Document:

<PAGE>

                                                                  EXHIBIT 10.1
------------------------------------------------------------------------------

                                   $85,000,000

                      AMENDED AND RESTATED CREDIT AGREEMENT

                                      among

                         RED ROBIN INTERNATIONAL, INC.,

                                  as Borrower,

                         RED ROBIN GOURMET BURGERS, INC.

                                   as Parent,

                    THE DOMESTIC SUBSIDIARIES OF THE BORROWER
                        FROM TIME TO TIME PARTIES HERETO,
                                 as Guarantors,

                           THE LENDERS PARTIES HERETO,

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                            as Administrative Agent,

                         U.S. BANK NATIONAL ASSOCIATION
                             as Documentation Agent

                                       and

                             WELLS FARGO BANK, N.A.,
                              as Syndication Agent

                            Dated as of May 20, 2003

                            WACHOVIA SECURITIES, INC.
                                as Lead Arranger

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I     DEFINITIONS ...............................................      1
  Section 1.1   Defined Terms ...........................................      1
  Section 1.2   Other Definitional Provisions; Time References ..........     25
  Section 1.3   Accounting Terms ........................................     26
ARTICLE II    THE LOANS; AMOUNT AND TERMS ...............................     26
  Section 2.1   Revolving Loans .........................................     26
  Section 2.2   Letter of Credit Subfacility ............................     28
  Section 2.3   Swingline Loan Subfacility ..............................     31
  Section 2.4   Fees ....................................................     33
  Section 2.5   Commitment Reductions ...................................     34
  Section 2.6   Prepayments .............................................     34
  Section 2.7   Minimum Principal Amount of Tranches ....................     36
  Section 2.8   Default Rate and Payment Dates ..........................     36
  Section 2.9   Conversion Options ......................................     36
  Section 2.10  Computation of Interest and Fees ........................     37
  Section 2.11  Pro Rata Treatment and Payments .........................     38
  Section 2.12  Non-Receipt of Funds by the Administrative Agent ........     40
  Section 2.13  Inability to Determine Interest Rate ....................     41
  Section 2.14  Illegality ..............................................     41
  Section 2.15  Requirements of Law .....................................     42
  Section 2.16  Indemnity ...............................................     43
  Section 2.17  Taxes ...................................................     43
  Section 2.18  Indemnification; Nature of Issuing Lender's Duties ......     45
ARTICLE III   REPRESENTATIONS AND WARRANTIES ............................     47
  Section 3.1   Financial Condition .....................................     47
  Section 3.2   No Change ...............................................     47
  Section 3.3   Corporate Existence; Compliance with Law ................     48
  Section 3.4   Corporate Power; Authorization; Enforceable Obligations .     48
  Section 3.5   Compliance with Laws; No Conflict; No Default ...........     48
  Section 3.6   No Material Litigation ..................................     49
  Section 3.7   Investment Company Act; PUHCA; Etc. .....................     49
  Section 3.8   Margin Regulations ......................................     49
  Section 3.9   ERISA ...................................................     50
  Section 3.10  Environmental Matters ...................................     50
  Section 3.11  Purpose of Loans ........................................     51
  Section 3.12  Subsidiaries ............................................     51
  Section 3.13  Ownership; Insurance ....................................     52
  Section 3.14  Indebtedness ............................................     52
  Section 3.15  Taxes ...................................................     52
  Section 3.16  Intellectual Property ...................................     52
  Section 3.17  Solvency ................................................     53
  Section 3.18  Investments .............................................     53
  Section 3.19  Location of Collateral ..................................     53
  Section 3.20  No Burdensome Restrictions ..............................     53
  Section 3.21  Brokers' Fees ...........................................     53

                                       i

<PAGE>

  Section 3.22  Labor Matters .............................................   53
  Section 3.23  Security Documents ........................................   54
  Section 3.24  Accuracy and Completeness of Information ..................   54
  Section 3.25  Absence of Certain Changes or Events ......................   54
  Section 3.26  Material Contracts ........................................   55
  Section 3.27  Capitalization ............................................   55
ARTICLE IV    CONDITIONS PRECEDENT ........................................   55
  Section 4.1   Conditions to Closing and Initial Extensions of Credit ....   55
  Section 4.2   Conditions to All Extensions of Credit ....................   59
ARTICLE V     AFFIRMATIVE COVENANTS .......................................   60
  Section 5.1   Financial Statements ......................................   60
  Section 5.2   Certificates; Other Information ...........................   61
  Section 5.3   Payment of Taxes and Other Obligations ....................   63
  Section 5.4   Conduct of Business and Maintenance of Existence ..........   64
  Section 5.5   Maintenance of Property; Insurance ........................   64
  Section 5.6   Inspection of Property; Books and Records; Discussions ....   64
  Section 5.7   Notices ...................................................   65
  Section 5.8   Environmental Laws ........................................   66
  Section 5.9   Financial Covenants .......................................   66
  Section 5.11  Compliance with Law .......................................   68
  Section 5.12  Pledged Assets ............................................   68
  Section 5.13  Covenants Regarding Intellectual Property .................   70
  Section 5.14  Deposit and Securities Accounts ...........................   71
  Section 5.15  Further Assurances ........................................   71
  Section 5.16  Post-Closing Requirements .................................   71
ARTICLE VI    NEGATIVE COVENANTS ..........................................   72
  Section 6.1   Indebtedness ..............................................   72
  Section 6.2   Liens .....................................................   73
  Section 6.3   Guaranty Obligations ......................................   73
  Section 6.4   Nature of Business ........................................   73
  Section 6.5   Consolidation, Merger, Sale or Purchase of Assets, etc. ...   74
  Section 6.6   Advances, Investments and Loans ...........................   75
  Section 6.7   Transactions with Affiliates ..............................   75
  Section 6.8   Ownership of Subsidiaries; Restrictions ...................   75
  Section 6.9   Fiscal Year; Organizational Documents; Material Contracts .   75
  Section 6.10  Limitation on Restricted Actions ..........................   76
  Section 6.11  Restricted Payments .......................................   76
  Section 6.12  Sale Leasebacks ...........................................   76
  Section 6.13  No Further Negative Pledges ...............................   77
  Section 6.14  Amendments to Subordinated Debt, etc. .....................   77
  Section 6.15  Operating Lease Obligations ...............................   77
  Section 6.16  Management Fees ...........................................   77
  Section 6.17  Parent Holding Company/Maryland Subsidiaries ..............   78
ARTICLE VII   EVENTS OF DEFAULT ...........................................   78
  Section 7.1   Events of Default .........................................   78
  Section 7.2   Acceleration; Remedies ....................................   81
ARTICLE VIII  THE AGENT ...................................................   81
  Section 8.1   Appointment ...............................................   81

                                       ii

<PAGE>

  Section 8.2   Delegation of Duties ......................................   82
  Section 8.3   Exculpatory Provisions ....................................   82
  Section 8.4   Reliance by Administrative Agent ..........................   82
  Section 8.5   Notice of Default .........................................   83
  Section 8.6   Non-Reliance on Administrative Agent and Other Lenders ....   83
  Section 8.7   Indemnification ...........................................   84
  Section 8.8   Administrative Agent in Its Individual Capacity ...........   84
  Section 8.9   Successor Administrative Agent ............................   84
  Section 8.10  Nature of Duties ..........................................   85
ARTICLE IX    MISCELLANEOUS ...............................................   85
  Section 9.1   Amendments, Waivers and Release of Collateral .............   85
  Section 9.2   Notices ...................................................   87
  Section 9.3   No Waiver; Cumulative Remedies ............................   88
  Section 9.4   Survival of Representations and Warranties ................   88
  Section 9.5   Payment of Expenses and Taxes .............................   88
  Section 9.6   Successors and Assigns; Participations; Purchasing Lenders    89
  Section 9.7   Adjustments; Set-off ......................................   92
  Section 9.8   Table of Contents and Section Headings ....................   93
  Section 9.9   Counterparts ..............................................   93
  Section 9.10  Effectiveness .............................................   93
  Section 9.11  Severability ..............................................   93
  Section 9.12  Integration ...............................................   93
  Section 9.13  Governing Law .............................................   93
  Section 9.14  Consent to Jurisdiction and Service of Process ............   93
  Section 9.15  Confidentiality ...........................................   94
  Section 9.16  Acknowledgments ...........................................   95
  Section 9.17  Waivers of Jury Trial .....................................   95
  Section 9.18  Compliance with Tax Shelter Regulations ...................   95
ARTICLE X     GUARANTY ....................................................   96
  Section 10.1  The Guaranty ..............................................   96
  Section 10.2  Bankruptcy ................................................   96
  Section 10.3  Nature of Liability .......................................   97
  Section 10.4  Independent Obligation ....................................   97
  Section 10.5  Authorization .............................................   97
  Section 10.6  Reliance ..................................................   97
  Section 10.7  Waiver ....................................................   98
  Section 10.8  Limitation on Enforcement .................................   99
  Section 10.9  Confirmation of Payment ...................................   99

                                       iii

<PAGE>

Schedules
---------

Schedule 1.1-1            Account Designation Letter
Schedule 1.1-2            Permitted Liens
Schedule 1.1-3            Inactive Corporations
Schedule 2.1(a)           Schedule of Lenders and Commitments
Schedule 2.1(b)(i)        Form of Notice of Borrowing
Schedule 2.1(e)           Form of Revolving Note
Schedule 2.3(d)           Form of Swingline Note
Schedule 2.6(b)(ii)       Excluded Properties
Schedule 2.9              Form of Notice of Conversion/Extension
Schedule 2.17             Section 2.17 Certificate
Schedule 3.6              Litigation
Schedule 3.9              ERISA
Schedule 3.12             Subsidiaries
Schedule 3.16             Intellectual Property
Schedule 3.19(a)          Location of Real Property
Schedule 3.19(b)          Location of Collateral
Schedule 3.19(c)          Chief Executive Offices
Schedule 3.21             Broker's Fees
Schedule 3.22             Labor Matters
Schedule 3.25             Significant Events
Schedule 3.26             Material Contracts
Schedule 3.27             Capitalization
Schedule 4.1-1            Form of Secretary's Certificate
Schedule 4.1-2            Form of Solvency Certificate
Schedule 4.1-3            Pro Forma Covenant Compliance Worksheet
Schedule 5.1(c)           Form of Officer's Certificate
Schedule 5.5(b)           Insurance
Schedule 5.10             Form of Joinder Agreement
Schedule 5.16             Mortgaged Properties
Schedule 6.1(b)           Indebtedness
Schedule 6.6              Investments
Schedule 9.2              Schedule of Lenders' Lending Offices
Schedule 9.6(c)           Form of Commitment Transfer Supplement

                                       iv

<PAGE>

         AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 20, 2003, among
RED ROBIN INTERNATIONAL, INC., a Nevada corporation, (the "Borrower"), RED ROBIN
GOURMET BURGERS, INC. (the "Parent"), those Domestic Subsidiaries of the
Borrower identified as a "Guarantor" on the signature pages hereto and such
other Domestic Subsidiaries of the Borrower as may from time to time become a
party hereto (together with the Parent, each individually a "Guarantor" and
collectively the "Guarantors"), the several banks and other financial
institutions as may from time to time become parties to this Agreement
(individually a "Lender" and collectively the "Lenders") and WACHOVIA BANK,
NATIONAL ASSOCIATION, a national banking association, as administrative agent
for the Lenders hereunder (in such capacity, the "Administrative Agent").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, the Borrower has requested that the Lenders make loans and
other financial accommodations to the Borrower in the amount of up to
$85,000,000, as more particularly described herein; and

         WHEREAS, the Lenders have agreed to make such loans and other financial
accommodations to the Borrower on the terms and conditions contained herein.

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

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1       Defined Terms.

         As used in this Agreement, terms defined in the preamble to this
Agreement have the meanings therein indicated, and the following terms have the
following meanings:

         "ABR Default Rate" shall mean, as of any date of determination, the
Alternate Base Rate plus the Applicable Percentage for Alternate Base Rate Loans
in effect on such date plus 2%.

         "Account Designation Letter" shall mean the Notice of Account
Designation Letter dated the Closing Date from the Borrower to the
Administrative Agent substantially in the form attached hereto as Schedule
1.1-1.

         "Additional Credit Party" shall mean each Person that becomes a
Guarantor by execution of a Joinder Agreement in accordance with Section 5.10.

<PAGE>

         "Administrative Agent" or "Agent" shall have the meaning set forth in
the first paragraph of this Agreement and any successors in such capacity.

         "Affiliate" shall mean as to any Person, any other Person (excluding
any Subsidiary) which, directly or indirectly, is in control of, is controlled
by, or is under common control with, such Person. For purposes of this
definition, a Person shall be deemed to be "controlled by" a Person if such
Person possesses, directly or indirectly, power either (a) to vote 10% or more
of the securities having ordinary voting power for the election of directors of
such Person or (b) to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise. Notwithstanding the
foregoing, neither the Administrative Agent nor any Lender shall be deemed an
Affiliate of Borrower solely by reason of the relationship created by the Credit
Documents.

         "Agreement" shall mean this Credit Agreement, as amended, modified or
supplemented from time to time in accordance with its terms.

         "Alternate Base Rate" shall mean, for any day, a rate per annum equal
to the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof:
"Prime Rate" shall mean, at any time, the rate of interest per annum publicly
announced from time to time by Wachovia at its principal office in Charlotte,
North Carolina as its prime rate. Each change in the Prime Rate shall be
effective as of the opening of business on the day such change in the Prime Rate
occurs. The parties hereto acknowledge that the rate announced publicly by
Wachovia as its Prime Rate is an index or base rate and shall not necessarily be
its lowest or best rate charged to its customers or other banks; and "Federal
Funds Effective Rate" shall mean, for any day, the weighted average of the rates
on overnight federal funds transactions with members of the Federal Reserve
System arranged by federal funds brokers, as published on the next succeeding
Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published on the next succeeding Business Day, the average of the quotations for
the day of such transactions received by the Administrative Agent from three
federal funds brokers of recognized standing selected by it. If for any reason
the Administrative Agent shall have determined (which determination shall be
conclusive in the absence of manifest error) that it is unable to ascertain the
Federal Funds Effective Rate, for any reason, including the inability or failure
of the Administrative Agent to obtain sufficient quotations in accordance with
the terms thereof, the Alternate Base Rate shall be determined without regard to
clause (b) of the first sentence of this definition, as appropriate, until the
circumstances giving rise to such inability no longer exist. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective on the opening of business on the date of such
change.

         "Alternate Base Rate Loans" shall mean Loans that bear interest at an
interest rate based on the Alternate Base Rate.

         "Applicable Percentage" shall mean, for any day, the rate per annum set
forth below opposite the applicable Level then in effect, it being understood
that the Applicable Percentage for (i) Alternate Base Rate Loans shall be the
percentage set forth under the column "Alternate

                                       2

<PAGE>

Base Rate Margin" and (ii) LIBOR Rate Loans and the Letter of Credit Fee shall
be the percentage set forth under the column "LIBOR Rate Margin/Letter of Credit
Fee":

---------- ----------------------------- ---------------- ------------------

                                                               LIBOR Rate
                                                                Margin/
                                           Alternate Base      Letter of
  Level           Leverage Ratio            Rate Margin        Credit Fee
---------- ----------------------------- ---------------- ------------------
   I         Greater than 1.50 to 1.00         1.75%             2.75%
---------- ----------------------------- ---------------- ------------------
   II       Less than or equal to 1.50         1.25%             2.25%
            to 1.00 but greater than
                  1.25 to 1.00
---------- ----------------------------- ---------------- ------------------
   III      Less than or equal to 1.25
                    to 1.00                    1.00%             2.00%
---------- ----------------------------- ---------------- ------------------

         The Applicable Percentage shall, in each case, be determined and
adjusted quarterly on the date five (5) Business Days after the date on which
the Administrative Agent has received from the Borrower the quarterly financial
information and certifications required to be delivered to the Administrative
Agent and the Lenders in accordance with the provisions of Sections 5.1(a) and
(b) and 5.2(b) (each an "Interest Determination Date"). Such Applicable
Percentage shall be effective from such Interest Determination Date until the
next Interest Determination Date. The initial Applicable Percentages shall be
based on Level II for the first two full fiscal quarters following the Closing
Date. If the Borrower shall fail to provide the financial information and
certifications in accordance with the provisions of Sections 5.1(a) and (b) and
5.2(b), the Applicable Percentage shall, on the date five (5) Business Days
after the date by which the Borrower was so required to provide such financial
information and certifications to the Administrative Agent and the Lenders, be
based on Level I until such time as such information and certifications are
provided, whereupon the Level shall be determined by the then current Leverage
Ratio.

         "Approved Fund" shall mean, with respect to any Lender that is a fund
that invests in bank loans, any other fund that invests in bank loans and is
managed by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

         "Arranger" shall mean Wachovia Securities, Inc.

         "Asset Disposition" shall mean the disposition of any or all of the
assets (including, without limitation, the Capital Stock of a Subsidiary or any
ownership interest in a joint venture) of any Credit Party or any Subsidiary
whether by sale, lease, transfer or otherwise. The term "Asset Disposition"
shall not include (i) Section 6.5(a)(i) hereof, (ii) Section 6.5(a)(iv) hereof
or (iii) any Equity Issuance.

         "Autoborrow Feature" shall mean that certain automated borrowing and
repayment mechanism attached to a concentration account (the "Concentration
Account") maintained by the Borrower with the Swingline Lender which grants the
Borrower the ability to automatically borrow and repay Swingline Loans through
such Concentration Account.

                                       3

<PAGE>

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

         "Base Rent Expense" means, for any period, all rental expense of the
Parent and its Subsidiaries during such period, determined on a consolidated
basis in accordance with GAAP, incurred under any rental agreements or leases of
real or personal property, including space leases and ground leases and
including performance-based payments, if any, actually paid by the Parent and
its Subsidiaries under any rental agreements or leases but excluding obligations
in respect of Capital Leases, including performance-based payments, if any,
actually paid by the Parent or any of its Subsidiaries under any rental
agreements or leases and net of rental income derived from subleases of such
property.

         "Borrower" shall have the meaning set forth in the first paragraph of
this Agreement.

         "Borrowing Date" shall mean, in respect of any Loan, the date such Loan
is made.

         "Business" shall have the meaning set forth in Section 3.10(b).

         "Business Day" shall mean 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; provided, however, that when used in
connection with a rate determination, borrowing or payment in respect of a LIBOR
Rate Loan, the term "Business Day" shall also exclude any day on which banks in
London, England are not open for dealings in Dollar deposits in the London
interbank market.

          "Capital Lease" means any lease of property, real or personal, the
obligations with respect to which are required to be capitalized on a balance
sheet of the lessee in accordance with GAAP.

         "Capital Lease Obligations" shall mean the capitalized lease
obligations relating to a Capital Lease determined in accordance with GAAP.

