Document:

REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement is made and entered into as of the
20th day of February 2001, by and among Datakey, Inc., a Minnesota corporation
(the "Company") and the Investors listed on Schedule A attached hereto
(individually, an "Investor" and collectively, the Investors").

                                    RECITALS

         A. The Investors and the Company have entered into that certain Stock
Purchase Agreement, dated February 16th, 2001 (the "Purchase Agreement").

         B. It is a condition to the transactions contemplated in the Purchase
Agreement that the Company provide the registration and other rights provided
herein and the parties hereto desire to provide for such rights on the terms and
conditions contained herein.

         NOW, THEREFORE, in consideration of the premises and covenants
contained herein, the parties hereto agree as follows:

         1. Defined Terms. Unless otherwise noted, all capitalized terms used
herein shall have the meanings afforded them in the Purchase Agreement and the
Exhibits attached thereto.

         2. Required Registration. Within 30 days of the Closing date (the "File
Date"), the Company shall file a Registration Statement under the Securities Act
of 1933, as amended (the "Securities Act"), in accordance with the provisions of
either Form S-1 or Form S-3, as required by the Securities and Exchange
Commission (the "Commission") covering (i) the resale of the Shares and (ii) the
issuance and resale of the Warrant Shares, and will use its best efforts to have
such Registration Statement become effective with the Commission as soon as
possible thereafter, and in any event, within 90 days of the date on which it is
filed. The Shares and the Warrants Shares are referred to herein as the
"Registrable Stock."

         3. Registration - General Provisions. In connection with the
registration of the Registrable Stock under the Securities Act, the Company
will:

                  (a) prepare and file with the Commission a registration
statement with respect to the Registrable Stock, within 30 days of the Closing
date of the Purchase Agreement, and use its best efforts to cause such
registration statement to become effective within 90 days of the date it is
filed and keep the prospectus which is a part of such Registration Statement
current until the earlier of the date on which: (i) all Registrable Stock has
been sold, or (ii) two years after the date it is declared effective by the
Commission;

                  (b) prepare and file with the Commission such amendments to
such Registration Statement and supplements to the prospectus contained therein
as may be necessary to keep such Registration Statement effective for the period
required by Section 3(a) above;

<PAGE>

                  (c) provide the Investors' counsel with reasonable
opportunities to review and comment on, and otherwise participate in, the
preparation of such Registration Statement;

                  (d) furnish to the Investors participating in such
registration and to the underwriters of the securities being registered, if any,
such reasonable number of copies of the Registration Statement, preliminary
prospectus, final prospectus and such other documents as the Investors and
underwriters may reasonably request in order to facilitate the public offering
of such securities;

                  (e) use its diligent, good faith efforts to register or
qualify the securities covered by such Registration Statement under such state
securities or blue sky laws of such jurisdictions as the Investors may
reasonably request, except that the Company shall not for any purpose be
required to execute a general consent to service of process (which shall not
include a "Uniform Consent to Service of Process" or other similar consent to
service of process which relates only to actions or proceedings arising out of
or in connection with the sale of securities, or out of a violation of the laws
of the jurisdiction requesting such consent) or to qualify to do business as a
foreign corporation in any jurisdiction wherein it is not so qualified;

                  (f) notify the Investors, promptly after it shall receive
notice thereof, of the time when such Registration Statement has become
effective or a supplement to any prospectus forming a part of such Registration
Statement has been filed with the Commission;

                  (g) notify the Investors promptly of any request by the
Commission for the amending or supplementing of such Registration Statement or
prospectus or for additional information;

                  (h) prepare and file with the Commission, promptly upon the
request of the Investors, any amendments or supplements to such Registration
Statement or prospectus which, in the opinion of counsel for the Investors (and
concurred in by counsel for the Company), is required under the Securities Act
or the rules and regulations promulgated thereunder in connection with the
distribution of the shares of the Company's common stock by the Investors;

                  (i) prepare and promptly file with the Commission and promptly
notify the Investors of the filing of such amendment or supplement to such
Registration Statement or prospectus as may be necessary to correct any
statements or omissions if, at the time when a prospectus relating to such
securities is required to be delivered under the Securities Act, any event shall
have occurred as the result of which any such prospectus or any other prospectus
as then in effect would include an 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 in which they were made, not misleading;

                  (j) advise the Investors, and the Investors' counsel, if any,
promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the Commission suspending the effectiveness of
such Registration Statement or the initiation or threatening of any proceeding
for that purpose and promptly use its best efforts to prevent the issuance of
any stop order or to obtain its withdrawal if such stop order should be issued;

<PAGE>

                  (k) not file any amendment or supplement to such Registration
Statement or prospectus to which the Investors shall have reasonably objected on
the grounds that such amendment or supplement does not comply in all material
respects with the requirements of the Securities Act or the rules and
regulations promulgated thereunder, after having been furnished with a copy
thereof at least five business days prior to the filing thereof, unless in the
opinion of counsel for the Company the filing of such amendment or supplement is
reasonably necessary to protect the Company from any material liabilities under
any applicable federal or state law and such filing will not violate applicable
law; and

                  (l) at the request of the Investors, furnish on the effective
date of the Registration Statement and, if such registration includes an
underwritten public offering, at the closing provided for in the underwriting
agreement: (i) opinions, dated such respective dates, of the counsel
representing the Company for the purposes of such registration, addressed to the
underwriters, if any, and to the Investors making such request, covering such
matters as such underwriters or Investors may reasonably request, and (ii)
letters, dated such respective dates, from the independent certified public
accountants of the Company, addressed to the underwriters, if any, and to the
Investors, covering such matters as such underwriters or Investors may
reasonably request, in which letter such accountants shall state (without
limiting the generality of the foregoing) that they are independent certified
public accountants within the meaning of the Securities Act and that in the
opinion of such accountants the financial statements and other financial data of
the Company included in the Registration Statement or the prospectus or any
amendment or supplement thereto comply in all material respects with the
applicable accounting requirements of the Securities Act.

         4. Registration Expense. The Company shall pay all Registration
Expenses (as defined below) in connection with the inclusion of shares of the
Company's common stock in any Registration Statement, or application to register
or qualify such shares under state securities laws, filed by the Company
hereunder, other than as set forth herein. For purposes of this Agreement, the
term "Registration Expenses" means the filing fees payable to the Commission,
any state agency and the NASD; the fees and expenses of the Company's legal
counsel and independent certified public accountants in connection with the
preparation and filing of the Registration Statement (and all amendments and
supplements thereto) with the Commission; and all expenses relating to the
printing of the Registration Statement, prospectuses and various agreements
executed in connection with the Registration Statement. Notwithstanding the
foregoing, the Investors will pay the fees and expenses of any legal counsel the
Investors may engage, as well as the Investors' proportionate share of any
custodian fees or commission or discounts which may be payable to any
underwriter.

         5. Penalty Payments. In the event that the Registration Statement
relating to the resale of the Registrable Stock is not (i) filed with the
Commission by the Company on or before the File Date, or (ii) declared effective
by the Commission within 120 days of the Closing date, then, the Company shall
pay the Investors the following amounts ("Penalty Payments"): (i) 1% of the

<PAGE>

purchase price of the Stock (the "Purchase Price") paid by the Investors to the
Company if (A) the Registration Statement is not filed with the Commission by
the File Date, and/or (B) the Registration Statement is not declared effective
by the Commission within 120 days of the Closing date, (ii) an additional 1% of
the Purchase Price if the Registration Statement is not declared effective by
the Commission within 150 days of the Closing date, and (iii) an additional 3%
of the Purchase Price for each 30-day period thereafter in which the
Registration Statement is not declared effective by the Commission. Penalties
for failure to file and/or to obtain effectiveness shall be cumulative. The
Company shall be liable to the Investor for a full 30-day period, determined in
accordance with the above schedule, regardless of by how many days it misses one
of the targeted filing or effective dates set forth above. All such Penalty
Payments shall be immediately payable by the Company to the Investors (on a pro
rata basis based on the number of shares of Stock purchased by each under the
Purchase Agreement) via wire transfer of immediately available funds by the
close of business on last day of each respective period set forth above.

         6. Indemnification. With respect to the registration of the resale of
the shares of Registrable Stock:

         (a) to the fullest extent permitted by law, the Company will indemnify
and hold harmless each Investor, the trustees, partners, officers, directors and
agents of each Investor, any underwriter (as defined in the Securities Act) for
such Investor and each person, if any, who controls such Investor or underwriter
within the meaning of the Securities Act or the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any of the following statements, omissions or violations
(collectively a "Violation") by the Company: (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) 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, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law in connection with the offering
covered by the Registration Statement; and the Company will reimburse each such
Investor, trustee, partner, officer, director, agent, underwriter or controlling
person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this
Section 6 shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, claim, damage, liability
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished to
it expressly for use in connection with such registration by an Investor,
trustee, partner, officer, director, agent, underwriter or controlling person of
an Investor.

<PAGE>

                  (b) to the extent permitted by law, each Investor will
indemnify and hold harmless the Company, each of its directors, each of its
officers, each person, if any, who controls the Company within the meaning of
the Securities Act, any underwriter and any other Investor selling securities
under the Registration Statement or any of such other Investor's, trustees,
partners, directors or officers or any person who controls such Investor,
against any losses, claims, damages or liabilities (joint or several) to which
the Company or any such director, officer, controlling person, underwriter or
other such Investor, or trustee, partner, director, officer or controlling
person of such other Investor may become subject under the Securities Act, the
Exchange Act or other federal or state law, insofar as such losses, claims,
damages or liabilities (or actions in respect thereto) arise out of or are based
upon any Violation, in each case to the extent (and only to the extent) that
such Violation occurs in reliance upon and in conformity with written
information furnished by such Investor and stated to be specifically for use in
connection with such registration; and each such Investor will reimburse any
legal or other expenses reasonably incurred by the Company or any such director,
officer, controlling person, underwriter or other Investor, or trustee, partner,
officer, director or controlling person of such other Investor in connection
with investigating or defending any such loss, claim, damage, liability or
action if it is judicially determined that there was such a Violation; provided,
however, that the indemnity agreement contained in this Section 6 shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the consent of the Investor,
which consent shall not be unreasonably withheld; provided further, that in no
event shall any indemnity under this Section 6 exceed the gross proceeds from
the offering received by such Investor unless the Violation is the result of
fraud on the part of such Investor.

                  (c) promptly after receipt by an indemnified party under this
Section of notice of the commencement of any action (including any governmental
action), such indemnified party shall, if a claim in respect thereof is to be
made against any indemnifying party under this Section, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses to be paid
by the indemnifying party; and provided further, that if there is more than one
indemnified party, the indemnifying party shall pay for the fees and expenses of
one counsel for any and all indemnified parties to be mutually agreed upon by
such indemnified parties, unless representation of an indemnified party by the
counsel retained by the other indemnified parties would be inappropriate due to
actual or potential differing interests between such indemnified parties. The
failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action, if materially prejudicial to its
ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section, but the omission so to
deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under this
Section.

<PAGE>

                  (d) if the indemnification provided for in this Section is
held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any losses, claims, damages or liabilities referred to
herein, the indemnifying party, in lieu of indemnifying such indemnified party
thereunder, shall to the extent permitted by applicable law, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the Violation(s) that resulted in such
loss, claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. No person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11 of the Securities Act) shall
be entitled to contribution from any person or entity who shall not have been
guilty of such fraudulent misrepresentation.

                  (e) the obligation of the Company and the Investors under this
Section shall survive the completion of any offering for resale of shares of the
Registrable Stock in the Registration Statement, and otherwise.

         7. Limitation on Subsequent Registration Rights. From and after the
date of this Agreement, the Company shall not, without the prior written consent
of all of the Investors, enter into any agreement with any person or persons
providing for the granting to such holder of registration rights pari passu or
senior to those granted to Investors pursuant to this Agreement, or of
registration rights which might cause a reduction in the number of shares
includable by the Investors in any registration.

         8.       Miscellaneous.

                  (a) The Company shall not hereafter enter into any agreement
with respect to its securities that is inconsistent with the rights granted to
the Investors in this Agreement.

                  (b) Except as otherwise provided herein, the provisions of
this Agreement may not be amended, modified or supplemented, and waivers or
consents to or departures from the provisions hereof may not be given or made
unless the Company has obtained the written consent of the Investors.

                  (c) All notices and other communications provided for or
permitted hereunder shall be made by hand delivery, telex, facsimile, overnight
courier or registered first-class mail:

                           (i) if to an Investor, at the address set forth on
                           Schedule A attached hereto;

                           (ii) if to the Company, at the address set forth in
                           the Purchase Agreement.

<PAGE>

All such notices and communications shall be deemed to have been duly given:
when delivered, if by hand, overnight courier or mail; when the appropriate
answer back is received, if by telex; when transmission is confirmed by the
sending unit, if by facsimile.

                  (d) 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 an the same agreement.

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

                  (f) This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without giving effect to the
principles of choice or conflict of law thereof. Each of the Company and the
Investors irrevocably consent to the exclusive jurisdiction of the United States
Federal courts and state courts, located in New York County, New York, in any
suit or proceeding relating to, based on or arising under this Agreement and
irrevocably agree that all claims in respect of such suit or proceeding may be
determined in such courts. The Company irrevocably waives the defense of an
inconvenient forum to the maintenance of such suit or proceeding. Service of
process on the Company mailed by first class mail shall be deemed in every
respect effective service of process upon the Company in any such suit or
proceeding. Nothing herein shall affect the right of any Investor to serve
process in any manner permitted by law.

                  (g) In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of such provision in every other respect and of the
remaining provisions contained herein shall not be in any way impaired thereby,
it being intended that all of the rights and privileges of the Investors and the
Company shall be enforceable to the fullest extent permitted by law.

                  (h) The remedies provided for in this Agreement shall be
cumulative and in addition to all other remedies available, at law or in equity,
and nothing herein shall limit a holder's right to pursue actual damages for any
failure by the Company to comply with the terms of this Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this
Registration Rights Agreement as of the date first written above.

                                  Company:

                                  DATAKEY, INC.

                                  By:
                                         Name:  Alan G. Shuler
                                         Title:  Vice President and
                                                 Chief Financial Officer

                                  Investors:

                                  By:
                                        Name:
                                        Title:

                                  By:
                                        Name:
                                        Title:

<PAGE>

                                   SCHEDULE A

Investor                                         Shares            Warrants

Special Situations Private Equity Fund, L.P.    300,000             300,000
Special Situations Cayman Fund                  166,666             166,666
Special Situations Fund III, L.P.               650,000             650,000
Special Situations Technology Fund, L.P.        216,667             216,667
Helmut Muehl-Kuehner                             16,667              16,667
Robert G. Allison                                16,000              16,000
Elizabeth M. Cramer                              10,000              10,000
Christopher T. Dah                               10,000              10,000
Dennis D. Gonyea                                 10,000              10,000
Sandra J. Hale                                   10,000              10,000
USB Piper Jaffray as Custodian                   10,000              10,000
  FBO Mark Halsten IRA
Dorothy J. Hoel                                  18,000              18,000
USB Piper Jaffray As Custodian                   16,000              16,000
  FBO Raymond R. Johnson IRA
USB Piper Jaffray as Custodian                   10,000              10,000
  FBO William R. Kennedy IRA #2
James F. Lyons                                   10,000              10,000
MB Partnership                                   10,000              10,000
Daniel S. Perkins and                            16,000              16,000
  Patrice M. Perkins JTWROS
USB Piper Jaffray as Custodian                   32,000              32,000
  FBO Richard C. Perkins IRA
Richard C. Perkins                               35,000              35,000
USB Piper Jaffray as Custodian                    7,000               7,000
  FBO James G. Peters IRA
USB Piper Jaffray as Custodian                   10,000              10,000
  FBO David H. Potter IRA
John T. Potter                                   10,000              10,000
John F. Rooney                                   10,000              10,000
                                              ---------           ---------
         TOTALS                               1,600,000           1,600,000<PAGE>

                                                                    EXHIBIT 4.1

                        FIRST AMENDMENT AND RESTATEMENT
                            OF AMENDED AND RESTATED
                                CREDIT AGREEMENT

                           Dated as of April 10, 2001

                                     among

                               ETHYL CORPORATION,
                                  as Borrower,

                        THE SUBSIDIARIES OF THE BORROWER
                        FROM TIME TO TIME PARTY HERETO,
                                 as Guarantors,

                                   THE BANKS
                        FROM TIME TO TIME PARTY HERETO,

                            BANK OF AMERICA, N. A.,
                            as Administrative Agent

                        BANC OF AMERICA SECURITIES LLC,
                  as Sole Lead Arranger and Sole Book Manager
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                             <C>
SECTION 1  DEFINITIONS.......................................................................................     1
         1.1      Definitions................................................................................     1
         1.2      Computation of Time Periods................................................................    28
         1.3      Accounting Terms...........................................................................    28

SECTION 2  CREDIT FACILITIES.................................................................................    29
         2.1      Revolving Loans............................................................................    29
         2.2      Letter of Credit Subfacility...............................................................    31
         2.3      Term Loan..................................................................................    36
         2.4      New Term Loan..............................................................................    37
         2.5      Extension of Maturity Date.................................................................    38

SECTION 3  OTHER PROVISIONS RELATING TO CREDIT FACILITIES....................................................    39
         3.1      Default Rate...............................................................................    39
         3.2      Extension and Conversion...................................................................    39
         3.3      Prepayments................................................................................    40
         3.4      Termination and Reduction of Revolving Committed Amount....................................    42
         3.5      Fees.......................................................................................    43
         3.6      Capital Adequacy...........................................................................    45
         3.7      Limitation on Eurodollar Loans.............................................................    45
         3.8      Illegality.................................................................................    45
         3.9      Requirements of Law........................................................................    46
         3.10     Treatment of Affected Loans................................................................    47
         3.11     Taxes......................................................................................    47
         3.12     Compensation...............................................................................    50
         3.13     Pro Rata Treatment.........................................................................    50
         3.14     Sharing of Payments........................................................................    52
         3.15     Payments, Computations, Etc................................................................    52
         3.16     Evidence of Debt...........................................................................    54

SECTION 4  GUARANTY..........................................................................................    55
         4.1      The Guaranty...............................................................................    55
         4.2      Obligations Unconditional..................................................................    55
         4.3      Reinstatement..............................................................................    56
         4.4      Certain Additional Waivers.................................................................    57
         4.5      Remedies...................................................................................    57
         4.6      Rights of Contribution.....................................................................    57
         4.7      Guarantee of Payment; Continuing Guarantee.................................................    58

SECTION 5  CONDITIONS........................................................................................    58
         5.1      Closing Conditions.........................................................................    58
         5.2      Conditions to all Extensions of Credit.....................................................    62
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                             <C>
SECTION 6  REPRESENTATIONS AND WARRANTIES....................................................................    63
         6.1      Financial Condition........................................................................    63
         6.2      No Material Change.........................................................................    64
         6.3      Organization and Good Standing.............................................................    64
         6.4      Power; Authorization; Enforceable Obligations..............................................    64
         6.5      No Conflicts...............................................................................    65
         6.6      No Default.................................................................................    65
         6.7      Ownership..................................................................................    65
         6.8      Indebtedness...............................................................................    65
         6.9      Litigation.................................................................................    65
         6.10     Taxes......................................................................................    66
         6.11     Compliance with Law........................................................................    66
         6.12     ERISA......................................................................................    66
         6.13     Corporate Structure; Capital Stock, etc....................................................    68
         6.14     Governmental Regulations, Etc..............................................................    68
         6.15     Purpose of Loans and Letters of Credit.....................................................    69
         6.16     Environmental Matters......................................................................    69
         6.17     Intellectual Property......................................................................    70
         6.18     Solvency...................................................................................    70
         6.19     Investments................................................................................    70
         6.20     Business Locations.........................................................................    70
         6.21     Disclosure.................................................................................    70
         6.22     No Burdensome Restrictions.................................................................    71
         6.23     Labor Matters..............................................................................    71
         6.24     Collateral Documents.......................................................................    71

SECTION 7  AFFIRMATIVE COVENANTS.............................................................................    71
         7.1      Information Covenants......................................................................    72
         7.2      Preservation of Existence and Franchises...................................................    76
         7.3      Books and Records..........................................................................    76
         7.4      Compliance with Law........................................................................    76
         7.5      Payment of Taxes and Other Indebtedness....................................................    76
         7.6      Insurance..................................................................................    76
         7.7      Maintenance of Property....................................................................    77
         7.8      Performance of Obligations.................................................................    77
         7.9      Use of Proceeds............................................................................    77
         7.10     Audits/Inspections.........................................................................    77
         7.11     Financial Covenants........................................................................    78
         7.12     New Subsidiaries...........................................................................    79
         7.13     Pledged Assets.............................................................................    80
         7.14     Interest Rate Protection...................................................................    81
         7.15     Further Assurances.........................................................................    81
         7.16     Post-Closing Deliveries....................................................................    82
         7.17     Old Town Farm..............................................................................    83

SECTION 8  NEGATIVE COVENANTS................................................................................    83
         8.1      Indebtedness...............................................................................    83
</TABLE>
                                      ii
<PAGE>

<TABLE>
<S>                                                                                                             <C>
         8.2      Liens......................................................................................    84
         8.3      Consolidation, Merger, Dissolution, etc....................................................    86
         8.4      Asset Dispositions.........................................................................    86
         8.5      Investments................................................................................    87
         8.6      Restricted Payments........................................................................    88
         8.7      Other Indebtedness.........................................................................    88
         8.8      Transactions with Affiliates...............................................................    88
         8.9      Fiscal Year; Organizational Documents......................................................    89
         8.10     Limitation on Restricted Actions...........................................................    89
         8.11     Ownership of Subsidiaries; Limitations on Parent...........................................    89
         8.12     Sale Leasebacks............................................................................    89
         8.13     Capital Expenditures.......................................................................    90
         8.14     No Further Negative Pledges................................................................    90
         8.15     Operating Lease Obligations................................................................    90

SECTION 9  EVENTS OF DEFAULT.................................................................................    90
         9.1      Events of Default..........................................................................    90
         9.2      Acceleration; Remedies.....................................................................    93

SECTION 10 AGENCY PROVISIONS.................................................................................    94
         10.1     Appointment and Authorization of Administrative Agent and Collateral Agent.................    94
         10.2     Delegation of Duties.......................................................................    94
         10.3     Liability of Administrative Agent..........................................................    95
         10.4     Reliance by Administrative Agent and the Collateral Agent..................................    95
         10.5     Notice of Default..........................................................................    96
         10.6     Credit Decision; Disclosure of Information by Administrative Agent.........................    96
         10.7     Indemnification of Administrative Agent and the Collateral Agent...........................    97
         10.8     Administrative Agent and Collateral Agent in their Individual Capacities...................    97
         10.9     Successor Administrative Agent and Collateral Agent........................................    98

SECTION 11  MISCELLANEOUS....................................................................................    98
         11.1     Notices....................................................................................    98
         11.2     Sharing of Setoffs.........................................................................   100
         11.3     Benefit of Agreement.......................................................................   100
         11.4     No Waiver; Remedies Cumulative.............................................................   103
         11.5     Expenses; Indemnification..................................................................   103
         11.6     No Waivers; Amendments.....................................................................   105
         11.7     Counterparts...............................................................................   105
         11.8     Headings...................................................................................   106
         11.9     Survival...................................................................................   106
         11.10    Governing Law; Submission to Jurisdiction; Venue...........................................   106
         11.11    Severability...............................................................................   107
         11.12    Entirety...................................................................................   107
         11.13    Binding Effect; Termination................................................................   107
         11.14    Confidentiality............................................................................   107
         11.15    Source of Funds............................................................................   108
         11.16    Regulation D...............................................................................   109
</TABLE>
                                      iii
<PAGE>

<TABLE>
<S>                                                                                                             <C>
         11.17    Conflict...................................................................................   109
         11.18    Release of Collateral......................................................................   109
         11.19    Release....................................................................................   110
</TABLE>
                                      iv
<PAGE>

SCHEDULES
=========

Schedule 1.1(a)        Consolidated EBITDA
Schedule 2.1(a)        Banks
Schedule 5.1(e)        Mortgaged Properties and Mortgage Policy Amounts
Schedule 6.2           Material Adverse Changes
Schedule 6.12          ERISA
Schedule 6.13A         Ownership Structure
Schedule 6.13B         Subsidiaries
Schedule 6.17          Intellectual Property
Schedule 6.20(a)       Real Properties
Schedule 6.20(b)       Collateral Locations
Schedule 6.20(c)       Chief Executive Offices/Principal Places of Business
Schedule 6.23          Labor Matters
Schedule 7.6           Insurance
Schedule 7.16          Post-Closing Mortgage Policies
Schedule 8.1           Indebtedness
Schedule 8.2           Liens
Schedule 8.5           Investments
Schedule 8.8           Affiliate Transactions
Schedule 8.12          Sale/Leaseback Transactions

EXHIBITS
========

Exhibit 1.1A           Form of Pledge Agreement
Exhibit 1.1B           Form of Security Agreement
Exhibit 2.1(b)(i)      Form of Notice of Borrowing
Exhibit 2.1(e)         Form of Revolving Note
Exhibit 2.3(e)         Form of Term Note
Exhibit 2.4(e)         Form of New Term Note
Exhibit 3.2            Form of Notice of Extension/Conversion
Exhibit 7.1(d)         Form of Officer's Compliance Certificate
Exhibit 7.12           Form of Joinder Agreement
Exhibit 11.3(b)        Form of Assignment and Acceptance

                                       v
<PAGE>

                        FIRST AMENDMENT AND RESTATEMENT
                            OF AMENDED AND RESTATED
                               CREDIT AGREEMENT

     THIS FIRST AMENDMENT AND RESTATEMENT OF AMENDED AND RESTATED CREDIT
AGREEMENT, dated as of April 10, 2001 (the "Amendment"), is by and among ETHYL
                                            ---------
CORPORATION, a Virginia corporation (the "Borrower" or the "Company"), the
                                          --------          -------
Subsidiary Guarantors (as defined herein), the Banks (as defined herein) and
BANK OF AMERICA, N. A., as Administrative Agent for the Banks (in such capacity,
the "Administrative Agent").
     --------------------

                              W I T N E S S E T H

     WHEREAS, the Borrower, the Banks and the Administrative Agent entered into
that certain Amended and Restated Competitive Advance, Revolving Credit Facility
and Term Loan Agreement dated as of November 14, 1997 (as previously amended,
the "Existing Credit Agreement");
     -------------------------

     WHEREAS, the parties to the Existing Credit Agreement have agreed upon a
first amendment to the Existing Credit Agreement and for ease of reference have
agreed to set forth the entire agreement evidenced by the Existing Credit
Agreement and such first amendment in this Amendment as a single document;

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                   SECTION 1

                                  DEFINITIONS
                                  -----------

     1.1     Definitions.
             -----------

     As used in this Credit Agreement, the following terms shall have the
meanings specified below unless the context otherwise requires:

             "Adjusted Base Rate" means the Base Rate plus the Applicable
              ------------------                      ----
     Percentage.

             "Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
              ------------------------                            ----
     Applicable Percentage.

             "Administrative Agent" shall have the meaning assigned to such term
              --------------------
     in the heading hereof, together with any successors or assigns.

<PAGE>

             "Administrative Agent's Fee Letter" means that certain letter
              ---------------------------------
     agreement, dated as of March 14, 2001, between the Administrative Agent,
     BAS and the Borrower, as amended, modified, restated or supplemented from
     time to time.

             "Affiliate" means, with respect to any Person, any other Person (i)
              ---------
     directly or indirectly controlling or controlled by or under direct or
     indirect common control with such Person or (ii) directly or indirectly
     owning or holding five percent (5%) or more of the Capital Stock in such
     Person. For purposes of this definition, "control" when used with respect
     to any Person means the power to direct the management and policies of such
     Person, directly or indirectly, whether through the ownership of voting
     securities, by contract or otherwise; and the terms "controlling" and
     "controlled" have meanings correlative to the foregoing.

             "Agency Services Address" means Bank of America, N. A., Mail Code
              -----------------------
     CA5-\ 701-12-09, 1455 Market Street, 12/th/ Floor, San Francisco,
     California 94103, Attn: Agency Services, or such other address as may be
     identified by written notice from the Administrative Agent to the Borrower.

             "Agent-Related Persons" means the Administrative Agent, the
              ---------------------
     Collateral Agent, together with their Affiliates (including, in the case of
     Bank of America in its capacity as the Administrative Agent, the Collateral
     Agent and the Arranger), and the officers, directors, employees, agents and
     attorneys-in-fact of such Persons and Affiliates.

             "Agreement" means the Existing Credit Agreement as amended and
              ---------
     restated by this Amendment.

             "Aircraft" shall have the meaning assigned to such term in the
              --------
     Aircraft Mortgage.

             "Aircraft Mortgage" means that certain Aircraft Mortgage and
              -----------------
     Security Agreement dated as of the Amendment Closing Date to be executed in
     favor of the Collateral Agent by the Borrower, as amended, modified,
     restated or supplemented from time to time.

             "Airport Hangar Ground Lease" means that certain lease agreement
              ---------------------------
     consisting of ordinance number 65-330-66-5 adopted by the City Council of
     the City of Richmond, Virginia, on January 10, 1966, as amended by
     amendments dated June 30, 1981, January 1, 1994 and December 31, 1999, by
     and between the Capital Region Airport Commission and the Borrower,
     pertaining to certain leased land containing approximately 79,218 square
     feet at the Richmond International Airport in Henrico County, Virginia.

             "Amendment Closing Date" means April 10, 2001.
              ----------------------

             "Applicable Lending Office" means, for each Bank, the office of
              -------------------------
     such Bank (or of an Affiliate of such Bank) as such Bank may from time to
     time specify to the Administrative Agent and the Borrower by written notice
     as the office by which its Eurodollar Loans are made and maintained.

                                       2
<PAGE>

             "Applicable Percentage" means, for purposes of calculating the
              ---------------------
     applicable interest rate for any day for any Loan, the applicable rate of
     the Facility Fee for any day for purposes of Section 3.5(a), the applicable
     rate of the Standby Letter of Credit Fee for any day for purposes of
     Section 3.5(b)(i) or the applicable rate of the Trade Letter of Credit Fee
     for any day for purposes of Section 3.5(b)(ii), the appropriate applicable
     percentage corresponding to the Leverage Ratio in effect as of the most
     recent Calculation Date:

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                   Applicable Percentages
 Pricing                     -------------------------------------------------------------------------------------------------------
 Leveln     Leverage Ratio         For Term Loan           For Revolving Loans and New      For          For         For
                                                                    Term Loan             Standby      Trade      Facility
                                                                                          Letter of   Letter of     Fee
                             ---------------------------------------------------------
                             Eurodollar      Base Rate      Eurodollar      Base Rate      Credit       Credit
                               Loans           Loans          Loans           Loans         Fee          Fee
------------------------------------------------------------------------------------------------------------------------------------
<S>         <C>              <C>             <C>            <C>             <C>            <C>          <C>            <C>
I           *  3.5 to 1.0            3.00%          2.00%           2.50%          1.50%          3.00%          1.50%        0.50%
------------------------------------------------------------------------------------------------------------------------------------
II          ** 3.5 to 1.0

                 but                 2.75%          1.75%           2.25%          1.25%          2.75%         1.375%        0.50%
            *  3.0 to 1.0
------------------------------------------------------------------------------------------------------------------------------------
III         ** 3.0 to 1.0

                 but                 2.50%          1.50%           2.00%          1.00%          2.50%          1.25%        0.50%
            *  2.5 to 1.0
------------------------------------------------------------------------------------------------------------------------------------
IV          ** 2.5 to 1.0

                 but                 2.125%         1.125%           1.75%          0.75%         2.125%         1.625%       0.375%
            *  2.0 to 1.0
------------------------------------------------------------------------------------------------------------------------------------
V           ** 2.0 to 1.0            1.75%          0.75%            1.375%         0.375%          1.75%         0.875%      0.375%

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

     *  More than
     ** Less than or equal to

     Provided, however, if the Borrower shall fail to make payments on the Loans
     --------  -------
     in an amount sufficient to reduce the sum of the Term Loan outstanding plus
                                                                            ----
     the New Term Loan outstanding plus the Revolving Committed Amount to an
                                   ----
     amount no more than $360 million on or before September 30, 2001, the
     Applicable Percentages identified above shall each be increased by 0.50%,
     effective October 1, 2001, and shall remain at such increased level until
     the Borrower makes payments on the Loans in an amount sufficient to reduce
     the sum of the Term Loan outstanding plus the New Term Loan outstanding
                                          ----
     plus the Revolving Committed Amount to an amount no more than $360 million.
     ----

     The Applicable Percentages shall be determined and adjusted quarterly on
     the date (each a "Calculation Date") five Business Days after the date by
                       ----------------
     which the Credit Parties are required to provide the officer's certificate
     in accordance with the provisions of Section 7.1(d) for the most recently
     ended fiscal quarter of the Consolidated Parties; provided, however, that
                                                       --------  -------
     (i) the initial Applicable Percentages shall be based on Pricing Level I
     (as shown above) and shall remain at Pricing Level I until the Calculation
     Date for the fiscal quarter of the Consolidated Parties ending on December
     31, 2001, on and after which time the Pricing Level shall be determined by
     the Leverage Ratio as of the last day of the most recently ended fiscal
     quarter of the Consolidated Parties preceding the applicable Calculation
     Date and (ii) if the Credit Parties fail to provide the officer's
     certificate to the Agency Services Address as required by Section 7.1(d)
     for the last day of the most recently

                                       3
<PAGE>

     ended fiscal quarter of the Consolidated Parties preceding the applicable
     Calculation Date, the Applicable Percentage from such Calculation Date
     shall be based on Pricing Level I until such time as an appropriate
     officer's certificate is provided, whereupon the Pricing Level shall be
     determined by the Leverage Ratio as of the last day of the most recently
     ended fiscal quarter of the Consolidated Parties preceding such Calculation
     Date. Each Applicable Percentage shall be effective from one Calculation
     Date until the next Calculation Date. Any adjustment in the Applicable
     Percentages shall be applicable to all existing Loans and Letters of Credit
     as well as any new Loans and Letters of Credit made or issued.

          "Approved Fund" means any Fund that is administered or managed by (a)
           -------------
     a Bank, (b) an Affiliate of a Bank or (c) an entity or an Affiliate of an
     entity that administers or manages a Bank.

          "Arranger" means Banc of America Securities LLC, in its capacity as
           --------
     sole lead arranger and sole book manager.

          "Asset Disposition" means any disposition (including pursuant to a
           -----------------
     Sale and Leaseback Transaction) of any or all of the Property (including
     without limitation the Capital Stock of a Subsidiary) of any Consolidated
     Party whether by sale, lease, licensing, transfer or otherwise, but other
     than pursuant to any casualty or condemnation event; provided, however,
                                                          --------  -------
     that the term "Asset Disposition" shall not include any Equity Issuance.

          "Assignment and Acceptance" shall have the meaning assigned to such
           -------------------------
     term in Section 11.3(b).

          "B Collateral" shall have the meaning assigned to such term in the
           ------------
     Security Agreement.

          "Bank" means any of the Persons identified as a "Bank" on the
           ----
     signature pages hereto, and any Person which may become a Bank by way of
     assignment in accordance with the terms hereof, together with their
     successors and permitted assigns.

          "Bank of America" means Bank of America, N. A. and its successors.
           ---------------

          "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the United
           ---------------
     States Code, as amended, modified, succeeded or replaced from time to time.

          "Bankruptcy Event" means, with respect to any Person, the occurrence
           ----------------
     of any of the following: (i) the entry of a decree or order for relief by a
     court or governmental agency in an involuntary case under any applicable
     bankruptcy, insolvency or other similar law now or hereafter in effect, or
     the appointment by a court or governmental agency of a receiver,
     liquidator, assignee, custodian, trustee, sequestrator (or similar
     official) of such Person or for any substantial part of its Property or the
     ordering of the winding up or liquidation of its affairs by a court or
     governmental agency; or (ii) the commencement against such Person of an
     involuntary case under any applicable bankruptcy, insolvency or other
     similar law now or

                                       4
<PAGE>

     hereafter in effect, or of any case, proceeding or other action for the
     appointment of a receiver, liquidator, assignee, custodian, trustee,
     sequestrator (or similar official) of such Person or for any substantial
     part of its Property or for the winding up or liquidation of its affairs,
     and such involuntary case or other case, proceeding or other action shall
     remain undismissed for a period of sixty (60) consecutive days, or the
     repossession or seizure by a creditor of such Person of a substantial part
     of its Property; or (iii) such Person shall commence a voluntary case under
     any applicable bankruptcy, insolvency or other similar law now or hereafter
     in effect, or consent to the entry of an order for relief in an involuntary
     case under any such law, or consent to the appointment of or the taking
     possession by a receiver, liquidator, assignee, creditor in possession,
     custodian, trustee, sequestrator (or similar official) of such Person or
     for any substantial part of its Property or make any general assignment for
     the benefit of creditors; or (iv) such Person shall be unable to, or shall
     admit in writing its inability to, pay its debts generally as they become
     due.

          "BAS" means Banc of America Securities LLC.
           ---

          "Base Rate" means for any day a fluctuating rate per annum equal to
           ---------
     the higher of (a) the Federal Funds Rate for such day plus 1/2 of 1% and
     (b) the Prime Rate for such day.  Any change in the Base Rate due to a
     change in the Prime Rate or the Federal Funds Rate shall be effective on
     the effective date of such change in the Prime Rate or Federal Funds Rate.

          "Base Rate Loan" means any Loan bearing interest at a rate determined
           --------------
     by reference to the Base Rate.

          "Borrower" means the Person identified as such in the heading hereof,
           --------
     together with any permitted successors and assigns.

          "Business Day" means a day other than a Saturday, Sunday or other day
           ------------
     on which commercial banks in Charlotte, North Carolina or New York, New
     York are authorized or required by law to close, except that, when used in
                                                      ------ ----
     connection with a Eurodollar Loan, such day shall also be a day on which
     dealings between banks are carried on in Dollar deposits in London,
     England.

          "Businesses" means, at any time, a collective reference to the
           ----------
     businesses operated by the Consolidated Parties at such time.

          "Calculation Date" shall have the meaning assigned to such term in the
           ----------------
     definition of "Applicable Percentage" set forth in this Section 1.1.

          "Capital Lease" means, as applied to any Person, any lease of any
           -------------
     Property (whether real, personal or mixed) by that Person as lessee which,
     in accordance with GAAP, is required to be accounted for as a capital lease
     on the balance sheet of that Person.

          "Capital Stock" means (i) in the case of a corporation, capital stock,
           -------------
     (ii) in the case of an association or business entity, any and all shares,
     interests, participations,

                                       5
<PAGE>

     rights or other equivalents (however designated) of capital stock, (iii) in
     the case of a partnership, partnership interests (whether general or
     limited), (iv) in the case of a limited liability company, membership
     interests and (v) any other equity interest or equity participation that
     confers on a Person the right to receive a share of the profits and losses
     of, or distributions of assets of, the issuing Person.

          "Cash Equivalents" means, as at any date, (a) securities issued or
           ----------------
     directly and fully guaranteed or insured by the United States or any agency
     or instrumentality thereof (provided that the full faith and credit of the
     United States is pledged in support thereof) having maturities of not more
     than twelve months from the date of acquisition, (b) Dollar denominated
     time deposits and certificates of deposit of (i) any Bank, (ii) any
     domestic commercial bank of recognized standing having capital and surplus
     in excess of $500,000,000 or (iii) any bank whose short-term commercial
     paper rating from S&P is at least A-1 or the equivalent thereof or from
     Moody's is at least P-1 or the equivalent thereof (any such bank being an
     "Approved Bank"), in each case with maturities of not more than 270 days
     --------------
     from the date of acquisition, (c) commercial paper and variable or fixed
     rate notes issued by any Approved Bank (or by the parent company thereof)
     or any variable rate notes issued by, or guaranteed by, any domestic
     corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1
     (or the equivalent thereof) or better by Moody's and maturing within six
     months of the date of acquisition, (d) repurchase agreements entered into
     by any Person with a bank or trust company (including any of the Banks) or
     recognized securities dealer having capital and surplus in excess of
     $500,000,000 for direct obligations issued by or fully guaranteed by the
     United States in which such Person shall have a perfected first priority
     security interest (subject to no other Liens) and having, on the date of
     purchase thereof, a fair market value of at least 100% of the amount of the
     repurchase obligations and (e) Investments, classified in accordance with
     GAAP as current assets, in money market investment programs registered
     under the Investment Company Act of 1940, as amended, which are
     administered by reputable financial institutions having capital of at least
     $500,000,000 and the portfolios of which are limited to Investments of the
     character described in the foregoing subdivisions (a) through (d).

