Document:

<PAGE>

                                                                     Exhibit 4.2

                              (Pounds)115,000,000

                            CHESAPEAKE CORPORATION

                  10 3/8% Senior Subordinated Notes due 2001

                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

                                                            November 19, 2001

Credit Suisse First Boston (Europe) Limited
Goldman Sachs International
First Union Securities, Inc.
Banc of America Securities Limited
c/o Credit Suisse First Boston (Europe) Limited
  One Cabot Square
  London, England E14 4QJ

Dear Sirs:

     Chesapeake Corporation, a Virginia corporation (the "Company"), proposes to
issue and sell to Credit Suisse First Boston (Europe) Limited, Goldman Sachs
International, First Union Securities, Inc., and Banc of America Securities
Limited (collectively, the "Initial Purchasers"), upon the terms set forth in a
purchase agreement dated November 13, 2001 (the "Purchase Agreement"),
(Pounds)115,000,000 aggregate principal amount of its 10 3/8% Senior
Subordinated Notes due 2011 (the "Initial Securities"). The Initial Securities
will be issued pursuant to an Indenture, dated as of November 19, 2001 (the
"Indenture"), between the Company and The Bank of New York, as trustee (the
"Trustee"). As an inducement to the Initial Purchasers to enter into the
Purchase Agreement, the Company agrees with the Initial Purchasers, for the
benefit of the Initial Purchasers and the holders of the Securities (as defined
below) (collectively the "Holders"), as follows:

     1.  Registered Exchange Offer.  Unless not permitted by applicable law
(after the Company has complied with the ultimate paragraph of this Section 1),
the Company shall prepare and, not later than 60 days (such 60th day being a
"Filing Deadline") after the date on which the Initial Purchasers purchase the
Initial Securities pursuant to the Purchase Agreement (the "Closing Date"), file
with the Securities and Exchange Commission (the "Commission") a registration
statement (the "Exchange Offer Registration Statement") on an appropriate form
under the Securities Act of 1933, as amended (the "Securities Act"), with
respect to a proposed offer (the "Registered Exchange Offer") to the Holders of
Transfer Restricted Securities (as defined in Section 6 hereof), who are not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer, to issue and deliver to such Holders, in exchange for
the Initial Securities, a like aggregate principal amount of debt securities of
the Company issued under the Indenture, identical in all material respects to
the Initial Securities (except that such debt securities shall not be subject to
transfer restrictions and will not be entitled to registration rights) and
registered under the Securities Act (the "Exchange Securities").  The Company
shall use commercially reasonable efforts to (i) cause such Exchange Offer
Registration Statement to become effective under the Securities Act within 150
days after the Closing Date (such 150th day being an "Effectiveness Deadline")
and (ii)  keep the Exchange Offer Registration Statement effective for not less
than 20 business days (or longer, if required by

                                       1
<PAGE>

applicable law) after the date notice of the Registered Exchange Offer is mailed
to the Holders (such period being called the "Exchange Offer Registration
Period").

     If the Company commences the Registered Exchange Offer, the Company (i)
will be entitled to consummate the Registered Exchange Offer 20 business days
after such commencement (provided that the Company has accepted all the Initial
Securities theretofore validly tendered in accordance with the terms of the
Registered Exchange Offer) and (ii) will be required to use commercially
reasonable efforts to consummate the Registered Exchange Offer no later than 30
days after the date on which the Exchange Offer Registration Statement is
declared effective (such 30th day being the "Consummation Deadline").

     Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered
Exchange Offer, it being the objective of such Registered Exchange Offer to
enable each Holder of Transfer Restricted Securities electing to exchange the
Initial Securities for Exchange Securities (assuming that such Holder is not an
affiliate of the Company within the meaning of the Securities Act, acquires the
Exchange Securities in the ordinary course of such Holder's business and has no
arrangements with any person to participate in the distribution of the Exchange
Securities and is not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer) to trade such Exchange
Securities from and after their receipt without any limitations or restrictions
under the Securities Act and without material restrictions under the securities
laws of the several states of the United States.

     The Company acknowledges that, pursuant to current interpretations by the
Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange
Securities (an "Exchanging Dealer"), is required  to deliver a prospectus
containing the information set forth in (a) Annex A hereto on the cover, (b)
Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of
the Exchange Offer" section, and (c) Annex C hereto in the "Plan of
Distribution" section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer (in each case with such changes as may be requested by
the Staff of the Commission in connection with a  review thereof) and (ii) an
Initial Purchaser that elects to sell Securities (as defined below) acquired in
exchange for Initial Securities constituting any portion of an unsold allotment,
is required to deliver a prospectus containing the information required by Items
507 or 508 of Regulation S-K under the Securities Act, as applicable, in
connection with such sale.

     The Company shall use commercially reasonable efforts to keep the Exchange
Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that
                                                         --------  -------
(i) in the case where such prospectus and any amendment or supplement thereto
must be delivered by an Exchanging Dealer or an Initial Purchaser, such period
shall be the lesser of 180 days and the date on which all Exchanging Dealers and
the Initial Purchasers have sold all Exchange Securities held by them (unless
such period is extended pursuant to Section 3(j) below) and (ii) the Company
shall make such prospectus and any amendment or supplement thereto available to
any broker-dealer for use in connection with any resale of any Exchange
Securities for a period of not less than 180 days after the consummation of the
Registered Exchange Offer.

     If, upon consummation of the Registered Exchange Offer, any Initial
Purchaser holds Initial Securities acquired by it as part of its initial
distribution, the Company, simultaneously with the delivery of the Exchange
Securities pursuant to the Registered Exchange Offer, shall issue and deliver to
such Initial Purchaser upon the written request of such Initial Purchaser, in
exchange (the "Private Exchange") for the Initial Securities held by such
Initial Purchaser, a like principal amount of debt securities of the Company

                                       2
<PAGE>

issued under the Indenture and identical in all material respects to the Initial
Securities (the "Private Exchange Securities").  The Initial Securities, the
Exchange Securities and the Private Exchange Securities are herein collectively
called the "Securities."

     In connection with the Registered Exchange Offer, the Company shall:

          (a) mail to each Holder a copy of the prospectus forming part of the
     Exchange Offer Registration Statement, together with an appropriate letter
     of transmittal and related documents;

          (b) keep the Registered Exchange Offer open for not less than 20
     business days (or longer, if required by applicable law) after the date
     notice thereof is mailed to the Holders;

          (c) utilize the services of a depositary for the Registered Exchange
     Offer with an address in the Borough of Manhattan, The City of New York,
     which may be the Trustee or an affiliate of the Trustee;

          (d) permit Holders to withdraw tendered Securities at any time prior
     to the close of business, New York time, on the last business day on which
     the Registered Exchange Offer shall remain open; and

          (e) otherwise comply with all applicable laws.

     As soon as practicable after the close of the Registered Exchange Offer or
the Private Exchange, as the case may be, the Company shall:

          (x) accept for exchange all the Securities validly tendered and not
     withdrawn pursuant to the Registered Exchange Offer and the Private
     Exchange;

          (y) deliver to the Trustee for cancellation all the Initial Securities
     so accepted for exchange; and

          (z) cause the Trustee to authenticate and deliver promptly to each
     Holder of the Initial Securities, Exchange Securities or Private Exchange
     Securities, as the case may be, equal in principal amount to the Initial
     Securities of such Holder so accepted for exchange.

     The Indenture will provide that the Exchange Securities will not be subject
to the transfer restrictions set forth in the Indenture and that all the
Securities will vote and consent together on all matters as one class and that
none of the Securities will have the right to vote or consent as a class
separate from one another on any matter.

     Interest on each Exchange Security and Private Exchange Security issued
pursuant to the Registered Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Initial Securities surrendered in exchange therefor (unless issued after an
interest record date and prior to an interest payment date, in which case
interest shall accrue from such interest payment date) or, if no interest has
been paid on the Initial Securities, from the date of original issue of the
Initial Securities.

     Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer (i) any Exchange Securities received by such Holder
will be acquired in the ordinary course of business, (ii) such Holder will have
no arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an "affiliate," as

                                       3
<PAGE>

defined in Rule 405 of the Securities Act, of the Company, (iv) if such Holder
is not a broker-dealer, that it is not engaged in, and does not intend to engage
in, the distribution of the Exchange Securities and (v) if such Holder is a
broker-dealer, that it will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities and that it will be required to
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.

     Notwithstanding any other provisions hereof, the Company will ensure that
(i) any Exchange Offer Registration Statement and any amendment thereto and any
prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations
thereunder, (ii) any Exchange Offer Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any prospectus
forming part of any Exchange Offer Registration Statement, and any supplement to
such prospectus, does not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

     If following the date hereof there has been announced a change in
Commission policy with respect to exchange offers that in the reasonable opinion
of counsel to the Company raises a substantial question as to whether the
Registered Exchange Offer is permitted by applicable federal law, the Company
will seek a no-action letter or other favorable decision from the Commission
allowing the Company to consummate the Registered Exchange Offer.  The Company
will pursue the issuance of such a decision to the Commission staff level.  In
connection with the foregoing, the Company will take all such other actions as
may be requested by the Commission or otherwise required in connection with the
issuance of such decision, including without limitation (i) participating in
telephonic conferences with the Commission, (ii) delivering to the Commission
staff an analysis prepared by counsel to the Company setting forth the legal
bases, if any, upon which such counsel has concluded that the Registered
Exchange Offer should be permitted and (iii) diligently pursuing a resolution
(which need not be favorable) by the Commission staff.

     2.  Shelf Registration.  If, (i) because of any change in law or in
applicable interpretations thereof by the staff of the Commission, the Company
is not permitted to effect a Registered Exchange Offer, as contemplated by
Section 1 hereof, (ii) the Registered Exchange Offer is not consummated by the
180th day after the Closing Date, (iii) any Initial Purchaser so requests with
respect to the Initial Securities (or the Private Exchange Securities) not
eligible to be exchanged for Exchange Securities in the Registered Exchange
Offer and held by it following consummation of the Registered Exchange Offer or
(iv) any Holder is not eligible to participate in the Registered Exchange Offer
or, in the case of any Holder (other than an Exchanging Dealer) that
participates in the Registered Exchange Offer, such Holder does not receive
freely tradeable Exchange Securities on the date of the exchange and any such
Holder so requests, the Company shall take the following actions (the date on
which any of the conditions described in the foregoing clauses (i) through (iv)
occur, including in the case of clauses (iii) or (iv) the receipt of the
required notice, being a "Trigger Date"):

          (a)  The Company shall promptly (but in no event more than 60 days
     after the Trigger Date (such 60th day being a "Filing Deadline")) file with
     the Commission and thereafter use commercially reasonable efforts to cause
     to be declared effective no later than 150 days after the Trigger Date
     (such 150th day being an "Effectiveness Deadline") a registration statement
     (the "Shelf Registration Statement" and, together with the Exchange Offer
     Registration Statement, a "Registration Statement") on an appropriate form
     under the Securities Act relating to the offer and sale of the Transfer
     Restricted Securities by the Holders thereof from time to time in
     accordance with the methods of distribution set forth in the Shelf
     Registration Statement and Rule 415 under the Securities Act (hereinafter,
     the "Shelf Registration"); provided, however, that
                                --------  -------

                                       4
<PAGE>

     no Holder (other than an Initial Purchaser) shall be entitled to have the
     Securities held by it covered by such Shelf Registration Statement unless
     such Holder agrees in writing to be bound by all the provisions of this
     Agreement applicable to such Holder.

          (b)  The Company shall use commercially reasonable efforts to keep the
     Shelf Registration Statement continuously effective in order to permit the
     prospectus included therein to be lawfully delivered by the Holders of the
     relevant Securities, for a period of two years (or for such longer period
     if extended pursuant to Section 3(j) below) from the date of its
     effectiveness or such shorter period that will terminate when all the
     Securities covered by the Shelf Registration Statement (i) have been sold
     pursuant thereto or (ii) are no longer restricted securities (as defined in
     Rule 144 under the Securities Act, or any successor rule thereof).  Subject
     to Section 6(b) hereof, the Company shall be deemed not to have used
     commercially reasonable efforts to keep the Shelf Registration Statement
     effective during the requisite period if it voluntarily takes any action
     that would result in Holders of Securities covered thereby not being able
     to offer and sell such Securities during that period, unless such action is
     required by applicable law.

          (c)  Notwithstanding any other provisions of this Agreement to the
     contrary, the Company shall cause the Shelf Registration Statement and the
     related prospectus and any amendment or supplement thereto, as of the
     effective date of the Shelf Registration Statement, amendment or
     supplement, (i) to comply in all material respects with the applicable
     requirements of the Securities Act and the rules and regulations of the
     Commission and (ii) not to contain any untrue statement of a material fact
     or omit to state a material fact required to be stated therein or necessary
     in order to make the statements therein, in light of the circumstances
     under which they were made, not misleading.

     3.  Registration Procedures.  In connection with any Shelf Registration
contemplated by Section 2 hereof and, to the extent applicable, any Registered
Exchange Offer contemplated by Section 1 hereof, the following provisions shall
apply:

          (a)  The Company shall (i) furnish to each Initial Purchaser, prior to
     the filing thereof with the Commission, a copy of the Registration
     Statement and each amendment thereof and each supplement, if any, to the
     prospectus included therein and, in the event that an Initial Purchaser is
     participating in the Registered Exchange Offer or the Shelf Registration
     Statement, the Company shall use commercially reasonable efforts to reflect
     in each such document, when so filed with the Commission, such comments as
     such Initial Purchaser reasonably may propose; (ii) include the information
     set forth in Annex A hereto on the cover, in Annex B hereto in the
     "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer"
     section and in Annex C hereto in the "Plan of Distribution" section of the
     prospectus forming a part of the Exchange Offer Registration Statement and
     include the information set forth in Annex D hereto in the Letter of
     Transmittal delivered pursuant to the Registered Exchange Offer (in each
     case with such changes as may be requested by the Staff of the Commission
     in connection with a  review thereof); (iii) if requested by an Initial
     Purchaser, include the information required by Items 507 or 508 of
     Regulation S-K under the Securities Act, as applicable, in the prospectus
     forming a part of the Exchange Offer Registration Statement; (iv) include
     within the section entitled "Plan of Distribution," contained in the
     Exchange Offer Registration Statement a summary statement of the positions
     taken or policies made by the staff of the Commission with respect to the
     potential "underwriter" status of any Exchanging Dealer, whether such
     positions or policies have been publicly disseminated by the staff of the
     Commission or such positions or policies, in the reasonable judgment of the
     Initial Purchasers based upon advice of counsel (which may be in-house
     counsel), represent the prevailing views of the staff of the Commission (to
     the extent not included in Annex C); and (v) in the case of a Shelf
     Registration Statement, include the names of the Holders who propose to
     sell Securities pursuant to the Shelf Registration Statement as selling
     securityholders.

                                       5
<PAGE>

          (b)  The Company shall give written notice to the Initial Purchasers,
     the Holders of the Securities and any Exchanging Dealer from whom the
     Company has received prior written notice that it will be a Exchanging
     Dealer in the Registered Exchange Offer (which notice pursuant to clauses
     (ii)-(v) hereof shall be accompanied by an instruction to suspend the use
     of the prospectus until the requisite changes have been made):

               (i)   when the Registration Statement or any amendment thereto
          has been filed with the Commission and when the Registration Statement
          or any post-effective amendment thereto has become effective;

               (ii)  of any request by the Commission for amendments or
          supplements to the Registration Statement or the prospectus included
          therein or for additional information;

               (iii) of the issuance by the Commission of any stop order
          suspending the effectiveness of the Registration Statement or the
          initiation of any proceedings for that purpose;

               (iv)  of the receipt by the Company or its legal counsel of any
          notification with respect to the suspension of the qualification of
          the Securities for sale in any jurisdiction or the initiation or
          threatening of any proceeding for such purpose; and

               (v)   of the happening of any event that requires the Company to
          make changes in the Registration Statement or the prospectus in order
          that the Registration Statement or the prospectus do not contain an
          untrue statement of a material fact nor omit to state a material fact
          required to be stated therein or necessary to make the statements
          therein (in the case of the prospectus, in light of the circumstances
          under which they were made) not misleading.

          (c)  The Company shall make every reasonable effort to obtain the
     withdrawal at the earliest possible time, of any order suspending the
     effectiveness of the Registration Statement.

          (d)  The Company shall furnish to each Holder of Securities included
     within the coverage of the Shelf Registration, without charge, at least one
     copy of the Shelf Registration Statement and any post-effective amendment
     thereto, including financial statements and schedules, and, if the Holder
     so requests in writing, all exhibits thereto (including those, if any,
     incorporated by reference).

          (e)  The Company shall deliver to each Exchanging Dealer and each
     Initial Purchaser, and to any other Holder who so requests, without charge,
     at least one copy of the Exchange Offer Registration Statement and any
     post-effective amendment thereto, including financial statements and
     schedules, and, if any Initial Purchaser or any such Holder requests, all
     exhibits thereto (including those incorporated by reference).

          (f)  The Company shall, during the Shelf Registration Period, deliver
     to each Holder of Securities included within the coverage of the Shelf
     Registration, without charge, as many copies of the prospectus (including
     each preliminary prospectus) included in the Shelf Registration Statement
     and any amendment or supplement thereto as such person may reasonably
     request.  The Company consents, subject to the provisions of this
     Agreement, to the use of the prospectus or any amendment or supplement
     thereto by each of the selling Holders of the Securities in connection with
     the offering and sale of the Securities covered by the prospectus, or any
     amendment or supplement thereto, included in the Shelf Registration
     Statement.

                                       6
<PAGE>

          (g)  The Company shall deliver to each Initial Purchaser, any
     Exchanging Dealer and such other persons required to deliver a prospectus
     following the Registered Exchange Offer, without charge, as many copies of
     the final prospectus included in the Exchange Offer Registration Statement
     and any amendment or supplement thereto as such persons may reasonably
     request.  The Company consents, subject to the provisions of this
     Agreement, to the use of the prospectus or any amendment or supplement
     thereto by any Initial Purchaser, if necessary, any Exchanging Dealer and
     such other persons required to deliver a prospectus following the
     Registered Exchange Offer in connection with the offering and sale of the
     Exchange Securities covered by the prospectus, or any amendment or
     supplement thereto, included in such Exchange Offer Registration Statement.

          (h)  Prior to any public offering of the Securities pursuant to any
     Registration Statement the Company shall register or qualify or cooperate
     with the Holders of the Securities included therein and their respective
     counsel in connection with the registration or qualification of the
     Securities for offer and sale under the securities laws of such
     jurisdictions as any Holder of the Securities reasonably requests in
     writing and do any and all other acts or things necessary or advisable to
     enable the offer and sale in such jurisdictions of the Securities covered
     by such Registration Statement; provided, however, that the Company shall
                                     --------  -------
     not be required to (i) qualify generally to do business in any jurisdiction
     where it is not then so qualified or (ii) take any action which would
     subject it to general service of process or to taxation in any jurisdiction
     where it is not then so subject.

          (i)  The Company shall cooperate with the Holders of the Securities to
     facilitate the timely preparation and delivery of certificates representing
     the Securities to be sold pursuant to any Registration Statement free of
     any restrictive legends and in such denominations and registered in such
     names as the Holders may request a reasonable period of time prior to sales
     of the Securities pursuant to such Registration Statement.

          (j)  Upon the occurrence of any event contemplated by paragraphs (ii)
     through (v) of Section 3(b) above during the period for which the Company
     is required to maintain an effective Registration Statement, the Company
     shall promptly prepare and file a post-effective amendment to the
     Registration Statement or a supplement to the related prospectus and any
     other required document so that, as thereafter delivered to Holders of the
     Securities or purchasers of Securities, the prospectus will not contain an
     untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in light of the circumstances under which they were made, not misleading.
     If the Company notifies the Initial Purchasers, the Holders of the
     Securities and any known Exchanging Dealer in accordance with paragraphs
     (ii) through (v) of Section 3(b) above to suspend the use of the prospectus
     until the requisite changes to the prospectus have been made, then the
     Initial Purchasers, the Holders of the Securities and any such Exchanging
     Dealers shall suspend use of such prospectus, and the period of
     effectiveness of the Shelf Registration Statement provided for in Section
     2(b) above and the Exchange Offer Registration Statement provided for in
     Section 1 above shall each be extended by the number of days from and
     including the date of the giving of such notice to and including the date
     when the Initial Purchasers, the Holders of the Securities and any known
     Exchanging Dealer shall have received such amended or supplemented
     prospectus pursuant to this Section 3(j).

          (k)  Not later than the effective date of the applicable Registration
     Statement, the Company will provide an ISIN and Common Code number for the
     Initial Securities, the Exchange Securities or the Private Exchange
     Securities, as the case may be, and provide the applicable trustee with
     printed certificates for the Initial Securities, the Exchange Securities or
     the Private Exchange Securities, as the case may be, in a form eligible for
     deposit with a common depository for Clearstream and Euroclear.

                                       7
<PAGE>

          (l)  The Company will comply with all rules and regulations of the
     Commission to the extent and so long as they are applicable to the
     Registered Exchange Offer or the Shelf Registration and will make generally
     available to its security holders (or otherwise provide in accordance with
     Section 11(a) of the Securities Act) an earning statement satisfying the
     provisions of Section 11(a) of the Securities Act, no later than 45 days
     after the end of a 12-month period (or 90 days, if such period is a fiscal
     year) beginning with the first month of the Company's first fiscal quarter
     commencing after the effective date of the Registration Statement, which
     statement shall cover such 12-month period.

          (m)  The Company shall cause the Indenture to be qualified under the
     Trust Indenture Act of 1939, as amended, in a timely manner and containing
     such changes, if any, as shall be necessary for such qualification.  In the
     event that such qualification would require the appointment of a new
     trustee under the Indenture, the Company shall appoint a new trustee
     thereunder pursuant to the applicable provisions of the Indenture.

          (n)  The Company may require each Holder of Securities to be sold
     pursuant to the Shelf Registration Statement to furnish to the Company such
     information regarding the Holder and the distribution of the Securities as
     the Company may from time to time reasonably require for inclusion in the
     Shelf Registration Statement, and the Company (i) may exclude from such
     registration the Securities of any Holder that unreasonably fails to
     furnish such information within a reasonable time after receiving such
     request and (ii) shall not be obligated to pay Additional Interest on any
     such Securities with respect to such Holder from the date of such failure
     until such time that the Holder provides the requested information.

          (o)  The Company shall enter into such customary agreements
     (including, if requested, an underwriting agreement in customary form) and
     take all such other action, if any, as any Holder of the Securities shall
     reasonably request in order to facilitate the disposition of the Securities
     pursuant to any Shelf Registration.

          (p)  In the case of any Shelf Registration, the Company shall (i) make
     reasonably available for inspection by the Holders of the Securities, any
     underwriter participating in any disposition pursuant to the Shelf
     Registration Statement and any attorney, accountant or other agent retained
     by the Holders of the Securities or any such underwriter all relevant
     financial and other records, pertinent corporate documents and properties
     of the Company and (ii) cause the Company's officers, directors, employees,
     accountants and auditors to supply all relevant information reasonably
     requested by the Holders of the Securities or any such underwriter,
     attorney, accountant or agent in connection with the Shelf Registration
     Statement, in each case, as shall be reasonably necessary to enable such
     persons, to conduct a reasonable investigation within the meaning of
     Section 11 of the Securities Act; provided, however, that the foregoing
                                       --------  -------
     inspection and information gathering shall be coordinated on behalf of the
     Initial Purchasers by you and on behalf of the other parties, by one
     counsel designated by and on behalf of such other parties as described in
     Section 4 hereof; provided, further, however, that such persons shall first
                       --------- -------  -------
     agree in writing with the Company that any information that is reasonably
     and in good faith designated by the Company in writing as confidential at
     the time of delivery of such information shall be kept confidential by such
     persons unless (i) disclosure of such information is required by court or
     administrative order or is necessary to respond to inquiries of regulatory
     authorities, (ii) disclosure of such information is required by law
     (including any disclosure requirements pursuant to Federal securities laws
     in connection with the filing of the Shelf Registration Statement or the
     use of any prospectus thereunder), (iii) such information becomes generally
     available to the public other than as a result of disclosure or failure to
     safeguard by any such person, or (iv) such information

                                       8
<PAGE>

     becomes available to any such person from a source other than the Company
     and such source is not bound by a confidentiality agreement or other
     obligation not to disclose such information.

          (q)  In the case of any Shelf Registration, the Company, if requested
     by any Holder of Securities covered thereby, shall cause (i) its counsel to
     deliver an opinion and updates thereof relating to the Securities in
     customary form addressed to such Holders and the managing underwriters, if
     any, thereof and dated, in the case of the initial opinion, the effective
     date of such Shelf Registration Statement (it being agreed that the matters
     to be covered by such opinion shall include, without limitation, the due
     incorporation and good standing of the Company and its significant
     subsidiaries; the qualification of the Company and its significant
     subsidiaries to transact business as foreign corporations; the due
     authorization, execution and delivery of the relevant agreement of the type
     referred to in Section 3(o) hereof; the due authorization, execution,
     authentication and issuance, and the validity and enforceability, of the
     applicable Securities; the absence of material legal or governmental
     proceedings involving the Company and its significant subsidiaries; the
     absence of governmental approvals required to be obtained (and not
     obtained) in connection with the Shelf Registration Statement, the offering
     and sale of the applicable Securities, or any agreement of the type
     referred to in Section 3(o) hereof; the compliance as to form of such Shelf
     Registration Statement and any documents incorporated by reference therein
     and of the Indenture with the requirements of the Securities Act and the
     Trust Indenture Act, respectively; and, as of the date of the opinion and
     as of the effective date of the Shelf Registration Statement or most recent
     post-effective amendment thereto, as the case may be, the absence from such
     Shelf Registration Statement and the prospectus included therein, as then
     amended or supplemented, and from any documents incorporated by reference
     therein of an untrue statement of a material fact or the omission to state
     therein a material fact required to be stated therein or necessary to make
     the statements therein not misleading (in the case of any such documents,
     in the light of the circumstances existing at the time that such documents
     were filed with the Commission under the Exchange Act); (ii) its officers
     to execute and deliver all customary documents and certificates and updates
     thereof requested by any underwriters of the applicable Securities and
     (iii) its independent public accountants and the independent public
     accountants with respect to any other entity for which financial
     information is provided in the Shelf Registration Statement to provide to
     the selling Holders of the applicable Securities and any underwriter
     therefor a comfort letter in customary form and covering matters of the
     type customarily covered in comfort letters in connection with primary
     underwritten offerings, subject to receipt of appropriate documentation as
     contemplated, and only if permitted, by Statement of Auditing Standards No.
     72.

          (r)  In the case of the Registered Exchange Offer, if requested by any
     Initial Purchaser or any known Exchanging Dealer, the Company shall cause
     (i) its counsel to deliver to such Initial Purchaser or such Exchanging
     Dealer a signed opinion in the form set forth in Section 6(c) of the
     Purchase Agreement with such changes as are customary in connection with
     the preparation of a Registration Statement and (ii) its independent public
     accountants and the independent public accountants with respect to any
     other entity for which financial information is provided in the
     Registration Statement to deliver to such Initial Purchaser or such
     Exchanging Dealer a comfort letter, in customary form, meeting the
     requirements as to the substance thereof as set forth in Section 6(a) of
     the Purchase Agreement, with appropriate date changes.

          (s)  If a Registered Exchange Offer or a Private Exchange is to be
     consummated, upon delivery of the Initial Securities by Holders to the
     Company (or to such other Person as directed by the Company) in exchange
     for the Exchange Securities or the Private Exchange Securities, as the case
     may be, the Company shall mark, or caused to be marked, on the Initial
     Securities so exchanged that such Initial Securities are being canceled in
     exchange for the Exchange Securities or the Private Exchange Securities, as
     the case may be; in no event shall the Initial Securities be marked as paid
     or otherwise satisfied.

                                       9
<PAGE>

          (t)  The Company will use commercially reasonable efforts to (a) if
     the Initial Securities have been rated prior to the initial sale of such
     Initial Securities, confirm such ratings will apply to the Securities
     covered by a Registration Statement, or (b) if the Initial Securities were
     not previously rated, cause the Securities covered by a Registration
     Statement to be rated with the appropriate rating agencies, if so requested
     by Holders of a majority in aggregate principal amount of Securities
     covered by such Registration Statement, or by the managing underwriters, if
     any.

          (u)  In the event that any broker-dealer registered under the Exchange
     Act shall underwrite any Securities or participate as a member of an
     underwriting syndicate or selling group or "assist in the distribution"
     (within the meaning of the Conduct Rules (the "Rules") of the National
     Association of Securities Dealers, Inc. ("NASD")) thereof, whether as a
     Holder of such Securities or as an underwriter, a placement or sales agent
     or a broker or dealer in respect thereof, or otherwise, the Company will
     assist such broker-dealer in complying with the requirements of such Rules,
     including, without limitation, by (i) if such Rules, including Rule 2720,
     shall so require, engaging a "qualified independent underwriter" (as
     defined in Rule 2720) to participate in the preparation of the Registration
     Statement relating to such Securities, to exercise usual standards of due
     diligence in respect thereto and, if any portion of the offering
     contemplated by such Registration Statement is an underwritten offering or
     is made through a placement or sales agent, to recommend the yield of such
     Securities, (ii) indemnifying any such qualified independent underwriter to
     the extent of the indemnification of underwriters provided in Section 5
     hereof and (iii) providing such information to such broker-dealer as may be
     required in order for such broker-dealer to comply with the requirements of
     the Rules.

          (v)   The Company shall use commercially reasonable efforts to take
     all other steps necessary to effect the registration of the Securities
     covered by a Registration Statement contemplated hereby.

     4.  Registration Expenses.  (a) All expenses incident to the Company's
performance of and compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement is ever filed or becomes
effective, including without limitation;

          (i)   all registration and filing fees and expenses;

          (ii)  all fees and expenses of compliance with federal securities and
     state "blue sky" or securities laws;

          (iii) all expenses of printing (including printing certificates for
     the Securities to be issued in the Registered Exchange Offer and the
     Private Exchange and printing of Prospectuses), messenger and delivery
     services and telephone;

          (iv)  all fees and disbursements of counsel for the Company;

          (v)   all application and filing fees in connection with listing the
     Exchange Securities on a national securities exchange or automated
     quotation system pursuant to the requirements hereof; and

          (vi)  all fees and disbursements of independent certified public
     accountants of the Company (including the expenses of any special audit and
     comfort letters required by or incident to such performance).

                                       10
<PAGE>

The Company will bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses
of any person, including special experts, retained by the Company.

