Bank or its
holding company, as the case may be, as specified in paragraph (a) or (b) of
this Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the
case may be, the amount shown as due on any such certificate within 10 days
after receipt thereof.

            (d) Failure or delay on the part of any Lender or the Issuing Bank
to demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender or the Issuing
Bank pursuant to this Section for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies the Borrower of the Change in Law giving rise to such

                                       44
<PAGE>

increased costs or reductions and of such Lender's or the Issuing Bank's
intention to claim compensation therefor; provided further that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 180-day period referred to above shall be extended to include the period of
retroactive effect thereof.

            SECTION 2.15. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including, without limitation, as a result
of the requirements of Section 2.10 or of an Event of Default), (b) the
conversion of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Revolving Loan or Consolidated Term Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.10(f) and is revoked in accordance therewith), or (d)
the assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.18, then, in any such event, the Borrower shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure
to borrow, convert or continue, for the period that would have been the Interest
Period for such Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of any Lender setting forth any amount or amounts that
such Lender is entitled to receive pursuant to this Section shall be delivered
to the Borrower and shall be conclusive absent manifest error. The Borrower
shall pay such Lender the amount shown as due on any such certificate within 10
days after receipt thereof.

            SECTION 2.16. Taxes. (a) Any and all payments by or on account of
any obligation of the Borrower hereunder or under any other Loan Document shall
be made free and clear of and without deduction for any Indemnified Taxes or
Other Taxes; provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or Issuing Bank (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall
pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

            (b) In addition, the Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

                                       45
<PAGE>

            (c) The Borrower shall indemnify the Administrative Agent, each
Lender and the Issuing Bank, within 10 days after written demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of the Borrower
hereunder or under any other Loan Document (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered
to the Borrower by a Lender or the Issuing Bank, or by the Administrative Agent
on its own behalf or on behalf of a Lender or the Issuing Bank, shall be
conclusive absent manifest error. If the Administrative Agent, any Lender or the
Issuing Bank (as the case may be) receives a refund of any Indemnified Taxes or
Other Taxes for which the Borrower has made a payment hereunder, it shall
promptly notify the Borrower thereof and shall promptly upon receipt repay such
refund to the Borrower, without interest and net of any expenses incurred;
provided that the Borrower, upon the request of the Administrative Agent, such
Lender or the Issuing Bank (as the case may be), agrees to return the amount of
such refund (plus any penalties, interest or other charges required to be paid)
to the Administrative Agent, such Lender or the Issuing Bank (as the case may
be) in the event the Administrative Agent, such Lender or the Issuing Bank (as
the case may be) is required to repay such refund to the relevant Governmental
Authority.

            (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Borrower shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

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

            SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of
Setoffs. (a) The Borrower shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest, fees
or reimbursement of LC Disbursements, or of amounts payable under Section 2.14,
2.15 or 2.16, or otherwise) prior to 12:00 noon, Cleveland, Ohio time, on the
date when due, in immediately available funds, without set-off or counterclaim.
Any amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 1900 East Ninth
Street, Cleveland, Ohio, except payments to be made directly to the Issuing Bank
as expressly provided herein and except that

                                       46
<PAGE>

payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly
to the Persons entitled thereto and payments pursuant to other Loan Documents
shall be made to the Persons specified therein. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof. If any payment
under any Loan Document shall be due on a day that is not a Business Day, the
date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for
the period of such extension. All payments under each Loan Document shall be
made in dollars.

            (b) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, unreimbursed
LC Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

            (c) If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans, Consolidated Term Loans or
participations in LC Disbursements resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Revolving Loans,
Consolidated Term Loans and participations in LC Disbursements and accrued
interest thereon than the proportion received by any other Lender, then the
Lender receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans, Consolidated Term Loans and
participations in LC Disbursements of other Lenders to the extent necessary so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans, Consolidated Term Loans and participations in
LC Disbursements; provided that (i) if any such participations are purchased and
all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest, and (ii) the provisions of this paragraph
shall not be construed to apply to any payment made by the Borrower pursuant to
and in accordance with the express terms of this Agreement or any payment
obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to any
assignee or participant, other than to the Borrower or any Subsidiary or
Affiliate thereof (as to which the provisions of this paragraph shall apply).
The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of setoff and counterclaim with respect to such participation as
fully as if such Lender were a direct creditor of the Borrower in the amount of
such participation.

            (d) Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Bank hereunder that the
Borrower will not make such
                                       47
<PAGE>

payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount due. In such event, if the Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation.

            (e) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.04(d) or (e), 2.05(b), 2.17(d) or 9.03(c), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender's obligations under
such Sections until all such unsatisfied obligations are fully paid.

            SECTION 2.18. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests compensation under Section 2.14, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.14 or 2.16, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

            (b) If any Lender requests compensation under Section 2.14, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of the Administrative Agent (and,
if a Revolving Commitment is being assigned, the Issuing Bank), which consent
shall not unreasonably be withheld, (ii) such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and participations
in LC Disbursements, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.14 or payments required
to be made pursuant to Section 2.16,

                                       48
<PAGE>

such assignment will result in a reduction in such compensation or payments. A
Lender shall not be required to make any such assignment and delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

      SECTION 2.19. Same Indebtedness; Other References.

            (a) This Agreement and the other Loan Documents shall not be deemed
to provide for or effect a novation or repayment and re-advance of any portion
of the Existing Revolving Loans, the Existing Tranche A Term Loans or the
Existing Delayed Draw Acquisition Loans now outstanding, it being the intention
of the Borrower and the Lenders hereby that the Indebtedness owing under this
Agreement be and hereby is the same Indebtedness as that owing under the
Existing Credit Agreement immediately prior to the effectiveness hereof. Without
limiting the generality of the foregoing, to the extent, if any, not paid prior
to the effectiveness of this Agreement, all accrued interest and fees owing
under and pursuant to the Existing Credit Agreement shall be due and payable in
full on the date on which they would have been due and payable pursuant the
Existing Credit Agreement.

            (b) Upon the effectiveness of this Agreement as provided in Sections
2.01 and 4.02 hereof, the Existing Credit Agreement shall be deemed to have been
amended and restated in its entirety and superceded by this Agreement, and any
references in any other Loan Document to the Existing Credit Agreement shall be
deemed to refer to this Agreement.

                                  ARTICLE III

                         Representations and Warranties

            Each of Holdings and the Borrower represents and warrants to the
Lenders that:

            SECTION 3.01. Organization; Powers. Each of Holdings, the Borrower
and its Subsidiaries is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

            SECTION 3.02. Authorization; Enforceability. The Transactions and
Restatement Transactions to be entered into by each Loan Party are within such
Loan Party's corporate powers and have been duly authorized by all necessary
corporate and, if required, stockholder action. This Agreement has been duly
executed and delivered by each of Holdings and the Borrower and constitutes, and
each other Loan Document to which any Loan Party is to be a party, when executed
and delivered by such Loan Party, will constitute, a legal, valid and binding
obligation of Holdings, the Borrower or such Loan Party (as the case may be),
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

                                       49
<PAGE>

            SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
and Restatement Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental Authority,
except such as have been obtained or made and are in full force and effect and
except filings necessary to perfect Liens created under the Loan Documents, (b)
will not violate any applicable law or regulation or the charter, by-laws or
other organizational documents of Holdings, the Borrower or any of its
Subsidiaries or any order of any Governmental Authority, (c) will not violate or
result in a default under any indenture, agreement or other instrument binding
upon Holdings, the Borrower or any of its Subsidiaries or its assets, or give
rise to a right thereunder to require any payment to be made by Holdings, the
Borrower or any of its Subsidiaries, and (d) will not result in the creation or
imposition of any Lien on any asset of Holdings, the Borrower or any of its
Subsidiaries, except Liens created under the Loan Documents.

            SECTION 3.04. Financial Condition; No Material Adverse Change. (a)
The Borrower has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows (i) as of and
for the fiscal year ended October 25, 2003, reported on by Deloitte & Touche
LLP, independent registered public accounting firm, and (ii) as of and for the
fiscal quarter and the portion of the fiscal year ended May 1, 2004, certified
by its chief financial officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash
flows of the Borrower and its consolidated Subsidiaries as of such dates and for
such periods in accordance with GAAP, subject to year-end audit adjustments and
the absence of footnotes in the case of the statements referred to in clause
(ii) above.

            (b) The Borrower has heretofore furnished to the Lenders its pro
forma consolidated balance sheet as of May 1, 2004, prepared giving effect to
the Transactions as if the Transactions had occurred on such date. Such pro
forma consolidated balance sheet (i) has been prepared in good faith based on
the same assumptions used to prepare the pro forma financial statements included
in the information package distributed to the Lenders in May 2004 (which
assumptions are believed by the Borrower to be reasonable), (ii) is based on the
best information available to the Borrower after due inquiry, (iii) accurately
reflects all adjustments necessary to give effect to the Transactions and (iv)
presents fairly, in all material respects, the pro forma financial position of
the Borrower and its consolidated Subsidiaries as of May 1, 2004 as if the
Transactions had occurred on such date.

            (c) Except as disclosed in the financial statements referred to
above or the notes thereto and except for the Disclosed Matters, after giving
effect to the Transactions and Restatement Transactions, none of Holdings, the
Borrower or its Subsidiaries has, as of the Third Restatement Effective Date,
any material contingent liabilities, unusual long-term commitments or unrealized
losses.

            (d) Since October 25, 2003, there has been no material adverse
change in the business, assets, operations, prospects or condition, financial or
otherwise, of Holdings, the Borrower and its Subsidiaries, taken as a whole.

                                       50
<PAGE>

            SECTION 3.05. Properties. (a) Each of Holdings, the Borrower and its
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business, except for minor defects in
title that do not interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes.

            (b) Each of Holdings, the Borrower and its Subsidiaries owns, or is
licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by Holdings,
the Borrower and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

            (c) Schedule 3.05 sets forth the address of each real property that
is owned or leased by the Borrower or any of its Subsidiaries as of the Third
Restatement Effective Date after giving effect to the Restatement Transactions.
As of the Third Restatement Effective Date, after giving effect to the
Restatement Transactions, neither Holdings, the Borrower nor any of its
Subsidiaries owns any real property other than the real property set forth in
Schedule 3.05.

            SECTION 3.06. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of Holdings or the Borrower,
threatened against or affecting Holdings, the Borrower, any of its Subsidiaries
or the ESOP (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect, (ii)
that involve any of the Loan Documents or the Transactions or (iii) in the case
of the ESOP, as which there is a reasonable possibility of an adverse decision
that could adversely effect the status of the ESOP.

            (b) Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither Holdings, the Borrower
nor any of its Subsidiaries (i) has failed to comply with any Environmental Law
or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any
Environmental Liability, (iii) has received notice of any claim with respect to
any Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

            (c) Since the date of this Agreement, there has been no change in
the status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

            SECTION 3.07. Compliance with Laws and Agreements. Each of Holdings,
the Borrower and its Subsidiaries is in compliance with all laws, regulations
and orders of any Governmental Authority applicable to it or its property and
all indentures, agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. No
Default has occurred and is continuing.

                                       51
<PAGE>

            SECTION 3.08. Investment and Holding Company Status. Neither
Holdings, the Borrower nor any of its Subsidiaries is (a) an "investment
company" as defined in, or subject to regulation under, the Investment Company
Act of 1940 or (b) a "holding company" as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.

            SECTION 3.09. Taxes. Each of Holdings, the Borrower and its
Subsidiaries has timely filed or caused to be filed all income, franchise and
other material Tax returns and reports required to have been filed and has paid
or caused to be paid all Taxes required to have been paid by it, except Taxes
that are being contested in good faith by appropriate proceedings and for which
Holdings, the Borrower or such Subsidiary, as applicable, has set aside on its
books adequate reserves.

            SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed the fair
market value of all the assets of such Plan by an amount that could reasonably
be expected, individually or in the aggregate, to result in a Material Adverse
Effect. Each Plan is in compliance in all material respects with the
requirements under ERISA and the Code.