          "Change of Control" means any of the following events:  (a) the sale,
           -----------------
     lease, transfer or other disposition (other than by way of merger or
     consolidation), in one or a series of related transactions, of all or
     substantially all of the assets of the Borrower and its Subsidiaries taken
     as a whole to any "person" or "group" (within the meaning of Sections 13(d)
     and 14(d)(2) of the Securities Exchange Act) or (b) a "person" or "group"
     (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
     Exchange Act) other than Bruce C. Gottwald, Floyd D. Gottwald, Jr. or
     members of their respective families, or investment entities owned entirely
     (directly or indirectly) by them, shall have acquired beneficial ownership,
     directly or indirectly, of, or shall have acquired by contract or
     otherwise, or shall have entered into a contract or arrangement that, upon
     consummation, will result in its or their acquisition of, or control over,
     20% or more of the outstanding Voting Stock of the Borrower.  As used
     herein, "beneficial ownership" shall have the meaning provided in Rule 13d-
     3 of the Securities and Exchange Commission under the Securities Exchange
     Act.

                                       6
<PAGE>

          "Closing Date" means August 26, 1997.
           ------------

          "Code" means the Internal Revenue Code of 1986, as amended, and any
           ----
     successor statute thereto, as interpreted by the rules and regulations
     issued thereunder, in each case as in effect from time to time.  References
     to sections of the Code shall be construed also to refer to any successor
     sections.

          "Collateral" means a collective reference to all real and personal
           ----------
     Property (other than Excluded Property) with respect to which Liens in
     favor of the Collateral Agent are purported to be granted pursuant to and
     in accordance with the terms of the Collateral Documents.

          "Collateral Agent" means Bank of America, in its capacity as
           ----------------
     collateral agent under the Credit Documents, together with any successors
     or assigns.

          "Collateral Documents" means a collective reference to the Pledge
           --------------------
     Agreement, the Security Agreement, the Aircraft Mortgage and the Mortgage
     Instruments.

          "Commitment" means (i) with respect to each Bank, the Revolving
           ----------
     Commitment of such Bank, the Term Loan Commitment and the New Term Loan
     Commitment of such Bank and (ii) with respect to the Issuing Lender, the
     LOC Commitment.

          "Consolidated Capital Expenditures" means, as of any date for the four
           ---------------------------------
     fiscal quarter period ending on such date with respect to the Consolidated
     Parties on a consolidated basis, all capital expenditures, as determined in
     accordance with GAAP.

          "Consolidated EBITDA" means, as of any date for the four fiscal
           -------------------
     quarter period ending on such date with respect to the Consolidated Parties
     on a consolidated basis, the sum of (i) Consolidated Net Income, plus (ii)
     an amount which, in the determination of Consolidated Net Income, has been
     deducted for (A) interest expense, (B) total Federal, state, local and
     foreign income taxes and (C) depreciation and amortization expense, all as
     determined in accordance with GAAP plus (iii) for the fiscal quarters
                                        ----
     ending March 31, 2001 and June 30, 2001, non-recurring charges (to the
     extent charged during such applicable fiscal quarter) associated with the
     corporate restructuring of the Consolidated Parties plus (iv) the excise
                                                         ----
     taxes and expenses related to the termination of the Ethyl Corporation
     Pension Plan to the extent not included in subclauses (ii) and (iii) above

     plus (v) all non-cash charges recorded in such period associated with the
     ----
     requirements of Statement of Financial Accounting Standards No. 87 and No.
     88, as amended minus (vi) all non-cash income recorded in such period
                    -----
     associated with the requirements of Statement of Financial Accounting
     Standards No. 87 and 88, as amended minus (vii) (a) all non-recurring
                                         -----
     income items during such period (included in Consolidated Net Income for
     such period) in excess of $500,000 and (b) to the extent not deducted in
     subclause (a) above, all non-recurring income items during such period
     (included in Consolidated Net Income) which in the aggregate exceed
     $1,000,000; provided, that Consolidated EBITDA for any fiscal period ending
                 --------
     on or before December 31, 2000 which is identified on

                                       7
<PAGE>

     Schedule 1.1(a) shall be deemed to equal the amount set forth on Schedule
     ---------------                                                  --------
     1.1(a) opposite such period.
     ------

          "Consolidated Interest Expense" means, as of any date for the four
           -----------------------------
     fiscal quarter period ending on such date with respect to the Consolidated
     Parties on a consolidated basis, interest expense accrued during such
     period (including the interest component under Capital Leases and the
     implied interest component under Synthetic Leases, but excluding the
     amortization of debt discount and premium), as determined in accordance
     with GAAP.

          "Consolidated Net Income" means, as of any date for the four fiscal
           -----------------------
     quarter period ending on such date with respect to the Consolidated Parties
     on a consolidated basis, net income (excluding (i) non-recurring gains and
     (ii) extraordinary items) after interest expense, income and similar taxes
     and depreciation and amortization, all as determined in accordance with
     GAAP.

          "Consolidated Working Capital" means, at any time, the excess of (i)
           ----------------------------
     current assets (excluding Cash and Cash Equivalents) of the Consolidated
     Parties on a consolidated basis at such time over (ii) current liabilities
     of the Consolidated Parties on a consolidated basis at such time, all as
     determined in accordance with GAAP.

          "Consolidated Parties" means a collective reference to the Borrower
           --------------------
     and its Subsidiaries, and "Consolidated Party" means any one of them.
                                ------------------

          "Consolidated Scheduled Funded Debt Payments" means, as of any date
           -------------------------------------------
     for the four fiscal quarter period ending on such date with respect to the
     Consolidated Parties on a consolidated basis, the sum of all scheduled
     payments of principal on Funded Indebtedness (including the implied
     principal component of payments due on Capital Leases and Synthetic Leases,
     but excluding any voluntary prepayments or mandatory prepayments required
     pursuant to Section 3.3), as determined in accordance with GAAP.

          "Consolidated Total Assets" means, as of any date with respect to the
           -------------------------
     Consolidated Parties on a consolidated basis, total assets, as determined
     in accordance with GAAP.

          "Continue", "Continuation" and "Continued" shall refer to the
           --------    ------------       ---------
     continuation pursuant to Section 3.2 hereof of a Eurodollar Loan from one
     Interest Period to the next Interest Period.

          "Convert", "Conversion" and "Converted" shall refer to a conversion
           -------    ----------       ---------
     pursuant to Section 3.2 or Sections 3.7 through 3.12, inclusive, of a Base
     Rate Loan into a Eurodollar Loan.

          "Credit Agreement" means the Existing Credit Agreement as amended and
           ----------------
     restated by this Amendment.

                                       8
<PAGE>

          "Credit Documents" means a collective reference to this Credit
           ----------------
     Agreement, the Notes, the LOC Documents, each Joinder Agreement, the
     Administrative Agent's Fee Letter and the Collateral Documents (in each
     case as the same may be amended, modified, restated, supplemented,
     extended, renewed or replaced from time to time), and "Credit Document"
                                                            ---------------
     means any one of them.

          "Credit Parties" means a collective reference to the Borrower and the
           --------------
     Guarantors, and "Credit Party" means any one of them.
                      ------------

          "Credit Party Obligations" means, without duplication, (i) all of the
           ------------------------
     obligations of the Credit Parties to the Banks (including the Issuing
     Lender), the Administrative Agent and the Collateral Agent, whenever
     arising, under this Credit Agreement, the Notes, the Collateral Documents
     or any of the other Credit Documents (including, but not limited to, any
     interest accruing after the occurrence of a Bankruptcy Event with respect
     to any Credit Party, regardless of whether such interest is an allowed
     claim under the Bankruptcy Code) and (ii) all liabilities and obligations,
     whenever arising, owing from any Credit Party to any Bank, or any Affiliate
     of a Bank, arising under any Hedging Agreement.

          "Debt Issuance" means the issuance by any Consolidated Party of any
           -------------
     Indebtedness of the type referred to in clause (a) or (b) of the definition
     thereof set forth in this Section 1.1.

          "Debt Issuance Prepayment Event" means the receipt by any Consolidated
           ------------------------------
     Party of proceeds from (i) any Debt Issuance other than an Excluded Debt
     Issuance or (ii) any Qualified Secured Financing.

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

          "Defaulting Bank" means, at any time, any Bank that (a) has failed to
           ---------------
     make a Loan or purchase a Participation Interest required pursuant to the
     term of this Credit Agreement (and such failure remains uncured), (b) other
     than as set forth in (a) above, has failed to pay to the Administrative
     Agent or any Bank an amount owed by such Bank pursuant to the terms of this
     Credit Agreement, unless such amount is subject to a good faith dispute
     (and such failure remains uncured) or (c) has been deemed insolvent or has
     become subject to a bankruptcy or insolvency proceeding or with respect to
     which (or with respect to any of the assets of which) a receiver, trustee
     or similar official has been appointed.

          "Dollars" and "$" means dollars in lawful currency of the United
           -------       -
     States.

          "Domestic Subsidiary" means any direct or indirect Subsidiary of the
           -------------------
     Borrower which is incorporated or organized under the laws of any State of
     the United States or the District of Columbia.

          "Eligible Assignee" means (a) a Bank; (b) an Affiliate of a Bank; (c)
           -----------------
     an Approved Fund; and (d) any other Person (other than a natural Person)
     approved by the

                                       9
<PAGE>

     Administrative Agent and, unless (x) such Person is taking delivery of an
     assignment in connection with physical settlement of a credit derivatives
     transaction or (y) an Event of Default has occurred and is continuing, the
     Borrower (each such approval not to be unreasonably withheld or delayed).
     The parties hereto agree that it is reasonable for the Borrower to withhold
     its approval of an assignment to any Person that is not a United States
     person under Section 7701(a)(30) of the Code if such Person does not
     provide to the Borrower certification as to exemption from deduction or
     withholding of Taxes in accordance with Section 3.11(d) (and the approval
     of the Borrower shall not be deemed given by the Borrower to an assignment
     to any Person that is not a United States person under Section 7701(a)(30)
     of the Code if such Person does not provide to the Borrower certification
     as to exemption from deduction or withholding of Taxes in accordance with
     Section 3.11(d)).

          "Environmental Laws" means any and all lawful and applicable Federal,
           ------------------
     state, local and foreign statutes, laws (including, without limitation, the
     Comprehensive Environmental Response, Compensation and Liability Act of
     1980, the Resource Conservation and Recovery Act of 1976, the Toxic
     Substances Control Act, the Water Pollution Control Act, the Clean Air Act
     and the Hazardous Materials Transportation Act), regulations, ordinances,
     rules, judgments, orders, decrees, permits, concessions, grants,
     franchises, licenses, agreements or other governmental restrictions
     relating to the environment or to emissions, discharges, releases or
     threatened releases of pollutants, contaminants, chemicals, or industrial,
     toxic or hazardous substances or wastes into the environment including,
     without limitation, ambient air, surface water, ground water, or land, or
     otherwise relating to the manufacture, processing, distribution, use,
     treatment, storage, disposal, transport, or handling of pollutants,
     contaminants, chemicals, or industrial, toxic or hazardous substances or
     wastes.

          "Equity Issuance" means any issuance by any Consolidated Party to any
           ---------------
     Person of (a) shares of its Capital Stock, (b) any shares of its Capital
     Stock pursuant to the exercise of options or warrants, (c) any shares of
     its Capital Stock pursuant to the conversion of any debt securities to
     equity or (d) any options or warrants relating to its Capital Stock.  The
     term "Equity Issuance" shall not include any Asset Disposition.

          "Equity Issuance Prepayment Event" means the receipt by any
           --------------------------------
     Consolidated Party of proceeds from any Equity Issuance other than an
     Equity Issuance to a Credit Party.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
           -----
     amended, and any successor statute thereto, as interpreted by the rules and
     regulations thereunder, all as the same may be in effect from time to time.
     References to sections of ERISA shall be construed also to refer to any
     successor sections.

          "ERISA Affiliate" means an entity which is under common control with
           ---------------
     any Consolidated Party within the meaning of Section 4001(a)(14) of ERISA,
     or is a member of a group which includes any Consolidated Party and which
     is treated as a single employer under Sections 414(b) or (c) of the Code.

                                       10
<PAGE>

          "ERISA Event" means (i) with respect to any Plan, the occurrence of a
           -----------
     Reportable Event or the substantial cessation of operations (within the
     meaning of Section 4062(e) of ERISA); (ii) the withdrawal by any
     Consolidated Party or any ERISA Affiliate from a Multiple Employer Plan
     during a plan year in which it was a substantial employer (as such term is
     defined in Section 4001(a)(2) of ERISA), or the termination of a Multiple
     Employer Plan; (iii) the distribution of a notice of intent to terminate or
     the actual termination of a Plan pursuant to Section 4041(a)(2) or 4041A of
     ERISA; (iv) the institution of proceedings to terminate or the actual
     termination of a Plan by the PBGC under Section 4042 of ERISA; (v) any
     event or condition which might constitute grounds under Section 4042 of
     ERISA for the termination of, or the appointment of a trustee to
     administer, any Plan; (vi) the complete or partial withdrawal of any
     Consolidated Party or any ERISA Affiliate from a Multiemployer Plan; (vii)
     the conditions for imposition of a lien under Section 302(f) of ERISA exist
     with respect to any Plan; or (viii) the adoption of an amendment to any
     Plan requiring the provision of security to such Plan pursuant to Section
     307 of ERISA. Notwithstanding the foregoing, the term "ERISA Event" shall
     not include (x) the termination of the Ethyl Corporation Pension Plan (the
     "terminated plan") under a standard termination pursuant to Section 4041(b)
     of ERISA and the standard termination notice filed by the Borrower with the
     PBGC on March 30, 2001, (y) the adoption of a "qualified replacement plan"
     (as such term is defined in Section 4980(d)(2) of the Code) (the
     "replacement plan") or (z) the direct transfer from the terminated plan to
     the replacement plan of the amount described in Section 4980(d)(2)(B) of
     the Code.

          "Ethyl Asia" means Ethyl Asia Pacific Company, a Virginia corporation.
           ----------

          "Ethyl Corporation Pension Plan" means the Retirement Income Plan for
           ------------------------------
     the Employees of Ethyl Corporation.

          "Eurodollar Base Rate" means, for any Eurodollar Loan for any Interest
           --------------------
     Period therefor, the rate per annum (rounded upwards, if necessary, to the
     nearest 1/100/th/ of 1%) in each case determined by the Administrative
     Agent to be equal to:

               (i)  the offered rate that appears on the Dow Jones Telerate
          Screen Page 3750 (or any successor page) that displays an average
          British Bankers Association Interest Settlement Rate for deposits in
          Dollars (for delivery on the first day of the applicable Interest
          Period) for a term equivalent to the applicable Interest Period at
          approximately 11:00 a.m. (London time) two Business Days prior to the
          first day of the applicable Interest Period; or

               (ii) if for any reason the foregoing rate in clause (i) is
          unavailable or undeterminable, the offered rate on such other page or
          other service that displays an average British Bankers Association
          Interest Settlement Rate for deposits in Dollars (for delivery on the
          first day of the applicable Interest Period) for a term equivalent to
          the applicable Interest Period at approximately 11:00 a.m. (London
          time) two Business Days prior to the first day of the applicable
          Interest Period; or

                                       11
<PAGE>

               (iii) if for any reason the foregoing rates in clauses (i) and
          (ii) are unavailable or undeterminable, the rate of interest at which
          deposits in Dollars for delivery on the first day of the applicable
          Interest Period in same day funds in the approximate amount of the
          applicable Eurodollar Loan for a term equivalent to the applicable
          Interest Period would be offered by the London branch of Bank of
          America to major banks in the offshore Dollar market at approximately
          11:00 a.m. (London time) two Business Days prior to the first day of
          the applicable Interest Period.

          "Eurodollar Loan" means any Loan that bears interest at a rate based
           ---------------
     upon the Eurodollar Rate.

          "Eurodollar Rate" means, for any Eurodollar Loan for any Interest
           ---------------
     Period, therefor, the rate per annum (rounded upwards, if necessary, to the
     nearest 1/100/th/ of 1%) determined by the Administrative Agent to be equal
     to the quotient obtained by dividing (i) the Eurodollar Base Rate, by (ii)
     1 minus the Eurodollar Reserve Requirement.

          "Eurodollar Reserve Requirement" means, at any time, the maximum rate
           ------------------------------
     at which reserves (including, without limitation, any marginal, special,
     supplemental, or emergency reserves) are required to be maintained under
     regulations issued from time to time by the Board of Governors of the
     Federal Reserve System (or any successor) by member banks of the Federal
     Reserve System against "Eurocurrency liabilities" (as such term is used in
     Regulation D). Without limiting the effect of the foregoing, the Eurodollar
     Reserve Requirement shall reflect any other reserves required to be
     maintained by such member banks with respect to (i) any category of
     liabilities which includes deposits by reference to which the Adjusted
     Eurodollar Rate is to be determined, or (ii) any category of extensions of
     credit or other assets which include Eurodollar Loans. The Adjusted
     Eurodollar Rate shall be adjusted automatically on and as of the effective
     date of any change in the Eurodollar Reserve Requirement.

          "Event of Default" shall have the meaning assigned to such term in
           ----------------
     Section 9.1.

          "Excess Cash Flow" means, with respect to any fiscal year period of
           ----------------
     the Consolidated Parties on a consolidated basis, an amount equal to (a)
     Consolidated EBITDA minus (b) Consolidated Capital Expenditures minus (c)
                         -----                                       -----
     Consolidated Interest Expense minus (d) Federal, state and other income
                                   -----
     taxes payable in respect of such period by the Consolidated Parties on a
     consolidated basis minus (e) Consolidated Scheduled Funded Debt Payments
                        -----
     minus (f) the amount of any voluntary prepayments of the Term Loan, the New
     -----
     Term Loan or (to the extent accompanied by a reduction in the Revolving
     Committed Amount) the Revolving Loans minus (g) the amount of cash payments
                                           -----
     made with respect to the corporate restructuring charges of the
     Consolidated Parties during such fiscal year period minus (h) cash payments
                                                         -----
     made with respect to accrued expenses recorded in earlier periods to the
     extent not included in changes in Consolidated Working Capital identified
     below) minus (i) increases in Consolidated Working Capital plus (j)
            -----                                               ----
     decreases in Consolidated Working Capital with all working capital changes
     for both (i) and (j) excluding the effects of foreign exchange.
     Notwithstanding the foregoing, for purposes of the calculation of Excess

                                       12
<PAGE>

     Cash Flow as of the fiscal year ending December 31, 2001, Excess Cash Flow
     shall be based on the nine month period ending December 31, 2001 and all
     components of Excess Cash Flow will be calculated for such nine month
     period.

          "Excess Proceeds" shall have the meaning assigned to such term in
           ---------------
     Section 7.6(b).

          "Excluded Asset Disposition" means, with respect to any Consolidated
           --------------------------
     Party, (i) the sale, lease, license, transfer or other disposition of
     Property in the ordinary course of such Consolidated Party's business, (ii)
     any sale, lease, license, transfer or other disposition of Property by such
     Consolidated Party to any Credit Party, provided that the Credit Parties
                                             --------
     shall cause to be executed and delivered such documents, instruments and
     certificates as the Administrative Agent may request so as to cause the
     Credit Parties to be in compliance with the terms of Section 7.13 after
     giving effect to such transaction, (iii) any Involuntary Disposition by
     such Consolidated Party, (iv) any Asset Disposition by such Consolidated
     Party constituting a Permitted Investment and (v) if such Consolidated
     Party is not a Credit Party, any sale, lease, license, transfer or other
     disposition of Property by such Consolidated Party to any Consolidated
     Party that is not a Credit Party.

          "Excluded Debt Issuance" means any Debt Issuance permitted by Section
           ----------------------
     8.1.

          "Excluded Property" means, with respect to any Consolidated Party,
           -----------------
     including any Person that becomes a Consolidated Party after the Amendment
     Closing Date as contemplated by Section 7.12, (i) any owned or leased real
     or personal Property of any Consolidated Party located outside of the
     United States of America; provided that the aggregate net book value of all
                               --------
     real and personal Property of all of the Credit Parties excluded pursuant
     to this clause (i) shall not exceed $5,000,000, (ii) any owned real
     Property of such Consolidated Party (other than Old Town Farm so long as
     the Credit Parties (in accordance with the terms of Section 7.17) sell Old
     Town Farm and apply the Net Cash Proceeds of such sale to prepay the Loans
     in accordance with Section 3.3(b)(iii)(A)) which has a net book value of
     less than $500,000; provided that the aggregate net book value of all real
                         --------
     Property of all of the Consolidated Parties excluded pursuant to this
     clause (ii) shall not exceed $1,000,000, (iii) the Airport Hangar Ground
     Lease and any other leased real Property of such Credit Party which, at the
     written request of the Borrower, the Administrative Agent has agreed in
     writing in its sole discretion is not material, (iv) any leased personal
     Property of such Consolidated Party, and (v) any Property of such
     Consolidated Party which, subject to the terms of Section 8.11 and Section
     8.15, is subject to a Lien of the type described in Section 8.2(g) pursuant
     to documents which prohibit such Consolidated Party from granting any other
     Liens in such Property.

          "Executive Officer" of any Person means any of the chief executive
           -----------------
     officer, chief operating officer, principal financial officer, president,
     vice president, chief financial officer or treasurer of such Person.

          "Extension Date" means the date on which the Borrower extends the
           --------------
     Maturity Date in accordance with the terms of Section 2.5.

                                       13
<PAGE>

          "Facility Fee" shall have the meaning assigned to such term in Section
           ------------
     3.5(a).

          "Federal Funds Rate" means, for any day, the rate per annum (rounded
           ------------------
     upwards to the nearest 1/100 of 1%) equal to the weighted average of the
     rates on overnight Federal funds transactions with members of the Federal
     Reserve System arranged by Federal funds brokers on such day, as published
     by the Federal Reserve Bank on the Business Day next succeeding such day;
     provided that (a) if such day is not a Business Day, the Federal Funds Rate
     --------
     for such day shall be such rate on such transactions on the next preceding
     Business Day as so published on the next succeeding Business Day, and (b)
     if no such rate is so published on such next succeeding Business Day, the
     Federal Funds Rate for such day shall be the average rate charged to Bank
     of America on such day on such transactions as determined by the
     Administrative Agent.

          "Fees" means all fees payable pursuant to Section 3.5.
           ----

          "FIRREA" means the Financial Institutions Reform, Recovery, and
           ------
     Enforcement Act of 1989, as amended, and any successor statute thereto, as
     interpreted by the rules and regulations thereunder, as amended, including,
     without limitation, 12 CFR part 34.41 to 34.47.

          "Foreign Subsidiary" means any direct or indirect Subsidiary of the
           ------------------
     Borrower which is not a Domestic Subsidiary.

          "Fully Satisfied" means, with respect to the Credit Party Obligations
           ---------------
     as of any date, that, as of such date, (a) all principal of and interest
     accrued to such date which constitute Credit Party Obligations shall have
     been irrevocably paid in full in cash, (b) all fees, expenses and other
     amounts then due and payable which constitute Credit Party Obligations
     shall have been irrevocably paid in cash, (c) all outstanding Letters of
     Credit shall have been (i) terminated, (ii) fully irrevocably cash
     collateralized or (iii) secured by one or more letters of credit on terms
     and conditions, and with one or more financial institutions, reasonably
     satisfactory to the Issuing Lender and (d) the Commitments shall have been
     expired or terminated in full.

          "Fund" means any Person (other than a natural Person) that is (or will
           ----
     be) engaged in making, purchasing, holding or otherwise investing in
     commercial loans and similar extensions of credit in the ordinary course of
     its business.

          "Funded Indebtedness" means, with respect to any Person, without
           -------------------
     duplication, (a) all obligations of such Person for borrowed money, (b) all
     obligations of such Person evidenced by bonds (including without limitation
     any surety bonds), debentures, notes or similar instruments, or upon which
     interest payments are customarily made, (c) all obligations of such Person
     under conditional sale or other title retention agreements relating to
     Property purchased by such Person (other than customary reservations or
     retentions of title under agreements with suppliers entered into in the
     ordinary course of business), (d) all obligations of such Person issued or
     assumed as the deferred purchase price of Property or

                                       14
<PAGE>

     services purchased by such Person (other than trade debt incurred in the
     ordinary course of business and due within six months of the incurrence
     thereof) which would appear as liabilities on a balance sheet of such
     Person, prepared in accordance with GAAP, (e) the implied principal
     component of all obligations of such Person under Capital Leases, (f) the
     maximum amount of all standby letters of credit issued or bankers'
     acceptances facilities created for the account of such Person and, without
     duplication, all drafts drawn thereunder (to the extent unreimbursed), (g)
     all preferred Capital Stock issued by such Person and which by the terms
     thereof could be (at the request of the holders thereof or otherwise)
     subject to mandatory sinking fund payments, redemption or other
     acceleration (other than as a result of a Change of Control or an Asset
     Disposition that does not in fact result in a redemption of such preferred
     Capital Stock) at any time on or prior to the Maturity Date, (h) the
     principal portion of all obligations of such Person under Synthetic Leases,
     (i) all obligations of such Person to repurchase any securities issued by
     such Person at any time on or prior to the Maturity Date which repurchase
     obligations are related to the issuance thereof, including, without
     limitation, obligations commonly known as residual equity appreciation
     potential shares, (j) the aggregate amount of uncollected accounts
     receivable of such Person subject at such time to a sale of receivables (or
     similar transaction) to the extent such transaction is effected with
     recourse to such Person (whether or not such transaction would be reflected
     on the balance sheet of such Person in accordance with GAAP), (k) all
     Funded Indebtedness of others secured by (or for which the holder of such
     Funded Indebtedness has an existing right, contingent or otherwise, to be
     secured by) any Lien on, or payable out of the proceeds of production from,
     Property owned or acquired by such Person, whether or not the obligations
     secured thereby have been assumed, (l) all Guaranty Obligations of such
     Person with respect to Funded Indebtedness of another Person and (m) the
     Funded Indebtedness of any partnership or unincorporated joint venture in
     which such Person is a general partner or a joint venturer to the extent
     such Indebtedness is recourse to such Person.

          "GAAP" means generally accepted accounting principles in the United
           ----
     States applied on a consistent basis and subject to the terms of Section
     1.3 (except, in respect of Synthetic Leases, as otherwise treated herein).

          "Governmental Authority" means any Federal, state, local or foreign
           ----------------------
     court or governmental agency, authority, instrumentality or regulatory
     body.

          "Guarantors" means a collective reference to each of the Subsidiary
           ----------
     Guarantors, together with their successors and permitted assigns, and
     "Guarantor" means any one of them.
      ---------

          "Guaranty Obligations" means, with respect to any Person, without
           --------------------
     duplication, any obligations of such Person (other than endorsements in the
     ordinary course of business of negotiable instruments for deposit or
     collection) guaranteeing or intended to guarantee any Indebtedness of any
     other Person in any manner, whether direct or indirect, and including
     without limitation any obligation, whether or not contingent, (i) to
     purchase any such Indebtedness or any Property constituting security
     therefor, (ii) to advance or provide funds or other support for the payment
     or purchase of any such Indebtedness or to maintain

                                       15
<PAGE>

     working capital, solvency or other balance sheet condition of such other
     Person (including without limitation keep well agreements, maintenance
     agreements, comfort letters or similar agreements or arrangements) for the
     benefit of any holder of Indebtedness of such other Person, (iii) to lease
     or purchase Property, securities or services primarily for the purpose of
     assuring the holder of such Indebtedness against loss in respect thereof,
     or (iv) to otherwise assure or hold harmless the holder of such
     Indebtedness against loss in respect thereof. The amount of any Guaranty
     Obligation hereunder shall (subject to any limitations set forth therein)
     be deemed to be an amount equal to the outstanding principal amount (or
     maximum principal amount, if larger) of the Indebtedness in respect of
     which such Guaranty Obligation is made.

          "Hedging Agreements" means any interest rate protection agreement or
           ------------------
     foreign currency exchange agreement.

          "Indebtedness" means, with respect to any Person, without duplication,
           ------------
     (a) all obligations of such Person for borrowed money, (b) all obligations
     of such Person evidenced by bonds (including without limitation any surety
     bonds), debentures, notes or similar instruments, or upon which interest
     payments are customarily made, (c) all obligations of such Person under
     conditional sale or other title retention agreements relating to Property
     purchased by such Person (other than customary reservations or retentions
     of title under agreements with suppliers entered into in the ordinary
     course of business), (d) all obligations of such Person issued or assumed
     as the deferred purchase price of Property or services purchased by such
     Person (other than trade debt incurred in the ordinary course of business
     and due within six months of the incurrence thereof) which would appear as
     liabilities on a balance sheet of such Person, prepared in accordance with
     GAAP, (e) all obligations of such Person under take-or-pay or similar
     arrangements or under commodities agreements, (f) the implied principal
     component of all obligations of such Person under Capital Leases, (g) all
     obligations of such Person under Hedging Agreements, (h) the maximum amount
     of all standby letters of credit issued or bankers' acceptances facilities
     created for the account of such Person and, without duplication, all drafts
     drawn thereunder (to the extent unreimbursed), (i) all preferred Capital
     Stock issued by such Person and which by the terms thereof could be (at the
     request of the holders thereof or otherwise) subject to mandatory sinking
     fund payments, redemption or other acceleration (other than as a result of
     a Change of Control or an Asset Disposition that does not in fact result in
     a redemption of such preferred Capital Stock) at any time on or prior to
     the Maturity Date, (j) the principal portion of all obligations of such
     Person under Synthetic Leases, (k) all obligations of such Person to
     repurchase any securities issued by such Person at any time on or prior to
     the Maturity Date which repurchase obligations are related to the issuance
     thereof, including, without limitation, obligations commonly known as
     residual equity appreciation potential shares, (l) the aggregate amount of
     uncollected accounts receivable of such Person subject at such time to a
     sale of receivables (or similar transaction) to the extent such transaction
     is effected with recourse to such Person (whether or not such transaction
     would be reflected on the balance sheet of such Person in accordance with
     GAAP), (m) all Indebtedness of others secured by (or for which the holder
     of such Indebtedness has an existing right, contingent or otherwise, to be
     secured by) any Lien on, or payable out of the proceeds of production from,
     Property owned or acquired by such Person, whether or not the obligations
     secured thereby

                                       16
<PAGE>

     have been assumed, (n) all Guaranty Obligations of such Person with respect
     to Indebtedness of another Person and (o) the Indebtedness of any
     partnership or unincorporated joint venture in which such Person is a
     general partner or a joint venturer to the extent such Indebtedness is
     recourse to such Person.

          "Indemnified Liabilities" shall have the meaning assigned to such term
           -----------------------
     in Section 11.5(b).

          "Indemnitee" shall have the meaning assigned to such term in Section
           ----------
     11.5(b).

          "Interest Coverage Ratio" means, as of the end of any fiscal quarter
           -----------------------
     of the Consolidated Parties for the four fiscal quarter period ending on
     such date with respect to the Consolidated Parties on a consolidated basis,
     the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated
     Interest Expense for such period. Notwithstanding any provision to the
     contrary contained herein, (x) for purposes of calculating the Interest
     Coverage Ratio as of the fiscal quarter ending June 30, 2001, Consolidated
     Interest Expense for the twelve month period ending on such date shall be
     deemed to be the result obtained by multiplying Consolidated Interest
     Expense for the three month period ending on June 30, 2001 by 4, (y) for
     purposes of calculating the Interest Coverage Ratio as of the fiscal
     quarter ending September 30, 2001, Consolidated Interest Expense for the
     twelve month period ending on such date shall be deemed to be the result
     obtained by multiplying Consolidated Interest Expense for the six month
     period ending on September 30, 2001 by 2 and (z) for purposes of
     calculating the Interest Coverage Ratio as of the fiscal quarter ending
     December 31, 2001, Consolidated Interest Expense for the twelve month
     period ending on such date shall be deemed to be the result obtained by
     multiplying Consolidated Interest Expense for the nine month period ending
     on December 31, 2001 by 4/3.

          "Interest Payment Date" means (a) as to Base Rate Loans, the last
           ---------------------
     Business Day of each March, June, September and December, the date of
     repayment of principal of such Loan and the Maturity Date, and (b) as to
     Eurodollar Loans, the last day of each applicable Interest Period, the date
     of repayment of principal of such Loan and the Maturity Date, and in
     addition where the applicable Interest Period for a Eurodollar Loan is
     greater than three months, then also the date three months from the
     beginning of the Interest Period and each three months thereafter.

          "Interest Period" means, as to Eurodollar Loans, a period of one, two,
           ---------------
     three or six months' duration, as the Borrower may elect, commencing, in
     each case, on the date of the borrowing (including continuations and
     conversions thereof); provided, however, (a) if any Interest Period would
                           --------  -------
     end on a day which is not a Business Day, such Interest Period shall be
     extended to the next succeeding Business Day (except that where the next
     succeeding Business Day falls in the next succeeding calendar month, then
     on the next preceding Business Day), (b) no Interest Period shall extend
     beyond the Maturity Date and (c) where an Interest Period begins on a day
     for which there is no numerically corresponding day in the calendar month
     in which the Interest Period is to end, such Interest Period shall end on
     the last Business Day of such calendar month.

                                       17
<PAGE>

          "Investment" in any Person means (a) the acquisition (whether for
           ----------
     cash, property, services, assumption of Indebtedness, securities or
     otherwise) of assets (other than equipment, inventory and supplies in the
     ordinary course of business and other than any acquisition of assets
     constituting a Consolidated Capital Expenditure), Capital Stock, bonds,
     notes, debentures, partnership, joint ventures or other ownership interests
     or other securities of such other Person, (b) any deposit with, or advance,
     loan or other extension of credit to, such Person (other than deposits made
     in connection with the purchase of equipment inventory and supplies in the
     ordinary course of business) or (c) any other capital contribution to or
     investment in such Person, including, without limitation, any Guaranty
     Obligations (including any support for a letter of credit issued on behalf
     of such Person) incurred for the benefit of such Person and any Asset
     Disposition to such Person for consideration less than the fair market
     value of the Property disposed in such transaction, but excluding any
     Restricted Payment to such Person. Investments which are capital
     contributions or purchases of Capital Stock which have a right to
     participate in the profits of the issuer thereof shall be valued at the
     amount actually contributed or paid to purchase such Capital Stock as of
     the date of such contribution or payment. Investments which are loans,
     advances, extensions of credit or Guaranty Obligations shall be valued at
     the principal amount of such loan, advance or extension of credit
     outstanding as of the date of determination or, as applicable, the
     principal amount of the loan or advance outstanding as of the date of
     determination actually guaranteed by such Guaranty Obligation.

          "Involuntary Disposition" means any loss of, damage to or destruction
           -----------------------
     of, or any condemnation or other taking for public use of, any Property of
     any Consolidated Party.

          "Involuntary Disposition Prepayment Event" means, with respect to any
           ----------------------------------------
     Involuntary Disposition, the failure of the Credit Parties to apply (or
     cause to be applied) an amount equal to the Excess Proceeds of such
     Involuntary Disposition, if any, to repair or replace the related Property
     affected by such Involuntary Disposition within the period of 120 days
     following the date of receipt of such Excess Proceeds, subject to the terms
     and conditions of Section 7.6(b).

          "Issuing Lender" means Bank of America.
           --------------

          "Joinder Agreement" means a Joinder Agreement substantially in the
           -----------------
     form of Exhibit 7.12 hereto, executed and delivered by a new Guarantor in
             ------------
     accordance with the provisions of Section 7.12.

          "Letter of Credit" means any letter of credit issued by the Issuing
           ----------------
     Lender for the account of the Borrower in accordance with the terms of
     Section 2.2.

          "Leverage Ratio" means, as of the end of any fiscal quarter of the
           --------------
     Consolidated Parties for the four fiscal quarter period ending on such date
     with respect to the Consolidated Parties on a consolidated basis, the ratio
     of (a) Funded Indebtedness of the Consolidated Parties on a consolidated
     basis on the last day of such period to (b) Consolidated EBITDA for such
     period.

                                       18
<PAGE>

          "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
           ----
     arrangement, security interest, encumbrance, lien (statutory or otherwise),
     preference, priority or charge of any kind (including any agreement to give
     any of the foregoing, any conditional sale or other title retention
     agreement, any financing or similar statement or notice filed under the
     Uniform Commercial Code as adopted and in effect in the relevant
     jurisdiction or other similar recording or notice statute, and any lease in
     the nature thereof).

          "Loan" or "Loans" means the Revolving Loans, the Term Loan, the New
           ----      -----
     Term Loan (or a portion of any Revolving Loan, the Term Loan and/or the New
     Term Loan bearing interest at the Adjusted Base Rate or the Adjusted
     Eurodollar Rate and referred to as a Base Rate Loan or a Eurodollar Loan),
     individually or collectively, as appropriate.

          "LOC Commitment" means the commitment of the Issuing Lender to issue
           --------------
     Letters of Credit in an aggregate face amount at any time outstanding
     (together with the amounts of any unreimbursed drawings thereon) of up to
     the LOC Committed Amount.

          "LOC Committed Amount" shall have the meaning assigned to such term in
           --------------------
     Section 2.2.

          "LOC Documents" means, with respect to any Letter of Credit, such
           -------------
     Letter of Credit, any amendments thereto, any documents delivered in
     connection therewith, any application therefor, and any agreements,
     instruments, guarantees or other documents (whether general in application
     or applicable only to such Letter of Credit) governing or providing for (i)
     the rights and obligations of the parties concerned or at risk or (ii) any
     collateral security for such obligations.

          "LOC Obligations" means, at any time, the sum of (i) the maximum
           ---------------
     amount which is, or at any time thereafter may become, available to be
     drawn under Letters of Credit then outstanding, assuming compliance with
     all requirements for drawings referred to in such Letters of Credit plus
                                                                         ----
     (ii) the aggregate amount of all drawings under Letters of Credit honored
     by the Issuing Lender but not theretofore reimbursed by the Borrower.

          "Material Adverse Effect" means a material adverse effect on (i) the
           -----------------------
     condition (financial or otherwise), operations, business, assets,
     liabilities or prospects of the Consolidated Parties taken as a whole, (ii)
     the ability of any Credit Party to perform any material obligation under
     the Credit Documents to which it is a party or (iii) the material rights
     and remedies of the Administrative Agent and the Banks under the Credit
     Documents.

          "Material Foreign Subsidiary" means, at any time, any Foreign
           ---------------------------
     Subsidiary (i) which is directly owned by the Borrower or any Domestic
     Subsidiary and (ii) with respect to which either (a) the portion of
     Consolidated EBITDA attributable to such Person and its Subsidiaries on a
     consolidated basis for the most recently ended twelve-month period is 5% or
     more of total Consolidated EBITDA for such period or (b) the portion of
     Consolidated Total Assets owned by such Person and its Subsidiaries on a
     consolidated basis at such time is 5% or more of total Consolidated Total
     Assets at such time.

                                       19
<PAGE>

          "Materials of Environmental Concern" means any gasoline or petroleum
           ----------------------------------
     (including crude oil or any fraction thereof) or petroleum products or any
     hazardous or toxic substances, materials or wastes, defined or regulated as
     such in or under any Environmental Laws, including, without limitation,
     asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

          "Maturity Date" means August 28, 2002, as such date may be extended
           -------------
     pursuant to Section 2.5.

          "Moody's" means Moody's Investors Service, Inc., or any successor or
           -------
     assignee of the business of such company in the business of rating
     securities.

          "Mortgage Instruments" shall have the meaning assigned such term in
           --------------------
     Section 5.1(e).

          "Mortgage Policies" shall have the meaning assigned such term in
           -----------------
     Section 5.1(e).

          "Mortgaged Properties" shall have the meaning assigned such term in
           --------------------
     Section 5.1(e).

          "Multiemployer Plan" means a Plan which is a "multiemployer plan" as
           ------------------
     defined in Sections 3(37) or 4001(a)(3) of ERISA.