     (b)  In connection with any Registration Statement required by this
Agreement, the Company will reimburse the Initial Purchasers and the Holders of
Transfer Restricted Securities who are tendering Initial Securities in the
Registered Exchange Offer and/or selling or reselling Securities pursuant to the
"Plan of Distribution" contained in the Exchange Offer Registration Statement or
the Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Davis Polk & Wardwell
unless another firm shall be chosen by the Holders of a majority in principal
amount of the Transfer Restricted Securities for whose benefit such Registration
Statement is being prepared.

     5.  Indemnification.  (a)  The Company agrees to indemnify and hold
harmless each Holder of the Securities, any Exchanging Dealer and each person,
if any, who controls such Holder or such Exchanging Dealer within the meaning of
the Securities Act or the Exchange Act (each Holder, any Exchanging Dealer and
such controlling persons are referred to collectively as the "Indemnified
Parties") from and against any losses, claims, damages or liabilities, joint or
several, or any actions in respect thereof (including, but not limited to, any
losses, claims, damages, liabilities or actions relating to purchases and sales
of the Securities) to which each Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of, or are based upon, the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and shall reimburse, as incurred, the Indemnified
Parties for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action in respect thereof; provided, however, that (i) the Company
                                        --------  -------
shall not be liable in any such case to the extent that such loss, claim, damage
or liability arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in a Registration
Statement or prospectus or in any amendment or supplement thereto or in any
preliminary prospectus relating to a Shelf Registration in reliance upon and in
conformity with written information pertaining to such Holder and furnished to
the Company by or on behalf of such Holder specifically for inclusion therein
and (ii) with respect to any untrue statement or omission or alleged untrue
statement or omission made in any preliminary prospectus relating to a Shelf
Registration Statement, the indemnity agreement contained in this subsection (a)
shall not inure to the benefit of any Holder or Exchanging Dealer from whom the
person asserting any such losses, claims, damages or liabilities purchased the
Securities concerned, to the extent that a prospectus relating to such
Securities was required to be delivered by such Holder or Exchanging Dealer
under the Securities Act in connection with such purchase and any such loss,
claim, damage or liability of such Holder or Exchanging Dealer results from the
fact that there was not sent or given to such person, at or prior to the written
confirmation of the sale of such Securities to such person, a copy of the final
prospectus if the Company had previously furnished copies thereof to such Holder
or Exchanging Dealer; provided further, however, that this indemnity agreement
                      -------- -------  -------
will be in addition to any liability which the Company may otherwise have to
such Indemnified Party.  The Company shall also indemnify underwriters, their
officers and directors and each person who controls such underwriters within the
meaning of the Securities Act or the Exchange Act to the same extent as provided
above with respect to the indemnification of the Holders of the Securities if
requested by such Holders.

     (b)  Each Holder of the Securities, severally and not jointly, will
indemnify and hold harmless the Company and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act from
and against any losses, claims, damages or liabilities or any actions in respect
thereof, to which the Company or any such controlling person may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages, liabilities or actions arise out of or

                                       11
<PAGE>

are based upon any untrue statement or alleged untrue statement of a material
fact contained in a Registration Statement or prospectus or in any amendment or
supplement thereto or in any preliminary prospectus relating to a Shelf
Registration, or arise out of or are based upon the omission or alleged omission
to state therein a material fact necessary to make the statements therein not
misleading, but in each case only to the extent that the untrue statement or
omission or alleged untrue statement or omission was made in reliance upon and
in conformity with written information pertaining to such Holder and furnished
to the Company by or on behalf of such Holder specifically for inclusion
therein; and, subject to the limitation set forth immediately preceding this
clause, shall reimburse, as incurred, the Company for any legal or other
expenses reasonably incurred by the Company or any such controlling person in
connection with investigating or defending any loss, claim, damage, liability or
action in respect thereof. This indemnity agreement will be in addition to any
liability which such Holder may otherwise have to the Company or any of its
controlling persons.

     (c)  Promptly after receipt by an indemnified party under this Section 5 of
notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to
be made against the indemnifying party under this Section 5, notify the
indemnifying party of the commencement thereof; but the omission so to notify
the indemnifying party will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above.  In case any such action is
brought against any indemnified party, and it notifies the indemnifying party of
the commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party (which consent shall not be unreasonably withheld), be
counsel to the indemnifying party), and after notice from the indemnifying party
to such indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof.  No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement of any pending
or threatened action in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified
party unless such settlement includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter
of such action, and does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

     (d)  If the indemnification provided for in this Section 5 is unavailable
or insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to in subsection (a) or (b)
above in such proportion as is appropriate to reflect the relative fault of the
indemnifying party or parties on the one hand and the indemnified party on the
other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities (or actions in respect thereof) as well
as any other relevant equitable considerations.  The relative fault of the
parties shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company
on the one hand or such Holder or such other indemnified party, as the case may
be, on the other, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in the first sentence of this subsection (d)
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any action
or claim which is the subject of this subsection (d).  Notwithstanding any other
provision of this Section 5(d), the Holders of the Securities shall not be
required to contribute any amount in excess of the amount by which the net
proceeds received by such Holders from the sale of the Securities pursuant to a
Registration Statement exceeds the amount of

                                       12
<PAGE>

damages which such Holders have otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. For purposes of this paragraph
(d), each person, if any, who controls such indemnified party within the meaning
of the Securities Act or the Exchange Act shall have the same rights to
contribution as such indemnified party and each person, if any, who controls the
Company within the meaning of the Securities Act or the Exchange Act shall have
the same rights to contribution as the Company.

     (e)  The agreements contained in this Section 5 shall survive the sale of
the Securities pursuant to a Registration Statement and shall remain in full
force and effect, regardless of any termination or cancellation of this
Agreement or any investigation made by or on behalf of any indemnified party.

     6.  Additional Interest Under Certain Circumstances.  (a)  Additional
interest (the "Additional Interest") with respect to the Securities shall be
assessed as follows if any of the following events occur (each such event in
clauses (i) through (iv) below being herein called a "Registration Default"):

     (i)    any Registration Statement required by this Agreement is not filed
            with the Commission on or prior to the applicable Filing Deadline;

     (ii)   any Registration Statement required by this Agreement is not
            declared effective by the Commission on or prior to the applicable
            Effectiveness Deadline;

     (iii)  the Registered Exchange Offer has not been consummated on or prior
            to the Consummation Deadline; or

     (iv)   any Registration Statement required by this Agreement has been
            declared effective by the Commission but (A) such Registration
            Statement thereafter ceases to be effective or (B) such Registration
            Statement or the related prospectus ceases to be usable (except as
            set forth in Section 6(b) below) in connection with resales of
            Transfer Restricted Securities during the periods specified herein
            because either (1) any event occurs as a result of which the related
            prospectus forming part of such Registration Statement would include
            any untrue statement of a material fact or omit to state any
            material fact necessary to make the statements therein in the light
            of the circumstances under which they were made not misleading, or
            (2) it shall be necessary to amend such Registration Statement or
            supplement the related prospectus, to comply with the Securities Act
            or the Exchange Act or the respective rules thereunder.

Each of the foregoing will constitute a Registration Default whatever the reason
for any such event and whether it is voluntary or involuntary or is beyond the
control of the Company or pursuant to operation of law or as a result of any
action or inaction by the Commission.

     Additional Interest shall accrue on the Securities over and above the
interest set forth in the title of the Securities from and including the date on
which any such Registration Default shall occur to but excluding the date on
which all such Registration Defaults have been cured, at a rate of 0.25% per
annum (the "Additional Interest Rate") for the first 90-day period immediately
following the occurrence of such Registration Default.  The Additional Interest
Rate shall increase by an additional 0.25% per annum with respect to each
subsequent 90-day period until all Registration Defaults have been cured, up to
a maximum Additional Interest Rate of 1.0% per annum.

     (b)  A Registration Default referred to in Section 6(a)(iv) hereof shall be
deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such

                                       13
<PAGE>

Registration Default has occurred solely as a result of (x) the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate
annual audited financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared effective
to permit Holders to use the related prospectus or (y) other material events,
with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause
(y), the Company is proceeding promptly and in good faith to amend or supplement
such Shelf Registration Statement and related prospectus to describe such
events; provided, however, that in any case if such Registration Default occurs
for a continuous period in excess of 30 days, Additional Interest shall be
payable in accordance with the above paragraph from the day such Registration
Default occurs until such Registration Default is cured.

     (c)  Any amounts of Additional Interest due pursuant to Section 6(a) will
be payable in cash on the regular interest payment dates with respect to the
Securities.  The amount of Additional Interest will be determined by multiplying
the applicable Additional Interest Rate by the principal amount of the
Securities and further multiplied by a fraction, the numerator of which is the
number of days such Additional Interest Rate was applicable during such period
(determined on the basis of a 360-day year comprised of twelve 30-day months),
and the denominator of which is 360.

     (d)  "Transfer Restricted Securities" means each Security until (i) the
date on which such Security has been exchanged by a person other than a broker-
dealer for a freely transferable Exchange Security in the Registered Exchange
Offer, (ii) following the exchange by a broker-dealer in the Registered Exchange
Offer of an Initial Security for an Exchange Security, the date on which such
Exchange Security is sold to a purchaser who receives from such broker-dealer on
or prior to the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement, (iii) the date on which such Security has
been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement or (iv) the date on which such
Security is distributed to the public pursuant to Rule 144 under the Securities
Act or is saleable pursuant to Rule 144(k) under the Securities Act.

     7.  Rules 144 and 144A.  The Company shall use commercially reasonable
efforts to file the reports required to be filed by it under the Securities Act
and the Exchange Act in a timely manner and, if at any time the Company is not
required to file such reports, it will, upon the request of any Holder of
Securities, make publicly available other information so long as necessary to
permit sales of their securities pursuant to Rules 144 and 144A.  The Company
covenants that it will take such further action as any Holder of Securities may
reasonably request, all to the extent required from time to time to enable such
Holder to sell Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4)).  The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the
Company by the Initial Purchasers upon request.  Upon the request of any Holder
of Initial Securities, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements.  Notwithstanding
the foregoing, nothing in this Section 7 shall be deemed to require the Company
to register any of its securities pursuant to the Exchange Act.

     8.  Underwritten Registrations.  If any of the Transfer Restricted
Securities covered by any Shelf Registration are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers
that will administer the offering ("Managing Underwriters") will be selected by
the Holders of a majority in aggregate principal amount of such Transfer
Restricted Securities to be included in such offering; provided, however, that
                                                       --------  -------
such Managing Underwriter shall be reasonably acceptable to the Company.  The
Holders of any Transfer Restricted Securities offered pursuant to any
underwritten offering shall bear the expenses of any underwriters' or brokers'
discounts or commissions with respect to such offering.

                                       14
<PAGE>

     No person may participate in any underwritten registration hereunder unless
such person (i) agrees to sell such person's Transfer Restricted Securities on
the basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

     9.  Miscellaneous.

     (a)  Remedies.  The Company acknowledges and agrees that any failure by the
Company to comply with its obligations under Section 1 and 2 hereof may result
in material irreparable injury to the Initial Purchasers or the Holders for
which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be
required to specifically enforce the Company's obligations under Sections 1 and
2 hereof.  The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

     (b)  No Inconsistent Agreements.  The Company will not on or after the date
of this Agreement enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof.  The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's securities under any
agreement in effect on the date hereof.

     (c)  Amendments and Waivers.  The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, except by the Company and the written
consent of the Holders of a majority in principal amount of the Securities
affected by such amendment, modification, supplement, waiver or consents;
provided that any amendment, modification, supplement, waiver or consent with
respect to Section 6 shall require the consent of each Holder affected thereby.

     (d)  Notices.  All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first-class mail,
facsimile transmission, or air courier which guarantees overnight delivery:

                    (1)  if to a Holder of the Securities, at the most current
address given by such Holder to the Company.

                    (2)  if to the Initial Purchasers;

                           Credit Suisse First Boston (Europe) Limited
                           c/o Credit Suisse First Boston Corporation
                           Eleven Madison Avenue
                           New York, NY 10010-3629
                           Fax No.: (212) 325-8278
                           Attention: Transactions Advisory Group

                           Goldman Sachs International
                           c/o Goldman, Sachs & Co.
                           85 Broad Street
                           New York, NY  10004
                           Fax No. (212) 346-3594
                           Attention: Special Executions

                                       15
<PAGE>

          with a copy to:

                           Davis Polk & Wardwell
                           450 Lexington Avenue
                           New York, NY 10017
                           Fax No. (212) 450-3800
                           Attention: Winthrop B. Conrad, Jr.

                    (3)  if to the Company, at its address as follows:

                           Chesapeake Corporation
                           James Center II
                           1021 East Cary Street
                           P.O. Box 2350
                           Richmond, VA 23218-2350
                           Fax No. (804) 697-1199
                           Attention: General Counsel

          with a copy to:

                           Hunton & Williams
                           Riverfront Plaza--East Tower
                           951 E. Byrd Street
                           Richmond, VA 23219-4074
                           Fax No. (804) 788-8218
                           Attention: Gary E. Thompson

          All such notices and communications shall be deemed to have been duly
     given: at the time delivered by hand, if personally delivered; three
     business days after being deposited in the mail, postage prepaid, if
     mailed; when receipt is acknowledged by recipient's facsimile machine
     operator, if sent by facsimile transmission; and on the day delivered, if
     sent by overnight air courier guaranteeing next day delivery.

     (e) Third Party Beneficiaries.  The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder.

     (f)  Successors and Assigns.  This Agreement shall be binding upon the
Company and its successors and assigns.

     (g)  Counterparts.  This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

     (h)  Headings.  The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (i)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.

                                       16
<PAGE>

     (j)  Severability.  If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

     (k)  Securities Held by the Company.  Whenever the consent or approval of
Holders of a specified percentage of principal amount of Securities is required
hereunder, Securities held by the Company or its affiliates (other than
subsequent Holders of Securities if such subsequent Holders are deemed to be
affiliates solely by reason of their holdings of such Securities) shall not be
counted in determining whether such consent or approval was given by the Holders
of such required percentage.

                                       17
<PAGE>

     If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement among
the several Initial Purchasers and the Company in accordance with its terms.

                                    Very truly yours,

                                    CHESAPEAKE CORPORATION

                                    By:  /s/ William T. Tolley
                                        ----------------------------------------
                                        Name:  William T. Tolley
                                        Title: Senior Vice President--Finance &
                                               Chief Financial Officer

The foregoing Registration
Rights Agreement is hereby confirmed
and accepted as of the date first
above written.

CREDIT SUISSE FIRST BOSTON (EUROPE) LIMITED
GOLDMAN SACHS INTERNATIONAL
FIRST UNION SECURITIES, INC.
BANC OF AMERICA SECURITIES LIMITED

By: CREDIT SUISSE FIRST BOSTON (EUROPE) LIMITED

By: /s/ James Amine
   --------------------------------------
   Name: James Amine
   Title: Managing Director

By: /s/ Steven Rattner
   --------------------------------------
   Name: Steven Rattner
   Title: Managing Director

                                       19
<PAGE>

                                                                         ANNEX A

     Each broker-dealer that receives exchange securities for its own account
pursuant to the exchange offer must acknowledge that it will deliver a
prospectus in connection with any resale of such exchange securities.  The
Letter of Transmittal states that by so acknowledging and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.  This prospectus, as it
may be amended or supplemented from time to time, may be used by a broker-dealer
in connection with resales of exchange securities received in exchange for
initial securities where such initial securities were acquired by such broker-
dealer as a result of market-making activities or other trading activities.  We
have agreed that, for a period of 180 days after the expiration date (as defined
herein), we will make this prospectus available to any broker-dealer for use in
connection with any such resale.  See "Plan of Distribution."

                                       20
<PAGE>

                                                                         ANNEX B

     Each broker-dealer that receives exchange securities for its own account in
exchange for initial securities, where such initial securities were acquired by
such broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such exchange securities.  See "Plan of Distribution."

                                       21
<PAGE>

                                                                         ANNEX C

                             PLAN OF DISTRIBUTION

     Each broker-dealer that receives exchange securities for its own account
pursuant to the exchange offer must acknowledge that it will deliver a
prospectus in connection with any resale of such exchange securities.  This
prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of exchange securities received in
exchange for initial securities where such initial securities were acquired as a
result of market-making activities or other trading activities. We have agreed
that, for a period of 180 days after the expiration date, we will make this
prospectus, as amended or supplemented, available to any broker-dealer for use
in connection with any such resale.  In addition, until                   ,
200_,  all dealers effecting transactions in the exchange securities may be
required to deliver a prospectus./(1)/

     We will not receive any proceeds from any sale of exchange securities by
broker-dealers.  Exchange securities received by broker-dealers for their own
account pursuant to the exchange offer may be sold from time to time in one or
more transactions in the over-the-counter market, in negotiated transactions,
through the writing of options on the exchange securities or a combination of
such methods of resale, at market prices prevailing at the time of resale, at
prices related to such prevailing market prices or negotiated prices.  Any such
resale may be made directly to purchasers or to or through brokers or dealers
who may receive compensation in the form of commissions or concessions from any
such broker-dealer or the purchasers of any such exchange securities.  Any
broker-dealer that resells exchange securities that were received by it for its
own account pursuant to the exchange offer and any broker or dealer that
participates in a distribution of such exchange securities may be deemed to be
an "underwriter" within the meaning of the Securities Act and any profit on any
such resale of exchange securities and any commission or concessions received by
any such persons may be deemed to be underwriting compensation under the
Securities Act.  The letter of transmittal states that, by acknowledging that it
will deliver and by delivering a prospectus, a broker-dealer will not be deemed
to admit that it is an "underwriter" within the meaning of the Securities Act.

     For a period of 180 days after the expiration date we will promptly send
additional copies of this Prospectus and any amendment or supplement to this
prospectus to any broker-dealer that requests such documents in the letter of
transmittal.  We have agreed to pay all expenses incident to the exchange offer
(including the expenses of one counsel for the holders of the securities) other
than commissions or concessions of any brokers or dealers and will indemnify the
holders of the securities (including any broker-dealers) against certain
liabilities, including liabilities under the Securities Act.

________________
/(1)/  In addition, the legend required by Item 502(e) of Regulation S-K will
appear on the back cover page of the Exchange Offer prospectus.

                                       22
<PAGE>

                                                                         ANNEX D

[ ]  CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

      Name:    _______________________
      Address: _______________________

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities.  If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                                       23<PAGE>

                                                                    EXHIBIT 10.4

                          LOAN AND SECURITY AGREEMENT

                         DATED AS OF OCTOBER 30, 2001

                                 BY AND AMONG

               SALESLINK CORPORATION, INSOLUTIONS INCORPORATED,
                   ON-DEMAND SOLUTIONS, INC., PACIFIC DIRECT
       MARKETING CORP. AND SALESLINK MEXICO HOLDING CORP., AS BORROWERS,

                                  THE LENDERS

                                      AND

                      LASALLE BANK NATIONAL ASSOCIATION,
                           AS AGENT FOR THE LENDERS

<PAGE>

                               TABLE OF CONTENTS
                               -----------------
<TABLE>
<CAPTION>

<S>         <C>                                                                  <C>
       1.   DEFINITIONS AND INTERPRETATIONS....................................   1
       1.1  Definitions........................................................   1
       1.2  Accounting Terms...................................................  19
       1.3  Other Terms........................................................  19
       1.4  Interpretation.....................................................  19
       1.5  Multiple Borrowers.................................................  20

       2.   LOANS; GENERAL TERMS...............................................  20
       2.1  Credit Facilities..................................................  21
       2.2  Evidence of Debt...................................................  21
       2.3  Loan Accounts; Amount and Maintenance of Loans; Interest Rate Not
             Determined........................................................  21
       2.4  Interest Rate......................................................  22
       2.5  Borrowing Procedures...............................................  23
       2.6  General Provisions.................................................  24
       2.7  Conversion Options; Continuance....................................  24
       2.8  Requirements of Law................................................  25
       2.9  Illegality.........................................................  27
       2.10 Indemnity..........................................................  27
       2.11 Conditions Precedent...............................................  27
       2.12 Fees...............................................................  30
       2.13 Letters of Credit..................................................  30

       3.   PAYMENTS...........................................................  35
       3.1  Making of Payments.................................................  35
       3.2  Payment Terms......................................................  36
       3.3  Lockbox; Collection of Accounts and Payments.......................  37
       3.4  Application of Payments and Collections............................  38
       3.5  Records............................................................  38

       4.   COLLATERAL; GENERAL TERMS..........................................  38
       4.1  Security Interest..................................................  38
       4.2  Disclosure of Security Interest....................................  39
       4.3  Special Collateral.................................................  39
       4.4  Further Assurances.................................................  39
       4.5  Inspection.........................................................  40
       4.6  Location of Collateral.............................................  40
       4.7  Agent's Payment of Claims Asserted Against Borrowers...............  40
       4.8  Letter of Credit Rights............................................  40
       4.9  Commercial Tort Claims.............................................  41
       4.10 Electronic Chattel Paper and Transferable Records..................  41
</TABLE>

                                       1
<PAGE>

<TABLE>
<CAPTION>
<S>         <C>                                                                <C>
       5.   COLLATERAL; ACCOUNTS AND COLLATERAL MAINTENANCE....................  41
       5.1  Verification of Accounts and Inventory.............................  41
       5.2  Assignments, Records and Accounts and Inventory Report.............  41
       5.3  Notice Regarding Disputed Accounts.................................  41
       5.4  Sale or Encumbrance of Accounts....................................  42
       5.5  Equipment..........................................................  42
       5.6  Notice of Loss; Prohibition on Sale or Disposition.................  42
       5.7  Compliance with Buy Back Agreements................................  42

       6.   WARRANTIES AND REPRESENTATIONS.....................................  42
       6.1  General Warranties and Representations.............................  42
       6.2  Account Warranties and Representations.............................  46
       6.3  Automatic Warranty and Representations and Reaffirmation of
             Warranties and Representations....................................  47
       6.4  Survival of Warranties and Representations.........................  47

       7.   COVENANTS AND CONTINUING AGREEMENTS................................  47
       7.1  Financial Covenants................................................  47
       7.2  Affirmative Covenants..............................................  48
       7.3  Negative Covenants.................................................  51
       7.4  Contesting Charges.................................................  53
       7.5  Payment of Charges.................................................  53
       7.6  Insurance; Payment of Premiums.....................................  54
       7.7  Survival of Obligations Upon Termination of Agreement..............  54

       8.   EVENTS OF DEFAULT; RIGHTS OF REMEDIES..............................  55
       8.1  Event of Default...................................................  55
       8.2  Effect of Event of Default.........................................  57
       8.3  Remedies...........................................................  57
       8.4  Notice.............................................................  58
       8.5  Default Interest Rate..............................................  58
       8.6  Preservation of Rights.............................................  58
       8.7  Distributions......................................................  59
       8.8  Method of Adjustment...............................................  59

       9.   AGENT..............................................................  60
       9.1  Appointment and Authorization......................................  60
       9.2  Delegation of Duties...............................................  60
       9.3  Liability of Agent.................................................  60
       9.4  Reliance by Agents.................................................  61
       9.5  Notice of Default..................................................  61
       9.6  Credit Decision....................................................  61
       9.7  Indemnification....................................................  62
       9.8  Agent in Individual Capacity.......................................  63
       9.9  Successor Agent....................................................  63
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
<S>         <C>                                                                 <C>
     10.    MISCELLANEOUS.....................................................   63
     10.1   Appointment of Agent as Each Borrower's Lawful Attorney-In-Fact...   63
     10.2   Modification of Agreement; Sale of Interest.......................   64
     10.3   Attorneys' Fees and Expenses; Agent and Each Lender's
              Out-of-Pocket Expenses..........................................   65
     10.4   No Offset; Right to Charge Accounts...............................   66
     10.5   Severability......................................................   66
     10.6   Parties; Entire Agreement.........................................   66
     10.7   Conflict of Terms.................................................   67
     10.8   Waiver by Borrowers...............................................   67
     10.9   Waiver and Governing Law..........................................   67
     10.10  Notice............................................................   68
     10.11  Section Titles, Etc...............................................   69
     10.12  Mutilated, Destroyed, Lost and Stolen Notes.......................   69

     11.    CROSS-GUARANTY....................................................   70
     11.1   Cross-Guaranty....................................................   70
     11.2   Waivers by Borrowers..............................................   70
     11.3   Benefit of Guaranty...............................................   71
     11.4   Subordination of Subrogation, Etc.................................   71
     11.5   Election of Remedies..............................................   71
     11.6   Limitation........................................................   72
     11.7   Contribution with Respect to Guaranty Obligations.................   72
     11.8   Liability Cumulative..............................................   72
</TABLE>

                                       3
<PAGE>

                          LOAN AND SECURITY AGREEMENT
                          ---------------------------

          THIS LOAN AND SECURITY AGREEMENT (this "AGREEMENT") is made as of the
30th day of October, 2001 by and among SALESLINK CORPORATION, a Delaware
corporation, INSOLUTIONS INCORPORATED, a Delaware corporation, ON-DEMAND
SOLUTIONS, INC., a Massachusetts corporation, PACIFIC DIRECT MARKETING CORP., a
California corporation, SALESLINK MEXICO HOLDING CORP., a Delaware corporation
(each herein called a "BORROWER" and collectively, the "BORROWERS"), the lenders
party hereto (herein collectively called the "LENDERS" and each individually
called a "LENDER") and LASALLE BANK NATIONAL ASSOCIATION, as a Lender and as
Agent for the Lenders.

          WHEREAS, Borrowers desire to borrow funds and obtain other financial
accommodations from Lenders, and Lenders are willing to make certain loans and
provide other financial accommodations to Borrowers upon the terms and
conditions set forth in this Agreement;

          NOW, THEREFORE, in consideration of the terms and conditions contained
herein, and of any loans or extension of credit previously, now or to be made to
or for the benefit of Borrowers by Lenders, the parties agree as follows:

     1.   DEFINITIONS AND INTERPRETATIONS.
          -------------------------------

     1.1  DEFINITIONS.  When used in this Agreement, the following terms shall
have the following meanings:

          "ACCOUNTS" shall mean all accounts (including without limitation all
     right to payment for services rendered or goods sold or leased), contract
     rights, leases, chattel paper, instruments, life insurance policies, notes
     and documents, whether now owned or to be acquired by any Borrower.

          "ACCOUNT DEBTOR" shall mean any Person who is or who may become
     obligated to any Borrower under, with respect to, or on account of an
     Account.

          "ACCOUNTS AND INVENTORY REPORT" shall mean a report delivered to Agent
     by Borrowers, in accordance with Section 7.2(C)(vi), consisting of (i) a
     trial balance of all Accounts existing as of the last day of the month
     preceding the date of such Accounts and Inventory Report, specifying for
     each Account Debtor obligated on the Accounts, such Account Debtor's name
     and outstanding balance, (ii) an aging of such Accounts, (iii) a list of
     all billings booked in advance as of such day, (iv) an inventory listing,
     and (v) any other information reasonably required herein.

                                       4
<PAGE>

          "AFFILIATE" shall mean any and all Persons which, in the reasonable
     judgment of Agent, directly or indirectly, own or control, are controlled
     by or are under common control with a Borrower, and any and all Persons
     from whom, in the reasonable judgment of Agent, a Borrower has not or is
     not likely to exhibit independence of decision or action.  For the purpose
     of this definition and where otherwise applicable herein, "CONTROL" means
     the possession, directly or indirectly, of the power to direct or cause the
     direction of management and policies of a Person, whether through the
     ownership of voting securities, by contract or otherwise.  For purposes of
     this Agreement, no Borrower shall be deemed to be an Affiliate of any other
     Borrower.

          "AGENT" shall mean LaSalle in its capacity as administrative,
     collateral and documentation agent for all of the Lenders and not in its
     individual capacity, and its successor appointed pursuant to Section 9.9.

          "AGENT-RELATED PERSONS" shall mean Agent and any successor agent
     arising under Section 9.9, together with their respective Affiliates and
     the officers, directors, employees, agents and attorneys-in-fact of such
     Persons and Affiliates.

          "AGGREGATE REVOLVING CREDIT COMMITMENT" shall mean the combined
     Revolving Credit Commitments of the Lenders, which shall initially be in
     the amount of $13,000,000, as such amount may be reduced from time to time
     pursuant to this Agreement.

          "AGGREGATE TERM LOAN COMMITMENT" shall mean the combined Term Loan
     Commitments of the Lenders, which shall initially be in the amount of
     $12,000,000, as such amounts may be reduced from time to time pursuant to
     this Agreement.

          "ALLOCABLE AMOUNT" shall have the meaning ascribed to it in Section
     11.7.

          "AMORTIZATION COMMENCEMENT DATE" shall mean the earlier of (i) the
     date on which the Aggregate Term Loan Commitment has been loaned to
     Borrowers in its entirety or (ii) October 30, 2002.

          "ANCILLARY AGREEMENTS" shall mean all Security Documents and all
     agreements, instruments and documents, including without limitation, notes,
     guaranties, mortgages, deeds of trust, chattel mortgages, pledges, powers
     of attorney, consents, assignments, contracts, notices, security
     agreements, leases, financing statements, environmental indemnity
     agreement, subordination agreements, trust account agreements and all other
     written matter whether previously, now, or to be executed by or on behalf
     of a Borrower or any other Person or delivered to Agent or any Lender with
     respect to this Agreement.

                                       5
<PAGE>

          "APPLICABLE MARGIN" shall mean (i) with respect to the Revolving
     Credit Facility, the percentage interest rate per annum, based upon the
     Senior Leverage Ratio set forth in the most recent Compliance Certificate,
     as indicated in the following chart:

            SENIOR LEVERAGE RATIO                        PERCENTAGE RATE
          -------------------------                      ---------------
          Less than 0.50:1.00                            1.25%
          Greater than or equal to
          0.50:1.00, but less than                       1.50%
          0.75:1.00
          Greater than or equal to
          0.75:1.00, but less than                       1.75%
          1.00:1.00
          Greater than or equal to
          1.00:1.00                                      2.00%

          and (ii) with respect to the Term Loan, the percentage interest rate
     per annum, based upon the Senior Leverage Ratio set forth in the most
     recent Compliance Certificate, as indicated in the following chart:

            SENIOR LEVERAGE RATIO                        PERCENTAGE RATE
          -------------------------                      ---------------
          Less than 0.50:1.00                            1.75%
          Greater than or equal to
          0.50:1.00, but less than                       2.00%
          0.75:1.00
          Greater than or equal to
          0.75:1.00, but less than                       2.25%
          1.00:1.00
          Greater than or equal to 1.00:1.00             2.50%

          "AVAILABILITY" shall mean at any time, the lesser of (i) the Aggregate
     Revolving Credit Commitment and (ii) the Borrowing Base, as determined on
     the basis of the most recent Borrowing Base Certificate.