         "Capital Stock" shall mean (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, 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 interest or 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" shall mean (i) securities issued or directly and
fully guaranteed or insured by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof) having maturities of not more
than twelve months from the date of acquisition ("Government Obligations"), (ii)
U.S. dollar denominated (or foreign currency fully hedged) time deposits,
certificates of deposit, Eurodollar time deposits and Eurodollar certificates of
deposit of (y) any

                                       4

<PAGE>

domestic commercial bank of recognized standing having capital and surplus in
excess of $250,000,000 or (z) 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 364 days from the date of acquisition,
(iii) 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, (iv) repurchase
agreements with a bank or trust company (including a Lender) or a 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 of
America, (v) obligations of any state of the United States or any political
subdivision thereof for the payment of the principal and redemption price of and
interest on which there shall have been irrevocably deposited Government
Obligations maturing as to principal and interest at times and in amounts
sufficient to provide such payment, (vi) auction preferred stock rated in the
highest short-term credit rating category by S&P or Moody's and (vii) shares of
money market mutual or similar funds that invest exclusively in assets
satisfying the requirements of clauses (i) through (vi) of this definition.

         "Change of Control" shall mean the occurrence of any of the following
events: (a) any "person" or "group" (within the meaning of Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934), other than Quad C Partners V,
L.P. and its Affiliates or the Snyder Group, becomes the "beneficial owner" (as
defined in Rule l3d-3 under the Securities Exchange Act of 1934) of more than
20% of then outstanding Voting Stock of the Parent, measured by voting power
rather than the number of shares or (b) Continuing Directors shall cease for any
reason to constitute a majority of the members of the board of directors of the
Parent then in office.

         "Closing Date" shall mean the date of this Agreement.

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

         "Collateral" shall mean a collective reference to the collateral which
is identified in, and at any time will be covered by, the Security Documents.

         "Commitment" or "Revolving Commitment" shall mean, with respect to each
Lender, the commitment of such Lender to make Revolving Loans in an aggregate
principal amount at any time outstanding up to the amount of such Lender's
Revolving Commitment as specified on Schedule 2.1(a), as such amount may be
reduced from time to time in accordance with the provisions hereof.

         "Commitment Fee" shall have the meaning set forth in Section 2.4(a).

         "Commitment Period" shall mean the period from, the Closing Date to but
not including the Maturity Date.

                                       5

<PAGE>

         "Commitment Transfer Supplement" shall mean a Commitment Transfer
Supplement, substantially in the form of Schedule 9.6(c).

         "Commonly Controlled Entity" shall mean an entity, whether or not
incorporated, which is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group which includes the Borrower and
which is treated as a single employer under Section 414 of the Code.

         "Concentration Account" shall have the meaning set forth in the
definition of "Autoborrow Feature".

         "Consolidated" or "consolidated" means, with reference to any term
defined herein, such term as applied to the accounts of the Parent and its
Subsidiaries, consolidated in accordance with GAAP.

         "Consolidated Capital Expenditures" shall mean, for any period, all
capital expenditures (including, without limitation, the Total Consideration for
all Permitted Acquisitions) of the Parent and its Subsidiaries on a consolidated
basis for such period, including without limitation Capital Lease Obligations,
as determined in accordance with GAAP. The term "Consolidated Capital
Expenditures" shall not include capital expenditures in respect of the
reinvestment of proceeds derived from Recovery Events received by the Parent and
its Subsidiaries to the extent that such reinvestment is permitted under the
Credit Documents.

         "Consolidated Cash Flow" means, for any period, an amount equal to (i)
Consolidated EBITDA for such period, minus (ii) Maintenance Capital Expenditures
for such period.

         "Consolidated Debt Service" means, with respect to the Parent and its
Subsidiaries and for any period, the sum, without duplication, of (i)
Consolidated Interest Expense for such period, plus (ii) any and all scheduled
repayments of principal during such period in respect of Indebtedness that
becomes due and payable during such period pursuant to any agreement or
instrument to which the Parent or any of its Subsidiaries is a party relating to
or in respect of (without duplication) (A) the borrowing of money, including the
issuance of notes or bonds, (B) the deferred purchase price of assets (other
than trade payables or accrued liabilities arising in the ordinary course of
business), (C) any Capital Leases, and (D) Indebtedness of another Person of the
type referred to in clauses (A) through (C) above guaranteed by the Parent or
any of its Subsidiaries. Demand obligations shall be deemed to be due and
payable during any fiscal period during which such obligations are outstanding.

          "Consolidated EBITDA" means, with respect to any period, an amount
equal to the sum of (i) Consolidated Net Income for such period, plus (ii) in
each case to the extent deducted in the calculation of Consolidated Net Income
and without duplication, (A) depreciation and amortization for such period, plus
(B) income tax expense for such period, plus (C) Consolidated Interest Expense
for such period, plus (D) other noncash charges for such period that will not
result in cash payments in a subsequent period, plus (E) to the extent deducted
from Consolidated Net Income the amount of any prepayment penalties incurred as
a result of extraordinary debt extinguishment, all as determined in accordance
with GAAP.

                                       6

<PAGE>

         "Consolidated Interest Expense" means, for any period, the aggregate
amount of interest required to be paid or accrued by the Parent and its
Subsidiaries during such period on all Indebtedness (other than synthetic leases
and other similar off-balance sheet financing products) of the Parent and its
Subsidiaries outstanding during all or any part of such period (excluding
amounts paid during such period that were accrued in a prior period), whether
such interest was or is required to be reflected as an item of expense or
capitalized, including payments consisting of interest in respect of any Capital
Lease and commitment fees, agency fees, facility fees and similar fees or
expenses in connection with the borrowing of money (but excluding the
amortization of transaction fees in connection with the initial public offering
of the Parent's Capital Stock and in connection with the closing of this
Agreement).

         "Consolidated Net Income" means, for any period, the consolidated net
income (or deficit) of the Parent and its Subsidiaries, after deduction of all
expenses, taxes, and other proper charges, determined in accordance with GAAP,
after eliminating therefrom (i) all extraordinary items of income and (ii) all
gains attributable to sales of assets outside the ordinary course of business.

         "Continuing Directors" shall mean during any period of 24 consecutive
months commencing after the Closing Date, individuals who at the beginning of
such 24 month period were directors of the Parent (together with any new
director whose election by the Parent's board of directors or whose nomination
for election by the Parent's shareholders was approved by a vote of at least
two-thirds of the directors then still in office who either were directors at
the beginning of such period or whose election or nomination for election was
previously so approved).

         "Copyright Licenses" shall mean any agreement, whether written or oral,
providing for the grant by or to a Person of any right under any Copyright,
including, without limitation, any thereof referred to in Schedule 3.16 to this
Agreement.

         "Copyrights" shall mean all copyrights (other than copyrights of de
minimus value) of the Borrower and its Subsidiaries in all works, now existing
or hereafter created or acquired, all registrations and recordings thereof, and
all applications in connection therewith, whether in the United States Copyright
Office or in any similar office or agency of the United States, any state
thereof or any other country or any political subdivision thereof, or otherwise,
including, without limitation, any thereof referred to in Schedule 3.16 and all
renewals thereof.

         "Credit Documents" shall mean this Agreement, each of the Notes, any
Joinder Agreement, the Letters of Credit and any other LOC Documents, any
Commitment Transfer Supplement, the Security Documents and all other agreements,
documents, certificates and instruments (excluding (i) any such agreements,
documents, certificates or instruments which are purely administrative in nature
and (ii) any agreements, documents, certificates and instruments related to a
Hedging Agreement) delivered to the Administrative Agent or any Lender by any
Credit Party in connection herewith or therewith.

                                       7

<PAGE>

         "Credit Party" or "Credit Parties" shall mean any of the Borrower or
the Guarantors, individually or collectively, as appropriate.

         "Credit Party Obligations" shall mean, without duplication, (i) all of
the obligations, indebtedness and liabilities of the Credit Parties to the
Lenders (including the Issuing Lender) and the Administrative Agent, whenever
arising, under this Agreement, the Notes or any of the other Credit Documents
including principal, interest, fees, reimbursements and indemnification
obligations and other amounts (including, but not limited to, any interest
accruing after the occurrence of a filing of a petition of bankruptcy under the
Bankruptcy Code 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 Lender, or
any Affiliate of a Lender, arising under any Hedging Agreement permitted by
Section 6.1(e).

         "Debt Issuance" shall mean the issuance of any Indebtedness for
borrowed money by any Credit Party or any of its Subsidiaries (excluding, for
purposes hereof, any Indebtedness of the Borrower and its Subsidiaries permitted
to be incurred pursuant to Section 6.1 hereof).

         "Default" shall mean any of the events specified in Section 7.1,
whether or not any requirement for the giving of notice or the lapse of time, or
both, or any other condition, has been satisfied.

         "Defaulting Lender" shall mean, at any time, any Lender that, at such
time (a) has failed to make a Loan required pursuant to the term of this
Agreement, including the funding of a Participation Interest in accordance with
the terms hereof, (b) has failed to pay to the Administrative Agent or any
Lender an amount owed by such Lender pursuant to the terms of this Agreement, or
(c) has been deemed insolvent or has become subject to a bankruptcy or
insolvency proceeding or to a receiver, trustee or similar official.

         "Dollars" and "$" shall mean dollars in lawful currency of the United
States of America.

         "Domestic Lending Office" shall mean, initially, the office of each
Lender designated as such Lender's Domestic Lending Office shown on Schedule
9.2; and thereafter, such other office of such Lender as such Lender may from
time to time specify to the Administrative Agent and the Borrower as the office
of such Lender at which Alternate Base Rate Loans of such Lender are to be made.

         "Domestic Subsidiary" shall mean any Subsidiary that is organized and
existing under the laws of the United States or any state or commonwealth
thereof or under the laws of the District of Columbia.

         "Environmental Laws" shall mean any and all applicable foreign,
Federal, state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority or other
Requirement of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the
environment, as now or may at any time be in effect during the term of this
Agreement.

                                       8

<PAGE>

         "Equity Issuance" shall mean any issuance by any Credit Party or any
Subsidiary to any Person which is not a Credit Party of (a) shares of its
Capital Stock, (b) any shares of its Capital Stock pursuant to the exercise of
options or warrants or (c) any shares of its Capital Stock pursuant to the
conversion of any debt securities to equity. The term "Equity Issuance" shall
not include (i) any shares of its Capital Stock pursuant to the exercise of
stock options held by officers, directors or employees of the Credit Parties,
(ii) any Asset Disposition or (iii) any Debt Issuance.

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

         "Eurodollar Reserve Percentage" shall mean for any day, the percentage
(expressed as a decimal and rounded upwards, if necessary, to the next higher
1/100th of 1%) which is in effect for such day as prescribed by the Federal
Reserve Board (or any successor) for determining the maximum reserve requirement
(including without limitation any basic, supplemental or emergency reserves) in
respect of Eurocurrency liabilities, as defined in Regulation D of such Board as
in effect from time to time, or any similar category of liabilities for a member
bank of the Federal Reserve System in New York City.

         "Event of Default" shall mean any of the events specified in Section
7.1; provided, however, that any requirement for the giving of notice or the
lapse of time, or both, or any other condition, has been satisfied.

         "Extension of Credit" shall mean, as to any Lender, the making of a
Loan by such Lender or the issuance of, or participation in, a Letter of Credit
by such Lender.

         "Federal Funds Effective Rate" shall have the meaning set forth in the
definition of "Alternate Base Rate".

         "Fee Letter" shall mean the letter agreement dated April 11, 2003
addressed to the Borrower from the Administrative Agent and Wachovia Securities,
Inc., as amended, modified or otherwise supplemented.

         "Fixed Charge Coverage Ratio" means, for any Reference Period, the
ratio of (i) Consolidated Cash Flow for such Reference Period plus Base Rent
Expense for such Reference Period to (ii) Consolidated Debt Service for such
Reference Period plus Base Rent Expense for such Reference Period plus cash
payments for all income taxes paid by the Parent and its Subsidiaries during
such Reference Period.

         "Foreign Subsidiary" shall mean any Subsidiary that is not a Domestic
Subsidiary.

         "Funded Debt" shall mean, 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, 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

                                       9

<PAGE>

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 incurred,
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, (e) the principal
portion of all obligations of such Person under Capital Leases, (f) the maximum
amount of all 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, (h) the principal balance outstanding under
any synthetic lease, tax retention operating lease, off-balance sheet loan or
similar off-balance sheet financing product, (i) all net payment obligations of
such Person under Hedging Agreements, excluding any portion thereof which would
be accounted for as interest expense under GAAP, (j) all Indebtedness of others
of the type described in clauses (a) through (i) hereof 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 have been assumed, (k) all Guaranty Obligations of such Person
with respect to Indebtedness of another Person of the type described in clauses
(a) through (j) hereof, and (l) all Indebtedness of the type described in
clauses (a) through (j) hereof of any partnership or unincorporated joint
venture in which such Person is a general partner or a joint venturer; provided,
however, that Funded Debt shall not include Indebtedness among the Credit
Parties to the extent such Indebtedness would be eliminated on a Consolidated
basis.

         "GAAP" shall mean generally accepted accounting principles in effect in
the United States of America applied on a consistent basis, subject, however, in
the case of determination of compliance with the financial covenants set out in
Section 5.9 to the provisions of Section 1.3.

         "Government Acts" shall have the meaning set forth in Section 2.18.

         "Governmental Approvals" shall have the meaning set forth in Section
3.5(a).

         "Governmental Authority" shall mean any nation or government, any state
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

         "Guaranty Obligations" shall mean, 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 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

                                       10

<PAGE>

primarily for the purpose of assuring the holder of such Indebtedness, 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 lesser of (a) the outstanding principal amount (or maximum principal
amount, if larger) of the Indebtedness in respect of which such Guaranty
Obligation is made and (b) the maximum amount for which such guaranteeing person
may be liable pursuant to the terms of the instrument embodying such Guaranty
Obligation.

         "Guarantor" shall mean any of the Domestic Subsidiaries identified as a
"Guarantor" on the signature pages hereto and the Additional Credit Parties
which execute a Joinder Agreement, together with their successors and permitted
assigns.

         "Guaranty" shall mean the guaranty of the Guarantors set forth in
Article X.

         "Hedging Agreements" shall mean, with respect to any Person, any
agreement entered into to protect such Person against fluctuations in interest
rates, or currency or raw materials values, including, without limitation, any
interest rate swap, cap or collar agreement or similar arrangement between such
Person and one or more counterparties, any foreign currency exchange agreement,
currency protection agreements, commodity purchase or option agreements or other
interest or exchange rate or commodity price hedging agreements.

         "Indebtedness" shall mean, 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, 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, (e) all obligations of such
Person under take-or-pay or similar arrangements or under commodities
agreements, (f) all Indebtedness of others secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on, 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, (g) all Guaranty Obligations of such Person
with respect to Indebtedness of another Person, (h) the principal portion of all
Capital Lease Obligations of such Person, (i) all net payment obligations of
such Person under Hedging Agreements, excluding any portion thereof which would
be accounted for as interest expense under GAAP, (j) the maximum amount of all
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), (k) 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, (l) the principal balance outstanding under any synthetic lease,
tax retention operating lease, off-balance sheet loan or similar off-balance
sheet financing product and (m) the Indebtedness of any partnership or
unincorporated joint venture in which such Person is a general partner or a
joint venturer; provided however that Indebtedness shall

                                       11

<PAGE>

not include Indebtedness among the Credit Parties to the extent such
Indebtedness would be eliminated on a Consolidated basis.

         "Insolvency" shall mean, with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of such term as used in
Section 4245 of ERISA.

         "Insolvent" shall mean being in a condition of Insolvency.

         "Intellectual Property" shall mean all Copyrights, Copyright Licenses,
Patents, Patent Licenses, Trademarks and Trademark Licenses except for standard,
off-the-shelf software, technology and similar Intellectual Property that costs
less than $5,000 per unit.

         "Interest Payment Date" shall mean (a) as to any Alternate Base Rate
Loan, the last day of each March, June, September and December and on the
Maturity Date, (b) as to any LIBOR Rate Loan having an Interest Period of three
months or less, the last day of such Interest Period, and (c) as to any LIBOR
Rate Loan having an Interest Period longer than three months, the day that is
three months after the first day of such Interest Period and the last day of
such Interest Period.

         "Interest Period" shall mean, with respect to any LIBOR Rate Loan,

                 (i) initially, the period commencing on the Borrowing Date or
        conversion date, as the case may be, with respect to such LIBOR Rate
        Loan and ending one, two, three or six months thereafter, as selected by
        the Borrower in the notice of borrowing or notice of conversion given
        with respect thereto; and

                 (ii) thereafter, each period commencing on the last day of the
        immediately preceding Interest Period applicable to such LIBOR Rate Loan
        and ending one, two, three or six months thereafter, as selected by the
        Borrower by irrevocable notice to the Administrative Agent not less than
        three Business Days prior to the last day of the then current Interest
        Period with respect thereto;

                           provided that the foregoing provisions are subject to
                  the following:

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

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

                                       12

<PAGE>

                           (C) if the Borrower shall fail to give notice as
                  provided above, the Borrower shall be deemed to have selected
                  an Alternate Base Rate Loan to replace the affected LIBOR Rate
                  Loan;

                           (D) no Interest Period in respect of any Loan shall
                  extend beyond the Maturity Date; and

                           (E) no more than five (5) LIBOR Rate Loans may be in
                  effect at any time. For purposes hereof, LIBOR Rate Loans with
                  different Interest Periods shall be considered as separate
                  LIBOR Rate Loans, even if they shall begin on the same date
                  and have the same duration, 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 LIBOR Rate Loan with a single Interest
                  Period.

         "Investment" shall mean all investments, in cash or by delivery of
property made, directly or indirectly in or to any Person, whether by
acquisition of shares of Capital Stock, property, assets, indebtedness or other
obligations or securities or by loan advance, capital contribution or otherwise.

         "Issuing Lender" shall mean Wachovia.

         "Issuing Lender Fees" shall have the meaning set forth in Section
2.4(c).

         "Joinder Agreement" shall mean a Joinder Agreement substantially in the
form of Schedule 5.10, executed and delivered by an Additional Credit Party in
accordance with the provisions of Section 5.10.

         "Lender" shall have the meaning set forth in the first paragraph of
this Agreement.

         "Letter of Credit Fee" shall have the meaning set forth in Section
2.4(b).

         "Letters of Credit" shall mean any letter of credit issued by the
Issuing Lender pursuant to the terms hereof, as such Letters of Credit may be
amended, modified, extended, renewed or replaced from time to time.

         "Leverage Ratio" means, for any Reference Period, as of the end of any
fiscal quarter of the Parent the ratio of (i) Funded Debt outstanding on such
date to (ii) Consolidated EBITDA for the Reference Period ending on such date.