          "Multiple Employer Plan" means a Plan (other than a Multiemployer
           ----------------------
     Plan) which any Consolidated Party or any ERISA Affiliate and at least one
     employer other than the Consolidated Parties or any ERISA Affiliate are
     contributing sponsors.

          "Net Cash Proceeds" means (i) with respect to any Qualified Secured
           -----------------
     Financing, Asset Disposition, Equity Issuance, Debt Issuance or Involuntary
     Disposition, the aggregate proceeds paid in cash or Cash Equivalents
     received by any Consolidated Party in respect of any such Qualified Secured
     Financing, Asset Disposition, Equity Issuance, Debt Issuance or Involuntary
     Disposition, net of (a) reasonable direct costs (including, without
     limitation, legal, accounting and investment banking fees, and sales
     commissions) (b) taxes paid or payable as a result thereof and (c) in the
     case of any Asset Disposition, the amount necessary to retire any
     Indebtedness secured by a Permitted Lien (ranking senior to any Lien of the
     Administrative Agent) on the related Property; it being understood that
     "Net Cash Proceeds" shall include, without limitation, any cash or Cash
     Equivalents received upon the sale or other disposition of any non-cash
     consideration received by any such Consolidated Party in any Qualified
     Secured Financing, Asset Disposition, Equity Issuance, Debt Issuance or
     Involuntary Disposition and (ii) with respect to the Ethyl Corporation
     Pension Plan, the aggregate reversion realized by the Borrower in
     connection with the termination of such plan under a standard termination
     pursuant to Section 4041(b) of ERISA and the standard termination notice
     filed by the Borrower with the PBGC on March 30, 2001, net of amounts
     required to (a) pay all income and excise taxes assessed against the
     reversion , (b) transfer to a replacement pension plan the minimum amount
     necessary to cause such

                                       20
<PAGE>

     replacement plan to constitute a "qualified replacement plan" (as such term
     is defined in Section 4980(d)(2) of the Code) and (c) pay other expenses
     incurred in connection with such termination.

          "New Term Loan" shall have the meaning assigned to such term in
           -------------
     Section 2.4(a).

          "New Term Loan Commitment" means, with respect to each Bank, the
           ------------------------
     commitment of such Bank to make its portion of the New Term Loan in a
     principal amount equal to such Bank's New Term Loan Percentage (if any) of
     the New Term Loan Committed Amount.

          "New Term Loan Committed Amount" shall have the meaning assigned to
           ------------------------------
     such term in Section 2.4(a).

          "New Term Loan Percentage" means, for any Bank, the percentage
           ------------------------
     identified as its New Term Loan Percentage on Schedule 2.1(a), as such
                                                   ---------------
     percentage may be modified in connection with any assignment made in
     accordance with the provisions of Section 11.3.

          "New Term Notes" means the promissory notes of the Borrower in favor
           --------------
     of each of the Banks evidencing the New Term Loan provided pursuant to
     Section 2.4(e), individually or collectively, as appropriate, as such
     promissory notes may be amended, modified, restated, supplemented,
     extended, renewed or replaced from time to time.

          "Note" or "Notes" means the Revolving Notes, the Term Notes and/or the
           ----      -----
     New Term Notes, individually or collectively, as appropriate.

          "Noteholders" means the holders from time to time of the Senior Notes.
           -----------

          "Notice of Borrowing" means a written notice of borrowing in
           -------------------
     substantially the form of Exhibit 2.1(b)(i), as required by Section
                               -----------------
     2.1(b)(i).

          "Notice of Extension/Conversion" means the written notice of extension
           ------------------------------
     or conversion in substantially the form of Exhibit 3.2, as required by
                                                -----------
     Section 3.2.

          "Obligations" shall mean, collectively, the outstanding Revolving
           -----------
     Loans, LOC Obligations, Participation Interests, the Term Loan and the New
     Term Loan.

          "Old Town Farm" means the real property owned by the Borrower
           -------------
     consisting of approximately 1,636 acres located in King William County,
     Virginia.

          "Operating Lease" means, as applied to any Person, any lease
           ---------------
     (including, without limitation, leases which may be terminated by the
     lessee at any time) of any Property (whether real, personal or mixed) which
     is not a Capital Lease other than any such lease in which that Person is
     the lessor.

          "Other Taxes" shall have the meaning assigned to such term in Section
           -----------
     3.11(b).

                                       21
<PAGE>

          "Participation Interest" means a purchase by a Bank of a participation
           ----------------------
     in Letters of Credit or LOC Obligations as provided in Section 2.2 or in
     any Loans as provided in Section 3.14.

          "PBGC" means the Pension Benefit Guaranty Corporation established
           ----
     pursuant to Subtitle A of Title IV of ERISA and any successor thereof.

          "Permitted Asset Disposition" means (i) any Asset Disposition
           ---------------------------
     permitted by Section 8.4 and (ii) any Excluded Asset Disposition.

          "Permitted Investments" means, at any time, Investments by the
           ---------------------
     Consolidated Parties permitted to exist at such time pursuant to the terms
     of Section 8.5.

          "Permitted Liens" means, at any time, Liens in respect of Property of
           ---------------
     the Consolidated Parties permitted to exist at such time pursuant to the
     terms of Section 8.2.

          "Person" means any individual, partnership, joint venture, firm,
           ------
     corporation, limited liability company, association, trust or other
     enterprise (whether or not incorporated) or any Governmental Authority.

          "Plan" means (i) for purposes of all provisions of this Credit
           ----
     Agreement other than Sections 6.12(a)(i)(B), (a)(iv) and (a)(v), any
     employee benefit plan (as defined in Section 3(2) of ERISA) which is
     subject to Title IV of ERISA and with respect to which any Consolidated
     Party or any ERISA Affiliate is (or, if such plan were terminated at such
     time, would under Section 4069 of ERISA be deemed to be) an "employer"
     within the meaning of Section 3(5) of ERISA and (ii) for purposes of
     Section 6.12(a)(i)(B), (a)(iv) and (a)(v), any employee benefit plan (as
     defined in Section 3(3) of ERISA) which is covered by ERISA and with
     respect to which any Consolidated Party or any ERISA Affiliate is an
     "employer" within the meaning of Section 3(5) of ERISA.

          "Pledge Agreement" means the pledge agreement dated as of the
           ----------------
     Amendment Closing Date in the form of Exhibit 1.1A to be executed in favor
                                           ------------
     of the Collateral Agent by each of the Credit Parties, as amended,
     modified, restated or supplemented from time to time.

          "Prime Rate" means for any day the rate of interest in effect for such
           ----------
     day as publicly announced from time to time by Bank of America as its
     "prime rate."  Such rate is a rate set by Bank of America based upon
     various factors including Bank of America's costs and desired return,
     general economic conditions and other factors, and is used as a reference
     point for pricing some loans, which may be priced at, above, or below such
     announced rate.  Any change in such rate announced by Bank of America shall
     take effect at the opening of business on the day specified in the public
     announcement of such change.

                                       22
<PAGE>

          "Principal Amortization Payment" means (i) a principal payment on the
           ------------------------------
     Term Loan as set forth in Section 2.3(c) and (ii) following an extension of
     the Maturity Date pursuant to Section 2.5, a principal payment of the New
     Term Loan as set forth in Section 2.4(c).

          "Principal Amortization Payment Date" means the date a Principal
           -----------------------------------
     Amortization Payment is due.

          "Principal Office" means the principal office of Bank of America,
           ----------------
     presently located at Charlotte, North Carolina.

          "Pro Forma Basis" means, for purposes of calculating (utilizing the
           ---------------
     principles set forth in the second paragraph of Section 1.3) compliance
     with each of the financial covenants set forth in Section 7.11(a)-(c) in
     respect of a proposed transaction, that such transaction shall be deemed to
     have occurred as of the first day of the four fiscal-quarter period ending
     as of the most recent fiscal quarter end preceding the date of such
     transaction with respect to which the Administrative Agent has received the
     Required Financial Information.  As used herein, "transaction" shall mean
                                                       -----------
     any Asset Disposition as referred to in Section 8.4.  In connection with
     any calculation of the financial covenants set forth in Section 7.11(a)-(c)
     upon giving effect to a transaction on a Pro Forma Basis for purposes of
     any such calculation in respect of any Asset Disposition as referred to in
     Section 8.4, (1) income statement items (whether positive or negative) and
     capital expenditures attributable to the Property disposed of shall be
     excluded and (2) any Indebtedness which is retired in connection with such
     transaction shall be excluded and deemed to have been retired as of the
     first day of the applicable period.

          "Pro Forma Compliance Certificate" means a certificate of an Executive
           --------------------------------
     Officer of the Borrower delivered to the Administrative Agent in connection
     with any Asset Disposition as referred to in Section 8.4, and containing
     reasonably detailed calculations, upon giving effect to the applicable
     transaction on a Pro Forma Basis, of (A) the Leverage Ratio and the
     Interest Coverage Ratio as of the most recent fiscal quarter end preceding
     the date of the applicable transactions and (B) Consolidated EBITDA for the
     applicable period preceding the date of the applicable transaction with
     respect to which the Administrative Agent shall have received the Required
     Financial Information.

          "Property" means any interest in any kind of property or asset,
           --------
     whether real, personal or mixed, or tangible or intangible.

          "Qualified Asset-Based Financing" means the collective reference to
           -------------------------------
     any issuance of Indebtedness by any Credit Party which is secured by
     eligible accounts receivable and provides for an advance rate of at least
     85% of such eligible accounts receivable and contains other terms and
     provisions (including without limitation intercreditor provisions)
     satisfactory in form and substance to the Required Banks and/or any
     issuance of Indebtedness by any Credit Party which is secured by eligible
     inventory and provides for an advance rate of at least 65% of eligible
     inventory and contains other terms and provisions (including without
     limitation intercreditor provisions) satisfactory in form and substance to
     the Required Banks.

                                       23
<PAGE>

          "Qualified Lease Financing" means the collective reference to (i) the
           -------------------------
     issuance of Indebtedness which is secured by the Research and Development
     Facility and (ii) the issuance of Indebtedness which is secured by the
     equipment located at the Research and Development Facility, pursuant to
     which the Borrower receives aggregate net cash proceeds from such
     financings based on an advance rate of at least 60% of the appraisal value
     (pursuant to appraisals satisfactory to the Administrative Agent) of the
     Research and Development Facility and the equipment located thereon (and
     otherwise in form and substance satisfactory to the Required Banks).

          "Qualified Secured Financing" means any Qualified Lease Financing or
           ---------------------------
     any Qualified Asset-Based Financing.

          "Real Properties" means, at any time, a collective reference to each
           ---------------
     of the facilities and real properties owned, leased or operated by the
     Consolidated Parties at such time.

          "Register" shall have the meaning assigned to such term in Section
           --------
     11.3(c).

          "Regulation D, U, or X" means Regulation D, U or X, respectively, of
           ---------------------
     the Board of Governors of the Federal Reserve System as from time to time
     in effect and any successor to all or a portion thereof.

          "Release of Collateral Event" means the Borrower receives an
           ---------------------------
     investment grade rating for senior unsecured (non-credit enhanced) long
     term debt of the Borrower of at least (i) BBB- or higher from S&P or an
     equivalent rating from S&P in the event S&P changes its rating system and
     (ii) Baa3 or higher from Moody's or an equivalent rating from Moody's in
     the event Moody's changes its rating system.

          "Reportable Event" means any of the events set forth in Section
           ----------------
     4043(c) of ERISA, other than those events as to which the notice
     requirement has been waived by regulation.

          "Required Financial Information" means, with respect to the applicable
           ------------------------------
     Calculation Date, (i) the financial statements of the Consolidated Parties
     required to be delivered pursuant to Section 7.1(a) or (b) for the fiscal
     period or quarter ending as of such Calculation Date, and (ii) the
     certificate of an Executive Officer of the Borrower required by Section
     7.1(d) to be delivered with the financial statements described in clause
     (i) above.

          "Required Banks" shall mean a Bank or Banks (other than Defaulting
           --------------
     Banks) holding in the aggregate at least 75% of (i) the unfunded
     Commitments (and Participation Interests therein) and the outstanding Loans
     (and Participation Interests therein) or (ii) if all of the Commitments
     have been terminated, the outstanding Loans, LOC Obligations and
     Participation Interests.

          "Requirement of Law" means, as to any Person, the certificate of
           ------------------
     incorporation and by-laws or other organizational or governing documents of
     such Person, and any law, treaty,

                                       24
<PAGE>

     rule or regulation or determination of an arbitrator or a court or other
     Governmental Authority, in each case applicable to or binding upon such
     Person or to which any of its material property is subject.

          "Research and Development Facility" means the real estate at the
           ---------------------------------
     Borrower's research and development facility in Richmond, Virginia.

          "Restricted Payment" means (i) any dividend or other payment or
           ------------------
     distribution, direct or indirect, on account of any shares of any class of
     Capital Stock of any Consolidated Party, now or hereafter outstanding
     (including without limitation any payment in connection with any
     dissolution, merger, consolidation or disposition involving any
     Consolidated Party), or to the holders, in their capacity as such, of any
     shares of any class of Capital Stock of any Consolidated Party, now or
     hereafter outstanding (other than dividends or distributions payable in
     Capital Stock of the applicable Person and dividends or distributions
     payable (directly or indirectly through Subsidiaries) to any Credit Party
     other than the Parent), (ii) any redemption, retirement, sinking fund or
     similar payment, purchase or other acquisition for value, direct or
     indirect, of any shares of any class of Capital Stock of any Consolidated
     Party, now or hereafter outstanding and (iii) any payment made to retire,
     or to obtain the surrender of, any outstanding warrants, options or other
     rights to acquire shares of any class of Capital Stock of any Consolidated
     Party, now or hereafter outstanding.

          "Revolving Commitment" means, with respect to each Bank, the
           --------------------
     commitment of such Bank in an aggregate principal amount at any time
     outstanding of up to such Bank's Revolving Commitment Percentage (if any)
     of the Revolving Committed Amount, (i) to make Revolving Loans in
     accordance with the provisions of Section 2.1(a) and (ii) to purchase
     Participation Interests in Letters of Credit in accordance with the
     provisions of Section 2.2(c).

          "Revolving Commitment Percentage" means, for any Bank, the percentage
           -------------------------------
     identified as its Revolving Commitment Percentage on Schedule 2.1(a), as
                                                          ---------------
     such percentage may be modified in connection with any assignment made in
     accordance with the provisions of Section 11.3.

          "Revolving Committed Amount" shall have the meaning assigned to such
           --------------------------
     term in Section 2.1(a).

          "Revolving Loans" shall have the meaning assigned to such term in
           ---------------
     Section 2.1(a).

          "Revolving Note" or "Revolving Notes" means the promissory notes of
           --------------      ---------------
     the Borrower in favor of each Bank provided pursuant to Section 2.1(e) and
     evidencing the Revolving Loans of such Bank, individually or collectively,
     as appropriate, as such promissory notes may be amended, modified,
     restated, supplemented, extended, renewed or replaced from time to time.

                                       25
<PAGE>

          "S&P" means Standard & Poor's Ratings Group, a division of The McGraw
           ---
     Hill Companies, Inc., or any successor or assignee of the business of such
     division in the business of rating securities.

          "Sale and Leaseback Transaction" means any arrangement pursuant to
           ------------------------------
     which any Consolidated Party, directly or indirectly, becomes liable as
     lessee, guarantor or other surety with respect to any lease, whether an
     Operating Lease or a Capital Lease, of any Property (a) which such
     Consolidated Party has sold or transferred (or is to sell or transfer) to a
     Person which is not a Consolidated Party or (b) which such Consolidated
     Party intends to use for substantially the same purpose as any other
     Property which has been sold or transferred (or is to be sold or
     transferred) by such Consolidated Party to another Person which is not a
     Consolidated Party in connection with such lease.

          "Securities Act" means the Securities Act of 1933, as amended, and all
           --------------
     regulations issued pursuant thereto.

          "Securities Exchange Act" means the Securities Exchange Act of 1934,
           -----------------------
     as amended, and all regulations issued pursuant thereto.

          "Security Agreement" means the security agreement dated as of the
           ------------------
     Amendment Closing Date in the form of Exhibit 1.1B to be executed in favor
                                           ------------
     of the Collateral Agent by each of the Credit Parties, as amended,
     modified, restated or supplemented from time to time.

          "Senior Note" means any one of the debentures, notes or other
           -----------
     evidences of indebtedness, issued by the Borrower pursuant to the Senior
     Note Indenture, as such Senior Notes may be amended, modified, restated or
     supplemented and in effect from time to time in accordance with the terms
     hereof.

          "Senior Note Indenture" means the Indenture, dated as of June 15,
           ---------------------
     1985, by and among the Borrower and Morgan Guaranty Trust Company of New
     York, Trustee, as the same may be amended, modified, restated or
     supplemented and in effect from time to time in accordance with the terms
     hereof.

          "Single Employer Plan" means any Plan which is covered by Title IV of
           --------------------
     ERISA, but which is not a Multiemployer Plan or a Multiple Employer Plan.

          "Solvent" or "Solvency" means, with respect to any Person as of a
           -------      --------
     particular date, that on such date (i) such Person is able to pay its debts
     and other liabilities, contingent obligations and other commitments as they
     mature in the normal course of business, (ii) 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 in their
     ordinary course, (iii) such Person is not engaged in a business or a
     transaction, and is not about to engage in a business or a transaction, for
     which such Person's Property would constitute unreasonably small capital
     after giving due consideration to the prevailing practice in the industry
     in which such Person is engaged or is to engage, (iv) the fair value of the
     Property

                                       26
<PAGE>

     of such Person is greater than the total amount of liabilities, including,
     without limitation, contingent liabilities, of such Person and (v) the
     present fair salable value of the assets of such Person is not less than
     the amount that will be required to pay the probable liability of such
     Person on its debts as they become absolute and matured. In computing the
     amount of contingent liabilities at any time, it is intended that such
     liabilities will be computed at the amount which, in light of all the facts
     and circumstances existing at such time, represents the amount that can
     reasonably be expected to become an actual or matured liability.

          "Standby Letter of Credit Fee" shall have the meaning assigned to such
           ----------------------------
     term in Section 3.5(b)(i).

          "Subsidiary" means, as to any Person at any time, (a) any corporation
           ----------
     more than 50% of whose Capital Stock of any class or classes having by the
     terms thereof ordinary voting power to elect a majority of the directors of
     such corporation (irrespective of whether or not at such time, any class or
     classes of such corporation shall have or might have voting power by reason
     of the happening of any contingency) is at such time owned by such Person
     directly or indirectly through Subsidiaries, and (b) any partnership,
     association, joint venture or other entity of which such Person directly or
     indirectly through Subsidiaries owns at such time more than 50% of the
     Capital Stock.

          "Subsidiary Guarantor" means each of the Persons identified as a
           --------------------
     "Subsidiary Guarantor" on the signature pages hereto and each Person which
     becomes a Domestic Subsidiary and may hereafter execute a Joinder Agreement
     pursuant to Section 7.12, together with their successors and permitted
     assigns, and "Subsidiary Guarantor" means any one of them.
                   --------------------

          "Synthetic Lease" means any synthetic lease, tax retention operating
           ---------------
     lease, off-balance sheet loan or similar off-balance sheet financing
     product where such transaction is considered borrowed money indebtedness
     for tax purposes but is classified as an Operating Lease under GAAP.

          "Taxes" shall have the meaning assigned to such term in Section
           -----
     3.11(a).

          "Term Loan" shall have the meaning assigned to such term in Section
           ---------
     2.3(a).

          "Term Loan Commitment" means, with respect to each Bank, the
           --------------------
     commitment of such Bank to make its portion of the Term Loan in a principal
     amount equal to such Bank's  Term Loan Percentage (if any) of the Term Loan
     Committed Amount.

          "Term Loan Percentage" means, for any Bank, the percentage identified
           --------------------
     as its Term Loan Percentage on Schedule 2.1(a), as such percentage may be
                                    ---------------
     modified in connection with any assignment made in accordance with the
     provisions of Section 11.3.

          "Term Loan Committed Amount" shall have the meaning assigned to such
           --------------------------
     term in Section 2.3(a).

                                       27
<PAGE>

          "Term Notes" means the promissory notes of the Borrower in favor of
           ----------
     each of the Banks evidencing the Term Loan provided pursuant to Section
     2.3(e), individually or collectively, as appropriate, as such promissory
     notes may be amended, modified, restated, supplemented, extended, renewed
     or replaced from time to time.

          "Total Commitments" shall mean the aggregate amount of the Revolving
           -----------------
     Commitments, the Term Loan Commitments and the New Term Loan Commitments.

          "Trade Letter of Credit Fee" shall have the meaning assigned to such
           --------------------------
     term in Section 3.5(b)(ii).

          "Voting Stock" means, with respect to any Person, Capital Stock issued
           ------------
     by such Person the holders of which are ordinarily, in the absence of
     contingencies, entitled to vote for the election of directors (or persons
     performing similar functions) of such Person, even though the right so to
     vote has been suspended by the happening of such a contingency.

          "Wholly Owned Subsidiary" means any Person 100% of whose Voting Stock
           -----------------------
     is at the time owned by the Borrower directly or indirectly through other
     Persons 100% of whose Voting Stock is at the time owned, directly or
     indirectly, by the Borrower.

     1.2   Computation of Time Periods.
           ---------------------------

     For purposes of computation of periods of time hereunder, the word "from"
means "from and including" and the words "to" and "until" each mean "to but
excluding."

     1.3   Accounting Terms.
           ----------------

     Except as otherwise expressly provided herein, all accounting terms used
herein shall be interpreted, and all financial statements and certificates and
reports as to financial matters required to be delivered to the Banks hereunder
shall be prepared, in accordance with GAAP applied on a consistent basis;
provided, however, that calculations of the implied principal component of all
--------  -------
obligations under any Synthetic Lease or the implied interest component of any
rent paid under any Synthetic Lease shall be made by the Borrower in accordance
with accepted financial practice and consistent with the terms of such Synthetic
Lease.  All calculations made for the purposes of determining compliance with
this Credit Agreement shall (except as otherwise expressly provided herein) be
made by application of GAAP applied on a basis consistent with the most recent
annual or quarterly financial statements delivered pursuant to Section 7.1 (or,
prior to the delivery of the first financial statements pursuant to Section 7.1,
consistent with the financial statements as at December 31, 2000); provided,
                                                                   --------
however, if (a) the Credit Parties shall object to determining such compliance
-------
on such basis at the time of delivery of such financial statements due to any
change in GAAP or the rules promulgated with respect thereto or (b) the
Administrative Agent or the Required Banks shall so object in writing within 60
days after delivery of such financial statements, then such calculations shall
be made on a basis consistent with the most recent financial statements
delivered by the Credit Parties to the Banks as to which no such objection shall
have been made.

                                       28
<PAGE>

     Notwithstanding the above, the parties hereto acknowledge and agree that,
for purposes of all calculations made under the financial covenants set forth in
Section 7.11 (including without limitation for purposes of the definitions of
"Applicable Percentage" and "Pro Forma Basis" set forth in Section 1.1), after
consummation of any Asset Disposition (i) income statement items (whether
positive or negative) and capital expenditures attributable to the Property
disposed of shall be excluded to the extent relating to any period occurring
prior to the date of such transaction and (ii) Indebtedness which is retired
shall be excluded and deemed to have been retired as of the first day of the
applicable period.

                                   SECTION 2

                               CREDIT FACILITIES

     2.1  Revolving Loans.
          ---------------

          (a)  Revolving Commitment.  Subject to the terms and conditions hereof
               --------------------
     and in reliance upon the representations and warranties set forth herein,
     each Bank severally agrees to make available to the Borrower such Bank's
     Revolving Commitment Percentage of revolving credit loans requested by the
     Borrower in Dollars ("Revolving Loans") from time to time from the Closing
                           ---------------
     Date until the Maturity Date, or such earlier date as the Revolving
     Commitments shall have been terminated as provided herein; provided,
                                                                --------
     however, that the sum of the aggregate outstanding principal amount of
     -------
     Revolving Loans shall not exceed ONE HUNDRED SEVENTY MILLION DOLLARS
     ($170,000,000) (as such aggregate maximum amount may be reduced from time
     to time as provided in Section 3.3 and Section 3.4, the "Revolving
                                                              ---------
     Committed Amount"); provided, further, (A) with regard to each Bank
     ----------------    --------  -------
     individually, such Bank's outstanding Revolving Loans shall not exceed such
     Bank's Revolving Commitment Percentage of the Revolving Committed Amount,
     and (B) the sum of the aggregate outstanding principal amount of Revolving
     Loans plus LOC Obligations shall not exceed the Revolving Committed Amount.
           ----
     Revolving Loans may consist of Base Rate Loans or Eurodollar Loans, or a
     combination thereof, as the Borrower may request; provided, however, that
                                                       --------  -------
     no more than five Eurodollar Loans which are Revolving Loans shall be
     outstanding hereunder at any time (it being understood that, for purposes
     hereof, Eurodollar Loans with different Interest Periods shall be
     considered as separate Eurodollar Loans, even if they begin on the same
     date, although borrowings, extensions and conversions may, in accordance
     with the provisions hereof, be combined at the end of existing Interest
     Periods to constitute a new Eurodollar Loan with a single Interest Period).
     Revolving Loans hereunder may be repaid and reborrowed in accordance with
     the provisions hereof.

          (b)  Revolving Loan Borrowings.
               -------------------------

               (i)  Notice of Borrowing.  The Borrower shall request a Revolving
                    -------------------
          Loan borrowing by written notice (or telephonic notice promptly
          confirmed in writing) to the Administrative Agent not later than 11:00
          A.M. (Charlotte, North Carolina time) on the Business Day prior to the
          date of the requested borrowing in the case of Base

                                       29
<PAGE>

          Rate Loans, and on the third Business Day prior to the date of the
          requested borrowing in the case of Eurodollar Loans. Each such request
          for borrowing shall be irrevocable and shall specify (A) that a
          Revolving Loan is requested, (B) the date of the requested borrowing
          (which shall be a Business Day), (C) the aggregate principal amount to
          be borrowed, and (D) whether the borrowing shall be comprised of Base
          Rate Loans, Eurodollar Loans or a combination thereof, and if
          Eurodollar Loans are requested, the Interest Period(s) therefor. If
          the Borrower shall fail to specify in any such Notice of Borrowing (I)
          an applicable Interest Period in the case of a Eurodollar Loan, then
          such notice shall be deemed to be a request for an Interest Period of
          one month, or (II) the type of Revolving Loan requested, then such
          notice shall be deemed to be a request for a Base Rate Loan hereunder.
          The Administrative Agent shall give notice to each affected Bank
          promptly upon receipt of each Notice of Borrowing pursuant to this
          Section 2.1(b)(i), the contents thereof and each such Bank's share of
          any borrowing to be made pursuant thereto.

               (ii)  Minimum Amounts.  Each Eurodollar Loan or Base Rate Loan
                     ---------------
          that is a Revolving Loan shall be in a minimum aggregate principal
          amount of $3,000,000 and integral multiples of $100,000 in excess
          thereof (or the remaining amount of the Revolving Committed Amount, if
          less).

               (iii) Advances.  Each Bank will make its Revolving Commitment
                     --------
          Percentage of each Revolving Loan borrowing available to the
          Administrative Agent for the account of the Borrower as specified in
          Section 3.15(a), or in such other manner as the Administrative Agent
          may specify in writing, by 1:00 P.M. (Charlotte, North Carolina time)
          on the date specified in the applicable Notice of Borrowing in Dollars
          and in funds immediately available to the Administrative Agent.  Such
          borrowing will then be made available to the Borrower by the
          Administrative Agent by crediting the account of the Borrower on the
          books of such office with the aggregate of the amounts made available
          to the Administrative Agent by the Banks and in like funds as received
          by the Administrative Agent.

          (c)  Repayment.  The principal amount of all Revolving Loans shall be
               ---------
     due and payable in full on the Maturity Date, unless accelerated sooner
     pursuant to Section 9.2.

          (d)  Interest.  Subject to the provisions of Section 3.1,
               --------

               (i)  Base Rate Loans.  During such periods as Revolving Loans
                    ---------------
          shall be comprised in whole or in part of Base Rate Loans, such Base
          Rate Loans shall bear interest at a per annum rate equal to the
          Adjusted Base Rate.

               (ii) Eurodollar Loans.  During such periods as Revolving Loans
                    ----------------
          shall be comprised in whole or in part of Eurodollar Loans, such
          Eurodollar Loans shall bear interest at a per annum rate equal to the
          Adjusted Eurodollar Rate.

     Interest on Revolving Loans shall be payable in arrears on each applicable
     Interest Payment Date (or at such other times as may be specified herein).

                                       30
<PAGE>

          (e)  Revolving Notes.  The Revolving Loans made by each Bank shall be
               ---------------
     evidenced by a duly executed promissory note of the Borrower to such Bank
     in an original principal amount equal to such Bank's Revolving Commitment
     Percentage of the Revolving Committed Amount and in substantially the form
     of Exhibit 2.1(e).
        --------------

     2.2  Letter of Credit Subfacility.
          ----------------------------

          (a)  Issuance.  Subject to the terms and conditions hereof and in
               --------
     reliance upon the agreements of the other Banks set forth in Section 2.2(c)
     and the representations and warranties set forth herein, the Issuing Lender
     agrees to issue, and each Bank severally agrees to participate in the
     issuance by the Issuing Lender of, standby and trade Letters of Credit in
     Dollars from time to time from the Closing Date until the date fifteen (15)
     days prior to the Maturity Date as the Borrower may request, in a form
     acceptable to the Issuing Lender; provided, however, that (i) the LOC
                                       --------  -------
     Obligations outstanding shall not at any time exceed SIXTY MILLION DOLLARS
     ($60,000,000) (the "LOC Committed Amount") and (ii) the sum of the
                         --------------------
     aggregate outstanding principal amount of Revolving Loans plus LOC
                                                               ----
     Obligations shall not at any time exceed the Revolving Committed Amount.
     No Letter of Credit shall (x) have an original expiry date more than one
     year from the date of issuance (provided that any such Letter of Credit may
     contain customary "evergreen" provisions pursuant to which the expiry date
     is automatically extended by a specific time period unless the Issuing
     Lender gives notice to the beneficiary of such Letter of Credit at least a
     specified time period prior to the expiry date then in effect) or (y) as
     originally issued or as extended, have an expiry date extending beyond the
     date fifteen (15) days prior to the Maturity Date.  Each Letter of Credit
     shall comply with the related LOC Documents.  The issuance and expiry dates
     of each Letter of Credit shall be a Business Day.

          (b)  Notice and Reports.  The request for the issuance of a Letter of
               ------------------
     Credit shall be submitted by the Borrower to the Issuing Lender at least
     three (3) Business Days prior to the requested date of issuance.  The
     Issuing Lender will, at least quarterly and more frequently upon request,
     disseminate to each of the Banks a detailed report specifying the Letters
     of Credit which are then issued and outstanding and any activity with
     respect thereto which may have occurred since the date of the prior report,
     and including therein, among other things, the beneficiary, the face amount
     and the expiry date, as well as any payment or expirations which may have
     occurred.

          (c)  Participation.  Each Bank, upon issuance of a Letter of Credit,
               -------------
     shall be deemed to have purchased without recourse a Participation Interest
     from the Issuing Lender in such Letter of Credit and the obligations
     arising thereunder and any collateral relating thereto, in each case in an
     amount equal to its pro rata share of the obligations under such Letter of
     Credit (based on the respective Revolving Commitment Percentages of the
     Banks) and shall absolutely, unconditionally and irrevocably assume and be
     obligated to pay to the Issuing Lender and discharge when due, its pro rata
     share of the obligations arising under such Letter of Credit.  Without
     limiting the scope and nature of each Bank's Participation Interest in any
     Letter of Credit, to the extent that the Issuing Lender has not been
     reimbursed as required hereunder or under any such Letter of Credit, each
     such Bank shall pay to the

                                       31
<PAGE>

     Issuing Lender its pro rata share of such unreimbursed drawing in same day
     funds on the day of notification by the Issuing Lender of an unreimbursed
     drawing pursuant to the provisions of subsection (d) below. The obligation
     of each Bank to so reimburse the Issuing Lender shall be absolute and
     unconditional and shall not be affected by the occurrence of a Default, an
     Event of Default or any other occurrence or event. Any such reimbursement
     shall not relieve or otherwise impair the obligation of the Borrower to
     reimburse the Issuing Lender under any Letter of Credit, together with
     interest as hereinafter provided.

          (d)  Reimbursement.  In the event of any drawing under any Letter of
               -------------
     Credit, the Issuing Lender will promptly notify the Borrower.  Unless the
     Borrower shall immediately notify the Issuing Lender that the Borrower
     intends to otherwise reimburse the Issuing Lender for such drawing, the
     Borrower shall be deemed to have requested that the Banks make a Revolving
     Loan in the amount of the drawing as provided in subsection (e) below on
     the related Letter of Credit, the proceeds of which will be used to satisfy
     the related reimbursement obligations.  The Borrower promises to reimburse
     the Issuing Lender on the day of drawing under any Letter of Credit (either
     with the proceeds of a Revolving Loan obtained hereunder or otherwise) in
     same day funds.  If the Borrower shall fail to reimburse the Issuing Lender
     as provided hereinabove, the Borrower promises to pay the Issuing Lender
     interest on the unreimbursed amount of such drawing on demand at a per
     annum rate equal to the Adjusted Base Rate plus 2%.  The Borrower's
                                                ----
     reimbursement obligations hereunder shall be absolute and unconditional
     under all circumstances irrespective of any rights of setoff, counterclaim
     or defense to payment the Borrower may claim or have against the Issuing
     Lender, the Administrative Agent, the Banks, the beneficiary of the Letter
     of Credit drawn upon or any other Person, including without limitation any
     defense based on any failure of the Borrower or any other Credit Party to
     receive consideration or the legality, validity, regularity or
     unenforceability of the Letter of Credit.  The Issuing Lender will promptly
     notify the other Banks of the amount of any unreimbursed drawing and each
     Bank shall promptly pay to the Administrative Agent for the account of the
     Issuing Lender in Dollars and in immediately available funds, the amount of
     such Bank's pro rata share of such unreimbursed drawing.  Such payment
     shall be made on the day such notice is received by such Bank from the
     Issuing Lender if such notice is received at or before 2:00 P.M.
     (Charlotte, North Carolina time), and otherwise such payment shall be made
     at or before 12:00 Noon (Charlotte, North Carolina time) on the Business
     Day next succeeding the day such notice is received.  If such Bank does not
     pay such amount to the Issuing Lender in full upon such request, such Bank
     shall, on demand, pay to the Administrative Agent for the account of the
     Issuing Lender interest on the unpaid amount during the period from the
     date of such drawing until such Bank pays such amount to the Issuing Lender
     in full at a rate per annum equal to, if paid within two (2) Business Days
     of the date that such Bank is required to make payments of such amount
     pursuant to the preceding sentence, the Federal Funds Rate and thereafter
     at a rate equal to the Base Rate.  Each Bank's obligation to make such
     payment to the Issuing Lender, and the right of the Issuing Lender to
     receive the same, shall be absolute and unconditional, shall not be
     affected by any circumstance whatsoever and without regard to the
     termination of this Credit Agreement or the Commitments hereunder, the
     existence of a Default or Event of Default or the acceleration of the
     obligations of the Borrower hereunder and shall be made without any offset,
     abatement, withholding or reduction whatsoever.  Simultaneously with the
     making of each such payment by a Bank to

                                       32
<PAGE>

     the Issuing Lender, such Bank shall, automatically and without any further
     action on the part of the Issuing Lender or such Bank, acquire a
     Participation Interest in an amount equal to such payment (excluding the
     portion of such payment constituting interest owing to the Issuing Lender)
     in the related unreimbursed drawing portion of the LOC Obligation and in
     the interest thereon and in the related LOC Documents, and shall have a
     claim against the Borrower with respect thereto.

          (e)  Repayment with Revolving Loans.  On any day on which the Borrower
               ------------------------------
     shall have requested, or been deemed to have requested, a Revolving Loan
     advance to reimburse a drawing under a Letter of Credit, the Administrative
     Agent shall give notice to the Banks that a Revolving Loan has been
     requested or deemed requested by the Borrower to be made in connection with
     a drawing under a Letter of Credit, in which case a Revolving Loan advance
     comprised of Base Rate Loans (or Eurodollar Loans to the extent the
     Borrower has complied with the procedures of Section 2.1(b)(i) with respect
     thereto) shall be immediately made to the Borrower by all Banks
     (notwithstanding any termination of the Commitments pursuant to Section
     9.2) pro rata based on the respective Revolving Commitment Percentages of
          --- ----
     the Banks (determined before giving effect to any termination of the
     Commitments pursuant to Section 9.2) and the proceeds thereof shall be paid
     directly to the Issuing Lender for application to the respective LOC
     Obligations.  Each such Bank hereby irrevocably agrees to make its pro rata
     share of each such Revolving Loan immediately upon any such request or
     deemed request in the amount, in the manner and on the date specified in
     the preceding sentence notwithstanding (i) the amount of such borrowing may
                            ---------------
     not comply with the minimum amount for advances of Revolving Loans
     otherwise required hereunder, (ii) whether any conditions specified in
     Section 5.2 are then satisfied, (iii) whether a Default or an Event of
     Default then exists, (iv) failure for any such request or deemed request
     for Revolving Loan to be made by the time otherwise required hereunder, (v)
     whether the date of such borrowing is a date on which Revolving Loans are
     otherwise permitted to be made hereunder or (vi) any termination of the
     Commitments relating thereto immediately prior to or contemporaneously with
     such borrowing.  In the event that any Revolving Loan cannot for any reason
     be made on the date otherwise required above (including, without
     limitation, as a result of the commencement of a proceeding under the
     Bankruptcy Code with respect to the Borrower or any other Credit Party),
     then each such Bank hereby agrees that it shall forthwith purchase (as of
     the date such borrowing would otherwise have occurred, but adjusted for any
     payments received from the Borrower on or after such date and prior to such
     purchase) from the Issuing Lender such Participation Interests in the
     outstanding LOC Obligations as shall be necessary to cause each such Bank
     to share in such LOC Obligations ratably (based upon the respective
     Revolving Commitment Percentages of the Banks (determined before giving
     effect to any termination of the Commitments pursuant to Section 9.2)),
     provided that at the time any purchase of Participation Interests pursuant
     --------
     to this sentence is actually made, the purchasing Bank shall be required to
     pay to the Issuing Lender, to the extent not paid to the Issuing Lender by
     the Borrower in accordance with the terms of subsection (d) above, interest
     on the principal amount of Participation Interests purchased for each day
     from and including the day upon which such borrowing would otherwise have
     occurred to but excluding the date of payment for such Participation
     Interests, at the rate equal to, if paid within two (2) Business Days of

                                       33
<PAGE>

     the date of the Revolving Loan advance, the Federal Funds Rate, and
     thereafter at a rate equal to the Base Rate.

          (f)  Designation of Consolidated Parties as Account Parties.
               ------------------------------------------------------
     Notwithstanding anything to the contrary set forth in this Credit
     Agreement, including without limitation Section 2.2(a), a Letter of Credit
     issued hereunder may contain a statement to the effect that such Letter of
     Credit is issued for the account of any Subsidiary of the Borrower,
     provided that notwithstanding such statement, the Borrower shall be the
     actual account party for all purposes of this Credit Agreement for such
     Letter of Credit and such statement shall not affect the Borrower's
     reimbursement obligations hereunder with respect to such Letter of Credit.

          (g)  Renewal, Extension.  The renewal or extension of any Letter of
               ------------------
     Credit shall, for purposes hereof, be treated in all respects the same as
     the issuance of a new Letter of Credit hereunder.

          (h)  Uniform Customs and Practices.  Unless otherwise expressly agreed
               -----------------------------
     by the Issuing Lender and the Borrower when a Letter of Credit is issued
     (i) the rules of the "International Standby Practices 1998" published by
     the Institute of International Banking Law & Practice (or such later
     version thereof as may be in effect at the time of issuance) (the "ISP")
                                                                        ---
     shall apply to each standby Letter of Credit, and (ii) the rules of the
     Uniform Customs and Practice for Documentary Credits, as most recently
     published by the International Chamber of Commerce (the "ICC") at the time
                                                              ---
     of issuance (including the ICC decision published by the Commission on
     Banking Technique and Practice on April 6, 1998 regarding the European
     single currency (euro)) shall apply to each commercial Letter of Credit.