        "BORROWING BASE" shall have the meaning ascribed to it in Section 2.1.

        "BORROWING BASE CERTIFICATE" shall have the meaning ascribed to it in
     Section 7.2(C)(v).

          "BUSINESS DAY" shall mean any day that is not a Saturday, Sunday or
     other day on which (i) commercial banks in the State of Illinois or the
     Commonwealth of Massachusetts or (ii) the New York Stock Exchange, are
     required or authorized by law to remain closed; provided that, when used in
     connection with a LIBOR Loan, the term

                                       6
<PAGE>

     "Business Day" shall also exclude any day on which banks are not open for
     dealings in Dollars in the London interbank market.

          "BUY BACK AGREEMENT" shall mean an agreement between a Borrower(s) and
     a customer of such Borrower pursuant to which such customer agrees to
     purchase from such Borrower any Inventory that is in excess of such
     Borrower's then current requirements or which is obsolete, at a price that
     is not less than 100% of the original purchase price of such Inventory.

          "CASH FLOW LEVERAGE RATIO" shall mean as of any day the ratio of the
     then current amount of the consolidated Liabilities (excluding any
     Subordinated Debt) to consolidated EBITDA as of the end of the most recent
     fiscal quarter of Borrowers multiplied by four.

          "CAPITAL EXPENDITURES"  shall mean for any period, the sum of all
     expenditures during that period that are or are to be included in
     "additions to property, plant or equipment" or a comparable item in the
     statement of cash flows of each Borrower, net of the amount of any
     reimbursement payments made to any Borrower by any third party in
     connection with any such expenditures.

          "CAPITALIZED LEASE OBLIGATIONS" shall mean for any period the amounts
     payable with respect to leases of tangible or intangible property of any
     character, however denoted, which is required by generally accepted
     accounting principles to be reflected as a liability on the face of the
     balance sheet.

          "CHARGES" shall mean all national, federal, state, county, city,
     municipal, or other governmental (including, without limitation, the
     Pension Benefit Guaranty Corporation) taxes, levies, assessments, charges,
     Liens, claims or encumbrances upon or relating to (i) the Collateral, (ii)
     the Liabilities, (iii) Borrowers' employees, payroll, income or gross
     receipts, (iv) Borrowers' ownership or use of any of its assets, or (v) any
     other aspect of Borrowers' respective businesses.

          "CLOSING" shall have the meaning ascribed to it in Section 2.11(A).

          "COLLATERAL" shall mean all of the Property and interests in Property
     described in Section 4.1 and all other Property and interests in Property
     which shall, from time to time, secure any part of the Liabilities.

        "COMMERCIAL TORT CLAIMS" shall mean commercial tort claims of any
     Borrower, including those specifically identified on Schedule T to this
     Agreement, as it may be amended from time to time.

        "COMMITMENT" means, for each Lender, the sum of its Revolving Loan
     Commitment and Term Loan Commitment.

                                       7
<PAGE>

        "COMPLIANCE CERTIFICATE" shall have the meaning ascribed to it in
     Section 2.11(A)(x).

          "DEBT SERVICE" shall mean, with reference to any period, the sum
     (without duplication) of (i) the aggregate amount of payments required to
     be made by Borrowers and their respective Subsidiaries during such period
     in respect of principal on all Indebtedness for Borrowed Money (whether at
     maturity, as a result of mandatory sinking fund redemption, mandatory
     prepayment, acceleration or otherwise), plus (ii) all Interest Expense paid
     in cash for such period determined in accordance with generally accepted
     accounting principles.

          "DEBT SERVICE COVERAGE RATIO" shall mean as at any date of measurement
     thereof, the ratio of consolidated EBITDA for the period of the most
     recently ended four consecutive quarters of Borrowers prior to such date
     minus any decreases in Working Capital for such period plus any increase in
     Working Capital for such period minus Capital Expenditures not financed
     with the proceeds of Long Term Debt for such period minus any dividends or
     distributions made by SalesLink to its shareholders for such period minus
     any Taxes due for such period to Debt Service with respect to the period
     commencing on the first day of Borrowers' fiscal year in which such day
     occurs and ending on such day.

          "DEFAULT" shall mean any event or condition which, with the passage of
     time or the giving of notice or both, would constitute an Event of Default.

          "DOLLARS" and the symbol "$" shall mean the lawful currency of the
     United States of America.

          "EBITDA" shall mean with reference to any period (i) consolidated net
     income (or net deficit) of Borrowers and their respective Subsidiaries for
     such period as computed in accordance with generally accepted accounting
     principles consistently applied, plus (ii) (a) Interest Expense without
     duplication, Interest Expense shall not include interest that is paid in
     kind for such period, (b) all amounts deducted in arriving at such net
     income (net deficit) in respect of federal, state and local income taxes
     for such period and (c) all amounts properly charged for depreciation of
     fixed assets and amortization of intangible assets during such period on
     the books of such Persons.

          "ELIGIBLE COLLATERAL LOCATION" shall mean the locations identified on
     Exhibit G attached hereto, together with such other locations as to which
     Agent may, from time to time, agree, subject to Section 4.6 and such
     reasonable conditions as Agent may determine appropriate, including the
     execution and filing of appropriate financing statements and the obtaining
     of any lien waivers from any bailee, warehouseman, landlord, mortgagee or
     similarly situated Person who may have a Lien in or upon any Inventory at
     such location.

                                       8
<PAGE>

          "ELIGIBLE INVENTORY" means the aggregate amount of all Inventory
     (including raw materials) of Borrowers and their Subsidiaries that is
     subject to a Buy Back Agreement, valued on the first-in, first-out method
     of inventory valuation, less any inventory:

              (i) which is damaged, or not of merchantable quality, or has any
          defects that would affect the market value of such inventory; or

              (ii) which is located in Minnesota or New Jersey, unless a
          Borrower has qualified to do business in such State and has filed
          appropriate notices of business activities reports (or other
          appropriate filings) with the appropriate state authorities for the
          then current year; or

              (iii)  which is consigned, in transit or the subject of a bill in
          lading or other title document; or

              (iv) which is not located at an Eligible Collateral Location; or

              (v) which Agent in its reasonable discretion determines not to
          treat as Eligible Inventory, including without limitation due to age,
          type, category or quantity (Agent shall notify Borrowers of any such
          determination within a reasonable time after it has been made); or

              (vi) which fails to meet or violates any warranty, representation
          or covenant contained in this Agreement or any related document or
          instrument relating to such Inventory; or

              (vii) which is subject to any Lien or security interest except in
          favor of Agent; or

              (viii) which is produced in violation of the Fair Labor Standards
          Act or is packaging or shipping material or general supplies; or

              (ix) which is not in good condition or does not meet in all
          material respects all material standards imposed by any Person having
          regulatory authority over such goods or their use and/or sale, is
          damaged or slow moving, is not currently saleable in the normal course
          of business or is saleable but requires repairs, repackaging or other
          cost and expense (other than normal and customary stocking costs).

          Borrowers agree that work in process inventory shall not be included
     in Eligible Inventory.  Notwithstanding anything to the contrary herein, no
     Inventory owned by any Borrower or Subsidiary located outside of the United
     States shall be Eligible Inventory until such time as Agent shall have
     received evidence satisfactory to it, in its reasonable discretion, of the
     creation, perfection and the relative priority of a security interest in

                                       9
<PAGE>

     such Inventory in favor of Agent including an opinion of counsel to that
     effect acceptable to Agent in its reasonable discretion.

          "ELIGIBLE RECEIVABLES" means the aggregate amount of all accounts of
     each Borrower and its Subsidiaries arising in the ordinary course of such
     Borrower's or Subsidiary's business as presently conducted, valued at the
     lowest of invoice (adjusted for credits, returns or the like), book value
     or the amount reasonably expected by such Borrower or Subsidiary to be
     collected from the particular Account Debtor(s), less any accounts and
     related amounts:

              (i) which remain fully or partially unpaid for more than 90 days
          after their respective invoice dates; or

              (ii) which are not due and payable in full in accordance with such
          Borrower's credit and collection policy as disclosed by such Borrower
          to Agent; provided, however, that regardless of the terms of such
          credit and collection policy, no Eligible Receivable shall have a
          payment term which is greater than forty-five (45) days from the date
          of its related invoice; or

              (iii) which are owed by a particular Account Debtor if fifty
          percent (50%) or more of the balance owing by such Account Debtor has
          not been paid within 90 days of the invoice date; or

              (iv) with respect to which the Account Debtor is another Borrower
          or is a partner, shareholder, director, officer, employee, or agent of
          any such Borrower or is a Subsidiary or other Affiliate, except with
          respect to uBid, Inc.; or

              (v) with respect to which payment by the Account Debtor is or may
          be conditional, and accounts commonly known as "bill and hold" or
          accounts with a similar or like arrangement; or

              (vi) with respect to which the Account Debtor is not a resident or
          citizen of or otherwise located in the United States of America, or
          with respect to which the Account Debtor is not subject to service of
          process in the United States of America, unless such Borrower has
          furnished Agent with a letter of credit or account receivable
          insurance in at least the amount of the account acceptable as to form,
          substance and issuer to Agent in its sole discretion; or

              (vii) with respect to which the Account Debtor is the United
          States of America or any department, agency or instrumentality
          thereof, unless all necessary steps are taken to comply with the
          Assignment of Claims Act of 1940, as amended, and all other necessary
          steps to perfect Agent's security interest in such account have been
          completed to Agent's satisfaction; or

                                       10
<PAGE>

              (viii) with respect to which such Borrower is or may become liable
          to the Account Debtor for goods sold or services rendered by such
          Account Debtor to Borrower; or

              (ix) with respect to which the goods giving rise thereto have not
          been shipped and delivered to and accepted as satisfactory by the
          Account Debtor thereof or with respect to which the services performed
          giving rise thereto have not been completed and accepted as
          satisfactory by the Account Debtor; or

              (x) arising from a "sale on approval" or "sale or return"; or

              (xi) which are subject to any Lien or security interest except in
          favor of Agent, or are "bonded" or similar accounts; or

              (xii) which are owed by an Account Debtor which has a dispute with
          such Borrower, or as to which any adverse claim, dispute or litigation
          relates (including without limitation any claim that any amounts are
          not owed to such Borrower), but only in the amount of such adverse
          claim, dispute or litigation; or

              (xiii) which are owed by an Account Debtor which is located in
          Minnesota or New Jersey, unless such Borrower has qualified to do
          business in such State and has filed appropriate notices of business
          activities reports (or other appropriate filings) with the appropriate
          state authorities for the then current year; or

              (xiv) which are owed by an Account Debtor which (a) has filed a
          petition or (b) is subject to an involuntary petition under any
          section or chapter of the United States Bankruptcy Code or any similar
          law or regulation or has made a general assignment for the benefit of
          its creditors; or

              (xv) which fails to meet or violates any warranty, representation
          or covenant contained in this Agreement or any related document or
          instrument relating directly to Accounts; or

              (xvi) which the Agent deems, in its reasonable discretion, to be
          doubtful in their collection.

          Notwithstanding anything to the contrary herein, no Accounts which are
     owed to any Subsidiary that is not a resident of the United States shall be
     Eligible Receivables until such time as Agent shall have received evidence
     satisfactory to it, in its reasonable discretion, of the creation,
     perfection and the relative priority of a security interest in such
     Accounts in favor of Agent including an opinion of counsel to that effect
     acceptable to Agent in its reasonable discretion.

                                       11
<PAGE>

          "ENVIRONMENTAL LAWS" means all applicable federal, state or local
     statutes, laws, ordinances, codes, rules, regulations and guidelines
     (including consent decrees and administrative orders) relating to public
     health and safety and protection of the environment.

          "EQUIPMENT" shall mean all of Borrowers' and their respective
     Subsidiaries' now owned and to be acquired equipment and fixtures,
     including without limitation, furniture, machinery, vehicles and trade
     fixtures, together with any and all accessories, parts, appurtenances,
     substitutions and replacements.

          "ERISA" shall mean the Employee Retirement Income Security Act of
     1974, as amended.

          "EVENT OF DEFAULT" shall mean the occurrence or existence of any one
     or more of the events described in Section 8.1.

          "FINANCIALS" shall mean those financial statements of Borrowers and
     their respective Subsidiaries described on Exhibit A or delivered to Agent
     pursuant to Section 7.2(C).

          "GENERAL INTANGIBLES" shall mean all contract rights, choses in
     action, general intangibles, causes of action and all other intangible
     personal property of Borrowers and their respective Subsidiaries of every
     kind and nature (other than Accounts) now owned or to be acquired by
     Borrowers and their respective Subsidiaries.  Without in any way limiting
     the generality of the foregoing, General Intangibles specifically includes,
     without limitation, all corporate or other business records, deposit
     accounts, inventions, designs, patents, patent applications, trademarks,
     trademark applications, service marks, service mark applications, trade
     names, trade secrets, goodwill, copyrights, registrations, licenses,
     leasehold interests, franchises and tax refund claims owned by a Borrower
     or its Subsidiaries and all letters of credit, banker's acceptances,
     guarantee claims, security interests or other security held by or granted
     to a Borrower or its Subsidiaries to secure payment by an Account Debtor of
     any Accounts, letter of credit rights, payment intangibles, supporting
     obligations, Commercial Tort Claims, software and such other assets as
     Agent determines to be intangible in its sole and absolute discretion.

          "GUARANTOR PAYMENT" shall have the meaning ascribed to it in Section
     11.7.

          "INDEBTEDNESS" shall mean all of Borrowers' or their respective
     Subsidiaries' liabilities, obligations and indebtedness to all Persons of
     any and every kind and nature, whether primary, secondary, direct,
     indirect, absolute, contingent, fixed, or otherwise, previously, now or to
     be owing, due, or payable, however evidenced, created, incurred, acquired
     or owing and however arising, whether under written or oral agreement, by
     operation of law, or otherwise.  Without in any way limiting the generality
     of the foregoing, Indebtedness specifically includes (i) the Liabilities,
     (ii) all obligations or liabilities of any Person that are secured by any
     Lien, claim, encumbrance, or security

                                       12
<PAGE>

     interest upon property owned by a Borrower or a Subsidiary, even though
     such Borrower or such Subsidiary has not assumed or become liable for the
     payment thereof, (iii) all obligations or liabilities created or arising
     under any lease of real or personal property (including Capitalized Lease
     Obligations, but excluding operating leases), or conditional sale or other
     title retention agreement with respect to property used or acquired by a
     Borrower or a Subsidiary, even though the rights and remedies of the
     lessor, seller or lender, thereunder are limited to repossession of such
     property, (iv) all unfunded pension fund obligations and liabilities and
     (v) deferred Taxes.

          "INDEBTEDNESS FOR BORROWED MONEY" shall mean for any Person (without
     duplication) (i) all Indebtedness created, assumed or incurred in any
     manner by such Person representing money borrowed (including but not
     limited to the issuance of debt securities), (ii) all Indebtedness for the
     deferred purchase price of property or services (other than trade accounts
     payable arising in the ordinary course of business which are not more than
     sixty (60) days past due), (iii) all Indebtedness secured by any Lien upon
     property of such Person, whether or not such Person has assumed or become
     liable for the payment of such indebtedness, (iv) all Capitalized Lease
     Obligations of such Person and (v) all obligations of such Person on or
     with respect to letters of credit, bankers' acceptances and other
     extensions of credit whether or not representing obligations for borrowed
     money.

          "INDEBTEDNESS TO TANGIBLE NET WORTH RATIO" shall mean as of any day
     the ratio of consolidated Indebtedness to consolidated Tangible Net Worth.

          "INDEMNIFIED LIABILITIES" shall have the meaning ascribed to it in
     Section 9.7.

          "INTEREST EXPENSE" shall mean for any period the sum of all interest
     charges on Indebtedness (including imputed interest charges with respect to
     Capitalized Lease Obligations and all amortization of debt discount and
     expense) of Borrowers and their respective Subsidiaries for such period
     determined in accordance with generally accepted accounting principles.

          "INTEREST PAYMENT DATE" shall mean: (i) (a) with respect to any Prime
     Rate Loan, the first Business Day of each calendar month and the date of
     any conversion of such Prime Rate Loan into a LIBOR Loan and (b) with
     respect to any LIBOR Loan, the last day of the applicable Interest Period;
     provided, however, that for any LIBOR Loan having an Interest Period longer
     than three months, accrued interest shall also be payable on the last day
     of each three-month interval during such Interest Period; and (ii) for
     Prime Rate Loans and LIBOR Loans accrued interest shall be payable upon (a)
     the Revolving Credit Termination Date and the Term Loan Maturity Date, as
     applicable and (b) the date on which each such Loan is paid in full or
     otherwise satisfied.

          "INTEREST PERIOD" shall mean with respect to any LIBOR Loan (a)
     initially, the period commencing on the initial date of borrowing as set
     forth in the Notice of Borrowing or the conversion date, as the case may
     be, with respect to such LIBOR Loan

                                       13
<PAGE>

     and ending one, two, three or six months thereafter, as selected by
     Borrowers in the Notice of Borrowing or Notice of Conversion, and (b)
     thereafter, each period commencing on and including the first day of the
     next Interest Period applicable to such LIBOR Loan and ending one, two,
     three, or six months thereafter, as selected by Borrowers in the Notice of
     Continuance described in Section 2.7(B); provided that the foregoing
     provisions relating to Interest Periods are subject to the following:

              (i) If any Interest Period would otherwise end on a day which is
          not a Business Day, that Interest Period shall be extended to the next
          succeeding Business Day except if the result of such extension would
          be for such Interest Period to end in another calendar month in which
          event such Interest Period shall end on the immediately preceding
          Business Day;

              (ii) any Interest Period of a LIBOR Loan made pursuant to the
          Revolving Credit Facility that would otherwise extend beyond the
          Revolving Credit Termination Date shall end on the Revolving Credit
          Termination Date ;

              (iii) if Borrowers fail to give notice of the length of the
          Interest Period it requests with respect to the LIBOR Loan, it shall
          be deemed to have selected a LIBOR Loan of one month; and

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

          "INTEREST RATE" shall mean the interest rate determined in accordance
     with Section 2.4.

          "INVENTORY" shall mean all goods, inventory, merchandise, finished
     goods, component goods, packaging materials and other personal property
     including, without limitation, goods in transit, wherever located and
     whether now owned or to be acquired by any Borrower or any Subsidiary which
     is or may at any time be held for sale or lease, furnished under any
     contract of service or held as raw materials, work in process, supplies or
     materials used or consumed in Borrowers' and their respective Subsidiaries'
     business, and all such property the sale or other disposition of which has
     given rise to Accounts and which has been returned to or repossessed or
     stopped in transit by a Borrower.

        "ISSUANCE REQUEST" shall have the meaning ascribed to it in Section
     2.13(D)

        "ISSUING LENDER" shall mean LaSalle in its capacity as issuer of any
     Letter of Credit.

        "LASALLE" shall mean LaSalle Bank National Association.

                                       14
<PAGE>

          "LETTER OF CREDIT" shall mean any letter of credit issued by the
     Issuing Lender for the account of a Borrower in accordance with Section
     2.13.

          "LETTER OF CREDIT EXPIRY DATE" shall mean, with respect to any Letter
     of Credit, the date which is the earlier of (i) one (1) year after the date
     of issuance thereof or (ii) five (5) Business Days prior to the Revolving
     Credit Termination Date.

          "LETTER OF CREDIT FEES" shall have the meaning ascribed to it in
     Section 2.13(F).

          "LETTER OF CREDIT OBLIGATIONS" shall mean, as at the time of
     determination thereof, the sum of (a) the Reimbursement Obligations then
     outstanding and (b) the aggregate then undrawn face amount of the then
     outstanding Letters of Credit.

          "LETTER OF CREDIT SUBLIMIT" shall mean an aggregate amount of
     $4,000,000.

          "LIABILITIES" shall mean all of Borrowers' and their respective
     Subsidiaries' liabilities, obligations and indebtedness to Agent or any
     Lender of any and every kind and nature, whether primary, secondary,
     direct, absolute, contingent, fixed, or otherwise (including, without
     limitation, interest, charges, expenses, attorneys' fees and other sums
     chargeable to a Borrower or its Subsidiaries by Agent or any Lender, future
     advances made to or for the benefit of a Borrower and obligations of
     performance), whether arising under this Agreement, under any of the
     Ancillary Agreements or acquired by Agent or any Lender from any other
     source, whether previously, now or to be owing, arising, due, or payable
     from a Borrower or its Subsidiaries to Agent or any Lender, however
     evidenced, created, incurred, acquired or owing and however arising,
     whether under written or oral agreement, operation of law, or otherwise.

        "LIBOR LOAN" shall mean any Loan (or portion thereof) bearing interest
     at the LIBOR Rate, as designated by Borrowers in a Notice of Borrowing,
     Notice of Conversion or Notice of Continuance.

          "LIBOR RATE" shall mean with respect to each Interest Period for any
     LIBOR Loan the rate of interest per annum equal to the quotient of (i) the
     rate of interest per annum (expressed as a whole number) at which deposits
     in Dollars in immediately available funds are offered to Agent at
     approximately 11:00 a.m. (London, England time) two Business Days prior to
     the beginning of such Interest Period in the London interbank eurodollar
     market for a period equal to such Interest Period and in a Dollar amount
     equal or comparable to the principal amount of such LIBOR Loan, divided by
     (ii) a number equal to 1.0 minus the daily average for the applicable
     Interest Period of the maximum rate (expressed as a decimal) at which
     reserves (including, without limitation, basic, supplemental, marginal and
     emergency reserves) are imposed during such Interest Period by the Board
     (or any successor) under Regulation D on "eurocurrency liabilities" as
     defined in such Board's Regulation D (or in respect of any other category
     of liabilities that includes deposits by reference to which the interest
     rate

                                       15
<PAGE>

     on the LIBOR Loans is determined by any category of extension of credit or
     other assets that includes loans by non-United States offices of any lender
     to United States residents) subject to any amendments of such reserve
     requirement by such Board or its successor, taking into account any
     transitional adjustments thereto (such LIBOR Rate to be adjusted to the
     next higher 1/16 of one percent). For purposes of this definition, the
     LIBOR Loans shall be deemed to be "eurocurrency liabilities" as defined in
     Regulation D.

          "LIEN" means any mortgage, pledge or lease of, security interest in or
     lien, charge, restriction or encumbrance on any Property of the Person
     involved in favor of or which secures any obligation to, any other Person.

          "LOAN" shall mean any advance made by Lenders to Borrowers under the
     Revolving Credit Facility or the Term Loan.

          "LONG TERM DEBT" shall mean any Indebtedness with a maturity of over
     one year from any date of determination.

          "NON-FUNDING LENDER" shall have the meaning ascribed to it in Section
     3.1(B).

          "NOTES" shall mean, collectively, each Revolving Credit Note and each
     Term Note to be executed and delivered by Borrowers to each Lender on the
     Closing and which are described in Section 2.2.

          "NOTICE OF BORROWING" shall mean a Notice of Borrowing described in
     Section 2.5.

          "NOTICE OF CONTINUANCE" shall mean a Notice of Continuance described
     in Section 2.7(B).

          "NOTICE OF CONVERSION" shall mean a Notice of Conversion described in
     Section 2.7(A).

          "PARENT INTERCREDITOR AGREEMENT" shall mean the Parent Intercreditor
     Agreement described in Section 2.11(A)(xxi).

          "PARTICIPANT" shall mean any Person, now or at any time or times to
     be, participating with any Lender in the Loans made by such Lender to
     Borrowers pursuant to this Agreement and the Ancillary Agreements.

          "PERCENTAGE" shall mean, as to any Lender, the percentage which such
     Lender's Revolving Credit Commitment plus such Lender's Term Loan
     Commitment is of the Aggregate Revolving Credit Commitments plus the
     Aggregate Term Loan Commitment, as reflected in the records of the Agent.
     If the Term Loan Commitments have terminated, such Lender's "Percentage" of
     the Term Loan Commitments shall be deemed to be the percentage which the
     aggregate amount of such Lender's outstanding

                                       16
<PAGE>

     Term Loans to Borrowers is of the aggregate amount of all of the Lenders'
     outstanding Term Loans to Borrowers. If the Revolving Credit Commitments
     have terminated, such Lender's "Percentage" of the Revolving Credit
     Commitments shall be deemed to be the percentage which the aggregate amount
     of such Lender's outstanding Revolving Credit Loans to Borrowers plus all
     Reimbursement Obligations of Borrowers to such Lender is of the aggregate
     amount of all of the Lenders' outstanding Revolving Credit Loans to
     Borrowers plus the aggregate amount of all Reimbursement Obligations of
     Borrowers to all of the Lenders.

          "PERMITTED ACQUISITION" shall mean an acquisition of certain assets of
     Software Logistics Corporation and/or Adatsa; provided, that (a) Borrowers
     shall give Agent ten (10) Business Days prior notice of the closing of such
     acquisition, (b) the Borrower or a Subsidiary is the acquiror, (c)
     provisions limiting any break-up fee payable by the Borrower or Subsidiary
     that is party thereto on account of a breach of the acquisition agreement
     (the "Acquisition Agreement") setting forth the terms and conditions of
     such acquisition by the Borrower or Subsidiary party thereto prior to
     closing of such acquisition to 5% of the gross consideration payable by the
     Borrower or Subsidiary party to the Acquisition Agreement, (d) the
     aggregate consideration (regardless of the form thereof) payable by the
     Borrower or Subsidiary party to the acquisition agreement for such
     acquisition does not exceed $8,000,000, (e) in the case of an acquisition
     through a Subsidiary, and such Subsidiary is a Person organized under the
     laws of any State of the United States such Subsidiary shall become a
     Borrower contemporaneous with the closing of such acquisition, (f) in the
     case of an acquisition through a Subsidiary and such Subsidiary is a Person
     not organized under the laws of any State of the United States, Borrowers
     shall cause the pledge of 66% of the outstanding capital stock to Agent,
     for its benefit and for the benefit of the Lenders and (g) the Borrower or
     Subsidiary party to the Acquisition Agreement shall cause the acquisition
     agreement to be collaterally assigned to Agent, for its benefit and the
     benefit of the Lenders, each in a form satisfactory to Agent.

          "PERMITTED DEBT" shall mean:
          --------------

               (i)  the Liabilities;

               (ii) current unsecured Indebtedness arising in the ordinary
          course of business of Borrowers and their respective Subsidiaries,
          including trade payables, utility costs, payroll and benefit
          obligations, accrued tax liabilities and other non-extraordinary
          accounts payable but excluding Indebtedness for Borrowed Money;

               (iii)  the Subordinated Debt;

               (iv) Indebtedness incurred by Borrowers to any Person at a time
          no Default or Event of Default exists constituting Capitalized Lease
          Obligations provided that the aggregate amount of rent owed during the
          term of such leases at

                                       17
<PAGE>

          any time does not exceed $300,000.00 per fiscal year (the "EQUIPMENT
          DEBT"); and

             (v) such other Indebtedness outstanding on the date hereof and
          described on EXHIBIT B-1 attached hereto.

          "PERMITTED LIENS" shall mean:
          -----------------

              (i) Liens and encumbrances in favor of Agent, whether granted
          under or established by this Agreement, the Ancillary Agreements, or
          otherwise;

              (ii) subject to Section 7.4, Liens for taxes, assessments or other
          governmental charges incurred by a Borrower or its Subsidiaries in the
          ordinary course of business and for which no interest, late charge or
          penalty is attaching or which are being contested in good faith by
          appropriate proceedings diligently pursued and for which adequate
          reserves in accordance with generally accepted accounting principles
          shall have been set aside on its books;

              (iii) Liens, not delinquent, incurred by a Borrower or its
          Subsidiaries in the ordinary course of business created by statute in
          connection with worker's compensation, unemployment insurance, social
          security, old age pensions (subject to the applicable provisions of
          this Agreement) and similar statutory obligations;

              (iv) Liens incurred by a Borrower or its Subsidiaries in favor of
          mechanics, materialmen, carriers, warehousemen, landlords or repairmen
          or other like statutory or common law Liens securing obligations
          incurred in good faith in the ordinary course of business that are not
          overdue for a period of more than 15 days or which are being contested
          in good faith;

              (v) Liens and encumbrances filed in favor of any lessor with
          respect to Equipment Debt;

              (vi) pledges and deposits to secure the performance of bids,
          tenders, trade contracts (other than for borrowed money), leases
          (other than capital leases), utility purchase obligations, statutory
          obligations, surety and appeal bonds, performance bonds and other
          obligations of a like nature incurred in the ordinary course of
          business;

              (vii) easements, rights-of-way, restrictions and other similar
          encumbrances incurred in the ordinary course of business and
          encumbrances consisting of zoning restrictions, easements, licenses,
          restrictions on the use of property or minor imperfections in title
          thereto which, in the aggregate, are not material in amount, and which
          do not, in the aggregate, materially detract from

                                       18
<PAGE>

          the value of the property of any Borrower or Subsidiary or materially
          interfere with the ordinary conduct of the business of any Borrower or
          Subsidiary; and

              (viii) any existing Liens and encumbrances identified in EXHIBIT
          B-2 hereto to secure Indebtedness outstanding as of the date hereof.

          "PERSON" shall mean any individual, sole proprietorship, partnership,
     joint venture, trust, limited liability company, unincorporated
     organization, association, corporation, institution, entity, party, or
     government (whether national, federal, state, county, city, municipal or
     otherwise, including, without limitation, any instrumentality, division,
     agency, body or department).

          "PRIME RATE" shall mean the rate per annum equal to the prime rate of
     interest announced by LaSalle from time to time as its "PRIME RATE."
     Changes in interest charged under this Agreement on Prime Rate Loans, shall
     take effect on the date of each change in the Prime Rate, without further
     notice from LaSalle.  The Prime Rate is not necessarily the lowest rate of
     interest charged by LaSalle in connection with extensions of credit.

          "PRIME RATE LOAN" shall mean any Loan (or portion thereof) bearing
     interest at the Prime Rate, as designated by Borrowers in the Notice of
     Borrowing, Notice of Conversion or Notice of Continuance.

          "PROPERTY" means any and all rights, titles and interests in and to
     any and all property whether real or personal, tangible (including cash) or
     intangible, and wherever situated and whether now owned or hereafter
     acquired.

          "REIMBURSEMENT AGREEMENT" shall mean a Master Letter of Credit
     Agreement substantially in the form of Exhibit Q hereto as such form may be
     amended by LaSalle from time to time and a letter of credit application and
     reimbursement agreement in such form as the Issuing Lender may from time to
     time employ in the ordinary course of business.