         "LIBOR" shall mean, for any LIBOR Rate Loan for any Interest Period
therefor, the rate per annum (rounded upwards, if necessary, to the nearest
1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as the
London interbank offered rate for deposits in Dollars at approximately 11:00
a.m. (London time) two Business Days prior to the first day of such Interest
Period for a term comparable to such Interest Period. If for any reason such
rate is not available, the term "LIBOR" shall mean, for any LIBOR Rate Loan for
any Interest Period therefor, the rate per

                                       13

<PAGE>

annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
Reuters Screen LIBO Page as the London interbank offered rate for deposits in
Dollars at approximately 11:00 A.M. (London time) two Business Days prior to the
first day of such Interest Period for a term comparable to such Interest Period;
provided, however, if more than one rate is specified on Reuters Screen LIBO
Page, the applicable rate shall be the arithmetic mean of all such rates
(rounded upwards, if necessary, to the nearest 1/100 of 1%). If, for any reason,
neither of such rates is available, then "LIBOR" shall mean the rate per annum
at which, as determined by the Administrative Agent, Dollars in an amount
comparable to the Loans then requested are being offered to leading banks at
approximately 11:00 A.M. London time, two (2) Business Days prior to the
commencement of the applicable Interest Period for settlement in immediately
available funds by leading banks in the London interbank market for a period
equal to the Interest Period selected.

         "LIBOR Lending Office" shall mean, initially, the office of each Lender
designated as such Lender's LIBOR Lending Office shown on Schedule 9.2; and
thereafter, such other office of such Lender as such Lender may from time to
time specify to the Administrative Agent and the Borrower as the office of such
Lender at which the LIBOR Rate Loans of such Lender are to be made.

         "LIBOR Rate" shall mean a rate per annum (rounded upwards, if
necessary, to the next higher 1/100th of 1%) determined by the Administrative
Agent pursuant to the following formula:

                  LIBOR Rate =                       LIBOR
                                    ------------------------------------
                                    1.00 - Eurodollar Reserve Percentage

         "LIBOR Rate Loan" shall mean Loans the rate of interest applicable to
which is based on the LIBOR Rate.

         "Lien" shall mean any mortgage, pledge, hypothecation, assignment for
security purposes, deposit arrangement, encumbrance, lien (statutory or other),
charge or other security interest or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement and any Capital Lease having substantially the same economic effect as
any of the foregoing).

         "Loan" shall mean a Revolving Loan and/or a Swingline Loan as
appropriate.

         "LOC Commitment" shall mean the commitment of the Issuing Lender to
issue Letters of Credit and with respect to each Lender, the commitment of such
Lender to purchase participation interests in the Letters of Credit up to such
Lender's LOC Committed Amount as specified in Schedule 2.1(a), as such amount
may be reduced from time to time in accordance with the provisions hereof.

                                       14

<PAGE>

         "LOC Commitment Percentage" shall mean, for each Lender, the percentage
identified as its LOC 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 9.6(c).

         "LOC Committed Amount" shall have the meaning set forth in Section
2.2(a).

         "LOC Documents" shall mean, 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 (ii) any collateral security for such obligations.

         "LOC Obligations" shall mean, 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.

         "Maintenance Capital Expenditures" means Consolidated Capital
Expenditures which are not New Store Capital Expenditures, including without
limitation, facility upgrades for existing stores operated by the Parent or any
of its Subsidiaries.

         "Mandatory Borrowing" shall have the meaning set forth in Section
2.2(d), Section 2.2(e) and Section 2.3(b)(ii), as the context may require.

         "Maryland Subsidiaries" shall mean a collective reference to Red Robin
of Anne Arundel, Inc., Red Robin of Baltimore County, Inc., Red Robin of
Montgomery County, Inc., Red Robin of Howard County, Inc., Red Robin of Charles
County, Inc. and any other subsidiary of a Credit Party incorporated in the
state of Maryland for the purpose of holding liquor licenses.

         "Material Adverse Effect" shall mean a material adverse effect on (a)
the business, operations, property or condition (financial or otherwise) of the
Borrower and its Subsidiaries taken as a whole, (b) the ability of the Borrower
or any Guarantor to perform its obligations, when such obligations are required
to be performed, under this Agreement, any of the Notes or any other Credit
Document or (c) the validity or enforceability of this Agreement, any of the
Notes or any of the other Credit Documents or the rights or remedies of the
Administrative Agent or the Lenders hereunder or thereunder or the perfection or
priority of any Lien on any material property or material assets in favor of the
Administrative Agent.

         "Material Contract" shall mean any contract or agreement, whether
written or oral, to which any Credit Party or any of its Subsidiaries is a party
as to which the breach, nonperformance, cancellation or failure to renew by any
party thereto could reasonably be expected to have a Material Adverse Effect,
including the contracts and agreements set forth on Schedule 3.26.

                                       15

<PAGE>

         "Materials of Environmental Concern" shall mean 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 Law, including, without limitation, asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation.

         "Maturity Date" shall mean May 19, 2006.

         "Moody's" shall mean Moody's Investors Service, Inc.

         "Mortgage Instruments" shall mean the mortgages, deeds of trust or
deeds to secure debt encumbering the fee interest of the Credit Parties in the
Mortgaged Properties.

         "Mortgage Policy" shall mean, with respect to any Mortgage Instrument,
an ALTA mortgagee title insurance policy issued by a title insurance company
(the "Title Insurance Company") selected by the Borrower and reasonably
acceptable to the Administrative Agent, assuring the Administrative Agent that
such Mortgage Instrument creates a valid and enforceable first priority mortgage
lien on the Mortgaged Property encumbered by such Mortgage Instrument, free and
clear of all defects and encumbrances except Permitted Liens.

         "Mortgaged Properties" shall mean (a) the real properties of the Credit
Parties set forth on Schedule 5.16 and (b) any other real property of the Credit
Parties that the Administrative Agent is granted a Lien on pursuant to Section
5.12(b).

         "Multiemployer Plan" shall mean a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

          "Net Cash Proceeds" shall mean the aggregate cash proceeds received by
any Credit Party or any Subsidiary in respect of any Asset Disposition, Equity
Issuance or Debt Issuance, net of (a) direct costs (including, without
limitation, reasonable legal, accounting and investment banking fees, sales
commissions underwriting discounts and commissions and other customary fees and
expenses) and (b) taxes paid or payable as a result thereof; it being understood
that "Net Cash Proceeds" shall include, without limitation, any cash received
upon the sale or other disposition of any non-cash consideration received by any
Credit Party or any Subsidiary in any Asset Disposition, Equity Issuance or Debt
Issuance.

         "New Store Capital Expenditures" means Consolidated Capital
Expenditures relating to Permitted Acquisitions and/or the construction after
the Closing Date of new stores to be operated by the Parent or any of its
Subsidiaries.

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

         "Notice of Borrowing" shall mean the written notice of borrowing as
referenced and defined in Section 2.1(b)(i) or 2.3(b)(i), as appropriate.

                                       16

<PAGE>

         "Notice of Conversion" shall mean the written notice of extension or
conversion as referenced and defined in Section 2.9.

         "Obligations" shall mean, collectively, Loans and LOC Obligations and
all other obligations of the Credit Parties to the Administrative Agent and the
Lenders under the Credit Documents.

         "Operating Lease" shall mean, 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.

         "Parent" shall mean Red Robin Gourmet Burgers, Inc., a Delaware
corporation.

         "Participant" shall have the meaning set forth in Section 9.6(b).

         "Participation Interest" shall mean the purchase by a Lender of a
participation interest in Letters of Credit as provided in Section 2.2 and in
Swingline Loans as provided in Section 2.3.

         "Patent Licenses" shall mean all agreements, whether written or oral,
providing for the grant by or to a Person of any right to manufacture, use or
sell any invention covered by a Patent, including, without limitation, any
thereof referred to in Schedule 3.16 to the Agreement.

         "Patents" shall mean all letters patent of the United States or any
other country, now existing or hereafter arising, and all improvement patents,
reissues, reexaminations, patents of additions, renewals and extensions thereof,
including, without limitation, any thereof referred to in Schedule 3.16 to this
Agreement, and (ii) all applications for letters patent of the United States or
any other country, now existing or hereafter arising, and all provisionals,
divisions, continuations and continuations-in-part and substitutes thereof,
including, without limitation, any thereof referred to in Schedule 3.16 to this
Agreement.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA.

         "Permitted Acquisition" shall mean an acquisition or any series of
related acquisitions by a Credit Party of the assets or all of the Capital Stock
of a Person that is incorporated, formed or organized in the United States or
any division, line of business or other business unit of a Person that is
incorporated, formed or organized in the United States (such Person or such
division, line of business or other business unit of such Person referred to
herein as the "Target"), in each case that is a purchase or repurchase of a Red
Robin franchise, so long as (a) no Default or Event of Default shall then exist
or will exist after giving effect thereto, (b) the Credit Parties shall
demonstrate to the reasonable satisfaction of the Administrative Agent that the
Credit Parties will be in compliance on a pro forma basis upon the consummation
of any such acquisition with all of the terms and provisions of the financial
covenants set forth in Section 5.9, (c) the Administrative Agent, on behalf of
the Lenders, shall have received (or shall receive in

                                       17

<PAGE>

connection with the closing of such acquisition) a first priority perfected
security interest in all property (including, without limitation, Capital Stock)
acquired with respect to the Target, subject to Permitted Liens and the Target,
if a Person, shall have executed a Joinder Agreement in accordance with the
terms of Section 5.10, (d) the Target has earnings before interest, taxes,
depreciation and amortization for the four fiscal quarter prior to the
acquisition date in an amount greater than $0 and (e) such acquisition is not a
"hostile" acquisition and has been approved by the applicable Credit Party and
the Target.

         "Permitted Investments" shall mean:

                  (i) cash and Cash Equivalents not to exceed at any time
         $10,000,000 in the aggregate over any period of five (5) consecutive
         Business Days if, during such period, there are borrowings outstanding
         under Section 2.1 hereof;

                  (ii) receivables owing to any Credit Party or any of its
         Subsidiaries, and advances to suppliers and other extensions of trade
         credit, in each case if created, acquired or made in the ordinary
         course of business and payable or dischargeable in accordance with
         customary trade terms;

                  (iii) Investments or loans (pursuant to Section 6.1(d)) made
         by a Credit Party in or to another Credit Party;

                  (iv) loans and advances to officers, directors and employees
         in an aggregate amount not to exceed $500,000 at any time outstanding;

                  (v) Investments (including debt obligations) received in
         connection with the bankruptcy or reorganization of franchisees,
         suppliers and customers and in settlement of delinquent obligations of,
         and other disputes with franchisees, customers and suppliers arising in
         the ordinary course of business;

                  (vi) non-cash consideration received in connection with sales
         of property or assets permitted under Section 6.4(a);

                  (vii) Permitted Acquisitions;

                  (viii) Guaranty Obligations permitted by Section 6.3;

                  (ix) loans to officers, directors and employees to finance
         purchases of Capital Stock of the Parent in an aggregate amount not to
         exceed $500,000;

                  (x) Investments existing as of the Closing Date as set forth
         on Schedule 6.6;

                  (xi) Investments to the extent permitted under Section
         6.11(d); and

                                       18

<PAGE>

                  (xii) in addition to the Investments otherwise expressly
         permitted by this definition, other Investments by any Credit Party in
         an aggregate amount not to exceed $250,000 during the term of this
         Agreement.

         "Permitted Liens" shall mean:

                  (i) Liens created by or otherwise existing, under or in
         connection with this Agreement or the other Credit Documents in favor
         of the Lenders;

                  (ii) purchase money Liens securing purchase money indebtedness
         (and refinancings thereof) to the extent permitted under Section
         6.1(c);

                  (iii) Liens for taxes, assessments, charges or other
         governmental levies not yet due or as to which the period of grace (not
         to exceed 60 days), if any, related thereto has not expired or which
         are being contested in good faith by appropriate proceedings, provided
         that adequate reserves with respect thereto are maintained on the books
         of the Borrower or its Subsidiaries, as the case may be, in conformity
         with GAAP (or, in the case of Subsidiaries with significant operations
         outside of the United States of America, generally accepted accounting
         principles in effect from time to time in their respective
         jurisdictions of incorporation);

                  (iv) carriers', warehousemen's, mechanics', materialmen's,
         repairmen's inchoate, unperfected or other like Liens arising in the
         ordinary course of business which are not overdue for a period of more
         than 30 days or which are being contested in good faith by appropriate
         proceedings; provided that a reserve, bond or other appropriate
         provision shall have been made therefor;

                  (v) pledges or deposits in connection with workers'
         compensation, unemployment insurance and other social security
         legislation and deposits securing liability to insurance carriers under
         insurance or self-insurance arrangements in an aggregate amount not to
         exceed $250,000;

                  (vi) any interest or title of a lessor under any lease entered
         into by any Credit Party or any Subsidiary in the ordinary course of
         its business and covering only the assets so leased;

                  (vii) Liens existing on any property or asset (i) prior to the
         acquisition thereof by any Credit Party or any Subsidiary; provided
         that (A) such Lien is not created in contemplation of such acquisition
         and (B) such Lien does not apply to any other property or assets of the
         Credit Party or Subsidiary, or (ii) belonging to any Person prior to
         such Person becoming a Subsidiary pursuant to an acquisition permitted
         by the terms of this Agreement; provided that (A) such Lien is not
         created in contemplation of such acquisition and (B) such Lien does not
         apply to any other property or assets of a Credit Party or Subsidiary;

                                       19

<PAGE>

                  (viii) Liens consisting of conditional sale or other title
         retention agreements entered into in the ordinary course of business in
         an aggregate amount not to exceed $1,000,000;

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

                  (x) any extension, renewal or replacement (or successive
         extensions, renewals or replacements), in whole or in part, of any Lien
         referred to in the foregoing clauses (i)-(vi); provided that such
         extension, renewal or replacement Lien shall be limited to all or a
         part of the property which secured the Lien so extended, renewed or
         replaced (plus improvements on such property);

                  (xi) Liens existing on the Closing Date and set forth on
         Schedule 1.1-2; provided that (a) no such Lien shall at any time be
         extended to cover property or assets other than the property or assets
         subject thereto on the Closing Date and (b) the principal amount of the
         Indebtedness secured by such Liens shall not be increased, extended,
         renewed, refunded or refinanced;

                  (xii) Liens arising in connection with Indebtedness permitted
         under Section 6.1(c);

                  (xiii) easements, rights-of-way, zoning restrictions, minor
         defects or irregularities in title and other similar encumbrances not
         interfering in any material respect with the value or use of the
         property to which such lien is attached;

                  (xiv) Liens of Securities Intermediaries (as defined in the
         UCC), banks and other financial institutions in Deposit Accounts (as
         defined in the UCC), Securities Accounts (as defined in the UCC) and
         similar accounts;

                  (xv) any Lien with respect to judgments, orders or awards to
         the extent such judgments, orders or awards secured thereby shall not,
         either individually or in the aggregate, result in an Event of Default
         under Section 7.1(f);

                  (xvi) Liens in favor of a Lender hereunder in connection with
         Hedging Agreements, but only (A) to the extent such Liens secure
         obligations under Hedging Agreements with any Lender, or any Affiliate
         of a Lender, (B) to the extent such Liens are on the same Collateral as
         to which the Administrative Agent on behalf of the Lenders also has a
         Lien and (C) if such provider and the Lenders shall share pari passu in
         the Collateral subject to such Liens; and

                  (xvii) other Liens in addition to those permitted by the
         foregoing clauses securing Indebtedness in an aggregate amount not to
         exceed $500,000.

                                       20

<PAGE>

         "Person" shall mean an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever
nature.

         "Plan" shall mean, at any particular time, any employee benefit plan
which is covered by Title IV of ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an "employer" as defined in
Section 3(5) of ERISA.

         "Pledge Agreements" shall mean (i) the Amended and Restated Pledge
Agreement dated as of the Closing Date to be executed in favor of the
Administrative Agent by the Borrower and each of the other Credit Parties and
(ii) any other Pledge Agreement executed by a Credit Party to secure the Credit
Party Obligations, in each case as amended, modified, restated or supplemented
from time to time.

         "Prime Rate" shall have the meaning set forth in the definition of
Alternate Base Rate.

         "Properties" shall have the meaning set forth in Section 3.10(a).

         "Purchasing Lenders" shall have the meaning set forth in Section
9.6(c).

         "Recovery Event" shall mean theft, loss, physical destruction or
damage, taking or similar event with respect to any property or assets owned by
any Credit Party or any of its Subsidiaries which results in the receipt by any
Credit Party or any of its Subsidiaries of any cash insurance proceeds or
condemnation award payable by reason thereof.

         "Reference Period" means, as of any date of determination, the period
of four consecutive fiscal quarters of the Parent and its Subsidiaries ending on
such date.

         "Register" shall have the meaning set forth in Section 9.6(d).

         "Related Fund" shall mean, with respect to any Lender or other Person
who invests in commercial bank loans in the ordinary course of business, any
other fund or trust or entity that invests in commercial bank loans in the
ordinary course of business and is advised or managed by such or any other
Lender, by an Affiliate of such or any other Lender or other Persons or the same
investment advisor as such or any other Lender or by an Affiliate of such or any
other Lender or investment advisor.

         "Reorganization" shall mean, with respect to any Multiemployer Plan,
the condition that such Plan is in reorganization within the meaning of such
term as used in Section 4241 of ERISA.

         "Reportable Event" shall mean any of the events set forth in Section
4043(c) of ERISA, other than those events as to which the thirty-day notice
period is waived under PBGC Reg. ss.4043.

                                       21

<PAGE>

         "Required Lenders" shall mean Lenders holding in the aggregate greater
than 50% of (i) the Commitments (and Participation Interests therein) or (ii) if
the Commitments have been terminated, the outstanding Loans and Participation
Interests (including the Participation Interests of the Issuing Lender in any
Letters of Credit and of the Swingline Lender in Swingline Loans) provided,
however, that if any Lender shall be a Defaulting Lender at such time, then
there shall be excluded from the determination of Required Lenders, Obligations
(including Participation Interests) owing to such Defaulting Lender and such
Defaulting Lender's Commitments, or after termination of the Commitments, the
principal balance of the Obligations owing to such Defaulting Lender.

         "Requirement of Law" shall mean, as to any Person, the Certificate of
Incorporation and By-laws or other organizational or governing documents of such
Person, and each law, treaty, 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 any of its property or to which such Person or
any of its property is subject.

         "Responsible Officer" shall mean, as to (a) the Borrower, any of the
President, the Chief Executive Officer or the Chief Financial Officer or (b) any
other Credit Party, any duly authorized officer thereof.