          (i)  Indemnification; Nature of Issuing Lender's Duties.
               --------------------------------------------------

               (i)  In addition to its other obligations under this Section 2.2,
          the Borrower hereby agrees to pay, and protect, indemnify and save
          each Bank harmless from and against, any and all claims, demands,
          liabilities, damages, losses, costs, charges and expenses (including
          reasonable attorneys' fees) that such Bank may incur or be subject to
          as a consequence, direct or indirect, of (A) the issuance of any
          Letter of Credit or (B) the failure of such Bank or the Issuing Lender
          to honor a drawing under a Letter of Credit as a result of any act or
          omission, whether rightful or wrongful, of any present or future de
          jure or de facto government or Governmental Authority (all such acts
          or omissions, herein called "Government Acts").
                                       ---------------

               (ii) As between the Borrower and the Banks (including the Issuing
          Lender), the Borrower shall assume all risks of the acts, omissions or
          misuse of any Letter of Credit by the beneficiary thereof. No Bank
          (including the Issuing Lender) shall be responsible: (A) for the form,
          validity, sufficiency, accuracy, genuineness or legal effect of any
          document submitted by any party in connection with the application for
          and issuance of any Letter of Credit, even if it should in fact prove
          to

                                       34
<PAGE>

          be in any or all respects invalid, insufficient, inaccurate,
          fraudulent or forged; (B) for the validity or sufficiency of any
          instrument transferring or assigning or purporting to transfer or
          assign any Letter of Credit or the rights or benefits thereunder or
          proceeds thereof, in whole or in part, that may prove to be invalid or
          ineffective for any reason; (C) for errors, omissions, interruptions
          or delays in transmission or delivery of any messages, by mail, cable,
          telegraph, telex or otherwise, whether or not they be in cipher; (D)
          for any loss or delay in the transmission or otherwise of any document
          required in order to make a drawing under a Letter of Credit or of the
          proceeds thereof; and (E) for any consequences arising from causes
          beyond the control of such Bank, including, without limitation, any
          Government Acts. None of the above shall affect, impair, or prevent
          the vesting of the Issuing Lender's rights or powers hereunder.

               (iii)  In furtherance and extension and not in limitation of the
          specific provisions hereinabove set forth, any action taken or omitted
          by any Bank (including the Issuing Lender), under or in connection
          with any Letter of Credit or the related certificates, if taken or
          omitted in good faith, shall not put such Bank under any resulting
          liability to the Borrower or any other Credit Party. It is the
          intention of the parties that this Credit Agreement shall be construed
          and applied to protect and indemnify each Bank (including the Issuing
          Lender) against any and all risks involved in the issuance of the
          Letters of Credit, all of which risks are hereby assumed by the
          Borrower (on behalf of itself and each of the other Credit Parties),
          including, without limitation, any and all Government Acts. No Bank
          (including the Issuing Lender) shall, in any way, be liable for any
          failure by such Bank or anyone else to pay any drawing under any
          Letter of Credit as a result of any Government Acts or any other cause
          beyond the control of such Bank.

               (iv)   Nothing in this subsection (i) is intended to limit the
          reimbursement obligations of the Borrower contained in subsection (d)
          above.  The obligations of the Borrower under this subsection (i)
          shall survive the termination of this Credit Agreement.  No act or
          omission of any current or prior beneficiary of a Letter of Credit
          shall in any way affect or impair the rights of the Banks (including
          the Issuing Lender) to enforce any right, power or benefit under this
          Credit Agreement.

               (v)    Notwithstanding anything to the contrary contained in this
          subsection (i), the Borrower shall have no obligation to indemnify any
          Bank (including the Issuing Lender) in respect of any liability
          incurred by such Bank (A) arising solely out of the gross negligence
          or willful misconduct of such Bank, as determined by a court of
          competent jurisdiction, or (B) caused by such Bank's failure to pay
          under any Letter of Credit after presentation to it of a request
          strictly complying with the terms and conditions of such Letter of
          Credit, as determined by a court of competent jurisdiction, unless
          such payment is prohibited by any law, regulation, court order or
          decree.

          (j)  Responsibility of Issuing Lender.  It is expressly understood and
               --------------------------------
     agreed that the obligations of the Issuing Lender hereunder to the Banks
     are only those expressly set

                                       35
<PAGE>

     forth in this Credit Agreement and that the Issuing Lender shall be
     entitled to assume that the conditions precedent set forth in Section 5.2
     have been satisfied unless it shall have acquired actual knowledge that any
     such condition precedent has not been satisfied; provided, however, that
                                                      --------  -------
     nothing set forth in this Section 2.2 shall be deemed to prejudice the
     right of any Bank to recover from the Issuing Lender any amounts made
     available by such Bank to the Issuing Lender pursuant to this Section 2.2
     in the event that it is determined by a court of competent jurisdiction
     that the payment with respect to a Letter of Credit constituted gross
     negligence or willful misconduct on the part of the Issuing Lender.

          (k)  Limitation on Obligation of the Issuing Lender.  Notwithstanding
               ----------------------------------------------
     anything contained herein to the contrary, the Issuing Lender shall not be
     under any obligation to issue, renew or extend any Letter of Credit if (i)
     any order, judgment or decree of any Governmental Authority or arbitrator
     shall by its terms purport to enjoin or restrain the Issuing Lender from
     issuing a Letter of Credit, or any applicable law, rule or regulation or
     any request or directive (whether or not having the force of law) from any
     governmental with jurisdiction over the Issuing Lender shall prohibit, or
     request that the Issuing Lender refrain from, the issuance of letters of
     credit generally or any such Letter of Credit in particular, or shall
     impose upon the Issuing Lender with respect to any such Letter of Credit
     any restriction, reserve or capital requirement (for which the Issuing
     Lender is not otherwise compensated hereunder) not in effect on the Closing
     Date, or shall impose upon the Issuing Lender any unreimbursed loss, costs
     or expense which was not applicable on the Closing Date and which the
     Issuing Lender should deem material to it in good faith, or (ii) the
     issuance, renewal or extension would violate or otherwise contravene its
     internal policy.

          (l)  Conflict with LOC Documents. In the event of any conflict between
               ---------------------------
     this Credit Agreement and any LOC Document (including any letter of credit
     application), this Credit Agreement shall control.

     2.3  Term Loan.
          ---------

          (a)  Term Commitment. On the Closing Date, the Banks made available to
               ---------------
     the Borrower such Bank's Term Loan Percentage of a term loan in Dollars
     (the "Term Loan") in the aggregate principal amount of THREE HUNDRED
           ---------
     MILLION DOLLARS ($300,000,000) (the "Term Loan Committed Amount").  As of
                                          --------------------------
     the Amendment Closing Date, the aggregate outstanding amount of the Term
     Loan is ONE HUNDRED FORTY MILLION DOLLARS ($140,000,000).  The Term Loan
     may consist of Base Rate Loans or Eurodollar Loans, or a combination
     thereof, as the Borrower may request; provided, however, that no more than
                                           --------  -------
     five Eurodollar Loans which comprise the Term Loan shall be outstanding
     hereunder at any time (it being understood that, for purposes hereof,
     Eurodollar Loans with different Interest Periods shall be considered as
     separate Eurodollar Loans, even if they begin on the same date, although
     borrowings, extensions and conversions may, in accordance with the
     provisions hereof, be combined at the end of existing Interest Periods to
     constitute a new Eurodollar Loan with a single Interest Period).  Amounts
     repaid on the Term Loan may not be reborrowed.

                                       36
<PAGE>

          (b) Minimum Amounts.  Each Eurodollar Loan or Base Rate Loan that is
              ---------------
     part of the Term Loan shall be in an aggregate principal amount that is not
     less than $5,000,000 and integral multiples of $100,000 (or the then
     remaining principal balance of the Term Loan, if less).

          (c) Repayment of Term Loan.  The principal amount of the Term Loan
              ----------------------
     shall be repaid in the amounts and on the dates set forth below, unless
     accelerated sooner pursuant to Section 9.2.

          May 28, 2001                         $ 20,000,000
          August 28, 2001                      $ 20,000,000
          January 2, 2002                      $ 25,000,000
          February 28, 2002                    $ 25,000,000
          May 28, 2002                         $ 25,000,000
          August 28, 2002                      $ 25,000,000
                                               ------------
                                   Total       $140,000,000

          (d) Interest.  Subject to the provisions of Section 3.1, the Term Loan
              --------
     shall bear interest at a per annum rate equal to:

              (i) Base Rate Loans. During such periods as the Term Loan shall be
                  ---------------
          comprised in whole or in part of Base Rate Loans, such Base Rate Loans
          shall bear interest at a per annum rate equal to the Adjusted Base
          Rate.

              (ii) Eurodollar Loans. During such periods as the Term Loan shall
                   ----------------
          be comprised in whole or in part of Eurodollar Loans, such Eurodollar
          Loans shall bear interest at a per annum rate equal to the Adjusted
          Eurodollar Rate.

     Interest on the Term Loan shall be payable in arrears on each applicable
     Interest Payment Date (or at such other times as may be specified herein).

          (e) Term Notes.  The portion of the Term Loan made by each Bank shall
              ----------
     be evidenced by a duly executed promissory note of the Borrower to such
     Bank in an original principal amount equal to such Bank's Term Loan
     Percentage of the Term Loan and substantially in the form of Exhibit
                                                                  -------
     2.3(e).
     ------

     2.4  New Term Loan.
          -------------

          (a) New Term Commitment.  Subject to the terms and conditions hereof
              -------------------
     and in reliance upon the representations and warranties set forth herein,
     each Bank severally agrees that on the Amendment Closing Date, an amount
     equal to TWO HUNDRED THIRTY MILLION DOLLARS ($230,000,000) of Revolving
     Loans outstanding on such date pursuant to Section 2.1(a) shall be
     converted and deemed funded as a term loan (the "New Term Loan"), in
                                                      -------------
     accordance with each Bank's New Term Loan Percentage (the "New Term Loan
                                                                -------------
     Committed Amount").  The New Term Loan may consist of Base Rate Loans or
     ----------------
     Eurodollar Loans, or a combination thereof, as the Borrower may request;

     provided,
     --------

                                       37
<PAGE>

     however, that no more than five Eurodollar Loans which comprise the New
     -------
     Term Loan shall be outstanding hereunder at any time (it being understood
     that, for purposes hereof, Eurodollar Loans with different Interest Periods
     shall be considered as separate Eurodollar Loans, even if they begin on the
     same date, although borrowings, extensions and conversions may, in
     accordance with the provisions hereof, be combined at the end of existing
     Interest Periods to constitute a new Eurodollar Loan with a single Interest
     Period). Amounts repaid on the New Term Loan may not be reborrowed.

          (b) Minimum Amounts.  Each Eurodollar Loan or Base Rate Loan that is
              ---------------
     part of the New Term Loan shall be in an aggregate principal amount that is
     not less than $5,000,000 and integral multiples of $100,000 (or the then
     remaining principal balance of the New Term Loan, if less).

          (c) Repayment of New Term Loan.  The principal amount of the New Term
              --------------------------
     Loan shall be repaid in full on the Maturity Date, unless accelerated
     sooner pursuant to Section 9.2; provided, however, that if the Maturity
                                     --------
     Date is extended pursuant to Section 2.5, the principal amount of the New
     Term Loan outstanding on the Extension Date shall be repaid in quarterly
     installments of $10 million on the last Business Day of each December,
     March, June and September (commencing with a principal payment on December
     31, 2002), with the balance payable on the Maturity Date, as may be
     extended pursuant to Section 2.5.

          (d) Interest.  Subject to the provisions of Section 3.1, the New Term
              --------
     Loan shall bear interest at a per annum rate equal to:

              (i)  Base Rate Loans. During such periods as the New Term Loan
                   ---------------
          shall be comprised in whole or in part of Base Rate Loans, such Base
          Rate Loans shall bear interest at a per annum rate equal to the
          Adjusted Base Rate.

              (ii) Eurodollar Loans. During such periods as the New Term Loan
                   ----------------
          shall be comprised in whole or in part of Eurodollar Loans, such
          Eurodollar Loans shall bear interest at a per annum rate equal to the
          Adjusted Eurodollar Rate.

     Interest on the New Term Loan shall be payable in arrears on each
     applicable Interest Payment Date (or at such other times as may be
     specified herein).

          (e) New Term Loan Notes.  The portion of the New Term Loan made by
              -------------------
     each Bank shall be evidenced by a duly executed promissory note of the
     Borrower to such Bank in an original principal amount equal to such Bank's
     New Term Loan Percentage of the New Term Loan and substantially in the form
     of Exhibit 2.4(e).
        --------------

     2.5  Extension of Maturity Date.
          --------------------------

     The Maturity Date shall be extended to December 31, 2003 if the following
conditions are satisfied on or before January 2, 2002:

                                       38
<PAGE>

          (a) The Borrower shall have made payments on Loans in an amount
     sufficient to reduce the sum of (x) the Term Loan outstanding on the
     Amendment Closing Date (y) the New Term Loan outstanding on the Amendment
     Closing Date and (z) Revolving Committed Amount as of the Amendment Closing
     Date, by an amount of not less than $220 million; and

          (b) The Borrower shall have delivered a certification (as of the
     Extension Date) to the Administrative Agent stating that the representation
     and warranties set forth in Section 6 are true and correct in all material
     respects as of such date (except for those which expressly relate to an
     earlier date).

                                   SECTION 3

                OTHER PROVISIONS RELATING TO CREDIT FACILITIES
                ----------------------------------------------

     3.1  Default Rate.
          ------------

     Upon the occurrence, and during the continuance, of an Event of Default,
(i) the principal of and, to the extent permitted by law, interest on the Loans
and any other amounts owing hereunder or under the other Credit Documents shall
bear interest, payable on demand, at a per annum rate 2% greater than the rate
which would otherwise be applicable (or if no rate is applicable, whether in
respect of interest, fees or other amounts, then the Adjusted Base Rate plus 2%)
                                                                        ----
and (ii) the Standby Letter of Credit Fee and the Trade Letter of Credit shall
accrue at a per annum rate 2% greater than the rate which would otherwise be
applicable.

     3.2  Extension and Conversion.
          ------------------------

     The Borrower shall have the option, on any Business Day, to extend existing
Loans into a subsequent permissible Interest Period or to convert Loans into
Loans of another interest rate type; provided, however, that (i) except as
                                     --------  -------
provided in Section 3.8, Eurodollar Loans may be converted into Base Rate Loans
or extended as Eurodollar Loans for new Interest Periods only on the last day of
the Interest Period applicable thereto, (ii) Loans extended as, or converted
into, Eurodollar Loans shall be subject to the terms of the definition of
"Interest Period" set forth in Section 1.1 and shall be in such minimum amounts
 ---------------
as provided in, with respect to Revolving Loans, Section 2.1(b)(ii), with
respect to the Term Loan, Section 2.3(b), or, with respect to the New Term Loan,
Section 2.4(b), (iii) no more than five Eurodollar Loans which are Revolving
Loans, five Eurodollar Loans which comprise the Term Loan and three Eurodollar
Loans which comprise the New Term Loan shall be outstanding hereunder at any
time (it being understood that, for purposes hereof, Eurodollar Loans with
different Interest Periods shall be considered as separate Eurodollar Loans,
even if they begin on the same date, although borrowings, extensions and
conversions may, in accordance with the provisions hereof, be combined at the
end of existing Interest Periods to constitute a new Eurodollar Loan with a
single Interest Period) and (iv) any request for extension or conversion of a
Eurodollar Loan which shall fail to specify an Interest Period shall be deemed
to be a request for an Interest Period of one month.  Each such extension or
conversion shall be effected by the Borrower by giving a Notice of
Extension/Conversion (or telephonic notice promptly confirmed in writing) to the

                                       39
<PAGE>

office of the Administrative Agent specified in Schedule 2.1(a), or at such
                                                ---------------
other office as the Administrative Agent may designate in writing, prior to
11:00 A.M. (Charlotte, North Carolina time) on the Business Day of, in the case
of the conversion of a Eurodollar Loan into a Base Rate Loan, and on the third
Business Day prior to, in the case of the extension of a Eurodollar Loan as, or
conversion of a Base Rate Loan into, a Eurodollar Loan, the date of the proposed
extension or conversion, specifying the date of the proposed extension or
conversion, the Loans to be so extended or converted, the types of Loans into
which such Loans are to be converted and, if appropriate, the applicable
Interest Periods with respect thereto.  In the event the Borrower fails to
request extension or conversion of any Eurodollar Loan in accordance with this
Section 3.2, or any such conversion or extension is not permitted or required by
this Section 3.2, then such Eurodollar Loan shall be automatically converted
into a Base Rate Loan at the end of the Interest Period applicable thereto.  The
Administrative Agent shall give each Bank notice as promptly as practicable of
any such proposed extension or conversion affecting any Loan.

     3.3  Prepayments.
          -----------

          (a)  Voluntary Prepayments.  The Borrower shall have the right to
               ---------------------
     prepay Loans in whole or in part from time to time; provided, however, that
                                                         --------  -------
     (i) each partial prepayment of Loans shall be in a minimum principal amount
     of $1,000,000 and integral multiples of $100,000 in excess thereof (or the
     then remaining principal balance of the Revolving Loans, the Term Loan or
     the New Term Loan, as applicable, if less) and (ii) any prepayment of the
     Loans (other than the Revolving Loans) shall be applied pro rata to the
     Term Loan (applied as follows:  (A) with respect to the first $10 million
     of prepayment proceeds applied to the Term Loan, to the installment of
     principal due on May 28, 2001, (B) with respect to the next $10 million of
     prepayment proceeds applied to the Term Loan, to the installment of
     principal due on August 28, 2001, (C) with respect to the next $15 million
     of prepayment proceeds applied to the Term Loan, to the installment of
     principal due on January 2, 2002 (D) with respect to the next $15 million
     of prepayment proceeds applied to the Term Loan, to the installment of
     principal due on February 28, 2002, (E) with respect to the next $15
     million of prepayment proceeds applied to the Term Loan, to the installment
     of principal due on May 28, 2002, (F) with other prepayment proceeds
     applied to the Term Loan, to the installment of principal due on August 28,
     2002 and (G) after making the prepayments set forth in clauses (A) through
     (G) above, to the remaining principal installments in the inverse order of
     maturity thereof) and the principal amount of the New Term Loan due on the
     Maturity Date (and if the Maturity Date for the New Term Loan has been
     extended pursuant to Section 2.5, to the remaining principal installments
     in the inverse order of maturity thereof).   Subject to the foregoing
     terms, amounts prepaid under this Section 3.3(a) shall be applied as the
     Borrower may elect; provided that if the Borrower shall fail to specify
                         --------
     with respect to any voluntary prepayment, such voluntary prepayment shall
     be applied first to Revolving Loans and then pro rata to the Term Loan and
     the New Term Loan (to be applied in the manner set forth above), in each
     case first to Base Rate Loans and then to Eurodollar Loans in direct order
     of Interest Period maturities.  All prepayments under this Section 3.3(a)
     shall be subject to Section 3.12, but otherwise without premium or penalty,
     and shall be accompanied by interest on the principal amount prepaid
     through the date of prepayment.

                                       40
<PAGE>

     (b)    Mandatory Prepayments.
            ---------------------

     (i)    (A)  Revolving Committed Amount.  If at any time, the sum of the
                 --------------------------
            aggregate outstanding principal amount of Revolving Loans plus
                                                                      ----
            LOC Obligations shall exceed the Revolving Committed Amount, the
            Borrower immediately shall prepay the Revolving Loans and (after all
            Revolving Loans have been repaid) cash collateralize the LOC
            Obligations, in an amount sufficient to eliminate such excess.

            (B)  LOC Committed Amount.  If at any time, the sum of the aggregate
                 --------------------
            principal amount of LOC Obligations shall exceed the LOC Committed
            Amount, the Borrower immediately shall cash collateralize the LOC
            Obligations in an amount sufficient to eliminate such excess.

     (ii)   Excess Cash Flow.  Within 90 days after the end of each fiscal
            ----------------
     year (commencing with the fiscal year ending December 31, 2001), the
     Borrower shall prepay the Loans in an amount equal to 75% of Excess Cash
     Flow for such prior fiscal year (such prepayment to be applied as set forth
     in clause (vii) below).

     (iii)  (A)  Asset Dispositions. Immediately upon the consummation of any
                 ------------------
            Asset Disposition other than an Excluded Asset Disposition, the
            Borrower shall prepay the Loans in an aggregate amount equal to 100%
            of the Net Cash Proceeds of the related Asset Disposition (such
            prepayment to be applied as set forth in clause (vii) below).

            (B)  Involuntary Dispositions. Immediately upon the occurrence of an
                 ------------------------
            Involuntary Disposition Prepayment Event, the Borrower shall prepay
            the Loans in an aggregate amount equal to 100% of the Excess
            Proceeds (such prepayment to be applied as set forth in clause (vii)
            below).

     (iv)   Debt Issuances. Immediately upon the occurrence of a Debt Issuance
            --------------
     Prepayment Event, the Borrower shall prepay the Loans in an aggregate
     amount equal to 100% of the Net Cash Proceeds of the related Debt Issuance
     (such prepayment to be applied as set forth in clause (vii) below).

     (v)    Equity Issuances.  Immediately upon the occurrence of an Equity
            ----------------
     Issuance Prepayment Event, the Borrower shall prepay the Loans in an
     aggregate amount equal to 100% of the Net Cash Proceeds of the related
     Equity Issuance (such prepayment to be applied as set forth in clause (vii)
     below).

     (vi)   Pension Program. Immediately upon the Borrower's realization of Net
            ---------------
     Cash Proceeds attributable to the termination of the Ethyl Corporation
     Pension Plan, the Borrower shall prepay the Loans in an aggregate amount
     equal to 100% of the Net Cash Proceeds received from such plan (such
     prepayment to be applied as set forth in clause (vii) below).

                                       41
<PAGE>

          (vii)   Application of Mandatory Prepayments. All amounts required to
                  ------------------------------------
          be paid pursuant to this Section 3.3(b) shall be applied as follows:
          (A) with respect to all amounts prepaid pursuant to Section
          3.3(b)(i)(A), to Revolving Loans and (after all Revolving Loans have
          been repaid) to a cash collateral account in respect of LOC
          Obligations, (B) with respect to all amounts prepaid pursuant to
          Section 3.3(b)(i)(B), to a cash collateral account in respect of LOC
          Obligations, (C) with respect to all amounts prepaid pursuant to
          Section 3.3(b)(ii), (iii), (iv), (v) or (vi): (A) 34 1/2% of such
          amounts shall be applied to the Term Loan (applied as follows: (i)
          with respect to the first $10 million of prepayment proceeds applied
          to the Term Loan, to the installment of principal due on May 28, 2001,
          (ii) with respect to the next $10 million of prepayment proceeds
          applied to the Term Loan, to the installment of principal due on
          August 28, 2001, (iii) with respect to the next $15 million of
          prepayment proceeds applied to the Term Loan, to the installment of
          principal due on January 2, 2002, (iv) with respect to the next $15
          million of prepayment proceeds applied to the Term Loan, to the
          installment of principal due on February 28, 2002, (v) with respect to
          the next $15 million of prepayment proceeds applied to the Term Loan,
          to the installment of principal due on May 28, 2002, (vi) with other
          prepayment proceeds applied to the Term Loan, to the installment of
          principal due on August 28, 2002) and (vii) after making the
          prepayments set forth in clauses (i) through (vi) above, in the
          inverse order of maturity) and (B) 65 1/2% of all such amounts shall
          be applied pro rata to (I) the Revolving Loans (with a corresponding
          reduction of the Revolving Committed Amount) and (II) the New Term
          Loan (and if the Maturity Date has been extended pursuant to Section
          2.5, in the inverse order of maturity thereof). Within the parameters
          of the applications set forth above, prepayments shall be applied
          first to Base Rate Loans and then to Eurodollar Loans in direct order
          of Interest Period maturities. All prepayments under this Section
          3.3(b) shall be subject to Section 3.12, but otherwise without premium
          or penalty, and shall be accompanied by interest on the principal
          amount prepaid through the date of prepayment.

          (viii)  Prepayment Account. If the Borrower is required to make a
                  ------------------
          mandatory prepayment of Eurodollar Loans under this Section 3.3(b),
          the Borrower shall have the right, in lieu of making such prepayment
          in full, to deposit an amount equal to such mandatory prepayment with
          the Administrative Agent in a cash collateral account maintained
          (pursuant to documentation reasonably satisfactory to the
          Administrative Agent) by and in the sole dominion and control of the
          Administrative Agent. Any amounts so deposited shall be held by the
          Administrative Agent as collateral for the prepayment of such
          Eurodollar Loans and shall be applied to the prepayment of the
          applicable Eurodollar Loans at the end of the current Interest Periods
          applicable thereto.

     3.4  Termination and Reduction of Revolving Committed Amount.
          -------------------------------------------------------

          (a)     Voluntary Reductions. The Borrower may from time to time
                  --------------------
     permanently reduce or terminate the Revolving Committed Amount in whole or
     in part (in minimum aggregate amounts of $1,000,000 or in integral
     multiples of $100,000 in excess thereof (or,

                                       42
<PAGE>

     if less, the full remaining amount of the then applicable Revolving
     Committed Amount)) upon five Business Days' prior written notice to the
     Administrative Agent; provided, however, no such termination or reduction
                           --------  -------
     shall be made which would cause the sum of the aggregate outstanding
     principal amount of Revolving Loans plus LOC Obligations to exceed the
                                         ----
     Revolving Committed Amount, unless, concurrently with such termination or
     reduction, the Revolving Loans are repaid to the extent necessary to
     eliminate such excess. The Administrative Agent shall promptly notify each
     affected Bank of receipt by the Administrative Agent of any notice from the
     Borrower pursuant to this Section 3.4(a).

          (b)  Term Loan Commitments.  The Term Loan Commitment of each Bank, if
               ---------------------
     any, terminated on the Closing Date.  The New Term Loan Commitment of each
     Bank has been terminated as of the Amendment Closing Date.

          (c)  Maturity Date.  Unless terminated sooner pursuant to Section
               -------------
     3.4(a) or Section 9.2, the Revolving Commitments of the Banks and the LOC
     Commitment of the Issuing Lender shall automatically terminate on the
     Maturity Date.

          (d)  General.  The Borrower shall pay to the Administrative Agent for
               -------
     the account of the Banks in accordance with the terms of Section 3.5(a), on
     the date of each termination or reduction of the Revolving Committed
     Amount, the Facility Fee accrued through the date of such termination or
     reduction on the amount of the Revolving Committed Amount so terminated or
     reduced.

     3.5  Fees.
          ----

          (a)  Facility Fee.  In consideration of the Revolving Commitments and
               ------------
     the New Term Loan Commitments of the Banks hereunder, the Borrower promises
     to pay to the Administrative Agent for the pro rata account of each Bank a
     fee, on each March 31, June 30, September 30 and December 31 and on the
     date on which the Revolving Commitment of such Bank shall be reduced or
     terminated as provided herein, a commitment fee (a "Facility Fee") at a
                                                         ------------
     rate per annum equal to the Applicable Percentage in effect from time to
     time on the sum of (i) the average daily amount of the Revolving Commitment
     of such Bank plus (ii) the average daily amount of the New Terms Loan
                  ----
     outstanding during the preceding quarter (or shorter period commencing with
     the Closing Date or ending with the Maturity Date or any date on which the
     Revolving Commitment of such Bank shall be terminated).  All Facility Fees
     shall be computed on the basis of the actual number of days elapsed in a
     year of 360 days.  The Facility Fee due to each Bank shall commence to
     accrue on the Closing Date, and shall cease to accrue on the earlier of (x)
     the Maturity Date and (y) the termination of the Revolving Commitment of
     such Bank and the payment in full of the portion of the New Term Loan owing
     to such Bank as provided herein.

          (b)  Letter of Credit Fees.
               ---------------------

               (i)   Standby Letter of Credit Issuance Fee.  In consideration of
                     -------------------------------------
          the issuance of standby Letters of Credit hereunder, the Borrower
          promises to pay to the

                                       43
<PAGE>

          Administrative Agent for the account of each Bank a fee (the "Standby
                                                                        -------
          Letter of Credit Fee") on such Bank's Revolving Commitment Percentage
          --------------------
          of the average daily maximum amount available to be drawn under each
          such standby Letter of Credit computed at a per annum rate for each
          day from the date of issuance to the date of expiration equal to the
          Applicable Percentage. The Standby Letter of Credit Fee will be
          payable quarterly in arrears on the last Business Day of each March,
          June, September and December for the immediately preceding quarter (or
          a portion thereof).

               (ii)   Trade Letter of Credit Drawing Fee. In consideration of
                      ----------------------------------
          the issuance of trade Letters of Credit hereunder, the Borrower
          promises to pay to the Administrative Agent for the account of each
          Bank a fee (the "Trade Letter of Credit Fee") on such Bank's Revolving
                           --------------------------
          Commitment Percentage of the average daily maximum amount available to
          be drawn under each such trade Letter of Credit computed at a per
          annum rate for each day from the date of issuance to the date of
          expiration equal to the Applicable Percentage. The Trade Letter of
          Credit Fee will be payable quarterly in arrears on the last Business
          Day of each March, June, September and December for the immediately
          preceding quarter (or a portion thereof).

               (iii)  Issuing Lender Fees.  In addition to the Standby Letter of
                      -------------------
          Credit Fee payable pursuant to clause (i) above and the Trade Letter
          of Credit Fee payable pursuant to clause (ii) above, the Borrower
          promises to pay to the Administrative Agent for the account of the
          Issuing Lender without sharing by the other Banks (i) a letter of
          credit fronting fee of 1/8% on the average daily maximum amount
          available to be drawn under each Letter of Credit computed at a per
          annum rate for each day from the date of issuance to the date of
          expiration (which fronting fee shall be payable quarterly in arrears
          on the last Business Day of each March, June, September and December
          for the immediately preceding quarter (or a portion thereof)) and (ii)
          the customary charges from time to time of the Issuing Lender with
          respect to the issuance, amendment, transfer, administration,
          cancellation and conversion of, and drawings under, such Letters of
          Credit.

          (c)  Administrative Agent's Fees.  The Borrower promises to pay to the
               ---------------------------
     Administrative Agent, for its own account, for the account of the Issuing
     Lender, the fees referred to in the Administrative Agent's Fee Letter.

          (d)  Qualified Secured Financings.  If the Credit Parties fail to
               ----------------------------
     obtain Net Cash Proceeds totaling $115 million in the aggregate with
     respect to Qualified Secured Financings (and apply such Net Cash Proceeds
     to the prepayment of the Term Loan in accordance with Section 3.3(b)(iv))
     by May 31, 2001, the Borrower shall (within 5 Business Days following May
     31, 2001) pay to the Administrative Agent for the account of each Bank a
     fee equal to 0.125% of the Commitment of each Bank.

                                       44
<PAGE>

     3.6  Capital Adequacy.
          ----------------

     If any Bank has determined, after the date hereof, that the adoption or the
becoming effective of, or any change in, or any change by any Governmental
Authority, central bank or comparable agency charged with the interpretation or
administration thereof in the interpretation or administration of, any
applicable law, rule or regulation regarding capital adequacy, or compliance by
such Bank with any request or directive regarding capital adequacy (whether or
not having the force of law) of any such authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on such
Bank's capital or assets as a consequence of its commitments or obligations
hereunder to a level below that which such Bank could have achieved but for such
adoption, effectiveness, change or compliance (taking into consideration such
Bank's policies with respect to capital adequacy), then, upon notice from such
Bank to the Borrower, the Borrower shall be obligated to pay to such Bank such
additional amount or amounts as will compensate such Bank for such reduction.
Each determination by any such Bank of amounts owing under this Section shall,
absent manifest error, be conclusive and binding on the parties hereto.

     3.7  Limitation on Eurodollar Loans.
          ------------------------------

          If on or prior to the first day of any Interest Period for any
Eurodollar Loan:

          (a)  the Administrative Agent determines (which determination shall be
     conclusive) that by reason of circumstances affecting the relevant market,
     adequate and reasonable means do not exist for ascertaining the Eurodollar
     Rate for such Interest Period; or

          (b)  the Required Banks determine (which determination shall be
     conclusive) and notify the Administrative Agent that the Eurodollar Rate
     will not adequately and fairly reflect the cost to the Banks of funding
     Eurodollar Loans for such Interest Period;

then the Administrative Agent shall give the Borrower prompt notice thereof, and
so long as such condition remains in effect, the Banks shall be under no
obligation to make additional Eurodollar Loans, Continue Eurodollar Loans, or to
Convert Base Rate Loans into Eurodollar Loans and the Borrower shall, on the
last day(s) of the then current Interest Period(s) for the outstanding
Eurodollar Loans, either prepay such Eurodollar Loans or Convert such Eurodollar
Loans into Base Rate Loans in accordance with the terms of this Credit
Agreement.

     3.8  Illegality.
          ----------

     Notwithstanding any other provision of this Credit Agreement, in the event
that it becomes unlawful for any Bank or its Applicable Lending Office to make,
maintain, or fund Eurodollar Loans hereunder, then such Bank shall promptly
notify the Borrower thereof and such Bank's obligation to make or Continue
Eurodollar Loans and to Convert Base Rate Loans into Eurodollar Loans shall be
suspended until such time as such Bank may again make, maintain, and fund
Eurodollar Loans (in which case the provisions of Section 3.10 shall be
applicable).

                                       45
<PAGE>

     3.9  Requirements of Law.
          -------------------

          If, after the date hereof, the adoption of any applicable law, rule,
or regulation, or any change in any applicable law, rule, or regulation, or any
change in the interpretation or administration thereof by any Governmental
Authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or compliance by any Bank (or its Applicable Lending
Office) with any request or directive (whether or not having the force of law)
of any such Governmental Authority, central bank, or comparable agency:

          (i)    shall subject such Bank (or its Applicable Lending Office) to
     any tax, duty, or other charge with respect to any Eurodollar Loans, its
     Notes, or its obligation to make Eurodollar Loans, or change the basis of
     taxation of any amounts payable to such Bank (or its Applicable Lending
     Office) under this Credit Agreement or its Notes in respect of any
     Eurodollar Loans (other than taxes imposed on or measured by its income or
     gross receipts and franchise taxes imposed on such Bank by the jurisdiction
     in which such Bank has its principal office or such Applicable Lending
     Office or by any political subdivision thereof);

          (ii)   shall impose, modify, or deem applicable any reserve, special
     deposit, assessment, or similar requirement (other than the Eurodollar
     Reserve Requirement utilized in the determination of the Adjusted
     Eurodollar Rate) relating to any extensions of credit or other assets of,
     or any deposits with or other liabilities or commitments of, such Bank (or
     its Applicable Lending Office), including the Commitment of such Bank
     hereunder; or

          (iii)  shall impose on such Bank (or its Applicable Lending Office) or
     the London interbank market any other condition affecting this Credit
     Agreement or its Notes or any of such extensions of credit or liabilities
     or commitments;

and the result of any of the foregoing is to increase the cost to such Bank (or
its Applicable Lending Office) of making, Converting into, Continuing, or
maintaining any Eurodollar Loans or to reduce any sum received or receivable by
such Bank (or its Applicable Lending Office) under this Credit Agreement or its
Notes with respect to any Eurodollar Loans, then the Borrower shall pay to such
Bank on demand such amount or amounts as will compensate such Bank for such
increased cost or reduction.  If any Bank requests compensation by the Borrower
under this Section 3.9, the Borrower may, by notice to such Bank (with a copy to
the Administrative Agent), suspend the obligation of such Bank to make or
Continue Eurodollar Loans, or to Convert Base Rate Loans into Eurodollar Loans,
until the event or condition giving rise to such request ceases to be in effect
(in which case the provisions of Section 3.10 shall be applicable); provided
                                                                    --------
that such suspension shall not affect the right of such Bank to receive the
compensation so requested.  Each Bank shall promptly notify the Borrower and the
Administrative Agent of any event of which it has knowledge, occurring after the
date hereof, which will entitle such Bank to compensation pursuant to this
Section 3.9 and will designate a different Applicable Lending Office if such
designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the judgment of such Bank, be otherwise disadvantageous to it.
Any Bank claiming compensation under this Section 3.9 shall furnish to the
Borrower and the Administrative Agent a statement setting forth the additional
amount or amounts to be paid to it hereunder which shall be conclusive in the
absence of manifest error.  In determining such amount, such Bank may use any
reasonable averaging and attribution methods.

                                       46
<PAGE>

     3.10  Treatment of Affected Loans.
           ---------------------------

           If the obligation of any Bank to make any Eurodollar Loan or to
Continue, or to Convert Base Rate Loans into, Eurodollar Loans shall be
suspended pursuant to Section 3.7, 3.8 or 3.9 hereof, such Bank's Eurodollar
Loans shall be automatically Converted into Base Rate Loans on the last day(s)
of the then current Interest Period(s) for such Eurodollar Loans (or, in the
case of a Conversion, on such earlier date as such Bank may specify to the
Borrower with a copy to the Administrative Agent) and, unless and until such
Bank gives notice as provided below that the circumstances specified in Section
3.7, 3.8 or 3.9 hereof that gave rise to such Conversion no longer exist:

           (a)  to the extent that such Bank's Eurodollar Loans have been so
     Converted, all payments and prepayments of principal that would otherwise
     be applied to such Bank's Eurodollar Loans shall be applied instead to its
     Base Rate Loans; and

           (b)  all Loans that would otherwise be made or Continued by such Bank
     as Eurodollar Loans shall be made or Continued instead as Base Rate Loans,
     and all Base Rate Loans of such Bank that would otherwise be Converted into
     Eurodollar Loans shall remain as Base Rate Loans.

If such Bank gives notice to the Borrower (with a copy to the Administrative
Agent) that the circumstances specified in Section 3.7, 3.8 or 3.9 hereof that
gave rise to the Conversion of such Bank's Eurodollar Loans pursuant to this
Section 3.10 no longer exist (which such Bank agrees to do promptly upon such
circumstances ceasing to exist) at a time when Eurodollar Loans made by other
Banks are outstanding, such Bank's Base Rate Loans shall be automatically
Converted, on the first day(s) of the next succeeding Interest Period(s) for
such outstanding Eurodollar Loans, to the extent necessary so that, after giving
effect thereto, all Loans held by the Banks holding Eurodollar Loans and by such
Bank are held pro rata (as to principal amounts, interest rate basis, and
Interest Periods) in accordance with their respective Commitments.

     3.11  Taxes.
           -----

           (a)  Except as otherwise expressly provided herein, any and all
     payments by any Credit Party to or for the account of any Bank or the
     Administrative Agent hereunder or under any other Credit Document shall be
     made free and clear of and without deduction for any and all present or
     future taxes, duties, levies, imposts, deductions, charges or withholdings,
     and all liabilities with respect thereto, excluding, in the case of each
                                               ---------
     Bank and the Administrative Agent, taxes imposed on or measured by its
     income or gross receipts, and franchise taxes imposed on it, by the
     jurisdiction under the laws of which such Bank (or its Applicable Lending
     Office) or the Administrative Agent (as the case may be) is organized or
     any political subdivision thereof (all such non-excluded taxes, duties,
     levies, imposts, deductions, charges, withholdings, and liabilities being
     hereinafter referred to as "Taxes").  If any Credit Party shall be required
                                 -----
     by law to deduct any Taxes from or in respect of any sum payable under this
     Credit Agreement or any other Credit Document to any Bank or the
     Administrative Agent, (i) the sum payable shall be increased as necessary

                                       47
<PAGE>

     so that after making all required deductions (including deductions
     applicable to additional sums payable under this Section 3.11) such Bank or
     the Administrative Agent receives an amount equal to the sum it would have
     received had no such deductions been made, (ii) such Credit Party shall
     make such deductions, (iii) such Credit Party shall pay the full amount
     deducted to the relevant taxation authority or other authority in
     accordance with applicable law, and (iv) such Credit Party shall furnish to
     the Administrative Agent, at its address referred to in Section 11.1, the
     original or a certified copy of a receipt evidencing payment thereof.