            SECTION 3.11. Disclosure. The Borrower has disclosed to the Lenders
all agreements, instruments and corporate or other restrictions to which
Holdings, the Borrower or any of its Subsidiaries is subject, and all other
matters known to any of them, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. None of the
reports, financial statements, certificates or other information furnished by or
on behalf of any Loan Party to the Administrative Agent or any Lender in
connection with the negotiation of this Agreement or any other Loan Document or
delivered hereunder or thereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that,
with respect to projected financial information, Holdings and the Borrower
represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

            SECTION 3.12. Subsidiaries. Holdings does not have any Subsidiaries
other than the Borrower and the Borrower's Subsidiaries. Schedule 3.12 sets
forth the name and jurisdiction of organization of, and the ownership interest
of the Borrower in, each Subsidiary of the Borrower and identifies each
Subsidiary that is a Subsidiary Loan Party, in each case as of the Third
Restatement Effective Date.

            SECTION 3.13. Insurance. Schedule 3.13 sets forth a description of
all insurance maintained by or on behalf of the Borrower and its Subsidiaries as
of the Third Restatement Effective Date. As of the Third Restatement Effective
Date, all premiums in respect of such insurance have been paid.

                                       52
<PAGE>

            SECTION 3.14. Labor Matters. As of the Third Restatement Effective
Date, except as described on Schedule 3.14, there are no strikes, lockouts or
slowdowns against Holdings, the Borrower or any Subsidiary pending or, to the
knowledge of Holdings or the Borrower, threatened. The hours worked by and
payments made to employees of Holdings, the Borrower and the Subsidiaries have
not been in violation of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters, except where
such violations, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. All material payments due from
Holdings, the Borrower or any Subsidiary, or for which any material claim may be
made against Holdings, the Borrower or any Subsidiary, on account of wages and
employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of Holdings, the Borrower or such
Subsidiary. The consummation of the Transactions will not give rise to any right
of termination or right of renegotiation on the part of any union under any
collective bargaining agreement to which Holdings, the Borrower or any
Subsidiary is bound.

            SECTION 3.15. Solvency. Immediately after the consummation of the
Restatement Transactions to occur on the Third Restatement Effective Date and
immediately following the making of each Loan made on the Third Restatement
Effective Date and after giving effect to the application of the proceeds of
such Loans (and taking into consideration the rights and obligations of the Loan
Parties under the Indemnity, Subrogation and Contribution Agreement), (a) the
fair value of the assets of each Loan Party, at a fair valuation, will exceed
its debts and liabilities, subordinated, contingent or otherwise; (b) the
present fair saleable value of the property of each Loan Party will be greater
than the amount that will be required to pay the probable liability of its debts
and other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (c) each Loan Party will be able
to pay its debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (d) each Loan Party will
not have unreasonably small capital with which to conduct the business in which
it is engaged as such business is now conducted and is proposed to be conducted
following the Third Restatement Effective Date.

            SECTION 3.16. Security Documents. (a) The Pledge Agreement is
effective to create in favor of the Collateral Agent, for the ratable benefit of
the Secured Parties, a legal, valid and enforceable security interest in the
Collateral (as defined in the Pledge Agreement) and, when the Collateral is
delivered to the Collateral Agent, the Pledge Agreement shall constitute a fully
perfected first priority Lien on, and security interest in, all right, title and
interest of each pledgor thereunder in such Collateral, in each case prior and
superior in right to any other Person.

            (b) The Security Agreement is effective to create in favor of the
Collateral Agent, for the ratable benefit of the Secured Parties, a legal, valid
and enforceable security interest in the Collateral (as defined in the Security
Agreement) and, by virtue of the financing statements filed with the Secretary
of State of the jurisdiction of organization of each respective Loan Party
pursuant to the Existing Credit Agreement, the Security Agreement constitutes a
fully perfected Lien on, and security interest in, all right, title and interest
of the grantors thereunder in such Collateral (other than the Intellectual
Property (as defined in the Security Agreement), in each

                                       53
<PAGE>

case prior and superior in right to any other Person, other than with respect to
Liens expressly permitted by Section 6.02.

      (c) By virtue of the filing of the Security Agreement in the United States
Patent and Trademark Office and the United States Copyright Office, the Security
Agreement constitutes a fully perfected Lien on, and security interest in, all
right, title and interest of the Loan Parties in the Intellectual Property (as
defined in the Security Agreement) in which a security interest may be perfected
by filing, recording or registering a security agreement, financing statement or
analogous document in the United States Patent and Trademark Office or the
United States Copyright Office, as applicable, in each case prior and superior
in right to any other Person other than Liens expressly permitted by Section
6.02 (it being understood that subsequent recordings in the United States Patent
and Trademark Office and the United States Copyright Office may be necessary to
perfect a Lien on registered trademarks, trademark applications and copyrights
acquired by the Loan Parties after the date hereof).

            SECTION 3.17. Federal Reserve Regulations. (a) Neither Holdings, the
Borrower nor any of its Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
buying or carrying Margin Stock.

      (b) No part of the proceeds of any Loan or any Letter of Credit will be
used, whether directly or indirectly, and whether immediately, incidentally or
ultimately, for any purpose that entails a violation of, or that is inconsistent
with, the provisions of the Regulations of the Board, including Regulation G, U
or X.

            SECTION 3.18. TRW Agreement. The provisions of the TRW Agreement
pursuant to which TRW is obligated to perform any "Environmental Remediation"
and/or indemnify, defend and hold harmless the Borrower, with respect to
"Excluded Environmental Obligations", TRW's share of "Shared Environmental
Obligations", or otherwise with respect to "Environmental Activities", are in
full force and effect in accordance with the terms of the TRW Agreement and no
party has waived any material rights thereunder. Terms contained in quotation
marks in this Section 3.18 shall have the respective meanings ascribed to such
terms in the TRW Agreement.

            SECTION 3.19. Tax Status of ESOP. The ESOP, together with the ESOP
Plan and Trust Document, complies with all the requirements necessary to be an
"employee stock ownership plan" within the meaning of Section 4975(e)(7) of the
Code. The ESOP is a qualified plan and trust under Section 401(a) of the Code,
exempt from the tax under Section 501 of the Code and in compliance with all
applicable requirements of the Code and ERISA.

            SECTION 3.20. Certain Agreements. The Stockholders' Agreement and
the Distributorship Agreement are in full force and effect.

                                   ARTICLE IV

                                   Conditions

                                       54
<PAGE>

            SECTION 4.01. Opening Covenants. Prior to or concurrently with the
execution and delivery of this Agreement, the Borrower and Holdings shall
furnish to Administrative Agent originals or copies for delivery to each Lender
of the following:

            (a) Loan Party Certificates. A certificate executed by an authorized
officer of each Loan Party and a secretary or assistant secretary of such Loan
Party certifying (i) the resolutions of the Board of Directors of such Loan
Party authorizing the execution, performance and delivery of each Loan Document
to which such Loan Party is a party, (ii) the names and signatures of the
officers of such Loan Party executing or attesting to such Loan Documents, and
(iii) the absence of any Default;

            (b) Good Standing Certificates. Certificates of good standing for
each Loan Party, certified by the office of the Secretary of State or other
similar official of the state of incorporation or formation of such Loan Party,
and certificates of qualification to transact business as a foreign corporation
or other entity in every other State where such Loan Party's failure so to
qualify could have a Material Adverse Effect; and

            (c) Formation Documents. (i) A copy of the certificate or articles
of incorporation of each Loan Party, including any amendments or restatements
thereof, certified as of a recent date by the Secretary of State or other
governmental official of the jurisdiction of its formation, and (ii) a copy of
the by-laws or equivalent governing documents of such Loan Party, certified as
true, correct and in full force and effect by the Secretary or an Assistant
Secretary of such Loan Party.

            SECTION 4.02 Prior to Initial Credit Event. Prior to or concurrently
with the effectiveness of this Agreement to amend and restate the Existing
Credit Agreement in its entirety and the occurrence of the initial Borrowing or
Letter of Credit issuance hereunder, the Borrower shall furnish to
Administrative Agent originals or copies for delivery to each Lender and the
Letter of Credit Issuer of the following:

            (a) Notes. The Borrower shall have executed and delivered to the
Administrative Agent such promissory notes, if any, as may have been requested
by any Lender pursuant to Section 2.08(e) in the principal amount of, as
applicable, such Lender's Revolving Commitment and such Lender's Consolidated
Term Loan.

            (b) June 2004 Notes. The Borrower shall have delivered to the
Administrative Agent evidence satisfactory to the Administrative Agent that the
Borrower has issued the June 2004 Notes on terms described in the offering
memorandum therefor dated June 4, 2004 and approved by the Administrative Agent
and has received the proceeds thereof and that the June 2004 Notes Documents are
in full force and effect.

            (c) Argo-Tech Notes and Senior Subordinated Notes; Holdings
Preferred Stock. The Borrower shall have delivered to the Administrative Agent
evidence satisfactory to the Administrative Agent (i) that (A) all of the
Borrower's Indebtedness and other obligations under each of the Argo-Tech Notes
and the Argo-Tech Notes Documents and the Senior Subordinated Notes and the
Senior Subordinated Notes Documents (except for the Unpaid

                                       55
<PAGE>

Transaction Debt) have been paid and discharged in full and (B) all of the
Holdings Preferred Stock has been redeemed, and (ii) that redemption notices
will be issued on the Third Restatement Effective Date to all holders of Unpaid
Transaction Debt requiring payment in full no later than August 10, 2004.

            (d) Departing Lenders. The Borrower shall have delivered, or caused
to be delivered, to the Administrative Agent evidence satisfactory to the
Administrative Agent that the Borrower's Indebtedness and other obligations to
each of the Departing Lenders under the Existing Credit Agreement have been paid
and discharged in full.

            (e) Disbursement Instructions. The Borrower shall have delivered to
the Administrative Agent a Borrowing Request and instructions from the Borrower
directing the Administrative Agent to disburse the proceeds of the Effective
Date Term Advance.

            (f) Guarantees. Holdings shall have executed and delivered to the
Administrative Agent a restatement of the Parent Guarantee Agreement, and each
of the Subsidiary Loan Parties shall have executed and delivered to the
Administrative Agent a restatement of its Subsidiary Guarantee Agreement, all in
form and substance satisfactory to the Administrative Agent.

            (g) Security Agreements. Each of the Subsidiary Loan Parties shall
have executed and delivered to the Administrative Agent a restatement of the
Security Agreement, in form and substance satisfactory to the Administrative
Agent.

            (h) Pledge Agreement. Holdings shall have executed and delivered to
the Administrative Agent a restatement of the Pledge Agreement, in form and
substance satisfactory to the Administrative Agent.

            (i) Indemnity, Subrogation and Contribution Agreement. The Loan
Parties shall have executed and delivered to the Administrative Agent a
restatement of the Indemnity, Subrogation and Contribution Agreement, in form
and substance satisfactory to the Administrative Agent

            (j) Closing Fees. The Borrower shall have paid or caused to be paid
all fees required to be paid by it on or prior to such date pursuant to 2.11
hereof, the structuring and arrangement fee to each of the Joint Lead Arrangers
as heretofore agreed to in letters between them and the Borrower, and all
reasonable fees and expenses of the Administrative Agents and of special counsel
to the Administrative Agents in connection with the preparation, execution and
delivery of this Agreement and the other Loan Documents and the consummation of
the transactions contemplated hereby and thereby.

            (k) Mortgages. The Borrower shall have executed and delivered to the
Collateral Agent Mortgages encumbering the California Property and the Ohio
Property; at the expense of the Borrower, the Mortgages shall have been filed
for record in the appropriate public records; and, at the expense of the
Borrower, there shall have been issued to the Collateral Agent

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<PAGE>

loan policies of title insurance in respect of the Mortgages in form and
substance satisfactory to the Collateral Agent.