         "Restricted Payment" shall mean (a) any dividend or other distribution,
direct or indirect, on account of any shares of any class of Capital Stock of
the Parent or any of its Subsidiaries, now or hereafter outstanding, (b) 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 the Parent or any of its Subsidiaries, now or hereafter outstanding,
(c) 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 the Parent or any of its Subsidiaries, now or hereafter outstanding,
(d) any payment or prepayment of principal or premium, if any, or interest on
redemption purchase, retirement, defeasance, sinking fund or similar payment
with respect to any Subordinated Debt, or (e) the payment by the Parent or any
of its Subsidiaries of any management or consulting fee to any Person or of any
salary, bonus or other form of compensation to any Person who is directly or
indirectly a significant partner, shareholder, owner or executive officer of any
such Person, to the extent such salary, bonus or other form of compensation is
not included in the corporate overhead of the Parent, the Borrower or such
Subsidiary.

         "Revolving Commitment" shall mean, with respect to each Lender, the
commitment of such Lender to make Revolving Loans in an aggregate principal
amount at any time outstanding up to such Lender's Revolving Committed Amount.

         "Revolving Commitment Percentage" shall mean, for each Lender, 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 9.6(c).

         "Revolving Committed Amount" shall have the meaning set forth in
Section 2.1.

                                       22

<PAGE>

         "Revolving Loans" shall have the meaning set forth in Section 2.1.

         "S&P" shall mean Standard & Poor's Ratings Group, a division of The
McGraw Hill Companies, Inc.

         "Sale Leaseback Property" shall have the meaning set forth in Section
6.12.

         "Sale Leaseback Transaction" shall have the meaning set forth in
Section 6.12.

         "Securities Act" shall mean the Securities Act of 1933, together with
any amendment thereto or replacement thereof and any rules or regulations
promulgated thereunder.

         "Securities Exchange Act" shall mean the Securities Exchange Act of
1934, together with any amendment thereto or replacement thereof and any rules
or regulations promulgated thereunder.

         "Security Agreements" shall mean (i) the Amended and Restated Security
Agreement dated as of the Closing Date given by the Borrower and the other
Credit Parties to the Administrative Agent and (ii) any other Security Agreement
executed by a Credit Party to secure the Credit Party Obligations, in each case
as amended, modified or supplemented from time to time in accordance with its
terms.

         "Security Documents" shall mean the Security Agreement, the Pledge
Agreement, the Mortgage Instruments and any other documents executed and
delivered in connection with the granting, attachment and perfection of the
Administrative Agent's security interests and liens arising thereunder,
including, without limitation, UCC financing statements.

         "Single Employer Plan" shall mean any Plan which is not a Multiemployer
Plan.

         "Snyder Group" shall mean, individually or collectively, Michael J.
Snyder, Stephen S. Snyder, any trust established by or for the benefit of
Michael J. Snyder or Stephen S. Snyder or their respective families and any
other Affiliate thereof.

         "Specified Sales" shall mean (a) the sale, transfer, lease or other
disposition of inventory and materials in the ordinary course of business and
(b) the sale, transfer or other disposition of cash or Cash Equivalents.

         "Subordinated Debt" shall mean any Indebtedness incurred by any Credit
Party which by its terms is specifically subordinated in right of payment to the
prior payment of the Credit Party Obligations.

         "Subsidiary" shall mean, as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other

                                       23

<PAGE>

managers of such corporation, partnership or other entity are at the time owned,
or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person. Unless otherwise
qualified, all references to a "Subsidiary" or to "Subsidiaries" in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.
Notwithstanding the foregoing the term "Subsidiary" shall not include the
inactive corporations set forth on Schedule 1.1-3 to the extent such
corporations shall remain inactive or be dissolved after the Closing Date.

         "Swingline Commitment" shall mean the commitment of the Swingline
Lender to make Swingline Loans in an aggregate principal amount at any time
outstanding up to the Swingline Committed Amount, and the commitment of the
Lenders to purchase participation interests in the Swingline Loans as provided
in Section 2.3(b)(ii), as such amounts may be reduced from time to time in
accordance with the provisions hereof.

         "Swingline Committed Amount" shall mean the amount of the Swingline
Lender's Swingline Commitment as specified in Section 2.3(a).

         "Swingline Lender" shall mean Wachovia.

         "Swingline Loan" or "Swingline Loans" shall have the meaning set forth
in Section 2.3(a).

         "Swingline Note" shall mean the promissory note of the Borrower in
favor of the Swingline Lender evidencing the Swingline Loans provided pursuant
to Section 2.3(d), as such promissory note may be amended, modified,
supplemented, extended, renewed or replaced from time to time.

         "Target" shall have the meaning set forth in the definition of
"Permitted Acquisitions."

         "Taxes" shall have the meaning set forth in Section 2.17.

         "Title Insurance Company" shall have the meaning set forth in the
definition of "Mortgage Policy."

         "Total Consideration" shall mean the total consideration paid or
payable in connection with any Permitted Acquisition including, without
limitation, payments made in cash, Capital Stock, assumed debt and earnout
obligations.

         "Trademark License" shall mean any agreement, whether written or oral,
providing for the grant by or to a Person of any right to use any Trademark,
including, without limitation, any thereof referred to in Schedule 3.16 to this
Agreement.

         "Trademarks" shall mean all trademarks, trade names, corporate names,
company names, business names, fictitious business names, service marks,
elements of package or trade dress of goods or services, logos and other source
or business identifiers (other than such items that are of de minimus value),
together with the goodwill associated therewith, now existing or hereafter

                                       24

<PAGE>

adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country or any political subdivision thereof,
including, without limitation, any thereof referred to in Schedule 3.16 to this
Agreement, and (ii) all renewals thereof including, without limitation, any
thereof referred to in Schedule 3.16.

         "Tranche" shall mean the collective reference to LIBOR Rate Loans whose
Interest Periods begin and end on the same day. A Tranche may sometimes be
referred to as a "LIBOR Tranche".

         "Transfer Effective Date" shall have the meaning set forth in each
Commitment Transfer Supplement.

         "2.17 Certificate" shall have the meaning set forth in Section 2.17.

         "Type" shall mean, as to any Loan, its nature as an Alternate Base Rate
Loan or LIBOR Rate Loan, as the case may be.

         "Voting Stock" shall mean, 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.

         "Wachovia" shall mean Wachovia Bank, National Association.

         "Works" shall mean all works which are subject to copyright protection
pursuant to Title 17 of the United States Code.

         Section 1.2       Other Definitional Provisions; Time References.

                  (a) Unless otherwise specified therein, all terms defined in
         this Agreement shall have the defined meanings when used in the Notes
         or other Credit Documents or any certificate or other document made or
         delivered pursuant hereto.

                  (b) The words "hereof", "herein" and "hereunder" and words of
         similar import when used in this Agreement shall refer to this
         Agreement as a whole and not to any particular provision of this
         Agreement, and Section, subsection, Schedule and Exhibit references are
         to this Agreement unless otherwise specified.

                  (c) For purposes of this Agreement and the other Credit
         Documents, any reference to a Lender party to a Hedging Agreement shall
         include (i) any Affiliate of a Lender party to a Hedging Agreement and
         (ii) any Person that was a Lender (or Affiliate of a Lender) under the
         Agreement at the time it entered into the Hedging Agreement that has
         ceased to be a Lender under the Agreement.

                                       25

<PAGE>

                  (d) The meanings given to terms defined herein shall be
         equally applicable to both the singular and plural forms of such terms.

                  (e) Unless otherwise expressly indicated, each time reference
         in any Credit Document shall be to Charlotte, North Carolina time.

         Section 1.3       Accounting Terms.

         Unless otherwise specified herein, all accounting terms used herein
shall be interpreted, all accounting determinations hereunder shall be made, and
all financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP applied on a basis consistent with the most recent audited
consolidated financial statements of the Parent delivered to the Lenders;
provided that, if the Borrower shall notify the Administrative Agent that it
wishes to amend any covenant in Section 5.9 to eliminate the effect of any
change in GAAP on the operation of such covenant (or if the Administrative Agent
notifies the Borrower that the Required Lenders wish to amend Section 5.9 for
such purpose), then compliance with such covenant shall be determined on the
basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in
a manner satisfactory to the Borrower and the Required Lenders.

         The Borrower shall deliver to the Administrative Agent and each Lender
at the same time as the delivery of any annual or quarterly financial statements
given in accordance with the provisions of Section 5.1, (a) a description in
reasonable detail of any material change in the application of accounting
principles employed in the preparation of such financial statements from those
applied in the most recently preceding quarterly or annual financial statements
as to which no objection shall have been made in accordance with the provisions
above and (b) a reasonable estimate of the effect on the financial statements on
account of such changes in application.

         For purposes of computing the financial covenants set forth in Section
5.9 for any applicable test period, any Permitted Acquisition or permitted sale
of assets (including a stock sale) shall have been deemed to have taken place as
of the first day of such applicable test period.

                                   ARTICLE II

                           THE LOANS; AMOUNT AND TERMS

         Section 2.1       Revolving Loans.

         (a) Revolving Commitment. During the Commitment Period, subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans ("Revolving Loans") to the Borrower from time to time in an
aggregate principal amount of up to such Lender's Revolving Commitment
Percentage of EIGHTY-FIVE MILLION DOLLARS ($85,000,000) (as such aggregate
maximum amount may be reduced from time to time as

                                       26

<PAGE>

provided in Section 2.5, the "Revolving Committed Amount") for the purposes
hereinafter set forth; provided, however, that (i) with regard to each Lender
individually, the sum of such Lender's share of outstanding Revolving Loans plus
such Lender's Revolving Commitment Percentage of outstanding Swingline Loans
plus such Lender's LOC Commitment Percentage of LOC Obligations shall not exceed
such Lender's Revolving Commitment, and (ii) with regard to the Lenders
collectively, the sum of the outstanding Revolving Loans plus outstanding
Swingline Loans plus outstanding LOC Obligations shall not exceed the Revolving
Committed Amount. Revolving Loans may consist of Alternate Base Rate Loans or
LIBOR Rate Loans, or a combination thereof, as the Borrower may request, and may
be repaid and reborrowed in accordance with the provisions hereof. LIBOR Rate
Loans shall be made by each Lender at its LIBOR Lending Office and Alternate
Base Rate Loans at its Domestic Lending Office.

         (b) Revolving Loan Borrowings.

                  (i) Notice of Borrowing. The Borrower may request a Revolving
         Loan borrowing by written notice (or telephone notice promptly
         confirmed in writing which confirmation may be by facsimile) to the
         Administrative Agent not later than 11:00 a.m. on the date of the
         requested borrowing in the case of Alternate Base Rate Loans, and on
         the third Business Day prior to the date of the requested borrowing in
         the case of LIBOR Rate 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, (D) whether
         the borrowing shall be comprised of Alternate Base Rate Loans, LIBOR
         Rate Loans or a combination thereof, and if LIBOR Rate Loans are
         requested, the Interest Period(s) therefor. A form of Notice of
         Borrowing (a "Notice of Borrowing") is attached as Schedule 2.1(b)(i).
         If the Borrower shall fail to specify in any such Notice of Borrowing
         (I) an applicable Interest Period in the case of a LIBOR Rate 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 an Alternate Base Rate Loan
         hereunder. The Administrative Agent shall give notice to each Lender
         promptly upon receipt of each Notice of Borrowing, the contents thereof
         and each such Lender's share thereof. All Revolving Loans made on the
         Closing Date and on any of the three Business Days following the
         Closing Date shall bear interest at the Alternate Base Rate.

                  (ii) Minimum Amounts. Each Revolving Loan which is an
         Alternate Base Rate Loan shall be in a minimum aggregate amount of
         $500,000 and in integral multiples of $100,000 in excess thereof (or
         the remaining amount of the Revolving Committed Amount, if less). Each
         Revolving Loan which is a LIBOR Rate Loan shall be in a minimum
         aggregate amount of $1,000,000 and in integral multiples of $500,000 in
         excess thereof.

                  (iii) Advances. Each Lender will make its Revolving Commitment
         Percentage of each Revolving Loan borrowing available to the
         Administrative Agent for the account of the Borrower at the office of
         the Administrative Agent specified in Schedule 9.2, or at such other
         office as the Administrative Agent may designate in writing, by 1:00
         p.m. on

                                       27

<PAGE>

         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 Lenders 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.

         (d) Interest. Subject to the provisions of Section 2.8, Revolving Loans
shall bear interest as follows:

                  (i) Alternate Base Rate Loans. During such periods as
         Revolving Loans shall be comprised of Alternate Base Rate Loans, each
         such Alternate Base Rate Loan shall bear interest at a per annum rate
         equal to the sum of the Alternate Base Rate plus the Applicable
         Percentage; and

                  (ii) LIBOR Rate Loans. During such periods as Revolving Loans
         shall be comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall
         bear interest at a per annum rate equal to the sum of the LIBOR Rate
         plus the Applicable Percentage.

         Interest on Revolving Loans shall be payable in arrears on each
Interest Payment Date.

         (e) Revolving Notes. At the request of any Lender, such Lender's
Revolving Commitment shall be evidenced by a duly executed promissory note of
the Borrower to such Lender in substantially the form of Schedule 2.1(e).

         Section 2.2       Letter of Credit Subfacility.

         (a) Issuance. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which the Issuing Lender
may reasonably require, during the Commitment Period the Issuing Lender shall
issue, and the Lenders shall participate in, Letters of Credit for the account
of the Borrower from time to time upon request in a form acceptable to the
Issuing Lender; provided, however, that (i) the aggregate amount of LOC
Obligations shall not at any time exceed TWO MILLION FIVE HUNDRED THOUSAND
DOLLARS ($2,500,000) (the "LOC Committed Amount"), (ii) the sum of outstanding
Revolving Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall not at any time exceed the Revolving Committed Amount, (iii)
all Letters of Credit shall be denominated in U.S. Dollars and (iv) Letters of
Credit shall be issued for lawful corporate purposes and may be issued as
standby letters of credit, including in connection with workers' compensation
and other insurance programs. Except as otherwise expressly agreed upon by all
the Lenders, no Letter of Credit shall have an original expiry date more than
one year from the date of issuance; provided, however, so long as no Default or
Event of Default has occurred and is continuing and subject to the other terms
and conditions to the issuance of Letters of Credit hereunder, the expiry dates
of Letters of Credit may be extended annually or periodically from

                                       28

<PAGE>

time to time on the request of the Borrower or by operation of the terms of the
applicable Letter of Credit to a date not more than one year from the date of
extension; provided, further, that no Letter of Credit, as originally issued or
as extended, shall have an expiry date extending beyond the date that is thirty
(30) days prior to the Maturity Date. Each Letter of Credit shall comply with
the related LOC Documents. The issuance and expiry date of each Letter of Credit
shall be a Business Day. Any Letters of Credit issued hereunder shall be in a
minimum original face amount of $100,000. Wachovia shall be the Issuing Lender
on all Letters of Credit issued after the Closing Date.

         (b) Notice and Reports. The request for the issuance of a Letter of
Credit shall be submitted to the Issuing Lender at least five (5) Business Days
prior to the requested date of issuance. The Issuing Lender will promptly upon
request provide to the Administrative Agent for dissemination to the Lenders 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 any prior report, and including therein, among other things, the
account party, the beneficiary, the face amount, expiry date as well as any
payments or expirations which may have occurred. The Issuing Lender will further
provide to the Administrative Agent promptly upon request copies of the Letters
of Credit. The Issuing Lender will provide to the Administrative Agent promptly
upon request a summary report of the nature and extent of LOC Obligations then
outstanding.

         (c) Participations. Each Lender with a Revolving Commitment, upon
issuance of a Letter of Credit, shall be deemed to have purchased without
recourse a risk participation 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 LOC Commitment Percentage of the obligations
under such Letter of Credit and shall absolutely, unconditionally and
irrevocably assume, as primary obligor and not as surety, and be obligated to
pay to the Issuing Lender therefor and discharge when due, its LOC Commitment
Percentage of the obligations arising under such Letter of Credit. Without
limiting the scope and nature of each Lender's participation in any Letter of
Credit, to the extent that the Issuing Lender has not been reimbursed as
required hereunder or under any LOC Document, each such Lender shall pay to the
Issuing Lender its LOC Commitment Percentage of such unreimbursed drawing in
same day funds on the day of notification by the Issuing Lender of an
unreimbursed drawing pursuant to and in accordance with the provisions of
subsection (d) hereof. The obligation of each Lender 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 and the
Administrative Agent. The Borrower shall reimburse the Issuing Lender on the day
of drawing under any Letter of Credit (with the proceeds of a Revolving Loan
obtained hereunder or otherwise) in same day funds as provided herein or in the
LOC Documents. If the Borrower shall fail to reimburse the Issuing Lender as
provided herein, the unreimbursed amount of such drawing shall bear interest at
a per annum rate equal to the ABR Default Rate for so long as such amount shall
be unreimbursed. Unless the

                                       29

<PAGE>

Borrower shall immediately notify the Issuing Lender and the Administrative
Agent of its intent to otherwise reimburse the Issuing Lender, the Borrower
shall be deemed to have requested a Revolving Loan (a "Mandatory Borrowing") in
the amount of the drawing as provided in subsection (e) hereof, the proceeds of
which will be used to satisfy the reimbursement obligations. The Borrower's
reimbursement obligations hereunder shall be absolute and unconditional under
all circumstances irrespective of any rights of set-off, counterclaim or defense
to payment the Borrower may claim or have against the Issuing Lender, the
Administrative Agent, the Lenders, 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 to receive consideration or the legality, validity,
regularity or unenforceability of the Letter of Credit. The Issuing Lender will
promptly notify the other Lenders of the amount of any unreimbursed drawing and
each Lender 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 Lender's LOC Commitment Percentage of such unreimbursed drawing. Such
payment shall be made on the day such notice is received by such Lender from the
Issuing Lender if such notice is received at or before 2:00 p.m., otherwise such
payment shall be made at or before 12:00 Noon on the Business Day next
succeeding the day such notice is received. If such Lender does not pay such
amount to the Issuing Lender in full upon such request, such Lender 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 Lender 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 of drawing, the
Federal Funds Effective Rate and thereafter at a rate equal to the Alternate
Base Rate. Each Lender'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 Agreement or the Commitments hereunder, the
existence of a Default or Event of Default or the acceleration of the Credit
Party Obligations hereunder and shall be made without any offset, abatement,
withholding or reduction whatsoever.