          (b)  In addition, the Borrower agrees to pay any and all present or
     future stamp or documentary taxes and any other excise or property taxes or
     charges or similar levies which arise from any payment made under this
     Credit Agreement or any other Credit Document or from the execution or
     delivery of, or otherwise similarly with respect to, this Credit Agreement
     or any other Credit Document (hereinafter referred to as "Other Taxes").
                                                               -----------

          (c)  The Borrower agrees to indemnify each Bank and the Administrative
     Agent for the full amount of Taxes and Other Taxes (including, without
     limitation, any Taxes or Other Taxes imposed or asserted by any
     jurisdiction on amounts payable under this Section 3.11) paid by such Bank
     or the Administrative Agent (as the case may be) and any liability
     (including penalties, interest, and expenses) arising therefrom or with
     respect thereto, except with respect to any Bank or the Administrative
     Agent for such liability arising from such Bank's or the Administrative
     Agent's (as the case may be) gross negligence or willful misconduct.

          (d)  Each Bank that is not a United States person under Section
     7701(a)(30) of the Code, on or prior to the date of its execution and
     delivery of this Credit Agreement in the case of each Bank listed on the
     signature pages hereof and on or prior to the date on which it becomes a
     Bank in the case of each other Bank, and from time to time thereafter if
     requested in writing by the Borrower or the Administrative Agent (but only
     so long as such Bank remains lawfully able to do so), shall provide the
     Borrower and the Administrative Agent with (i) Internal Revenue Service
     Form W-8 BEN or W-8 ECI, as appropriate, or any successor form prescribed
     by the Internal Revenue Service, certifying that such Bank is entitled to
     benefits under an income tax treaty to which the United States is a party
     which reduces to zero the rate of withholding tax on payments of interest
     or certifying that the income receivable pursuant to this Credit Agreement
     is effectively connected with the conduct of a trade or business in the
     United States, (ii) Internal Revenue Service Form W-8 or W-9, as
     appropriate, or any successor form prescribed by the Internal Revenue
     Service, (iii) any other form or certificate required by any taxing
     authority (including any certificate required by Sections 871(h) and 881(c)
     of the Internal Revenue Code), certifying that such Bank is entitled to an
     exemption from tax on payments pursuant to this Credit Agreement or any of
     the other Credit Documents and/or (iv) any other forms or documents
     relating to the status of such Bank and reasonably requested in writing by
     the Borrower.

          (e)  For any period with respect to which a Bank has failed to provide
     the Borrower and the Administrative Agent with the appropriate form
     pursuant to Section 3.11(d) (unless such failure is due to a change in
     treaty, law, or regulation

                                       48
<PAGE>

     occurring subsequent to the date on which a form originally was required to
     be provided), then, notwithstanding any other provision of this Section
     3.11, such Bank shall not be entitled to indemnification under Section
     3.11(a), 3.11(b) or 3.11(c) with respect to Taxes imposed by the United
     States; provided, however, that should a Bank, which is otherwise exempt
             --------  -------
     from withholding tax, become subject to Taxes because of its failure to
     deliver a form required hereunder, the Borrower shall take such steps as
     such Bank shall reasonably request to assist such Bank to recover such
     Taxes.

          (f)  If any Credit Party is required to pay additional amounts to or
     for the account of any Bank pursuant to this Section 3.11, then such Bank
     will agree to file any certificates or documents reasonably requested in
     writing by a Credit Party or to use reasonable efforts to change the
     jurisdiction of its Applicable Lending Office so as to eliminate or reduce
     to the greatest extent possible any such additional payment which may
     thereafter accrue if such change, in the good faith judgment of such Bank,
     is not otherwise disadvantageous to such Bank.

          (g)  If the Administrative Agent or any Bank requests indemnification
     or compensation for Taxes or Other Taxes pursuant to this Section 3.11 more
     than 180 days after the earlier of (i) the date on which the Administrative
     Agent or such Bank, as the case may be, makes payment of such Taxes or
     Other Taxes, and (ii) the date on which the appropriate Governmental
     Authority makes written demand on the Administrative Agent or such Bank, as
     the case may be, for payment of such Taxes or Other Taxes, then the
     Borrower shall not be obligated to indemnify or reimburse the Bank for such
     Taxes or Other Taxes.

          (h)  If the Administrative Agent or any Bank determines that it has
     received a refund, credit or reduction in respect of any Taxes of Other
     Taxes for which the Administrative Agent or such Bank, as the case may be,
     has received payment from the Borrower or for which any Credit Party has
     made payments pursuant to this Section 3.11, then the Administrative Agent
     or such Bank, as the case may be, shall, within 60 days after receipt of
     such refund, credit or reduction pay to the Borrower the amount of such
     refund, credit or reduction (net of any reasonable out-of-pocket expenses
     of the Administrative Agent or such Bank, as the case may be, and without
     interest (other than any interest paid by the relevant Governmental
     Authority with respect to such refund, credit or reduction)), provided,
                                                                   --------
     however, that (i) the Administrative Agent or such Bank, as the case may
     -------
     be, acting in good faith will be the sole judge of the amount of any such
     refund, credit or reduction and of the date on which such refund, credit or
     reduction is received, (ii) the Administrative Agent or such Bank, as the
     case may be, acting in good faith shall have the absolute discretion as to
     the order and manner in which it employs or claims tax refunds, credits,
     reductions and allowances available to it, (iii) the Borrower agrees to pay
     to the Administrative Agent or such Bank, as the case may be, upon written
     request from the Administrative Agent or such Bank, the amount of such
     refund, credit or reduction received by the Borrower, in the event, and to
     the extent, the Administrative Agent or such Bank is required to repay such
     refund, credit or reduction to any relevant Governmental Authority, and
     (iv) neither the Administrative Agent nor any Bank shall be

                                       49
<PAGE>

     required to make available to any Credit Party (or any representative of
     any Credit Party) its tax returns or any other information relating to its
     taxes and the computation thereof.

          (i)  Without prejudice to the survival of any other agreement of the
     Credit Parties hereunder, the agreements and obligations of the Credit
     Parties contained in this Section 3.11 shall survive the repayment of the
     Loans, LOC Obligations and other obligations under the Credit Documents and
     the termination of the Commitments hereunder.

     3.12 Compensation.
          ------------

          Upon demand of any Bank (with a copy to the Administrative Agent) from
time to time, the Borrower shall promptly compensate such Bank for and hold such
Bank harmless from any loss, cost or expense incurred by it as a result of:

     (a)  any Continuation, Conversion, payment or prepayment of any Loan other
     than a Base Rate Loan on a day other than the last day of the Interest
     Period for such Loan (whether voluntary, mandatory, automatic, by reason of
     acceleration, or otherwise); or

     (b)  any failure by the Borrower (for a reason other than the failure of
     such Bank to make a Loan) to prepay, borrow, continue or convert any Loan
     other than a Base Rate Loan on the date or in the amount notified by the
     Borrower;

including any loss of anticipated profits and any loss or expense arising from
the liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were obtained.
The Borrower shall also pay any customary administrative fees charged by such
Bank in connection with the foregoing. For purposes of calculating amounts
payable by the Borrower to the Banks under this Section 3.12, each Bank shall be
deemed to have funded each Eurodollar Loan made by it at the Eurodollar Rate for
such Loan by a matching deposit or other borrowing in the applicable offshore
Dollar interbank market for a comparable amount and for a comparable period,
whether or not such Eurodollar Loan was in fact so funded. The covenants of the
Borrower set forth in this Section 3.12 shall survive the repayment of the
Loans, LOC Obligations and other obligations under the Credit Documents and the
termination of the Commitments hereunder.

     3.13 Pro Rata Treatment.
          ------------------

     Except to the extent otherwise provided herein:

          (a)  Loans. Each Loan, each payment or (subject to the terms of
               -----
     Section 3.3) prepayment of principal of any Loan or reimbursement
     obligations arising from drawings under Letters of Credit, each payment of
     interest on the Loans or reimbursement obligations arising from drawings
     under Letters of Credit, each payment of Facility Fees, each payment of the
     Standby Letter of Credit Fee, each payment of the Trade Letter of Credit
     Fee, each reduction of the Revolving Committed Amount and each conversion
     or extension of any Loan, shall be allocated pro rata among the Banks in
     accordance with the respective

                                       50
<PAGE>

     principal amounts of their outstanding Loans of the applicable type and
     Participation Interests in Loans of the applicable type and Letters of
     Credit.

          (b)  Advances. No Bank shall be responsible for the failure or delay
               --------
     by any other Bank in its obligation to make its ratable share of a
     borrowing hereunder; provided, however, that the failure of any Bank to
                          --------  -------
     fulfill its obligations hereunder shall not relieve any other Bank of its
     obligations hereunder. Unless the Borrower or any Bank has notified the
     Administrative Agent prior to the date any payment is required to be made
     by it to the Administrative Agent hereunder, that the Borrower or such
     Bank, as the case may be, will not make such payment, the Administrative
     Agent may assume that the Borrower or such Bank, as the case may be, has
     timely made such payment and may (but shall not be so required to), in
     reliance thereon, make available a corresponding amount to the Person
     entitled thereto. If and to the extent that such payment was not in fact
     made to the Administrative Agent in immediately available funds, then:

               (i)  if the Borrower failed to make such payment, each Bank shall
          forthwith on demand repay to the Administrative Agent the portion of
          such assumed payment that was made available to such Bank in
          immediately available funds, together with interest thereon in respect
          of each day from and including the date such amount was made available
          by the Administrative Agent to such Bank to the date such amount is
          repaid to the Administrative Agent in immediately available funds, at
          the Federal Funds Rate from time to time in effect; and

               (ii) if any Bank failed to make such payment, such Bank shall
          forthwith on demand pay to the Administrative Agent the amount thereof
          in immediately available funds, together with interest thereon for the
          period from the date such amount was made available by the
          Administrative Agent to the Borrower to the date such amount is
          recovered by the Administrative Agent (the "Compensation Period") at a
                                                      -------------------
          rate per annum equal to the Federal Funds Rate from time to time in
          effect. If such Bank pays such amount to the Administrative Agent,
          then such amount shall constitute such Bank's Committed Loan or Bid
          Loan, as the case may be, included in the applicable Borrowing.  If
          such Bank does not pay such amount forthwith upon the Administrative
          Agent's demand therefor, the Administrative Agent may make a demand
          therefor upon the Borrower, and the Borrower shall pay such amount to
          the Administrative Agent, together with interest thereon for the
          Compensation Period at a rate per annum equal to the rate of interest
          applicable to the applicable Borrowing.  Nothing herein shall be
          deemed to relieve any Bank from its obligation to fulfill its
          Commitment or to prejudice any rights which the Administrative Agent
          or the Borrower may have against any Bank as a result of any default
          by such Bank hereunder.

     A notice of the Administrative Agent to any Bank with respect to any amount
     owing under this subsection (b) shall be conclusive, absent manifest error.

                                       51
<PAGE>

     3.14 Sharing of Payments.
          -------------------

     The Banks agree among themselves that, in the event that any Bank shall
obtain payment in respect of any Loan, LOC Obligations or any other obligation
owing to such Bank under this Credit Agreement through the exercise of a right
of setoff, banker's lien or counterclaim, or pursuant to a secured claim under
Section 506 of Title 11 of the United States Code or other security or interest
arising from, or in lieu of, such secured claim, received by such Bank under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any
other means, in excess of its pro rata share of such payment as provided for in
this Credit Agreement, such Bank shall promptly purchase from the other Banks a
Participation Interest in such Loans, LOC Obligations and other obligations in
such amounts, and make such other adjustments from time to time, as shall be
equitable to the end that all Banks share such payment in accordance with their
respective ratable shares as provided for in this Credit Agreement. The Banks
further agree among themselves that if payment to a Bank obtained by such Bank
through the exercise of a right of setoff, banker's lien, counterclaim or other
event as aforesaid shall be rescinded or must otherwise be restored, each Bank
which shall have shared the benefit of such payment shall, by repurchase of a
Participation Interest theretofore sold, return its share of that benefit
(together with its share of any accrued interest payable with respect thereto)
to each Bank whose payment shall have been rescinded or otherwise restored. The
Borrower agrees that any Bank so purchasing such a Participation Interest may,
to the fullest extent permitted by law, exercise all rights of payment,
including setoff, banker's lien or counterclaim, with respect to such
Participation Interest as fully as if such Bank were a holder of such Loan, LOC
Obligations or other obligation in the amount of such Participation Interest.
Except as otherwise expressly provided in this Credit Agreement, if any Bank
shall fail to remit to the Administrative Agent or any other Bank an amount
payable by such Bank to the Administrative Agent or such other Bank pursuant to
this Credit Agreement on the date when such amount is due, such payments shall
be made together with interest thereon for each date from the date such amount
is due until the date such amount is paid to the Administrative Agent or such
other Bank at a rate per annum equal to the Federal Funds Rate. If under any
applicable bankruptcy, insolvency or other similar law, any Bank receives a
secured claim in lieu of a setoff to which this Section 3.14 applies, such Bank
shall, to the extent practicable, exercise its rights in respect of such secured
claim in a manner consistent with the rights of the Banks under this Section
3.14 to share in the benefits of any recovery on such secured claim.

     3.15 Payments, Computations, Etc.
          ---------------------------

          (a)  Generally. Except as otherwise specifically provided herein, all
               ---------
     payments hereunder shall be made to the Administrative Agent in Dollars in
     immediately available funds, without counterclaim, defense, recoupment,
     setoff or withholding of any kind, at the Administrative Agent's office
     specified in Schedule 2.1(a) not later than 2:00 P.M. (Charlotte, North
                  ---------------
     Carolina time) on the date when due. Payments received after such time
     shall be deemed to have been received on the next succeeding Business Day.
     The Administrative Agent may (but shall not be obligated to) debit the
     amount of any such payment which is not made by such time to any ordinary
     deposit account of the Borrower or any other Credit Party maintained with
     the Administrative Agent (with notice to the Borrower or such other Credit
     Party). The Borrower shall, at the time it makes any payment under this
     Credit Agreement, specify to the Administrative Agent the Loans, LOC

                                       52
<PAGE>

     Obligations, Fees, interest or other amounts payable by the Borrower
     hereunder to which such payment is to be applied (and in the event that it
     fails so to specify, or if such application would be inconsistent with the
     terms hereof, the Administrative Agent shall distribute such payment to the
     Banks in such manner as the Administrative Agent may determine to be
     appropriate in respect of obligations owing by the Borrower hereunder,
     subject to the terms of Section 3.13(a)). The Administrative Agent will
     distribute such payments to such Banks, if any such payment is received
     prior to 2:00 P.M. (Charlotte, North Carolina time) on a Business Day in
     like funds as received prior to the end of such Business Day and otherwise
     the Administrative Agent will distribute such payment to such Banks on the
     next succeeding Business Day. Whenever any payment hereunder shall be
     stated to be due on a day which is not a Business Day, the due date thereof
     shall be extended to the next succeeding Business Day (subject to accrual
     of interest and Fees for the period of such extension), except that in the
     case of Eurodollar Loans, if the extension would cause the payment to be
     made in the next following calendar month, then such payment shall instead
     be made on the next preceding Business Day. Except as expressly provided
     otherwise herein, all computations of interest and fees shall be made on
     the basis of actual number of days elapsed over a year of 360 days, except
     with respect to computation of interest on Base Rate Loans which shall be
     calculated based on a year of 365 or 366 days, as appropriate. Interest
     shall accrue from and include the date of borrowing, but exclude the date
     of payment.

          (b)  Allocation of Payments After Acceleration. Notwithstanding any
               -----------------------------------------
     other provisions of this Credit Agreement to the contrary, after the
     occurrence and during the continuance of an Event of Default, all amounts
     collected or received by the Administrative Agent or any Bank on account of
     the Credit Party Obligations or any other amounts outstanding under any of
     the Credit Documents or in respect of the Collateral shall be paid over or
     delivered as follows:

               FIRST, to the payment of all reasonable out-of-pocket costs and
          expenses (including without limitation reasonable attorneys' fees) of
          the Administrative Agent and the Collateral Agent in connection with
          enforcing the rights of the Banks under the Credit Documents and any
          protective advances made by the Administrative Agent or the Collateral
          Agent with respect to the Collateral under or pursuant to the terms of
          the Collateral Documents;

               SECOND, to payment of any fees owed to the Administrative Agent
          and the Collateral Agent;

               THIRD, to the payment of all of the Credit Party Obligations
          consisting of accrued fees and interest;

               FOURTH, to the payment of the outstanding principal amount of the
          Credit Party Obligations (including the payment or cash
          collateralization of the outstanding LOC Obligations);

                                       53
<PAGE>

               FIFTH, to the payment of all reasonable out-of-pocket costs and
          expenses (including without limitation, reasonable attorneys' fees) of
          each of the Banks in connection with enforcing its rights under the
          Credit Documents or otherwise with respect to the Credit Party
          Obligations owing to such Bank;

               SIXTH, to all other Credit Party Obligations and other
          obligations which shall have become due and payable under the Credit
          Documents or otherwise and not repaid pursuant to clauses "FIRST"
          through "FIFTH" above; and

               SEVENTH, to the payment of the surplus, if any, to whomever may
          be lawfully entitled to receive such surplus.

     In carrying out the foregoing, (i) amounts received shall be applied in the
     numerical order provided until exhausted prior to application to the next
     succeeding category; (ii) each of the Banks shall receive an amount equal
     to its pro rata share (based on the proportion that the then outstanding
     Loans and LOC Obligations held by such Bank bears to the aggregate then
     outstanding Loans and LOC Obligations) of amounts available to be applied
     pursuant to clauses "THIRD", "FOURTH", "FIFTH" and "SIXTH" above; and (iii)
     to the extent that any amounts available for distribution pursuant to
     clause "FIFTH" above are attributable to the issued but undrawn amount of
     outstanding Letters of Credit, such amounts shall be held by the
     Administrative Agent in a cash collateral account and applied (A) first, to
     reimburse the Issuing Lender from time to time for any drawings under such
     Letters of Credit and (B) then, following the expiration of all Letters of
     Credit, to all other obligations of the types described in clauses "FIFTH"
     and "SIXTH" above in the manner provided in this Section 3.15(b).

     3.16 Evidence of Debt.
          ----------------

          (a)  Each Bank shall maintain an account or accounts evidencing each
     Loan made by such Bank to the Borrower from time to time, including the
     amounts of principal and interest payable and paid to such Bank from time
     to time under this Credit Agreement. Each Bank will make reasonable efforts
     to maintain the accuracy of its account or accounts and to promptly update
     its account or accounts from time to time, as necessary.

          (b)  The Administrative Agent shall maintain the Register pursuant to
     Section 11.3(c), and a subaccount for each Bank, in which Register and
     subaccounts (taken together) shall be recorded (i) the amount, type and
     Interest Period of each such Loan hereunder, (ii) the amount of any
     principal or interest due and payable or to become due and payable to each
     Bank hereunder and (iii) the amount of any sum received by the
     Administrative Agent hereunder from or for the account of any Credit Party
     and each Bank's share thereof. The Administrative Agent will make
     reasonable efforts to maintain the accuracy of the subaccounts referred to
     in the preceding sentence and to promptly update such subaccounts from time
     to time, as necessary.

          (c)  The entries made in the accounts, Register and subaccounts
     maintained pursuant to clause (b) of this Section 3.16 (and, if consistent
     with the entries of the

                                       54
<PAGE>

     Administrative Agent, clause (a)) shall be prima facie evidence of the
     existence and amounts of the obligations of the Credit Parties therein
     recorded; provided, however, that the failure of any Bank or the
               --------  -------
     Administrative Agent to maintain any such account, such Register or such
     subaccount, as applicable, or any error therein, shall not in any manner
     affect the obligation of the Credit Parties to repay the Credit Party
     Obligations owing to such Bank.

                                   SECTION 4

                                    GUARANTY
                                    --------

     4.1  The Guaranty.
          ------------

     Each of the Guarantors hereby jointly and severally guarantees to each
Bank, each Affiliate of a Bank that enters into a Hedging Agreement, and the
Administrative Agent as hereinafter provided, as primary obligor and not as
surety, the prompt payment of the Credit Party Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof. The Guarantors hereby further agree that if any of the Credit
Party Obligations are not paid in full when due (whether at stated maturity, as
a mandatory prepayment, by acceleration, as a mandatory cash collateralization
or otherwise), the Guarantors will, jointly and severally, promptly pay the
same, without any demand or notice whatsoever, and that in the case of any
extension of time of payment or renewal of any of the Credit Party Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension
or renewal.

     Notwithstanding any provision to the contrary contained herein or in any
other of the Credit Documents or Hedging Agreements, the obligations of each
Guarantor under this Credit Agreement and the other Credit Documents shall be
limited to an aggregate amount equal to the largest amount that would not render
such obligations subject to avoidance under Section 548 of the Bankruptcy Code
or any comparable provisions of any applicable state law.

     4.2  Obligations Unconditional.
          -------------------------

     The obligations of the Guarantors under Section 4.1 are joint and several,
absolute and unconditional, irrespective of the value, genuineness, validity,
regularity or enforceability of any of the Credit Documents or Hedging
Agreements, or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or
security for any of the Credit Party Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor, it being the intent of this Section 4.2 that the
obligations of the Guarantors hereunder shall be absolute and unconditional
under any and all circumstances. Each Guarantor agrees that such Guarantor shall
have no right of subrogation, indemnity, reimbursement or contribution against
the Borrower or any other Guarantor for amounts paid under this Section 4 until
such time as the Credit Party Obligations have been Fully Satisfied. Without
limiting the generality of the foregoing, it is agreed that, to the fullest
extent permitted by

                                       55
<PAGE>

law, the occurrence of any one or more of the following shall not alter or
impair the liability of any Guarantor hereunder which shall remain absolute and
unconditional as described above:

          (a)  at any time or from time to time, without notice to any
     Guarantor, the time for any performance of or compliance with any of the
     Credit Party Obligations shall be extended, or such performance or
     compliance shall be waived;

          (b)  any of the acts mentioned in any of the provisions of any of the
     Credit Documents, any Hedging Agreement between any Consolidated Party and
     any Bank, or any Affiliate of a Bank, or any other agreement or instrument
     referred to in the Credit Documents or such Hedging Agreements shall be
     done or omitted;

          (c)  the maturity of any of the Credit Party Obligations shall be
     accelerated, or any of the Credit Party Obligations shall be modified,
     supplemented or amended in any respect, or any right under any of the
     Credit Documents, any Hedging Agreement between any Consolidated Party and
     any Bank, or any Affiliate of a Bank, or any other agreement or instrument
     referred to in the Credit Documents or such Hedging Agreements shall be
     waived or any other guarantee of any of the Credit Party Obligations or any
     security therefor shall be released, impaired or exchanged in whole or in
     part or otherwise dealt with;

          (d)  any Lien granted to, or in favor of, the Collateral Agent or any
     Bank or Banks as security for any of the Credit Party Obligations shall
     fail to attach or be perfected; or

          (e)  any of the Credit Party Obligations shall be determined to be
     void or voidable (including, without limitation, for the benefit of any
     creditor of any Guarantor) or shall be subordinated to the claims of any
     Person (including, without limitation, any creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly
waives diligence, presentment, demand of payment, protest, notice of acceptance
of this guarantee and all other notices whatsoever, and any requirement that the
Administrative Agent or any Bank exhaust any right, power or remedy or proceed
against any Person under any of the Credit Documents, any Hedging Agreement
between any Consolidated Party and any Bank, or any Affiliate of a Bank, or any
other agreement or instrument referred to in the Credit Documents or such
Hedging Agreements, or against any other Person under any other guarantee of, or
security for, any of the Credit Party Obligations.

     4.3  Reinstatement.
          -------------

     The obligations of the Guarantors under this Section 4 shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Credit Party Obligations is
rescinded or must be otherwise restored by any holder of any of the Credit Party
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify
the Administrative Agent and each Bank on demand for all reasonable costs and
expenses (including, without limitation, fees and

                                       56
<PAGE>

expenses of counsel) incurred by the Administrative Agent or such Bank in
connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any
bankruptcy, insolvency or similar law.

     4.4  Certain Additional Waivers.
          --------------------------

     Each Guarantor agrees that such Guarantor shall have no right of recourse
to security for the Credit Party Obligations, except through the exercise of
rights of subrogation pursuant to Section 4.2 and through the exercise of rights
of contribution pursuant to Section 4.6.

     4.5  Remedies.
          --------

     The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the
Banks, on the other hand, the Credit Party Obligations may be declared to be
forthwith due and payable as provided in Section 9.2 (and shall be deemed to
have become automatically due and payable in the circumstances provided in said
Section 9.2) for purposes of Section 4.1 notwithstanding any stay, injunction or
other prohibition preventing such declaration (or preventing the Credit Party
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Credit Party
Obligations being deemed to have become automatically due and payable), the
Credit Party Obligations (whether or not due and payable by any other Person)
shall forthwith become due and payable by the Guarantors for purposes of Section
4.1. The Guarantors acknowledge and agree that their obligations hereunder are
secured in accordance with the terms of the Collateral Documents and that the
Banks may exercise their remedies thereunder in accordance with the terms
thereof.

     4.6  Rights of Contribution.
          ----------------------

     The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a
right of contribution from each other Guarantor in an amount equal to such other
Guarantor's Contribution Share (as defined below) of such Excess Payment. The
payment obligations of any Guarantor under this Section 4.6 shall be subordinate
and subject in right of payment to the Credit Party Obligations until such time
as the Credit Party Obligations have been Fully Satisfied, and none of the
Guarantors shall exercise any right or remedy under this Section 4.6 against any
other Guarantor until such Credit Party Obligations have been Fully Satisfied.
For purposes of this Section 4.6, (a) "Excess Payment" shall mean the amount
                                       --------------
paid by any Guarantor in excess of its Pro Rata Share of any Guaranteed
Obligations; (b) "Pro Rata Share" shall mean, for any Guarantor in respect of
                  --------------
any payment of Credit Party Obligations, the ratio (expressed as a percentage)
as of the date of such payment of Guaranteed Obligations of (i) the amount by
which the aggregate present fair salable value of all of its assets and
properties exceeds the amount of all debts and liabilities of such Guarantor
(including contingent, subordinated, unmatured, and unliquidated liabilities,
but excluding the obligations of such Guarantor hereunder) to (ii) the amount by
which the aggregate present fair salable value of all assets and other
properties of all of the Credit Parties exceeds the amount of all of the debts
and liabilities (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding

                                       57
<PAGE>

the obligations of the Credit Parties hereunder) of the Credit Parties;
provided, however, that, for purposes of calculating the Pro Rata Shares of the
--------  -------
Guarantors in respect of any payment of Credit Party Obligations, any Guarantor
that became a Guarantor subsequent to the date of any such payment shall be
deemed to have been a Guarantor on the date of such payment and the financial
information for such Guarantor as of the date such Guarantor became a Guarantor
shall be utilized for such Guarantor in connection with such payment; and (c)
"Contribution Share" shall mean, for any Guarantor in respect of any Excess
 ------------------
Payment made by any other Guarantor, the ratio (expressed as a percentage) as of
the date of such Excess Payment of (i) the amount by which the aggregate present
fair salable value of all of its assets and properties exceeds the amount of all
debts and liabilities of such Guarantor (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of such
Guarantor hereunder) to (ii) the amount by which the aggregate present fair
salable value of all assets and other properties of the Credit Parties other
than the maker of such Excess Payment exceeds the amount of all of the debts and
liabilities (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of the Credit Parties) of the Credit
Parties other than the maker of such Excess Payment; provided, however, that,
                                                     --------  -------
for purposes of calculating the Contribution Shares of the Guarantors in respect
of any Excess Payment, any Guarantor that became a Guarantor subsequent to the
date of any such Excess Payment shall be deemed to have been a Guarantor on the
date of such Excess Payment and the financial information for such Guarantor as
of the date such Guarantor became a Guarantor shall be utilized for such
Guarantor in connection with such Excess Payment. This Section 4.6 shall not be
deemed to affect any right of subrogation, indemnity, reimbursement or
contribution that any Guarantor may have under applicable law against the
Borrower in respect of any payment of Guaranteed Obligations. Notwithstanding
the foregoing, all rights of contribution against any Guarantor shall terminate
from and after such time, if ever, that such Guarantor shall be relieved of its
obligations pursuant to Section 8.5.

     4.7  Guarantee of Payment; Continuing Guarantee.
          ------------------------------------------

     The guarantee in this Section 4 is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Credit Party
Obligations whenever arising.

                                   SECTION 5

                                   CONDITIONS
                                   ----------

     5.1  Closing Conditions.
          ------------------

     The obligation of the Banks to enter into this Amendment shall be subject
to satisfaction of the following conditions on or before the Amendment Closing
Date:

          (a)  Executed Credit Documents. Receipt by the Administrative Agent of
               -------------------------
     duly executed copies of: (i) this Amendment, (ii) the Notes and (iii) the
     Collateral Documents (each in form and substance satisfactory to the
     Administrative Agent and its legal counsel).

                                       58
<PAGE>

          (b)  Corporate Documents.  Receipt by the Administrative Agent of the
               -------------------
     following (each in form and substance satisfactory to the Administrative
     Agent and its counsel):

               (i)    Charter Documents. Copies of the articles or certificates
                      -----------------
          of incorporation or other charter documents of each Credit Party
          certified to be true and complete as of a recent date by the
          appropriate Governmental Authority of the state or other jurisdiction
          of its incorporation and certified by a secretary or assistant
          secretary of such Credit Party to be true and correct as of the
          Amendment Closing Date.

               (ii)   Bylaws. A copy of the bylaws of each Credit Party
                      ------
          certified by a secretary or assistant secretary of such Credit Party
          to be true and correct as of the Amendment Closing Date.

               (iii)  Resolutions. Copies of resolutions of the Board of
                      -----------
          Directors of each Credit Party approving and adopting the Credit
          Documents to which it is a party, the transactions contemplated
          therein and authorizing execution and delivery thereof, certified by a
          secretary or assistant secretary of such Credit Party to be true and
          correct and in force and effect as of the Amendment Closing Date.

               (iv)   Good Standing. Copies of certificates of good standing,
                      -------------
          existence or its equivalent with respect to each Credit Party
          certified as of a recent date by the appropriate Governmental
          Authorities of the state or other jurisdiction of incorporation and
          each other jurisdiction in which the failure to so qualify and be in
          good standing could reasonably be expected to have a Material Adverse
          Effect.

               (v)    Incumbency. An incumbency certificate of each Credit Party
                      ----------
          certified by a secretary or assistant secretary to be true and correct
          as of the Amendment Closing Date.

          (c)  Opinions of Counsel. The Administrative Agent shall have
               -------------------
     received, in each case dated as of the Amendment Closing Date and in form
     and substance reasonably satisfactory to the Administrative Agent and its
     legal counsel:

               (i)    legal opinions of Hunton & Williams and of the Borrower's
          internal counsel; and

               (ii)   a legal opinion of special local counsel for the Credit
          Parties for each State in which any Mortgaged Property is located; and

               (iii)  a legal opinion of special local counsel with respect to
          the Aircraft Mortgage.

          (d)  Personal Property Collateral. The Collateral Agent shall have
               ----------------------------
     received, in form and substance reasonably satisfactory to the Collateral
     Agent and its legal counsel:

                                       59
<PAGE>

               (i)    (A) searches of Uniform Commercial Code filings in the
          jurisdiction of the chief executive office of each Credit Party and
          each jurisdiction where any Collateral is located or where a filing
          would need to be made in order to perfect the Collateral Agent's
          security interest in the Collateral, copies of the financing
          statements on file in such jurisdictions and evidence that no Liens
          exist other than Permitted Liens and (B) searches of the records of
          the Federal Aviation Administration as to ownership of, and evidence
          that no Liens exist with respect to, the Aircraft;

               (ii)   duly executed UCC financing statements for each
          appropriate jurisdiction as is necessary, in the Collateral Agent's
          (and its counsel's) sole discretion, to perfect the Collateral Agent's
          security interest in the Collateral;

               (iii)  searches of ownership of, and Liens on, intellectual
          property of each Credit Party in the appropriate governmental offices;

               (iv)   all certificates evidencing any certificated Capital Stock
          with respect to Domestic Subsidiaries pledged to the Collateral Agent
          pursuant to the Pledge Agreement, together with duly executed in
          blank, undated stock powers attached thereto;

               (v)    duly executed notices of grant of security interest in the
          form required by the Security Agreement as are necessary, in the
          Collateral Agent's (and its legal counsel's) sole discretion, to
          perfect the Collateral Agent's security interest in the Collateral;

               (vi)   all promissory notes evidencing debt of Foreign
          Subsidiaries to any Credit Party in the possession of any of the
          Credit Parties, together with allonges or assignments as may be
          necessary or appropriate to perfect the Collateral Agent's security
          interest in such Collateral;

               (vii)  duly executed consents as are necessary, in the Collateral
          Agent's sole discretion, to perfect the Collateral Agent's security
          interest in the Collateral; and

               (viii) in the case of any personal property Collateral located
          at a premises leased by a Credit Party, such estoppel letters,
          consents and waivers from the landlords on such real property as may
          be required by the Collateral Agent.

          (e)  Real Property Collateral. The Collateral Agent shall have
               ------------------------
     received, in form and substance reasonably satisfactory to the Collateral
     Agent and its legal counsel:

               (i)    fully executed and notarized mortgages, deeds of trust or
          deeds to secure debt (each, as the same may be amended, modified,
          restated or

                                       60
<PAGE>

          supplemented from time to time, a "Mortgage Instrument" and
                                             -------------------
          collectively the "Mortgage Instruments") encumbering the fee interest
                            --------------------
          of any Credit Party in each of the Real Properties set forth on
          Schedule 5.1(e) (each a "Mortgaged Property" and collectively the
          ---------------          ------------------
          "Mortgaged Properties");
           --------------------

               (ii)   copies of any existing maps or plats of a survey of the
          sites of the Mortgaged Properties;

               (iii)  ALTA mortgagee title insurance policies issued by Lawyer's
          Title Insurance Corporation (the "Mortgage Policies"), in amounts not
                                            -----------------
          less than the respective amounts designated in Schedule 5.1(e) with
                                                         ---------------
          respect to any particular Mortgaged Property, assuring the Collateral
          Agent that each of the Mortgage Instruments creates a valid and
          enforceable first priority mortgage lien on the applicable Mortgaged
          Property, free and clear of all defects and encumbrances except
          Permitted Liens, which Mortgage Policies shall otherwise be in form
          and substance reasonably satisfactory to the Collateral Agent and
          shall include such endorsements as are reasonably requested by the
          Collateral Agent; and

               (iv)   evidence as to (A) whether any Mortgaged Property is in an
          area designated by the Federal Emergency Management Agency as having
          special flood or mud slide hazards (a "Flood Hazard Property") and (B)
                                                 ---------------------
          if any Mortgaged Property is a Flood Hazard Property, (1) whether the
          community in which such Mortgaged Property is located is participating
          in the National Flood Insurance Program, (2) the applicable Credit
          Party's written acknowledgment of receipt of written notification from
          the Administrative Agent (a) as to the fact that such Mortgaged
          Property is a Flood Hazard Property and (b) as to whether the
          community in which each such Flood Hazard Property is located is
          participating in the National Flood Insurance Program and (3) copies
          of insurance policies or certificates of insurance of the Consolidated
          Parties evidencing flood insurance satisfactory to the Collateral
          Agent and naming the Collateral Agent as sole loss payee on behalf of
          the Banks.

          (f)  Priority of Liens. The Collateral Agent shall have received
               -----------------
     satisfactory evidence that (i) the Collateral Agent, on behalf of the
     Banks, holds a perfected, first priority Lien on all Collateral and (ii)
     the Collateral Agent, on behalf of the Noteholders, holds a perfected,
     first priority Lien on all B Collateral.

          (g)  Evidence of Insurance. Receipt by the Collateral Agent of copies
               ---------------------
     of insurance policies or certificates of insurance of the Consolidated
     Parties evidencing liability and casualty insurance meeting the
     requirements set forth in the Credit Documents, including, but not limited
     to, naming the Collateral Agent as additional insured (in the case of
     liability insurance) or loss payee (in the case of hazard insurance) on
     behalf of the Banks.

          (h)  Officer's Certificates. The Administrative Agent shall have
               ----------------------
     received a certificate or certificates executed by an Executive Officer of
     the Borrower as of the Amendment Closing Date, in form and substance
     satisfactory to the Administrative Agent,

                                       61
<PAGE>

     stating that (A) each Credit Party is in compliance with all existing
     financial obligations, (B) all governmental, shareholder and third party
     consents and approvals, if any, with respect to the Credit Documents and
     the transactions contemplated thereby have been obtained, (C) no action,
     suit, investigation or proceeding is pending or threatened in any court or
     before any arbitrator or governmental instrumentality against any Credit
     Party or with respect to any transaction contemplated by the Credit
     Documents, if such action, suit, investigation or proceeding could
     reasonably be expected to have a Material Adverse Effect, and (D)
     immediately after giving effect to this Amendment, the other Credit
     Documents and all transactions contemplated to occur on the Amendment
     Closing Date, (1) no Default or Event of Default exists and (2) all
     representations and warranties contained herein and in the other Credit
     Documents are true and correct in all material respects.

          (i)  Solvency Certificate. The Administrative Agent shall have
               --------------------
     received a certificate executed by an Executive Officer of the Borrower as
     of the Amendment Closing Date, in form and substance satisfactory to the
     Administrative Agent, regarding the Solvency of each of the Credit Parties.

          (j)  Fees and Expenses. Payment by the Credit Parties to the Banks and
               -----------------
     the Administrative Agent of all fees and expenses relating to the Credit
     Facilities which are due and payable on the Amendment Closing Date,
     including, without limitation, payment to the Administrative Agent of the
     fees set forth in the Administrative Agent's Fee Letter.

          (k)  Other. Receipt by the Banks of such other documents, instruments,
               -----
     agreements or information as reasonably requested by any Bank, including,
     but not limited to, information regarding litigation, tax, accounting,
     labor, insurance, pension liabilities (actual or contingent), real estate
     leases, material contracts, debt agreements, property ownership and
     contingent liabilities of the Consolidated Parties.

     5.2  Conditions to all Extensions of Credit.
          --------------------------------------

     The obligations of each Bank to make any Loan and of the Issuing Lender to
issue or extend any Letter of Credit are subject to satisfaction of the
following conditions in addition to satisfaction on the Amendment Closing Date
of the conditions set forth in Section 5.1:

          (a)  The Borrower shall have delivered (i) in the case of any
     Revolving Loan, an appropriate Notice of Borrowing or Notice of
     Extension/Conversion or (ii) in the case of any Letter of Credit, the
     Issuing Lender shall have received an appropriate request for issuance in
     accordance with the provisions of Section 2.2(b);

          (b)  The representations and warranties set forth in Section 6 shall,
     subject to the limitations set forth therein, be true and correct in all
     material respects as of such date (except for those which expressly relate
     to an earlier date);

          (c)  No Default or Event of Default shall exist and be continuing
     either prior to or after giving effect thereto; and

                                       62
<PAGE>

           (d) Immediately after giving effect to the making of such Loan (and
     the application of the proceeds thereof) or to the issuance of such Letter
     of Credit, as the case may be, (i) the sum of the aggregate outstanding
     principal amount of Revolving Loans plus LOC Obligations shall not exceed
                                         ----
     the Revolving Committed Amount, and (ii) the LOC Obligations shall not
     exceed the LOC Committed Amount.

The delivery of each Notice of Borrowing and each request for a Letter of Credit
pursuant to Section 2.2(b) shall constitute a representation and warranty by the
Credit Parties of the correctness of the matters specified in subsections (b),
(c) and (d) above.