            (l) Assignment and Recordation of Security Documents, Delivery of
Collateral, Taxes, etc. The assignments of the Security Documents existing prior
to the Third Restatement Effective Date (or proper notices or financing
statements in respect thereof) shall have been executed and delivered to the
Collateral Agent by the Existing Collateral Agent and, as appropriate, and at
the expense of the Borrower, duly recorded, published and filed in such manner
and in such places as may be required by law or deemed appropriate by the
Collateral Agent; all collateral items delivered to the Existing Collateral
Agent under the Security Documents shall have been delivered to the Collateral
Agent, accompanied by any appropriate instruments of transfer; and all taxes,
fees and other charges then due and payable in connection with the execution,
delivery, recording, publishing and filing of such instruments shall have been
paid in full by the Borrower.

            (m) Legal Opinion. The Borrower shall have caused the delivery to
the Administrative Agent a favorable opinion of counsel for the Loan Parties,
all in form and substance reasonably acceptable to the Administrative Agent.

            (n) Lien Searches; Filings. The Borrower shall have delivered, or
cause to be delivered, to the Administrative Agent results of searches, in form
and scope and as of such dates, as are satisfactory to the Administrative Agent,
of Uniform Commercial Code, tax, judgment and all other liens which may have
been filed against each Loan Party and its property; and such filings to perfect
the Liens of the Security Documents shall have been made at the expense of the
Borrower as the Collateral Agent may request.

            (o) Evidence of Insurance. The Administrative Agent shall have
received certificates of insurance and other evidence, satisfactory to it, of
compliance with the insurance requirements of this Agreement and the Security
Documents.

            (p) Absence of Litigation. The Administrative Agent shall have
received evidence satisfactory to it that there shall is not any action, suits
or proceedings pending or threatened with respect to any Loan Party (i) that
have, or could reasonably be expected to have, a Material Adverse Effect, or
(ii) that question the validity or enforceability of any of the Loan Documents,
or of any action to be taken by the Borrower or any of the other Loan Parties
pursuant to any of the Loan Documents.

            (q) Pro Forma Balance Sheet. The Borrower shall have delivered to
the Administrative Agent a pro forma balance sheet of the Borrower and its
Subsidiaries giving effect to the Restatement Transactions (including the
pay-off of the Departing Lenders) and the issuance of the June 2004 Notes and
satisfactory to the Administrative Agent in form and content.

            (r) Opening Revolving Balance. The Borrower shall have delivered to
the Administrative Agent evidence satisfactory to the Administrative Agent that
immediately after giving effect to the Restatement Transactions (including the
pay-off of the Departing Lenders)

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<PAGE>

and the issuance of the June 2004 Notes, the aggregate unpaid principal balance
of the Revolving Loans will not exceed $7,500,000.

            (s) Other Matters. The Borrower shall have executed and delivered to
the Administrative Agent such other documents, certificates and other matters,
and shall have taken such other actions, as the Administrative Agent may
reasonably request of the Borrower and any of the Subsidiary Guarantors.

            SECTION 4.03. Each Credit Event. The obligation of each Lender to
make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue,
amend, renew or extend any Letter of Credit, is subject to the satisfaction of
the following conditions:

            (a) The representations and warranties of each Loan Party set forth
      in the Loan Documents shall be true and correct on and as of the date of
      such Borrowing or the date of issuance, amendment, renewal or extension of
      such Letter of Credit, as applicable.

            (b) At the time of and immediately after giving effect to such
      Borrowing or the issuance, amendment, renewal or extension of such Letter
      of Credit, as applicable, no Default shall have occurred and be
      continuing.

            (c) In the case of any Borrowing of a Revolving Loan or issuance of
      any Letter of Credit, at the time of and immediately after giving effect
      to such Borrowing or issuance of Letter of Credit, if the total Revolving
      Exposures exceed $15,000,000, the Borrower shall have delivered a
      Borrowing Base Certificate as of the most recent month that ended more
      than 15 days prior to such date of Borrowing or issuance of Letter of
      Credit.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by Holdings
and the Borrower on the date thereof as to the matters specified in paragraphs
(a) and (b) of this Section.

                                    ARTICLE V

                              Affirmative Covenants

            Until the Revolving Commitments have expired or been terminated and
the principal of and interest on each Loan and all fees payable hereunder shall
have been paid in full and all Letters of Credit shall have expired or
terminated and all LC Disbursements shall have been reimbursed and each other
Obligation shall have been performed and satisfied in full, each of Holdings and
the Borrower covenants and agrees with the Lenders that:

            SECTION 5.01. Financial Statements and Other Information. The
Borrower will furnish to the Administrative Agent and each Lender (directly or
through the Administrative Agent):

            (a) within 90 days after the end of each fiscal year of the
      Borrower, the Borrower's audited consolidated balance sheet and related
      statements of operations,

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<PAGE>

      stockholders' equity and cash flows as of the end of and for such year,
      setting forth in each case in comparative form the figures for the
      previous fiscal year, all reported on by Deloitte & Touche LLP or other
      independent public accountants of recognized national standing (without a
      "going concern" or like qualification or exception and without any
      qualification or exception as to the scope of such audit) to the effect
      that such consolidated financial statements present fairly in all material
      respects the financial condition and results of operations of the Borrower
      and its consolidated Subsidiaries on a consolidated basis in accordance
      with GAAP consistently (except as noted therein) applied;

            (b) within 45 days after the end of each of the first three fiscal
      quarters of each fiscal year of the Borrower, the Borrower's consolidated
      balance sheet and related statements of operations, stockholders' equity
      and cash flows as of the end of and for such fiscal quarter and the then
      elapsed portion of the fiscal year, setting forth in each case in
      comparative form the figures for the corresponding period or periods of
      (or, in the case of the balance sheet, as of the end of) the previous
      fiscal year, all certified by one of the Borrower's Financial Officers as
      presenting fairly in all material respects the financial condition and
      results of operations of the Borrower and its consolidated Subsidiaries on
      a consolidated basis in accordance with GAAP consistently (except as noted
      therein) applied, subject to normal year-end audit adjustments and the
      absence of footnotes;

            (c) concurrently with any delivery of financial statements under
      clause (a) or (b) above, a certificate of a Financial Officer of the
      Borrower (i) certifying as to whether a Default has occurred and, if a
      Default has occurred, specifying the details thereof and any action taken
      or proposed to be taken with respect thereto, (ii) setting forth
      reasonably detailed calculations demonstrating compliance with Sections
      6.12 and 6.13 and (iii) stating whether any change in GAAP or in the
      application thereof has occurred since the date of the Borrower's audited
      financial statements referred to in Section 3.04 and, if any such change
      has occurred, specifying the effect of such change on the financial
      statements accompanying such certificate;

            (d) concurrently with any delivery of financial statements under
      clause (a) above, a certificate of the accounting firm that reported on
      such financial statements stating whether they obtained knowledge during
      the course of their examination of such financial statements of any
      Default (which certificate may be limited to the extent required by
      accounting rules or guidelines);

            (e) within 30 days after the commencement of each fiscal year of the
      Borrower, a detailed consolidated budget for such fiscal year (including a
      projected consolidated balance sheet and related statements of projected
      operations and cash flow as of the end of and for such fiscal year) and,
      promptly when available, any significant revisions of such budget;

            (f) promptly after the same become publicly available, copies of all
      periodic and other reports, proxy statements and other materials filed by
      Holdings, the Borrower or any Subsidiary with the Securities and Exchange
      Commission, or any Governmental

                                       59
<PAGE>

      Authority succeeding to any or all of the functions of said Commission, or
      with any national securities exchange, or distributed by Holdings to its
      shareholders generally, as the case may be;

            (g) From time to time on the earlier of (i) no later than ten (10)
      days after the first date that the total Revolving Exposures exceed
      $15,000,000 and (ii) within 15 days after the end of each month in which
      the total Revolving Exposures exceeded $15,000,000 at any time during such
      month, a completed Borrowing Base Certificate calculating and certifying
      the Borrowing Base as of the last day of such month (or in the case of the
      first date that the total Revolving Exposures exceed $15,000,000, as of
      the last day of the most recent month that ended more than 15 days prior
      to such date), and signed on behalf of the Borrower by a Financial Officer
      and accompanied by the reports and supporting information contemplated
      thereby; and

            (h) promptly following any request therefor, such other information
      regarding the operations, business affairs and financial condition of
      Holdings, the Borrower or any Subsidiary, or compliance with the terms of
      any Loan Document, as the Administrative Agent or any Lender may
      reasonably request.

            Delivery to the Administrative Agent and each Lender (directly or
through the Administrative Agent) of a copy of the Borrower's Form 10-K or 10-Q,
as the case may be, filed with the Securities and Exchange Commission will
satisfy the requirements set forth in clause (a) and (b) above, as the case may
be, provided that the contents thereof satisfy such requirements.

            SECTION 5.02. Notices of Material Events. Holdings and the Borrower
will furnish to the Administrative Agent and each Lender (directly or through
the Administrative Agent) prompt written notice of the following:

            (a) the occurrence of any Default;

            (b) the filing or commencement of any action, suit or proceeding by
      or before any arbitrator or Governmental Authority against or affecting
      Holdings, the Borrower or any Affiliate thereof that could reasonably be
      expected to result in either (i) liability in excess of $1,500,000 or (ii)
      a Material Adverse Effect;

            (c) the occurrence of any ERISA Event that, alone or together with
      any other ERISA Events that have occurred, could reasonably be expected to
      result in liability of Holdings, the Borrower and its Subsidiaries in an
      aggregate amount exceeding $750,000; and

            (d) any other development that results in, or could reasonably be
      expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details of the event or

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<PAGE>

development requiring such notice and any action taken or proposed to be taken
with respect thereto.

            SECTION 5.03. Information Regarding Collateral. (a) The Borrower
will furnish to the Administrative Agent prompt written notice of any change (i)
in any Loan Party's name, (ii) in the jurisdiction of incorporation or
organization of any Loan Party, (iii) in the location of the chief executive
office of any Loan Party, (iii) in any Loan Party's identity or type of
organization or corporate structure or (iv) in any Loan Party's Organizational
Identification Number. Each Loan Party agrees to promptly provide the
Administrative Agent with certified organizational documents reflecting any of
the changes described in the first sentence of this paragraph. The Borrower
agrees not to effect or permit any change referred to in the first sentence of
this paragraph unless all filings have been made under the Uniform Commercial
Code or otherwise that are required in order for the Administrative Agent to
continue at all times following such change to have a valid, legal and perfected
security interest in all the Collateral. The Borrower also agrees promptly to
notify the Administrative Agent if any material portion of the Collateral is
damaged or destroyed.

            (b) Each year, at the time of delivery of annual financial
statements with respect to the preceding fiscal year pursuant to clause (a) of
Section 5.01, the Borrower shall deliver to the Administrative Agent a
certificate of a Financial Officer of the Borrower and the chief legal officer
of the Borrower setting forth the information required pursuant to Section 2 of
the Perfection Certificate or confirming that there has been no change in such
information since the date of the Perfection Certificate delivered on the Third
Restatement Effective Date or the date of the most recent certificate delivered
pursuant to this Section. Each certificate delivered pursuant to this Section
5.03(b) shall identify in the format of Schedule II, III, IV or V, as
applicable, of the Security Agreement all Intellectual Property (as defined in
the Security Agreement) of any Loan Party in existence on the date thereof and
not then listed on such Schedules as previously so identified to the Collateral
Agent.

            SECTION 5.04. Existence; Conduct of Business. Each of Holdings and
the Borrower will, and will cause each of its Subsidiaries to, do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
its legal existence and the rights, licenses, permits, privileges, franchises,
patents, copyrights, trademarks and tradenames material to the conduct of its
business; provided that the foregoing shall not prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 6.03.