         (e) Repayment with Revolving Loans. On any day on which the Borrower
shall have requested, or been deemed to have requested, a Revolving Loan to
reimburse a drawing under a Letter of Credit, the Administrative Agent shall
give notice to the Lenders that a Revolving Loan has been requested or deemed
requested in connection with a drawing under a Letter of Credit, in which case a
Revolving Loan borrowing comprised entirely of Alternate Base Rate Loans (each
such borrowing, a "Mandatory Borrowing") shall be immediately made (without
giving effect to any termination of the Commitments pursuant to Section 7.2) pro
rata based on each Lender's respective Revolving Commitment Percentage
(determined before giving effect to any termination of the Commitments pursuant
to Section 7.2). The proceeds of such Mandatory Borrowing shall be paid directly
to the Issuing Lender for application to the respective LOC Obligations. Each
Lender hereby irrevocably agrees to make such Revolving Loans immediately upon
any such request or deemed request on account of each Mandatory Borrowing in the
amount and in the manner specified in the preceding sentence and on the same
such date notwithstanding (i) the amount of Mandatory Borrowing may not comply
with the minimum amount (or integral amount in excess thereof) for borrowings of
Revolving Loans otherwise required hereunder, (ii) whether any conditions
specified in Section 4.2 are then satisfied, (iii) whether a Default or an Event
of Default then exists, (iv) failure for any such request or

                                       30

<PAGE>

deemed request for Revolving Loan to be made by the time otherwise required in
Section 2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any reduction
in the Revolving Committed Amount after any such Letter of Credit may have been
drawn upon; provided, however, that in the event any such Mandatory Borrowing
should be less than the minimum amount for borrowings of Revolving Loans
otherwise provided in Section 2.1(b)(ii), the Borrower shall pay to the
Administrative Agent for its own account an administrative fee of $500. In the
event that any Mandatory Borrowing 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), then each such Lender
hereby agrees that it shall forthwith fund (as of the date the Mandatory
Borrowing would otherwise have occurred, but adjusted for any payments received
from the Borrower on or after such date and prior to such purchase) its
Participation Interests in the outstanding LOC Obligations; provided, further,
that in the event any Lender shall fail to fund its Participation Interest on
the day the Mandatory Borrowing would otherwise have occurred, then the amount
of such Lender's unfunded Participation Interest therein shall bear interest
payable by such Lender to the Issuing Lender upon demand, at the rate equal to,
if paid within two (2) Business Days of such date, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate.

         (f) Modification, Extension. The issuance of any supplement,
modification, amendment, renewal, or extension to 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.

         (g) Uniform Customs and Practices/ISP 98. The Issuing Lender shall have
the Letters of Credit be subject to The Uniform Customs and Practice for
Documentary Credits (the "UCP") or the International Standby Practices 1998 (the
"ISP98"), in either case as published as of the date of issue by the
International Chamber of Commerce, in which case the UCP or the ISP98, as
applicable may be incorporated therein and deemed in all respects to be a part
thereof.

         Section 2.3       Swingline Loan Subfacility.

         (a) Swingline Commitment. During the Commitment Period, subject to the
terms and conditions hereof, the Swingline Lender, in its individual capacity,
agrees to make certain revolving credit loans to the Borrower (each a "Swingline
Loan" and, collectively, the "Swingline Loans") for the purposes hereinafter set
forth; provided, however, (i) the aggregate amount of Swingline Loans
outstanding at any time shall not exceed THREE MILLION DOLLARS ($3,000,000) (the
"Swingline Committed Amount"), and (ii) the sum of the outstanding Revolving
Loans plus outstanding Swingline Loans plus outstanding LOC Obligations shall
not exceed the Revolving Committed Amount. Swingline Loans hereunder may be
repaid and reborrowed in accordance with the provisions hereof.

         (b) Swingline Loan Borrowings.

                  (i) Swingline Loan Borrowings and Disbursements. The Swingline
         Lender will make Swingline Loans available to the Borrower on any
         Business Day (A) upon request made by the Borrower not later than 12:00
         Noon on such Business Day by delivery to the Swingline Lender of a
         notice of request for Swingline Loan borrowing in

                                       31

<PAGE>

         the form of Schedule 2.1(b)(i) with appropriate modifications or (B)
         in accordance with the lending mechanics and other terms of the
         Autoborrow Feature, upon the event that expenses charged to the
         Borrower's Concentration Account shall exceed the available cash
         deposits in such Concentration Account in an amount equal to such
         excess. Swingline Loans issued pursuant to subclause (A) above shall be
         made in minimum amounts of $100,000 and in integral amounts of $50,000
         in excess thereof.

                  (ii) Repayment of Swingline Loans. Each Swingline Loan
         borrowing shall be due and payable on the earlier of (A) the seventh
         day after the date of such Swingline Loan borrowing and (B) the
         Maturity Date. The Swingline Lender may, at any time, in its sole
         discretion, by written notice to the Borrower and the Administrative
         Agent, demand repayment of its Swingline Loans by way of a Revolving
         Loan borrowing, in which case the Borrower shall be deemed to have
         requested a Revolving Loan borrowing comprised entirely of Alternate
         Base Rate Loans in the amount of such Swingline Loans; provided,
         however, that, in the following circumstances, any such demand shall
         also be deemed to have been given one Business Day prior to each of (w)
         the Maturity Date, (x) the occurrence of any Event of Default described
         in Section 7.1(e), (y) upon acceleration of the Credit Party
         Obligations hereunder, whether on account of an Event of Default
         described in Section 7.1(e) or any other Event of Default, and (z) the
         exercise of remedies in accordance with the provisions of Section 7.2
         hereof (each such Revolving Loan borrowing made on account of any such
         deemed request therefor as provided herein being hereinafter referred
         to as "Mandatory Borrowing"). Each Lender hereby irrevocably agrees to
         make such Revolving Loans promptly upon any such request or deemed
         request on account of each Mandatory Borrowing in the amount and in the
         manner specified in the preceding sentence and on the same such date
         notwithstanding (I) the amount of Mandatory Borrowing may not comply
         with the minimum amount for borrowings of Revolving Loans otherwise
         required hereunder, (II) whether any conditions specified in Section
         4.2 are then satisfied, (III) whether a Default or an Event of Default
         then exists, (IV) failure of any such request or deemed request for
         Revolving Loans to be made by the time otherwise required in Section
         2.1(b)(i), (V) the date of such Mandatory Borrowing, or (VI) any
         reduction in the Revolving Commitment or termination of the Revolving
         Commitments immediately prior to such Mandatory Borrowing or
         contemporaneously therewith. In the event that any Mandatory Borrowing
         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), then each Lender hereby agrees
         that it shall forthwith purchase (as of the date the Mandatory
         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 Swingline Lender such participations in the
         outstanding Swingline Loans as shall be necessary to cause each such
         Lender to share in such Swingline Loans ratably based upon its
         respective Revolving Commitment Percentage (determined before giving
         effect to any termination of the Commitments pursuant to Section 7.2)
         provided that (A) all interest payable on the Swingline Loans shall be
         for the account of the Swingline Lender until the date as of which the
         respective participation is purchased, and (B) at the time any purchase
         of participations pursuant to this sentence is actually made, the
         purchasing Lender shall be required to pay to the Swingline Lender
         interest on the principal amount

                                       32

<PAGE>

         of such participation purchased for each day from and including the day
         upon which the purchase occurs hereunder to but excluding the date of
         payment for such participation, at the rate equal to, if paid within
         two (2) Business Days of the date of the Mandatory Borrowing, the
         Federal Funds Effective Rate, and thereafter at a rate equal to the
         Alternate Base Rate.

         (c) Interest on Swingline Loans. Subject to the provisions of Section
2.8, Swingline Loans shall bear interest at a per annum rate equal to the
Alternate Base Rate plus the applicable Percentage for Revolving Loans that are
Alternate Base Rate Loans. Interest on Swingline Loans shall be payable in
arrears on each Interest Payment Date.

         (d) Swingline Note. The Swingline Loans shall be evidenced by a duly
executed promissory note of the Borrower to the Swingline Lender in the original
amount of the Swingline Committed Amount and substantially in the form of
Schedule 2.3(d).

         Section 2.4       Fees.

         (a) Commitment Fee. In consideration of the Revolving Commitments, the
Borrower agrees to pay to the Administrative Agent, for the ratable benefit of
the Lenders, a commitment fee (the "Commitment Fee") in an amount equal to 0.50%
per annum on the average daily unused portion of the Revolving Committed Amount.
For purposes of computing the Commitment Fee, LOC Obligations shall be
considered usage of the Revolving Committed Amount but Swingline Loans shall not
be considered usage of the Revolving Committed Amount. The Commitment Fee shall
be payable quarterly in arrears on the 15th day following the last day of each
calendar quarter for the prior calendar quarter.

         (b) Letter of Credit Fees. In consideration of the LOC Commitments, the
Borrower agrees to pay to the Issuing Lender, for the benefit of the Lenders, a
fee (the "Letter of Credit Fee") equal to the Applicable Percentage per annum on
the average daily maximum amount available to be drawn under each Letter of
Credit from the date of issuance to the date of expiration. In addition to such
Letter of Credit Fee, the Issuing Lender may charge, and retain for its own
account without sharing by the other Lenders, an additional facing fee of
one-eighth of one percent (1/8%) per annum on the average daily maximum amount
available to be drawn under each such Letter of Credit issued by it. The Issuing
Lender shall promptly pay over to the Administrative Agent for the ratable
benefit of the Lenders, for the benefit of all Lenders having a Revolving
Commitment (including the Issuing Lender), the Letter of Credit Fee. The Letter
of Credit Fee shall be payable quarterly in arrears on the 15th day following
the last day of each calendar quarter for such calendar quarter.

         (c) Issuing Lender Fees. In addition to the Letter of Credit Fees
payable pursuant to subsection (b) hereof, the Borrower shall pay to the Issuing
Lender, for its own account without sharing by the other Lenders, the reasonable
and customary charges from time to time of the Issuing Lender with respect to
the amendment, transfer, administration, cancellation and conversion of, and
drawings under, such Letters of Credit (collectively, the "Issuing Lender
Fees").

                                       33

<PAGE>

         (d) Administrative Fee. The Borrower agrees to pay to the
Administrative Agent the annual administrative fee as described in the Fee
Letter.

         Section 2.5       Commitment Reductions.

         (a) Voluntary Reductions. The Borrower shall have the right to
terminate or permanently reduce the unused portion of the Revolving Committed
Amount at any time or from time to time upon not less than five Business Days'
prior notice to the Administrative Agent (which shall notify the Lenders thereof
as soon as practicable) of each such termination or reduction, which notice
shall specify the effective date thereof and the amount of any such reduction
which shall be in a minimum amount of $1,000,000 or a whole multiple of $500,000
in excess thereof and shall be irrevocable and effective upon receipt by the
Administrative Agent; provided that no such reduction or termination shall be
permitted if after giving effect thereto, and to any prepayments of the Loans
made on the effective date thereof, the sum of the outstanding Revolving Loans
plus outstanding Swingline Loans plus outstanding LOC Obligations would exceed
the Revolving Committed Amount.

         (b) Mandatory Reductions. On any date that the Revolving Loans are
required to be prepaid pursuant to the terms of Section 2.6(b)(ii) - (iv), the
Revolving Committed Amount shall be automatically permanently reduced by the
amount of such required prepayment and/or reduction.

         (c) Maturity Date. The Revolving Commitment, the Swingline Commitment
and the LOC Commitment shall automatically terminate on the Maturity Date.

         Section 2.6       Prepayments.

         (a) Optional 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 an Alternate Base Rate Loan shall be in a minimum
principal amount of $500,000 and integral multiples of $100,000 in excess
thereof or, if less, the unpaid balance thereof, (ii) each partial prepayment of
a LIBOR Rate Loan shall be in a minimum principal amount of $1,000,000 and
integral multiples of $500,000 in excess thereof or, if less, the unpaid balance
thereof, and (iii) each partial prepayment of a Swingline Loan shall be in a
minimum principal amount of $100,000 and integral multiples of $50,000 in excess
thereof or the unpaid balance thereof, if less. The Borrower shall give three
Business Days' irrevocable notice in the case of LIBOR Rate Loans and one
Business Day's irrevocable notice in the case of Alternate Base Rate Loans to
the Administrative Agent (which shall notify the Lenders thereof as soon as
practicable). Each prepayment pursuant to this Section 2.6(a) shall be applied
to the outstanding Loans as the Borrower may elect; provided, however, each
prepayment shall be applied first to Alternate Base Rate Loans and then to LIBOR
Rate Loans in direct order of Interest Period maturities. All prepayments under
this Section 2.6(a) shall be subject to Section 2.16, but otherwise without
premium or penalty. Interest on the principal amount prepaid shall be payable on
the next occurring Interest Payment Date that would have occurred had such Loan
not been prepaid or, at the request of the Administrative Agent, interest on the
principal amount prepaid shall be payable on any date that a prepayment is made
hereunder through the date of prepayment.

                                       34

<PAGE>

         (b)      Mandatory Prepayments.

                  (i) Revolving Committed Amount. If at any time after the
         Closing Date, the sum of the outstanding Revolving Loans plus
         outstanding Swingline Loans plus outstanding LOC Obligations shall
         exceed the Revolving Committed Amount, the Borrower immediately shall
         prepay the Revolving Loans in an amount sufficient to eliminate such
         excess (such prepayment to be applied as set forth in clause (v)
         below).

                  (ii) Asset Dispositions. Promptly following one or more Asset
         Dispositions in excess of $500,000 in the aggregate in any fiscal year,
         the Borrower shall prepay the Loans in an aggregate amount equal to the
         Net Cash Proceeds derived from such Asset Disposition (such prepayment
         to be applied as set forth in clause (v) below); provided, however,
         that such Net Cash Proceeds shall not be required to be so applied to
         the extent the Borrower delivers to the Administrative Agent a
         certificate stating that the Borrower (or a Guarantor) intends to use
         such Net Cash Proceeds to acquire fixed or capital assets useful in its
         business within 180 days of the receipt of such Net Cash Proceeds, it
         being expressly agreed that any Net Cash Proceeds not so reinvested
         shall be applied to repay the Loans (such prepayment to be applied as
         set forth in clause (v) below) immediately following the 180th day
         occurring after the receipt by a Credit Party of such Net Cash
         Proceeds; provided, however that Net Cash Proceeds received from the
         sale of the properties set forth on Schedule 2.6(b)(ii) shall not be
         required to be so applied and no reduction in the Revolving Commitment
         shall occur as a result thereof.

                  (iii) Issuances. Immediately upon receipt by any Credit Party
         or any of its Subsidiaries of proceeds from any Debt Issuance, the
         Borrower shall prepay the Loans in an aggregate amount equal to one
         hundred percent (100%) of the Net Cash Proceeds of such Debt Issuance
         to the Lenders (such prepayment to be applied as set forth in clause
         (v) below).

                  (iv) Recovery Event. To the extent of cash proceeds received
         in connection with all Recovery Events in any fiscal year exceeds
         $500,000 in the aggregate and are not used to acquire or repair fixed
         or capital assets useful in its business within 180 days of the receipt
         of such cash proceeds, immediately following the 180th day occurring
         after the receipt of such cash proceeds, the Borrower shall prepay the
         Loans in an aggregate amount equal to one hundred percent (100%) of
         such cash proceeds (such prepayment to be applied as set forth in
         clause (v) below).

                  (v) Application of Mandatory Prepayments. All amounts required
         to be paid pursuant to this Section 2.6(b) shall be applied as follows:
         (A) with respect to all amounts prepaid pursuant to Section 2.6(b)(i),
         (1) first to the outstanding Swingline Loans (without any reduction in
         the Revolving Commitments), (2) second to the outstanding Revolving
         Loans (without any reduction in the Revolving Commitments) and (3)
         third to a cash collateral account in respect of outstanding LOC
         Obligations, (B) with respect to all amounts prepaid pursuant to
         Sections 2.6(b)(ii) through (iv), (1) first to the outstanding
         Swingline Loans (with a corresponding reduction in the Revolving

                                       35

<PAGE>

         Commitments), (2) second to the outstanding Revolving Loans (with a
         corresponding reduction in the Revolving Commitments) and (3) third to
         a cash collateral account in respect of outstanding LOC Obligations.
         Within the parameters of the applications set forth above, prepayments
         shall be applied first to Alternate Base Rate Loans and then to LIBOR
         Rate Loans in direct order of Interest Period maturities. All
         prepayments under this Section 2.6(b) shall be subject to Section 2.16
         and be accompanied by interest on the principal amount prepaid through
         the date of prepayment.

                  Notwithstanding the foregoing provisions of this Section 2.6,
         if at any time any prepayment of the Loans pursuant to Section 2.6
         would result, after giving effect to the LIBOR Rate Loans being prepaid
         other than on the last day of an Interest Period with respect thereto,
         then the Borrower, so long as no Event of Default shall have occurred
         and be continuing, may deposit the amount that otherwise would have
         been paid in respect of such LIBOR Rate Loans with the Administrative
         Agent to be held as security for the obligation of the Borrower to make
         such prepayment pursuant to a cash collateral agreement to be entered
         into on terms reasonably satisfactory to the Administrative Agent, with
         such cash collateral to be directly applied upon the first occurrence
         thereafter of the last day of any Interest Period with respect to such
         LIBOR Rate Loans.

         (c) Hedging Obligations Unaffected. Any prepayment made pursuant to
this Section 2.6 shall not affect the Borrower's obligation to continue to make
payments under any Hedging Agreement, which shall remain in full force and
effect notwithstanding such prepayment, subject to the terms of such Hedging
Agreement.

         Section 2.7       Minimum Principal Amount of Tranches.

         All borrowings, payments and prepayments (except as required by Section
2.6(b)) in respect of Revolving Loans shall be in such amounts and be made
pursuant to such elections so that after giving effect thereto the aggregate
principal amount of the Revolving Loans shall be (a) with respect to Alternate
Base Rate Loans, in an outstanding amount equal to $500,000 and integral
multiples of $100,000 in excess thereof and (b) with respect to LIBOR Rate
Loans, in an outstanding amount equal to $1,000,000 and integral multiples of
$500,000 in excess thereof.

         Section 2.8       Default Rate and Payment Dates.

         Upon the occurrence, and during the continuance, of an Event of
Default, 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 at the ABR Default Rate).

         Section 2.9       Conversion Options.

         (a) The Borrower may, in the case of Revolving Loans, elect from time
to time to convert Alternate Base Rate Loans to LIBOR Rate Loans, by giving the
Administrative Agent at least three Business Days' prior irrevocable written
notice of such election. A form of Notice of

                                       36

<PAGE>

Conversion/ Extension is attached as Schedule 2.9. If the date upon which an
Alternate Base Rate Loan is to be converted to a LIBOR Rate Loan is not a
Business Day, then such conversion shall be made on the next succeeding Business
Day and during the period from such last day of an Interest Period to such
succeeding Business Day such Loan shall bear interest as if it were an Alternate
Base Rate Loan. All or any part of outstanding Alternate Base Rate Loans may be
converted as provided herein, provided that (i) no Loan may be converted into a
LIBOR Rate Loan when any Default or Event of Default has occurred and is
continuing and (ii) partial conversions shall be in an aggregate principal
amount of $1,000,000 or a whole multiple of $500,000 in excess thereof.

         (b) Any LIBOR Rate Loans may be continued as such upon the expiration
of an Interest Period with respect thereto by compliance by the Borrower with
the notice provisions contained in Section 2.9(a); provided, that no LIBOR Rate
Loan may be continued as such when any Default or Event of Default has occurred
and is continuing, in which case such Loan shall be automatically converted to
an Alternate Base Rate Loan at the end of the applicable Interest Period with
respect thereto. If the Borrower shall fail to give timely notice of an election
to continue a LIBOR Rate Loan, or the continuation of LIBOR Rate Loans is not
permitted hereunder, such LIBOR Rate Loans shall be automatically converted to
Alternate Base Rate Loans at the end of the applicable Interest Period with
respect thereto.