                                   SECTION 6

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     The Credit Parties hereby represent to the Administrative Agent and each
     Bank that:

     6.1     Financial Condition.
             -------------------

             (a)   The audited consolidated balance sheets and income statements
     of the Consolidated Parties for the fiscal years ended December 31, 1998
     and December 31, 1999 (including the notes thereto) (i) have been audited
     by PricewaterhouseCoopers LLP, (ii) have been prepared in accordance with
     GAAP consistently applied throughout the periods covered thereby and (iii)
     present fairly (on the basis disclosed in the footnotes to such financial
     statements) the consolidated financial condition, results of operations and
     cash flows of the Consolidated Parties as of such date and for such
     periods. The unaudited consolidated interim balance sheets of the
     Consolidated Parties as at the end of, and the related unaudited
     consolidated interim statements of earnings for, each fiscal quarterly
     period ended after December 31, 1999 (i) have been prepared in accordance
     with GAAP consistently applied throughout the periods covered thereby and
     (ii) present fairly (on the basis disclosed in the footnotes to such
     financial statements) the consolidated financial condition, results of
     operations and cash flows of the Consolidated Parties as of such date and
     for such periods. The unaudited interim statements of income and retained
     earnings of the Consolidated Parties for each calendar month ended after
     December 31, 2000 and prior to the Amendment Closing Date (i) have been
     prepared in accordance with GAAP (except for the omission of footnotes and
     subject to year end audit adjustments) consistently applied throughout the
     periods covered thereby and (ii) present fairly the consolidated financial
     condition and results of operations of the Consolidated Parties as of such
     date and for such periods. During the period from December 31, 1999 to and
     including the Amendment Closing Date, there has been no sale, transfer or
     other disposition by any Consolidated Party of any material part of the
     business or property of the Consolidated Parties, taken as a whole, and no
     purchase or other acquisition by any of them of any business or property
     (including any Capital Stock of any other Person) material in relation to
     the consolidated financial condition of the Consolidated Parties, taken as
     a whole, in each case, which is not reflected in the foregoing financial
     statements or in the notes thereto and has not otherwise been disclosed in
     writing to the Banks on or prior to the Amendment Closing Date. As of

                                       63
<PAGE>

     the Amendment Closing Date, the Borrower and its Subsidiaries have no
     material liabilities (contingent or otherwise) that are not reflected in
     the foregoing financial statements or in the notes thereto.

            (b)  The financial statements delivered pursuant to Section 7.1(a)
     and (b) have been prepared in accordance with GAAP (except as may otherwise
     be permitted under Section 7.1(a) and (b)) and present fairly (on the basis
     disclosed in the footnotes to such financial statements) the consolidated
     and consolidating financial condition, results of operations and cash flows
     (as applicable) of the Consolidated Parties as of such date and for such
     periods.

     6.2     No Material Change.
             ------------------

     Except as disclosed and described in Schedule 6.2 attached hereto, there
                                          ------------
has been no development or event since December 31, 1999 relating to or
affecting the Consolidated Parties, taken as a whole, which has had or could
reasonably be expected to have a Material Adverse Effect.

     6.3     Organization and Good Standing.
             ------------------------------

     Each of the Consolidated Parties (a) is duly organized, validly existing
and is in good standing under the laws of the jurisdiction of its incorporation
or organization, (b) has the corporate or other necessary power and authority,
and the legal right, to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently engaged
and (c) is duly qualified as a foreign entity and in good standing under the
laws of each jurisdiction where its ownership, lease or operation of property or
the conduct of its business requires such qualification, other than in such
jurisdictions where the failure to be so qualified and in good standing would
not reasonably be expected to have a Material Adverse Effect.

     6.4     Power; Authorization; Enforceable Obligations.
             ---------------------------------------------

     Each of the Credit Parties has the corporate or other necessary power and
authority, and the legal right, to make, deliver and perform the Credit
Documents to which it is a party, and in the case of the Borrower, to obtain
extensions of credit hereunder, and has taken all necessary corporate or other
necessary action to authorize the borrowings and other extensions of credit on
the terms and conditions of this Credit Agreement and to authorize the
execution, delivery and performance of the Credit Documents to which it is a
party.  No consent or authorization of, filing with, notice to or other similar
act by or in respect of, any Governmental Authority or any other Person is
required to be obtained or made by or on behalf of any Credit Party in
connection with the borrowings or other extensions of credit hereunder or with
the execution, delivery, performance, validity or enforceability of the Credit
Documents to which such Credit Party is a party except for filings to perfect
the Liens created by the Collateral Documents.  This Credit Agreement has been,
and each other Credit Document to which any Credit Party is a party will be,
duly executed and delivered on behalf of the Credit Parties.  This Credit
Agreement constitutes, and each other Credit Document to which any Credit Party
is a party when executed and delivered will constitute, a legal, valid and
binding obligation of such Credit Party enforceable against such party in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization,

                                       64
<PAGE>

moratorium or similar laws affecting the enforcement of creditors' rights
generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

     6.5     No Conflicts.
             ------------

     Neither the execution and delivery of the Credit Documents, nor the
consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by such Credit Party will (a)
violate or conflict with any provision of its articles or certificate of
incorporation or bylaws or other organizational or governing documents of such
Person, (b) violate, contravene or materially conflict with any Requirement of
Law or any other law, regulation (including, without limitation, Regulation U or
Regulation X), order, writ, judgment, injunction, decree or permit applicable to
it, (c) violate, contravene or conflict with contractual provisions of, or cause
an event of default under (i) the Senior Note Indenture and (ii) any other
indenture, loan agreement, mortgage, deed of trust, contract or other agreement
or instrument to which it is a party or by which it may be bound, the violation
of which could reasonably be expected to have a Material Adverse Effect, or (d)
result in or require the creation of any Lien (other than those contemplated in
or created in connection with the Credit Documents) upon or with respect to its
properties.

     6.6     No Default.
             ----------

     No Consolidated Party is in default in any respect under any contract,
lease, loan agreement, indenture, mortgage, security agreement or other
agreement or obligation to which it is a party or by which any of its properties
is bound which default could reasonably be expected to have a Material Adverse
Effect.  No Default or Event of Default has occurred or exists.

     6.7     Ownership.
             ---------

     Each Consolidated Party is the owner of, and has good and marketable title
to, or a valid leasehold interest in, all of its respective assets and none of
such assets is subject to any Lien other than Permitted Liens.

     6.8     Indebtedness.
             ------------

     Except as otherwise permitted under Section 8.1, the Consolidated Parties
have no Indebtedness.

     6.9     Litigation.
             ----------

     There does not exist any pending or threatened (and reasonably likely to be
commenced) action, suit or legal, equitable, arbitration or administrative
proceeding against any Consolidated Party as to which there is a reasonable
likelihood of an adverse determination and which if adversely determined, could,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

                                       65
<PAGE>

     6.10    Taxes.
             -----

     Each Consolidated Party has filed, or caused to be filed, all tax returns
(Federal, state, local and foreign) required to be filed and paid (a) all
amounts of taxes shown thereon to be due (including interest and penalties) and
(b) all other taxes, fees, assessments and other governmental charges (including
mortgage recording taxes, documentary stamp taxes and intangibles taxes) owing
by it, except for such taxes (i) which are not yet delinquent or (ii) that are
being contested in good faith and by proper proceedings, and for which adequate
reserves are being maintained in accordance with GAAP.  No Credit Party is aware
as of the Amendment Closing Date of any proposed tax assessments against it or
any other Consolidated Party, except with respect to taxes for which adequate
reserves are being maintained in accordance with GAAP.

     6.11    Compliance with Law.
             -------------------

     Each Consolidated Party is in compliance with all Requirements of Law and
all other laws, rules, regulations, orders and decrees (including without
limitation Environmental Laws) applicable to it, or to its properties, unless
such failure to comply could not reasonably be expected to have a Material
Adverse Effect.

     6.12    ERISA.
             -----

     (a) Except for such matters as would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect:

         (i)    During the five-year period prior to the date on which this
     representation is made or deemed made: (A) no ERISA Event has occurred,
     and, to the best knowledge of the Executive Officers of the Credit Parties,
     no event or condition has occurred or exists as a result of which any ERISA
     Event could reasonably be expected to occur, with respect to any Plan; and
     (B) each Plan has been maintained, operated, and funded in compliance with
     its own terms and in material compliance with the provisions of ERISA, the
     Code, and any other applicable Federal or state laws.

         (ii)   The actuarial present value of all "benefit liabilities" (as
     defined in Section 4001(a)(16) of ERISA), whether or not vested, under each
     Single Employer Plan, as of the last annual valuation date prior to the
     date on which this representation is made or deemed made (determined, in
     each case, in accordance with Financial Accounting Standards Board
     Statement 87, utilizing the actuarial assumptions used in such Plan's most
     recent actuarial valuation report), did not exceed as of such valuation
     date the fair market value of the assets of such Plan.

         (iii)  Neither any Consolidated Party nor any ERISA Affiliate has
     incurred, or, to the best knowledge of the Executive Officers of the Credit
     Parties, could be reasonably expected to incur, any withdrawal liability
     under ERISA to any Multiemployer Plan or Multiple

                                       66
<PAGE>

     Employer Plan. Neither any Consolidated Party nor any ERISA Affiliate would
     become subject to any withdrawal liability under ERISA if any Consolidated
     Party or any ERISA Affiliate were to withdraw completely from all
     Multiemployer Plans and Multiple Employer Plans as of the valuation date
     most closely preceding the date on which this representation is made or
     deemed made. Neither any Consolidated Party nor any ERISA Affiliate has
     received any notification that any Multiemployer Plan is in reorganization
     (within the meaning of Section 4241 of ERISA), is insolvent (within the
     meaning of Section 4245 of ERISA), or has been terminated (within the
     meaning of Title IV of ERISA), and no Multiemployer Plan is, to the best
     knowledge of the Executive Officers of the Credit Parties, reasonably
     expected to be in reorganization, insolvent, or terminated.

          (iv)   To the best knowledge of the Executive Officers of the Credit
     Parties, no prohibited transaction (within the meaning of Section 406 of
     ERISA or Section 4975 of the Code) or breach of fiduciary responsibility
     has occurred with respect to a Plan which has subjected or may subject any
     Consolidated Party or any ERISA Affiliate to any liability under Sections
     406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under
     any agreement or other instrument pursuant to which any Consolidated Party
     or any ERISA Affiliate has agreed or is required to indemnify any Person
     against any such liability.

          (v)    Neither any Consolidated Party nor any ERISA Affiliates has any
     material liability which has not been fully disclosed in the financial
     statements delivered to the Banks with respect to "expected post-retirement
     benefit obligations" within the meaning of the Financial Accounting
     Standards Board Statement 106. Each Plan which is a welfare plan (as
     defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA and
     Section 4980B of the Code apply has been administered in compliance in all
     material respects of such sections.

     (b)  Except as disclosed and described in Schedule 6.12 attached hereto:
                                               -------------

          (i)    During the five-year period prior to the date on which this
     representation is made or deemed made: (i) no "accumulated funding
     deficiency," as such term is defined in Section 302 of ERISA and Section
     412 of the Code, whether or not waived, has occurred with respect to any
     Plan; and (ii) no lien in favor of the PBGC or a Plan has arisen or is
     reasonably likely to arise on account of any Plan.

          (ii)   Neither the execution and delivery of this Credit Agreement nor
     the consummation of the financing transactions contemplated hereunder will
     involve any transaction which is subject to the prohibitions of Sections
     404, 406 or 407 of ERISA or in connection with which a tax could be imposed
     pursuant to Section 4975 of the Code. The representation by the Credit
     Parties in the preceding sentence is made in reliance upon and subject to
     the accuracy of the Banks' representation in Section 11.15 with respect to
     their source of funds and is subject, in the event that the source of the
     funds used by the Banks in connection with this transaction is an insurance
     company's general asset account, to the application of Prohibited
     Transaction Class Exemption 95-60, 60 Fed. Reg. 35,925 (1995), compliance
     with the regulations issued under Section 401(c)(1)(A) of ERISA, or the
     issuance of any other prohibited transaction exemption or similar relief,
     to the effect that assets in an insurance company's general asset account
     do not constitute assets of an "employee benefit plan" within the meaning
     of Section 3(3) of ERISA or a "plan" within the meaning of Section
     4975(e)(1) of the Code.

                                       67
<PAGE>

     (c)  To the extent the foregoing representations contained in this Section
     6.12 include Multiemployer Plans, each such representation shall be based
     on the best knowledge of the Executive Officers of the Credit Parties.

     6.13    Corporate Structure; Capital Stock, etc.
             ---------------------------------------

     The corporate ownership structure of the Consolidated Parties as of the
Amendment Closing Date is as described in Schedule 6.13A.  Set forth on Schedule
                                          --------------                --------
6.13B is a complete and accurate list as of the Amendment Closing Date with
-----
respect to the Borrower and each of its direct and indirect Subsidiaries of (i)
jurisdiction of incorporation, (ii) number of shares of each class of Capital
Stock outstanding, (iii) number and percentage of outstanding shares of each
class owned (directly or indirectly) by the Consolidated Parties and (iv) number
and effect, if exercised, of all outstanding options, warrants, rights of
conversion or purchase and all other similar rights with respect thereto as of
the Amendment Closing Date.  Also set forth on Schedule 6.13(B) is a list of the
                                               ----------------
Material Foreign Subsidiaries of the Credit Parties as of the Amendment Closing
Date.  The outstanding Capital Stock of all such Persons is validly issued,
fully paid and non-assessable and is owned by the Consolidated Parties, directly
or indirectly, in the manner set forth on Schedule 6.13B, free and clear of all
                                          --------------
Liens (other than those arising under or contemplated in connection with the
Credit Documents).  Other than as set forth in Schedule 6.13B, neither the
                                               --------------
Borrower nor any of its Subsidiaries has outstanding any securities convertible
into or exchangeable for its Capital Stock nor does any such Person have
outstanding any rights to subscribe for or to purchase or any options for the
purchase of, or any agreements providing for the issuance (contingent or
otherwise) of, or any calls, commitments or claims of any character relating to
its Capital Stock.

     6.14  Governmental Regulations, Etc.
           -----------------------------

           (a)   None of the transactions contemplated by this Credit Agreement
     (including, without limitation, the direct or indirect use of the proceeds
     of the Loans) will violate or result in a violation of the Securities Act,
     the Securities Exchange Act or Regulations U and X.  If requested by any
     Bank or the Administrative Agent, the Borrower will furnish to the
     Administrative Agent and each Bank a statement, in conformity with the
     requirements of FR Form U-1 referred to in Regulation U, that no part of
     the Letters of Credit or proceeds of the Loans will be used, directly or
     indirectly, for the purpose of "buying" or "carrying" any "margin stock"
     within the meaning of Regulations U and X, or for the purpose of purchasing
     or carrying or trading in any securities.

           (b)   None of the Consolidated Parties is (i) an "investment
     company", or a company "controlled" by an "investment company", within the
     meaning of the Investment Company Act of 1940, as amended, (ii) a "holding
     company" as defined in, or otherwise subject to regulation under, the
     Public Utility Holding Company Act of 1935, as amended or (iii) subject to
     regulation under any other Federal or state statute or regulation which
     limits its ability to incur Indebtedness.

                                       68
<PAGE>

     6.15  Purpose of Loans and Letters of Credit.
           --------------------------------------

           The proceeds of the Loans hereunder shall be used solely by the
     Borrower to pay fees and expenses relating to the Credit Facilities and to
     provide for working capital and general corporate purposes of the Borrower
     and its Subsidiaries.  The Letters of Credit shall be used only for or in
     connection with appeal bonds, environmental liabilities, reimbursement
     obligations arising in connection with surety and reclamation bonds,
     reinsurance, domestic or international trade transactions and obligations
     not otherwise aforementioned relating to transactions entered into by the
     applicable account party in the ordinary course of business.

     6.16  Environmental Matters.
           ---------------------

     Except for such matters as would not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect:

           (a)    Each of the Real Properties and all operations at the Real
     Properties are in compliance with all applicable Environmental Laws, there
     is no violation of any Environmental Law with respect to the Real
     Properties or the Businesses, and there are no conditions relating to the
     Real Properties or the Businesses that could reasonably be expected to give
     rise to liability under any applicable Environmental Laws.

           (b)    None of the Real Properties contains, or has previously
     contained, any Materials of Environmental Concern at, on or under the Real
     Properties in amounts or concentrations that constitute or constituted a
     violation of, or could reasonably be expected to give rise to liability
     under, Environmental Laws.

           (c)    No Consolidated Party has received any written or verbal
     notice of, or inquiry from any Governmental Authority regarding, any
     violation, alleged violation, non-compliance, liability or potential
     liability regarding compliance with Environmental Laws with regard to any
     of the Real Properties or the Businesses, nor does any Executive Officer of
     any Credit Party have knowledge or reason to believe that any such notice
     will be received or is being threatened.

           (d)    Materials of Environmental Concern have not been transported
     or disposed of from the Real Properties, or generated, treated, stored or
     disposed of at, on or under any of the Real Properties or any other
     location, in each case by or on behalf of any Consolidated Party in
     violation of, or in a manner that could reasonably be expected to give rise
     to liability under, any applicable Environmental Law.

           (e)    No judicial proceeding or governmental or administrative
     action is pending or, to the best knowledge of the Executive Officers of
     the Credit Parties, threatened, under any Environmental Law to which any
     Consolidated Party is or will be named as a party, nor are there any
     consent decrees or other decrees, consent orders, administrative orders or
     other orders, or other administrative or judicial requirements outstanding
     under any

                                      69
<PAGE>

     Environmental Law with respect to the Consolidated Parties, the Real
     Properties or the Businesses.

          (f)    There has been no release, or threat of release, of Materials
     of Environmental Concern at or from the Real Properties, or arising from or
     related to the operations (including, without limitation, disposal) of any
     Consolidated Party in connection with the Real Properties or otherwise in
     connection with the Businesses, in violation of or in amounts or in a
     manner that could reasonably be expected to give rise to liability under
     Environmental Laws.

     6.17 Intellectual Property.
          ---------------------

     Each Consolidated Party owns, or has the legal right to use, all
trademarks, tradenames, patents, copyrights, technology, know-how and processes
(the "Intellectual Property") necessary for each of them to conduct its business
      ---------------------
as currently conducted except for those the failure to own or have such legal
right to use could not have a Material Adverse Effect.  Set forth on Schedule
                                                                     --------
6.17 is a list of all Intellectual Property registered with the United States
----
Copyright Office or the United States Patent and Trademark Office and owned by
each Consolidated Party or that any Consolidated Party has the right to use.  No
claim has been asserted and is pending by any Person challenging or questioning
the use of any such Intellectual Property or the validity or effectiveness of
any such Intellectual Property, nor does any Credit Party know of any such
claim, and, to the knowledge of the Executive Officers of the Credit Parties,
the use of such Intellectual Property by any Consolidated Party does not
infringe on the rights of any Person, except for such claims and infringements
that, in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

     6.18 Solvency.
          --------

     Each Credit Party is Solvent.

     6.19 Investments.
          -----------

     All Investments of each Consolidated Party are Permitted Investments.

     6.20 Business Locations.
          ------------------

     Set forth on Schedule 6.20(a) is a list of all Real Properties of the
                  ----------------
Credit Parties as of the Amendment Closing Date.  Set forth on Schedule 6.20(b)
                                                               ----------------
is a list of all locations where any tangible personal property of a Credit
Party is located as of the Amendment Closing Date.  Set forth on Schedule
                                                                 --------
6.20(c) is the chief executive office and principal place of business of each
-------
Consolidated Party.

     6.21 Disclosure.
          ----------

     Neither this Credit Agreement nor any financial statements delivered to the
Banks in connection with this Agreement nor any other document (including
without limitation the

                                       70
<PAGE>

confidential offering memorandum, dated March 2001), certificate or statement
furnished to the Banks by or on behalf of any Consolidated Party in connection
with the transactions contemplated hereby (other than financial projections
which were prepared in good faith based upon assumptions that the Borrower
believes are reasonable) contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements
contained therein or herein not misleading.

     6.22 No Burdensome Restrictions.
          --------------------------

     No Consolidated Party is a party to any agreement or instrument or subject
to any other obligation or any charter or corporate restriction or any provision
of any applicable law, rule or regulation which, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

     6.23 Labor Matters.
          -------------

          (a) Except as set forth in Schedule 6.23, there are no collective
                                     -------------
     bargaining agreements or Multiemployer Plans covering the employees of a
     Consolidated Party as of the Amendment Closing Date.

          (b) None of the Consolidated Parties has suffered any strikes,
     walkouts, work stoppages or other material labor difficulty within the last
     five years, except for any of the foregoing that, in the aggregate, have or
     could reasonably be expected to have a Material Adverse Effect.

     6.24 Collateral Documents.
          --------------------

     The Collateral Documents create valid security interests in, and Liens on,
the Collateral purported to be covered thereby, which security interests and
Liens are and will remain perfected security interests and Liens to the extent
required by the Collateral Documents, prior to all other Liens other than
Permitted Liens.  Each of the representations and warranties made by the Credit
Parties in the Collateral Documents is true and correct in all material
respects.

                                   SECTION 7

                             AFFIRMATIVE COVENANTS
                             ---------------------

     Each Credit Party hereby covenants and agrees that, so long as this Credit
Agreement is in effect or any amounts payable hereunder or under any other
Credit Document shall remain outstanding or any Letter of Credit is outstanding,
and until all of the Commitments hereunder shall have terminated:

                                       71
<PAGE>

     7.1  Information Covenants.
          ---------------------

     The Credit Parties will furnish, or cause to be furnished, to the
Administrative Agent and each of the Banks:

          (a)    Annual Financial Statements.  As soon as available, and in any
                 ---------------------------
     event within 90 days after the close of each fiscal year of the
     Consolidated Parties, (i) a consolidated balance sheet and income statement
     of the Consolidated Parties as of the end of such fiscal year, together
     with related consolidated statements of retained earnings and cash flows
     for such fiscal year, in each case setting forth in comparative form
     consolidated figures for the preceding fiscal year, all such financial
     information described above to be in reasonable form and detail and audited
     by PricewaterhouseCoopers LLP or such other independent certified public
     accountants of recognized national standing reasonably acceptable to the
     Required Banks and whose opinion shall be to the effect that such financial
     statements have been prepared in accordance with GAAP (except for changes
     with which such accountants concur) and shall not be limited as to the
     scope of the audit or qualified as to the status of the Consolidated
     Parties as a going concern or any other material qualifications or
     exceptions and (ii) a consolidating balance sheet and statements of income
     and retained earnings of the Consolidated Parties as of the end of such
     fiscal year, together with a consolidating balance sheet and statements of
     income and retained earnings of the Consolidated Parties as of the end of
     prior fiscal year, all such financial information described above to be in
     reasonable form and detail reasonably acceptable to the Administrative
     Agent and the Required Banks, and accompanied by a certificate of an
     Executive Officer of the Borrower to the effect that such financial
     statements fairly present in all material respects the financial condition
     of the Consolidated Parties and have been prepared in accordance with GAAP.

          (b)    Quarterly Financial Statements. As soon as available, and in
                 ------------------------------
     any event within 45 days after the close of each of the first three fiscal
     quarters of each fiscal year of the Consolidated Parties, (i) a
     consolidated balance sheet and statements of income and retained earnings
     of the Consolidated Parties as of the end of such fiscal quarter, together
     with related consolidated statements of cash flows for such fiscal quarter,
     in each case setting forth in comparative form consolidated figures for the
     corresponding period of the preceding fiscal year and (ii) a consolidating
     balance sheet and statements of income and retained earnings of the
     Consolidated Parties as of the end of such fiscal quarter, together with a
     consolidating balance sheet and statements of income and retained earnings
     of the Consolidated Parties for the corresponding period of the preceding
     fiscal year, all such financial information described above to be in
     reasonable form and detail and reasonably acceptable to the Administrative
     Agent and the Required Banks, and accompanied by a certificate of an
     Executive Officer of the Borrower to the effect that such quarterly
     financial statements fairly present in all material respects the financial
     condition of the Consolidated Parties and have been prepared in accordance
     with GAAP, subject to changes resulting from audit and normal year-end
     audit adjustments.

          (c)    Monthly Financial Statements.  As soon as available, and in any
                 ----------------------------
     event within 30 days after the close of each calendar month, (i)
     consolidated and consolidating statements of income and retained earnings
     of the Consolidated Parties as of the end of such calendar

                                       72
<PAGE>

     month, together with consolidated and consolidating statements of income
     and retained earnings of the Consolidated Parties for the corresponding
     month of the preceding fiscal year and (ii) an internally-prepared
     financial report of the Consolidated Parties (consistent with the monthly
     financial report provided to executive management and/or the board of
     directors of the Borrower) as of the end of such calendar month, all such
     financial information described above to be in reasonable form and detail
     and reasonably acceptable to the Administrative Agent and the Required
     Banks, and accompanied by a certificate of an Executive Officer of the
     Borrower to the effect that such monthly financial statements and financial
     report fairly present in all material respects the financial condition of
     the Consolidated Parties and have been prepared in accordance with GAAP,
     except for the omission of footnotes and subject to changes resulting from
     audit and normal year-end audit adjustments.

          (d)    Officer's Certificate. At the time of delivery of the financial
                 ----------------------
     statements provided for in Sections 7.1(a) and 7.1(b) above, a certificate
     of an Executive Officer of the Borrower substantially in the form of
     Exhibit 7.1(d), (i) demonstrating compliance with the financial covenants
     --------------
     contained in Section 7.11 by calculation thereof as of the end of each such
     fiscal period and (ii) stating that no Default or Event of Default exists,
     or if any Default or Event of Default does exist, specifying the nature and
     extent thereof and what action the Credit Parties have taken or propose to
     take with respect thereto.

          (e)    Annual Business Plan and Budgets.  As soon as available, and in
                 --------------------------------
     any event within 30 days after the close of each fiscal year of the
     Borrower, beginning with the fiscal year ending December 31, 2001 an annual
     business plan and budget (presented on a quarterly basis) of the
     Consolidated Parties containing, among other things, pro forma financial
     statements for the next fiscal year.

          (f)    Compliance With Certain Provisions of the Credit Agreement.
                 ----------------------------------------------------------
     Within 90 days after the end of each fiscal year of the Credit Parties, a
     certificate containing information regarding (i) the calculation of Excess
     Cash Flow and (ii) the amount of all Asset Dispositions, Debt Issuances and
     Equity Issuances that were made during the prior fiscal year.

          (g)    Accountant's Certificate. Within the period for delivery of the
                 ------------------------
     annual financial statements provided in Section 7.1(a), a certificate of
     the accountants conducting the annual audit stating that they have reviewed
     this Credit Agreement as it relates to accounting and other financial
     matters and stating further whether, in the course of their audit, they
     have become aware of any Default or Event of Default and, if any such
     Default or Event of Default exists, specifying the nature and extent
     thereof, provided that such accountants shall not be liable by reason of
     any failure to obtain knowledge of any such Default or Event of Default
     that would not be disclosed in the course of their audit examination.

          (h)    Auditor's Reports. Promptly upon receipt thereof, a copy of any
                 -----------------
     other report or "management letter" submitted by independent accountants to
     any Consolidated Party in connection with any annual, interim or special
     audit of the books of such Person.

                                       73
<PAGE>

          (i)    Reports.  Promptly, (i) upon transmission or receipt thereof,
                 -------
     copies of any filings and registrations with, and reports to or from, the
     Securities and Exchange Commission, or any successor agency, and copies of
     all financial statements, proxy statements, notices and reports as any
     Consolidated Party shall send to its shareholders or to a holder of any
     Indebtedness owed by any Consolidated Party in its capacity as such a
     holder and (ii) upon the reasonable written request of the Administrative
     Agent, all reports and written information to and from the United States
     Environmental Protection Agency, or any state or local agency responsible
     for environmental matters, the United States Occupational Health and Safety
     Administration, or any state or local agency responsible for health and
     safety matters, or any successor agencies or authorities concerning
     environmental, health or safety matters.

          (j)    Notices. Upon any Executive Officer of a Credit Party obtaining
                 -------
     knowledge thereof, the Credit Parties will give written notice to the
     Administrative Agent immediately of (i) the occurrence of an event or
     condition consisting of a Default or Event of Default, specifying the
     nature and existence thereof and what action the Credit Parties have taken
     or propose to take with respect thereto, and (ii) the occurrence of any of
     the following with respect to any Consolidated Party (A) the pendency or
     commencement of any litigation, arbitral or governmental proceeding against
     such Person which if adversely determined reasonably be expected to have a
     Material Adverse Effect or (B) the institution of any proceedings against
     such Person with respect to, or the receipt of notice by such Person of
     potential liability or responsibility for violation, or alleged violation
     of any Federal, state or local law, rule or regulation, including but not
     limited to, Environmental Laws, the violation of which could reasonably be
     expected to have a Material Adverse Effect.

          (k)    ERISA.  Upon any Executive Officer of a Credit Party obtaining
                 -----
     knowledge thereof, the Credit Parties will give written notice to the
     Administrative Agent promptly (and in any event within five Business Days)
     of:  (i) any event or condition, including, but not limited to, any
     Reportable Event, that constitutes, or might reasonably lead to, an ERISA
     Event; (ii) with respect to any Multiemployer Plan, the receipt of notice
     as prescribed in ERISA or otherwise of any withdrawal liability assessed
     against the Credit Parties or any ERISA Affiliates, or of a determination
     that any Multiemployer Plan is in reorganization or insolvent (both within
     the meaning of Title IV of ERISA) which could result in a liability of
     $2,500,000 or more; (iii) the failure to make full payment on or before the
     due date (including extensions) thereof (or within 6 months thereof) of all
     amounts which any Consolidated Party or any ERISA Affiliate is required to
     contribute to each Plan pursuant to its terms and as required to meet the
     minimum funding standard set forth in ERISA and the Code with respect
     thereto; or (iv) any change in the funding status of any Plan that could
     reasonably be expected to have a Material Adverse Effect, together with a
     description of any such event or condition or a copy of any such notice and
     a statement by an Executive Officer of the Borrower briefly setting forth
     the details regarding such event, condition, or notice, and the action, if
     any, which has been or is being taken or is proposed to be taken by the
     Credit Parties with respect thereto.  Promptly upon request, the Credit
     Parties shall furnish the Administrative Agent and the Banks with such
     additional information concerning any Plan as may be reasonably requested,
     including, but not limited to, copies of

                                       74
<PAGE>

     each annual report/return (Form 5500 series), as well as all schedules and
     attachments thereto required to be filed with the Department of Labor
     and/or the Internal Revenue Service pursuant to ERISA and the Code,
     respectively, for each "plan year" (within the meaning of Section 3(39) of
     ERISA).

          (l)    Environmental.  Upon the reasonable written request of the
                 -------------
     Administrative Agent following the occurrence of any event or the discovery
     of any condition which the Administrative Agent or the Required Banks
     reasonably believe has caused (or could be reasonably expected to cause)
     the representations and warranties set forth in Section 6.16 to be untrue
     in any material respect, the Credit Parties will furnish or cause to be
     furnished to the Administrative Agent, at the Credit Parties' expense, a
     report of an environmental assessment of reasonable scope, form and depth,
     (including, where appropriate and permitted by any applicable contractual
     arrangements, invasive soil or groundwater sampling) by a consultant
     reasonably acceptable to the Administrative Agent as to the nature and
     extent of the presence of any Materials of Environmental Concern on any
     Real Properties (as defined in Section 6.16) and as to the compliance by
     any Consolidated Party with Environmental Laws at such Real Properties.  If
     the Credit Parties fail to deliver such an environmental report within
     seventy-five (75) days after receipt of such written request then the
     Administrative Agent may arrange for same, and the Consolidated Parties
     hereby grant to the Administrative Agent and their representatives access
     to the Real Properties to reasonably undertake such an assessment
     (including, where appropriate and permitted by any applicable contractual
     arrangements, invasive soil or groundwater sampling).  The reasonable cost
     of any assessment arranged for by the Administrative Agent pursuant to this
     provision will be payable by the Credit Parties on demand and added to the
     obligations secured by the Collateral Documents.

          (m)    Additional Patents and Trademarks. At the time of delivery of
                 ---------------------------------
     the financial statements and reports provided for in Section 7.1(a)
     (following the close of the fiscal year of the Borrower) and Section 7.1(b)
     (following the close of the first three fiscal quarters of each fiscal year
     of the Borrower), a report signed by an Executive Officer of the Borrower
     setting forth (i) a list of registration numbers for all patents,
     trademarks, service marks, tradenames and copyrights awarded to any
     Consolidated Party since the last day of the immediately preceding fiscal
     year and (ii) a list of all patent applications, trademark applications,
     service mark applications, trade name applications and copyright
     applications submitted by any Consolidated Party since the last day of the
     immediately preceding fiscal year and the status of each such application,
     all in such form as shall be reasonably satisfactory to the Administrative
     Agent.

          (n)    Other Information.  With reasonable promptness upon any such
                 -----------------
     request, such other information regarding the business, properties or
     financial condition of any Consolidated Party as the Administrative Agent
     or the Required Banks may reasonably request.

                                       75
<PAGE>

     7.2  Preservation of Existence and Franchises.
          ----------------------------------------

     Except as a result of or in connection with a dissolution, merger or
disposition of a Subsidiary not prohibited by Section 8.3 or Section 8.4, each
Credit Party will, and will cause each of its Subsidiaries to, do all things
necessary to preserve and keep in full force and effect its existence and
authority and all rights and franchises material to such Credit Party's business
as then being conducted.

     7.3  Books and Records.
          -----------------

     Each Credit Party will, and will cause each of its Subsidiaries to, keep
complete and accurate books and records of its transactions in accordance with
good accounting practices on the basis of GAAP (including the establishment and
maintenance of appropriate reserves).

     7.4  Compliance with Law.
          -------------------

     Each Credit Party will, and will cause each of its Subsidiaries to, comply
with all laws, rules, regulations and orders, and all applicable restrictions
imposed by all Governmental Authorities, applicable to it and its Property if
noncompliance with any such law, rule, regulation, order or restriction could
reasonably be expected to have a Material Adverse Effect.

     7.5  Payment of Taxes and Other Indebtedness.
          ---------------------------------------

     Each Credit Party will, and will cause each of its Subsidiaries to, pay and
discharge (a) all taxes, assessments and governmental charges or levies imposed
upon it, or upon its income or profits, or upon any of its properties, before
they shall become delinquent, (b) all lawful claims (including claims for labor,
materials and supplies) which, if unpaid, might give rise to a Lien upon any of
its properties, and (c) except as prohibited hereunder, all of its other
Indebtedness as it shall become due; provided, however, that no Consolidated
                                     --------  -------
Party shall be required to pay any such tax, assessment, charge, levy, claim or
Indebtedness which is being contested in good faith by appropriate proceedings
and as to which adequate reserves therefor have been established in accordance
with GAAP, unless the failure to make any such payment (i) could give rise to an
immediate right to foreclose on a Lien securing such amounts or (ii) could
reasonably be expected to have a Material Adverse Effect.

     7.6  Insurance.
          ---------

          (a)  Each Credit Party will, and will cause each of its Subsidiaries
     to, at all times maintain in full force and effect insurance (including
     worker's compensation insurance, liability insurance, casualty insurance
     and business interruption insurance) in such amounts, covering such risks
     and liabilities and with such deductibles or self-insurance retentions as
     are in accordance with normal industry practice (or as otherwise required
     by the Collateral Documents). The Collateral Agent shall be named as loss
     payee or mortgagee, as its interest may appear, and/or additional insured
     with respect to any such insurance providing coverage in respect of any
     Collateral, and each provider of any such insurance shall agree, by
     endorsement upon the policy or policies issued by it or by independent

                                       76
<PAGE>

     instruments furnished to the Collateral Agent, that it will give the
     Collateral Agent thirty (30) days prior written notice before any such
     policy or policies shall be altered or canceled. The present insurance
     coverage of the Consolidated Parties is outlined as to carrier, policy
     number, expiration date, type and amount on Schedule 7.6.
                                                 ------------

          (b)  In the event that the Consolidated Parties receive Net Cash
     Proceeds in excess of $1,000,000 in aggregate amount during any fiscal year
     of the Consolidated Parties ("Excess Proceeds") on account of Involuntary
                                   ---------------
     Dispositions, the Credit Parties shall deposit such Excess Proceeds with
     the Collateral Agent to be held in a cash collateral account (pursuant to
     documentation reasonably satisfactory to the Collateral Agent and the
     Borrower) maintained by and in the sole dominion and control of the
     Collateral Agent. If within 120 days following the date of receipt of such
     Excess Proceeds, the Consolidated Parties shall not have requested the
     release of such Excess Proceeds in order to apply such Excess Proceeds to
     the repair or replacement of the related Property, the Collateral Agent
     shall apply such Excess Proceeds toward the prepayment of the Loans (and
     cash collateralize LOC Obligations) in accordance with the terms of Section
     3.3(b)(iii)(B). All insurance proceeds shall be subject to the security
     interest of the Collateral Agent (for the ratable benefit of the Banks)
     under the Collateral Documents.

     7.7  Maintenance of Property.
          -----------------------

     Each Credit Party will, and will cause each of its Subsidiaries to,
maintain and preserve its properties and equipment material to the conduct of
its business in good repair, working order and condition, normal wear and tear
and casualty and condemnation excepted, and will make, or cause to be made, in
such properties and equipment from time to time all repairs, renewals,
replacements, extensions, additions, betterments and improvements thereto as may
be needed or proper, to the extent and in the manner customary for companies in
similar businesses.

     7.8  Performance of Obligations.
          --------------------------

     Each Credit Party will, and will cause each of its Subsidiaries to, perform
in all material respects all of its obligations under the terms of all material
agreements and all material indentures, mortgages, security agreements or other
debt instruments to which it is a party or by which it is bound.

     7.9  Use of Proceeds.
          ---------------

     The Borrower will use the proceeds of the Loans and will use the Letters of
Credit solely for the purposes set forth in Section 6.15.

     7.10 Audits/Inspections.
          ------------------

     Upon reasonable notice and during normal business hours, each Credit Party
will, and will cause each of its Subsidiaries to, permit representatives
appointed by the Administrative Agent and each Bank, including, without
limitation, independent accountants, agents, attorneys, and appraisers to visit
and inspect its property, including its books and records, its accounts
receivable and

                                       77
<PAGE>

inventory, its facilities and its other business assets, and to make photocopies
or photographs thereof and to write down and record any information such
representative obtains and shall permit the Administrative Agent and each Bank
or its applicable representatives to investigate and verify the accuracy of
information provided to the Banks and to discuss all such matters with the
officers, employees and representatives of such Person; provided, however, the
Banks shall not be permitted to visit and inspect the property more than once in
any calendar year. The Credit Parties agree that the Administrative Agent, and
its representatives, may conduct an annual audit of the Collateral, at the
expense of the Credit Parties.

     7.11  Financial Covenants.
           -------------------

           (a)  Leverage Ratio.  The Leverage Ratio, as of the last day of each
                --------------
     fiscal quarter of the Consolidated Parties occurring during each of the
     periods set forth below, shall be less than or equal to:

           Period                                               Ratio
           ------                                               -----

           From the Amendment Closing Date through September    6.1 to 1.0
            29, 2001

           From September 30, 2001 through December 30, 2001    5.25 to 1.0

           From December 31, 2001 through March 30, 2002        4.85 to 1.0

           March 31, 2002 through June 29, 2002                 4.25 to 1.0

           From June 30, 2002 through September 29, 2002        3.85 to 1.0

           From September 30, 2002 and thereafter               3.75 to 1.0

     and, if the Maturity Date is extended pursuant to the terms of Section 2.5,
     the Leverage Ratio, as of the last day of each fiscal quarter of the
     Consolidated Parties occurring during each of the periods set forth below,
     shall be less than or equal to:

           Period                                               Ratio
           ------                                               -----

           From September 30, 2002 through March 30, 2003       3.75 to 1.0

           From March 31, 2003 through September 29, 2003       3.50 to 1.0

           From September 30, 2003 and thereafter               3.25 to 1.0

                                       78
<PAGE>

          (b)  Interest Coverage Ratio.  The Interest Coverage Ratio, as of the
               -----------------------
     last day of each fiscal quarter of the Consolidated Parties occurring
     during each of the periods set forth below, shall be greater than or equal
     to:

          Period                                             Ratio
          ------                                             -----

          From the Amendment Closing Date through December   2.05 to 1.0
          30, 2001

          From December 31, 2001 through March 30, 2002      2.25 to 1.0

          From March 31, 2002 through June 29, 2002          2.75 to 1.0

          From June 30, 2002 through September 29, 2002      3.25 to 1.0

          From September 30, 2002 and thereafter             3.50 to 1.0

     and, if the Maturity Date is extended pursuant to the terms of Section 2.5,
     the Interest Coverage Ratio, as of the last day of each fiscal quarter of
     the Consolidated Parties occurring during each of the periods set forth
     below, shall be greater than or equal to:

          Period                                             Ratio
          ------                                             -----

          From September 30, 2002 through December 30, 2002  3.50 to 1.0

          From December 31, 2002 through March 30, 2003      3.75 to 1.0

          From March 31, 2003 and thereafter                 4.0 to 1.0

          (c)  Consolidated EBITDA.  Consolidated EBITDA for each period of the
               -------------------
     Consolidated Parties set forth below shall not be less than (i) $31.5
     million for the six month period ending June 30, 2001, (ii) $53.5 million
     for the nine month period ending September 30, 2001, (iii) $76.5 million
     for the twelve month period ending December 31, 2001, (iv) $86 million for
     the twelve month period ending March 31, 2002 and (v) subsequent to March
     31, 2002, $90 million for each twelve month period ending as of each fiscal
     quarter end thereafter.