            SECTION 5.05. Payment of Obligations. Each of Holdings and the
Borrower will, and will cause each of its Subsidiaries to, pay its Indebtedness
and other obligations, including material Tax liabilities, before the same shall
become delinquent or in default, except where (a) the validity or amount thereof
is being contested in good faith by appropriate proceedings, (b) Holdings, the
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP, (c) such contest effectively suspends
collection of the contested obligation and the enforcement of any Lien securing
such obligation and (d) the failure to make payment pending such contest could
not reasonably be expected to result in a Material Adverse Effect.

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<PAGE>

            SECTION 5.06. Maintenance of Properties. Each of Holdings and the
Borrower will, and will cause each of its Subsidiaries to, keep and maintain all
property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted.

            SECTION 5.07. Insurance. (a) Each of Holdings and the Borrower will,
and will cause each of its Subsidiaries to, maintain, with financially sound and
reputable insurance companies:

            (i) fire and extended coverage insurance, on a replacement cost
      basis, with respect to all personal property and improvements to real
      property, in such amounts as are customarily maintained by companies in
      the same or similar business operating in the same or similar locations;

            (ii) commercial general liability insurance against claims for
      bodily injury, death or property damage occurring upon, about or in
      connection with the use of any properties owned, occupied or controlled by
      it, providing coverage on an occurrence basis with a combined single limit
      of not less than $1,000,000 (plus $35,000,000 of additional coverage under
      umbrella and similar policies) and including the broad form CGL
      endorsement;

            (iii) business interruption insurance, insuring against loss of
      gross earnings for a period of not less than 12 months arising from any
      risks or occurrences required to be covered by insurance pursuant to
      clause (i) above; and

            (iv) such other insurance of the type and in the amount described in
      Schedule 3.13 or as may be required by law.

Deductibles or self-insured retention shall not exceed $500,000 for fire and
extended coverage policies, $0 for commercial general liability policies or
$500,000 for business interruption policies.

            (b) Fire and extended coverage policies (and any policies required
to be maintained pursuant to paragraph (c) below) maintained with respect to any
Collateral shall be endorsed or otherwise amended to include (i) a
non-contributing mortgage clause (regarding improvements to real property) and
lenders' loss payable clause (regarding personal property), in each case in
favor of the Administrative Agent and providing for losses thereunder to be
payable to the Administrative Agent or its designee, (ii) a provision to the
effect that neither the Borrower, the Administrative Agent nor any other party
shall be a coinsurer and (iii) such other provisions as the Administrative Agent
may reasonably require from time to time to protect the interests of the
Lenders. Commercial general liability policies shall be endorsed to name the
Administrative Agent as an additional insured. Business interruption policies
shall name the Administrative Agent as loss payee. Each such policy referred to
in this paragraph also shall provide that it shall not be canceled, modified or
not renewed (i) by reason of nonpayment of premium except upon not less than 10
days' prior written notice thereof by the insurer to the Administrative Agent
(giving the Administrative Agent the right to cure defaults in the payment of
premiums) or (ii) for any other reason except upon not less than 30 days' prior
written notice

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<PAGE>

thereof by the insurer to the Administrative Agent. The Borrower shall deliver
to the Administrative Agent, prior to the cancellation, modification or
nonrenewal of any such policy of insurance, a copy of a renewal or replacement
policy (or other evidence of renewal of a policy previously delivered to the
Administrative Agent) together with evidence satisfactory to the Administrative
Agent of payment of the premium therefor.

            (c) If at any time the area in which any Mortgaged Property is
located is designated (i) a "flood hazard area" in any Flood Insurance Rate Map
published by the Federal Emergency Management Agency (or any successor agency),
the Borrower shall obtain flood insurance in such total amount as the
Administrative Agent or the Required Lenders may from time to time require, and
otherwise comply with the National Flood Insurance Program as set forth in the
Flood Disaster Protection Act of 1973, as amended from time to time, or (ii) a
"Zone 1" area, the Borrower shall obtain earthquake insurance in such total
amount as the Administrative Agent or the Required Lenders may from time to time
require.

            SECTION 5.08. Casualty and Condemnation. (a) The Borrower will
furnish to the Administrative Agent and the Lenders prompt written notice of any
casualty or other insured damage to any portion of any material Collateral or
the commencement of any action or proceeding for the taking of any material
Collateral or any part thereof or interest therein under power of eminent domain
or by condemnation or similar proceeding.

            (b) If any event described in paragraph (a) of this Section results
in Net Proceeds (whether in the form of insurance proceeds, condemnation award
or otherwise), the Administrative Agent is authorized to collect such Net
Proceeds and, if received by Holdings, the Borrower or any Subsidiary, such Net
Proceeds shall be paid over to the Administrative Agent; provided that (i) if
the aggregate Net Proceeds in respect of such event (other than proceeds of
business income insurance) are less than $2,000,000, such Net Proceeds shall be
paid over to the Borrower unless a Default has occurred and is continuing, and
(ii) all proceeds of business income insurance shall be paid over to the
Borrower unless a Default has occurred and is continuing. All such Net Proceeds
retained by or paid over to the Administrative Agent shall be held by the
Administrative Agent and released from time to time to pay the costs of
repairing, restoring or replacing the affected property in accordance with the
terms of the applicable Security Document, subject to the provisions of the
applicable Security Document regarding application of such Net Proceeds during a
Default.

            (c) If any Net Proceeds retained by or paid over to the
Administrative Agent as provided above continue to be held by the Administrative
Agent on the date that is two years after the occurrence of the event resulting
in such Net Proceeds, then such Net Proceeds shall be applied to prepay
Consolidated Term Borrowings as provided in Section 2.10(c).

            SECTION 5.09. Books and Records; Inspection and Audit Rights. (a)
Each of Holdings and the Borrower will, and will cause each of its Subsidiaries
to, keep proper books of record and account in which full, true and correct
entries are made of all dealings and transactions in relation to its business
and activities. Each of Holdings and the Borrower will, and will cause each of
its Subsidiaries to, permit any representatives designated by the Administrative
Agent or any Lender, upon reasonable prior notice, to visit and inspect its

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<PAGE>

properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested.

            (b) Each of Holdings and the Borrower will, and will cause each of
its Subsidiaries to, permit the Administrative Agent and any representatives
designated by the Administrative Agent (including any consultants, accountants,
lawyers and appraisers retained by the Administrative Agent) to conduct
evaluations and audits of the computation of the Borrowing Base and the assets
included in the Borrowing Base, all at such reasonable times and (i) within 90
days following the first date that the total Revolving Exposures exceed
$15,000,000 and (ii) as often as reasonably requested; provided that, unless a
Default has occurred and is continuing, such evaluations and audits shall not be
conducted on more than two occasions in any calendar year. In addition, Holdings
and the Borrower will, and will cause each of the Subsidiaries to, permit the
Administrative Agent and such representatives to conduct appraisals of the
assets constituting Eligible Inventory, all at such reasonable times and as
often as reasonably requested; provided that (i) it is understood that such an
appraisal will, in the Administrative Agent's discretion, be conducted at least
(A) once within 90 days following the first date that the total Revolving
Exposures exceed $15,000,000 and (B) once during each calendar year, and (ii)
unless a Default has occurred and is continuing, such appraisals shall not be
conducted more than once in any calendar year. The Borrower shall pay the
reasonable fees and expenses of the Administrative Agent and any representatives
retained by the Administrative Agent to conduct any such evaluation, audit or
appraisal.

            SECTION 5.10. Compliance with Laws and Agreements. Each of Holdings
and the Borrower will, and will cause each of its Subsidiaries to, comply with
all laws, rules, regulations and orders of any Governmental Authority applicable
to it or its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect and with all indentures, agreements and other instruments binding upon it
or its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

            SECTION 5.11. Use of Proceeds and Letters of Credit. The proceeds of
the Revolving Loans have been and will be used, and the proceeds of the
Effective Date Term Advance will be used, solely (a) for working capital
purposes and (b) for other general corporate purposes permitted by this
Agreement, other than the repurchase or redemption of Holdings Preferred Stock.
No part of the proceeds of any Loan has been or will be used, whether directly
or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board, including Regulations G, U and X. Letters of Credit
will be issued only for general corporate purposes (other than to finance
acquisitions).

            SECTION 5.12. Additional Subsidiaries. If any additional Subsidiary
is formed or acquired after the Third Restatement Effective Date, the Borrower
will notify the Administrative Agent and the Lenders thereof and (a) if such
Subsidiary is a Subsidiary Loan Party, the Borrower will cause such Subsidiary
to become a party to the Subsidiary Guarantee Agreement, the Indemnity,
Subrogation and Contribution Agreement and each applicable

                                       64
<PAGE>

Security Document in the manner provided therein within three Business Days
after such Subsidiary is formed or acquired and promptly take such actions to
create and perfect Liens on such Subsidiary's assets to secure the Obligations
as the Administrative Agent or the Required Lenders shall reasonably request and
(b) if any shares of capital stock or Indebtedness of such Subsidiary are owned
by or on behalf of any Loan Party, the Borrower will cause such shares and
promissory notes evidencing such Indebtedness to be pledged pursuant to the
Pledge Agreement within three Business Days after such Subsidiary is formed or
acquired (except that, if such Subsidiary is a Foreign Subsidiary, shares of
common stock of such Subsidiary to be pledged pursuant to the Pledge Agreement
may be limited to 65% of the outstanding shares of common stock of such
Subsidiary).

            SECTION 5.13. Further Assurances. (a) Each of Holdings and the
Borrower will, and will cause each Subsidiary Loan Party to, execute any and all
further documents, financing statements, agreements and instruments, and take
all such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust and other documents),
which may be required under any applicable law, or that the Administrative Agent
or the Required Lenders may reasonably request, to effectuate the transactions
contemplated by the Loan Documents or to grant, preserve, protect or perfect the
Liens created or intended to be created by the Security Documents or the
validity or priority of any such Lien, all at the expense of the Loan Parties.
Holdings and the Borrower also agree to provide to the Administrative Agent,
from time to time upon request, evidence reasonably satisfactory to the
Administrative Agent as to the perfection and priority of the Liens created or
intended to be created by the Security Documents.

            (b) If any material assets (including any real property or
improvements thereto or any interest therein) are acquired by the Borrower or
any Subsidiary Loan Party after the Third Restatement Effective Date (other than
assets constituting Collateral under the Security Agreement that become subject
to the Lien of the Security Agreement upon acquisition thereof), the Borrower
will notify the Administrative Agent and the Lenders thereof, and, if requested
by the Administrative Agent or the Required Lenders, the Borrower will cause
such assets to be subjected to a Lien securing the Obligations and will take,
and cause the Subsidiary Loan Parties to take, such actions as shall be
necessary or reasonably requested by the Administrative Agent to grant and
perfect such Liens, including actions described in paragraph (a) of this
Section, all at the expense of the Loan Parties.

            SECTION 5.14. Landlord and Bailee Waivers. Each Loan Party (other
than Holdings) shall make best efforts to deliver to the Administrative Agent
landlord and bailee waivers, in form and substance satisfactory to the
Administrative Agent, in respect of, as applicable, (i) no later than sixty (60)
days after the Third Restatement Effective Date, all locations not owned by such
Loan Party at which Inventory of such Loan Party having an aggregate book value
of more than $3,000,000 is situated; and (ii) (a) at such time as the aggregate
book value of all Inventory of all Loan Parties situated at all locations not
owned by a Loan Party exceeds $6,000,000 or (b) within than sixty (60) days
after the Third Restatement Effective Date, whichever of (a) or (b) is later,
all locations not owned by any Loan Party at

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<PAGE>

which any Inventory of any Loan Party (in excess of $100,000 in aggregate book
value) is situated.