          "REIMBURSEMENT OBLIGATIONS" shall mean all amounts owed by any
     Borrower to the Issuing Lender or any other Lender (whether or not
     evidenced by any note or instrument), direct or indirect, absolute or
     contingent, due or to become due, now existing or hereafter arising,
     representing the principal of and interest on payments made by the Issuing
     Lender or any other Lender under or in connection with any Letter of
     Credit, including but not limited to, all unpaid drawings, fees, premiums,
     expenses, attorneys' fees, accountants' fees, capital adequacy charges,
     increased costs and similar costs and expenses owed or payable under this
     Agreement or any Letters of Credit, including but not limited to, the fees
     set forth in Section 2.13 hereof.

          "REPORTABLE EVENT" shall have the meaning ascribed to it in Section
     6.1(O).

                                       19
<PAGE>

          "REQUIRED LENDERS" shall mean Lenders (other than Non-Funding Lenders)
     having aggregate percentages of 66-2/3% or more, or if the Commitments have
     been terminated 66-2/3% the aggregate outstanding principal amount of the
     outstanding Loans and Reimbursement Obligations.

          "REVOLVING CREDIT COMMITMENT" shall have the meaning ascribed to it in
     Section 2.1.

          "REVOLVING CREDIT FACILITY" shall have the meaning ascribed to it in
     Section 2.1.

          "REVOLVING CREDIT TERMINATION DATE" shall mean October 30, 2004.

          "SALESLINK" shall mean SalesLink Corporation, a Delaware corporation.

          "SALESLINK MEXICO" shall mean SalesLink Mexico Holding Corp., a
     Delaware corporation.

          "SALESLINK MEXICO PLEDGE AGREEMENT" shall have the meaning ascribed to
     it in Section 2.11(A)(xx).

          "SALESLINK PLEDGE AGREEMENT" shall mean the SalesLink Pledge Agreement
     described in Section 2.11(A)(xix).

          "SECURITY DOCUMENTS" shall mean this Agreement and all other
     agreements, instruments, documents, financing statements, warehouse
     receipts, bills of lading, notices of assignment, schedules, assignments,
     mortgages and other written matter necessary or requested by Agent to
     create, perfect and maintain perfected Agent's security interest in the
     Collateral.

          "SENIOR LEVERAGE RATIO" shall mean as of any day the ratio of (i) the
     consolidated Liabilities plus consolidated Capitalized Lease Obligations
     which are not satisfactorily subordinated, in the reasonable opinion of
     Agent, to the Liabilities to (ii) consolidated EBITDA as of the end of the
     most recent fiscal quarter of Borrowers multiplied by four.

          "SOLVENT" shall mean with respect to any Person on a particular date,
     that on such date (a) the fair salable value of its property is greater
     than the fair present value of its liabilities (including for purposes of
     this definition all liabilities whether reflected on a balance sheet
     prepared or otherwise and whether direct or indirect, fixed or contingent,
     secured or unsecured, disputed or undisputed), (b) the present fair salable
     value of its assets is not less than the amount that will be required to
     pay the probable liability on its debts as they become absolute and
     matured; (c) such Person does not intend to, and does not believe that it
     will, incur debts or liabilities beyond such Person's ability to pay as
     such debts and liabilities mature; and (d) such Person is not engaged in a
     business or transaction, and is not about to engage in a business or
     transaction, for which such

                                       20
<PAGE>

     Person's property would constitute an unreasonably small capital. The
     amount of contingent liabilities (such as litigation, guarantees and
     pension plan liabilities) at any time shall be computed as the amount
     which, in light of all the facts and circumstances existing at the time,
     represents the amount which can be reasonably be expected to become an
     actual or matured liability.

          "SUBORDINATED DEBT" shall mean all Indebtedness which is expressly
     subordinated to Agent, including without limitation, Indebtedness
     subordinated by the Parent Intercreditor Agreement, containing
     subordination provisions which are satisfactory to Agent in its sole
     discretion.

          "SPECIAL COLLATERAL" shall have the meaning ascribed to it in
     Section 4.3.

          "SUBSIDIARY" shall mean any corporation, partnership, limited
     liability company or other legal entity of which a Borrower owns directly
     or indirectly 50% or more of the outstanding voting stock or interests, or
     of which a Borrower has effective control by contract or otherwise.

          "TANGIBLE NET WORTH" shall mean the excess of total assets of
     Borrowers and their respective Subsidiaries over Indebtedness of Borrowers
     and their respective Subsidiaries (other than Subordinated Debt and any
     accrued interest thereon), total assets and Indebtedness each to be
     determined on a consolidated basis in accordance with generally accepted
     accounting principals consistently applied, excluding, however, from the
     determination of total assets (i) all notes receivable from officers and
     employees of Borrowers and their respective Subsidiaries, (ii) all assets
     which would be classified as intangible assets under generally accepted
     accounting principals, including, without limitation, goodwill, patents,
     trademarks, trade names, copyrights, franchises and deferred charges
     (including, without limitation, unamortized debt discount and expense,
     organization costs and deferred research and development expense) and
     similar assets and (iii) the write-up of assets above cost.

          "TAXES" shall mean for any fiscal year the federal, state, local and
     foreign taxes payable by each Borrower and their Subsidiaries.

          "TERM LOAN" shall have the meaning ascribed to it in Section 2.1.

          "TERM LOAN COMMITMENT" shall have the meaning ascribed to it in
     Section 2.1.

          "TERM LOAN MATURITY DATE" shall mean October 30, 2005.

          "UBID COLLATERAL ASSIGNMENT" shall have the meaning ascribed to it in
     Section 2.11(A)(xxii).

          "UCC" shall have the meaning ascribed to it in Section 1.3.

                                       21
<PAGE>

         "UNDERCOLLATERALIZED TERM LOAN BORROWINGS" shall mean (i) the total
     amount of Term Loan(s) then outstanding minus (ii) the appraised value of
     any assets of the Borrowers, as determined by an appraiser reasonably
     satisfactory to the Borrowers and the Agent. Any assets that have not been
     appraised shall be deemed to have no appraised value for the purposes of
     determining the calculation in the prior sentence.

          "WORKING CAPITAL" shall mean the excess of current assets of Borrowers
     and their respective Subsidiaries over current liabilities of Borrowers and
     their respective Subsidiaries, all as determined on a consolidated basis,
     but subject nevertheless to the expressed limitations and restrictions
     hereinafter set forth. There should be excluded from current assets all
     deferred assets, prepaid expenses and the surrender value of insurance.

     1.2  ACCOUNTING TERMS.  Any accounting terms used in this Agreement which
are not specifically defined shall have the meanings customarily given them in
accordance with generally accepted accounting principles.

     1.3  OTHER TERMS.  All other terms, whether or not capitalized, contained
in this Agreement which are not otherwise defined in this Agreement shall,
unless the context indicates otherwise, have the meanings provided for by the
Uniform Commercial Code of the State of Illinois (the "UCC") in effect from time
to time, to the extent the same are used or defined therein.

     1.4  INTERPRETATION.  In this Agreement and each Ancillary Agreement,
unless a clear contrary intention appears:

              (i) the singular number includes the plural number and vice versa;

              (ii) reference to any Person includes such Person's successors and
          assigns but, if applicable, only if such successors and assigns are
          permitted by such documents, and reference to a Person in a particular
          capacity excludes such Person in any other capacity;

              (iii) reference to either gender includes the other gender;

              (iv) reference to any agreement (including this Agreement and the
          Schedules and Exhibits and the Ancillary Agreements) documents or
          instruments means such agreement, document or instrument as amended,
          modified, supplemented or replaced from time to time in accordance
          with the terms thereof and, if applicable, the terms hereof and the
          Ancillary Agreements, and reference to any promissory note includes
          any promissory note which is an extension or renewal thereof or a
          substitute or replacement therefor;

              (v) reference to any law, rule, regulation, order, decree,
          requirement, policy, guideline, directive or interpretation means as
          amended, modified, codified, replaced or

                                       22
<PAGE>

     reenacted, in whole or in part, and in effect on the determination date,
     including rules and regulations promulgated thereunder;

              (vi) reference to any Article, Section, paragraph, clause, other
          subdivision, Schedule or Exhibit means such Article, Section,
          paragraph, clause or other subdivision of this Agreement or Schedule
          or Exhibit to this Agreement;

              (vii) "hereunder," "hereof," "hereto" and words of similar import
          shall be deemed references to this Agreement as a whole and not to any
          particular Article, Section or other provision hereof;

              (viii) "including" (and with correlative meaning "include") means
          including without limiting the generality of any description preceding
          such term;

              (ix) relative to the determination of any period of time, "from"
          means "from and including" and "to" means "to but excluding"; and

              (x) references herein to any Subsidiary shall apply only during
          such times as a Borrower has any Subsidiary.

     1.5  MULTIPLE BORROWERS.  The term "Borrowers" refers to more than one
corporation.  The Borrowers hereby designate SalesLink to act on behalf of the
Borrowers for all purposes under this Agreement, including, without limitation,
the requesting of Loans hereunder, and reduction of any Commitment.  Notice when
given to SalesLink shall be sufficient notice to the Borrowers.  Any document
delivered to SalesLink shall be considered delivered to each of the Borrowers.

2.   LOANS; GENERAL TERMS.
     ---------------------

     2.1  CREDIT FACILITIES.

          (A) Revolving Line of Credit.  Each Lender with a Revolving Loan
     Commitment severally and not jointly agrees, on the terms and conditions
     hereinafter set forth, to make available for Borrowers' use, from time to
     time until the Revolving Credit Termination Date, upon request of the
     Borrowers in accordance with Section 2.5(A), certain Loans under a
     revolving line of credit (the "REVOLVING CREDIT FACILITY") in an aggregate
     amount not to exceed at any time outstanding the amount set forth opposite
     the Lender's name in Schedule 2.1(A) under the heading "REVOLVING CREDIT
     COMMITMENTS" (such amount as the same may be reduced from time to time,
     being referred to as such Lender's "REVOLVING CREDIT COMMITMENT"; provided,
     however, that the aggregate amount of Loans under the Revolving Credit
     Facility outstanding at any one time shall not exceed the lesser of:

              (i) the Aggregate Revolving Credit Commitment then in effect; and

                                       23
<PAGE>

              (ii) (A) (1) 80% of Eligible Receivables plus (2) 50% of Eligible
          Inventory minus (B) any Undercollateralized Term Loan Borrowings each
          as determined on the basis of the most recent Borrowing Base
          Certificate (such amount referred to herein as the "BORROWING BASE").

     During such period and subject to Section 3.2(C), the Revolving Credit
     Facility may be utilized by borrowing, repaying and reborrowing the Loans
     thereunder.

          (B) Term Loan.  Each Lender with a Term Loan Commitment severally and
     not jointly agrees, on the terms and conditions hereinafter set forth, to
     make available for Borrowers' use, from time to time until the Amortization
     Commencement Date, upon request of the Borrowers in accordance with Section
     2.5(B), a term loan (the "TERM LOAN") in the amount set forth opposite such
     Lender's name in Schedule 2.1(B) under the heading "TERM LOAN COMMITMENTS"
     (such amount being referred to herein as such Lender's "TERM LOAN
     COMMITMENT").  In the event borrowings under the Term Loan are less than
     the Aggregate Term Loan Commitment on October __, 2002, no additional
     borrowings under the Term Loan shall be available.  Repayments and
     prepayments of the Term Loan shall not be subject to reborrowing.

     2.2  EVIDENCE OF DEBT.  The Revolving Credit Facility and the Loans made by
each Lender to Borrowers thereunder shall be evidenced by a Revolving Credit
Note payable to the order of such Lender, which note shall be in the form
attached hereto as Exhibit C-1 in an amount equal to such Lender's Revolving
Credit Commitment.  The Term Loan and the Loans made by each Lender to Borrowers
thereunder shall be evidenced by a Term Note payable to the order of such
Lender, which note shall be in the form attached hereto as Exhibit C-2 in an
amount equal to such Lender's Term Loan Commitment.

     2.3  LOAN ACCOUNTS; AMOUNT AND MAINTENANCE OF LOANS; INTEREST RATE NOT
DETERMINED.

          (A) The Agent, on behalf of the Lenders, shall record on its books and
     records the amount of each Loan made, the interest rate applicable, all
     payments of principal and interest thereon and the principal balance
     thereof from time to time outstanding, and such record shall, absent
     demonstrable error be conclusive evidence of the amount of the Loans made
     by the Lenders to Borrowers and the interest and payments thereon.  Any
     failure to record or any error in doing so shall, however, limit or
     otherwise affect the obligation of Borrowers hereunder (and under any Note)
     to pay any amount owing with respect to the Loans.

          (B) Amount and Maintenance of Loans.  The Loans under the Revolving
     Credit Facility may be made and maintained as (i) Prime Rate Loans, (ii)
     LIBOR Loans, or (iii) a combination of Prime Rate Loans and LIBOR Loans.
     The Term Loans may be made and maintained as  (i) Prime Rate Loans, (ii)
     LIBOR Loans or (iii) a combination of Prime Rate Loans and LIBOR Loans.
     The aggregate principal amount of each LIBOR Loan, whether new, converted
     or continued, shall not be less than $500,000.  More than

                                       24
<PAGE>

     one borrowing may occur on the same date, but at no time shall there be
     outstanding more than five LIBOR Loans in the aggregate under the Revolving
     Credit Facility and five LIBOR Loans in the aggregate under the Term Loan.
     The amount of any Loan is also subject to the limits contained in Section
     2.1. No LIBOR Loan shall be made at any time a Default or Event of Default
     shall exist.

          (C) Inability to Determine Interest Rate. In the event, and on each
     occasion, that on the day two Business Days prior to the commencement of
     any Interest Period for a LIBOR Loan, Agent shall have determined in good
     faith (which determination shall be conclusive and binding upon Borrowers)
     that currency deposits in the amount of such LIBOR Loan are not generally
     available in the London Interbank market, or that the rate at which such
     currency deposits are being offered will not adequately and fairly reflect
     the cost to Agent of maintaining the principal amount of such LIBOR Loan
     during such Interest Period, Agent shall promptly, after such determination
     shall have been made, give facsimile notice of such determination to
     Borrowers and the Lenders, and, until Agent shall notify Borrowers and
     Lenders that the circumstances giving rise to such notice no longer exist,
     any request by Borrowers for the making of, conversion to or continuation
     of a LIBOR Loan shall be deemed to be a request for a Prime Rate Loan.
     Agent shall use its reasonable efforts to notify Borrowers of a change in
     the circumstances causing the LIBOR Loan to be unavailable but shall not
     incur any liability for any failure so to notify Borrowers.

     2.4  INTEREST RATE.  Unless otherwise provided in a writing evidencing such
Liabilities, Borrowers agree, jointly and severally, to pay Agent, for the
benefit of each Lender interest on the outstanding principal balance of the
Loans from time to time at a rate equal to (i) with respect to Prime Rate Loans,
the Prime Rate and (ii) with respect to LIBOR Loans, the LIBOR Rate plus the
Applicable Margin.  The records of Agent as to the interest rate applicable to a
particular advance shall be binding and conclusive absent manifest error.
Interest shall be payable from the date of such advance of the Loan to the day
of repayment of such advance.  Interest shall be computed on the basis of a year
of 360 days and actual days elapsed and shall be payable as provided in Section
3.2.  Agent, for the ratable benefit of each Lender, reserves the right to
charge Borrowers' checking account(s) for accrued interest on the applicable
Interest Payment Date.  In no contingency or event whatsoever shall the rate or
amount of interest paid by Borrowers under this Agreement or any of the
Ancillary Agreements exceed the maximum amount permissible under any law which a
court of competent jurisdiction shall, in a final determination, deem
applicable.  In the event that such a court determines that Agent or any Lender
has received interest under this Agreement or under any Ancillary Agreement in
excess of the maximum amount permitted by such law, (i) Agent or such Lender
shall apply such excess to any unpaid principal owed by Borrowers to such Lender
first, under the Revolving Credit Facility and second under the Term Loan or, if
the amount of such excess exceeds the unpaid balance of such principal on both
the Revolving Credit Facility and the Term Loan, such Lender shall promptly
refund such excess interest to Borrowers and (ii) the provisions of this
Agreement shall be deemed amended to provide for such permissible rate.  All
sums paid, or agreed to be paid, by Borrowers which are, or to be may be
construed to be, compensation for the use, forbearance or detention of money
shall, to the extent permitted by applicable law, be

                                       25
<PAGE>

amortized, prorated, spread and allocated throughout the term of all such
indebtedness until the indebtedness is paid in full.

     2.5  BORROWING PROCEDURES.

          (A) In order to effect a Loan under the Revolving Credit Facility, an
     authorized officer of each of the Borrowers shall give Agent irrevocable
     written notice (in form and substance acceptable to Agent) or irrevocable
     telephone notice (immediately confirmed by such written notice by
     facsimile) not later than 11:00 a.m., Chicago time, on (i) the proposed
     borrowing date in the case of Prime Rate Loans, and (ii) the second
     Business Day prior to the proposed borrowing date in the case of LIBOR
     Loans (the "NOTICE OF BORROWING"). Borrowers hereby authorize Agent and
     each Lender to extend advances and make Loans to Borrowers based on written
     or telephone notice from an authorized officer of Borrowers.  Each Notice
     of Borrowing shall specify the principal amount of the Loan to be made
     pursuant to such borrowing and the date of such borrowing (which shall be a
     Business Day), that the Loans are under the Revolving Credit Facility,
     whether the Loans being made pursuant to such borrowing are to be
     maintained as Prime Rate Loans or LIBOR Loans and, if LIBOR Loans, the
     initial Interest Period to be applicable thereto.  Promptly after receipt
     of such request, the Agent shall advise each Lender thereof.  Not later
     than 2:30 p.m., Chicago time, on the date of a proposed borrowing, each
     Lender shall provide Agent, at the principal office of Agent in Chicago,
     with immediately available funds equal to such Lender's pro rata share of
     the borrowing, and subject to receipt by the Agent of the documents
     required under Section 2.11(B) with respect to such borrowing, if any are
     required, Agent shall pay over such funds received by it to Borrowers on
     the requested borrowing date.

          (B) In order to effect a Term Loan at any time prior to the
     Amortization Commencement Date, an authorized officer of each of the
     Borrowers shall give Agent a Notice of Borrowing not later than 11:00 a.m.,
     Chicago time, on (i) the proposed borrowing date in the case of Prime Rate
     Loans, and (ii) the second Business Day prior to the proposed borrowing
     date in the case of LIBOR Loans. Borrowers hereby authorize Agent and each
     Lender to extend advances and make Loans to Borrowers based on written or
     telephone notice from an authorized officer of Borrowers.  Each Notice of
     Borrowing shall specify the principal amount of the Loan to be made
     pursuant to such borrowing and the date of such borrowing (which shall be a
     Business Day), that the Loans are a Term Loan, whether the Loans being made
     pursuant to such borrowing are to be maintained as Prime Rate Loans or
     LIBOR Loans and, if LIBOR Loans, the initial Interest Period to be
     applicable thereto.  Promptly after receipt of such request, the Agent
     shall advise each Lender thereof.  Not later than 2:30 p.m., Chicago time,
     on the date of a proposed borrowing, each Lender shall provide Agent, at
     the principal office of Agent in Chicago, with immediately available funds
     equal to such Lender's pro rata share of the borrowing, and subject to
     receipt by the Agent of the documents required under Section 2.11(B) with
     respect to such borrowing, if any are required, Agent shall pay over such
     funds received by it to Borrowers on the requested borrowing date.  The
     Term Loan shall only be subject to borrowing on or prior to the
     Amortization Commencement Date

                                       26
<PAGE>

     and the commitment of each Lender with respect to such term loan facilities
     shall expire and terminate as of the Amortization Commencement Date.

     2.6  GENERAL PROVISIONS.

          (A) One Loan.  All Loans and advances by each Lender to Borrowers
     under this Agreement and the Ancillary Agreements (whether made under the
     Revolving Credit Facility or the Term Loan) shall constitute one loan and
     all indebtedness and obligations of Borrowers to all of the Lenders under
     this Agreement and the Ancillary Agreements shall constitute one general
     obligation secured by the Collateral.

          (B) Events of Default.  Each Lender may, in its sole discretion,
     refrain from making any Loans or extensions of credit to Borrowers under
     this Agreement or any Ancillary Agreement after the occurrence and during
     the continuation of an Event of Default.

     2.7  CONVERSION OPTIONS; CONTINUANCE.

          (A) Conversion Requirements.  Provided that no Default or Event of
     Default has occurred and is continuing and subject to the terms and
     conditions of this Agreement, Borrowers may elect from time to time to
     convert a Prime Rate Loan, or any portion thereof, to a LIBOR Loan by
     Borrowers giving Agent at least two Business Days' prior irrevocable
     written notice of conversion, which notice must be in form and substance
     acceptable to Agent and received by Agent prior to 11:00 a.m. (Chicago
     time) (the "NOTICE OF CONVERSION").  If the date on which a Prime Rate Loan
     is to be converted to a LIBOR Loan is not a Business Day, then such
     conversion shall be made on the next succeeding Business Day, and during
     the period from such date to such succeeding Business Day, such Prime Rate
     Loan shall bear interest as if it were a Prime Rate Loan.  All or any part
     of outstanding borrowings may be converted as provided herein.  Subject to
     the terms and conditions of this Agreement, Borrowers may convert a LIBOR
     Loan into a Prime Rate Loan by Borrowers giving Agent a Notice of
     Conversion not later than 11:00 a.m. (Chicago time) on the desired
     conversion date.  Promptly upon receipt of each Notice of Conversion, the
     Agent shall advise each Lender thereof.

          (B) Continuance.  Any LIBOR Loan may be continued as such, in whole or
     in part, upon the expiration of an Interest Period with respect thereto if
     Borrowers gives Agent irrevocable written notice of continuance which
     notice must be in form and substance acceptable to Agent and received by
     Agent prior to 11:00 a.m. (Chicago time), at least two Business Days prior
     to the date of expiration of the Interest Period expiring with respect to
     the LIBOR Loan which is requested to be continued, specifying (i) the LIBOR
     Loan, or portion thereof, requested to be continued; (ii) the date of
     expiration of the Interest Period expiring with respect to the LIBOR Loan,
     or portion thereof, which is requested to be continued; and (iii) the
     length of the Interest Period with respect to such LIBOR Loan, or portion
     thereof, after the continuation thereof (the "NOTICE OF CONTINUANCE");
     provided, that no LIBOR Loans may be continued as such when any

                                       27
<PAGE>

     Default or Event of Default has occurred and is continuing, but shall be
     automatically converted to a Prime Rate Loan on the last day of the
     Interest Period for such Loan. If Borrowers do not comply with the notice
     provisions of this clause (B), such LIBOR Loan shall be automatically
     converted to a Prime Rate Loan upon the expiration of the Interest Period
     with respect thereto. Promptly upon receipt of each Notice of Continuance,
     the Agent shall advise each Lender thereof.

          (C) Restatement of Representations and Warranties.  Any Notice of
     Conversion or Notice of Continuance delivered pursuant to this Section 2.7
     shall be deemed to be a representation that all of the representations and
     warranties of Borrowers contained in this Agreement shall then be true and
     correct as if made on such date, except to the extent that such
     representations and warranties expressly relate to an earlier date, and
     that no Default or Event of Default shall have occurred and be continuing.

     2.8  REQUIREMENTS OF LAW.

          (A) Increased Costs.  Notwithstanding any other provisions herein, in
     the event that the introduction of or any change in any law, rule,
     regulation, treaty or directive or in the interpretation or application
     thereof, or compliance by any Lender with any request or directive (whether
     or not having the force of law) from any central bank or other governmental
     authority, agency or instrumentality or regulatory body:

              (i) subjects such Lender to any tax of any kind whatsoever with
          respect to this Agreement, the Notes, the Ancillary Agreement or the
          Loans made hereunder, or changes the basis of taxation of payments to
          such Lender of principal, interest or any other amount payable
          hereunder (except for changes in the rate of tax imposed on the
          overall net income of such Lender by the United States, any state or
          subdivision thereof);

              (ii) imposes, modifies, holds applicable any reserve, special
          deposit, compulsory loan or similar requirement against assets held
          by, or deposits or other liabilities in or for the account of,
          advances or loans by, or other credit extended by, or any other
          acquisition of funds by, any office of such Lender (which is not
          otherwise included in the determination of the LIBOR Rate hereunder);
          or

              (iii)  imposes on any Lender or the London interbank market any
          other condition affecting this Agreement or the LIBOR Loans made by
          such Lender;

     and the result of any of the foregoing is to increase the cost to such
     Lender of agreeing to make, making, continuing or maintaining or
     participating in LIBOR Loans, or to reduce any amount receivable thereunder
     or to increase the withholding taxes payable then, in any such case,
     Borrowers agree, jointly and severally, to pay such Lender, within 15 days
     after demand by such Lender, any additional amounts necessary to compensate
     such Lender on an after-tax basis for such additional cost or reduced
     amount receivable or increased withholding taxes payable which such Lender
     deems to be material as

                                       28
<PAGE>

     determined by such Lender with respect to this Agreement, the Notes, the
     other Ancillary Agreements or the Loans made hereunder.

          (B) Capital Adequacy.  In the event that any Lender shall have
     determined that the adoption of any law, rule, regulation, treaty or
     guideline regarding capital adequacy, or any change in any of the foregoing
     or in the interpretation or application of any of the foregoing or
     compliance by such Lender with any request or directive regarding capital
     adequacy (whether or not having the force of law) from any central bank or
     other governmental authority, agency or instrumentality or regulatory body,
     does or shall have the effect of reducing the rate of return on such
     Lender's or its parent's capital as a consequence of its obligations under
     this Agreement to a level below that which such Lender or such parent could
     have achieved but for such adoption, change, or compliance (taking into
     consideration such Lender's or such parent's policies with respect to
     capital adequacy) by an amount deemed by such Lender to be material, then
     from time to time, after submission by such Lender to Borrowers of a
     written request therefor, Borrowers agree, jointly and severally, to pay to
     such Lender, within 15 days after its demand, such additional amount or
     amounts as will compensate such Lender or such parent on an after-tax basis
     for such reduction; provided that such Lender is charging such amounts to
     similarly situated borrowers.

          (C) Certificate for Claim.  If any Lender or its parent becomes
     entitled to claim any additional amounts pursuant to this Section 2.8, it
     shall promptly notify Borrowers, Agent and the other Lenders of the event
     by reason of which it has become so entitled.  A certificate setting forth
     in reasonable detail any additional amounts payable pursuant to the
     foregoing sentence submitted by such Lender or its parent shall be
     conclusive and binding on Borrowers in the absence of manifest error.  The
     provisions of this Section 2.8 shall survive the repayment of the Loans and
     the termination of this Agreement.

          (D) No Waiver.  Failure on the part of any Lender or its parent to
     demand compensation for any increased costs or reduction in amounts
     received or receivable or reduction in return on capital with respect to
     any period shall not constitute a waiver of such party's right to demand
     compensation with respect to such period or any other period. The
     protection of this Section 2.8 shall be available to such party regardless
     of any possible contention of the invalidity or inapplicability of the law,
     rule, regulation, guideline or other change or condition which shall have
     occurred or been imposed; provided, however, that if such party shall have
     recouped any amount therefore paid to it by Borrowers under this Section
     2.8, such Lender shall pay to Borrowers an amount equal to the net
     recoupment so received by such party, as determined in good faith by such
     party.

          (E) Replacement of Lenders.  If any Lender determines in accordance
     with Section 2.9 that, due to illegality, it is unable to make or maintain
     a LIBOR Loan or requests compensation under this Section 2.8, or if any
     Lender becomes a Non-Funding Lender, then Borrowers may, at their sole
     expense and effort, upon notice to such Lender

                                       29
<PAGE>

     and Agent, require such Lender to assign and delegate, without recourse (in
     accordance with and subject to the restrictions contained in Section 10.2),
     all its interests, rights and obligations under this Agreement to an
     assignee that shall assume such obligations (which assignee may be another
     Lender, if such Lender accepts such assignment); provided that (i) the
     Borrower shall have received the prior written consent of Agent, (ii) such
     Lender shall have received payment of an amount equal to the outstanding
     principal of its Loans (and unpaid Reimbursement Obligations), 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 Borrowers (in the case of all other
     amounts) and (iii) in the case of any such assignment resulting from a
     claim for compensation under this Section 2.8 such assignment will result
     in a reduction of such compensation.

     2.9  ILLEGALITY.  Any Lender may make or maintain LIBOR Loans at or for the
credit of any branch, subsidiary or affiliate office inside or outside the
United States or any international banking facility within the United States, as
such Lender may elect from time to time. Notwithstanding any other provisions
herein, if any law, rule, regulation, treaty or directive or any change therein
or in the interpretation or application thereof, shall make it unlawful for such
Lender to maintain LIBOR Loans as contemplated by this Agreement, the agreement
of such Lender to make or maintain LIBOR Loans shall terminate and all
outstanding LIBOR Loans shall be converted automatically to Prime Rate Loans, on
the last day of the then current Interest Period or within such earlier period
as required by law.

     2.10 INDEMNITY.  Borrowers agree, jointly and severally, to indemnify any
Lender and to hold such Lender harmless from any cost, loss or expense which
such Lender may sustain or incur as a consequence of (i) Borrowers making a
payment or prepayment of principal or interest on any LIBOR Loan (including,
without limitation, through a conversion to the same or a different type of Loan
or pursuant to Sections 2.3(B) and 2.9 above) on a day which is not the last day
of an Interest Period with respect thereto (other than interest paid on the last
day of a three month interval in respect of a LIBOR Loan having an Interest
Period longer than three months), (ii) any failure by Borrowers to borrow or
convert any Loan hereunder after a Notice of Borrowing or Notice of Conversion
has been given (in the case of LIBOR Loans), (iii) default by Borrowers in
making any prepayment after Borrowers have given a notice of prepayment and (iv)
any acceleration of the maturity of the Loans in accordance with the terms of
this Agreement, including, but not limited to, any such reasonable cost, loss or
expense arising in liquidating the Loans and from interest or fees payable by
such Lender to lenders of funds obtained by it in order to maintain the Loans
hereunder.  The provisions of this Section 2.10 shall survive the repayment of
the Loans and the termination of this Agreement.