     7.12 New Subsidiaries.
          ----------------

     As soon as practicable and in any event within 30 days after any Person
becomes a direct or indirect Subsidiary of the Parent, the Borrower shall
provide the Administrative Agent with written notice thereof setting forth
information in reasonable detail describing all of the assets of such Person and
shall (a) if such Person is a Domestic Subsidiary, (i) cause such Person to
execute a Joinder Agreement in substantially the same form as Exhibit 7.12 and
                                                              ------------
(ii) unless the

                                       79
<PAGE>

Release of Collateral Event has occurred, cause 100% of the issued and
outstanding Capital Stock of such Person to be delivered to the Collateral Agent
(together with undated stock powers signed in blank) and pledged to the
Collateral Agent pursuant to an appropriate pledge agreement(s) in substantially
the form of the Pledge Agreement and otherwise in form acceptable to the
Collateral Agent, (b) unless the Release of Collateral Event has occurred, (i)
if such Person is a direct Material Foreign Subsidiary of a Credit Party or (ii)
if such Person (together with all other direct Foreign Subsidiaries which are
not Material Foreign Subsidiaries) shall at any time (A) collectively own more
than 5% of Consolidated Total Assets or (B) account in the aggregate for more
than 5% of Consolidated EBITDA for the most recently ended twelve-month period,
cause 65% (or such greater percentage that, due to a change in an applicable
Requirement of Law after the date hereof, (I) could not reasonably be expected
to cause any undistributed earnings of such each Foreign Subsidiary as
determined for United States federal income tax purposes to be treated as a
deemed dividend to such Foreign Subsidiary's United States parent or (II) could
not reasonably be expected to cause any material adverse tax consequences) of
the issued and outstanding Capital Stock entitled to vote (within the meaning of
Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding
Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) of such Material Foreign Subsidiary or Foreign Subsidiaries, as
applicable, to be delivered to the Collateral Agent (together with undated stock
powers signed in blank (unless, with respect to a Material Foreign Subsidiary or
any such Foreign Subsidiaries, as applicable, such stock powers are deemed
unnecessary by the Collateral Agent in its reasonable discretion under the law
of the jurisdiction of incorporation of such Person)) and pledged to the
Collateral Agent pursuant to an appropriate pledge agreement(s) in substantially
the form of the Pledge Agreement and otherwise in form acceptable to the
Collateral Agent, (c) unless the Release of Collateral Event has occurred, cause
such Person to deliver to the Collateral Agent with respect to any real Property
owned or leased by such Person and which is not Excluded Property, documents,
instruments and other items of the types required to be delivered pursuant to
Section 5.1(e) all in form, content and scope reasonably satisfactory to the
Collateral Agent and (d) deliver such other documentation as the Collateral
Agent may reasonably request in connection with the foregoing, including,
without limitation, appropriate UCC-1 financing statements, real estate title
insurance policies, environmental reports, landlord's waivers, certified
resolutions and other organizational and authorizing documents of such Person,
favorable opinions of counsel to such Person (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the
documentation referred to above and the perfection of the Collateral Agent's
liens thereunder) and other items of the types required to be delivered pursuant
to Section 5.1(b), (c), (d) and (e), all in form, content and scope reasonably
satisfactory to the Collateral Agent.

     7.13  Pledged Assets.
           --------------

     Unless the Release of Collateral Event has occurred, each Credit Party will
(i) cause all of its owned and leased real and personal Property other than
Excluded Property to be subject at all times to first priority, perfected and,
in the case of real Property (whether leased or owned), title insured Liens in
favor of the Collateral Agent to secure the Credit Party Obligations pursuant to
the terms and conditions of the Collateral Documents or, with respect to any
such Property acquired subsequent to the Amendment Closing Date, such other
additional security documents as the Collateral Agent shall reasonably request,
subject in any case to Permitted Liens and

                                       80
<PAGE>

(ii) deliver such other documentation as the Collateral Agent may reasonably
request in connection with the foregoing, including, without limitation,
appropriate UCC-1 financing statements, real estate title insurance policies,
surveys, environmental reports, landlord's waivers, certified resolutions and
other organizational and authorizing documents of such Person, favorable
opinions of counsel to such Person (which shall cover, among other things, the
legality, validity, binding effect and enforceability of the documentation
referred to above and the perfection of the Collateral Agent's liens thereunder)
and other items of the types required to be delivered pursuant to Section 5.1(d)
and (e), all in form, content and scope reasonably satisfactory to the
Collateral Agent. Without limiting the generality of the above, unless the
Release of Collateral Event has occurred, the Borrower will cause (A) 100% of
the issued and outstanding Capital Stock of each Domestic Subsidiary and (B) 65%
(or such greater percentage that, due to a change in an applicable Requirement
of Law after the date hereof, (1) could not reasonably be expected to cause any
undistributed earnings of each such Foreign Subsidiary as determined for United
States federal income tax purposes to be treated as a deemed dividend to such
Foreign Subsidiary's United States parent and (2) could not reasonably be
expected to cause any material adverse tax consequences) of the issued and
outstanding Capital Stock entitled to vote (within the meaning of Treas. Reg.
Section 1.956-2(c)(2)) and 100% of the issued and outstanding Capital Stock not
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in
(x) each Material Foreign Subsidiary directly owned by the Borrower or any
Domestic Subsidiary and (y) those other Foreign Subsidiaries as required by
Section 7.12 to be subject at all times to a first priority, perfected Lien in
favor of the Collateral Agent pursuant to the terms and conditions of the
Collateral Documents or such other security documents as the Collateral Agent
shall reasonably request.

     7.14  Interest Rate Protection.
           ------------------------

           The Borrower shall, within ninety (90) days of the Amendment Closing
Date, enter into and maintain cap agreements, in form and substance reasonably
satisfactory to the Borrower and the Administrative Agent, for a period expiring
no earlier than the Maturity Date, and in a notional amount equal to at least
$200 million.

     7.15  Further Assurances.
           ------------------

     The Credit Parties shall, at their expense, (a) from time to time execute
and deliver, or cause to be executed and delivered, such additional instruments,
certificates or documents, and take all such actions, as any Agent or the
Required Banks may reasonably request, for the purposes of implementing or
effectuating the provisions of this Credit Agreement and the other Credit
Documents or creating or perfecting or ensuring the priority or sufficiency or
enforceability or enforcement of a Lien in favor of the Collateral Agent as
security for the obligations hereunder upon any or all of its Property (whether
then owned or thereafter acquired), or more fully protecting or renewing any
such Lien and (b) provide the Administrative Agent an appraisal with respect to
any Mortgaged Property satisfying the requirements of FIRREA (and otherwise
satisfactory in form and substance to the Administrative Agent) to the extent
required by FIRREA.

                                       81
<PAGE>

     7.16  Post-Closing Deliveries.
           -----------------------

     (a)   On or before June 30, 2001, the Credit Parties agree to provide the
Collateral Agent with (i) a pledge (pursuant to an appropriate pledge
agreement(s) satisfactory in form and substance to the Collateral Agent) of 65%
(or such greater percentage that, due to a change in an applicable Requirement
of Law after the date hereof, (A) could not reasonably be expected to cause the
undistributed earnings of any such Material Foreign Subsidiary as determined for
United States federal income tax purposes to be treated as a deemed dividend of
such Material Foreign Subsidiary's United States parent or (B) could not
reasonably be expected to cause any material adverse tax consequences) of the
Capital Stock of each Material Foreign Subsidiary, (ii) a legal opinion of
foreign counsel of each such Material Foreign Subsidiary in a form satisfactory
to the Collateral Agent, which shall cover the enforceability and perfection of
the Collateral Agent's security interest in each such pledged shares of the
Material Foreign Subsidiaries and (iii) certificates evidencing any such
certificated Capital Stock, together with duly executed in blank, undated stock
powers attached thereto (unless, such stock powers are deemed unnecessary by the
Collateral Agent in its reasonable discretion under the law of the jurisdiction
of such Material Foreign Subsidiary).

     (b)   On or before May 1, 2001, the Credit Parties agree to (i)(A) provide
the Collateral Agent with an executed landlord waiver (in form and substance
satisfactory to the Collateral Agent and its legal counsel) from the landlord of
each leased real property location (other than sales offices and sports venue
sky boxes) of any Credit Party or (B) provide evidence to the Collateral Agent
and its legal counsel that any such landlord waiver has been sought from each
applicable landlord and that the Credit Parties are using all reasonable
commercial efforts to obtain such landlord's waiver and (ii)(A) provide the
Collateral Agent with an executed waiver letter from warehousemen (in form and
substance satisfactory to the Collateral Agent) with respect to those drumming,
warehouse, terminal, tolling and transloading facilities set forth on Schedule
6.20(b) or (B) provide evidence to the Collateral Agent and its legal counsel
that any such waiver letter has been sought from each applicable warehousemen
and that the Credit Parties are using all reasonable commercial efforts to
obtain such warehousemen's letter.

     (c)   On or before May 15, 2001, the Credit Parties agree to provide the
Collateral Agent, in form and substance reasonably satisfactory to the
Collateral Agent and its legal counsel, ALTA mortgagee title insurance policies
issued by Lawyer's Title Insurance Corporation with respect to the Real
Properties identified on Schedule 7.16 in the respective amounts identified on
                         -------------
Schedule 7.16, assuring the Collateral Agent that the applicable Mortgage
-------------
Instruments create a valid and enforceable first priority mortgage lien on such
Real Properties, free and clear of all defects and encumbrances except Permitted
Liens and containing such endorsements as are reasonably requested by the
Collateral Agent.

     (d)   On or before July 15, 2001 or such later date as the Collateral Agent
may reasonably determine, the Credit Parties agree to (i) provide the Collateral
Agent with a security interest (pursuant to appropriate security agreements
satisfactory in form and substance to the Collateral Agent and Ethyl Asia) on
the Property of Ethyl Asia located in the countries of Australia and Singapore
and (ii) deliver such other documentation as the Collateral Agent may reasonably
request

                                       82
<PAGE>

in connection with the foregoing security interest, including without
limitation, favorable opinions of counsel, all in form, content and scope
reasonably satisfactory to the Collateral Agent.

     7.17  Old Town Farm.
           -------------

     On or before May 1, 2001, the Credit Parties shall either (a) sell the Old
Town Farm for an amount not less than $2.8 million and apply (or cause to be
applied) an amount equal to the Net Cash Proceeds of such Asset Disposition to
prepay the Loans in accordance with the terms of Section 3.3(b)(iii)(A) or (b)
provide the Collateral Agent with a first priority, perfected Lien in the Old
Town Farm and deliver such documentation as the Collateral Agent may request in
connection therewith (including, without limitation, a duly executed mortgage,
real estate title insurance policy and the other items (in form and substance
satisfactory to the Collateral Agent and its legal counsel) required to be
delivered pursuant to Section 5.1(e) with respect to real property.

                                   SECTION 8

                              NEGATIVE COVENANTS
                              ------------------

     Each Credit Party hereby covenants and agrees that, so long as this Credit
Agreement is in effect or any amounts payable hereunder or under any other
Credit Document shall remain outstanding or any Letter of Credit is outstanding,
and until all of the Commitments hereunder shall have terminated:

     8.1  Indebtedness.
          ------------

     The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Indebtedness, except:

          (a)  Indebtedness arising under this Credit Agreement and the other
     Credit Documents;

          (b)  Indebtedness of the Borrower and its Subsidiaries set forth in
     Schedule 8.1;
     ------------

          (c)  purchase money Indebtedness (including obligations in respect of
     Capital Leases or Synthetic Leases) of the Borrower or any of its
     Subsidiaries to finance the purchase of fixed assets provided that (i) the
                                                          --------
     total of all such Indebtedness for all such Persons taken together shall
     not exceed an aggregate principal amount of $6,600,000 at any one time
     outstanding; (ii) such Indebtedness when incurred shall not exceed the
     purchase price of the asset(s) financed; and (iii) no such Indebtedness
     shall be refinanced for a principal amount in excess of the principal
     balance outstanding thereon as of the Amendment Closing Date;

          (d)  obligations of the Borrower in respect of Hedging Agreements
     entered into in order to manage existing or anticipated interest rate or
     exchange rate risks and not for speculative purposes;

                                       83
<PAGE>

          (e)  intercompany Indebtedness permitted under Section 8.5;

          (f)  in addition to the Indebtedness otherwise permitted by this
     Section 8.1, Guaranty Obligations of any Guarantor with respect to any
     Indebtedness of the Borrower permitted under this Section 8.1;

          (g)  Indebtedness with respect to any Qualified Lease Financing;
     provided, that the Net Cash Proceeds received from any such Qualified Lease
     --------
     Financing are applied to the prepayment of the Loans in accordance with
     Section 3.3(b)(iv); and

          (h)  Indebtedness with respect to any Qualified Asset-Based Financing;
     provided that the Net Cash Proceeds received from any such Qualified Asset-
     --------
     Based Financing are applied to the prepayment of the Loans in accordance
     with the terms of Section 3.3(b)(iv).

     8.2  Liens.
          -----

     The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Lien with respect to any of its
Property, whether now owned or after acquired, except for:

          (a)  Liens in favor of the Collateral Agent to secure the Credit Party
     Obligations;

          (b)  Liens (other than Liens created or imposed under ERISA) for
     taxes, assessments or governmental charges or levies not yet due and
     payable or Liens for taxes being contested in good faith by appropriate
     proceedings for which adequate reserves determined in accordance with GAAP
     have been established (and as to which the Property subject to any such
     Lien is not yet subject to foreclosure, sale or loss on account thereof);

          (c)  statutory Liens of landlords and Liens of carriers, warehousemen,
     mechanics, materialmen and suppliers and other Liens imposed by law or
     pursuant to customary reservations or retentions of title arising in the
     ordinary course of business, provided that such Liens secure only amounts
                                  --------
     not yet due and payable or, if due and payable, are unfiled and no other
     action has been taken to enforce the same or are being contested in good
     faith by appropriate proceedings for which adequate reserves determined in
     accordance with GAAP have been established (and as to which the Property
     subject to any such Lien is not yet subject to foreclosure, sale or loss on
     account thereof);

          (d)  Liens (other than Liens created or imposed under ERISA) incurred
     or deposits made by any Consolidated Party in the ordinary course of
     business in connection with workers' compensation, unemployment insurance
     and other types of social security, or to secure the performance of
     tenders, statutory obligations, bids, leases, government contracts,
     performance and return-of-money bonds and other similar obligations
     (exclusive of obligations for the payment of borrowed money);

          (e)  Liens in connection with attachments or judgments (including
     judgment or appeal bonds) provided that the judgments secured shall, within
                               --------
     30 days after the entry

                                       84
<PAGE>

     thereof, have been discharged or execution thereof stayed pending appeal,
     or shall have been discharged within 30 days after the expiration of any
     such stay;

          (f)  easements, rights-of-way, restrictions (including zoning
     restrictions), minor defects or irregularities in title and other similar
     charges or encumbrances not, in any material respect, impairing the use of
     the encumbered Property for its intended purposes;

          (g)  Liens on Property of any Person securing purchase money
     Indebtedness (including Capital Leases and Synthetic Leases) of such Person
     permitted under Section 8.1(c), provided that any such Lien attaches to
                                     --------
     such Property concurrently with or within 90 days after the acquisition
     thereof;

          (h)  leases or subleases granted to others not interfering in any
     material respect with the business of any Consolidated Party;

          (i)  any interest of title of a lessor under, and Liens arising from
     UCC financing statements (or equivalent filings, registrations or
     agreements in foreign jurisdictions) relating to, leases permitted by this
     Credit Agreement;

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

          (k)  Liens deemed to exist in connection with Investments in
     repurchase agreements permitted under Section 8.5;

          (l)  normal and customary rights of setoff upon deposits of cash in
     favor of banks or other depository institutions;

          (m)  Liens of a collection bank arising under Section 4-210 of the
     Uniform Commercial Code on items in the course of collection;

          (n)  Liens of sellers of goods to the Borrower and any of its
     Subsidiaries arising under Article 2 of the Uniform Commercial Code or
     similar provisions of applicable law in the ordinary course of business,
     covering only the goods sold and securing only the unpaid purchase price
     for such goods and related expenses;

          (o)  Liens on accounts receivable or inventory of any Credit Party in
     connection with any Qualified Asset-Based Financing but only to the extent
     that any such Lien relates only to the applicable accounts receivable or
     inventory actually conveyed, contributed or provided as security with
     respect to such Qualified Asset-Based Financing; provided, that, any such
                                                      --------
     Qualified Asset-Based Financing is consummated on or before September 30,
     2001;

          (p)  (i) Liens on the Research and Development Facility in connection
     with any Qualified Lease Financing secured by the Research and Development
     Facility and (ii) Liens on the equipment located at the Research and
     Development Facility in

                                       85
<PAGE>

     connection with any Qualified Lease Financing secured by such equipment;
     provided, that, any such Qualified Lease Financing is consummated on or
     --------
     before September 30, 2001;

          (q)  Liens on the B Collateral securing the Indebtedness under the
     Senior Note Indenture permitted under Section 8.1(b);

          (r)  Liens on cash in favor of Bank of America to secure the letters
     of credit issued by Bank of America identified on Schedule 8.1;
                                                       ------------

          (s)  Liens on cash in an amount not to exceed $325,000 in favor of
     Bank One, NA (Main Office - Chicago) to secure the credit card program
     provided by Bank One, NA (Main Office - Chicago) and described on Schedule
                                                                       --------
     8.1; and
     ---

          (t)  Liens existing as of the Amendment Closing Date and set forth on
     Schedule 8.2; provided that (i) no such Lien shall at any time be extended
     ------------  --------
     to or cover any Property other than the Property subject thereto on the
     Amendment Closing Date and (ii) the principal amount of the Indebtedness
     secured by such Liens shall not be extended, renewed, refunded or
     refinanced.

     8.3  Consolidation, Merger, Dissolution, etc.
          ---------------------------------------

     Except in connection with a Permitted Asset Disposition, the Credit Parties
will not permit any Consolidated Party to enter into any transaction of merger
or consolidation or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution); provided that, notwithstanding the foregoing
                             --------
provisions of this Section 8.3 but subject to the terms of Sections 7.12 and
7.13, (a) the Borrower may merge or consolidate with any of its Subsidiaries
provided that the Borrower shall be the continuing or surviving corporation, (b)
--------
any Credit Party other than the Borrower may merge or consolidate with any other
Credit Party other than the Borrower, (c) any Consolidated Party which is not a
Credit Party may be merged or consolidated with or into any Credit Party
provided that such Credit Party shall be the continuing or surviving
--------
corporation, (d) any Consolidated Party which is not a Credit Party may be
merged or consolidated with or into any other Consolidated Party which is not a
Credit Party, (e) any Subsidiary of the Borrower may merge with any Person that
is not a Credit Party in connection with an Asset Disposition permitted under
Section 8.4 and (f) any Wholly Owned Subsidiary of the Borrower may dissolve,
liquidate or wind up its affairs at any time provided that such dissolution,
liquidation or winding up, as applicable, could not reasonably be expected to
have a Material Adverse Effect.

     8.4  Asset Dispositions.
          ------------------

     The Credit Parties will not permit any Consolidated Party to make any Asset
Disposition other than an Excluded Asset Disposition unless (a) the
consideration paid in connection therewith shall be cash or Cash Equivalents
payment to be contemporaneous with consummation of transaction and shall be in
an amount not less than the fair market value of the Property disposed of, (b)
if such transaction is a Sale and Leaseback Transaction, such transaction is not
prohibited by the terms of Section 8.12, (c) such transaction does not involve
the sale or other disposition of a

                                       86
<PAGE>

minority equity interest in any Consolidated Party, (d) such transaction does
not involve a sale or other disposition of receivables other than receivables
owned by or attributable to other Property concurrently being disposed of in a
transaction otherwise permitted under this Section 8.4, (e) no later than five
(5) Business Days prior to such Asset Disposition, the Borrower shall have
delivered to the Administrative Agent (i) a Pro Forma Compliance Certificate
demonstrating that, upon giving effect on a Pro Forma Basis to such transaction,
the Credit Parties would be in compliance with the financial covenants set forth
in Section 7.1 (a)-(c) and (ii) a certificate of an Executive Officer of the
Borrower specifying the anticipated date of such Asset Disposition, briefly
describing the assets to be sold or otherwise disposed of and setting forth the
net book value of such assets, the aggregate consideration and the Net Cash
Proceeds to be received for such assets in connection with such Asset
Disposition and (f) the Credit Parties shall, upon consummation of such Asset
Disposition, apply (or cause to be applied) an amount equal to the Net Cash
Proceeds of such Asset Disposition to prepay the Loans in accordance with the
terms of Section 3.3(b)(iii)(A).

     Upon a sale of assets or the sale of Capital Stock of a Consolidated Party
permitted by this Section 8.4, the Collateral Agent shall (to the extent
applicable) deliver to the Credit Parties, upon the Credit Parties' request and
at the Credit Parties' expense, such documentation as is reasonably necessary to
evidence the release of the Collateral Agent's security interest, if any, in
such assets or Capital Stock, including, without limitation, amendments or
terminations of UCC financing statements, if any, the return of stock
certificates, if any, and the release of such Consolidated Party from all of its
obligations, if any, under the Credit Documents.

     8.5  Investments.
          -----------

     The Credit Parties will not permit any Consolidated Party to make any
Investments, except for:

          (a)  Investments consisting of cash and Cash Equivalents;

          (b)  Investments consisting of accounts receivable created, acquired
     or made by any Consolidated Party in the ordinary course of business and
     payable or dischargeable in accordance with customary trade terms;

          (c)  Investments consisting of Capital Stock, obligations, securities
     or other property received by any Consolidated Party in settlement of
     accounts receivable (created in the ordinary course of business) from
     bankrupt obligors;

          (d)  Investments existing as of the Amendment Closing Date and set
     forth in Schedule 8.5;
              ------------

          (e)  Investments consisting of advances or loans to agents, customers
     or suppliers in the ordinary course of business that do not exceed
     $2,000,000 in the aggregate at any one time outstanding;

          (f)  Investments consisting of advances or loans to directors,
     officers or employees in connection with the Borrower's currently existing
     benefits program; provided
                       --------

                                       87
<PAGE>

     that the total of all such Investments shall not exceed $2,000,000 in the
     aggregate at any one time outstanding.

          (g)  Investments in any Credit Party; or

          (h)  (i) Investments in Foreign Subsidiaries existing as of the
     Amendment Closing Date in an aggregate principal amount not to exceed
     $87,000,000 and (ii) additional Investments in Foreign Subsidiaries
     subsequent to the Amendment Closing Date in an aggregate principal amount
     not to exceed $3,000,000 at any one time.

     8.6  Restricted Payments.
          -------------------

     The Credit Parties will not permit any Consolidated Party to, directly or
indirectly, declare, order, make or set apart any sum for or pay any Restricted
Payment, except (a) to make dividends or other distributions payable to any
Credit Party (directly or indirectly through Subsidiaries) and (b) as permitted
by Section 8.5, Section 8.7 or Section 8.8.

     8.7  Other Indebtedness.
          -------------------

     The Credit Parties will not permit any Consolidated Party to (i) after the
issuance thereof, amend or modify any of the terms of any Indebtedness of such
Consolidated Party if such amendment or modification would add or change any
terms in a manner adverse to such Consolidated Party, or shorten the final
maturity or average life to maturity or require any payment to be made sooner
than originally scheduled or increase the interest rate applicable thereto, or
(ii) make (or give any notice with respect thereto) any voluntary or optional
payment or prepayment or redemption or acquisition for value of (including
without limitation, by way of depositing money or securities with the trustee
with respect thereto before due for the purpose of paying when due), refund,
refinance or exchange of any other Indebtedness of such Consolidated Party.
Notwithstanding the foregoing, the Credit Parties may prepay the Indebtedness
evidenced by the Senior Note Indenture and identified on Schedule 8.1 if such
                                                         ------------
prepayment is deemed necessary (in the sole discretion of the Administrative
Agent and its counsel) to consummate any Qualified Lease Financing or any
Qualified Asset-Based Financing.

     8.8  Transactions with Affiliates.
          ----------------------------

     Except as set forth on Schedule 8.8, the Credit Parties will not permit any
                            ------------
Consolidated Party to enter into or permit to exist any transaction or series of
transactions with any officer, director, shareholder, Subsidiary or Affiliate of
such Person other than (a) advances of working capital to any Credit Party, (b)
transfers of cash and assets to any Credit Party, (c) transactions expressly
permitted by Section 8.1, Section 8.3, Section 8.4, Section 8.5, or Section 8.6,
(d) normal compensation, expense, reimbursement and other benefit arrangements
for officers and directors and (e) except as otherwise specifically limited in
this Credit Agreement, other transactions which are entered into in the ordinary
course of such Person's business on terms and conditions substantially as
favorable to such Person as would be obtainable by it in a comparable arms-
length transaction with a Person other than an officer, director, shareholder,
Subsidiary or Affiliate.

                                       88
<PAGE>

     8.9    Fiscal Year; Organizational Documents.
            -------------------------------------

     The Credit Parties will not permit any Consolidated Party (a) to change its
fiscal year or (b) amend, modify or change its articles of incorporation (or
corporate charter or other similar organizational document) or bylaws (or other
similar document) if such change would adversely affect the Banks.

     8.10   Limitation on Restricted Actions.
            --------------------------------

     The Credit Parties will not permit any Consolidated Party to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective any
encumbrance or restriction on the ability of any such Person to (a) pay
dividends or make any other distributions to any Credit Party on its Capital
Stock or with respect to any other interest or participation in, or measured by,
its profits, (b) pay any Indebtedness or other obligation owed to any Credit
Party, (c) make loans or advances to any Credit Party, (d) sell, lease or
transfer any of its properties or assets to any Credit Party, or (e) act as a
Credit Party and pledge its assets pursuant to the Credit Documents or any
renewals, refinancings, exchanges, refundings or extension thereof, except (in
respect of any of the matters referred to in clauses (a)-(d) above) for such
encumbrances or restrictions existing under or by reason of (i) this Credit
Agreement and the other Credit Documents, (ii) the Senior Note Indenture and the
Senior Notes, in each case as in effect as of the Amendment Closing Date, (iii)
applicable law, (iv) any document or instrument governing Indebtedness incurred
pursuant to Section 8.1(c), provided that any such restriction contained therein
                            --------
relates only to the asset or assets constructed or acquired in connection
therewith, (v) any Permitted Lien or any document or instrument governing any
Permitted Lien, provided that any such restriction contained therein relates
                --------
only to the asset or assets subject to such Permitted Lien or (vi) customary
restrictions and conditions contained in any agreement relating to the sale of
any Property permitted under Section 8.4 pending the consummation of such sale.

     8.11   Ownership of Subsidiaries; Limitations on Parent.
            ------------------------------------------------

     Notwithstanding any other provisions of this Credit Agreement to the
contrary, the Credit Parties will not permit any Consolidated Party to (i)
permit any Person (other than the Borrower or any Wholly Owned Subsidiary of the
Borrower) to own any Capital Stock of any Subsidiary of the Borrower, except (A)
to qualify directors where required by applicable law or to satisfy other
requirements of applicable law with respect to the ownership of Capital Stock of
Foreign Subsidiaries or (B) as a result of or in connection with a dissolution,
merger, consolidation or disposition of a Subsidiary not prohibited by Section
8.3 or Section 8.4, (ii) permit any Subsidiary of the Borrower to issue or have
outstanding any shares of preferred Capital Stock or (iii) permit, create,
incur, assume or suffer to exist any Lien on any Capital Stock of any Subsidiary
of the Borrower, except for Permitted Liens.

     8.12   Sale Leasebacks.
            ---------------

     Except as set forth on Schedule 8.12, the Credit Parties will not permit
                            -------------
any Consolidated Party to enter into any Sale and Leaseback Transaction.

                                       89
<PAGE>

     8.13   Capital Expenditures.
            --------------------

     The Credit Parties will not permit Consolidated Capital Expenditures for
any fiscal year to exceed $15,000,000.

     8.14   No Further Negative Pledges.
            ---------------------------

     The Credit Parties will not permit any Consolidated Party to enter into,
assume or become subject to any agreement prohibiting or otherwise restricting
the existence of any Lien upon any of its Property in favor of the
Administrative Agent (for the benefit of the Banks) for the purpose of securing
the Credit Party Obligations, whether now owned or hereafter acquired, or
requiring the grant of any security for any obligation if such Property is given
as security for the Credit Party Obligations, except (a) in connection with any
document or instrument governing Indebtedness incurred pursuant to Section
8.1(c), provided that any such restriction contained therein relates only to the
        --------
asset or assets constructed or acquired in connection therewith, (b) in
connection with any Permitted Lien or any document or instrument governing any
Permitted Lien, provided that any such restriction contained therein relates
                --------
only to the asset or assets subject to such Permitted Lien and (c) pursuant to
customary restrictions and conditions contained in any agreement relating to the
sale of any Property permitted under Section 8.4, pending the consummation of
such sale.

     8.15   Operating Lease Obligations.
            ---------------------------

     The Credit Parties will not permit any Consolidated Party to enter into,
assume or permit to exist any obligations for the payment of rental under
Operating Leases which in the aggregate for all such Persons would exceed
$22,000,000 for any fiscal year.

                                   SECTION 9

                               EVENTS OF DEFAULT
                               -----------------

     9.1    Events of Default.
            -----------------

     An Event of Default shall exist upon the occurrence and during the
continuance of any of the following specified events (each an "Event of
                                                               --------
Default"):
-------

            (a)  Payment.  Any Credit Party shall
                 -------

                 (i)     default in the payment when due of any principal of any
            of the Loans or of any reimbursement obligations arising from
            drawings under Letters of Credit, or

                 (ii)    default, and such default shall continue for three (3)
            or more Business Days, in the payment when due of any interest on
            the Loans or on any reimbursement obligations arising from drawings
            under Letters of Credit, or of any

                                       90
<PAGE>

            Fees or other amounts owing hereunder, under any of the other Credit
            Documents or in connection herewith or therewith; or

            (b)  Representations.  Any representation, warranty or statement
                 ---------------
     made or deemed to be made by any Credit Party herein, in any of the other
     Credit Documents, or in any statement or certificate delivered or required
     to be delivered pursuant hereto or thereto shall prove untrue in any
     material respect on the date as of which it was deemed to have been made;
     or

            (c)  Covenants.  Any Credit Party shall
                 ---------

                 (i)     default in the due performance or observance of any
            term, covenant or agreement contained in Sections 7.2, 7.9, 7.11,
            7.12, 7.13, 7.15, 7.16 or 7.17 or Section 8;

                 (ii)    default in the due performance or observance of any
            term, covenant or agreement contained in Sections 7.1(a), (b), (c)
            or (d) and such default shall continue unremedied for a period of at
            least 5 days after the earlier of an Executive Officer of a Credit
            Party becoming aware of such default or written notice thereof by
            the Administrative Agent; or

                 (iii)   default in the due performance or observance by it of
            any term, covenant or agreement (other than those referred to in
            subsections (a), (b), (c)(i) or (c)(ii) of this Section 9.1)
            contained in this Credit Agreement or any other Credit Document and
            such default shall continue unremedied for a period of at least 30
            days after the earlier of an Executive Officer of a Credit Party
            becoming aware of such default or written notice thereof by the
            Administrative Agent; or

            (d)  Other Credit Documents.  Except as a result of or in connection
                 ----------------------
     with a dissolution, merger or disposition of a Subsidiary not prohibited by
     Section 8.3 or Section 8.4, any Credit Document shall fail to be in full
     force and effect or to give the Administrative Agent, the Collateral Agent
     and/or the Banks the Liens, rights, powers and privileges purported to be
     created thereby, or any Credit Party shall so state in writing; or

            (e)  Guaranties.  Except as the result of or in connection with a
                 ----------
     dissolution, merger or disposition of a Subsidiary not prohibited by
     Section 8.3 or Section 8.4, the guaranty given by any Guarantor hereunder
     (including any Person after the Amendment Closing Date in accordance with
     Section 7.12) or any provision thereof shall cease to be in full force and
     effect, or any Guarantor (including any Person after the Amendment Closing
     Date in accordance with Section 7.12) hereunder or any Person acting by or
     on behalf of such Guarantor shall deny or disaffirm such Guarantor's
     obligations under such guaranty, or any Guarantor shall default in the due
     performance or observance of any term, covenant or agreement on its part to
     be performed or observed pursuant to any guaranty; or

            (f)  Bankruptcy, etc.  Any Bankruptcy Event shall occur with respect
                 ---------------
     to any Consolidated Party; or

                                       91
<PAGE>

            (g)  Defaults under Other Agreements.
                 -------------------------------

                 (i)     Any Consolidated Party shall default in the performance
            or observance (beyond the applicable grace period with respect
            thereto, if any) of any material obligation or condition of any
            contract or lease material to the Consolidated Parties taken as a
            whole if such default, alone or together with other such defaults,
            could reasonably be expected to have a Material Adverse Effect; or

                 (ii)    With respect to any Indebtedness (other than
            Indebtedness outstanding under this Credit Agreement) in excess of
            $5,000,000 in the aggregate for the Consolidated Parties taken as a
            whole, (A) either (1) default in any payment shall occur and
            continue (beyond the applicable grace period with respect thereto,
            if any) with respect to any such Indebtedness, or (2) a default in
            the observance or performance relating to such Indebtedness or
            contained in any instrument or agreement evidencing, securing or
            relating thereto, or any other event or condition shall occur or
            exist, the effect of which default or other event or condition is to
            cause, or permit, the holder or holders of such Indebtedness (or
            trustee or agent on behalf of such holders) to cause (determined
            without regard to whether any notice or lapse of time is required),
            any such Indebtedness to become due prior to its stated maturity; or
            (B) any such Indebtedness shall be declared due and payable, or
            required to be prepaid other than by a regularly scheduled required
            prepayment, prior to the stated maturity thereof; or

            (h)  Judgments.  One or more judgments or decrees shall be entered
                 ---------
     against one or more of the Consolidated Parties involving a liability of
     $5,000,000 or more over and above any applicable deductible in the
     aggregate (to the extent not paid or fully covered by insurance provided by
     a carrier who has acknowledged coverage and has the ability to perform) and
     any such judgments or decrees shall not have been vacated, discharged or
     stayed or bonded pending appeal within 30 days from the entry thereof; or

            (i)  ERISA.  Any of the following events or conditions, if such
                 -----
     event or condition could involve possible taxes, penalties, and other
     liabilities in an aggregate amount in excess of $5,000,000: (i) any
     "accumulated funding deficiency," as such term is defined in Section 302 of
     ERISA and Section 412 of the Code, whether or not waived, shall exist with
     respect to any Plan, or any lien shall arise on the assets of any
     Consolidated Party or any ERISA Affiliate in favor of the PBGC or a Plan;
     (ii) an ERISA Event shall occur with respect to a Single Employer Plan,
     which results in the termination of such Plan for purposes of Title IV of
     ERISA; (iii) an ERISA Event shall occur with respect to a Multiemployer
     Plan or Multiple Employer Plan, which results in (A) the termination of
     such Plan for purposes of Title IV of ERISA, or (B) any Consolidated Party
     or any ERISA Affiliate incurring any liability in connection with a
     withdrawal from, reorganization of (within the meaning of Section 4241 of
     ERISA), or insolvency (within the meaning of Section 4245 of ERISA) of such
     Plan; or (iv) any prohibited transaction (within the meaning of Section 406
     of ERISA or Section 4975 of the Code) or breach of fiduciary responsibility
     shall occur which subjects any Consolidated Party or any ERISA Affiliate to
     any liability

                                       92
<PAGE>

     under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the
     Code, or under any agreement or other instrument pursuant to which any
     Consolidated Party or any ERISA Affiliate has agreed or is required to
     indemnify any person against any such liability; or

            (j)  Senior Note Indenture.  There shall occur and be continuing any
                 ---------------------
     "Event of Default" under, and as defined in, the Senior Note Indenture; or

            (k)  Ownership.  There shall occur a Change of Control.
                 ---------

     9.2    Acceleration; Remedies.
            ----------------------

     Upon the occurrence and during the continuance of an Event of Default, the
Administrative Agent or the Collateral Agent, as applicable, may or, upon the
request and direction of the Required Banks, shall, by written notice to the
Credit Parties take any of the following actions:

            (a)  Termination of Commitments.  Declare the Commitments terminated
                 --------------------------
     whereupon the Commitments shall be immediately terminated.

            (b)  Acceleration.  Declare the unpaid Credit Party Obligations to
                 ------------
     be due, whereupon the same shall be immediately due and payable without
     presentment, demand, protest or other notice of any kind, all of which are
     hereby waived by the Credit Parties.

            (c)  Cash Collateral.  Direct the Borrower to pay (and the Borrower
                 ---------------
     hereby promises to pay, upon receipt of such notice) to the Collateral
     Agent additional cash, to be held by the Collateral Agent, for the benefit
     of the Banks, in a cash collateral account as additional security for the
     LOC Obligations in respect of subsequent drawings under all then
     outstanding Letters of Credit in an amount equal to the maximum aggregate
     amount which may be drawn under all Letters of Credits then outstanding.

            (d)  Enforcement of Rights.  Enforce any and all rights and
                 ---------------------
     interests created and existing under the Credit Documents including,
     without limitation, all rights and remedies existing under the Collateral
     Documents, all rights and remedies against a Guarantor and all rights of
     set-off.

     Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(f) shall occur with respect to the Borrower, then, without the giving of any
notice or other action by the Administrative Agent or the Banks, (i) the
Commitments automatically shall terminate, (ii) all of the outstanding Credit
Party Obligations automatically shall immediately become due and payable and
(iii) the Borrower automatically shall be obligated (and hereby promises) to pay
to the Collateral Agent additional cash, to be held by the Collateral Agent, for
the benefit of the Banks, in a cash collateral account as additional security
for the LOC Obligations in respect of subsequent drawings under all then
outstanding Letters of Credit in an amount equal to the maximum aggregate amount
which may be drawn under all Letters of Credits then outstanding.

                                       93
<PAGE>

                                  SECTION 10

                               AGENCY PROVISIONS
                               -----------------

     10.1   Appointment and Authorization of Administrative Agent and Collateral
            --------------------------------------------------------------------
            Agent.
            -----

     (a)    Each Bank hereby irrevocably (subject to Section 10.9) appoints,
designates and authorizes Bank of America as the Administrative Agent and the
Collateral Agent to take such action on its behalf under the provisions of this
Credit Agreement and each other Credit Document and to exercise such powers and
perform such duties as are expressly delegated to it by the terms of this Credit
Agreement or any other Credit Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Credit Document, neither the
Administrative Agent nor the Collateral Agent shall have any duties or
responsibilities, except those expressly set forth herein, nor shall the
Administrative Agent or the Collateral Agent have or be deemed to have any
fiduciary relationship with any Bank or participant, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Credit Agreement or any other Credit Document or otherwise exist
against the Administrative Agent or the Collateral Agent. Without limiting the
generality of the foregoing sentence, the use of the term "agent" herein and in
the other Credit Documents with reference to the Administrative Agent or the
Collateral Agent, as applicable, is not intended to connote any fiduciary or
other implied (or express) obligations arising under agency doctrine of any
applicable law. Instead, such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship between
independent contracting parties.

     (b)    The Issuing Lender shall act on behalf of the Banks with respect to
any Letters of Credit issued by it and the documents associated therewith until
such time (and except for so long) as the Administrative Agent may agree at the
request of the Required Banks to act for the Issuing Lender with respect
thereto; provided, however, that the Issuing Lender shall have all of the
         --------  -------
benefits and immunities (i) provided to the Administrative Agent in this Article
                                                                         -------
IX with respect to any acts taken or omissions suffered by the Issuing Lender in
--
connection with Letters of Credit issued by it or proposed to be issued by it
and the application and agreements for letters of credit pertaining to the
Letters of Credit as fully as if the term "Administrative Agent" as used in this
Article IX included the Issuing Lender with respect to such acts or omissions,
----------
and (ii) as additionally provided herein with respect to the Issuing Lender.