                                   ARTICLE VI

                               Negative Covenants

            Until the Revolving Commitments have expired or terminated and the
principal of and interest on each Loan and all fees payable hereunder have been
paid in full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed and each other Obligation shall have
been performed and satisfied in full, each of Holdings and the Borrower
covenants and agrees with the Lenders that:

            SECTION 6.01. Indebtedness; Certain Equity Securities. (a) The
Borrower will not, and will not permit any Subsidiary to, create, incur, assume
or permit to exist any Indebtedness, except:

            (i) Indebtedness created under the Loan Documents;

            (ii) in the case of the Borrower, Indebtedness under the June 2004
      Notes;

            (iii) Indebtedness of the Borrower to any Subsidiary and of any
      Subsidiary to the Borrower or any other Subsidiary; provided that
      Indebtedness of any Subsidiary that is not a Loan Party to the Borrower or
      any Subsidiary Loan Party shall be subject to Section 6.04;

            (iv) Guarantees by the Borrower of Indebtedness of any Subsidiary
      and by any Subsidiary of Indebtedness of the Borrower or any other
      Subsidiary; provided that (A) the Indebtedness so guaranteed is permitted
      by this Section, (B) Guarantees by the Borrower or any Subsidiary Loan
      Party of Indebtedness of any Subsidiary that is not a Loan Party shall be
      subject to Section 6.04 and (C) the June 2004 Notes shall not be
      Guaranteed by any Subsidiary that is not a guarantor under the Subsidiary
      Guarantee Agreement;

            (v) Indebtedness of the Borrower or any Subsidiary incurred to
      finance the acquisition, construction or improvement of any fixed or
      capital assets, including Capital Lease Obligations and any Indebtedness
      assumed in connection with the acquisition of any such assets or secured
      by a Lien on any such assets prior to the acquisition thereof, and
      extensions, renewals and replacements of any such Indebtedness that do not
      increase the outstanding principal amount thereof or result in an earlier
      maturity date or decreased weighted average life thereof; provided that
      (A) such Indebtedness is incurred prior to or within 90 days after such
      acquisition or the completion of such construction or improvement and (B)
      the aggregate principal amount of Indebtedness permitted by this clause
      (v) shall not exceed $3,000,000 at any time outstanding;

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<PAGE>

            (vi) Indebtedness of any Person that becomes a Subsidiary after the
      date hereof; provided that (A) such Indebtedness exists at the time such
      Person becomes a Subsidiary and is not created in contemplation of or in
      connection with such Person becoming a Subsidiary and (B) the aggregate
      principal amount of Indebtedness permitted by this clause (vi) shall not
      exceed $1,500,000 at any time outstanding;

            (vii) until August 10, 2004, Unpaid Transaction Debt; and

            (viii) other unsecured Indebtedness in an aggregate principal amount
      not exceeding $2,500,000 at any time outstanding.

            (b) Holdings will not create, incur, assume or permit to exist any
Indebtedness except (i) Indebtedness created under the Loan Documents, (ii)
Indebtedness in respect of the Company's Notes, subject to Section 6.08(a), and
(iii) Indebtedness owing to the Borrower in respect of loans made by the
Borrower to Holdings in lieu of dividends that the Borrower would have been
entitled to pay to Holdings pursuant to Section 6.08; provided that (A) any such
loans made by the Borrower to Holdings shall be made at the same times, in the
same amounts and for the same purposes as the Borrower would be permitted to pay
dividends to Holdings pursuant to Section 6.08 and (B) such loans shall be
treated as dividends paid to Holdings for purposes of determining compliance
with Section 6.08.

            (c) Neither Holdings nor the Borrower will, nor will they permit any
Subsidiary to, issue any preferred stock or be or become liable in respect of
any obligation (contingent or otherwise) to purchase, redeem, retire, acquire or
make any other payment in respect of any shares of capital stock of Holdings,
the Borrower or any Subsidiary or any option, warrant or other right to acquire
any such shares of capital stock, except (i) pursuant to the Put Options, as
permitted under Section 6.04(a)(ii); (ii) repurchases of Common Stock (and
options to acquire Common Stock) from directors and employees of Holdings, the
Borrower and the Subsidiaries, as permitted under Section 6.04(a)(iii); (iii) as
permitted under Section 6.08(a)(v); and (iv) on the Third Restatement Effective
Date, redemption of the Holdings Preferred Stock on such date.

            SECTION 6.02. Liens. (a) The Borrower will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable, other than sales of
delinquent accounts receivable for collection purposes in the ordinary course of
business) or rights in respect of any thereof, except:

            (i) Liens created under the Loan Documents;

            (ii) Permitted Encumbrances;

            (iii) any Lien existing on any property or asset prior to the
      acquisition thereof by the Borrower or any Subsidiary or existing on any
      property or asset of any Person that becomes a Subsidiary after the date
      hereof prior to the time such Person becomes a Subsidiary; provided that
      (A) such Lien is not created in contemplation of or in connection with
      such acquisition or such Person becoming a Subsidiary, as the case may

                                       67
<PAGE>

      be, (B) such Lien shall not apply to any other property or assets of the
      Borrower or any Subsidiary and (C) such Lien shall secure only those
      obligations that it secures on the date of such acquisition or the date
      such Person becomes a Subsidiary, as the case may be and extensions,
      renewals and replacements thereof that do not increase the outstanding
      principal amount thereof;

            (iv) Liens on fixed or capital assets acquired, constructed or
      improved by the Borrower or any Subsidiary; provided that (A) such
      security interests secure Indebtedness permitted by clause (v) of Section
      6.01(a), (B) such security interests and the Indebtedness secured thereby
      are incurred prior to or within 90 days after such acquisition or the
      completion of such construction or improvement, (C) the Indebtedness
      secured thereby does not exceed 100% of the cost of acquiring,
      constructing or improving such fixed or capital assets and (D) such
      security interests shall not apply to any other property or assets of the
      Borrower or any Subsidiary; and

            (v) Liens in the form of options on the Common Stock held by the
      Borrower and Holdings issued to directors and employees of Holdings, the
      Borrower and the Subsidiaries.

            (b) Holdings will not create, incur, assume or permit to exist any
Lien on any property or asset now owned or hereafter acquired by it, or assign
or sell any income or revenues (including accounts receivable) or rights in
respect thereof, except Liens created under the Loan Documents and Permitted
Encumbrances.

            SECTION 6.03. Fundamental Changes. (a) Neither Holdings nor the
Borrower will, nor will they permit any Subsidiary to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate
with it, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Default shall have occurred and be
continuing (i) any Subsidiary may merge into the Borrower in a transaction in
which the Borrower is the surviving corporation, (ii) any Subsidiary may merge
into any Subsidiary Loan Party in a transaction in which the surviving entity is
a Subsidiary Loan Party, (iii) any Subsidiary that is not a Loan Party may merge
into any Subsidiary that is not a Loan Party and (iv) any Subsidiary may
liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders; provided that any such merger
involving a Person that is not a wholly owned Subsidiary immediately prior to
such merger shall not be permitted unless also permitted by Section 6.04.

            (b) The Borrower will not, and will not permit any of its
Subsidiaries to, engage to any material extent in any business other than
businesses of the type conducted by the Borrower and its Subsidiaries on the
date of execution of this Agreement and businesses reasonably related thereto.

            (c) Holdings will not engage in any business or activity other than
the ownership of all the outstanding shares of capital stock of the Borrower and
activities incidental thereto; provided, however, that Holdings may engage in
the development of certain tracking technology

                                       68
<PAGE>

transferred to it by the Borrower on or before the Third Restatement Effective
Date. Holdings will not own or acquire any assets (other than shares of its
capital stock, capital stock of the Borrower, cash and Permitted Investments) or
incur any liabilities (other than Indebtedness expressly permitted under Section
6.01(b), other liabilities under the Loan Documents, liabilities imposed by law,
including tax liabilities, and other liabilities incidental to its existence and
permitted business and activities).

            (d) Neither Holdings nor the Borrower will, nor will they permit any
Subsidiary to, (i) permit the ESOP Trustee to be other than an independent
financial institution or (ii) permit any accumulated funding deficiency to occur
with respect to any Plan.

            SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. Neither Holdings nor the Borrower will, nor will they permit any
of the Subsidiaries to, purchase, hold or acquire (including pursuant to any
merger with any Person that was not a wholly owned Subsidiary prior to such
merger) any capital stock, evidences of indebtedness or other securities
(including any option, warrant or other right to acquire any of the foregoing)
or make or permit to exist any loans or advances to, Guarantee any obligations
of, or make or permit to exist any investment or any other interest in, any
other Person, or purchase or otherwise acquire (in one transaction or a series
of transactions) any assets of any other Person constituting a business unit,
except:

            (a) the Borrower (and, in the case of clauses (i), (ii) and (iii)
      below, Holdings) will be permitted to (i) fund distributions by the ESOP
      in accordance with the terms of the ESOP Plan and Trust Document, (ii)
      repurchase Common Stock pursuant to the Put Options, (iii) repurchase
      Common Stock (and options to acquire Common Stock) from directors and
      employees of Holdings, the Borrower and the Subsidiaries and (iv) make
      Permitted Acquisitions; provided that (A) both of the Restricted
      Transaction Conditions shall have been satisfied immediately prior and
      after giving effect thereto (provided further, however, that as to fund
      distributions pursuant to clause (i), above, the Borrower shall be deemed
      to have complied with the requirements of the second of the Restricted
      Transaction Conditions (that is, the requirements set forth in clause (ii)
      of the definition of Restricted Transaction Conditions) if the Borrower
      delivers, as applicable, the Borrowing Base Certificate or written
      statement to the Administrative Agent, to the extent required thereby,
      within 15 days after the date on which such fund distribution occurs), (B)
      the aggregate cumulative amount of all payments, prepayments, purchase
      payments, investments, Restricted Payments and other consideration made on
      or after the Third Restatement Effective Date in respect of transactions
      governed or restricted by this Sections 6.04(a) shall not exceed the
      Cumulative Maximum (and for purposes of determining compliance with the
      limitations of this clause (B), the aggregate principal amount of
      Indebtedness assumed, incurred or otherwise resulting from Permitted
      Acquisitions shall be deemed to constitute amounts expended for such
      purpose) and (C) consideration in respect of Permitted Acquisitions shall
      consist solely of cash consideration and, subject to compliance with
      Section 6.01, assumption or incurrence of Indebtedness;

                                       69
<PAGE>

            (b) Permitted Investments;

            (c) investments existing on the Third Restatement Effective Date and
      set forth on Schedule 6.04, to the extent such investments would not be
      permitted under any other clause of this Section;

            (d) investments by the Borrower in the capital stock of the
      Subsidiaries; provided that (i) any such shares of capital stock shall be
      pledged pursuant to the Pledge Agreement (subject to the limitations
      applicable to common stock of a Foreign Subsidiary referred to in Section
      5.12) and (ii) the aggregate amount of investments in, and loans and
      advances to, and Guarantees of Indebtedness of, Subsidiaries that are not
      Loan Parties shall not exceed $100,000 in the aggregate at any time
      outstanding;

            (e) loans or advances made by the Borrower to any Subsidiary and
      made by any Subsidiary to the Borrower or any other Subsidiary; provided
      that (i) any such loans and advances made by a Loan Party shall be
      evidenced by a promissory note pledged pursuant to the Pledge Agreement
      and (ii) the amount of all such loans and advances by Loan Parties to
      Subsidiaries that are not Loan Parties shall be subject to the limitation
      set forth in clause (d)(ii) above;

            (f) Guarantees constituting Indebtedness permitted by Section 6.01;
      provided that the aggregate principal amount of Indebtedness of
      Subsidiaries that are not Loan Parties Guaranteed by any Loan Party shall
      be subject to the limitation set forth in clause (d)(ii) above;

            (g) investments received in connection with the bankruptcy or
      reorganization of, or settlement of delinquent accounts and disputes with,
      customers and suppliers, in each case in the ordinary course of business;

            (h) loans to directors and employees of the Borrower and the
      Subsidiaries in their capacity as such, in an aggregate principal amount
      not to exceed $3,500,000 at any time outstanding;

            (i) Hedging Agreements permitted under Section 6.07;

            (j) until July 1, 2004, the ESOP Loan in a principal amount not
      exceeding $3,500,000 at any time outstanding;

            (k) contributions to the ESOP in accordance with the terms of the
      ESOP Plan and Trust Document;

            (l) loans by the Borrower to Holdings to the extent Holdings is
      permitted to incur such Indebtedness pursuant to Section 6.01(b); and

            (m) guarantees by Holdings of Indebtedness incurred by another
      Person with respect to the development of certain tracking technology
      transferred to Holdings by the

                                       70
<PAGE>

      Borrower on or before the Third Restatement Effective Date, so long as the
      aggregate principal amount of all such Indebtedness does not at any time
      exceed an amount equal to $4,000,000, minus the amount of all expenditures
      made by Holdings permitted by Section 6.08(a)(iv)(D), below.