     2.11  CONDITIONS PRECEDENT.  The obligations of each Lender to make Loans
hereunder is subject to the following conditions precedent:

          (A) Initial Loan.  On or prior to the date of the disbursement of the
     initial Loans (hereinafter called the "CLOSING"), Borrowers shall have
     delivered or caused to be delivered to Agent, each in form and substance
     satisfactory to Agent, the following:

                                       30
<PAGE>

              (i) The Notes, which shall be duly executed by each Borrower;

              (ii) Certified (as of the date of the Closing) copies of
          resolutions of each Borrower authorizing the execution, delivery and
          performance of this Agreement, the Notes, and each other document to
          be delivered pursuant hereto;

              (iii) A certificate (dated the date of the Closing) of each
          Borrower's corporate secretary as to the incumbency and signatures of
          the officers of such Borrower signing this Agreement, the Notes, and
          each other document to be delivered by such Borrower pursuant to this
          Agreement.

              (iv) A copy of each Borrower's charter and by-laws, together with
          a certificate (dated the date of the Closing) of such Borrower's
          corporate secretary, as applicable, to the effect that such charter
          and by-laws have not been amended since the date each document became
          effective;

              (v) For each Borrower, certificates, as of the most recent dates
          practicable, of the Secretary of State of such Borrower's state of
          organization and the Secretary of State of each state in which each
          Borrower is qualified as a foreign corporation, or in which it intends
          to do business following the receipt of proceeds of the Loans, as to
          the good standing of such Borrower;

              (vi) Pay-off letter from Fleet Bank (the "SENIOR LIENHOLDER"),
          indicating the amount necessary to retire the existing indebtedness of
          Borrowers to the senior lienholder and evidence, satisfactory to
          Agent, of the release of any and all Collateral in which the senior
          lienholder has a security interest;

              (vii) Financing statements regarding all Collateral, and filed
          in any and all offices and jurisdictions deemed appropriate by Agent
          in Agent's sole discretion;

              (viii) Uniform Commercial Code, tax lien, bankruptcy and
          judgment searches concerning each Borrower from all offices and
          jurisdictions deemed appropriate by Agent in Agent's sole discretion,
          showing no other filing of record with respect to the Collateral
          granted hereunder other than any financing statement filed by Agent;

              (ix) An opinion of counsel to Borrowers in substantially the form
          of Exhibit D attached hereto together with an opinion of special
          California counsel to Borrowers regarding certain matters relating to
          Pacific Direct Marketing Corp., a California corporation;

                                       31
<PAGE>

              (x) A Financial Condition and Compliance Certificate (a
          "COMPLIANCE CERTIFICATE") in the form of Exhibit E attached hereto
          dated the date of the Closing, signed by an authorized officer of each
          Borrower;

              (xi) A loss payable endorsement respecting each Borrower's
          casualty insurance in the form of Exhibit F attached hereto;

              (xii)  Evidence of insurance in the form set forth in Section 7.6
          or otherwise acceptable to Agent;

              (xiii)  An initial Notice of Borrowing duly executed by each
          Borrower;

              (xiv)  Payment of the Closing Fee  referenced in Section 2.12(A);

              (xv) The initial Borrowing Base Certificate duly executed by each
          Borrower;

              (xvii)  An authorization to pay proceeds letter executed by each
          Borrower in a form acceptable to Agent;

              (xviii)  A field audit report relating to an inspection of the
          Collateral, acceptable to Agent in all respects;

              (xix)  A SalesLink Pledge Agreement (a "SALESLINK PLEDGE
          AGREEMENT") in the form of Exhibit L attached hereto;

              (xx) A SalesLink Mexico Pledge Agreement (a "SALESLINK MEXICO
          PLEDGE AGREEMENT") in the form of Exhibit M attached hereto together
          with a consent of SalesLink Corporation;

              (xxi) A Parent Intercreditor Agreement (a "PARENT INTERCREDITOR
          AGREEMENT") in the form of Exhibit N attached hereto;

              (xxii) A uBid Collateral Assignment (a "UBID COLLATERAL
          ASSIGNMENT") in the form of Exhibit O attached hereto; and

              (xxiii) Such other documents as Agent shall reasonably determine
          to be necessary or desirable.

          (B) Additional Advances. At the time of (1) the Closing and (2) of
     each disbursement under the Revolving Credit Facility or the Term Loan
     (prior to the Amortization Commencement Date) after the Closing:

                                       32
<PAGE>

              (i) Each Borrower must be in full compliance with all of the
          terms and conditions of this Agreement and the Ancillary Agreements,
          and no Default or Event of Default shall have occurred and be
          continuing;

              (ii) No material adverse change shall have occurred in the
          business, assets, operations, financial or other condition of any
          Borrower or in Borrowers collective ability to pay the Loans since the
          date of this Agreement or since the Closing, as applicable;

              (iii) Each Borrower shall have good and marketable title to and
          ownership of the Collateral owned by it. The Collateral shall be free
          from any security interest, Lien or encumbrance except the Permitted
          Liens and no financing statement concerning the Collateral, excepting
          any filed on behalf of Agent and those listed on Exhibit B-2, is on
          file in any public office;

              (iv) Each of the representations and warranties set forth in
          Section 6 shall be true and correct as of such time;  and

              (v) After giving effect to the requested advance, the aggregate
          principal amount of all Loans outstanding under the Revolving Credit
          Facility shall not exceed the then current Availability.

     2.12 FEES.

          (A) Closing Fee.  Borrowers agree, jointly and severally, to pay to
     Agent, for the ratable benefit of the Lenders at Closing a non-refundable
     closing fee in the amount of $75,000.

          (B) Non-Use Fee.  Borrowers agree, jointly and severally, to pay to
     Agent, for the ratable benefit of the Lenders, (i) with respect to the
     Revolving Credit Facility, for the period commencing on the date hereof and
     continuing through the Revolving Credit Termination Date, a non-use fee at
     the rate of one-half of one percent (0.50%) per annum on the amount of the
     average daily unused portion of the Aggregate Revolving Credit Commitment
     and (ii) with respect to the Term Loan, for the period commencing on the
     date hereof and continuing through the Amortization Commencement Date, a
     non-use fee at the rate of one-half of one percent (0.50%) per annum on the
     amount of the average daily unused portion of the Aggregate Term Loan
     Commitment.  Such non-use fees shall be payable by Borrowers, jointly and
     severally, in arrears on the last Business Day of each calendar month and
     on the Revolving Credit Termination Date and the Amortization Commencement
     Date.  The non-use fee shall be computed on the basis of the actual number
     of days elapsed in a year of 360 days.

     SECTION 2.13   LETTERS OF CREDIT.

         (A)  Issuance of Letters of Credit.

                                       33
<PAGE>

              (i) From and after the date hereof, the Issuing Lender agrees,
          upon the terms and conditions set forth in this Agreement, to issue at
          the request and for the account of Borrowers, one or more Letters of
          Credit; provided, however, that the Issuing Lender shall not be under
          any obligation to issue, and shall not issue, any Letter of Credit if
          (a) any order, judgment or decree of any governmental authority with
          jurisdiction over the Issuing Lender shall purport by its terms to
          enjoin or restrain such Issuing Lender from issuing such Letter of
          Credit, or any law or governmental rule, regulation, policy, guideline
          or directive (whether or not having the force of law) from any
          governmental authority with jurisdiction over the Issuing Lender shall
          prohibit, or request that the Issuing Lender refrain from, the
          issuance of Letters of Credit in particular or shall impose upon the
          Issuing Lender with respect to any Letter of Credit any restriction or
          reserve or capital requirement (for which the Issuing Lender is not
          otherwise compensated) or any unreimbursed loss, cost or expense which
          was not applicable, in effect and known to the Issuing Lender as of
          the date of this Agreement and which the Issuing Lender in good faith
          deems material to it (the Issuing Lender shall promptly notify
          Borrowers of any event which, in the judgment of the Issuing Lender,
          would preclude the issuance of a Letter of Credit pursuant to this
          clause); (b) one or more of the conditions to such issuance contained
          in Section 2.11 is not then satisfied; or (c) after giving effect to
          such issuance, the aggregate outstanding amount of the Letter of
          Credit Obligations would exceed the Letter of Credit Sublimit.

              (ii) In no event shall: (a) the aggregate amount of the Letter of
          Credit Obligations at any time exceed the Letter of Credit Sublimit;
          (b) the sum at any time of (1) the aggregate amount of Letter of
          Credit Obligations and (2) the aggregate principal balance of all
          outstanding Loans issued pursuant to the Revolving Credit Facility
          exceed the lesser of the then current Availability and the Borrowing
          Base; or (c) the expiration date of any Letter of Credit (including,
          without limitation, Letters of Credit issued with an automatic
          "evergreen" provision providing for renewal absent advance notice by
          Borrowers or the Issuing Lender), or the date for payment of any draft
          presented thereunder and accepted by the Issuing Lender, be later than
          the Letter of Credit Expiry Date.

          (B) Participating Interests.  Immediately upon the issuance by the
    Issuing Lender of a Letter of Credit in accordance with Section 2.13(A),
    each Lender shall be deemed to have irrevocably and unconditionally
    purchased and received from the Issuing Lender, without recourse,
    representation or warranty, an undivided participation interest equal to its
    Percentage of the face amount of such Letter of Credit and each draw paid by
    the Issuing Lender thereunder.  Each Lender's obligation to pay its
    proportionate share of all draws under the Letters of Credit, absent gross
    negligence or willful misconduct by the Issuing Lender in honoring any such
    draw, shall be absolute, unconditional and irrevocable and in each case
    shall be made without counterclaim or set-off by such Lender.

         (C) Letter of Credit Reimbursement Obligations.

                                       34
<PAGE>

              (i) (a) Borrowers agree to pay to the Issuing Lender (1) on each
          date that any amount is drawn under each Letter of Credit a sum (and
          interest on such sum as provided in clause (2) below) equal to the
          amount so drawn plus all other charges and expenses with respect
          thereto or in the applicable Reimbursement Agreement and (2) interest
          on any and all amounts remaining unpaid under this Section 2.13 until
          payment in full at the Prime Rate plus 2.00% per annum.  Borrowers
          agree to pay to the Issuing Lender the amount of all Reimbursement
          Obligations owing in respect of any Letter of Credit immediately when
          due, under all circumstances, including, without limitation, any of
          the following circumstances:  (w) any lack of validity or
          enforceability of this Agreement or any Ancillary Agreements executed
          pursuant hereto; (x) the existence of any claim, set-off, defense or
          other right which Borrowers may have at any time against a beneficiary
          named in a Letter of Credit, any transferee of any Letter of Credit
          (or any Person for whom any such transferee may be acting), any Lender
          or any other Person, whether in connection with this Agreement, any
          Letter of Credit, the transactions contemplated herein or any
          unrelated transactions (including any underlying transaction between
          the Borrowers and the beneficiary named in any Letter of Credit); (y)
          the validity, sufficiency or genuineness of any document which the
          Issuing Lender has determined in good faith complies on its face with
          the terms of the applicable Letter of Credit, even if such document
          should later prove to have been forged, fraudulent, invalid or
          insufficient in any respect or any statement therein shall have been
          untrue or inaccurate in any respect; or (z) the surrender or material
          impairment of any security for the performance or observance of any of
          the terms hereof.

              (ii) Notwithstanding any provisions to the contrary in any
          Reimbursement Agreement, Borrowers agree to reimburse the Issuing
          Lender for amounts which the Issuing Lender pays under such Letter of
          Credit no later than the time specified in this Agreement.  If the
          Borrowers do not pay any such Reimbursement Obligations when due, the
          Borrowers shall be deemed to have immediately requested that the Banks
          make a Prime Rate Loan under this Agreement in a principal amount
          equal to such unreimbursed Reimbursement Obligations.  The Agent shall
          promptly notify the Lenders of such deemed request and, without the
          necessity of compliance with the requirements of Sections 2.1 and
          2.11, each Lender shall make available to the Agent its Loan in the
          manner prescribed for Prime Rate Loans.  The proceeds of such Loans
          shall be paid over by the Agent to the Issuing Lender for the account
          of Borrowers in satisfaction of such unreimbursed Reimbursement
          Obligations, which shall thereupon be deemed satisfied by the proceeds
          of, and replaced by, such Prime Rate Loan.

             (iii) If the Issuing Lender makes a payment on account of any
          Letter of Credit and is not concurrently reimbursed therefore by
          Borrowers and if for any reason a Prime Rate Loan may not be made
          pursuant to Section 2.13(C)(ii), then as promptly as practical during
          normal banking hours on the date of its receipt of such notice or, if
          not practicable on such date, not later than noon (Chicago time)

                                       35
<PAGE>

          on the Business Day immediately succeeding such date of notification,
          each Lender shall deliver to the Agent for the account of the Issuing
          Lender, in immediately available funds, the purchase price for such
          Lender's interest in such unreimbursed Reimbursement Obligations,
          which shall be an amount equal to such Lender's pro-rata share of such
          payment. Each Lender shall, upon demand by the Issuing Lender, pay the
          Issuing Lender interest on such Lender's pro-rata share of such draw
          from the date of payment by the Issuing Lender on account of such
          Letter of Credit until the date of delivery of such funds to the
          Issuing Lender by such Lender at a rate per annum, computed for actual
          days elapsed based on a 360-day year, equal to the federal funds rate
          for such period; provided, that such payments shall be made by such
          Lender only in the event and to the extent that the Issuing Lender is
          not reimbursed in full by Borrowers for interest on the amount of any
          draw on the Letters of Credit.

              (iv) At any time after the Issuing Lender has made a payment on
          account of any Letter of Credit and has received from any other Lender
          such Lender's pro-rata share of such payment, the Issuing Lender
          shall, forthwith upon its receipt of any reimbursement (in whole or in
          part) by Borrowers for such payment, or of any other amount from
          Borrowers or any other Person in respect of such payment (including,
          without limitation, any payment of interest or penalty fees and any
          payment under any collateral account agreement of the Borrowers or any
          Ancillary Agreements executed pursuant hereto but excluding any
          transfer of funds from any other Lender pursuant to Section
          2.13(C)(ii)), transfer to such other Lender such other Lender's
          ratable share of such reimbursement or other amount; provided, that
          interest shall accrue for the benefit of such Lender from the time the
          Issuing Lender has made a payment on account of any Letter of Credit;
          provided, further, that in the event that the receipt by the Issuing
          Lender of such reimbursement or other amount is found to have been a
          transfer in fraud of creditors or a preferential payment under the
          Bankruptcy Code or is otherwise required to be returned, such Lender
          shall promptly return to the Issuing Lender any portion thereof
          previously transferred by the Issuing Lender to such Lender, but
          without interest to the extent that interest is not payable by the
          Issuing Lender in connection therewith.

          (D) Procedure for Issuance.  Prior to the issuance of each Letter of
     Credit, and as a condition of such issuance, Borrowers shall deliver to the
     Issuing Lender (with a copy to the Agent) a Reimbursement Agreement signed
     by the Borrowers, together with such other documents or items as may be
     required pursuant to the terms thereof, and the proposed form and content
     of such Letter of Credit shall be reasonably satisfactory to the Issuing
     Lender.  Each Letter of Credit shall be issued no earlier than two (2)
     Business Days after delivery of the foregoing documents, which delivery may
     be by Borrowers to the Issuing Lender by facsimile transmission, telex or
     other electronic means followed by delivery of executed originals within
     five days thereafter.  The documents so delivered shall be in compliance
     with the requirements set forth in Section 2.13(A), and shall specify
     therein (i) the stated amount of the Letter of Credit requested, (ii) the
     effective date of issuance of such requested Letter of Credit, which shall
     be a Business

                                       36
<PAGE>

     Day, (iii) the date on which such requested Letter of Credit is to expire,
     (iv) the entity for whose benefit the requested Letter of Credit is to be
     issued, which shall be a Borrower and (v) the aggregate amount of Letter of
     Credit Obligations which are outstanding and which will be outstanding
     after giving effect to the requested Letter of Credit issuance. The
     delivery of the foregoing documents and information shall constitute an
     "ISSUANCE REQUEST" for purposes of this Agreement. Subject to the terms and
     conditions of Section 2.13(A) and provided that the applicable conditions
     set forth in Section 2.11 hereof have been satisfied, the Issuing Lender
     shall, on the requested date, issue a Letter of Credit on behalf of
     Borrowers in accordance with the Issuing Lender's usual and customary
     business practices. In addition, any amendment of an existing Letter of
     Credit shall be deemed to be an issuance of a new Letter of Credit and
     shall be subject to the requirements set forth above. The Issuing Lender
     shall give the Agent prompt written notice of the issuance of any Letter of
     Credit.

          (E) Nature of the Lenders' Obligations.

              (i) As between Borrowers and the Lenders, Borrowers assume all
          risks of the acts and omissions of, or misuse of the Letters of Credit
          by, the respective beneficiaries of the Letters of Credit.  In
          furtherance and not in limitation of the foregoing, the Lenders shall
          not be responsible for (i) the form, validity, sufficiency, accuracy,
          genuineness or legal effect of any document submitted by any party in
          connection with the application for an issuance of a Letter of Credit,
          even if it should in fact prove to be in any or all respects invalid,
          insufficient, inaccurate, fraudulent or forged; (ii) the validity or
          sufficiency of any instrument transferring or assigning or purporting
          to transfer or assign a Letter of Credit or the rights or benefits
          thereunder or proceeds thereof, in whole or in part, which may prove
          to be invalid or ineffective for any reason; (iii) the failure of the
          beneficiary of a Letter of Credit to comply fully with conditions
          required to be satisfied by any Person other than the Issuing Lender
          in order to draw upon such Letter of Credit (other than a failure to
          satisfy documentary conditions to drawing where payment of the Letter
          of Credit despite such failure would constitute gross negligence or
          willful misconduct of the Issuing Lender); (iv) errors, omissions,
          interruptions or delays in transmission or delivery of any messages,
          by mail, cable, telegraph, facsimile transmission, telex or otherwise;
          (v) the misapplication by the beneficiary of a Letter of Credit of the
          proceeds of any drawing under such Letter of Credit; or (vi) any
          consequences arising from causes beyond control of the Issuing Lender.

              (ii) In furtherance and extension and not in limitation of the
          specific provisions hereinabove set forth (including in Section
          2.13(C)), any action taken or omitted by the Issuing Lender under or
          in connection with the Letters of Credit or any related certificates,
          if taken or omitted in good faith, shall not put the Agent or any
          Lender under any resulting liability to Borrowers or relieve Borrowers
          of any of its obligations hereunder to the Issuing Lender or any such
          Person.

                                       37
<PAGE>

          (F) Compensation for Letters of Credit.  Borrowers shall pay to Agent
     (for the benefit of the Issuing Lender and the other Lenders) on the first
     Business Day of each calendar quarter, in arrears, a letter of credit fee
     at a rate per annum (the "LETTER OF CREDIT FEES") equal to the Applicable
     Margin for Loans made under the Revolving Credit Facility per annum of the
     stated amount of each Letter of Credit.  In addition, the Borrower shall
     pay to the Agent (for the benefit of the Issuing Lender and the other
     Lenders) any other processing, issuance, amendment or other similar fees
     customarily charged in connection with Letters of Credit, together with the
     Issuing Lender's out-of-pocket costs of issuing and servicing letters of
     credit.  All Letter of Credit Fees shall be computed on the basis of the
     actual number of days elapsed in a year of 360 days.

3.   PAYMENTS.
     --------

     3.1  MAKING OF PAYMENTS.

          (A) All payments and prepayments of principal of, or interest on, the
     Notes shall be made by  Borrowers to the Agent in immediately available
     funds for the account of the holders of the Notes pro rata according to the
     respective unpaid amounts of principal or interest, as the case may be,
     owed to such holders.  All payments of non-use fees shall be made by
     Borrowers to the Agent for the account of the Lenders pro rata according to
     their respective Percentages.  All such payments shall be made to the Agent
     at its office in Chicago, not later than 12:30 p.m. Chicago time, on the
     date due, and funds received after that hour shall be deemed to have been
     received by the Agent on the next following Business Day.  The Agent shall,
     on the Business Day a payment is deemed to be received in collected funds
     by it, remit to each Lender or other holder of a Note its share of such
     payment.

          (B) Unless Borrowers or a Lender, as the case may be, notify the Agent
     prior to the date on which it is scheduled to make payment to the Agent of
     (i) in the case of a Lender, the proceeds of a Loan under the Revolving
     Credit Facility or a Term Loan, or (ii) in the case of Borrowers, a payment
     of principal, interest or fees to the Agent for the account of the Lenders,
     that it does not intend to make such payment, the Agent may assume that
     such payment has been made.  The Agent may, but shall not be obligated to,
     make the amount of such payment available to the intended recipient in
     reliance upon such assumption.  If Borrowers have not in fact made such
     payment to the Agent, the Lenders shall, on demand by the Agent, repay to
     the Agent the amount so made available together with interest thereon in
     respect of each day during the period commencing on the date such amount
     was so made available by the Agent until the date the Agent recovers such
     amount at a rate per annum equal to the federal funds rate for such day.
     If any Lender has not in fact made such payment to the Agent (such a Lender
     herein called a "NON-FUNDING LENDER"), such Non-Funding Lender or Borrowers
     shall, on demand by the Agent, repay to the Agent the amount so made
     available together with interest thereon in respect of each day during the
     period commencing on the date such amount was so made available by the
     Agent until the date the Agent recovers such amount at a

                                       38
<PAGE>

     rate per annum equal to (i) in the case of payment by a Non-Funding Lender,
     an amount equal to $200 plus the federal funds effective rate for such day
     or (ii) in the case of payment by Borrowers, the interest rate applicable
     to the relevant Revolving Loan or Term Loan (it being understood and agreed
     that prior to making a request pursuant to this clause (ii) the Agent will
     use its best efforts to request the Lenders (other than a Non-Funding
     Lender) to reallocate such amount among the Lenders (other than a Non-
     Funding Lender) subject to Sections 2.1(A) or (B), as applicable.

     3.2  PAYMENT TERMS.

          (A) General.  All of the Liabilities shall be paid to Agent at the
     address set forth in Section 10.10.  Subject to the remainder of this
     Section 3.2 and Section 8.2, the Liabilities will be payable as follows:

              (i) accrued interest shall be payable in arrears on the
          applicable Interest Payment Date;

              (ii) fees, costs, expenses and similar charges shall be payable
          as and when provided for in this Agreement or the Ancillary
          Agreements;

              (iii) the then outstanding principal balance of the Revolving
          Credit Facility shall be payable in full on the Revolving Credit
          Termination Date; and

              (iv) the then outstanding principal balance of the Term Loan
          shall be payable in full on the Term Loan Maturity Date.

     Except as otherwise set forth herein (including, but not limited to Section
     2.10 hereof), Borrowers may prepay all or any portion of the Loans upon
     notice from Borrowers to Agent at least one (1) day before the date of
     prepayment, without penalty or premium, at any time and from time to time;
     provided, that, all prepayments of principal shall include interest accrued
     to the date of prepayment on the principal amount being prepaid.  After
     maturity (whether upon acceleration or otherwise) of any Liabilities,
     accrued interest on such Liabilities shall be payable upon demand.

          (B) Scheduled Reductions of Term Loan.  The Term Loan shall be payable
     in quarterly principal installments on the first Business Day of each of
     Borrowers' fiscal quarters, commencing on the first such day occurring
     after the Amortization Commencement Date such that the outstanding unpaid
     principal balance of the Term Loan shall amortize in twenty (20) equal
     quarterly installments of principal.  The quarterly payment amount shall be
     calculated by dividing the outstanding unpaid principal balance of the Term
     Loan on the Amortization Commencement Date by 20.  The principal amount of
     the Term Loan outstanding, and all accrued and unpaid interest with respect
     to the Term Loan, shall be due and payable on the Term Loan Maturity Date.

                                       39
<PAGE>

          (C) Mandatory Prepayment.  Borrowers shall not permit the aggregate
     principal amount of Loans outstanding under the Revolving Credit Facility
     at any time to exceed the Availability.  Borrowers agree, jointly and
     severally, to make such payments to Agent on such outstanding Loans which
     are necessary to cure any such excess within two Business Days after the
     occurrence thereof.  No Lender shall be under an obligation to make Loans
     under the Revolving Credit Facility during the period that any such excess
     exists or would result from making a Loan.  Any amount repaid under this
     Section 3.2(C) may, subject to the terms and conditions of this Agreement,
     be borrowed, repaid and borrowed again.

     3.3  LOCKBOX; COLLECTION OF ACCOUNTS AND PAYMENTS.

          (A) Lockbox.  Borrowers shall establish a special account as a lockbox
     in Borrowers' name with Agent, upon such terms as are required by Agent, to
     which Borrowers and their respective Subsidiaries will cause all Account
     Debtors to send all remittances on Accounts and all  customers party to Buy
     Back Agreements to send all remittances related to  any purchases by such
     customers pursuant to such Buy Back Agreements.  If received directly by a
     Borrower or a Subsidiary, such Borrower or Subsidiary will immediately
     deposit in such special account all remittances and proceeds of the
     Collateral in the identical form in which such payment was made, whether by
     cash or check.  Borrowers agree that upon the occurrence and during the
     continuation of a Default or an Event of Default, all payments made to such
     special account or otherwise received by Agent, whether on the Accounts, on
     any Buy Back Agreement or as proceeds of other Collateral or otherwise,
     will be the sole and exclusive property of Agent for the benefit of Agent
     and the Lenders and will be applied on account of the Liabilities.  So long
     as no Default or an Event of Default has shall have occurred and be
     continuing, Borrowers shall be entitled to direct the use of the funds
     maintained in such special account in accordance with the terms of this
     Agreement.  Two (2) Business Days after Agent's receipt of good funds,
     Agent will credit (conditional upon final collection) all payments received
     through the special account to the Liabilities.  Each Borrower, its
     Subsidiaries and any Affiliates, shareholders, directors, officers,
     employees, agents of such Borrower and its Subsidiaries and all Persons
     acting for or in concert with such Borrower shall, acting as trustee for
     Agent, receive, as the sole and exclusive property of Agent for the benefit
     of Agent and the Lenders, any monies, checks, notes, drafts or any other
     payments relating to or proceeds of Accounts, Buy Back Agreements or other
     Collateral which come into their possession or under their control and
     immediately upon receipt, shall remit the same or cause the same to be
     remitted, in kind, to Agent, at Agent's address set forth in Section 10.10.
     Borrowers agree, jointly and severally, to pay to Agent any and all
     reasonable fees, costs and expenses (if any) which Agent incurs in
     connection with opening and maintaining the special account and depositing
     for collection by Agent any check or item of payment received or delivered
     to Agent on account of the Liabilities.

                                       40
<PAGE>

          (B)  Limitation of Liability.

              (i) Agent shall have no liability to Borrowers other than that
          imposed upon it by law for its failure to exercise ordinary care with
          respect to the lockbox established hereunder.  Establishment of and
          substantial compliance with the procedures set forth herein or in
          other documents related to the lockbox by Agent shall be deemed to
          constitute the exercise of ordinary care.  A mere inadvertence or
          honest mistake of judgment will not constitute a failure to exercise
          ordinary care, and in no case will be deemed wrongful.  Agent shall
          not be liable for consequential, indirect or special damages, even if
          it has been advised of the possibility that they exist.  Agent shall
          have no liability for mail not bearing a complete and proper address.

              (ii) Agent shall not be liable for failure to perform any
          services under this Agreement within the time provided therefore in
          the event and to the extent that such failure arises out of war, civil
          commotion, an act of God, accident, interruption of power supplies or
          other utility or service, strikes or lockouts, delay in
          transportation, legislative action, government regulations or
          interferences, or any other event beyond Agent's control.

              (iii) In the event Agent becomes involved in controversies or
          litigation with any third party or parties involving or relating to
          the services provided for herein to Borrowers, Borrowers agree,
          jointly and severally, to indemnify Agent against any claims, costs,
          damages and liabilities, including reasonable attorneys' fees and
          court costs incurred by or asserted against Agent to or by such third
          party or parties, excluding claims, costs, damages and liabilities
          resulting from Agent's gross negligence or willful misconduct.  This
          indemnity shall survive the termination of this Agreement.

     3.4  APPLICATION OF PAYMENTS AND COLLECTIONS.  Subject to the rights of the
Borrowers to direct funds under Section 3.3(A), Borrowers irrevocably waive the
right to direct the application of payments and collections received by Agent
and/or any Lender from or on behalf of Borrowers, and Borrowers agree that Agent
shall have the continuing exclusive right to apply and reapply any and all such
payments and collections against the Liabilities in such manner as Agent may
deem appropriate, notwithstanding any entry by Agent upon any of its books and
records.  To the extent that Borrowers make a payment or payments to Agent or
Agent receives any payment or proceeds of the Collateral for Borrowers' benefit,
which payment(s) or proceeds are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other party under any bankruptcy act, state or federal law,
common law or equitable cause, then to the extent of such payment or proceeds
received, the Liabilities intended to be satisfied shall be revived and shall
continue in full force and effect, as if such payments or proceeds had not been
received by Agent.  Interest shall be payable out of the first collections
received with respect to any proceeds of Collateral.

                                       41
<PAGE>

     3.5  RECORDS.  All advances to Borrowers, and all other debits and credits
provided for in this Agreement, shall be evidenced by entries made by Agent in
its internal data control systems showing the date, amount and reason for each
such debit or credit.

4.   COLLATERAL; GENERAL TERMS.
     -------------------------

     4.1  SECURITY INTEREST.  To secure the prompt payment to each Lender of the
Liabilities, each Borrower grants to Agent, for the benefit of the Agent and the
Lenders, a continuing security interest in and to all of such Borrower's
Property including the following Property and interest in Property of such
Borrower, whether now owned or existing or to be acquired or arising and
wherever located:  (i) all Accounts, Inventory, Equipment, General Intangibles,
tax refunds, chattel paper, instruments, letters of credit, investment property,
including, without limitation, stocks, bonds, interests in limited liability
companies, partnership interests, securities, certificates of deposit, mutual
fund shares, securities entitlements, including, without limitation, all of each
Borrower's rights to any securities account, any free credit balance or other
money owing by any securities intermediary with respect to such account, all
securities and commodities held by Agent or any of its Affiliates, all commodity
contracts held by any Borrower and all commodity accounts held by any Borrower,
documents and documents of title evidencing or issued with respect to any of the
foregoing; (ii) all of such Borrower's deposit accounts (general or special)
with and credits and other claims against Agent or any Lender; (iii) all of such
Borrower's now owned or to be acquired monies, and any and all other property of
such Borrower now or to be coming into the actual possession, custody or control
of Agent, any Lender or any agent or affiliate of any Lender in any way or for
any purpose (whether for safekeeping, deposit, custody, pledge, transmission,
collection or otherwise); (iv) all insurance proceeds of or relating to any of
the foregoing; (v) all of such Borrower's books and records, including without
limitation customer lists, credit files, computer programs, printouts and other
materials, relating to any of the foregoing; and (vi) all accessions and
additions to, substitutions for, and replacements, products and proceeds of any
of the foregoing.