     10.2   Delegation of Duties.
            --------------------

                                       94
<PAGE>

     The Administrative Agent and the Collateral Agent may execute any of its
duties under this Credit Agreement or any other Credit Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel and other consultants or experts concerning all matters pertaining to
such duties. The Administrative Agent and the Collateral Agent shall not be
responsible for the negligence or misconduct of any agent or attorney-in-fact
that it selects in the absence of gross negligence or willful misconduct.

     10.3   Liability of Administrative Agent.
            ---------------------------------

     No Agent-Related Person shall (a) be liable for any action taken or omitted
to be taken by any of them under or in connection with this Credit Agreement or
any other Credit Document or the transactions contemplated hereby (except for
its own gross negligence or willful misconduct in connection with its duties
expressly set forth herein), or (b) be responsible in any manner to any Bank or
participant for any recital, statement, representation or warranty made by any
Credit Party or any officer thereof, contained herein or in any other Credit
Document, or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent or the Collateral
Agent under or in connection with, this Credit Agreement or any other Credit
Document, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Credit Agreement or any other Credit Document, or for any
failure of any Credit Party or any other party to any Credit Document to perform
its obligations hereunder or thereunder.  No Agent-Related Person shall be under
any obligation to any Bank or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Credit Agreement or any other Credit Document, or to inspect the
properties, books or records of any Credit Party or any Affiliate thereof.

     10.4   Reliance by Administrative Agent and the Collateral Agent.
            ---------------------------------------------------------

     (a)    The Administrative Agent and the Collateral Agent shall be entitled
to rely, and shall be fully protected in relying, upon any writing,
communication, signature, resolution, representation, 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 any Credit
Party), independent accountants and other experts selected by the Administrative
Agent or the Collateral Agent, as applicable. The Administrative Agent and the
Collateral Agent shall be fully justified in failing or refusing to take any
action under any Credit Document unless it shall first receive such advice or
concurrence of the Required Banks as it deems appropriate and, if it so
requests, it shall first be indemnified to its satisfaction by the Banks against
any and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action. The Administrative Agent and the
Collateral Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Credit Agreement or any other Credit Document
in accordance with a request or consent of the Required Banks or all the Banks,
if required hereunder, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Banks and participants. Where
this Credit Agreement expressly permits or prohibits an action unless the
Required Banks otherwise determine, the Administrative Agent or the Collateral
Agent, as applicable, shall, and in all other instances, the Administrative
Agent or the Collateral Agent, as

                                      95
<PAGE>

applicable, may, but shall not be required to, initiate any solicitation for the
consent or a vote of the Banks.

     (b)    For purposes of determining compliance with the conditions specified
in Section 5.1, each Bank that has signed this Credit Agreement shall be deemed
to have consented to, approved or accepted or to be satisfied with, each
document or other matter either sent by the Administrative Agent or the
Collateral Agent to such Bank for consent, approval, acceptance or satisfaction,
or required thereunder to be consented to or approved by or acceptable or
satisfactory to a Bank.

     10.5   Notice of Default.
            -----------------

     The Administrative Agent and the Collateral 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 Administrative Agent for the account of the Banks,
unless the Administrative Agent or the Collateral Agent, as applicable, shall
have received written notice from a Bank or the Borrower referring to this
Credit Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default."  The Administrative Agent or the
Collateral Agent, as applicable, will notify the Banks of its receipt of any
such notice.  The Administrative Agent or the Collateral Agent, as applicable,
shall take such action with respect to such Default or Event of Default as may
be directed by the Required Banks in accordance with Section 10; provided,
                                                                 --------
however, that unless and until the Administrative Agent or the Collateral Agent,
-------
as applicable, has received any such direction, the Administrative Agent or the
Collateral Agent, as applicable, 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
Banks.

     10.6   Credit Decision; Disclosure of Information by Administrative Agent.
            ------------------------------------------------------------------

     Each Bank acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent or
the Collateral Agent hereinafter taken, including any consent to and acceptance
of any assignment or review of the affairs of any Credit Party or any Affiliate
thereof, shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Bank as to any matter, including whether Agent-
Related Persons have disclosed material information in their possession.  Each
Bank represents to the Administrative Agent and the Collateral 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 the Credit
Parties and their respective Subsidiaries, and all applicable bank or other
regulatory Laws relating to the transactions contemplated hereby, and made its
own decision to enter into this Credit Agreement and to extend credit to the
Borrower and the other Credit Parties hereunder.  Each Bank 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 Credit Agreement and the other Credit
Documents, and to make such investigations as it deems

                                       96
<PAGE>

necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of the Borrower and the other
Credit Parties. Except for notices, reports and other documents expressly
required to be furnished to the Banks by the Administrative Agent or the
Collateral Agent, as applicable, herein, the Administrative Agent and the
Collateral Agent shall not have any duty or responsibility to provide any Bank
with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of any
of the Credit Parties or any of their respective Affiliates which may come into
the possession of any Agent-Related Person.

     10.7   Indemnification of Administrative Agent and the Collateral Agent.
            ----------------------------------------------------------------

     Whether or not the transactions contemplated hereby are consummated, the
Banks shall indemnify upon demand each Agent-Related Person (to the extent not
reimbursed by or on behalf of any Credit Party and without limiting the
obligation of any Credit Party to do so), pro rata, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Bank shall be liable for the payment
                --------  -------
to any Agent-Related Person of any portion of such Indemnified Liabilities
resulting from such Person's gross negligence or willful misconduct; provided,
                                                                     --------
however, that no action taken in accordance with the directions of the Required
-------
Banks shall be deemed to constitute gross negligence or willful misconduct for
purposes of this Section.  Without limitation of the foregoing, each Bank shall
reimburse the Administrative Agent and the Collateral Agent upon demand for its
ratable share of any reasonable costs or out-of-pocket expenses (including
reasonable attorneys' fees and expenses) incurred by the Administrative Agent or
the Collateral Agent, as applicable, 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 Credit Agreement,
any other Credit Document, or any document contemplated by or referred to
herein, to the extent that the Administrative Agent or the Collateral Agent, as
applicable, is not reimbursed for such expenses by or on behalf of the Borrower.
The undertaking in this Section shall survive termination of the Commitments,
the payment of all Credit Party Obligations hereunder and the resignation or
replacement of the Administrative Agent or the Collateral Agent, as applicable.

     10.8   Administrative Agent and Collateral Agent in their Individual
            -------------------------------------------------------------
            Capacities.
            ----------

     Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Credit Parties and their respective
Affiliates as though Bank of America were not the Administrative Agent, the
Collateral Agent or the Issuing Lender hereunder and without notice to or
consent of the Banks.  The Banks acknowledge that, pursuant to such activities,
Bank of America or its Affiliates may receive information regarding any Credit
Party or its Affiliates (including information that may be subject to
confidentiality obligations in favor of such Credit Party or such Affiliate) and
acknowledge that the Administrative Agent and the Collateral Agent shall be
under no obligation to provide such information to them.  With respect to its
Loans, Bank of America shall have the same rights and powers under this Credit
Agreement as any other Bank and may exercise such rights and powers as though it
were not the Administrative Agent, the Collateral Agent or the

                                       97
<PAGE>

Issuing Lender, and the terms "Bank" and "Banks" include Bank of America in its
individual capacity.

     10.9   Successor Administrative Agent and Collateral Agent.
            ---------------------------------------------------

     The Administrative Agent and the Collateral Agent may resign at any time by
giving notice thereof to the Banks and the Credit Parties.  Upon any such
resignation, the Required Banks shall have the right to appoint a successor
Administrative Agent or successor Collateral Agent, as applicable; provided,
                                                                   --------
however, that in the absence of any continuing Event of Default, such
-------
appointment of a successor Administrative Agent or successor Collateral Agent
shall be consented to by the Borrowers, which consent shall not be unreasonably
withheld. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations as Administrative Agent, as
appropriate, under this Credit Agreement and the other Credit Documents and the
provisions of this Section 10.9 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent under this
Credit Agreement. If no successor Administrative Agent has accepted appointment
as Administrative Agent within thirty (30) days after the retiring
Administrative Agent's giving notice of resignation, the retiring Administrative
Agent's resignation shall nevertheless become effective and the Banks shall
perform all duties of the Administrative Agent hereunder until such time, if
any, as the Required Banks appoint a successor Administrative Agent as provided
for above. Likewise, upon the acceptance of any appointment as Collateral Agent
hereunder by a successor, such successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Collateral Agent, and the retiring Collateral Agent shall be
discharged from its duties and obligations as Collateral Agent, as appropriate,
under this Credit Agreement and the other Credit Documents and the provisions of
this Section 10.9 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Collateral Agent under this Credit Agreement. If
no successor Collateral Agent has accepted appointment as Collateral Agent
within thirty (30) days after the retiring Collateral Agent's giving notice of
resignation, the retiring Collateral Agent's resignation shall nevertheless
become effective and the Banks shall perform all duties of the Collateral Agent
under the Collateral Documents until such time, if any, as the Required Banks
appoint a successor Collateral Agent as provided for above. Subject to the
foregoing terms of this Section 10.9, there shall at all times be a Person or
Persons serving as Administrative Agent and Collateral Agent hereunder.

                                  SECTION 11

                                 MISCELLANEOUS
                                 -------------

     11.1   Notices.
            -------

     Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (a) when
delivered, (b) when transmitted via telecopy (or other facsimile device) to the
number set out below, (c) the Business Day following the day on

                                       98
<PAGE>

which the same has been delivered prepaid (or pursuant to an invoice
arrangement) to a reputable national overnight air courier service, or (d) the
third Business Day following the day on which the same is sent by certified or
registered mail, postage prepaid, in each case to the respective parties at the
address, in the case of the Credit Parties and the Administrative Agent, set
forth below, and, in the case of the Banks, set forth on Schedule 2.1(a), or at
                                                         ---------------
such other address as such party may specify by written notice to the other
parties hereto:

     if to any Credit Party:

          Ethyl Corporation
          330 South Fourth Street
          Richmond, Virginia 23219
          Attn: Treasurer
          Telephone: (804) 788-5055
          Telecopy:  (804) 788-5435

     with a copy to:

          Ethyl Corporation
          330 South Fourth Street
          Richmond, Virginia 23219
          Attn: Rudy West
          Telephone: (804) 788-5619
          Telecopy:  (804) 788-5519

     if to the Administrative Agent (for payments and requests
     for extensions of credit):

          Bank of America, N. A.
          Independence Center, 15th Floor
          NC1-001-15-04
          101 North Tryon Street
          Charlotte, North Carolina 28255
          Attn: Agency Services
          Telephone: (704) 388-3917
          Telecopy:  (704) 409-0025

     if to the Administrative Agent (for all other notices)

          Bank of America, N.A.
          MailCode CA5-701-12-09
          1455 Market Street, 12/th/ Floor
          San Francisco, California 94103
          Attn: Charles Graber
          Telephone: (415) 436-3495
          Telecopy:  (415) 503-5006

                                       99
<PAGE>

     with a copy to:

             Bank of America, N. A.
             335 Madison Avenue, 5th Floor
             New York, New York 10017
             Attn: David Noda
             Telephone: (212) 503-7948
             Telecopy:  (212) 503-7878

     11.2    Sharing of Setoffs.
             ------------------

     If one or more Events of Default shall occur, the holder of any Loan shall
have the right, in addition to and not in limitation of any right which any such
holder may have under applicable law or otherwise, to set off against the unpaid
balance of any Loan or Loans or participation therein held by it any debt owing
to the Company by such holder, including, without limitation, any funds in any
deposit account maintained by the Company with such holder, and nothing in this
Agreement shall be deemed a waiver or prohibition of any Bank's right of
banker's lien or setoff. Each holder of a Loan agrees that, if it shall through
the exercise of a right of banker's lien, setoff, counterclaim or otherwise
obtain payment (voluntary or involuntary) in respect of any Loan or Loans as a
result of which the unpaid principal portion of its Loans shall be
proportionately less than the unpaid principal portion of the Loans of any other
Bank, it shall be deemed to have simultaneously purchased from such other holder
a participation in the Loan held by such other holder so that the aggregate
unpaid principal amount of the Loan or Loans and participations in Notes held by
each holder shall be in the same proportion to the aggregate unpaid principal
amount of all Loans then outstanding as the principal amount of such Loan held
by it prior to such exercise of banker's lien, setoff or counterclaim or receipt
of other payment was to the principal amount of all Loans outstanding prior to
such exercise of banker's lien, setoff or counterclaim or receipt of other
payment, and it shall promptly remit to each such holder the amount of the
participation thus deemed to have been purchased. The Company expressly consents
to the foregoing arrangements and agrees that any holder of a participation in a
Loan so acquired may exercise any and all rights of banker's lien, setoff,
counterclaim or otherwise with respect to any and all moneys owing by such
holder to the Company as fully as if such holder were a holder of a Loan in the
amount of such participation. If all or any portion of any such excess payment
is thereafter recovered from the holder which received the same, the purchase
provided for herein shall be deemed to have been rescinded to the extent of such
recovery, without interest.

     11.3    Benefit of Agreement.
             --------------------

     (a)     The provisions of this Credit Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Credit Party may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Bank (and any attempted assignment or transfer by the Borrower
without such consent shall be null and void). Nothing in this Credit Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto,

                                      100
<PAGE>

their respective successors and assigns permitted hereby and, to the extent
expressly contemplated hereby, the Indemnitees) any legal or equitable right,
remedy or claim under or by reason of this Credit Agreement.

     (b)    Any Bank may assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Credit Agreement (including all
or a portion of its Commitment and the Loans (including for purposes of this
subsection (b), participations in LOC Obligations) at the time owing to it);
provided that (i) except in the case of an assignment of the entire remaining
--------
amount of the assigning Bank's Commitment and the Loans at the time owing to it
or in the case of an assignment to a Bank or an Affiliate of a Bank or an
Approved Fund with respect to a Bank, any partial assignment shall not be less
than $2,000,000 (or, if less, the remaining amount of the Commitment being
assigned by such Bank) and an integral multiple of $100,000 in excess thereof,
unless each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such consent
not to be unreasonably withheld or delayed), (ii) (A) each such assignment by a
Bank of any portion of its Revolving Commitment and its Revolving Loans shall be
accompanied by an assignment of the same percentage of all of such Bank's Term
Loan and the same percentage of all of such Bank's New Term Loan, (B) each such
assignment by a Bank of any portion of its Term Loan shall be accompanied by an
assignment of the same percentage of all of such Bank's Revolving Commitment and
its Revolving Loans and the same percentage of all of such Bank's New Term Loan
and (C) each such assignment by a Bank of any portion of its New Term Loan shall
be accompanied by an assignment of the same percentage of all of such Bank's
Revolving Commitment and its Revolving Loans and the same percentage of all of
such Bank's Term Loan; and (iii) the parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Acceptance in the form
of Exhibit 11.3(b) (an "Assignment and Acceptance"), together with a processing
                        -------------------------
and recordation fee of $3,500.  Subject to acceptance and recording thereof by
the Administrative Agent pursuant to subsection (c) of this Section, from and
after the effective date specified in each Assignment and Acceptance, the
Eligible Assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Bank under this Credit Agreement, and the assigning Bank
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Credit Agreement (and,
in the case of an Assignment and Acceptance covering all of the assigning Bank's
rights and obligations under this Credit Agreement, such Bank shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections
3.6, 3.9, 3.11, 3.12 and 11.5).  Upon request, the Borrower (at its expense)
shall execute and deliver new or replacement Notes to the assigning Bank and the
assignee Bank.  Any assignment or transfer by a Bank of rights or obligations
under this Credit Agreement that does not comply with this subsection shall be
treated for purposes of this Credit Agreement as a sale by such Bank of a
participation in such rights and obligations in accordance with subsection (d)
of this Section.  If the assignee is not a United States person under Section
7701(a)(30) of the code, it shall deliver to the Borrower and the Administrative
Agent all forms and/or certificates as required under Section 3.11(d).

     (c)    The Administrative Agent, acting solely for this purpose as an agent
of the Borrower, shall maintain at the Agency Service Address a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the

                                      101
<PAGE>

Banks, and the Commitments of, and principal amount of the Loans and LOC
Obligations owing to, each Bank pursuant to the terms hereof from time to time
(the "Register"). The entries in the Register shall be conclusive, and the
      --------
Borrower, the Administrative Agent and the Banks may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Bank
hereunder for all purposes of this Credit Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower and
any Bank, at any reasonable time and from time to time upon reasonable prior
notice.

     (d) Any Bank may, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to one or more banks or other entities
(a "Participant") in all or a portion of such Bank's rights and/or obligations
    -----------
under this Credit Agreement (including all or a portion of its Commitment and/or
the Loans (including such Bank's participations in LOC Obligations) owing to
it); provided that (i) such Bank's obligations under this Credit Agreement shall
     --------
remain unchanged, (ii) such Bank shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the Borrower,
the Administrative Agent and the other Banks shall continue to deal solely and
directly with such Bank in connection with such Bank's rights and obligations
under this Credit Agreement. Any agreement or instrument pursuant to which a
Bank sells such a participation shall provide that such Bank shall retain the
sole right to enforce this Credit Agreement and to approve any amendment,
modification or waiver of any provision of this Credit Agreement; provided that
                                                                  --------
such agreement or instrument may provide that such Bank will not, without the
consent of the Participant, agree to any amendment, waiver or other modification
that would (i) postpone any date upon which any payment of money is scheduled to
be paid to such Participant, (ii) reduce the principal, interest, fees or other
amounts payable to such Participant or (iii) release all or substantially all of
the Guarantors from their obligations under the Credit Documents. Subject to
subsection (e) of this Section, the Borrower agrees that each Participant shall
be entitled to the benefits, and shall be subject to the requirements of
Sections 3.6 through 3.12, inclusive, to the same extent as if it were a Bank
and had acquired its interest by assignment pursuant to subsection (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 11.2 as though it were a Bank, provided such
                                                          --------
Participant agrees to be subject to Section 3.14 as though it were a Bank.

     (e) A Participant shall not be entitled to receive any greater payment
under Sections 3.6 through 3.12, inclusive, than the applicable Bank would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower's prior written consent. A Participant that is not a United
States person under Section 7701(a)(30) of the Code shall not be entitled to the
benefits of Section 3.11 unless the Borrower is notified of the participation
sold to such Participant and such Participant delivers to the Borrower and the
Administrative Agent all forms and/or certificates required by Section 3.11(d)
and agrees, for the benefit of the Borrower, to comply with Section 3.11(d) as
though it were a Bank.

     (f) Any Bank may at any time pledge or assign a security interest in all or
any portion of its rights under this Credit Agreement (including under its
Notes, if any) to secure obligations of such Bank, including any pledge or
assignment to secure obligations to a Federal Reserve

                                      102
<PAGE>

Bank; provided that no such pledge or assignment shall release a Bank from any
      --------
of its obligations hereunder or substitute any such pledgee or assignee for such
Bank as a party hereto.

     (g)  If the consent of the Borrower to an assignment or to an Eligible
Assignee is required hereunder (including a consent to an assignment which does
not meet the minimum assignment threshold specified in clause (i) of the proviso
to the first sentence of Section 11.3(b)), the Borrower shall be deemed to have
given its consent five Business Days after the date notice thereof has been
delivered by the assigning Bank (through the Administrative Agent) unless such
consent is expressly refused by the Borrower prior to such fifth Business Day.

     (h)  Notwithstanding anything to the contrary contained herein, if at any
time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, upon thirty (30) days' notice to the
Borrower and the Banks, resign as Issuing Lender. In the event of any such
resignation as Issuing Lender, the Borrower shall be entitled to appoint from
among the Banks a successor Issuing Lender hereunder; provided, however, that no
                                                      --------  -------
failure by the Borrower to appoint any such successor shall affect the
resignation of Bank of America as Issuing Lender. Bank of America shall retain
all the rights and obligations of the Issuing Lender hereunder with respect to
all Letters of Credit outstanding as of the effective date of its resignation as
Issuing Lender and all LOC Obligations with respect thereto (including the right
to require the Banks to make Base Rate Loans or fund participations in Letters
of Credit pursuant to Section 2.2(c)).

     11.4 No Waiver; Remedies Cumulative.
          ------------------------------

     No failure or delay on the part of the Administrative Agent, the Collateral
Agent or any Bank in exercising any right, power or privilege hereunder or under
any other Credit Document and no course of dealing between the Administrative
Agent, the Collateral Agent or any Bank and any of the Credit Parties shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, power or privilege hereunder or under any other Credit Document preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege hereunder or thereunder. The rights and remedies provided herein
are cumulative and not exclusive of any rights or remedies which the
Administrative Agent, the Collateral Agent or any Bank would otherwise have. No
notice to or demand on any Credit Party in any case shall entitle the Credit
Parties to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the Administrative Agent,
the Collateral Agent or the Banks to any other or further action in any
circumstances without notice or demand.

     11.5 Expenses; Indemnification.
          -------------------------

          (a) The Credit Parties jointly and severally agree to pay on demand
     all costs and expenses of the Administrative Agent and the Collateral Agent
     in connection with the syndication, preparation, execution, delivery,
     administration, modification, and amendment of this Credit Agreement, the
     other Credit Documents, and the other documents to be delivered hereunder,
     including, without limitation, the reasonable fees and expenses of counsel
     for the Administrative Agent and the Collateral Agent (including the cost
     of internal counsel) with respect thereto and with respect to advising the

                                      103
<PAGE>

     Administrative Agent and the Collateral Agent as to their rights and
     responsibilities under the Credit Documents. The Credit Parties further
     jointly and severally agree to pay on demand all costs and expenses of the
     Administrative Agent, the Collateral Agent and the Banks, if any
     (including, without limitation, reasonable attorneys' fees and expenses and
     the cost of internal counsel), in connection with any work-out or
     restructuring relating to the Credit Facilities or any enforcement (whether
     through negotiations, legal proceedings, or otherwise) of any of the Credit
     Documents.

          (b)  Whether or not the transactions contemplated hereby are
     consummated, the Borrower agrees to indemnify, save and hold harmless each
     Agent-Related Person, each Bank and their respective Affiliates, directors,
     officers, employees, counsel, agents and attorneys-in-fact (collectively
     the "Indemnitees") from and against: (a) any and all claims, demands,
          -----------
     actions or causes of action that are asserted against any Indemnitee by any
     Person (other than the Administrative Agent, the Collateral Agent or any
     Bank) relating directly or indirectly to a claim, demand, action or cause
     of action that such Person asserts or may assert against any Credit Party,
     any Affiliate of any Credit Party or any of their respective officers or
     directors; (b) any and all claims, demands, actions or causes of action
     that may at any time (including at any time following repayment of Credit
     Parties and the resignation or removal of the Administrative Agent or the
     Collateral Agent, as applicable, or the replacement of any Bank) be
     asserted or imposed against any Indemnitee, arising out of or relating to,
     the Credit Documents, any predecessor loan documents, the Commitments, the
     use or contemplated use of the proceeds of any Loan or Letter of Credit, or
     the relationship of any Credit Party, the Administrative Agent, the
     Collateral Agent and the Banks under this Credit Agreement or any other
     Credit Document; (c) any administrative or investigative proceeding by any
     Governmental Authority arising out of or related to a claim, demand, action
     or cause of action described in subsection (a) or (b) above; and (d) any
     and all liabilities (including liabilities under indemnities), losses,
     costs or expenses (including attorneys' fees and expenses) that any
     Indemnitee suffers or incurs as a result of the assertion of any foregoing
     claim, demand, action, cause of action or proceeding, or as a result of the
     preparation of any defense in connection with any foregoing claim, demand,
     action, cause of action or proceeding, in all cases, whether or not arising
     out of the negligence of an Indemnitee, and whether or not an Indemnitee is
     a party to such claim, demand, action, cause of action or proceeding (all
     the foregoing, collectively, the "Indemnified Liabilities"); provided that
                                       -----------------------    --------
     no Indemnitee shall be entitled to indemnification for any claim caused by
     its own gross negligence or willful misconduct or for any loss asserted
     against it by another Indemnitee. The agreements in this Section shall
     survive the termination of the Commitments and repayment of all the Credit
     Party Obligations.

          (c)  Without prejudice to the survival of any other agreement of the
     Credit Parties hereunder, the agreements and obligations of the Credit
     Parties contained in this Section 11.5 shall survive the repayment of the
     Loans, LOC Obligations and other obligations under the Credit Documents and
     the termination of the Commitments hereunder.

                                      104
<PAGE>

     11.6 No Waivers; Amendments.
          ----------------------

     (a)  No failure or delay of the Administrative Agent or of any Bank in
exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the Banks
and holders of the Notes hereunder are cumulative and not exclusive of any
rights or remedies which they would otherwise have. No waiver of any provision
of this Agreement or the Notes nor consent to any departure by the Company
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) below, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given. No notice or demand
on the Company in any case shall entitle the Company to any other or further
notice or demand in similar or other circumstances. Each holder of any of the
Notes shall be bound by any amendment, modification, waiver or consent
authorized as provided herein, whether or not such Note shall have been marked
to indicate such amendment, modification, waiver or consent.

     (b)  Neither this Agreement nor any provision hereof may be amended or
modified except pursuant to an agreement or agreements in writing entered into
by the Company and the Required Banks; provided, however, that no such agreement
                                       --------  -------
shall (i) decrease the principal amount of, or extend the maturity of or the
scheduled dates for the payment of principal of or interest on, any Loan or LOC
Obligations, or waive or excuse any such payment or any part thereof or reduce
the rate of interest on any Loan, without the written consent of each holder
affected thereby, (ii) increase or extend the Commitment or decrease the
Facility Fees of any Bank without the written consent of each Bank affected
thereby, (iii) amend or modify the definition of "Required Banks" or the
provisions of this Section 11.6, Section 3.13 or Section 11.2 without the
written consent of each Bank, (iv) release the Borrower or substantially all of
the other Credit Parties from its or their obligations under the Credit
Documents without the written consent of each Bank, (v) except as a result of,
upon the occurrence of, or in connection with (A) an Asset Disposition permitted
by Section 8.4, (B) any Qualified Secured Financing or (C) the Release of
Collateral Event, release all or substantially all of the Collateral without the
written consent of each Bank or (vi) amend, modify or otherwise affect the
rights or duties of the Administrative Agent hereunder, without the written
consent of the Administrative Agent. Each Bank and holder of any Note shall be
bound by any modification or amendment authorized by this Section regardless of
whether its Notes shall be marked to make reference thereto, and any consent by
any Bank or holder of a Note pursuant to this Section shall bind any person
subsequently acquiring a Note from it, whether or not such Note shall be so
marked.

     11.7 Counterparts.
          ------------

     This Credit Agreement may be executed in any number of counterparts, each
of which when so executed shall be an original, but all of which shall
constitute one and the same instrument. It shall not be necessary in making
proof of this Credit Agreement to produce or account for more than one such
counterpart for each of the parties hereto. Delivery by facsimile by any of the
parties hereto of an executed counterpart of this Credit Agreement shall be as
effective as an original

                                      105
<PAGE>

executed counterpart hereof and shall be deemed a representation that an
original executed counterpart hereof will be delivered.

     11.8  Headings.
           --------

     The headings of the sections hereof are provided for convenience only and
shall not in any way affect the meaning or construction of any provision of this
Credit Agreement.

     11.9  Survival.
           --------

     All indemnities set forth herein, including, without limitation, in Section
2.2(i), 3.11, 3.12, 10.5 or 11.5 shall survive the execution and delivery of
this Credit Agreement, the making of the Loans, the issuance of the Letters of
Credit, the repayment of the Loans, LOC Obligations and other obligations under
the Credit Documents and the termination of the Commitments hereunder, and all
representations and warranties made by the Credit Parties herein shall survive
until this Credit Agreement shall be terminated in accordance with the terms of
Section 11.13(b).

     11.10 Governing Law; Submission to Jurisdiction; Venue.
           ------------------------------------------------

           (a) THIS CREDIT AGREEMENT AND, UNLESS OTHERWISE EXPRESSLY PROVIDED
     THEREIN, THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE
     PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
     INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any legal
     action or proceeding with respect to this Credit Agreement or any other
     Credit Document may be brought in the courts of the State of New York in
     New York County, or of the United States for the Southern District of New
     York, and, by execution and delivery of this Credit Agreement, each of the
     Credit Parties hereby irrevocably accepts for itself and in respect of its
     property, generally and unconditionally, the nonexclusive jurisdiction of
     such courts. Each of the Credit Parties further irrevocably consents to the
     service of process out of any of the aforementioned courts in any such
     action or proceeding by the mailing of copies thereof by registered or
     certified mail, postage prepaid, to it at the address set out for notices
     pursuant to Section 11.1, such service to become effective three (3) days
     after such mailing. Nothing herein shall affect the right of the
     Administrative Agent, the Collateral Agent or any Bank to serve process in
     any other manner permitted by law or to commence legal proceedings or to
     otherwise proceed against any Credit Party in any other jurisdiction.

           (b) Each of the Credit Parties hereby irrevocably waives any
     objection which it may now or hereafter have to the laying of venue of any
     of the aforesaid actions or proceedings arising out of or in connection
     with this Credit Agreement or any other Credit Document brought in the
     courts referred to in subsection (a) above and hereby further irrevocably
     waives and agrees not to plead or claim in any such court that any such
     action or proceeding brought in any such court has been brought in an
     inconvenient forum.

           (c) EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO
     TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION

                                      106
<PAGE>

     OR CAUSE OF ACTION ARISING UNDER ANY CREDIT DOCUMENT OR IN ANY WAY
     CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
     HERETO OR ANY OF THEM WITH RESPECT TO ANY CREDIT DOCUMENT, OR THE
     TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR
     HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE;
     AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
     ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY,
     AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A
     COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
     THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     11.11 Severability.
           ------------

     If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

     11.12 Entirety.
           --------

     This Credit Agreement together with the other Credit Documents represent
the entire agreement of the parties hereto and thereto, and supersede all prior
agreements and understandings, oral or written, if any, including any commitment
letters or correspondence relating to the Credit Documents or the transactions
contemplated herein and therein.

     11.13 Binding Effect; Termination.
           ---------------------------

           (a) This Amendment shall become effective at such time on or after
     the Amendment Closing Date when it shall have been executed by each Credit
     Party and the Administrative Agent, and the Administrative Agent shall have
     received copies hereof (telefaxed or otherwise) which, when taken together,
     bear the signatures of each Bank, and thereafter this Credit Agreement
     shall be binding upon and inure to the benefit of each Credit Party, the
     Administrative Agent and each Bank and their respective successors and
     assigns.

           (b) The term of this Credit Agreement shall be until the Credit Party
     Obligations are Fully Satisfied.

     11.14 Confidentiality.
           ---------------

     Each of the Administrative Agent and the Banks agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates' directors, officers, employees
and agents, including accountants, legal counsel and

                                      107
<PAGE>

other advisors (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential); (b) to the extent requested
by any regulatory authority; (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process; (d) to any other party
to this Credit Agreement; (e) in connection with the exercise of any remedies
hereunder or the other Credit Documents or any suit, action or proceeding
relating to this Credit Agreement or the enforcement of rights hereunder or
thereunder; (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any Eligible Assignee of or Participant
in, or any prospective Eligible Assignee of or Participant in, any of its rights
or obligations under this Credit Agreement or (ii) any direct or indirect
contractual counterparty or prospective counterparty (or such contractual
counterparty's or prospective counterparty's professional advisor) to any credit
derivative transaction relating to obligations of the Borrower; (g) with the
consent of the Borrower; (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Bank on a nonconfidential basis
from a source other than the Borrower; or (i) to the National Association of
Insurance Commissioners or any other similar organization or any nationally
recognized rating agency that requires access to information about a Bank's or
its Affiliates' investment portfolio in connection with ratings issued with
respect to such Bank or its Affiliates. For the purposes of this Section,
"Information" means all information received from the Borrower relating to the
 -----------
Borrower or its business, other than any such information that is available to
the Administrative Agent or any Bank on a nonconfidential basis prior to
disclosure by the Borrower; provided that, in the case of information received
                            --------
from the Borrower after the date hereof, such information is clearly identified
in writing at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

     11.15 Source of Funds.
           ---------------

     Each of the Banks hereby represents and warrants to the Borrower that at
least one of the following statements is an accurate representation as to the
source of funds to be used by such Bank in connection with the financing
hereunder:

           (a) no part of such funds constitutes assets allocated to any
     separate account maintained by such Bank in which any employee benefit plan
     (or its related trust) has any interest;

           (b) to the extent that any part of such funds constitutes assets
     allocated to any separate account maintained by such Bank, such Bank has
     disclosed to the Borrower the name of each employee benefit plan whose
     assets in such account exceed 10% of the total assets of such account as of
     the date of such purchase (and, for purposes of this clause (b), all
     employee benefit plans maintained by the same employer or employee
     organization are deemed to be a single plan);

                                      108
<PAGE>

           (c) to the extent that any part of such funds constitutes assets of
     an insurance company's general account, such insurance company has complied
     with all of the requirements of the regulations issued under Section
     401(c)(1)(A) of ERISA; or

           (d) such funds constitute assets of one or more specific benefit
     plans which such Bank has identified in writing to the Borrower.

As used in this Section 11.15, the terms "employee benefit plan" and "separate
account" shall have the respective meanings assigned to such terms in Section 3
of ERISA.

     11.16 Regulation D.
           ------------

     Each of the Banks hereby represents and warrants to the Borrower that it is
a commercial Bank, other financial institution or other "accredited" investor
(as defined in SEC Regulation D) which makes or acquires or loans on the
ordinary course of business and that it will make or acquire Loans for its own
account in the ordinary course of business.

     11.17 Conflict.
           --------

     To the extent that there is a conflict or inconsistency between any
provision hereof, on the one hand, and any provision of any Credit Document, on
the other hand, this Credit Agreement shall control.

     11.18 Release of Collateral.
           ---------------------

           (a) Upon the consummation of a Qualified Asset-Based Financing on or
     before September 30, 2001, the Banks agree, unless a Default or an Event of
     Default has occurred and is continuing, to take such action as is
     reasonably necessary (at the expense of the Borrower) to subordinate their
     liens and security interests in the accounts receivable and/or inventory,
     as applicable, that secure such Qualified Asset-Based Financing. The Banks
     hereby authorize the Administrative Agent and the Collateral Agent to
     execute and deliver such documentation or to take such action (at the
     expense of the Borrower) as is reasonably necessary to subordinate its
     liens and security interests in the accounts receivable and/or inventory,
     as applicable, securing such Qualified Asset-Based Financing.

           (b) Upon the consummation of a Qualified Lease Financing on or before
     September 30, 2001, the Banks agree, unless a Default or an Event of
     Default has occurred and is continuing, to take such action as is
     reasonably necessary (at the expense of the Borrower) to release their
     liens and security interests in the Research and Development Facility or
     the equipment located thereon, as applicable, that secure such Qualified
     Lease Financing. The Banks hereby authorize the Administrative Agent and
     the Collateral Agent to execute and deliver such documentation or to take
     such action (at the expense of the Borrower) as is reasonably necessary to
     release its liens and security interests in the Research and Development
     Facility and the equipment located thereon, as applicable, securing such
     Qualified Lease Financing.

                                      109
<PAGE>

           (c) Upon the occurrence of the Release of Collateral Event, the Banks
     agree, unless a Default or an Event of Default has occurred and is
     continuing, to take such action as is reasonably necessary (at the expense
     of the Borrower) to release all Collateral securing the Credit Party
     Obligations. The Banks hereby authorize the Administrative Agent and the
     Collateral Agent to execute and deliver such documentation or to take such
     other action (at the expense of the Borrower) as is reasonably necessary to
     give effect to this Section 11.18(c).

     11.19 Release.
           -------

     The Credit Parties hereby release the Administrative Agent, the Collateral
Agent, the Banks and each of their respective officers, employees,
representatives, agents, trustees, counsel and directors (collectively, the
"Released Persons") from any and all actions, causes of action, claims, demands,
 ----------------
damages and liabilities of whatever kind or nature, in law or in equity, now
known or unknown, suspected or unsuspected to the extent that any of the
foregoing arises from any action or failure to act by any of the Released
Persons on or prior to the date hereof.

                          [Signature Page to Follow]

                                      110
<PAGE>

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of
this Credit Agreement to be duly executed and delivered as of the date first
above written.

BORROWER:                ETHYL CORPORATION, a Virginia
--------
                         corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: Vice President, Treasurer, and
                                Principal Financial Officer

SUBSIDIARY
----------
GUARANTORS:              THE EDWIN COOPER CORPORATION, a
----------
                         Virginia corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: Treasurer

                         ETHYL ADDITIVES CORPORATION, a
                         Virginia corporation

                         By: /s/ W.C. Drinkwater
                             -------------------
                         Name: Wayne C. Drinkwater
                         Title: Treasurer

                         ETHYL ASIA PACIFIC COMPANY,
                         a Virginia corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: Vice President and Treasurer

                         ETHYL EXPORT CORPORATION,
                         a Virginia corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: President and Treasurer

                                      111
<PAGE>

                         ETHYL INTERAMERICA CORPORATION,
                         a Delaware corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: Vice President and Treasurer

                         ETHYL PETROLEUM ADDITIVES, INC.,
                         a Delaware corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: Treasurer

                         INTERAMERICA TERMINALS CORPORATION,
                         a Virginia corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: Treasurer

                         ETHYL VENTURES, INC.,
                         a Virginia corporation

                         By: /s/ D.A. Fiorenza
                             -----------------
                         Name: David A. Fiorenza
                         Title: President and Treasurer

                                      112
<PAGE>

BANKS:                   BANK OF AMERICA, N. A.,
-----
                         in its capacity as Administrative Agent
                         and as Collateral Agent

                         By: /s/ Charles D. Graber
                             ---------------------
                         Name: Charles D. Graber
                         Title: Vice President

                         BANK OF AMERICA, N. A., in its
                         capacity as a Bank and Issuing Lender

                         By: /s/ David Noda
                             --------------
                         Name: David Noda
                         Title: Managing Director

                         THE BANK OF NEW YORK

                         By: /s/ Christine T. Rio
                             --------------------
                         Name: Christine T. Rio
                         Title: Vice President

                         SUNTRUST BANK

                         By: /s/ Mark A. Flatin
                             ------------------
                         Name: Mark A. Flatin
                         Title: Director

                         CREDIT LYONNAIS
                         NEW YORK BRANCH

                         By: /s/ Scott R. Chapella
                             ---------------------
                         Name: Scott R. Chapella
                         Title: Vice President

                         WACHOVIA BANK, N.A.

                         By: /s/ Jill E. Snyder
                             ------------------
                         Name: Jill E. Snyder
                         Title: Vice President

                                      113
<PAGE>

                         STANDARD CHARTERED BANK

                         By: /s/ Alan Babcock
                             ----------------
                         Name: Alan Babcock
                         Title: Senior Vice President

                         THE INDUSTRIAL BANK OF JAPAN,
                         LIMITED

                         By: /s/ John Dippo
                             --------------
                         Name: John Dippo
                         Title: Senior Vice President

                         THE SUMITOMO MITSUI BANKING
                         CORPORATION

                         By: /s/ Edward D. Henderson, Jr.
                             ----------------------------
                         Name: Edward D. Henderson, Jr.
                         Title: Senior Vice President

                         BANK ONE, NA (Main Office - Chicago)

                         By: /s/ Hal E. Fudge
                             ----------------
                         Name: Hal E. Fudge
                         Title: First Vice President

                         BANKERS TRUST COMPANY

                         By: /s/ Scottye D. Lindsey
                             ----------------------
                         Name: Scottye D. Lindsey
                         Title: Vice President

                         KBC N.V.

                         By: /s/ Robert Snauffer
                             -------------------
                         Name: Robert Snauffer
                         Title: First Vice President

                                      114
<PAGE>

                         FLEET NATIONAL BANK

                         By: /s/ R. Kevin King
                             -----------------
                         Name: R. Kevin King
                         Title: Vice President

                         GENERAL ELECTRIC CAPITAL
                         CORPORATION

                         By: /s/ Robert M. Kadlick
                             ---------------------
                         Name: Robert M. Kadlick
                         Title: Duly Authorized Signatory

                                      115

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