            SECTION 6.05. Asset Sales. The Borrower will not, and will not
permit any of its Subsidiaries to, sell, transfer, lease or otherwise dispose of
any asset, including any capital stock, nor will the Borrower permit any of its
Subsidiaries to issue any additional shares of its capital stock or other
ownership interest in such Subsidiary, except:

            (a) sales of inventory, used or surplus equipment and Permitted
      Investments in the ordinary course of business;

            (b) sales, transfers and dispositions to the Borrower or a
      Subsidiary; provided that any such sales, transfers or dispositions
      involving a Subsidiary that is not a Loan Party shall be made in
      compliance with Section 6.09;

            (c) sales, transfers and dispositions of assets (other than capital
      stock of a Subsidiary) that are not permitted by any other clause of this
      Section; provided that the aggregate fair market value of all assets sold,
      transferred or otherwise disposed of in reliance upon this clause (c)
      shall not exceed $7,500,000 in the aggregate during the term of this
      Agreement;

            (d) sales of the Ohio Property; and

            (e) pursuant to stock options issued to directors and employees of
      Holdings, the Borrower and the Subsidiaries, sales of Common Stock
      purchased and held by the Borrower.

provided that all sales, transfers, leases and other dispositions permitted
hereby (other than those permitted by clause (b) above) shall be made for fair
value and solely for cash consideration.

            SECTION 6.06. Sale and Lease-Back Transactions. The Borrower will
not, and will not permit any of its Subsidiaries to, enter into any arrangement,
directly or indirectly, with any Person whereby it shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property
which it intends to use for substantially the same purpose or purposes as the
property being sold or transferred, except for the Ohio Property.

            SECTION 6.07. Hedging Agreements. The Borrower will not, and will
not permit any of its Subsidiaries to, enter into any Hedging Agreement, other
than (i) Hedging Agreements (a) that are entered into in the ordinary course of
business to hedge or mitigate risks to which the Borrower or any Subsidiary is
exposed in the conduct of its business or the management of its liabilities, and
(b) if the Hedging Agreements described in clause (a) hereof are interest rate
protection agreements or other interest hedging arrangements, that hedge a
floating interest rate to a stipulated fixed interest rate and (ii) other
Hedging Agreements that are

                                       71
<PAGE>

interest rate protection agreements or other interest hedging arrangements, so
long as the aggregate notional amount of all such other interest rate Hedging
Agreements to which the Borrower or any Subsidiary is a party that do not comply
with the requirements of clause (i) hereof do not at any time exceed
$100,000,000.

            SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness.
(a) Neither Holdings nor the Borrower will, nor will they permit any Subsidiary
to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except:

            (i) Holdings may declare and pay dividends with respect to its
      capital stock payable solely in additional shares of its common stock;

            (ii) Subsidiaries of the Borrower may declare and pay dividends
      ratably with respect to their capital stock;

            (iii) (A) Holdings and the Borrower may make the Restricted Payments
      contemplated by and permitted under Section 6.04(a), and (B) Holdings may
      make Restricted Payments consisting of the issuance of the Company's Notes
      pursuant to the Stockholders' Agreement, so long as, in each instance
      under either of (A) or (B), above, each and every one of the Restricted
      Transaction Conditions shall have been satisfied immediately prior and
      after giving effect thereto;

            (iv) the Borrower may pay to Holdings on the Third Restatement
      Effective Date, a cash dividend in the amount required to redeem the
      Holdings Preferred Stock on such date and, thereafter, at such times and
      in such amounts as shall be necessary, after giving effect to the
      application by Holdings of any other cash resources available to it
      (including Permitted Investments), to permit Holdings to:

            (A) if at the time thereof and after giving effect thereto no
            Default has occurred and is continuing, pay taxes imposed upon it
            and liabilities incidental to its existence when due,

            (B) if at the time thereof and after giving effect thereto no
            Default has occurred and is continuing, pay directors' fees to its
            directors and actual operating expenses when due, provided that
            dividends paid to Holdings for the purpose of paying directors' fees
            and actual operating expenses shall not exceed $500,000 in any
            fiscal year,

            (C) make Restricted Payments to be made by Holdings that are
            permitted by clause (iii) above, and (v), below, and

            (D) expenditures to fund the development of certain tracking
            technology transferred to Holdings by the Borrower on or before the
            Third Restatement Effective Date so long as, on a cumulative basis
            during the period commencing on and after the Third Restatement
            Effective Date, the aggregate amount of all such expenditures do no
            exceed an amount equal to $4,000,000, minus the principal

                                       72
<PAGE>

            amount of all Indebtedness guaranteed by Holdings permitted by
            Section 6.04(m), above.

      so long as, in each instance under either of (C) and (D), above, each and
      every one of the Restricted Transaction Conditions shall have been
      satisfied immediately prior and after giving effect thereto; provided that
      any dividends permitted to be paid to Holdings shall not be paid prior to
      the date that Holdings will apply the proceeds of such dividends to the
      purposes for which such dividends are permitted; and

            (v) on and after December 31, 2005, Holdings may make Restricted
      Payments to purchase the Morgan Warrants, or stock issued pursuant
      thereto, pursuant to an obligation or right to do so under and pursuant to
      the Morgan Warrants Agreement, so long as (A) both of the Restricted
      Transaction Conditions shall have been satisfied immediately prior and
      after giving effect thereto and (B) the Leverage Ratio as of the end of
      the fiscal quarter most recently ended, adjusted to give effect to such
      purchase is not greater than the Restricted Transaction Leverage Ratio. By
      way of example and not limitation, if Section 6.12 requires that, as of
      the last day of the fiscal quarter ending immediately prior to the date of
      such purchase, the Leverage Ratio not exceed 6.75 to 1, the Restricted
      Transaction Leverage Ratio as of the date of such purchase would not be
      met by the Borrower unless, as of said last day of said immediately
      preceding fiscal quarter, the Leverage Ratio (adjusted to give effect to
      such purchase) is equal to or less than 6.25 to 1.

            (b) Neither Holdings nor the Borrower will, nor will they permit any
Subsidiary to, make or agree to pay or make, directly or indirectly, any payment
or other distribution (whether in cash, securities or other property) of or in
respect of principal of or interest on any Indebtedness, or any payment or other
distribution (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any Indebtedness,
except:

            (i) payment of Indebtedness created under the Loan Documents;

            (ii) payment of regularly scheduled interest and principal payments
      as and when due in respect of any Indebtedness;

            (iii) refinancings of Indebtedness to the extent permitted by
      Section 6.01; and

            (iv) prepayment or any other repurchase, redemption or repayment of
      the June 2004 Notes to the extent permitted by Section 6.14, below.

            SECTION 6.09. Transactions with Affiliates. Neither Holdings nor the
Borrower will, nor will they permit any Subsidiary to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any
of its Affiliates, except (a) transactions in the ordinary course of business
that do not involve Holdings and are at prices and on terms and conditions not
less favorable to the Borrower or such Subsidiary than could be obtained on an
arm's-length

                                       73
<PAGE>

basis from unrelated third parties, (b) transactions between or among the
Borrower and the Subsidiary Loan Parties not involving any other Affiliate, (c)
any Restricted Payment permitted by Section 6.08, (d) director and employee
loans permitted by clause (h) of Section 6.04, (e) transactions between the
Borrower, Holdings or a Subsidiary and an Affiliate that is an employee of the
Borrower or such Subsidiary that (i) are in the nature of employment agreements
or otherwise related to such employee's employment or compensation and (ii) are
at prices and on terms and conditions not materially less favorable to the
Borrower, Holdings or such Subsidiary than are customarily obtained by other
similarly situated employees from their employers, and (f) the Distributorship
Agreement.

            SECTION 6.10. Restrictive Agreements. Neither Holdings nor the
Borrower will, nor will they permit any Subsidiary to, directly or indirectly,
enter into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon (a) the ability of Holdings,
the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon
any of its property or assets, or (b) the ability of any Subsidiary to pay
dividends or other distributions with respect to any shares of its capital stock
or to make or repay loans or advances to the Borrower or any other Subsidiary or
to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that
(i) the foregoing shall not apply to restrictions and conditions imposed by law
or by any Loan Document, (ii) the foregoing shall not apply to restrictions and
conditions existing on the Third Restatement Effective Date identified on
Schedule 6.10 (but shall apply to any extension or renewal of, or any amendment
or modification expanding the scope of, any such restriction or condition),
(iii) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is
to be sold and such sale is permitted hereunder, (iv) clause (a) of the
foregoing shall not apply to restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness, (v) clause (a) of the foregoing shall not apply to customary
provisions in leases restricting the assignment thereof.

            SECTION 6.11. Amendment of Material Documents. Neither Holdings nor
the Borrower will, nor will they permit any Subsidiary to (a) amend, modify or
waive any of its rights under its certificate of incorporation, by-laws or other
organizational documents; provided that the organizational documents of the Loan
Parties may be amended so long as (i) such amendment does not have a material
adverse effect on the interests of the Lenders under this Agreement and (ii) the
Administrative Agent and its counsel have received a copy of such proposed
amendment at least twenty (20) days prior to the proposed effective date
thereof, (b) amend, supplement or modify any of the terms or provisions
contained in the TRW Agreement or Stockholders' Agreement provided that the
Stockholders' Agreement may be amended so long as (i) such amendment does not
have a material adverse effect on the interests of the Lenders under this
Agreement and (ii) the Administrative Agent and its counsel have had an
opportunity to review such amendment, (c) amend, supplement or modify any of the
terms or provisions contained in the Distributorship Agreement, except for such
amendments, supplements and modifications that do not (individually or in the
aggregate) have a Material Adverse Effect, (d) terminate, amend or modify the
ESOP Plan and Trust Document except for

                                       74
<PAGE>

amendments required by law or which do not have a material adverse effect on the
cost of the ESOP to the Borrower or are required by the Internal Revenue Service
as a condition of obtaining a favorable determination letter, (e) terminate,
amend or modify the ESOP Loan Agreement, the ESOP Term Note or the ESOP Pledge
Agreement or (f) amend, modify or supplement any terms or provisions contained
in the June 2004 Note Documents, other than a supplement to add a guarantor
thereunder, so long as such Person is a guarantor under the Subsidiary Guarantee
Agreement.

            SECTION 6.12. Leverage Ratio. The Borrower will not permit the
Leverage Ratio as of the last day of any fiscal quarter ending during any of the
periods set forth below to be in excess of the ratio set forth opposite such
period:

<TABLE>
<CAPTION>
      Fiscal Quarter Ending                    Maximum Ratio
      ---------------------                    -------------
<S>                                            <C>
Third Restatement Effective Date
   through all of fiscal year 2005               7.50 to 1

All of fiscal year 2006                          6.75 to 1

All of fiscal year 2007                          6.25 to 1

All of fiscal year 2008
   and thereafter                                5.50 to 1.
</TABLE>

            SECTION 6.13 Fixed Charge Coverage Ratio. The Borrower will not
permit (a) the Fixed Charge Coverage Ratio for the fiscal quarter of the
Borrower ending on October 30, 2004 to be less than 1.10 to 1, (b) the Fixed
Charge Coverage Ratio for the period of two (2) consecutive fiscal quarters of
the Borrower ending January 28, 2005 to be less than 1.10 to 1, (c) the Fixed
Charge Coverage Ratio for the period of three (3) consecutive fiscal quarters of
the Borrower ending April 29, 2005 to be less than 1.10 to 1, or (d) the Fixed
Charge Coverage Ratio for any period of four (4) consecutive fiscal quarters of
the Borrower ending on or after July 29, 2005 to be less than 1.10 to 1.