         Section 2.10      Computation of Interest and Fees.

         (a) Interest payable hereunder with respect to Alternate Base Rate
Loans based on the Prime Rate shall be calculated on the basis of a year of 365
days (or 366 days, as applicable) for the actual days elapsed. All other fees,
interest and all other amounts payable hereunder shall be calculated on the
basis of a 360 day year for the actual days elapsed. The Administrative Agent
shall as soon as practicable notify the Borrower and the Lenders of each
determination of a LIBOR Rate on the Business Day of the determination thereof.
Any change in the interest rate on a Loan resulting from a change in the
Alternate Base Rate shall become effective as of the opening of business on the
day on which such change in the Alternate Base Rate shall become effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of the effective date and the amount of each such change.

         (b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the computations used by the Administrative Agent
in determining any interest rate.

         (c) It is the intent of the Lenders and the Credit Parties to conform
to and contract in strict compliance with applicable usury law from time to time
in effect. All agreements between the Lenders and the Credit Parties are hereby
limited by the provisions of this paragraph which shall override and control all
such agreements, whether now existing or hereafter arising and whether written
or oral. In no way, nor in any event or contingency (including but not limited
to prepayment or acceleration of the maturity of any Obligation), shall the
interest taken, reserved, contracted for, charged, or received under this
Agreement, under the Notes or otherwise, exceed

                                       37

<PAGE>

the maximum nonusurious amount permissible under applicable law. If, from any
possible construction of any of the Credit Documents or any other document,
interest would otherwise be payable in excess of the maximum nonusurious amount,
any such construction shall be subject to the provisions of this paragraph and
such interest shall be automatically reduced to the maximum nonusurious amount
permitted under applicable law, without the necessity of execution of any
amendment or new document. If any Lender shall ever receive anything of value
which is characterized as interest on the Loans under applicable law and which
would, apart from this provision, be in excess of the maximum nonusurious
amount, an amount equal to the amount which would have been excessive interest
shall, without penalty, be applied to the reduction of the principal amount
owing on the Loans and not to the payment of interest, or refunded to the
Borrower or the other payor thereof if and to the extent such amount which would
have been excessive exceeds such unpaid principal amount of the Loans. The right
to demand payment of the Loans or any other Indebtedness evidenced by any of the
Credit Documents does not include the right to receive any interest which has
not otherwise accrued on the date of such demand, and the Lenders do not intend
to charge or receive any unearned interest in the event of such demand. All
interest paid or agreed to be paid to the Lenders with respect to the Loans
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term (including any renewal or
extension) of the Loans so that the amount of interest on account of such
indebtedness does not exceed the maximum nonusurious amount permitted by
applicable law.

         Section 2.11      Pro Rata Treatment and Payments.

         (a) Each borrowing of Revolving Loans and any reduction of the
Revolving Commitments shall be made pro rata according to the respective
Revolving Commitment Percentages of the Lenders. Each payment (other than
prepayments) of principal or interest under this Agreement or any Note shall be
applied pro rata, first, to any fees then due and owing by the Borrower pursuant
to Section 2.4, second, to interest then due and owing hereunder and under the
Notes and, third, to principal then due and owing hereunder and under the Notes.
Each payment on account of any fees pursuant to Section 2.4 shall be made pro
rata in accordance with the respective amounts due and owing (except as to the
portion of the Letter of Credit retained by the Issuing Lender and the Issuing
Lender Fees). Each optional prepayment of the Loans shall be applied in
accordance with Section 2.6(a) and each mandatory prepayment of the Loans shall
be applied in accordance with Section 2.6(b). Prepayments made pursuant to
Section 2.14 shall be applied in accordance with such section. All payments
(including prepayments) to be made by the Borrower on account of principal,
interest and fees shall be made without defense, set-off or counterclaim (except
as provided in Section 2.17(b)) and shall be made to the Administrative Agent
for the account of the Lenders at the Administrative Agent's office specified on
Schedule 9.2 in Dollars and in immediately available funds not later than 12:00
Noon on the date when due. The Administrative Agent shall distribute such
payments to the Lenders entitled thereto promptly upon receipt in like funds as
received. If any payment hereunder (other than payments on the LIBOR Rate Loans)
becomes due and payable on a day other than a Business Day, such payment shall
be extended to the next succeeding Business Day, and, with respect to payments
of principal, interest thereon shall be payable at the then applicable rate
during such extension. If any payment on a LIBOR Rate Loan becomes due and
payable on a day other than a Business Day, the maturity thereof shall be
extended to the next succeeding

                                       38

<PAGE>

Business Day unless the result of such extension would be to extend such payment
into another calendar month, in which event such payment shall be made on the
immediately preceding Business Day.

         (b) Allocation of Payments After Event of Default. Notwithstanding any
other provisions of this Agreement to the contrary, after the exercise of
remedies by the Administrative Agent or the Lenders pursuant to Section 7.2 (or
after the Commitments shall automatically terminate and the Loans (with accrued
interest thereon) and all other amounts under the Credit Documents (including
without limitation the maximum amount of all contingent liabilities under
Letters of Credit) shall automatically become due and payable in accordance with
the terms of such Section), all amounts collected or received by the
Administrative Agent or any Lender 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 in connection with enforcing the rights of
         the Lenders under the Credit Documents and any protective advances made
         by the Administrative Agent with respect to the Collateral under or
         pursuant to the terms of the Security Documents;

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

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

                  FOURTH, to the payment of all of the Credit Party Obligations
         consisting of accrued fees and interest, and including with respect to
         any Hedging Agreement between any Credit Party and any Lender, or any
         Affiliate of a Lender, to the extent such Hedging Agreement is
         permitted by Section 6.1(e), any fees, premiums and scheduled periodic
         payments due under such Hedging Agreement and any interest accrued
         thereon;

                  FIFTH, to the payment of the outstanding principal amount of
         the Credit Party Obligations and the payment or cash collateralization
         of the outstanding LOC Obligations, and including with respect to any
         Hedging Agreement between any Credit Party and any Lender, or any
         Affiliate of a Lender, to the extent such Hedging Agreement is
         permitted by Section 6.1(e), any breakage, termination or other
         payments due under such Hedging Agreement and any interest accrued
         thereon;

                  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.

                                       39

<PAGE>

         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 Lenders shall receive an
         amount equal to its pro rata share (based on the proportion that the
         then outstanding Loans, LOC Obligations and obligations outstanding
         under the Hedge Agreements (if any) permitted by Section 6.1(e) held by
         such Lender (and its Affiliates in the case of Hedge Agreement
         obligations) bears to the aggregate then outstanding Loans, LOC
         Obligations and obligations outstanding under the Hedge Agreements
         between any Credit Party and any Lender or any Affiliate of a Lender
         that are permitted by Section 6.1(e)) of amounts available to be
         applied pursuant to clauses "FOURTH" and "FIFTH" 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 2.12(b).

         Section 2.12      Non-Receipt of Funds by the Administrative Agent.

         (a) Unless the Administrative Agent shall have been notified in writing
by a Lender prior to the date a Loan is to be made by such Lender (which notice
shall be effective upon receipt) that such Lender does not intend to make the
proceeds of such Loan available to the Administrative Agent, the Administrative
Agent may assume that such Lender has made such proceeds available to the
Administrative Agent on such date, and the Administrative Agent may in reliance
upon such assumption (but shall not be required to) make available to the
Borrower a corresponding amount. If such corresponding amount is not in fact
made available to the Administrative Agent, the Administrative Agent shall be
able to recover such corresponding amount from such Lender. If such Lender does
not pay such corresponding amount forthwith upon the Administrative Agent's
demand therefor, in accordance with the terms hereof, the Administrative Agent
will promptly notify the Borrower, and the Borrower shall immediately pay such
corresponding amount to the Administrative Agent. The Administrative Agent shall
also be entitled to recover from the Lender or the Borrower, as the case may be,
interest on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the
Borrower to the date such corresponding amount is recovered by the
Administrative Agent at a per annum rate equal to (i) from the Borrower at the
applicable rate for the applicable borrowing pursuant to the Notice of Borrowing
and (ii) from a Lender at the Federal Funds Effective Rate.

         (b) Unless the Administrative Agent shall have been notified in writing
by the Borrower, prior to the date on which any payment is due from it hereunder
(which notice shall be effective upon receipt) that the Borrower does not intend
to make such payment, the Administrative Agent may assume that the Borrower has
made such payment when due, and the Administrative Agent may in reliance upon
such assumption (but shall not be required to) make available to each Lender on
such payment date an amount equal to the portion of such assumed

                                       40

<PAGE>

payment to which such Lender is entitled hereunder, and if the Borrower has not
in fact made such payment to the Administrative Agent, such Lender shall, on
demand, repay to the Administrative Agent the amount made available to such
Lender. If such amount is repaid to the Administrative Agent on a date after the
date such amount was made available to such Lender, such Lender shall pay to the
Administrative Agent on demand interest on such amount in respect of each day
from the date such amount was made available by the Administrative Agent to such
Lender to the date such amount is recovered by the Administrative Agent at a per
annum rate equal to the Federal Funds Effective Rate.

         (c) A certificate of the Administrative Agent submitted to the Borrower
or any Lender with respect to any amount owing under this Section 2.12 shall be
conclusive in the absence of manifest error.

         Section 2.13      Inability to Determine Interest Rate.

         Notwithstanding any other provision of this Agreement, if (i) the
Administrative Agent shall reasonably determine (which determination shall be
conclusive and binding absent manifest error) that, by reason of circumstances
affecting the relevant market, reasonable and adequate means do not exist for
ascertaining LIBOR for such Interest Period, or (ii) the Required Lenders shall
reasonably determine (which determination shall be conclusive and binding absent
manifest error) that the LIBOR Rate does not adequately and fairly reflect the
cost to such Lenders of funding LIBOR Rate Loans that the Borrower has requested
be outstanding as a LIBOR Tranche during such Interest Period, the
Administrative Agent shall forthwith give telephone notice of such
determination, confirmed in writing, to the Borrower, and the Lenders at least
two Business Days prior to the first day of such Interest Period. Unless the
Borrower shall have notified the Administrative Agent upon receipt of such
telephone notice that they wish to rescind or modify their request regarding
such LIBOR Rate Loans, any Loans that were requested to be made as LIBOR Rate
Loans shall be made as Alternate Base Rate Loans and any Loans that were
requested to be converted into or continued as LIBOR Rate Loans shall remain as
or be converted into Alternate Base Rate Loans. Until any such notice has been
withdrawn by the Administrative Agent, no further Loans shall be made as,
continued as, or converted into, LIBOR Rate Loans for the Interest Periods so
affected.

         Section 2.14      Illegality.

         Notwithstanding any other provision of this Agreement, if the adoption
of or any change in any Requirement of Law or in the interpretation or
application thereof by the relevant Governmental Authority to any Lender shall
make it unlawful for such Lender or its LIBOR Lending Office to make or maintain
LIBOR Rate Loans as contemplated by this Agreement or to obtain in the interbank
eurodollar market through its LIBOR Lending Office the funds with which to make
such Loans, (a) such Lender shall promptly notify the Administrative Agent and
the Borrower thereof, (b) the commitment of such Lender hereunder to make LIBOR
Rate Loans or continue LIBOR Rate Loans as such shall forthwith be suspended
until the Administrative Agent shall give notice that the condition or situation
which gave rise to the suspension shall no longer exist, and (c) such Lender's
Loans then outstanding as LIBOR Rate Loans, if any, shall be converted on the
last day of the Interest Period for such Loans or within such earlier period as

                                       41

<PAGE>

required by law as Alternate Base Rate Loans. The Borrower hereby agrees to
promptly pay any Lender, upon its demand, any additional amounts necessary to
compensate such Lender for actual and direct costs (but not including
anticipated profits) reasonably incurred by such Lender in making any repayment
in accordance with this Section including, but not limited to, any interest or
fees payable by such Lender to lenders of funds obtained by it in order to make
or maintain its LIBOR Rate Loans hereunder. A certificate as to any additional
amounts payable pursuant to this Section submitted by such Lender, through the
Administrative Agent, to the Borrower shall be conclusive in the absence of
manifest error. Each Lender agrees to use reasonable efforts (including
reasonable efforts to change its LIBOR Lending Office) to avoid or to minimize
any amounts which may otherwise be payable pursuant to this Section; provided,
however, that such efforts shall not cause the imposition on such Lender of any
additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.

         Section 2.15      Requirements of Law.

         (a) If the adoption of or any change in any Requirement of Law or in
the interpretation or application thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date hereof:

                  (i) shall subject such Lender to any tax of any kind
         whatsoever with respect to any Letter of Credit or any application
         relating thereto, any LIBOR Rate Loan made by it, or change the basis
         of taxation of payments to such Lender in respect thereof (except for
         tax on the overall net income of such Lender and changes in the rate of
         such tax);

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

                  (iii) shall impose on such Lender any other condition;

         and the result of any of the foregoing is to increase the cost to such
Lender of making or maintaining LIBOR Rate Loans or the Letters of Credit or to
reduce any amount receivable hereunder or under any Note, LIBOR Rate Loan or
Letter of Credit, then, in any such case, the Borrower shall promptly pay such
Lender, upon its demand, any additional amounts necessary to compensate such
Lender for such additional cost or reduced amount receivable which such Lender
reasonably deems to be material as determined by such Lender with respect to its
LIBOR Rate Loans or Letters of Credit. A certificate as to any additional
amounts payable pursuant to this Section submitted by such Lender, through the
Administrative Agent, to the Borrower shall be conclusive in the absence of
manifest error. Each Lender agrees to use reasonable efforts (including
reasonable efforts to change its Domestic Lending Office or LIBOR Lending
Office, as the case may be) to avoid or to minimize any amounts which might
otherwise be payable pursuant to this paragraph of this Section; provided,
however, that such efforts shall not cause

                                       42

<PAGE>

the imposition on such Lender of any additional costs or other disadvantages
deemed by such Lender to be material.

         (b) If any Lender shall have reasonably determined that the adoption of
or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any central bank
or Governmental Authority made subsequent to the date hereof does or shall have
the effect of reducing the rate of return on such Lender's or such corporation's
capital as a consequence of its obligations hereunder to a level below that
which such Lender or such corporation could have achieved but for such adoption,
change or compliance (taking into consideration such Lender's or such
corporation's policies with respect to capital adequacy) by an amount reasonably
deemed by such Lender to be material, then from time to time, within fifteen
(15) days after demand by such Lender, the Borrower shall pay to such Lender
such additional amount as shall be certified by such Lender as being required to
compensate it for such reduction. Such a certificate as to any additional
amounts payable under this Section submitted by a Lender (which certificate
shall include a description of the basis for the computation), through the
Administrative Agent, to the Borrower shall be conclusive absent manifest error.

         (c) The agreements in this Section 2.15 shall survive the termination
of this Agreement and payment of the Notes and all other amounts payable
hereunder.

         Section 2.16      Indemnity.

         The Borrower hereby agrees to indemnify each Lender and to hold such
Lender harmless from any funding loss or expense which such Lender may sustain
or incur as a consequence of (a) default by the Borrower in payment of the
principal amount of or interest on any Loan by such Lender in accordance with
the terms hereof, (b) default by the Borrower in accepting a borrowing after the
Borrower has given a notice in accordance with the terms hereof, (c) default by
the Borrower in making any prepayment after the Borrower has given a notice in
accordance with the terms hereof, and/or (d) the making by the Borrower of a
prepayment of a Loan, or the conversion thereof, on a day which is not the last
day of the Interest Period with respect thereto, in each case including, but not
limited to, any such loss or expense arising from interest or fees payable by
such Lender to lenders of funds obtained by it in order to maintain its Loans
hereunder. A certificate as to any additional amounts payable pursuant to this
Section submitted by any Lender, through the Administrative Agent, to the
Borrower shall be conclusive in the absence of manifest error. The agreements in
this Section shall survive termination of this Agreement and payment of the
Notes and all other amounts payable hereunder.

         Section 2.17      Taxes.

         (a) All payments made by the Borrower hereunder or under any Note shall
be, except as provided in Section 2.17(b), made free and clear of, and without
deduction or withholding for, any present or future taxes, levies, imposts,
duties, fees, assessments or other charges of whatever nature now or hereafter
imposed by any Governmental Authority or by any political

                                       43

<PAGE>

subdivision or taxing authority thereof or therein with respect to such payments
(but excluding any tax imposed on or measured by the net income or profits of a
Lender pursuant to the laws of the jurisdiction in which it is organized or the
jurisdiction in which the principal office or applicable lending office of such
Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect thereto (all such non-excluded
taxes, levies, imposts, duties, fees, assessments or other charges being
referred to collectively as "Taxes"). If any Taxes are so levied or imposed, the
Borrower agrees to pay the full amount of such Taxes, and such additional
amounts as may be necessary so that every payment of all amounts due under this
Agreement or under any Note, after withholding or deduction for or on account of
any Taxes, will not be less than the amount provided for herein or in such Note.
The Borrower will furnish to the Administrative Agent as soon as practicable
after the date the payment of any Taxes is due pursuant to applicable law
certified copies (to the extent reasonably available and required by law) of tax
receipts evidencing such payment by the Borrower. The Borrower agrees to
indemnify and hold harmless each Lender, and reimburse such Lender upon its
written request, for the amount of any Taxes so levied or imposed and paid by
such Lender.