     4.2  DISCLOSURE OF SECURITY INTEREST.  Each Borrower shall make appropriate
entries upon its financial statements and books and records disclosing Agent's
security interest in the Collateral of such Borrower.

     4.3  SPECIAL COLLATERAL.  Immediately upon receipt by a Borrower of any
Collateral that is evidenced or secured by an agreement, chattel paper,
instrument or document, including, without limitation, promissory notes,
documents of title and warehouse receipts (the "SPECIAL COLLATERAL"), such
Borrower shall deliver the original thereof to Agent or to such agent of Agent
as Agent shall designate, together with appropriate endorsements, or other
specific evidence (in form and substance acceptable to Agent) of assignment
thereof to Agent.

     4.4  FURTHER ASSURANCES.  Each Borrower hereby irrevocably authorizes the
Agent at any time, and from time to time, to file in any jurisdiction any
initial financing statements and amendments thereto that (a) indicate the
Collateral (i) as all assets of each such Borrower or words of similar effect,
regardless of whether any particular asset comprised in the Collateral

                                       42
<PAGE>

falls within the scope of Article 9 of the Uniform Commercial Code of the
jurisdiction wherein such financing statement or amendment is filed, or (ii) as
being of an equal or lesser scope or within greater detail, and (b) contain any
other information required by Section 5 of Article 9 of the Uniform Commercial
Code of the jurisdiction wherein such financing statement or amendment is filed
regarding the sufficiency or filing office acceptance of any financing statement
or amendment, including (i) whether such Borrower is an organization, the type
of organization and any organization identification number issued to such
Borrower and (ii) in the case of a financing statement filed as a fixture filing
or indicating Collateral as as-extracted collateral or timber to be cut, a
sufficient description of real property to which the Collateral relates. Each
Borrower agrees to furnish any such information to the Agent promptly upon
request. Each Borrower further ratifies and affirms its authorization for any
financing statements and/or amendments thereto, previously filed by the Agent in
any jurisdiction.

     4.5  INSPECTION.  Each Borrower agrees to permit Agent and its duly
authorized representatives and agents, upon prior notice, during normal business
hours, and if no Default or Event of Default has occurred and is continuing, no
more than once per calendar year, to visit and inspect any of the Collateral of
such Borrower, corporate books and financial records of such Borrower, to
examine and make copies of the books of accounts and other financial records of
such Borrower, and to discuss the affairs, finances and accounts of such
Borrower with, and to be advised as to the same by, its officers, employees and
independent public accounts (and by this provision such Borrower hereby
authorizes such accountants to discuss with Agent the finances and affairs of
such Borrower); provided that after the occurrence of and during the continuance
of an Event of Default, such inspections may occur during normal business hours
without notice and at such times and intervals as Agent may designate.

     4.6  LOCATION OF COLLATERAL.  Borrowers' chief executive office, principal
places of business and all other offices and locations of the Collateral and
books and records related thereto (including, without limitation, computer
programs, printouts and other computer materials and records concerning the
Collateral) are set forth on Exhibit G.  Borrowers shall not remove their
respective books and records or the Collateral from any Eligible Collateral
Location (except to another Eligible Collateral Location and except for removal
of items of Inventory upon sale in accordance with Section 5.6) and shall not
change the location of their chief executive office, open any new offices
(provided however, that an employee of any Borrower working from such employee's
home shall not be deemed to be opening a new office) or relocate any of their
respective books and records or the Collateral except within the continental
United States of America with at least thirty (30) days' prior written notice
thereof to Agent.

     4.7  AGENT'S PAYMENT OF CLAIMS ASSERTED AGAINST BORROWERS.  Agent may, but
shall not be obligated to, at any time or times, in its sole discretion, and
without waiving any Event of Default or waiving or releasing any obligation,
liability or duty of Borrowers under this Agreement or the Ancillary Agreements,
pay, acquire or accept an assignment of any security interest, Lien, claim or
other encumbrance asserted by any Person against the Collateral.  All sums paid
by Agent under this Section 4.7, including all costs, fees (including without
limitation reasonable attorney's and paralegals' fees and court costs), expenses
and other charges relating

                                       43
<PAGE>

thereto, shall be payable by Borrowers, jointly and severally, to Agent on
demand and shall be additional Liabilities secured by the Collateral.

     4.8  LETTER OF CREDIT RIGHTS.  If any Borrower at any time is a beneficiary
under a letter of credit now or hereafter issued in favor of such Borrower, such
Borrower shall promptly notify Agent thereof and, at the request and option of
Agent, such Borrower shall, pursuant to an agreement in form and substance
satisfactory to Agent, either (i) arrange for the issuer and any confirmer of
such letter of credit to consent to an assignment to the Agent of the proceeds
of any drawing under the letter of credit or (ii) arrange for the Agent to
become the transferee beneficiary of the letter of credit, with the Agent
agreeing, in each case, that the proceeds of any drawing under the letter of
credit are to be applied as provided in this Agreement.

     4.9  COMMERCIAL TORT CLAIMS.  If any Borrower shall at any time hold or
acquire a Commercial Tort Claim, the Borrower shall immediately notify the Agent
in writing signed by such Borrower of the details thereof and grant to Agent in
such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance
reasonably satisfactory to Agent.

    4.10  ELECTRONIC CHATTEL PAPER AND TRANSFERABLE RECORDS.  If any Borrower
at any time holds or acquires an interest in any electronic chattel paper or any
"transferable record", as that term is defined in Section 201 of the federal
Electronic Signatures in Global and National Commerce Act, or in (S)16 of the
Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
such Borrower shall promptly notify Agent thereof and, at the request of Agent,
shall take such action as Agent may reasonably request to vest in Agent control
under Section 9-105 of the UCC of such electronic chattel paper or control under
Section 201 of the federal Electronic Signatures in Global and National Commerce
Act or, as the case may be, (S)16 of the Uniform Electronic Transactions Act, as
so in effect in such jurisdiction, of such transferable record.  The Agent
agrees with Borrowers that the Agent will arrange, pursuant to procedures
reasonably satisfactory to Agent and so long as such procedures will not result
in Agent's loss of control, for such Borrower to make alterations to the
electronic chattel paper or transferable record permitted under Section 9-105 of
the UCC or, as the case may be, Section 201 of the federal Electronic Signatures
in Global and National Commerce Act or (S)16 of the Uniform Electronic
Transactions Act for a party in control to make without loss of control, unless
an Event of Default has occurred and is continuing or would occur after taking
into account any action by such Borrower with respect to such electronic chattel
paper or transferable record.

5.   COLLATERAL; ACCOUNTS AND COLLATERAL MAINTENANCE.
     -----------------------------------------------

     5.1  VERIFICATION OF ACCOUNTS AND INVENTORY.  Any of Agent's officers,
employees or agents shall have the right, at any time or times following the
occurrence and during the continuation of a Default or an Event of Default, in
Agent's or Borrowers' name or in the name of a firm of independent certified
public accountants acceptable to Agent, during normal business hours, to verify
the validity, amount or any other matters relating to any Accounts and Inventory
by mail, telephone, telecopy or otherwise.

                                       44
<PAGE>

     5.2  ASSIGNMENTS, RECORDS AND ACCOUNTS AND INVENTORY REPORT.  Each Borrower
shall keep accurate and complete records of its Accounts.  Borrowers shall
deliver to Agent, upon demand a copy of (and after the occurrence of and during
the continuance of an Event of Default, the original of) all documents relating
to the Accounts and such other matters and information relating to the status of
then existing Accounts as Agent shall reasonably request.

     5.3  NOTICE REGARDING DISPUTED ACCOUNTS.  Borrowers shall give Agent prompt
notice of any dispute in excess of $100,000 in respect of any Account.  Each
such notice shall identify any such disputed Account and disclose with respect
thereto, in reasonable detail, the reason for the dispute, all claims related
thereto and the amount in controversy.  Agent shall promptly notify each Lender
of receipt of such a notice.

     5.4  SALE OR ENCUMBRANCE OF ACCOUNTS.  Each Borrower shall not, without the
prior written consent of the Agent, sell, transfer, grant a security interest in
or otherwise dispose of or encumber any of its Accounts to any Person other than
Agent, except for the Permitted Liens.

     5.5  EQUIPMENT.  Each Borrower shall keep and maintain in good operating
condition (normal wear and tear excepted), and repair and make all necessary
replacements and renewals to, the Equipment so that the value and operating
efficiency thereof shall at all times be maintained and preserved, and keep such
Collateral only at an Eligible Collateral Location.

     5.6  NOTICE OF LOSS; PROHIBITION ON SALE OR DISPOSITION.  Borrowers shall
immediately notify Agent of any material loss or depreciation in value of the
Collateral.  Borrowers shall not sell, transfer or otherwise dispose of any
Collateral; provided, that, until notice is given by Agent to Borrowers,
Borrowers may sell Inventory in the ordinary course of business substantially in
the same manner as now conducted, but a sale in the ordinary course of business
shall not include any transfer or sale in satisfaction, partial or complete, of
a debt owed by a Borrower; provided further that Borrowers may transfer
Collateral other than Inventory so long as the aggregate sales price of such
Collateral sold during any 12 month period shall not exceed $100,000.

     5.7  COMPLIANCE WITH BUY BACK AGREEMENTS.  Each Borrower shall fully comply
with all terms and conditions of any Buy Back Agreements to which such Borrower
is a party.

6.   WARRANTIES AND REPRESENTATIONS.
     ------------------------------

     6.1  GENERAL WARRANTIES AND REPRESENTATIONS.  Each Borrower warrants and
represents  to Agent and the Lenders that:

          (A) (i) SalesLink Corporation is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     its state issued organizational identification number is 2721217, (ii)
     InSolutions, Incorporated, is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     its state issued organizational identification number is 2903046, (iii) On-
     Demand Solutions Inc. is a corporation duly organized, validly existing and
     in

                                       45
<PAGE>

     good standing under the laws of the State of Massachusetts and its state
     issued organizational identification number is 3328616, (iv) Pacific Direct
     Marketing Corp. is a corporation duly organized, validly existing and in
     good standing under the laws of the State of California and its state
     issued organizational identification number is 1585724 and (v) SalesLink
     Mexico Holding Corp., is a corporation duly organized, existing and in good
     standing under the laws of the state of Delaware and its state issued
     organizational number is 3111152. Each Borrower is qualified or licensed as
     a foreign corporation to do business in all other states in which the laws
     thereof require such Borrower to be so qualified or licensed except where a
     lack of such qualification or licensing will not have a material adverse
     effect on the business, operations or financial condition of such Borrower;

          (B) Such Borrower has not used, during the five (5) year period
     preceding the date of this Agreement, and on the date hereof does not
     intend to use, any other corporate or fictitious name, except as disclosed
     in Exhibit H;

          (C) Such Borrower has the right and power and is duly authorized and
     empowered to enter into, execute, deliver and perform this Agreement and
     the Ancillary Agreements;

          (D) The execution, delivery and performance by such Borrower of this
     Agreement and the Ancillary Agreements shall not, by its execution or
     performance, the lapse of time, the giving of notice or otherwise,
     constitute a violation of any applicable law, rule, regulation, judgment,
     order or decree applicable to such Borrower or its assets or constitute a
     breach of any provision contained in such Borrower's charter or by-laws or
     contained in any material agreement, instrument, indenture or other
     document to which such Borrower is now a party or by which it or any of its
     property is bound;

          (E) Such Borrower's use of the proceeds of any advances made by each
     Lender hereunder are, and will continue to be, legal and proper corporate
     uses (duly authorized by its board of directors, in accordance with any
     applicable law, rule or regulation) and such uses are consistent with all
     applicable laws, rules and regulations, as in effect as of the date hereof;

          (F) Such Borrower has, and is current and in good standing with
     respect to, all material governmental approvals, permits, certificates,
     inspections, consents and franchises necessary to conduct and to continue
     to conduct its business and its intended business and to own or lease and
     operate its properties as now owned or leased and operated by it;

          (G) None of such approvals, permits, certificates, consents or
     franchises contains any term, provision, condition or limitation more
     burdensome than such as are generally applicable to Persons engaged in the
     same or similar business as such Borrower;

                                       46
<PAGE>

          (H) Such Borrower now has capital sufficient to carry on its business
     and transactions and all businesses and transactions in which it is about
     to engage and is now able to pay its debts as they mature and such Borrower
     now owns property the fair saleable value of which is greater than the
     amount required to pay such Borrower's debts;

          (I) Except as disclosed in the Financials, (i) there is no litigation,
     suit, action, proceeding, inquiry or investigation pending or, to the best
     of such Borrower's knowledge, threatened against such Borrower which if
     unfavorably determined would materially adversely affect the transactions
     contemplated hereby, or such Borrower's property, assets, operations or
     condition (financial or otherwise) (except, in the case of Financials
     delivered to Agent on or prior to the date of this Agreement, as shown on
     Exhibit I), and (ii) such Borrower has no Indebtedness and has not
     guaranteed the obligations of any other Person (except for Permitted Debt);

          (J) (i) There are no strikes, work stoppages, labor disputes
     decertification petitions, union organizing efforts, grievances or other
     claims pending or, to such Borrower's knowledge, threatened in writing,
     between such Borrower and any of its employees, other than employee
     grievances arising in the ordinary course of business which, in the
     aggregate, would not have a material adverse effect on such Borrower and
     (ii) to the best of such Borrower's knowledge, such Borrower has no
     obligation under any collective bargaining agreement or any employment
     agreement.  To such Borrower's knowledge, there is no organizing activity
     pending or threatened in writing by any labor union or group of employees.
     There are no representation proceedings pending or threatened with the
     National Labor Relations Board or other applicable governmental authority,
     and no labor organization or group of employees has made a pending demand
     for recognition.  There are no material complaints or charges pending or,
     to such Borrower's knowledge, threatened to be filed with any governmental
     authority or arbitrator based on, arising out of, in connection with or
     otherwise relating to the employment or termination of employment by such
     Borrower of any individual or group of individuals which, if decided
     adversely to such Borrower, would have a material adverse effect on such
     Borrower;

          (K) Such Borrower has good, indefeasible and merchantable title to and
     ownership of its Collateral, free and clear of all Liens, claims, security
     interests and other encumbrances, except those of Agent and Permitted
     Liens;

          (L) Such Borrower is not in violation of any applicable statute, rule,
     regulation or ordinance of any governmental entity, including, without
     limitation, the United States of America, any state, city, town,
     municipality, county or of any other jurisdiction, or of any agency
     thereof, in any respect materially and adversely affecting the Collateral
     or such Borrower's business, property, assets, operations or condition,
     financial or other;

                                       47
<PAGE>

          (M) Such Borrower is not in default under any indenture, loan
     agreement, mortgage, lease, trust deed, deed of trust or other similar
     agreement relating to the borrowing of monies to which it is a party or by
     which it or any of its property is bound;

          (N) The Financials fairly present in all material respects the assets,
     liabilities and financial condition and results of operations of such
     Borrower and such other Persons as are described therein as of the stated
     dates; there are no omissions or other facts or circumstances which are or
     may be material and there (i) has been no material and adverse change in
     the assets, liabilities or financial or other condition of such Borrower or
     any such Person since the date of the Financials and (ii) exists no equity
     or long term investments in or outstanding advances to any Person not
     reflected in the Financials;

          (O) Neither such Borrower nor any Subsidiary has received a notice to
     the effect that it is not in full compliance with any of the requirements
     of ERISA and the regulations promulgated thereunder and, to the best of its
     knowledge, there exists no event described in Section 4043 of ERISA,
     excluding subsections 4043(b)(2) and 4043(b)(3) ("REPORTABLE EVENT");

          (P) Such Borrower has filed all federal, state and local tax returns
     and other reports, or has been included in consolidated returns or reports
     filed by an Affiliate, which such Borrower is required by law, rule or
     regulation to file and all Charges that are due and payable have been paid,
     except for Charges being contested in good faith and for which adequate
     reserves are being maintained;

          (Q) Such Borrower's execution and delivery of this Agreement and the
     Ancillary Agreements do not directly or indirectly violate or result in any
     violation of the Securities Exchange Act of 1934, as amended, or any
     regulations issued pursuant thereto, including without limitation,
     Regulation U, T or X of the Board of Governors of the Federal Reserve
     System (12 CFR 221, 207, 220 and 224, respectively) and Borrower does not
     own or intend to purchase or carry any "MARGIN SECURITY," as defined in
     such Regulations;

          (R) Except as set forth on Exhibit J, as of the date of this Agreement
     such Borrower has no Subsidiaries and does not own an equity interest in
     any other Person;

          (S) Such Borrower has no knowledge of any fact or circumstance which
     would impair the validity or collectibility of any material amount of its
     Accounts or General Intangibles;

          (T) None of such Borrower's Collateral has been pledged or sold to any
     other Person or otherwise encumbered, such Borrower is the owner of its
     Collateral free of all Liens and encumbrances except those of Agent and
     except for the Permitted Liens and no financing statement concerning the
     Collateral, except any filed on behalf of Agent and those relating to
     Permitted Liens;

                                       48
<PAGE>

          (U) To the best of such Borrower's knowledge, each property (including
     underlying ground water), operation and facility that such Borrower
     operates or controls is in compliance with all statutes, judicial or
     administrative orders, licenses, permits and governmental rules and
     regulations applicable to them, including, without limitation,
     Environmental Laws, the noncompliance with which is reasonably likely to
     have a material adverse effect on the financial condition, continued
     operations or Property of such Borrower;

          (V) Such Borrower possesses adequate copyrights, patents, trademarks,
     trade secrets and computer software to conduct its business and all such
     intellectual property (other than computer software and trade secrets) in
     the possession of such Borrower as of the date of this Agreement is listed
     on Schedule 6.1(V); and

          (W) Neither Pacific Direct Marketing Corp., a California corporation,
     nor any other Borrower or Affiliate of any of them is in any way associated
     with or related to The Lake Group, Inc., d/b/a Pacific Direct, Lake
     Graphics and Elan Resources, which filed bankruptcy in the Northern
     District of California Case No. 93-30351.

     6.2  ACCOUNT WARRANTIES AND REPRESENTATIONS.  Each Borrower warrants and
represents to Agent and each Lender that such Agent and such Lender may rely on
all statements, warranties and representations made by such Borrower on or with
respect to any Accounts and Inventory Report and, unless otherwise indicated in
writing by such Borrower, that:

          (A) Such Borrower's Accounts are genuine, are in all respects what
     they purport to be, are not reduced to a judgment and, if evidenced by any
     instrument, item of chattel paper, agreement, contract or documents, are
     evidenced by only one executed original instrument, item of chattel paper,
     agreement, contract, or document, which original has been endorsed and
     delivered to Agent;

          (B) Such Borrower's Accounts represent undisputed, bona fide
     transactions completed in accordance with the terms and provisions
     contained in any related documents;

          (C) The amounts shown on any Accounts and Inventory Report, and all
     invoices and statements delivered to Agent with respect to any Account, are
     actually and absolutely owing to such Borrower and are not contingent for
     any reason;

          (D) Except as may be disclosed on such Accounts and Inventory Report,
     there are no setoffs, counterclaims or disputes existing or asserted with
     respect to any Accounts included on an Accounts and Inventory Report, and
     such Borrower has not made any agreement with any Account Debtor for any
     deduction from such Account, except for discounts or allowances allowed by
     such Borrower in the ordinary course of

                                       49
<PAGE>

     its business for prompt payment, which discounts and allowances have been
     disclosed to Agent and are reflected in the calculation of the invoice
     related to such Account;

          (E) To the best of such Borrower's knowledge, there are no facts,
     events or occurrences which in any way impair the validity or enforcement
     of any of the Accounts or tend to reduce the amount payable thereunder from
     the amount of the invoice shown on any Accounts and Inventory Report, and
     on all contracts, invoices and statements delivered to Agent with respect
     thereto;

          (F) To the best of such Borrower's knowledge, all Account Debtors are
     Solvent and had the capacity to contract at the time any contract or other
     document giving rise to or evidencing the Accounts was executed; and

          (G) To the best of such Borrower's knowledge, there are no proceedings
     or actions which are threatened in writing or pending against any Account
     Debtor which might result in any material adverse change in such Account
     Debtor's financial or other condition.

     6.3  AUTOMATIC WARRANTY AND REPRESENTATION AND REAFFIRMATION OF WARRANTIES
AND REPRESENTATIONS.  Each request for a Loan made by Borrowers pursuant to this
Agreement or the Ancillary Agreements shall constitute (i) an automatic warranty
and representation by Borrowers to Agent and each Lender that there does not
then exist a Default or an Event of Default and (ii) a reaffirmation as of the
date of such request of all of the warranties and representations of each
Borrower contained in this Agreement and in the Ancillary Agreements.

     6.4  SURVIVAL OF WARRANTIES AND REPRESENTATIONS.  Each Borrower covenants,
warrants and represents to Agent and each Lender that all representations and
warranties of such Borrower contained in this Agreement and the Ancillary
Agreements shall be true at the time of such Borrower's execution of this
Agreement and the Ancillary Agreements, and shall survive the execution,
delivery and acceptance by the parties and the closing of the transactions
described in this Agreement.  Each Borrower and Agent and each Lender expressly
agree that any misrepresentation or breach of any representation or warranty
whatsoever contained in this Agreement or in any of the Ancillary Agreements
shall be deemed material.

7.   COVENANTS AND CONTINUING AGREEMENTS.
     -----------------------------------

     7.1  FINANCIAL COVENANTS.

              (i) Cash Flow Leverage. Borrowers shall maintain, on the last day
          of each fiscal quarter of Borrowers and their Subsidiaries, other than
          Twin Solutions, LLC, through and including the date of termination of
          this Agreement, a Cash Flow Leverage Ratio of not more than 1.5:1.0.

              (ii) Indebtedness to Tangible Net Worth. Borrowers shall maintain,
          on the last day of each fiscal quarter of Borrowers and their
          Subsidiaries, other than Twin

                                       50
<PAGE>

          Solutions, LLC, through and including the date of termination of this
          Agreement, an Indebtedness to Tangible Net Worth Ratio of not more
          than 2.5:1.0.

          (iii)  Debt Service Coverage Ratio.  Borrowers shall not permit the
     Debt Service Coverage Ratio to be less than: (a) 1.5:1.0 on July 31, 2002,
     (b) 1.5:1.0 on July 31, 2003 and (c) 1.75:1.0 of July 31, 2004 and on the
     last day of each fiscal year of Borrowers and their Subsidiaries, other
     than Twin Solutions, LLC, thereafter.

     7.2  AFFIRMATIVE COVENANTS.  Each Borrower covenants, unless at any time
the Required Lenders shall otherwise expressly consent in writing, it shall:

          (A) Fees and Costs.  Pay to Agent on demand, any and all reasonable
     fees, costs or expenses which Agent or any Lender incurs arising out of or
     in connection with (i) the forwarding to Borrowers or any other Person on
     behalf of Borrowers, by Agent of proceeds of Loans made to Borrowers
     pursuant to this Agreement and (ii) the depositing for collection by Agent,
     of any check or item of payment received or delivered to Agent on account
     of the Liabilities;

          (B) Insurance.  At its sole cost and expense, keep and maintain and
     cause each Subsidiary to keep and maintain the Collateral, its other assets
     and its business insured in such amounts and against loss or damage by
     fire, theft, explosion, sprinklers and all other hazards and risks
     (including business interruption) as is ordinarily insured against by other
     owners or users of such properties in similar businesses and notify Agent
     promptly of any event or occurrence causing a material loss or decline in
     value of the Collateral and the estimated (or actual, if available) amount
     of such loss or decline;

          (C) Financial Reports.  Keep books of account and prepare financial
     statements and furnish to Agent and each Lender the following (all of the
     foregoing and following to be kept and prepared in accordance with
     generally accepted accounting principles applied on a basis consistent with
     the Financials, unless Borrowers' independent certified public accountants
     concur in any changes therein and such changes are disclosed to Agent and
     are consistent with then generally accepted accounting principles):

               (i) as soon as available, but not later than ninety (90) days
          after the close of each fiscal year of Borrowers, (a) financial
          statements of Borrowers and Subsidiaries prepared on a consolidated
          basis (including a balance sheet, statement of income and retained
          earnings and cash flow, all with supporting footnotes) as at the end
          of such year and for the year then ended, all in reasonable detail as
          requested by Agent and audited by a firm of independent certified
          public accountants of recognized standing selected by Borrowers and
          approved by Agent, together with an unqualified opinion thereon from
          such certified public accountants, (b) internally prepared financial
          statements of Borrowers and Subsidiaries prepared on a consolidating
          basis by business line and (c) a Compliance Certificate for the last
          month of such fiscal year of Borrowers;

                                       51
<PAGE>

               (ii) as soon as available, but no later than forty-five (45) days
          after the end of each fiscal quarter of Borrowers, a Compliance
          Certificate for such period (except as required to be delivered in
          Section 7.2(C)(i));

               (iii) as soon as available, but no later than thirty (30) days
          after the end of each month of each fiscal year of Borrowers,
          internally prepared consolidated financial statements of Borrowers and
          Subsidiaries (including a balance sheet, statement of income and
          retained earnings and cash flow) as at the end of and for the portion
          of Borrowers' fiscal year then elapsed, all in reasonable detail as
          requested by Agent and certified by Borrowers' principal financial
          officer as prepared in accordance with generally accepted accounting
          principles and fairly presenting in all material respects the
          financial position and results of operations of Borrowers and
          Subsidiaries for such period (subject to normal year-end audit
          adjustments and omission of footnotes);

               (iv) such other data and information (financial and other) as
          Agent or any Lender, from time to time, may reasonably request,
          bearing upon or related to the Collateral, Borrowers' or any
          Affiliate's financial condition or results of its operations, or the
          financial condition of any Person who is a guarantor of any of the
          Liabilities;

               (v) within 15 Business Days after the last day of each month of
          each fiscal year of Borrowers, Borrowers shall furnish to Agent a
          properly completed and executed certificate ("BORROWING BASE
          CERTIFICATE"), in a form provided by Agent, setting forth a
          calculation of the Borrowing Base as at the last day of such month;
          and

               (vi) within 15 Business Days after the last day of each month of
          each fiscal year of Borrowers, an Accounts and Inventory Report;
          provided, however, that in the event loans outstanding under the
          Revolving Credit Facility are less than $5,000,000, Borrowers shall
          not be required to provide the information set forth in (iv) of the
          definition of "ACCOUNTS AND INVENTORY REPORT."

          (D) Litigation and Other Events.  Notify Agent and each Lender,
     promptly upon such Borrower's learning of: (i) the institution or threat of
     any litigation, suit, action, inquiry, investigation or administrative
     proceeding which, if adversely determined, could reasonably be expected to
     materially and adversely affect the operations, financial condition or
     business of such Borrower or any Affiliate or which may affect Agent's
     security interest in the Collateral; (ii) the occurrence of an Event of
     Default or Default; (iii) any Borrowers use of any other corporate or
     fictitious name other than as currently used; (iv) any Borrowers formation
     of any Subsidiary; or (v) any Borrowers obtaining any copyrights, patents,
     trademarks and similar intellectual property;

                                       52
<PAGE>

          (E) Bank Accounts; Compensating Balances.  Maintain all of its primary
     bank accounts and its primary banking relationship with Agent.  Without
     affecting such obligation to maintain such balances, if such Borrower fails
     to maintain such balances, then on the last day of such calendar quarter of
     each year such Borrower shall pay to Agent in arrears, immediately upon
     demand, a reasonable fee in lieu of balances as determined by Agent which
     may be charged at Agent's option to any bank account of any Borrower with
     Agent.  Neither the maintenance of balances nor payment of any fees shall
     obligate Agent or any Lender to make any advances under the Revolving
     Credit Facility or the Term Loan.  Any balances in bank accounts and fees
     shall compensate, and be deemed to compensate, Agent for the cost incurred
     by Agent in being prepared to respond to requests for credit under such
     facility and for costs incurred by Agent in processing and servicing such
     accounts;

          (F) Reserve Costs.  Upon demand by Agent or by any Lender, reimburse
     Agent or such Lender for any reasonable additional costs incurred by Agent
     or such Lender if at any time after the date of this Agreement any law,
     regulation, treaty or any change in any law, regulation, treaty or the
     interpretation thereof by any governmental agency, central bank or other
     fiscal, monetary or other authority having jurisdiction of Agent or such
     Lender shall impose, modify or deem applicable any reserve (except reserve
     requirements taken into account by Agent or such Lender in calculating the
     Interest Rate) and/or special deposit requirement against Agent or such
     Lender or impose any other condition with respect to the loans or other
     financial accommodations the result of which is to increase the cost to
     Agent or such Lender in making or maintaining the Loans or to reduce the
     amount of principal or interest received or receivable by Agent or such
     Lender with respect to the Liabilities.  Borrowers' reimbursement
     obligation shall apply only to those costs which directly result from the
     imposition of such requirement and shall begin as of the date of any such
     change in law, treaty, rule or regulation.  Notwithstanding the preceding,
     such Borrower shall not be required to pay any such additional costs which
     could be avoided by Agent or such Lender with the exercise of reasonable
     conduct and diligence;

          (G) Existence and Status.  Maintain and preserve and cause each
     Subsidiary to maintain and preserve its existence as a limited partnership,
     limited liability company or corporation, as applicable, in its state of
     formation and all rights, privileges, licenses, copyrights, trademarks,
     trade names, franchises and other authority to the extent material and
     necessary for the conduct of its business in the ordinary course as
     conducted from time to time.  Such Borrower shall not take any action or
     suffer any action to be taken by others and will not permit any Subsidiary
     to take any action or suffer any action which will alter, change or destroy
     its status as a limited partnership, limited liability company or
     corporation;

          (H) Use of Proceeds.  Use proceeds of the Loans as follows:  (a) the
     proceeds of Loans under the Revolving Credit Facility shall be used to
     refinance certain existing debt and to finance working capital of Borrowers
     and their Subsidiaries but in no event may proceeds of any Loan made under
     the Revolving Credit Facility be (i) used to finance

                                       53
<PAGE>

     operations of Borrowers or any of their Subsidiaries outside of the United
     States or (ii) invested, lent or otherwise contributed to any Subsidiary of
     any of the Borrowers, including, without limitation SalesLink de Mexico, S.
     de R.L. de C.V., a Mexico corporation, in either case until such time as
     Agent shall have received evidence satisfactory to it, in its reasonable
     discretion, of the creation, perfection and the relative priority of a
     security interest in the Property of such Borrower or Subsidiary located
     outside of the United States including, such Borrower's or Subsidiary's
     Inventory and Accounts located outside of the United States together with
     an opinion of counsel to that effect acceptable to Agent in its reasonable
     discretion and (b) the proceeds of Term Loan shall be used to refinance
     certain existing debt and to recover Capital Expenditures made by
     Borrowers; but in no event may proceeds of any Loan made under the Term
     Loan be used to finance operations of Borrowers or any Subsidiaries outside
     of the United States or invested, lent or otherwise contributed to any
     Subsidiary of any of the Borrowers, including, without limitation SalesLink
     de Mexico, S. de R.L. de C.V., a Mexico corporation. In no event may
     proceeds of any Loan made either under the Revolving Credit Facility or the
     Term Loan be invested, lent or otherwise contributed to Twin Solutions LLC;
     and

          (I) Environmental Covenant.  (a) Use and operate and cause each
     Subsidiary to use and operate all of its facilities and properties in
     material compliance with all Environmental Laws, keep all necessary
     permits, approvals, certificates, licenses and other authorizations
     relating to environmental matters in effect and remain in material
     compliance therewith, and handle all hazardous substances and waste in
     material compliance with all applicable Environmental Laws; (b) immediately
     notify Agent and each Lender and provide copies upon receipt of all written
     claims, complaints, notices or inquiries relating to the condition of its
     or any Subsidiary's facilities and properties or compliance with
     Environmental Laws, and shall (i) promptly cure and have dismissed with
     prejudice to the satisfaction of Agent any actions and proceedings relating
     to compliance with Environmental Laws or (ii) contest any such actions or
     proceedings in good faith by appropriate proceedings and establish adequate
     reserves therefor; and (c) provide such information and certifications
     which Agent may reasonably request from time to time to evidence compliance
     with this subsection.