            SECTION 6.14. Certain Actions under June 2004 Note Documents. The
Borrower will not (i) make any voluntary prepayment or optional prepayment of
any of the June 2004 Notes or make any other repurchase, redemption or repayment
of the June 2004 Notes prior to the stated maturity date thereof, as they
provide on the Third Restatement Effective Date, or (ii) purchase or otherwise
acquire any June 2004 Note, unless (A) both of the Restricted Transaction
Conditions shall have been satisfied immediately prior and after giving effect
thereto and (B) the Leverage Ratio as of the end of the fiscal quarter most
recently ended, adjusted to give effect to such prepayment, repurchase,
redemption or repayment, purchase or acquisition, is not greater than the
Restricted Transaction Leverage Ratio. By way of example and not limitation, if
Section 6.12 requires that, as of the last day of the fiscal quarter ending
immediately prior to the date of such prepayment, repurchase, redemption or
repayment, purchase or acquisition, the Leverage Ratio not exceed 6.75 to 1, the
Restricted Transaction Leverage Ratio as of the date of such prepayment,
repurchase, redemption or repayment, purchase or acquisition

                                       75
<PAGE>

would not be met by the Borrower unless, as of said last day of said immediately
preceding fiscal quarter, the Leverage Ratio (adjusted to give effect to such
prepayment, repurchase, redemption or repayment, purchase or acquisition) is
equal to or less than 6.25 to 1.

                                   ARTICLE VII

                                Events of Default

            If any of the following events ("Events of Default") shall occur:

            (a) the Borrower shall fail to pay any principal of any Loan or any
      reimbursement obligation in respect of any LC Disbursement when and as the
      same shall become due and payable, whether at the due date thereof or at a
      date fixed for prepayment thereof or otherwise;

            (b) the Borrower shall fail to pay any interest on any Loan or any
      fee or any other amount (other than an amount referred to in clause (a) of
      this Article) payable under this Agreement or any other Loan Document,
      when and as the same shall become due and payable, and such failure shall
      continue unremedied for a period of three Business Days;

            (c) any representation or warranty made or deemed made by or on
      behalf of Holdings, the Borrower or any Subsidiary in or in connection
      with any Loan Document or any amendment or modification thereof or waiver
      thereunder, or in any report, certificate, financial statement or other
      document furnished pursuant to or in connection with any Loan Document or
      any amendment or modification thereof or waiver thereunder, shall prove to
      have been incorrect when made or deemed made;

            (d) Holdings or the Borrower shall fail to observe or perform any
      covenant, condition or agreement contained in Section 5.02, 5.04 (with
      respect to the existence of Holdings or the Borrower) or 5.11 or in
      Article VI;

            (e) any Loan Party shall fail to observe or perform any covenant,
      condition or agreement contained in any Loan Document (other than those
      specified in clause (a), (b) or (d) of this Article), and such failure
      shall continue unremedied for a period of 30 days after notice thereof
      from the Administrative Agent to the Borrower (which notice will be given
      at the request of any Lender);

            (f) Holdings, the Borrower or any Subsidiary shall fail to make any
      payment (whether of principal or interest and regardless of amount) in
      respect of any Material Indebtedness, when and as the same shall become
      due and payable;

            (g) any event or condition occurs that results in any Material
      Indebtedness becoming due prior to its scheduled maturity or that enables
      or permits (with or without the giving of notice, the lapse of time or
      both) the holder or holders of any Material Indebtedness or any trustee or
      agent on its or their behalf to cause any Material Indebtedness to become
      due, or to require the prepayment, repurchase, redemption or

                                       76
<PAGE>

      defeasance thereof, prior to its scheduled maturity; provided that this
      clause (g) shall not apply to secured Indebtedness that becomes due as a
      result of the voluntary sale or transfer of the property or assets
      securing such Indebtedness;

            (h) an involuntary proceeding shall be commenced or an involuntary
      petition shall be filed seeking (i) liquidation, reorganization or other
      relief in respect of Holdings, the Borrower or any Subsidiary or its
      debts, or of a substantial part of its assets, under any Federal, state or
      foreign bankruptcy, insolvency, receivership or similar law now or
      hereafter in effect or (ii) the appointment of a receiver, trustee,
      custodian, sequestrator, conservator or similar official for Holdings, the
      Borrower or any Subsidiary or for a substantial part of its assets, and,
      in any such case, such proceeding or petition shall continue undismissed
      for 60 days or an order or decree approving or ordering any of the
      foregoing shall be entered;

            (i) Holdings, the Borrower or any Subsidiary shall (i) voluntarily
      commence any proceeding or file any petition seeking liquidation,
      reorganization or other relief under any Federal, state or foreign
      bankruptcy, insolvency, receivership or similar law now or hereafter in
      effect, (ii) consent to the institution of, or fail to contest in a timely
      and appropriate manner, any proceeding or petition described in clause (h)
      of this Article, (iii) apply for or consent to the appointment of a
      receiver, trustee, custodian, sequestrator, conservator or similar
      official for Holdings, the Borrower or any Subsidiary or for a substantial
      part of its assets, (iv) file an answer admitting the material allegations
      of a petition filed against it in any such proceeding, (v) make a general
      assignment for the benefit of creditors or (vi) take any action for the
      purpose of effecting any of the foregoing;

            (j) Holdings, the Borrower or any Subsidiary shall become unable,
      admit in writing its inability or fail generally to pay its debts as they
      become due;

            (k) one or more judgments for the payment of money in an aggregate
      amount in excess of $1,500,000 shall be rendered against Holdings, the
      Borrower, any Subsidiary or any combination thereof and the same shall
      remain undischarged for a period of 30 consecutive days during which
      execution shall not be effectively stayed, or any action shall be legally
      taken by a judgment creditor to attach or levy upon any assets of
      Holdings, the Borrower or any Subsidiary to enforce any such judgment;

            (l) an ERISA Event shall have occurred that, in the opinion of the
      Required Lenders, when taken together with all other ERISA Events that
      have occurred, could reasonably be expected to result in liability of the
      Borrower and its Subsidiaries in an aggregate amount exceeding (i)
      $750,000 in any year or (ii) $1,500,000 for all periods;

            (m) any Lien purported to be created under any Security Document
      shall cease to be, or shall be asserted by any Loan Party not to be, a
      valid and perfected Lien on any Collateral, with the priority required by
      the applicable Security Document, except (i) as a result of the sale or
      other disposition of the applicable Collateral in a transaction permitted
      under the Loan Documents or (ii) as a result of the Administrative Agent's

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      failure to maintain possession of any stock certificates, promissory notes
      or other instruments delivered to it under the Pledge Agreement; or

            (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i) terminate the
Revolving Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding to be due and payable
in whole (or in part, in which case any principal not so declared to be due and
payable may thereafter be declared to be due and payable), and thereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; and in case of any event with respect to the Borrower described in
clause (h) or (i) of this Article, the Revolving Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

                                  ARTICLE VIII

                            The Administrative Agent

            Each of the Lenders and the Issuing Bank hereby irrevocably appoints
the Administrative Agent (which term for purposes of this Article shall be
deemed to refer to the Administrative Agent and the Collateral Agent) as its
agent and authorizes the Administrative Agent to take such actions on its behalf
and to exercise such powers as are delegated to the Administrative Agent by the
terms of the Loan Documents, together with such actions and powers as are
reasonably incidental thereto.

            The bank serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with Holdings, the Borrower or any Subsidiary or
other Affiliate thereof as if it were not the Administrative Agent hereunder.

            The Administrative Agent shall not have any duties or obligations
except those expressly set forth in the Loan Documents. Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers,

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except discretionary rights and powers expressly contemplated by the Loan
Documents that the Administrative Agent is required to exercise in writing by
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02), and (c)
except as expressly set forth in the Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for the failure to
disclose, any information relating to Holdings, the Borrower or any of its
Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.02) or in the absence of its own gross negligence or
willful misconduct. The Administrative Agent shall not be deemed to have
knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by Holdings, the Subsidiaries, the Borrower or a Lender,
and the Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with any Loan Document, (ii) the contents of any certificate,
report or other document delivered thereunder or in connection therewith, (iii)
the performance or observance of any of the covenants, agreements or other terms
or conditions set forth in any Loan Document, (iv) the validity, enforceability,
effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere in any Loan Document, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent.

            The Administrative Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon. The Administrative Agent may consult with legal
counsel (who may be counsel for the Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or
experts.

            The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of each Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

            Subject to the appointment and acceptance of a successor the
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Bank and the Borrower.
Upon any such resignation, the

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Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may, on behalf of the Lenders and the Issuing
Bank, appoint a successor Administrative Agent that shall be a bank with an
office in either or both of Cleveland, Ohio and New York, New York, or an
Affiliate of any such bank. Upon the acceptance of its appointment as
Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent's resignation hereunder, the
provisions of this Article and Section 9.03 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.

            Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or related agreement or any document furnished hereunder
or thereunder.

                                   ARTICLE IX

                                  Miscellaneous

            SECTION 9.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

            (a) if to Holdings or the Borrower, to it at Argo-Tech Corporation,
      23555 Euclid Avenue, Cleveland, Ohio 44117-1795, Attention of Frances St
      Clair (Telecopy No. (216) 692-6331);

            (b) if to the Administrative Agent or the Collateral Agent, to
      National City Agent Services, 629 Euclid Avenue, 2nd Floor, Locator
      01-3028, Cleveland, Ohio, Attention of Scott Lankford (Telecopy No.(216)
      222-0103), with a copy to National City Bank, 1900 East Ninth Street,
      Locator 01-2083, Cleveland, Ohio 44114, Attention of Jennifer Simpson
      (Telecopy No. (216) 222-9396);

            (c) if to the Issuing Bank, to it at, as applicable,

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            (i)   National City Bank, International Division #7532, P.O. Box
                  5101, 23000 Millcreek Boulevard, Cleveland, Ohio 44122,
                  Attention of Patricia Bounds (Telecopy No. (216) 488-7550),
                  National City Bank, 1900 East Ninth Street, Locator 01-2083,
                  Cleveland, Ohio 44114, Attention of Jennifer Simpson (Telecopy
                  No. (216) 222-9396), or

            (ii)  JP Morgan Chase Bank, Standby Letter of Credit Department,
                  Global Trade Services, 10420 Highland Manor Dr., Tampa,
                  Florida 33610, Attention: Gina Thomas (Telecopy No. (813)
                  432-5161), with a copy to JPMorgan Chase Bank, 270 Park
                  Avenue, New York, New York 10017, Attention of Stephen Simon
                  (Telecopy No.(212) 270-5100);

            (d) if to any other Lender, to it at its address (or telecopy
      number) set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

            SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the
Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of any Loan Document or consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, the Collateral Agent,
any Lender or the Issuing Bank may have had notice or knowledge of such Default
at the time.