         (b) Each Lender that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) agrees to deliver to the Borrower
and the Administrative Agent on or prior to the Closing Date, or in the case of
a Lender that is an assignee or transferee of an interest under this Agreement
pursuant to Section 9.6(d) (unless the respective Lender was already a Lender
hereunder immediately prior to such assignment or transfer), on the date of such
assignment or transfer to such Lender, (i) if the Lender is a "bank" within the
meaning of Section 881(c)(3)(A) of the Code, two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or successor
forms) certifying such Lender's entitlement to a complete exemption from United
States withholding tax with respect to payments to be made under this Agreement
and under any Note, or (ii) if the Lender is not a "bank" within the meaning of
Section 881(c)(3)(A) of the Code, either Internal Revenue Service Form W-8BEN or
W-8ECI as set forth in clause (i) above, or (x) a certificate substantially in
the form of Schedule 2.17 (any such certificate, a "2.17 Certificate") and (y)
two accurate and complete original signed copies of Internal Revenue Service
Form W-8 (or successor form) certifying such Lender's entitlement to an
exemption from United States withholding tax with respect to payments of
interest to be made under this Agreement and under any Note. In addition, each
Lender agrees that it will deliver upon the Borrower's request updated versions
of the foregoing, as applicable, whenever the previous certification has become
obsolete or inaccurate in any material respect, together with such other forms
as may be required in order to confirm or establish the entitlement of such
Lender to a continued exemption from or reduction in United States withholding
tax with respect to payments under this Agreement and any Note. Notwithstanding
anything to the contrary contained in Section 2.17(a), but subject to the
immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold Taxes imposed by
the United States (or any political subdivision or taxing authority thereof or
therein) from interest, fees or other amounts payable hereunder for the account
of any Lender which is not a United States person (as such term is defined in
Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes to the
extent that such Lender has not provided to the Borrower U.S. Internal Revenue
Service Forms that establish a complete exemption from such deduction or
withholding and (y) the Borrower shall not be obligated pursuant to Section
2.17(a) hereof to gross-up payments to be made to a Lender

                                       44

<PAGE>

in respect of Taxes imposed by the United States if (I) such Lender has not
provided to the Borrower the Internal Revenue Service Forms required to be
provided to the Borrower pursuant to this Section 2.17(b) or (II) in the case of
a payment, other than interest, to a Lender described in clause (ii) above, to
the extent that such Forms do not establish a complete exemption from
withholding of such Taxes. Notwithstanding anything to the contrary contained in
the preceding sentence or elsewhere in this Section 2.17, the Borrower agrees to
pay additional amounts and to indemnify each Lender in the manner set forth in
Section 2.17(a) (without regard to the identity of the jurisdiction requiring
the deduction or withholding) in respect of any amounts deducted or withheld by
it as described in the immediately preceding sentence as a result of any changes
after the Closing Date in any applicable law, treaty, governmental rule,
regulation, guideline or order, or in the interpretation thereof, relating to
the deducting or withholding of Taxes.

         (c) Each Lender agrees to use reasonable efforts (including reasonable
efforts to change its Domestic Lending Office or LIBOR Lending Office, as the
case may be) to avoid or to minimize any amounts which might otherwise be
payable pursuant to this Section; provided, however, that such efforts shall not
cause the imposition on such Lender of any additional costs or other
disadvantages deemed by such Lender in its sole discretion to be material.

         (d) If the Borrower pays any additional amount pursuant to this Section
2.17 with respect to a Lender, such Lender shall use reasonable efforts to
obtain a refund of tax or credit against its tax liabilities on account of such
payment; provided that such Lender shall have no obligation to use such
reasonable efforts if either (i) it is in an excess foreign tax credit position
or (ii) it believes in good faith, in its sole discretion, that claiming a
refund or credit would cause adverse tax consequences to it. In the event that
such Lender receives such a refund or credit, such Lender shall pay to the
Borrower an amount that such Lender reasonably determines is equal to the net
tax benefit obtained by such Lender as a result of such payment by the Borrower.
In the event that no refund or credit is obtained with respect to the Borrower's
payments to such Lender pursuant to this Section 2.17, then such Lender shall
upon request provide a certification that such Lender has not received a refund
or credit for such payments. Nothing contained in this Section 2.17(d) shall
require a Lender to disclose or detail the basis of its calculation of the
amount of any tax benefit or any other amount or the basis of its determination
referred to in the proviso to the first sentence of this Section 2.17(d) to the
Borrower or any other party.

         (e) The agreements in this Section 2.17 shall survive the termination
of this Agreement and the payment of the Notes and all other amounts payable
hereunder.

         Section 2.18      Indemnification; Nature of Issuing Lender's Duties.

         (a) In addition to its other obligations under Section 2.2, the
Borrower hereby agrees to protect, indemnify, pay and save each Issuing Lender
harmless from and against any and all claims, demands, liabilities, damages,
losses, costs, charges and expenses (including reasonable attorneys' fees) that
the Issuing Lender may incur or be subject to as a consequence, direct or
indirect, of (i) the issuance of any Letter of Credit or (ii) the failure of 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").

                                       45

<PAGE>

         (b) As between the Borrower and the Issuing Lender, the Borrower shall
assume all risks of the acts, omissions or misuse of any Letter of Credit by the
beneficiary thereof. The Issuing Lender shall not be responsible: (i) 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 be in any
or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii)
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; (iii) for failure of the beneficiary of a
Letter of Credit to comply fully with conditions required in order to draw upon
a Letter of Credit; (iv) 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; (v) for errors in interpretation of
technical terms; (vi) 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 (vii) for any consequences arising from causes beyond
the control of the Issuing Lender, 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.

         (c) In furtherance and extension and not in limitation of the specific
provisions hereinabove set forth, any action taken or omitted by 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 Issuing
Lender under any resulting liability to the Borrower. It is the intention of the
parties that this Agreement shall be construed and applied to protect and
indemnify 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,
including, without limitation, any and all risks of the acts or omissions,
whether rightful or wrongful, of any Government Authority. The Issuing Lender
shall not, in any way, be liable for any failure by the Issuing Lender 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 the Issuing Lender.

         (d) Nothing in this Section 2.18 is intended to limit the reimbursement
obligation of the Borrower contained in Section 2.2(d) hereof. The obligations
of the Borrower under this Section 2.18 shall survive the termination of this
Agreement. No act or omissions of any current or prior beneficiary of a Letter
of Credit shall in any way affect or impair the rights of the Issuing Lender to
enforce any right, power or benefit under this Agreement.

         (e) Notwithstanding anything to the contrary contained in this Section
2.18, the Borrower shall have no obligation to indemnify any Issuing Lender in
respect of any liability incurred by such Issuing Lender arising out of the
gross negligence or willful misconduct of the Issuing Lender (including action
not taken by an Issuing Lender), as determined by a court of competent
jurisdiction.

                                       46

<PAGE>

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         To induce the Lenders to enter into this Agreement and to make the
Extensions of Credit herein provided for, the Credit Parties hereby represent
and warrant to the Administrative Agent and to each Lender that:

         Section 3.1       Financial Condition.

         (a) (i) The audited consolidated financial statements of the Parent and
its Subsidiaries for the fiscal years ended December 31, 2000, December 30, 2001
and December 29, 2002, together with the related consolidated statements of
income or operations, equity and cash flows for the fiscal years ended on such
dates and the footnotes thereto and (ii) the unaudited consolidated financial
statements of the Parent and its Subsidiaries for the period from December 29,
2002 through April 20, 2003:

                  (A) were prepared in accordance with GAAP (to the extent
         applicable) consistently applied throughout the period covered thereby,
         except as otherwise expressly noted therein, by an independent
         nationally recognized accounting firm (except with respect to the
         unaudited financial statements);

                  (B) fairly present the financial condition of the Parent and
         its Subsidiaries as of the date or dates thereof (subject, in the case
         of the unaudited financial statements, to normal year-end adjustments)
         and results of operations for the period covered thereby; and

                  (C) show all Indebtedness and other liabilities in excess of
         $500,000 in aggregate principal amount, direct or contingent, of the
         Parent and its Subsidiaries as of the date thereof, including
         liabilities for taxes, commitments and other contingent obligations.

         (b) The 2003 annual budget of the Parent and its Subsidiaries and the
projections of the Parent and its Subsidiaries through December 31, 2006 have
been prepared in good faith based upon reasonable assumptions.

         Section 3.2       No Change.

         Since December 29, 2002 (and, after delivery of annual audited
financial statements in accordance with Section 5.1(a), from the date of the
most recently delivered annual audited financial statements) there has been no
development or event which, individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect.

                                       47

<PAGE>

         Section 3.3       Corporate Existence; Compliance with Law.

         Each of the Credit Parties (a) is duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization, (b) has
the requisite corporate power, authority and right to own and operate all its
property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged, (c) is duly qualified to conduct
business 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 except to the extent that the failure to so qualify
or be in good standing could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect and (d) is in compliance with all
Requirements of Law except to the extent that the failure to comply therewith
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

         Section 3.4       Corporate Power; Authorization; Enforceable
                           Obligations.

         Each of the Credit Parties has full corporate power, authority and
right to execute, deliver and perform the Credit Documents to which it is party
and has taken all necessary limited liability company or corporate action to
authorize the execution, delivery and performance by it of the Credit Documents
to which it is party. No consent or authorization of, filing with, notice to or
other act by or in respect of, any Governmental Authority or any other Person is
required in connection with the borrowings hereunder or with the execution,
delivery or performance of any Credit Document by the Credit Parties (other than
those which have been obtained) or with the validity or enforceability of any
Credit Document against the Credit Parties (except such filings as are necessary
in connection with the perfection of the Liens created by such Credit
Documents). Each Credit Document to which it is a party has been duly executed
and delivered on behalf of each of the Credit Parties. Each Credit Document to
which it is a party constitutes a legal, valid and binding obligation of each of
the Credit Parties, enforceable against such Credit Party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, 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).

         Section 3.5       Compliance with Laws; No Conflict; No Default.

         (a) The execution, delivery and performance by each Credit Party of the
Credit Documents to which such Credit Party is a party, in accordance with their
respective terms, the borrowings hereunder and the transactions contemplated
hereby do not and will not, by the passage of time, the giving of notice or
otherwise, (i) violate any Requirement of Law relating to such Credit Party,
(ii) conflict with, result in a breach of or constitute a default under the
articles of incorporation, bylaws, articles of organization, operating agreement
or other organizational documents of such Credit Party or any material
indenture, agreement or other instrument to which such Person is a party or by
which any of its properties may be bound or any license, permit or other
approval required by any Governmental Authority (collectively "Governmental
Approvals") relating to such Person, except to the extent that such conflict,
breach or default with respect to any such indenture, agreement or instrument
could not, individually or in the aggregate reasonably be expected to have a
Material Adverse Effect, or (iii) result in or require

                                       48

<PAGE>

the creation or imposition of any Lien upon or with respect to any property now
owned or hereafter acquired by such Person other than Liens arising under the
Credit Documents.

         (b) Each Credit Party (i) (x) has all Governmental Approvals required
by law for it to conduct its business in all material respects, each of which is
in full force and effect, (y) each such Governmental Approval is final and not
subject to review on appeal and (z) each such Governmental Approval is not the
subject of any pending or, to the best of its knowledge, threatened attack by
direct or collateral proceeding, and (ii) is in compliance with each
Governmental Approval applicable to it and in compliance with all other
Requirements of Law relating to it or any of its respective properties, in each
case except to the extent the failure to obtain such Governmental Approval or
failure to comply with such Governmental Approval or Requirement of Law could
not reasonably be expected to have a Material Adverse Effect.

         (c) None of the Credit Parties is in default under or with respect to
any of its Material Contracts, or any judgment, order or decree to which it is a
party, in any respect which could reasonably be expected to have a Material
Adverse Effect. No Default or Event of Default has occurred and is continuing.

         Section 3.6       No Material Litigation.

         No litigation, investigation, bankruptcy or insolvency, injunction,
order or claim affecting or relating to any Credit Party or any of its
Subsidiaries, any such Person's properties or revenues, or any Credit Document
is pending or, to the best knowledge of the Credit Parties, threatened by or
against any Credit Party or any of its Subsidiaries or against any of its or
their respective properties or revenues that has not been settled, dismissed,
vacated, discharged or terminated which could reasonably be expected to have a
Material Adverse Effect, and no judgments are outstanding which could reasonably
be expected to have a Material Adverse Effect.

         Section 3.7       Investment Company Act; PUHCA; Etc.

         No Credit Party is an "investment company", or a company "controlled"
by an "investment company", within the meaning of the Investment Company Act of
1940, as amended. No Credit Party is a subject to regulation under the Public
Utility Holding Company Act of 1935, as amended, the Federal Power Act, the
Interstate Commerce Act, or any federal or state statute or regulation limiting
its ability to incur the Credit Party Obligations.

         Section 3.8       Margin Regulations.

         No part of the proceeds of any Loan hereunder will be used directly or
indirectly for any purpose which violates, or which would be inconsistent with,
the provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System as now and from time to time hereafter in effect. The Credit
Parties (a) are not engaged, principally or as one of their important
activities, in the business of extending credit for the purpose of "purchasing"
or "carrying" "margin stock" within the respective meanings of each of such
terms under Regulation U and (b) taken as a group do not own "margin stock"
except as identified in the

                                       49

<PAGE>

financial statements referred to in Section 3.1 and the aggregate value of all
"margin stock" owned by the Credit Parties taken as a group does not exceed 25%
of the value of their assets.

         Section 3.9       ERISA.

         Except as set forth in Schedule 3.9, neither a Reportable Event nor an
"accumulated funding deficiency" (within the meaning of Section 412 of the Code
or Section 302 of ERISA) has occurred during the five-year period prior to the
date on which this representation is made or deemed made with respect to any
Plan, and each Plan has complied in all material respects with the applicable
provisions of ERISA and the Code, except to the extent that any such occurrence
or failure to comply would not reasonably be expected to have a Material Adverse
Effect. No termination of a Single Employer Plan has occurred resulting in any
liability that has remained underfunded, and no Lien in favor of the PBGC or a
Plan has arisen, during such five-year period which could reasonably be expected
to have a Material Adverse Effect. The present value of all accrued benefits
under each Single Employer Plan (based on those assumptions used to fund such
Plans) did not, as of the last annual valuation date prior to the date on which
this representation is made or deemed made, exceed the value of the assets of
such Plan allocable to such accrued benefits by an amount which, as determined
in accordance with GAAP, could reasonably be expected to have a Material Adverse
Effect. Neither any Credit Party, nor any of its Subsidiaries nor any Commonly
Controlled Entity is currently subject to any liability for a complete or
partial withdrawal from a Multiemployer Plan which could reasonably be expected
to have a Material Adverse Effect.

         Section 3.10      Environmental Matters.

         Except for exceptions to the following which, either individually or in
the aggregate, could not be reasonably expected to result in a Material Adverse
Effect:

         (a) The facilities and properties owned, leased or operated by the
Credit Parties or any of their Subsidiaries (the "Properties") do not contain
any Materials of Environmental Concern in amounts or concentrations which (i)
constitute a violation of, or (ii) could give rise to liability under, any
Environmental Law.

         (b) The Properties and all operations of the Credit Parties and their
Subsidiaries at the Properties are in compliance, and have in the last five
years been in compliance, in all material respects with all applicable
Environmental Laws, and there is no contamination at, under or about the
Properties or violation of any Environmental Law with respect to the Properties
or the business operated by the Credit Parties or any of their Subsidiaries (the
"Business").

         (c) No Credit Party nor any Subsidiary thereof has received any written
or actual notice of violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the Business, nor
does any Credit Party nor any Subsidiary thereof have knowledge or reason to
believe that any such notice will be received or is being threatened.

                                       50

<PAGE>

         (d) Materials of Environmental Concern have not been transported or
disposed of from the Properties in violation of, or in a manner or to a location
which could give rise to liability under any Environmental Law, nor have any
Materials of Environmental Concern been generated, treated, stored or disposed
of at, on or under any of the Properties in violation of, or in a manner that
could give rise to liability under, any applicable Environmental Law.

         (e) No judicial proceeding or governmental or administrative action is
pending or, to the knowledge of any Credit Party or any Subsidiary thereof,
threatened, under any Environmental Law to which the Borrower or any other
Credit Party or any Subsidiary is or will be named as a party with respect to
the Properties or the Business, 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 Environmental Law
with respect to the Properties or the Business.

         (f) There has been no release or threat of release of Materials of
Environmental Concern at or from the Properties, or arising from or related to
the operations of the Borrower or any other Credit Party or any Subsidiary in
connection with the Properties or otherwise in connection with the Business, in
violation of or in amounts or in a manner that could give rise to liability
under Environmental Laws.

         Section 3.11      Purpose of Loans.

         The proceeds of the Extensions of Credit shall be used solely by the
Borrower as follows:

         (a) with respect to the Revolving Loans and Swingline Loans, to (i)
finance certain restaurant construction costs, (ii) pay certain costs, fees and
expenses in connection with such new restaurant construction, (iii) refinance
certain existing Indebtedness of the Borrower, (iv) pay any fees and expenses in
connection with this Agreement, (v) provide for the working capital and general
corporate requirements of the Borrower and its subsidiaries and (vi) to finance
Permitted Acquisitions; and

         (b) the Letters of Credit shall be used only for or in connection with
appeal bonds, 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.

         Section 3.12      Subsidiaries.

         Set forth on Schedule 3.12 is a complete and accurate list of all
Subsidiaries of the Credit Parties as of the Closing Date. Information on the
attached Schedule includes state of incorporation or organization; the number of
authorized shares of each class of Capital Stock or other equity interests; the
number of outstanding shares of each class of Capital Stock or other equity
interests, the owner thereof and the percentage of such ownership; and the
number and effect, of all outstanding options, warrants, rights of conversion or
purchase and similar rights. The outstanding Capital Stock and other equity
interests of all such Subsidiaries is validly issued,

                                       51

<PAGE>

fully paid and non-assessable and is owned free and clear of all Liens (other
than those arising under or contemplated in connection with the Credit
Documents).

         Section 3.13      Ownership; Insurance.

         Each of the Credit Parties is the owner of, and has good and, to the
extent applicable, marketable title to, and adequate insurance coverage for, all
of its respective assets that, together with assets leased or licensed by the
Credit Parties, represents all assets individually or in the aggregate material
to the conduct of the businesses of the Credit Parties taken as a whole, and
none of such assets is subject to any Lien other than Permitted Liens. Each
Credit Party enjoys peaceful and undisturbed possession under all of its leases
and all such leases are valid and subsisting and in full force and effect other
than exceptions to the foregoing that could not reasonably be expected to have a
Material Adverse Effect. The Credit Parties have delivered, or made available
for review, complete and accurate copies of all material leases to the
Administrative Agent as of the Closing Date.

         Section 3.14      Indebtedness.

         Except as otherwise permitted under Section 6.1, the Credit Parties and
their Subsidiaries have no Indebtedness.

         Section 3.15      Taxes.

         Each of the Credit Parties and their Subsidiaries 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 against which adequate reserves are being maintained in
accordance with GAAP. None of the Credit Parties is aware as of the Closing Date
of any proposed tax assessments against it or any of its Subsidiaries which
could reasonably be expected to have a Material Adverse Effect.

         Section 3.16      Intellectual Property.

         Each of the Credit Parties and its Subsidiaries owns, or has the legal
right to use, all trademarks, tradenames, copyrights, patents, technology,
know-how and processes necessary for each of them to conduct its business as
currently conducted. Set forth on Schedule 3.16 is a list of all Intellectual
Property owned by the Credit Parties and their Subsidiaries or that any Credit
Party or any of its Subsidiaries has the right to use. Except as provided on
Schedule 3.16, no claim has been asserted and is pending by any Person
challenging or questioning the use of any such Intellectual Property owned by a
Credit Party or the validity or effectiveness of any such Intellectual Property
owned by a Credit Party, nor do any Credit Party or any of its Subsidiaries know
of any such claim, and, to the knowledge of any Credit Party and its
Subsidiaries, the use of such Intellectual Property by any Credit Party or any
of its Subsidiaries does not infringe on the rights of any Person, except for
such claims and infringements that in the aggregate, could

                                       52

<PAGE>

not reasonably be expected to have a Material Adverse Effect. Schedule 3.16 may
be updated from time to time by the Borrower to include new Intellectual
Property by giving written notice thereof to the Administrative Agent.