     7.3  NEGATIVE COVENANTS.  Each Borrower covenants that, unless at any time
the Required Lenders shall otherwise expressly consent in writing, it shall not:

          (A) Capital Expenditures.  Collectively with the other Borrowers, make
     Capital Expenditures in an amount greater than $8,000,000 in any fiscal
     year;

          (B) Mergers and Acquisitions.  (i) Liquidate, dissolve or merge or
     consolidate with or acquire any Person, (ii) permit any Subsidiary to
     liquidate, dissolve or merge or consolidate with or acquire any Person
     other than an acquisition that is a Permitted Acquisition or (iii) lose
     control (as such term is defined in the definition of "AFFILIATE") of any
     Subsidiary, except that any Borrower may merge or consolidate with any
     other Borrower;

                                       54
<PAGE>

          (C) Investments.  (i) Except in respect of other Borrowers and other
     than in the ordinary course of its business, make any investment in the
     securities of any Person other than to a Subsidiary as permitted under
     Section 7.2(H); provided, however, that Borrowers may make the Permitted
     Acquisition subject to the terms contained herein or (ii) use or permit any
     proceeds of the Loans to be used, either directly or indirectly, for the
     purpose, whether immediate, incidental or ultimate, of "purchasing or
     carrying" any margin stock (such Borrower will furnish to Agent upon
     request, a statement in conformity with the requirements of Federal Reserve
     Form U-1 referred to in Regulation U of the Federal Reserve Board);

          (D) Loans.  Make any loans or other advances of money (other than
     salary) to any other Borrower, or any Affiliate, officers, directors,
     employees or agents of Affiliates or such Borrower or to any other Person,
     except for such loans or advances to employees in the ordinary course of
     business consistent with past practice and loans or advances to any other
     Borrower that are subordinated to the Liabilities on terms satisfactory to
     Agent;

          (E) Capital Structure and Business. Make any material change in such
     Borrower's capital structure or in any of its business objectives, purposes
     and operations or permit any Subsidiary to make any material change in such
     Subsidiary's capital structure or in any of its business objectives,
     purposes and operations;

          (F) Affiliate Transactions.  Enter into, or be a party to, any
     transaction with any Affiliate (other than Subordinated Debt and any arms-
     length commercial transaction with uBid.com, Inc.) or partner, shareholder,
     director or officer of such Borrower or an Affiliate, except in the
     ordinary course of and pursuant to the reasonable requirements of such
     Borrower's business and upon fair and reasonable terms which are fully
     disclosed to Agent and are no less favorable to such Borrower than could be
     obtained in a comparable arm's length transaction with a Person not an
     Affiliate or partner, shareholder, director or officer of such Borrower or
     an Affiliate;

          (G) Adverse Transactions.  (i) Enter or permit any Subsidiary to enter
     into any transaction which materially and adversely affects the Collateral
     or such Borrower's ability to repay the Agent or any Lender the Liabilities
     or (ii) permit or agree to any extension, compromise or settlement or make
     any change or modification of any kind or nature with respect to any
     Account, including any of the terms relating thereto, except in accordance
     with such Borrower's current credit collection policy as disclosed to Agent
     and each Lender;

          (H) Guarantees.  Guarantee or otherwise, in any way, become liable or
     permit any Subsidiary to become liable with respect to the obligations or
     liabilities of any other Person, except by endorsement of instruments or
     items of payment for deposit to the general account of such Borrower or for
     delivery to Agent on account of the Liabilities;

                                       55
<PAGE>

          (I) Other Liens; Transfer of Assets.  Except for Permitted Liens and
     as otherwise expressly permitted in this Agreement or in the Ancillary
     Agreements, pledge, mortgage, grant a security interest in or permit to
     exist a Lien on, encumber, assign, sell, lease, license or otherwise
     dispose of or transfer, whether by sale, merger, consolidation,
     liquidation, dissolution, or otherwise, any of such Borrower's assets or
     permit any Subsidiary to pledge, mortgage, grant a security interest in or
     permit to exist a Lien on, encumber, assign, sell or otherwise dispose of
     or transfer, whether by sale, merger, consolidation, liquidation,
     dissolution or otherwise, any of such Subsidiary's assets;

          (J) Other Indebtedness.  Incur or permit any Subsidiary to incur any
     Indebtedness other than Permitted Debt;

          (K) Asset Purchase.  Purchase or otherwise acquire or permit any
     Subsidiary to acquire all or substantially all or a substantial portion of
     the assets of any Person (or any division or line of business of any
     Person) other than a Permitted Acquisition;

          (L) Organic Documents.  Amend or otherwise modify or permit any
     Subsidiary to amend or otherwise modify any material term of its
     certificate of limited partnership or agreement of limited partnership or
     charter and by-laws or other organic document, as applicable, in effect on
     the date hereof or on the date of its later formation except for
     amendments, modifications or waivers that are not adverse in any way to
     Agent or Lenders;

          (M) Restriction on Redemptions and Dividend Distributions.  (a)
     Directly or indirectly purchase, redeem or otherwise acquire or retire any
     interest of any shareholder of such Borrower, (b) make or declare any
     partial or full liquidating distributions to any shareholder of such
     Borrower with respect to such shareholder's interest in such Borrower or
     (c) make or declare any non-liquidating distributions to such Borrower's
     shareholders; or

          (N) Restrictions on Activities for SalesLink Mexico.  Until such time
     as SalesLink Mexico shall provide the Agent with evidence of insurance
     required by Section 7.2(B) hereof, SalesLink Mexico shall conduct no
     operations other than to hold the stock certificates of any Subsidiary of
     SalesLink Mexico.

     7.4  CONTESTING CHARGES.  Notwithstanding anything to the contrary in this
Agreement, a Borrower may dispute any Charges without prior payment thereof, so
long as such non-payment will not cause a Lien except a Permitted Lien to attach
to such Borrower's assets, and provided that such Borrower shall give Agent and
each Lender prompt notice of such dispute and shall be diligently contesting the
same in good faith and by an appropriate proceeding and there is no danger of a
loss or forfeiture of any of the Collateral and provided further that, if such
disputed Charges are potentially or actually in excess of $10,000 in the
aggregate, such Borrower shall give Agents and each Lender such additional
collateral and assurances as Agent and such Lender, in their sole discretion,
deems necessary under the circumstances, immediately upon demand by Agent and
such Lender.

                                       56
<PAGE>

     7.5  PAYMENT OF CHARGES.  Subject to the provisions of Section 7.4, a
Borrower shall pay promptly when due all of the Charges.  In the event such
Borrower, at any time or times, shall fail to pay the Charges or to promptly
obtain the satisfaction of such Charges, such Borrower shall promptly so notify
Agent and each Lender and Agent and such Lender may, without waiving or
releasing any obligation or liability of such Borrower under this Agreement or
any Event of Default, in its sole discretion, at any subsequent time or times,
make such payment or any part thereof (but shall not be obligated so to do), or
obtain such satisfaction and take any other action which Agent or such Lender
deems advisable.  All sums so paid by Agent or any Lender and any expenses,
including reasonable attorneys' fees, court costs, expenses and other related
charges, shall be payable by such Borrower to Agent or such Lender upon demand
and shall be additional Liabilities.

     7.6  INSURANCE; PAYMENT OF PREMIUMS.  All policies of insurance on the
Collateral or otherwise required under this Agreement shall be in form and
amount satisfactory to Agent and with insurers reasonably recognized as adequate
by Agent.  Borrowers shall deliver to Agent the original (or a certified copy)
of each policy of insurance, or, in lieu thereof, certificates of such policies
of insurance satisfactory to Agent, and evidence of payment of all premiums
therefor and shall deliver renewals of all such policies to Agent at least
thirty (30) days prior to their expiration dates.  Such policies of insurance
shall contain an endorsement, in form and substance acceptable to Agent, showing
all losses payable to Agent for the benefit of each Lender.  Such endorsement
shall provide that the insurance companies will give Agent at least thirty (30)
days' prior written notice before any such policy shall be altered or canceled
and that no act or default of Borrowers or any other Person shall affect the
right of Agent to recover under such policy in case of loss or damage.  Each
Borrower hereby directs all insurers under such policies to pay all proceeds
directly to Agent after the occurrence of an Event of Default.  Each Borrower
irrevocably makes, constitutes and appoints Agent (and all officers, employees
or agents designated by Agent) as such Borrower's true and lawful attorney and
agent-in-fact for the purpose of making, settling and adjusting claims under
such policies (provided that Agent shall consult with such Borrower prior to
finally making, settling or adjusting claims under such policies), endorsing the
name of such Borrower in writing or by stamp on any check, draft, instrument or
other item of payment for the proceeds of such policies and for making all
determinations and decisions with respect to such policies.  If such Borrower
shall fail to obtain or maintain any of the policies required by this Section
7.6 or to pay any premium relating thereto, then Agent or any Lender, without
waiving or releasing any obligation or Event of Default by such Borrower
hereunder, may (but shall be under no obligation to do so) obtain and maintain
such policies of insurance and pay such premiums and take any other action which
Agent or such Lender deems advisable.  All sums so disbursed by Agent or any
Lender, including reasonable attorneys' fees, court costs, expenses and other
charges relating thereto, shall be payable by Borrowers to Agent or such Lender
upon demand and shall be additional Liabilities.

     7.7  SURVIVAL OF OBLIGATIONS UPON TERMINATION OF AGREEMENT.  Except as
otherwise expressly provided for in this Agreement and in the Ancillary
Agreements, no termination or cancellation (regardless of cause or procedure) of
this Agreement or the Ancillary

                                       57
<PAGE>

Agreements shall in any way affect or impair the powers, obligations, duties,
rights, and liabilities of Borrowers or Agent or any Lender in any way with
respect to (i) any transaction or event occurring prior to such termination or
cancellation, (ii) the Collateral, or (iii) any of the undertakings, agreements,
covenants, warranties and representations of Borrowers or Agent or any Lender
contained in this Agreement or the Ancillary Agreements. All such undertakings,
agreements, covenants, warranties and representations shall survive such
termination or cancellation.

8.   EVENTS OF DEFAULT; RIGHTS AND REMEDIES.
     --------------------------------------

     8.1  EVENT OF DEFAULT.  The occurrence of any one or more of the following
events shall constitute an Event of Default under this Agreement:

          (A) (i) Borrowers fail to pay, within three (3) days after the same
     shall be due and payable or be declared due and payable, any part of the
     Liabilities or (ii) a Borrower is in default in the payment of Indebtedness
     in the aggregate in excess of $100,000 beyond any applicable cure period or
     (iii) any Subsidiary is in default on its indebtedness in the aggregate in
     excess of $100,000 beyond any applicable cure period; or

          (B) Borrowers or any Subsidiary or any guarantor of the Liabilities
     fails or neglects to perform, keep or observe (i) any term, provision,
     condition or covenant contained in Sections 7.1, 7.2 or 7.3 of this
     Agreement and such failure continues unremedied for a period of ten (10)
     days or (ii) any other term, provision, condition or covenant contained in
     this Agreement or in the Ancillary Agreements, which is required to be
     performed, kept or observed by a Borrower or such Subsidiary or guarantor
     and such failure continues unremedied for a period of ten (10) days; or

          (C) The occurrence of any default (subject to any applicable cure
     periods) under (i) any of the Ancillary Agreements or (ii) any document
     evidencing or securing any Subordinated Debt with a principal amount in
     excess of $100,000; or

          (D) Any statement, warranty, representation, report, financial
     statement, or certificate made or delivered by a Borrower, any of its
     officers, employees or agents, to Agent or any Lender is not true and
     correct in any material respect on the date it was made or delivered or
     deemed re-made; or

          (E) There shall occur any material uninsured damage to or loss, theft,
     or destruction of any of the Collateral in excess of $65,000; or

          (F) The Collateral or any of Borrowers' other assets or any assets of
     any Subsidiary are attached, seized, levied upon or subjected to a writ or
     distress warrant, or come within the possession of any receiver, trustee,
     custodian or assignee for the benefit of creditors and the same is not
     cured within ten (10) days; or an application is made by any Person for the
     appointment of a receiver, trustee, or custodian for any of the

                                       58
<PAGE>

     Collateral or any of Borrowers' other assets or any assets of any
     Subsidiary and the same is not dismissed within sixty (60) days after such
     application; or

          (G) An application is made by a Borrower for the appointment of a
     receiver, trustee or custodian for any of the Collateral or any of such
     Borrower's other assets; or an application is made by any Subsidiary or any
     guarantor of the Liabilities, for the appointment of a receiver, trustee or
     custodian for any of such Subsidiary's or such guarantor's assets; or any
     case or proceeding is filed by or against a Borrower, any Subsidiary or any
     such guarantor for its dissolution, liquidation, or termination; or a
     Borrower or any Subsidiary ceases to conduct its business as now conducted
     or is enjoined, restrained or in any way prevented by court order from
     conducting all or any material part of its business affairs; or

          (H) A notice of Lien, levy or assessment is filed of record with
     respect to all or any substantial portion of a Borrower's assets or any
     Subsidiary's assets by the United States, or any department, agency or
     instrumentality, or by any state, county, municipal or other governmental
     agency including, without limitation, the Pension Benefit Guaranty
     Corporation, or any taxes or debts owing to any of the foregoing becomes a
     Lien or encumbrance upon the Collateral or any of a Borrower's other assets
     or upon any Subsidiary's assets and such Lien or encumbrance is not
     released within sixty (60) days after its creation; or

          (I) Judgment(s) is or are rendered against a Borrower or any
     Subsidiary in the aggregate in excess of $100,000 and such Person fails to
     either discharge the judgment or commence appropriate proceedings to appeal
     such judgment(s) within the applicable appeal period or, after such appeal
     is filed, such Person fails to diligently prosecute such appeal or such
     appeal is denied; or

          (J) A petition under any section or chapter of the United States
     Bankruptcy Code or any similar law or regulation is filed by or against a
     Borrower, any Subsidiary or any guarantor of the Liabilities, and, if filed
     against a Borrower, any Subsidiary or any such guarantor, is not dismissed
     within sixty (60) days after filing; or a Borrower, any Subsidiary or any
     such guarantor makes an assignment for the benefit of its creditors; or a
     Borrower or any Subsidiary becomes insolvent, fails generally to pay its
     debts as they become due or admits its inability to pay its debts as they
     become due; or

          (K) A Borrower fails within fifteen (15) days after the occurrence of
     any of the following events, to furnish Agent and each Lender with
     appropriate notice thereof:  (i) the happening of a Reportable Event with
     respect to any profit sharing or pension plan governed by ERISA (such
     notice shall contain the statement of the chief financial officer of a
     Borrower setting forth details as to such Reportable Event and the action
     which such Borrower or the applicable Subsidiary proposes to take with
     respect thereto and a copy of the notice of such Reportable Event to the
     Pension Benefit Guaranty Corporation), (ii) the termination of any such
     plan, (iii) the appointment of a trustee by an appropriate United States
     District Court to administer any such plan, or (iv) the

                                       59
<PAGE>

     institution of any proceedings by the Pension Benefit Guaranty Corporation
     to terminate any such plan or to appoint a trustee to administer any such
     plan; or

          (L) A Borrower fails to: (i) notify Agent and each Lender promptly
     upon receipt by such Borrower or any Subsidiary of any notice of the
     institution of any proceeding or other actions which may result in the
     termination of any profit sharing or pension plan; or (ii) acquire and
     maintain or cause any Subsidiary to acquire and maintain, when available,
     the contingent employer liability coverage insurance provided for under
     Section 4023 of ERISA in an amount satisfactory to the Required Lenders; or

          (M) This Agreement or any Ancillary Agreement shall be repudiated or
     become unenforceable or incapable of performance, in whole or in part; or

          (N) Any Person(s) presently not in control of a Borrower shall obtain
     control directly or indirectly of such Borrower.

     8.2  EFFECT OF EVENT OF DEFAULT.  If (a) any Event of Default described in
Section 8.1(J) shall occur, the Commitments  (if they have not theretofore
terminated) shall immediately terminate and all Notes shall become immediately
due and payable, all without presentment, demand, protest or notice of any kind,
or any action by Agent or any of the Lenders; and (b) any other Event of Default
shall occur (other than an Event of Default described in Section 8.1(J)), the
Agent may (and upon written request of the Required Lenders, shall) declare the
Commitments  (if they have not theretofore terminated) to be terminated and all
Notes to be due and payable, whereupon the  Commitments  (if they have not
theretofore terminated) shall immediately terminate and all Notes shall become
immediately due and payable, all without presentment, demand, protest or notice
of any kind.  The Agent shall promptly advise Borrowers and each Lender of any
such declaration, but failure to do so shall not impair the effect of such
declaration.

     8.3  REMEDIES.  Upon and after the occurrence of an Event of Default, Agent
shall have all of the following rights and remedies:

          (A) All of the rights and remedies of a secured party under the
     Illinois Uniform Commercial Code or other applicable law, all of which
     rights and remedies shall be cumulative and non-exclusive, to the greatest
     extent permitted by law, and in addition to any other rights and remedies
     contained in this Agreement and in any of the Ancillary Agreements;

          (B) The right to (i) peacefully enter upon the premises of each
     Borrower or any other place or places where the Collateral is located and
     kept, without any obligation to pay rent to such Borrower or any other
     person, through self-help and without judicial process or first obtaining a
     final judgment or giving such Borrower notice and opportunity for a hearing
     on the validity of Agent's and each Lender's claim, and remove the
     Collateral from such premises and places, for such time as Agent and each
     Lender

                                       60
<PAGE>

     may require to collect or liquidate the Collateral, and/or (ii) require
     each Borrower to assemble and deliver the Collateral to Agent at a place to
     be designated by Agent;

          (C) The right to (i) open each Borrower's mail and collect any and all
     amounts due from Account Debtors, (ii) notify Account Debtors that the
     Accounts have been assigned to Agent and that Agent has a security interest
     therein and (iii) direct such Account Debtors to make all payments due from
     them upon the Accounts, including the Special Collateral, directly to Agent
     or to a lock box designated by Agent.  Agent shall promptly furnish each
     Borrower with a copy of any such notice sent and each Borrower hereby
     agrees that any such notice in Agent's sole discretion, may be sent on
     Agent's stationery, in which event, each Borrower shall, upon demand, co-
     sign such notice with Agent; and

          (D) The right to sell, lease or to otherwise dispose of all or any
     Collateral in its then condition, or after any further manufacturing or
     processing thereof, at public or private sale or sales, with such notice as
     provided in Section 8.4, in lots or in bulk, for cash or on credit, all as
     Agent, in its sole discretion, may deem advisable.  At any such sale or
     sales of the Collateral, the Collateral need not be in view of those
     present and attending the sale, nor at the same location at which the sale
     is being conducted.  Agent shall have the right to conduct such sales on
     each Borrower's premises or elsewhere and shall have the right to use each
     Borrower's premises without charge by Borrowers or their Affiliates for
     such sales for such time or times as Agent may see fit, subject to the
     rights of any landlord to such premises.  Agent is granted a license or
     other right to use, without charge, each Borrower's labels, patents,
     copyrights, rights of use of any name, trade secrets, trade names,
     trademarks and advertising matter, or any property of a similar nature, as
     it pertains to the Collateral, in advertising for sale and selling any
     Collateral and each Borrower's rights under all licenses and all franchise
     agreements shall inure to Agent's benefit but Agent shall have no
     obligations thereunder.  Agent may purchase all or any part of the
     Collateral at public or, if permitted by law, private sale and, in lieu of
     actual payment of such purchase price, may setoff the amount of such price
     against the Liabilities.  The proceeds realized from the sale of any
     Collateral shall be applied as set forth in Section 8.7.  If any deficiency
     shall arise, Borrowers shall remain liable to Agent and each Lender for the
     amount of such deficiency.

     8.4  NOTICE.  Each Borrower agrees that any notice required to be given by
Agent or any Lender of a sale, lease, other disposition of any of the Collateral
or any other intended action by Agent or such Lender, which is personally
delivered to such Borrower or which is deposited in the United States mail,
postage prepaid and duly addressed to such Borrower at the address set forth in
Section 10.10, at least ten (10) days prior to any such public sale, lease or
other disposition or other action being taken, or prior to the time after which
any private sale of the Collateral is to be held, shall constitute commercially
reasonable and fair notice to such Borrower.

     8.5  DEFAULT INTEREST RATE.  To compensate Agent and each Lender for
additional unreimbursed costs resulting from the occurrence of an Event of
Default, including without

                                       61
<PAGE>

limitation, acts associated with the uncertainty of future funding and
additional supervisory and administrative efforts, upon the occurrence of and
during the continuance of an Event of Default and after notice thereof is given
to Borrowers at the direction of the Required Lenders, the Liabilities shall
continue to bear interest, calculated daily on the basis of a 360-day year at
the per annum rate set forth in Section 2.4 above, plus additional post-default
interest of two percent (2%) per year until the Liabilities are paid in full.

     8.6  PRESERVATION OF RIGHTS.  No delay or omission of the Agent or any
Lender to exercise any right under this Agreement or any Ancillary Agreement
shall impair such right or be construed to be a waiver of any Event of Default
or an acquiescence therein, and the making of a Loan notwithstanding the
existence of an Event of Default or the inability of Borrowers to satisfy the
conditions precedent to such Loan shall not constitute any waiver or
acquiescence.  Any single or partial exercise of any such right shall not
preclude other or further exercise thereof or the exercise of any other right,
and no waiver, amendment or other variation of the terms, conditions or
provisions of this Agreement or any Ancillary Agreement whatsoever shall be
valid unless in writing signed by the Required Lenders, and then only to the
extent in such writing specifically set forth.  All remedies contained in this
Agreement or any Ancillary Agreement or by law afforded shall be cumulative and
all shall be available to Agent and the Lenders until the Liabilities have been
paid in full.

     8.7  DISTRIBUTIONS.  The Agent shall distribute all proceeds and other
amounts received by it with respect to Collateral:

          First, to the payment of any amounts owed to it under Section 10.3 or
     under any Ancillary Agreement executed pursuant hereto and any expenses
     incurred by the Agent in connection with the maintenance, preservation or
     protection of any Collateral;

          Second, to all Lenders pro rata according to the then outstanding
     amount of Liabilities held by each such Lender; and

          Third, if any balance remains after the Liabilities have been paid in
     full, to  Borrowers.

     Each Lender shall apply any payment so received from the Agent,

          First, to unpaid accrued interest, if any, on its Liabilities until
     paid in full;

          Second, to the unpaid premium, if any, on its Liabilities;

          Third, to the unpaid principal of its Liabilities until paid in full;
     and

          Fourth, to its other Liabilities;

     provided, however, that any Lender which receives any payment on account of
the Borrowers' contingent obligations under a Letter of Credit shall hold such
payment as cash

                                       62
<PAGE>

collateral for such contingent obligation (and shall have no obligation to pay
interest thereon), and, following any reduction of the stated amount of such
Letter of Credit or termination thereof, shall return to the Agent for
distribution pursuant to this Section 8.7 any amounts in excess of the
Borrowers' contingent obligations not used to reimburse such Lender.

     8.8  METHOD OF ADJUSTMENT.  If any Lender shall obtain any payment with
respect to its Liabilities in excess of its (or their) pro rata share pursuant
to Section 8.7, it shall be deemed to have received such excess on behalf of all
Lenders and shall promptly deliver such excess to the Agent for distribution in
accordance with Section 8.7.  If for any reason payments to the Agent in the
preceding sentence shall be determined by the Agent to be improper or not
advisable, then such Lender shall purchase from each Lender receiving less than
its pro rata share, such participation in its Liabilities as shall be necessary
for such purchasing Lender to share the excess payment received pro rata with
such other Lenders; provided, however, that if all or any portion of such excess
payment be thereafter recovered from such purchasing Lender, the purchase shall
be rescinded to the extent of such recovery, but without interest or premium;
and, provided, further, that the nonperformance by any Lender of its obligation
under this Section shall not excuse any other Lender hereunder.

9.   AGENT.
     -----

     9.1  APPOINTMENT AND AUTHORIZATION.  Each Lender hereby irrevocably
(subject to Section 9.9) appoints, designates and authorizes each Agent to take
such action on its behalf under the provisions of this Agreement and each other
Ancillary Agreement and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Ancillary
Agreement, together with such powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary contained elsewhere in this
Agreement or in any other Ancillary Agreement, Agent shall not have any duties
or responsibilities except those expressly set forth herein, nor shall Agent
have or be deemed to have any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other  Ancillary Agreement
or otherwise exist against Agent.

     9.2  DELEGATION OF DUTIES.  Agent may execute any of its duties under this
Agreement or any other Ancillary Agreement by or through its agents, employees
or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  Agent shall not be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects with
reasonable care.

     9.3  LIABILITY OF AGENT.  No Agent-Related Persons shall (i) be liable for
any action taken or omitted to be taken by any of them under or in connection
with this Agreement or any other Ancillary Agreement or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct)
or (ii) be responsible in any manner to any of the Lenders for any recital,
statement, representation or warranty made by Borrowers or any Subsidiary or
Affiliate of Borrowers, or any officer thereof, contained in this Agreement or
in any other Ancillary Agreement, or in any certificate, report, statement or
other document referred to or

                                       63
<PAGE>

provided for in, or received by the Agent under or in connection with, this
Agreement or any other Ancillary Agreement, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other
Ancillary Agreement, or for any failure of the Borrowers or any other party to
any Ancillary Agreement to perform its obligations hereunder or thereunder. No
Agent-Related Person shall be under any obligation to any Lender to ascertain or
to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Ancillary Agreement,
or to inspect the properties, books or records of Borrowers or any of Borrowers'
Subsidiaries or Affiliates.

     9.4  RELIANCE BY AGENTS.  Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel to
Borrowers), independent accountants and other experts selected by Agent.  Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Ancillary Agreement unless it shall first receive such
advice or concurrence of the Required Lenders and, if it so requests,
confirmation from the Lenders of their obligation to indemnify Agent against any
and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  Agent shall in all cases be fully protected
in acting, or in refraining from acting, under this Agreement or any other
Ancillary Agreement in accordance with a request or consent of the Required
Lenders (unless the consent of all the Lenders is required in such case, in
which case unanimous consent of the Lenders) and such request and any action
taken or failure to act pursuant thereto shall be binding upon all of the
Lenders.  For purposes of determining compliance with the conditions specified
in Section 2.11 or in any comparable provision of any amendment hereto, each
Lender that has executed this Agreement or such amendment shall be deemed to
have consented to, approved or accepted, or to be satisfied with, each document
or other matter either sent by an Agent to such Lender for consent, approval,
acceptance or satisfaction, or required thereunder to be consented to or
approved by or acceptable or satisfactory to the Lender.

     9.5  NOTICE OF DEFAULT.  Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default, except with respect
to defaults in the payment of principal, interest and fees required to be paid
to the Agent for the account of the Lenders, unless the Agent shall have
received written notice from a Lender or Borrowers referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
"notice of default".  The Agent will notify the Lenders of its receipt of any
such notice.  Agent shall take such action with respect to such Default or Event
of Default as may be requested by the Required Lenders in accordance with
Section 8; provided, however, that unless and until Agent has received any such
request, Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to such Default or Event of Default as it
shall deem advisable or in the best interest of the Lenders.

     9.6  CREDIT DECISION.  Each Lender acknowledges that none of the Agent-
Related Persons has made any representation or warranty to it, and that no act
by Agent hereinafter

                                       64
<PAGE>

taken, including any review of the affairs of Borrowers and their Subsidiaries,
shall be deemed to constitute any representation or warranty by any Agent-
Related Person to any Lender. Each Lender represents to Agent that it has,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrowers and
their Subsidiaries, and all applicable bank regulatory laws relating to the
transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to Borrowers hereunder. Each Lender also
represents that it will, independently and without reliance upon any Agent-
Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Agreement and the
Ancillary Agreements, and to make such investigations as it deems necessary to
inform itself as to the business, prospects, operations, property, financial and
other condition and creditworthiness of Borrowers. Except for notices, reports
and other documents expressly herein required to be furnished to the Lenders by
the Agent, Agent shall not have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of
Borrowers which may come into the possession of any of the Agent-Related
Persons.