            (b) Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except, in the
case of this Agreement, pursuant to an agreement or agreements in writing
entered into by Holdings, the Borrower and the Required Lenders or, in the case
of any other Loan Document, pursuant to an agreement or agreements in writing
entered into by the Administrative Agent or the Collateral Agent, as applicable,
and the Loan Party or Loan Parties that are parties thereto, in each case with
the consent of the Required Lenders; provided that no such agreement shall (i)
increase the Revolving Commitment of any Lender without the written consent of
such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or
reduce the rate of interest thereon, or

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<PAGE>

reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the scheduled date of payment of the principal
amount of any Loan or LC Disbursement, or any interest thereon, or any fees
payable hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Revolving Commitment, without
the written consent of each Lender affected thereby, (iv) change Section 2.17(b)
or (c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (v) change any of the
provisions of this Section or the definition of "Required Lenders" or any other
provision of any Loan Document specifying the number or percentage of Lenders
(or Lenders of any Class) required to waive, amend or modify any rights
thereunder or make any determination or grant any consent thereunder, without
the written consent of each Lender (or each Lender of such Class, as the case
may be), (vi) release Holdings or any Subsidiary Loan Party from its Guarantee
under the Parent Guarantee Agreement or the Subsidiary Guarantee Agreement, as
applicable (except as expressly provided in the Parent Guarantee Agreement or
the Subsidiary Guarantee Agreement, as applicable), or limit its liability in
respect of such Guarantee, without the written consent of each Lender, (vii)
except in strict accordance with the express provisions thereof, release all or
any substantial part of the Collateral from the Liens of the Security Documents,
without the written consent of each Lender, or (viii) change any provisions of
any Loan Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans of any Class differently than
those holding Loans of any other Class, without the written consent of Lenders
holding a majority in interest of the outstanding Loans and unused Revolving
Commitments of each affected Class (in addition to any consents required under
the foregoing provisions of this Section); provided further that (A) no such
agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, the Collateral Agent or the Issuing Bank without the prior
written consent of the Administrative Agent, the Collateral Agent or the Issuing
Bank, as the case may be, and (B) any waiver, amendment or modification of this
Agreement that by its terms affects the rights or duties under this Agreement of
the Revolving Lenders (but not the Consolidated Term Loan Lenders), the
Consolidated Term Loan Lenders (but not the Revolving Lenders) may be effected
by an agreement or agreements in writing entered into by Holdings, the Borrower
and requisite percentage in interest of the affected Class of Lenders.

            SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower
shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent, the Collateral Agent and their Affiliates, including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent and the Collateral Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of the Loan
Documents or any amendments, modifications or waivers of the provisions thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, the Collateral
Agent, the Issuing Bank or any Lender, including the fees, charges and
disbursements of any counsel for the Administrative Agent, the Collateral Agent,
the Issuing Bank or any Lender, in connection with the enforcement or protection
of its rights in connection with the Loan Documents,

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including its rights under this Section, or in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.

            (b) The Borrower shall indemnify the Administrative Agent, the
Collateral Agent, the Issuing Bank and each Lender, and each Related Party of
any of the foregoing Persons (each such Person being called an "Indemnitee")
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of any Loan Document or any other agreement or instrument
contemplated hereby, the performance by the parties to the Loan Documents of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit
or the use of the proceeds therefrom (including any refusal by the Issuing Bank
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any Mortgaged Property or any other property
currently or formerly owned or operated by the Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses resulted from the gross negligence or willful misconduct of
such Indemnitee.

            (c) To the extent that the Borrower fails to pay any amount required
to be paid by it to the Administrative Agent, the Collateral Agent or the
Issuing Bank under paragraph (a) or (b) of this Section, each Lender severally
agrees to pay to the Administrative Agent, the Collateral Agent or the Issuing
Bank, as the case may be, such Lender's pro rata share (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of
such unpaid amount; provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent, the Collateral Agent or the
Issuing Bank in its capacity as such. For purposes hereof, a Lender's "pro rata
share" shall be determined based upon its share of the sum of the total
Revolving Exposures, outstanding Consolidated Term Loans and unused Revolving
Commitments at the time.

            (d) To the extent permitted by applicable law, neither Holdings nor
the Borrower shall assert, and each hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the Transactions, any Loan or Letter of Credit
or the use of the proceeds thereof.

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<PAGE>

            (e) All amounts due under this Section shall be payable promptly
after written demand therefor.

            SECTION 9.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i)
the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit), Participants (to the extent provided in paragraph (c) of this
Section) and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent, the Collateral Agent, the Issuing Bank and
the Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

            (b) (i) Subject to the conditions set forth in paragraph (b)(ii)
below, any Lender may assign to one or more assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Revolving Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

            (A) the Borrower; provided that no consent of the Borrower shall be
      required for an assignment to a Lender, an Affiliate of a Lender, an
      Approved Fund (as defined below) or, if an Event of Default under
      paragraph (a), (b), (h) or (i) of Article VII has occurred and is
      continuing, any other assignee; and

            (B) the Administrative Agent; provided that no consent of the
      Administrative Agent shall be required for an assignment of any Revolving
      Commitment to an assignee that is a Lender with a Revolving Commitment
      immediately prior to giving effect to such assignment.

            (ii) Assignments shall be subject to the following additional
      conditions:

            (A) except in the case of an assignment to a Lender or an Affiliate
      of a Lender or an assignment of the entire remaining amount of the
      assigning Lender's Revolving Commitment or Loans of any Class, the amount
      of the Revolving Commitment or Loans of the assigning Lender subject to
      each such assignment (determined as of the date the Assignment and
      Acceptance with respect to such assignment is delivered to the
      Administrative Agent) shall not be less than $3,000,000, unless each of
      the Borrower and the Administrative Agent otherwise consent; provided that
      no such consent of the Borrower shall be required if an Event of Default
      has occurred and is continuing;

            (B) each partial assignment shall be made as an assignment of a
      proportionate part of all the assigning Lender's rights and obligations
      under this Agreement, provided that

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      this clause shall not be construed to prohibit the assignment of a
      proportionate part of all the assigning Lender's rights and obligations in
      respect of its Revolving Commitment or one Class of Loans;

            (C) the parties to each assignment shall execute and deliver to the
      Administrative Agent an Assignment and Acceptance, together with a
      processing and recordation fee of $3,500;

            (D) the assignee, if it shall not be a Lender, shall deliver to the
      Administrative Agent an Administrative Questionnaire; and

            (E) in the case of an assignment to a CLO (as defined below), the
      assigning Lender shall retain the sole right to approve any amendment,
      modification or waiver of any provision of this Agreement, provided that
      the Assignment and Acceptance between such Lender and such CLO may provide
      that such Lender will not, without the consent of such CLO, agree to any
      amendment, modification or waiver described in the first proviso to
      Section 9.02(b) that affects such CLO.

            For purposes of this Section 9.04(b), the terms "Approved Fund" and
"CLO" have the following meanings:

      "Approved Fund" means (a) a CLO and (b) with respect to any Lender that is
      a fund which invests in bank loans and similar extensions of credit, any
      other fund that invests in bank loans and similar extension of credit and
      is managed by the same investment advisor as such Lender or by an
      Affiliate of such investment advisor.

      "CLO" means any entity (whether a corporation, partnership, trust or
      otherwise) that is engaged in making, purchasing, holding or otherwise
      investing in bank loans and similar extensions of credit in the ordinary
      course of its business and is administered or managed by a Lender or an
      Affiliate of such Lender.

            (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Acceptance the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all of the assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

            (iv) The Administrative Agent, acting for this purpose as an agent
of the Borrower, shall maintain at one of its offices a copy of each Assignment
and Acceptance

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delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Revolving Commitment of, and principal amount of the Loans
and LC Disbursements owing to, each Lender pursuant to the terms hereof from
time to time (the "Register"). The entries in the Register shall be conclusive,
and Holdings, the Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

            (v) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

            (e) Any Lender may, without the consent of the Borrower, the
Administrative Agent or the Issuing Bank sell participations to one or more
banks or other entities (a "Participant") in all or a portion of such Lender's
rights and obligations under this Agreement (including all or a portion of its
Revolving Commitment and the Loans owing to it); provided that (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) Holdings, the Borrower, the Administrative Agent, the
Collateral Agent, the Issuing Bank and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce the Loan Documents and to approve any amendment,
modification or waiver of any provision of the Loan Documents; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such Participant.
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.17(c) as though it were a Lender.

            (f) A Participant shall not be entitled to receive any greater
payment under Section 2.14 or 2.16 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.16 unless
the Borrower is

                                       86
<PAGE>

notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.16(e) as
though it were a Lender.

            (g) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

            SECTION 9.05. Survival. All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, the Issuing
Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Revolving Commitments have not expired or terminated. The
provisions of Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive
and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Revolving Commitments or the
termination of this Agreement or any provision hereof.

            SECTION 9.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement,
the other Loan Document and any separate letter agreements with respect to fees
payable to the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.

            SECTION 9.07. Severability. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality

                                       87
<PAGE>

and enforceability of the remaining provisions hereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

            SECTION 9.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time
owing by such Lender or Affiliate to or for the credit or the account of the
Borrower against any of and all the obligations of the Borrower now or hereafter
existing under this Agreement held by such Lender, irrespective of whether or
not such Lender shall have made any demand under this Agreement and although
such obligations may be unmatured. The rights of each Lender under this Section
are in addition to other rights and remedies (including other rights of setoff)
that such Lender may have.

            SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) This Agreement shall be construed in accordance with and governed
by the law of the State of Ohio.

            (b) Each of Holdings and the Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Court of Common Pleas of the State of Ohio sitting in
Cuyahoga County, Ohio and of the United States District Court of the Northern
District of Ohio, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to any Loan Document, or for recognition
or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such Ohio State or, to the
extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement or any other Loan
Document shall affect any right that the Administrative Agent, the Issuing Bank
or any Lender may otherwise have to bring any action or proceeding relating to
this Agreement or any other Loan Document against Holdings, the Borrower or its
properties in the courts of any jurisdiction.

            (c) Each of Holdings and the Borrower hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

            (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

                                       88
<PAGE>

            SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

            SECTION 9.11. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

            SECTION 9.12. Confidentiality. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates' directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to any
assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under this Agreement, (g) with the consent of
the Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent, the Issuing Bank or any Lender on a
nonconfidential basis from a source other than Holdings or the Borrower. For the
purposes of this Section, "Information" means all information received from
Holdings or the Borrower relating to Holdings or the Borrower or its business,
other than any such information that is available to the Administrative Agent,
the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by
Holdings or the Borrower; provided that, in the case of information received
from Holdings or the Borrower after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

                                       89
<PAGE>

            SECTION 9.13. Joint Lead Arrangers, et al. None of the Joint Lead
Arrangers, Joint Bookrunners, Syndication Agent or Documentation Agent shall
have any duties or obligations, in such capacities, under this Agreement.

            SECTION 9.14. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

            SECTION 9.15. Existing Credit Agreement; Effectiveness of Amendment
and Restatement. Until this Agreement becomes effective in accordance with the
terms of this Agreement, the Existing Credit Agreement shall remain in full
force and effect and shall not be affected hereby. After the Third Restatement
Effective Date, all obligations of the Borrower under the Existing Credit
Agreement shall become obligations of the Borrower hereunder, guaranteed by the
Parent Guarantee Agreement and the Subsidiary Guarantee Agreements and secured
by the Security Documents, and the provisions of the Existing Credit Agreement
shall be superseded by the provisions hereof.

  [No additional provisions are on this page; the pages next following are the
                                signature pages.]

                                       90
<PAGE>

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

                                      AT HOLDINGS CORPORATION

                                        by
                                          _________________________________
                                          Name:  Michael S. Lipscomb
                                          Title: Chairman, President and
                                                 Chief Executive Officer

                                      ARGO-TECH CORPORATION

                                        by
                                          _________________________________
                                          Name:  Frances S. St.Clair
                                          Title: Executive Vice President and
                                                 Chief Financial Officer

                                      NATIONAL CITY BANK, as
                                      Administrative Agent, as Issuing Bank and
                                      as a Lender,

                                        by
                                          _________________________________
                                          Name:  Jennifer C. Simpson
                                          Title: Vice President

                                       91
<PAGE>

                                      JPMORGAN CHASE BANK, as
                                      Syndication Agent, Issuing Bank and as a
                                      Lender

                                        by
                                          _________________________________
                                          Name:
                                          Title:

                                       92
<PAGE>

                                      GENERAL ELECTRIC CAPITAL
                                      CORPORATION, as Co-Documentation
                                      Agent and as a Lender

                                        by
                                          _________________________________
                                          Name:
                                          Title:

                                       93
<PAGE>

                                      FIRSTMERIT BANK, N.A., as Co-
                                      Documentation Agent and as a Lender

                                        by
                                          _________________________________
                                          Name:
                                          Title:

                                       94

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