     9.7  INDEMNIFICATION.  The Lenders shall indemnify upon demand any Agent-
Related Persons (to the extent not reimbursed by or on behalf of Borrowers and
without limiting the obligation of Borrowers to do so), pro rata, from and
against any and all Indemnified Liabilities; provided, however, that no Lender
shall be liable for the payment to the Agent or any Agent-Related Persons of any
portion of such Indemnified Liabilities resulting solely from such Person's
gross negligence or willful misconduct.  Without limitation of the foregoing,
each Lender shall reimburse Agent upon demand for its ratable share of any costs
or out-of-pocket expenses (including reasonable fees of attorneys for Agent)
incurred by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Ancillary Agreement,
or any document contemplated by or referred to herein, to the extent that Agent
is not reimbursed for such expenses by or on behalf of Borrowers.  To the extent
that Agent or any Agent-Related Person shall thereafter be reimbursed by or on
behalf of Borrowers for any amount paid by the Banks pursuant to this Section
9.7, such Person shall reimburse each Lender for its ratable share of any such
amount.  The undertaking in this Section shall survive the expiration or
termination of the Commitments and payment of the Loans and other liabilities of
Borrowers hereunder and the resignation or replacement of Agent.  For the
purposes of this Section 9.7, "INDEMNIFIED LIABILITIES" shall mean: any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, charges, expenses and disbursements (including reasonable fees of
attorneys for Agent) of any kind or nature whatsoever which may at any time
(including at any time following repayment of the Loans and the termination,
resignation or replacement of Agent or replacement of any Lender) be imposed on,
incurred by or asserted against  any such Agent Related Person in any way
relating to or arising out of this Agreement or any document contemplated by or
referred to herein, or the transactions contemplated hereby, or any action

                                       65
<PAGE>

taken or omitted by any such Agent Related Person under or in connection with
any of the foregoing, including with respect to any investigation, litigation or
proceeding (including (i) any case, action or proceeding before any court or
other governmental authority relating to bankruptcy, reorganization, insolvency,
liquidation, receivership, dissolution, winding-up or relief of debtors or (ii)
any general assignment for the benefit of creditors, composition, marshaling of
assets for creditors, or other, similar arrangement in respect of its creditors
generally or any substantial portion of its creditors; undertaken under U.S.
Federal, state or foreign law, including the Bankruptcy Code or appellate
proceeding) related to or arising out of this Agreement or the Loans or the use
of the proceeds thereof, whether or not any Agent-Related Person, any Lender or
any of their respective officers, directors, employees, counsel, agents or
attorneys-in-fact is a party thereto.

     9.8  AGENT IN INDIVIDUAL CAPACITY.  LaSalle and its Affiliates may make
loans to, issue Letters of Credit for the account of, accept deposits from and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with Borrowers and their Subsidiaries and Affiliates as though
it were not Agent hereunder and without notice to or consent of the Lenders.
The Lenders acknowledge that, pursuant to such activities, Agent or its
Affiliates may receive information regarding Borrowers or their Affiliates
(including information that may be subject to confidentiality obligations in
favor of Borrowers or such Subsidiaries) and acknowledge that Agent shall be
under no obligation to provide such information to them.  With respect to their
Loans, Agent and its Affiliates shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though such Agent
were not an Agent, and the terms Lender and Lenders include Agent and its
Affiliates, to the extent applicable, in their individual capacities.

     9.9  SUCCESSOR AGENT.  Agent may resign as an Agent upon 30 days' notice to
the Lenders.  If Agent resigns under this Agreement, the Required Lenders shall,
with the prior written consent of Borrowers, appoint from among the Lenders a
successor agent for the Lenders.  If no successor agent is appointed prior to
the effective date of the resignation of Agent, Agent may appoint, after
consulting with the Lenders and with the prior written consent of Borrowers, a
successor agent from among the Lenders.  Upon the acceptance of its appointment
as successor agent hereunder, such successor agent shall succeed to all the
rights, powers and duties of the retiring Agent and the term Agent shall mean
such successor agent and the retiring Agent's appointment, powers and duties as
an Agent shall be terminated.  After any retiring Agent's resignation hereunder
as Agent, the provisions of this Section 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was an Agent under this
Agreement.  If no successor agent has accepted appointment as an Agent by the
date which is 30 days following a retiring Agent's notice of resignation, the
retiring Agent's resignation shall nevertheless thereupon become effective and
the Lenders shall perform all of the duties of an Agent hereunder until such
time, if any, as the Required Lenders appoint a successor agent as provided for
above.

                                       66
<PAGE>

10.  MISCELLANEOUS.
     -------------

     10.1  APPOINTMENT OF AGENT AS EACH BORROWER'S LAWFUL ATTORNEY-IN-FACT.
Each Borrower irrevocably designates, makes, constitutes and appoints Agent (and
all persons designated by Agent) as such Borrower's true and lawful attorney and
agent-in-fact and Agent, or Agent's agent, may, without notice to such Borrower:

          (A) At any time after the occurrence of and during the continuance of
     an Event of Default, endorse by writing or stamp each Borrower's name on
     any checks, notes, drafts or any other payment relating to and/or proceeds
     of the Collateral which come into the possession of Agent or under Agent's
     control and deposit the same to the account of Agent for application to the
     Liabilities;

          (B) At any time after the occurrence of and during the continuance of
     an Event of Default, in each Borrower's or Agent's name:  (i) demand
     payment of the Collateral; (ii) enforce payment of the Collateral, by legal
     proceedings or otherwise; (iii) exercise all of each Borrower's rights and
     remedies with respect to the collection of the Collateral; (iv) settle,
     adjust, compromise, extend or renew the Accounts and the Special
     Collateral; (v) settle, adjust or compromise any legal proceedings brought
     to collect the Collateral; (vi) if permitted by applicable law, sell or
     assign the Collateral upon such terms, for such amounts and at such time or
     times as Agent deems advisable; (vii) satisfy and release the Accounts and
     Special Collateral; (viii) take control, in any manner, of any item of
     payment or proceeds referred to in Section 3.3; (ix) prepare, file and sign
     each Borrower's name on any proof of claim in bankruptcy or similar
     document against any Account Debtor; (x) prepare, file and sign each
     Borrower's name on any notice of Lien, assignment or satisfaction of Lien
     or similar document in connection with the Collateral; (xi) do all acts and
     things necessary, in Agent's sole discretion, to fulfill each Borrower's
     obligations under this Agreement; (xii) endorse by writing or stamp the
     name of each Borrower upon any chattel paper, document, instrument,
     invoice, freight bill, bill of lading or similar document or agreement
     relating to the Collateral; and (xiii) use the information recorded on or
     contained in any data processing equipment and computer hardware and
     software relating to the Collateral to which each Borrower has access; and

          (C) At any time after the occurrence of and during the continuance of
     an Event of Default, notify the post office authorities to change the
     address for delivery of Borrower's mail to an address designated by Agent
     and receive, open and dispose of all mail addressed to each Borrower.

     10.2  MODIFICATION OF AGREEMENT; SALE OF NOTES; PARTICIPATIONS.  No
amendment, modification or waiver of, or consent with respect to, any provision
of this Agreement or the Notes shall in any event be effective unless the same
shall be in writing and signed and delivered by Lenders having an aggregate
Percentage of not less than the aggregate Percentage expressly designated herein
with respect thereto or, in the absence of such designation as to any provision
of this Agreement or the Notes, by the Required Lenders, and then any such

                                       67
<PAGE>

amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.  No amendment,
modification, waiver or consent shall extend or increase the amount of the
Commitments, extend the final maturity of the Notes, reduce the principal
thereof, reduce the fees hereunder or the rate of interest payable with respect
to the Notes (other than pursuant to Section 2.1), reduce the aggregate
Percentage required to effect an amendment, modification, waiver or consent,
reduce the amount of or extend the date for the mandatory payments on the Notes,
modify the definition of Borrowing Base, amend this Section 10.2 or permit any
assignment by Borrowers of their obligations or rights hereunder or amend any
covenants contained in Sections 7.1, 7.2 or 7.3, without the consent of the
Required Lenders in each instance.  No provision of this Agreement relating to
the Agent shall be amended, modified or waived without the consent of Agent.  No
provision of Section 2.13 shall be amended, modified or waived without the
consent of the Issuing Lender.  No Borrower may not sell, assign, transfer or
otherwise dispose of all or any portion of this Agreement or the Ancillary
Agreements, including, without limitation, such Borrower's right, title,
interest, remedies, powers, or duties.  Each Borrower consents to any Lender's
participation, sale, assignment, transfer or other disposition, at any time or
times, of this Agreement or the Ancillary Agreements, including, without
limitation, such Lender's right, title, interest, remedies, powers, or duties.
Each Borrower consents to any Lender's pledge of its rights under this
Agreement, any Note issued hereunder or any Ancillary Agreement to the Federal
Reserve Bank.  Any Lender shall have the right to sell, assign or transfer all
or part of any Note to one or more banks or other financial institutions, or to
grant participations to one or more banks or other financial institutions, in or
to any Loan hereunder and any Note held by such Lender upon three (3) days prior
written notice to Borrowers (and if no Default or Event of Default has occurred
and is continuing with the prior written consent of Borrowers) and the Agent
together with, in the case of assignments only, execution and delivery to the
Agent and the Borrowers of an Assignment Agreement substantially in the form of
Exhibit P hereto and payment of a $5,000 fee to the Agent for processing such
assignment.  Borrowers hereby consent to the disclosure of any information
obtained by the Agent or any Lender in connection herewith to any bank or other
financial institution to which any Lender now or hereafter has sold, assigned or
transferred, or sold or proposed to sell, assign or transfer, all or any part of
any Note or any participation interest in any Loan or Note.  Upon the sale,
transfer or assignment of all or a portion of any Note pursuant to one or more
Assignment Agreements, Borrowers shall, upon the request of the assigning
Lender, execute a new note or notes in a form substantially similar to the Note
or Notes so replaced.  Each such transferee shall be deemed to be a Lender under
this Agreement.  Each transferee of any Note shall take such Note subject to the
provisions of this Agreement and to any request made, waiver or consent given or
other action taken hereunder prior to the receipt by Agent and Borrowers of
written notice of such transfer.  Each Lender represents that it is the present
intention of such Lender to acquire each Note drawn to its order for its own
account and not with a view to the distribution or sale thereof, subject,
nevertheless, to the necessity that such Lender remain in control at all times
of the disposition of property held by it for its own account; it being
understood that the foregoing representation shall not affect the character of
the Loans as commercial lending transactions.

     10.3  ATTORNEYS' FEES AND EXPENSES; AGENT AND EACH LENDER'S OUT-OF-POCKET
EXPENSES.  If, at any time or times, whether prior or subsequent to the date of
this Agreement

                                       68
<PAGE>

and regardless of the existence of a Default or an Event of Default, Agent and
each Lender incurs reasonable legal or other costs and expenses or employs
counsel, accountants or other professionals for advice or other representation
or services in connection with:

          (A) The preparation, negotiation and execution of this Agreement, all
     Ancillary Agreements, any amendment of or modification of this Agreement or
     the Ancillary Agreements;

          (B) Any litigation, contest, dispute, suit, proceeding or action
     (whether instituted by Agent, any Lender, a Borrower or any other Person)
     in any way relating to the Collateral, this Agreement, the Ancillary
     Agreements or Borrowers' affairs;

          (C) Any attempt to enforce any rights of Agent or any Lender against a
     Borrower or any other Person which may be obligated to Agent or such Lender
     by virtue of this Agreement or the Ancillary Agreements, including, without
     limitation, the Account Debtors;

          (D) Any attempt to inspect, verify, protect, collect, sell, liquidate
     or otherwise dispose of any of the Collateral; or

          (E) Any inspection, verification, protection, collection, sale,
     liquidation or other disposition of any of the Collateral, including
     without limitation, Agent's periodic field audits and audits of a
     Borrower's books and records;

     then, in any such event, the reasonable attorneys' and paralegals' fees and
expenses arising from such services and all reasonably incurred expenses, costs,
charges and other fees of or paid by Agent (or any Lender after the occurrence
of and during the continuation of an Event of Default) in any way or respect
arising in connection with or relating to any of the events or actions described
in this Section 10.3 shall be payable by Borrowers, jointly and severally, to
Agent (or any Lender after the occurrence of and during the continuation of an
Event of Default) upon demand and shall be additional Liabilities.  Without
limiting the generality of the foregoing, such expenses, costs, charges and fees
may include accountants' fees, costs and expenses; court costs, fees and
expenses; photocopying and duplicating expenses; court reporter fees, costs and
expenses; long distance telephone charges; courier charges; telegram and
telecopy charges.

     10.4  NO OFFSET; RIGHT TO CHARGE ACCOUNTS.  All payments due to Agent or
any Lender shall be made in immediately available funds, without setoff or
counterclaim.  At Agent's or any Lender's sole discretion, Agent or such Lender
may charge against any demand account of a Borrower all or any part of the
Liabilities which are due and payable.

     10.5  SEVERABILITY.  Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be

                                       69
<PAGE>

ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

     10.6  PARTIES; ENTIRE AGREEMENT.  This Agreement and the Ancillary
Agreements shall be binding upon and inure to the benefit of the respective
successors and assigns of each Borrower, Agent and each Lender.  Each Borrower's
successors and assigns shall include, without limitation, a trustee, receiver or
debtor-in-possession of or for such Borrower.  Nothing contained in this Section
10.6 shall be deemed to modify Section 10.2.  This Agreement is the complete
statement of the agreement by and among Borrowers, Agent and each Lender and
supersedes all prior negotiations, understandings and representations between
them with respect to the subject matter of this Agreement.

     10.7  CONFLICT OF TERMS.  The provisions of the Ancillary Agreements are
incorporated in this Agreement by this reference.  Except as otherwise provided
in this Agreement and except as otherwise provided in the Ancillary Agreement,
by specific reference to the applicable provision of this Agreement, if any
provision contained in this Agreement is in conflict with, or inconsistent with,
any provision in any Ancillary Agreement, the provision contained in this
Agreement shall govern and control.

     10.8  WAIVER BY BORROWERS.  Except as otherwise provided for in this
Agreement, each Borrower waives (i) presentment, demand and protest, notice of
protest, notice of presentment, default, non-payment, maturity, release,
compromise, settlement, extension or renewal of any or all commercial paper,
accounts, contract rights, documents, instruments, chattel paper and guaranties
at any time held by Agent or any Lender on which such Borrower may in any way be
liable and hereby ratifies and confirms whatever Agent or such Lender may do in
this regard; (ii) all rights to notice and a hearing prior to Agent's or any
Lender's taking possession or control of, or Agent's or any Lender's replevy,
attachment or levy upon the Collateral or any bond or security which might be
required by any court prior to allowing Agent or any Lender to exercise any of
Agent's or any Lender's remedies; and (iii) the benefit of all valuation,
appraisement, extension and exemption laws.  Each Borrower acknowledges that it
has been advised by its own counsel with respect to this Agreement and the
transactions evidenced by this Agreement.

     10.9  WAIVER AND GOVERNING LAW.  THE LOANS EVIDENCED HEREBY HAVE BEEN MADE,
AND THIS AGREEMENT HAS BEEN DELIVERED, AT CHICAGO, ILLINOIS, AND SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD
TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS.  EACH BORROWER
(I) WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION TO ENFORCE OR DEFEND ANY
MATTER ARISING FROM OR RELATED TO THIS AGREEMENT OR ANY OF THE ANCILLARY
AGREEMENTS; (II) IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED IN COOK COUNTY, ILLINOIS, OVER ANY ACTION OR PROCEEDING TO ENFORCE
OR DEFEND ANY MATTER ARISING FROM OR RELATED TO THIS AGREEMENT OR ANY OF THE
ANCILLARY AGREEMENTS;

                                       70
<PAGE>

(III) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT SUCH BORROWER MAY EFFECTIVELY DO
SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION
OR PROCEEDING; (IV) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (V) AGREES NOT
TO INSTITUTE ANY LEGAL ACTION OR PROCEEDING AGAINST AGENT, ANY LENDER OR ANY OF
AGENT'S OR LENDER'S DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR PROPERTY,
CONCERNING ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE
ANCILLARY AGREEMENTS IN ANY COURT OTHER THAN ONE LOCATED IN COOK COUNTY,
ILLINOIS. EACH BORROWER WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR
OTHER PROCESS OR PAPERS ISSUED IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND
ANY MATTER ARISING FROM OR RELATED TO THIS AGREEMENT OR ANY OF THE ANCILLARY
AGREEMENTS, AND AGREES THAT SERVICE OF SUCH SUMMONS AND COMPLAINT, OR OTHER
PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH
BORROWER AT THE ADDRESS SET FORTH IN SECTION 10.10. SHOULD SUCH BORROWER FAIL TO
APPEAR OR ANSWER ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS SERVED WITHIN THIRTY
(30) DAYS AFTER THE RECEIPT THEREOF, IT SHALL BE DEEMED IN DEFAULT AND AN ORDER
AND/OR JUDGMENT MAY BE ENTERED AGAINST IT AS DEMANDED OR PRAYED FOR IN SUCH
SUMMONS, COMPLAINT, PROCESS OR PAPERS. NOTHING IN THIS PARAGRAPH SHALL AFFECT OR
IMPAIR LENDER'S RIGHT TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW OR
LENDER'S RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST SUCH BORROWER OR ITS
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

     10.10  NOTICE.  Except as otherwise provided in this Agreement, any notice
required shall be in writing and shall be deemed to have been validly served,
given or delivered upon (i) delivery in person, by messenger or overnight
courier service, (ii) the day after transmission by facsimile, (iii) or five (5)
Business Days after deposit in the United States certified or registered mails,
with proper postage prepaid, addressed to the party to be notified as follows:

           (a)  If to Agent, at:

                    LaSalle Bank National Association
                    135 South LaSalle
                    Chicago, Illinois 60603
                    Attention:  Meghan C. Blake
                    Fax:  (312) 904-0409

                                       71
<PAGE>

                with a copy to:

                    Ungaretti & Harris
                    3500 Three First National Plaza
                    Chicago, Illinois 60602
                    Attention:  Julie K. Seymour, Esq.
                    Fax:  (312) 977-4405

           (b)  If to Borrowers, at:

                    SalesLink Corporation
                    InSolutions, Incorporated
                    On-Demand Solutions, Inc.
                    Pacific Direct Marketing Corp.
                    SalesLink Mexico Holding Corp.
                    c/o SalesLink Corporation
                    425 Medford Street
                    Charlestown, Massachusetts  02129
                    Attention: Robert Lieberman
                    Fax:  (617) 886-4550

                with a copy to:

                    (prior to November 5, 2001)
                    Palmer & Dodge, LLP
                    One Beacon Street
                    Boston, Massachusetts 02108
                    Attention:  John C. Kacoyannakis
                    Fax: (617) 227-4420

                    (on or after November 5, 2001)
                    Palmer & Dodge, LLP
                    111 Huntington Avenue
                    at Prudential Plaza
                    Boston, Massachusetts 02199
                    Attention:  John C. Kacoyannakis
                    Fax: (617) 227-4420

           (c) If to any Lender, addressed to such Lender at the address shown
     below its signature as its domestic office address

     or to such other address or facsimile number as each party may designate
for itself by like notice.

                                       72
<PAGE>

     10.11  SECTION TITLES, ETC.  The section titles and table of contents, if
any, contained in this Agreement are and shall be without substantive meaning or
content of any kind whatsoever and are not a part of the agreement between the
parties hereto.  All Exhibits and Schedules which are referred to herein or
attached hereto are incorporated by reference.

     10.12 MUTILATED, DESTROYED, LOST AND STOLEN NOTES.  If any mutilated Note
is surrendered to the Borrowers, the Borrowers shall execute therefor a new Note
with the same principal amount, containing identical terms and provisions.  If
there shall be delivered to the Borrowers  (a) evidence to its satisfaction of
the destruction, loss or theft of any Note and (b) such security or indemnity as
may be required by them to hold the Borrowers and any agent of the Borrowers
harmless, then, in the absence of notice to the Borrowers that such Note has
been acquired by a bona fide purchaser, the Borrowers shall execute and deliver,
in lieu of any such destroyed, lost or stolen Note or in exchange for such Note,
a new Note with the same principal amount, containing identical terms and
provisions.  Upon the issuance of any new Note under this Section, the Borrowers
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses connected therewith.  Every new Note, issued pursuant to this Section
in lieu of any destroyed, lost or stolen Note, shall constitute an original
contractual obligation of the Borrowers, whether or not the destroyed, lost or
stolen Note shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Agreement.

11.  CROSS-GUARANTY.
     --------------

     11.1  CROSS-GUARANTY.  Each Borrower hereby agrees that such Borrower is
jointly and severally liable for, and hereby absolutely and unconditionally
guarantees to the Agent and each Lender and their respective successors and
assigns, the full and prompt payment (whether at stated maturity, by
acceleration or otherwise) and performance of, all Liabilities owed or hereafter
owing to Agent and each Lender by each other Borrower.  Each Borrower agrees
that its guaranty obligation hereunder is a continuing guaranty of payment and
performance and not of collection, that its obligations under this Section 11
shall not be discharged until payment and performance, in full, of the
Liabilities has occurred, and that its obligations under this Section 11 shall
be absolute and unconditional, irrespective of, and unaffected by, the
genuineness, validity, regularity, enforceability or any future amendment of, or
change in, this Agreement, any other Ancillary Agreement or any other agreement,
document or instrument to which any Borrower is or may become a party; the
absence of any action to enforce this Agreement (including this Section 11) or
any other Ancillary Agreement or the waiver or consent by Agent and each Lender
with respect to any of the provisions thereof; the existence, value or condition
of, or failure to perfect its Lien against, any security for the Liabilities or
any action, or the absence of any action, by Agent and each Lender in respect
thereof (including the release of any such security); the insolvency of any
Borrower; or any other action or circumstances that might otherwise constitute a
legal or equitable discharge or defense of a surety or guarantor. Each Borrower
shall be regarded, and shall be in the same position, as principal debtor with
respect to the Liabilities guaranteed hereunder.

                                       73
<PAGE>

     11.2  WAIVERS BY BORROWERS.  Each Borrower expressly waives all rights it
may have now or in the future under any statute, or at common law, or at law or
in equity, or otherwise, to compel Agent or any Lender to marshal assets or to
proceed in respect of the Liabilities guaranteed hereunder, against any other
party or against any security for the payment and performance of the Liabilities
before proceeding against, or as a condition to proceeding against, such
Borrower.  It is agreed among each Borrower, Agent and each Lender that the
foregoing waivers are of the essence of the transaction contemplated by this
Agreement and the Ancillary Agreements and that, but for the provisions of this
Section 11.2 and such waivers, Agent and the Lenders would decline to enter into
this Agreement.

     11.3  BENEFIT OF GUARANTY.  Each Borrower agrees that the provisions of
this Section 11.3 are for the benefit of Agent and each Lender and their
respective successors, transferees, endorsees and assigns, and nothing herein
contained shall impair, as between any other Borrower and Agent or any Lender,
the obligations of such other Borrower under this Agreement and the Ancillary
Agreements.

     11.4  SUBORDINATION OF SUBROGATION, ETC.  Notwithstanding anything to the
contrary in this Agreement or in any Ancillary Agreement, and except as set
forth in Section 11.7, each Borrower hereby expressly and irrevocably
subordinates to payment of the Liabilities any and all rights at law or in
equity to subrogation, reimbursement, exoneration, contribution, indemnification
or set off and any and all defenses available to a surety, guarantor or
accommodation co-obligor until the Liabilities are indefeasibly paid in full in
cash.  Each Borrower acknowledges and agrees that this subordination is intended
to benefit Agent and each Lender and shall not limit or otherwise affect such
Borrower's liability hereunder or the enforceability of this Section 11, and
that Agent, each Lender and their respective successors and assigns are intended
third party beneficiaries of the waivers and agreements set forth in this
Section 11.4.

     11.5  ELECTION OF REMEDIES.  If Agent or any Bank may, under applicable
law, proceed to realize its benefits under this Agreement or any Ancillary
Agreement giving Agent or such Lender a Lien upon any Collateral, whether owned
by any Borrower or by any other Person, either by judicial foreclosure or by
non-judicial sale or enforcement, Agent or any Lender may, at its sole option,
determine which of its remedies or rights it may pursue without affecting any of
its rights and remedies under this Section 11.  If, in the exercise of any of
its rights and remedies, Agent or any Lender shall forfeit any of its rights or
remedies, including its right to enter a deficiency judgment against any
Borrower or any other Person, whether because of any applicable laws pertaining
to "election of remedies" or the like, each Borrower hereby consents to such
action by Agent or such Lender and waives any claim based upon such action, even
if such action by Agent or such Lender shall result in a full or partial loss of
any rights of subrogation that each Borrower might otherwise have had but for
such action by Agent or such Lender.  Any election of remedies that results in
the denial or impairment of the right of Agent or any Lender to seek a
deficiency judgment against any Borrower shall not impair any other Borrower's
obligation to pay the full amount of the Liabilities.  In the event Agent or any
Lender shall bid at any foreclosure or trustee's sale or at any private sale
permitted by law or this Agreement or any Ancillary Agreements, Agent or such
Lender may bid all or less than the

                                       74
<PAGE>

amount of the Liabilities and the amount of such bid need not be paid by Agent
or such Lender but shall be credited against the Liabilities. The amount of the
successful bid at any such sale, whether Agent, such Lender or any other party
is the successful bidder, shall be conclusively deemed to be the fair market
value of the Collateral and the difference between such bid amount and the
remaining balance of the Liabilities shall be conclusively deemed to be the
amount of the Liabilities guaranteed under this Section 15, notwithstanding that
any present or future law or court decision or ruling may have the effect of
reducing the amount of any deficiency claim to which Agent or any Lender might
otherwise be entitled but for such bidding at any such sale.

     11.6  LIMITATION.  Notwithstanding any provision herein contained to the
contrary, each Borrower's liability under this Section 11 (which liability is in
any event in addition to amounts for which such Borrower is primarily liable
under Section 2) shall be limited to an amount not to exceed as of any date of
determination the greater of:  (i) the net amount of all Loans advanced to any
other Borrower under this Agreement and then re-loaned or otherwise transferred
to, or for the benefit of, such Borrower; and (ii) the amount that could be
claimed by Agent and Lenders from such Borrower under this Section 11 without
rendering such claim voidable or avoidable under Section 548 of Chapter 11 of
the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
Act, Uniform Fraudulent Conveyance Act or similar statute or common law after
taking into account, among other things, such Borrower's right of contribution
and indemnification from each other Borrower under Section 11.7.

     11.7  CONTRIBUTION WITH RESPECT TO GUARANTY OBLIGATIONS.  To the extent
that any Borrower shall make a payment under this Section 11 of all or any of
the Liabilities (other than Loans made directly to that Borrower) (a "GUARANTOR
PAYMENT") that exceeds the amount such Borrower would otherwise have paid if
each Borrower had paid the aggregate Liabilities satisfied by such Guarantor
Payment in the same proportion that such Borrower's "Allocable Amount" (as
defined below) (as determined immediately prior to such Guarantor Payment) bore
to the aggregate Allocable Amounts of each of the Borrowers as determined
immediately prior to the making of such Guarantor Payment, then, following
indefeasible payment in full in cash of the Liabilities and termination of the
Commitments) such Borrower shall be entitled to receive contribution and
indemnification payments from, and be reimbursed by, each other Borrower for the
amount of such excess, pro rata based upon their respective Allocable Amounts in
effect immediately prior to such Guarantor Payment.  As of any date of
determination, the "ALLOCABLE AMOUNT" of any Borrower shall be equal to the
maximum amount of the claim that could then be recovered from such Borrower
under this Section 11 without rendering such claim voidable or avoidable under
Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state
Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar
statute or common law.  This Section 11.7 is intended only to define the
relative rights of Borrowers and nothing set forth in this Section 11.7 is
intended to or shall impair the obligations of Borrowers, jointly and severally,
to pay any amounts as and when the same shall become due and payable in
accordance with the terms of this Agreement, including Section 11.7.  Nothing
contained in this Section 11.7 shall limit the liability of any Borrower to pay
the Loans made directly or indirectly to that Borrower and accrued interest,
fees and expenses with respect thereto for which such Borrower shall be
primarily liable.  The parties hereto acknowledge that the rights of
contribution and

                                       75
<PAGE>

indemnification hereunder shall constitute assets of the Borrower to which such
contribution and indemnification is owing. The rights of the indemnifying
Borrowers against other Borrower under this Section 11.7 shall be exercisable
upon the full and indefeasible payment of the Liabilities and the termination of
the Commitments.

     11.8  LIABILITY CUMULATIVE.  The liability of Borrowers under this Section
11 is in addition to and shall be cumulative with all liabilities of each
Borrower to Agent and each Lender under this Agreement and the Ancillary
Agreements to which such Borrower is a party or in respect of any Liabilities or
obligation of the other Borrowers, without any limitation as to amount, unless
the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

                            [signature page follows]

                                       76
<PAGE>

  This Agreement has been duly executed as of the day and year first written
  above.

                              BORROWERS:
                              ---------

                              SALESLINK CORPORATION
                              a Delaware corporation

                              By: /s/ Bryce C. Boothby Jr.
                                  ------------------------
                              Name: Bryce C. Boothby Jr.
                                    --------------------
                              Title: CEO

                              INSOLUTIONS INCORPORATED
                              a Delaware corporation

                              By: /s/ Bryce C. Boothby Jr.
                                  ------------------------
                              Name: Bryce C. Boothby Jr.
                                    --------------------
                              Title: CEO

                              ON-DEMAND SOLUTIONS, INC.
                              a Massachusetts corporation

                              By: /s/ Bryce C. Boothby Jr.
                                  ------------------------
                              Name: Bryce C. Boothby Jr.
                                    --------------------
                              Title: CEO

                              PACIFIC DIRECT MARKETING CORP.
                              a California corporation

                              By: /s/ Bryce C. Boothby Jr.
                                  ------------------------
                              Name: Bryce C. Boothby Jr.
                                    --------------------
                              Title: CEO

                              SALESLINK MEXICO HOLDING CORP.
                              a Delaware corporation

                              By: /s/ Bryce C. Boothby Jr.
                                  ------------------------
                              Name: Bryce C. Boothby Jr.
                                    --------------------
                              Title: CEO

                                       77
<PAGE>

                              LENDERS:
                              -------

                              LASALLE BANK NATIONAL ASSOCIATION,
                              as a Lender and as Agent

                              By: /s/ Meghan C. Blake
                                  -------------------
                              Name: Meghan C. Blake
                                   ----------------
                              Title: Vice President

                              Address
                              -------
                              LaSalle Bank National Association
                              135 South LaSalle
                              Chicago, Illinois 60603
                              Attention:  Meghan Blake
                              Fax:  (312) 904-0409

                              CITIZEN'S BANK OF MASSACHUSETTS,
                              as a Lender

                              By: /s/ Ralph Letner
                                  ----------------
                              Name: Ralph Letner
                                    ------------
                              Title: Vice President

                              Address
                              -------
                              Citizen's Bank of Massachusetts
                              53 State Street
                              8th Floor
                              Boston, Massachusetts 02109
                              Attention: Ralph Letner
                              Fax: (617) 742-9548

                                       78

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]