         Section 3.17      Solvency.

         The fair saleable value of each Credit Party's assets, measured on a
going concern basis, exceeds all probable liabilities including those to be
incurred pursuant to this Agreement. None of the Credit Parties (a) has
unreasonably small capital in relation to the business in which it is or
proposes to be engaged or (b) has incurred, or believes that it will incur after
giving effect to the transactions contemplated by this Agreement, debts beyond
its ability to pay such debts as they become due.

         Section 3.18      Investments.

         All Investments of each of the Credit Parties and their Subsidiaries
are Permitted Investments.

         Section 3.19      Location of Collateral.

         Set forth on Schedule 3.19(a) is a list of the Properties of the Credit
Parties and their Subsidiaries with street address, county and state where
located as of the Closing Date. Set forth on Schedule 3.19(b) is a list of all
locations where any tangible personal property of the Credit Parties and their
Subsidiaries is located, including county and state where located as of the
Closing Date. Set forth on Schedule 3.19(c) is the chief executive office and
principal place of business of the Credit Parties and their Subsidiaries as of
the Closing Date.

         Section 3.20      No Burdensome Restrictions.

         None of the Credit Parties or any of its Subsidiaries 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.

         Section 3.21      Brokers' Fees.

         None of the Credit Parties or any of its Subsidiaries have any
obligation to any Person in respect of any finder's, broker's, investment
banking or other similar fee in connection with any of the transactions
contemplated under the Credit Documents other than the closing and other fees
payable pursuant to this Agreement.

         Section 3.22      Labor Matters.

         There are no collective bargaining agreements or Multiemployer Plans
covering the employees of the Credit Parties or any of its Subsidiaries as of
the Closing Date, other than as set forth in Schedule 3.22 hereto. As of the
Closing Date none of the Credit Parties or any of its

                                       53

<PAGE>

Subsidiaries (i) has suffered any strikes, walkouts, work stoppages or other
material labor difficulty within the five years preceding the Closing Date,
other than as set forth in Schedule 3.22 hereto or (ii) has knowledge of any
pending strike, walkout or work stoppage that could, in either case, reasonably
be expected to have a Material Adverse Effect.

         Section 3.23      Security Documents.

         The Security Documents create valid security interests in, and Liens
on, the Collateral purported to be covered thereby, which security interests and
Liens are currently (or will be, upon the filing of appropriate financing
statements and grants of security in Intellectual Property, and the recordation
of the applicable Mortgage Instruments, in each case in favor of the
Administrative Agent) perfected security interests and Liens, prior to all other
Liens other than Permitted Liens.

         Section 3.24      Accuracy and Completeness of Information.

         All factual information heretofore, contemporaneously or hereafter
furnished by or on behalf of any Credit Party or any of its Subsidiaries to the
Administrative Agent or any Lender for purposes of or in connection with this
Agreement or any other Credit Document, or any transaction contemplated hereby
or thereby, is or will be true and accurate in all material respects and not
incomplete by omitting to state any material fact necessary to make such
information not misleading. There is no fact now known to any Credit Party or
any of its Subsidiaries which has, or could reasonably be expected to have, a
Material Adverse Effect.

         Section 3.25      Absence of Certain Changes or Events.

         Since December 29, 2002, except as set forth on Schedule 3.25, as of
the Closing Date, none of the Credit Parties has (i) issued any stock, bonds or
other corporate securities, (ii) borrowed any amount or incurred any liabilities
(absolute or contingent), other than in the ordinary course of business, in
excess of $100,000, (iii) discharged or satisfied any Lien or incurred or paid
any obligation or liability (absolute or contingent), other than in the ordinary
course of business in excess of $100,000, (iv) declared or made any payment or
distribution to stockholders or purchased or redeemed any shares of its Capital
Stock or other securities, (v) mortgaged, pledged or subjected to Lien any of
its assets, tangible or intangible, (vi) sold, assigned or transferred any of
its tangible assets, or canceled any debts or claims, (vii) sold, assigned or
transferred any Intellectual Property or other intangible assets, (viii)
suffered any losses of property, or waived any rights of substantial value, (ix)
granted any bonuses to executive officers in excess of $500,000 in the aggregate
or extraordinary salary increases, (x) entered into any transaction involving
consideration in excess of $100,000 except as otherwise contemplated hereby or
(xi) entered into any agreement or transaction, or amended or terminated any
agreement with any Affiliate. To the knowledge of the Credit Parties, no
material adverse change in the business, operations, property or condition
(financial or otherwise) of the Credit Parties, taken as a whole, could
reasonably be expected to occur.

                                       54

<PAGE>

         Section 3.26      Material Contracts.

         Schedule 3.26 sets forth a complete and accurate list of all Material
Contracts of the Borrowers and their Subsidiaries in effect as of the Closing
Date. As of the Closing Date, other than as set forth in Schedule 3.26, each
such Material Contract is, and after giving effect to the transactions
contemplated by the Credit Documents will be, in full force and effect in
accordance with the terms thereof and no Borrower or Subsidiary thereof has
violated in any material respect any such Material Contract. The Borrowers have
delivered to the Administrative Agent for its review a correct and complete copy
of each written agreement listed in Schedule 3.26 (as amended to date) and a
written summary setting forth the terms and conditions of each oral agreement
referred to in such Schedule.

         Section 3.27      Capitalization.

         As of the Closing Date, after giving effect to the transactions
contemplated herein, the capitalization of the Borrower shall be as set forth on
Schedule 3.27.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

         Section 4.1       Conditions to Closing and Initial Extensions of
                           Credit.

         This Agreement shall become effective upon, and the obligation of each
Lender to make the initial Extensions of Credit on the Closing Date is subject
to, the satisfaction of the following conditions precedent:

         (a) Execution of Credit Documents. The Administrative Agent shall have
received (i) counterparts of this Agreement, (ii) for the account of each
applicable Lender, a Revolving Note, (iii) for the account of the Swingline
Lender, the Swingline Note, and (iv) amendments to the Security Agreement, the
Pledge Agreement and each Mortgage Instrument, in each case conforming to the
requirements of this Agreement and executed by a duly authorized officer of each
party thereto, and in each case in form and substance reasonably satisfactory to
the Lenders.

         (b) Authority Documents. The Administrative Agent shall have received
the following:

                  (i) Articles of Incorporation/Charter Documents. Copies of the
         articles of incorporation or other charter documents, as applicable, of
         each Credit Party certified to be true and complete as of a recent date
         by the appropriate Governmental Authority of the state of its
         incorporation.

                  (ii) Resolutions. Copies of resolutions of the board of
         directors of each Credit Party approving and adopting the Credit
         Documents, the transactions contemplated

                                       55

<PAGE>

         therein and authorizing execution and delivery thereof, certified by a
         secretary or assistant secretary of such Credit Party (pursuant to a
         secretary's certificate in substantially the form of Schedule 4.1-1
         attached hereto) as of the Closing Date to be true and correct and in
         force and effect as of such date.

                  (iii) Bylaws/Operating Agreement. A copy of the bylaws or
         comparable operating agreement of each Credit Party certified by a
         secretary or assistant secretary of such Credit Party (pursuant to a
         secretary's certificate in substantially the form of Schedule 4.1-1
         attached hereto) as of the Closing Date to be true and correct and in
         force and effect as of such 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 of incorporation or organization and each other state in which
         the failure to so qualify and be in good standing could reasonably be
         expected to have a Material Adverse Effect on the business or
         operations of the Credit Parties and their Subsidiaries in such state.

                  (v) Incumbency. An incumbency certificate of each Credit Party
         certified by a secretary or assistant secretary (pursuant to a
         secretary's certificate in substantially the form of Schedule 4.1-1
         attached hereto) to be true and correct as of the Closing Date.

         (c) Legal Opinions of Counsel. The Administrative Agent shall have
received opinions of legal counsel (including local counsel to the extent
required by the Administrative Agent) for the Credit Parties, dated the Closing
Date and addressed to the Administrative Agent and the Lenders in form and
substance reasonably acceptable to the Administrative Agent.

         (d) Personal Property Collateral. The Administrative Agent shall have
received, in form and substance satisfactory to the Administrative Agent:

                  (i) searches of Uniform Commercial Code filings in the
         jurisdiction of the chief executive office of each Credit Party, the
         state of incorporation or organization 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 Administrative Agent's security
         interest in the Collateral and copies of the financing statements on
         file in such jurisdictions;

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

                  (iii) searches of ownership of Intellectual Property in the
         appropriate governmental offices and such patent/trademark/copyright
         filings as reasonably requested by the Administrative Agent in order to
         perfect the Administrative Agent's security interest in the
         Intellectual Property;

                                       56

<PAGE>

                  (iv) all stock or membership certificates, if any, evidencing
         the Capital Stock pledged to the Administrative Agent pursuant to the
         Pledge Agreement, together with duly executed in blank undated stock or
         transfer powers attached thereto;

                  (v) all instruments and chattel paper individually in excess
         of $250,000 in the possession of any of the Credit Parties, together
         with allonges or assignments as may be necessary or appropriate to
         perfect the Administrative Agent's security interest in such
         instruments and chattel paper;

                  (vi) with respect to any Collateral with a fair market value
         in excess of $250,000 in the aggregate held by a warehouseman or a
         bailee, such estoppel letter, consent and waiver from such warehousemen
         or bailee as may be required by the Administrative Agent;

                  (vii) in the case of any warehouse, plant or other real
         property material to the Credit Parties' business that is leased by a
         Credit Party, such estoppel letters, consents and waivers from the
         landlords on such real property as may be required by the
         Administrative Agent;

                  (viii) with respect to the deposit accounts and securities
         accounts of the Credit Parties, such control agreements as may be
         reasonably required by the Administrative Agent;

                  (ix) with respect to any Material Contract, such collateral
         assignment and consent to collateral assignment as may be required by
         the Administrative Agent; and

                  (x) such other duly executed agreements or consents as are
         necessary, in the Administrative Agent's reasonable discretion, to
         perfect the Administrative Agent's security interest in the Collateral.

         (e) Liability, Casualty and Food Borne Insurance. The Administrative
Agent shall have received copies of insurance policies or certificates of
insurance evidencing liability, casualty and food borne insurance meeting the
requirements set forth herein or in the Security Documents. The Administrative
Agent shall be named as loss payee or mortgagee, as its interest may appear,
and/or additional insured with respect to such insurance, and each provider of
any such insurance shall agree, by endorsement upon the policy or policies
issued by it or by independent instruments furnished to the Administrative
Agent, that it will give the Administrative Agent thirty (30) days prior written
notice before any such policy or policies shall be altered or canceled.

         (f) Fees. The Administrative Agent and the Lenders shall have received
all fees, if any, owing pursuant to the Fee Letter and Section 2.4.

         (g) Litigation. Except for litigation disclosed on Schedule 3.6, there
shall not exist any material litigation, investigation, bankruptcy or
insolvency, injunction, order or claim affecting or relating to any Credit Party
or any of its Subsidiaries or with respect to this

                                       57

<PAGE>

Agreement and the other Credit Documents that has not been settled, dismissed,
vacated, discharged or terminated prior to the Closing Date.

         (h) Solvency Certificate. The Administrative Agent shall have received
an officer's certificate prepared by the chief financial officer of the Parent
as to the financial condition, solvency and related matters of each Credit
Party, in each case after giving effect to the initial borrowings under the
Credit Documents, in substantially the form of Schedule 4.1-2 hereto.

         (i) Account Designation Letter. The Administrative Agent shall have
received the executed Account Designation Letter in the form of Schedule 1.1-1
hereto.

         (j) Corporate Structure. The corporate, capital and ownership structure
of the Credit Parties and their Subsidiaries shall be as described in Schedule
3.12, and shall otherwise be reasonably satisfactory to the Administrative Agent
and the Lenders.

         (k) Consents. The Administrative Agent shall have received evidence
that all material governmental, shareholder, board of director and third party
consents and approvals necessary in connection with the financings and other
transactions contemplated hereby have been obtained.

         (l) Compliance with Laws. The financings and other transactions
contemplated hereby shall be in compliance with all applicable laws and
regulations (including all applicable securities and banking laws, rules and
regulations).

         (m) Bankruptcy. There shall be no bankruptcy or insolvency proceedings
with respect to any Credit Party or any of its Subsidiaries.

         (n) Material Adverse Effect. No material adverse change shall have
occurred since December 29, 2002 in the business, properties, operations or
financial condition of the Parent or any of its Subsidiaries.

         (o) Minimum Consolidated EBITDA. The Administrative Agent shall have
received evidence reasonably satisfactory thereto provided by the Borrower that
Consolidated EBITDA of the Parent and its Subsidiaries is not less than
$34,000,000 for the Reference Period ending as of the fiscal quarter end most
recently occurring prior to the Closing Date for which such information is
available.

         (p) Maximum Leverage Ratio. The Administrative Agent shall have
received evidence reasonably satisfactory thereto provided by the Borrower that
the Leverage Ratio of the Parent and its Subsidiaries on a pro forma basis as of
the Closing Date shall not exceed 1.35 to 1.00.

         (q) Financial Statements. The Administrative Agent shall have received
copies of the financial statements and other financial information referred to
in Section 3.1 hereof, each in form and substance reasonably satisfactory to it.

                                       58

<PAGE>

         (r) Termination of Existing Indebtedness. All existing Indebtedness for
borrowed money of the Credit Parties and their Subsidiaries (other than the
Indebtedness listed on Schedule 6.1(b)) shall have been repaid in full and
terminated and all Liens relating thereto shall have been terminated.

         (s) Officer's Certificates. The Administrative Agent shall have
received a certificate executed by a Responsible Officer of the Parent as of the
Closing Date stating that (i) no pending or, to the knowledge of any Credit
Party, threatened litigation, investigation, bankruptcy or insolvency,
injunction, order or claim affecting or relating to any Credit Party or any of
its Subsidiaries, this Agreement and the other Credit Documents, that has not
been settled, dismissed, vacated, discharged or terminated prior to the Closing
Date and (ii) immediately after giving effect to this Agreement (including the
initial Extensions of Credit hereunder), the other Credit Documents and all the
transactions contemplated therein to occur on such date, (A) no Default or Event
of Default exists, (B) all representations and warranties contained herein and
in the other Credit Documents are true and correct in all material respects, and
(C) the Credit Parties are in compliance with each of the financial covenants
set forth in Section 5.9 on a pro forma basis (which for purposes hereof shall
be calculated in the manner set forth on Schedule 4.1-3).

         (t) Additional Matters. All other documents and legal matters in
connection with the transactions contemplated by this Agreement shall be
reasonably satisfactory in form and substance to the Administrative Agent and
its counsel.

         Section 4.2       Conditions to All Extensions of Credit.

         The obligation of each Lender to make any Extension of Credit
(including, without limitation, any Swingline Loan made pursuant to the
Autoborrow Feature) hereunder is subject to the satisfaction of the following
conditions precedent on the date of making such Extension of Credit:

                  (a) Representations and Warranties. The representations and
         warranties made by the Credit Parties herein, in the Security Documents
         or which are contained in any certificate furnished at any time under
         or in connection herewith shall be true and correct on and as of the
         date of such Extension of Credit as if made on and as of such date,
         except for representations and warranties expressly stated to relate to
         a specific earlier date.

                  (b) No Default or Event of Default. No Default or Event of
         Default shall have occurred and be continuing on such date or after
         giving effect to such Extension of Credit.

                  (c) Compliance with Commitments. Immediately after giving
         effect to the making of any such Extension of Credit (and the
         application of the proceeds thereof), (i) the sum of outstanding
         Revolving Loans plus outstanding Swingline Loans plus LOC Obligations
         shall not exceed the Revolving Committed Amount, (ii) the LOC
         Obligations

                                       59

<PAGE>

         shall not exceed the LOC Committed Amount and (iii) the Swingline Loans
         shall not exceed the Swingline Committed Amount.

                  (d) Additional Conditions to Revolving Loans. If a Revolving
         Loan is requested, all conditions set forth in Section 2.1 shall have
         been satisfied.

                  (e) Additional Conditions to Swingline Loans. If a Swingline
         Loan is requested, all conditions set forth in Section 2.3 shall have
         been satisfied.

                  (f) Additional Conditions to Letters of Credit. If the
         issuance of a Letter of Credit is requested, all conditions set forth
         in Section 2.2 shall have been satisfied.

         Each request for an Extension of Credit (including, without limitation,
any Swingline Loan made pursuant to the Autoborrow Feature, which shall be
deemed a request by the Borrower for a Swingline Loan for purposes of this
Section 4.2) and each acceptance by the Borrower of any such Extension of Credit
shall be deemed to constitute representations and warranties by the Borrower as
of the date of such Extension of Credit that the applicable conditions in
paragraphs (a) through (f) of this Section have been satisfied.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

         The Credit Parties hereby covenant and agree that on the Closing Date,
and thereafter for so long as this Agreement is in effect and until the
Commitments have terminated, no Note remains outstanding and unpaid and the
Credit Party Obligations together with interest, Commitment Fee and all other
amounts owing to the Administrative Agent or any Lender hereunder, are paid in
full, the Credit Parties shall, and shall cause each of their Subsidiaries
(other than in the case of Sections 5.1, 5.2 or 5.7 hereof), to:

         Section 5.1       Financial Statements.

         Furnish to the Administrative Agent and each of the Lenders:

         (a) Annual Financial Statements. As soon as available, but in any event
within ninety (90) days after the end of each fiscal year of the Parent, a copy
of the consolidated balance sheet of the Parent and its consolidated
Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and of cash flows of the Parent and
its consolidated Subsidiaries for such year which, shall be audited by a firm of
independent certified public accountants of nationally recognized standing
reasonably acceptable to the Administrative Agent, setting forth in each case in
comparative form the figures for the previous year, reported on without a "going
concern" or like qualification or exception, or qualification indicating that
the scope of the audit was inadequate to permit such independent certified
public accountants to certify such financial statements without such
qualification;

                                       60

<PAGE>

         (b) Quarterly Financial Statements. As soon as available and in any
event within forty-five (45) days after the end of each fiscal quarter of the
Parent, a copy of the consolidated balance sheet of the Parent and its
consolidated Subsidiaries as at the end of such period and related consolidated
statements of income and retained earnings and of cash flows for the Parent and
its consolidated Subsidiaries for such quarterly period and for the portion of
the fiscal year ending with such period, in each case setting forth in
comparative form consolidated figures for the corresponding period or periods of
the preceding fiscal year and current year budget (subject to normal recurring
year-end audit adjustments);

         (c) Officer's Certificate. At the time of delivery of the financial
statements provided for in Sections 5.1(a) and 5.1(b) above, a certificate of a
Responsible Officer of the Parent substantially in the form of Schedules 5.1(c),
(i) demonstrating compliance with the financial covenants contained in Section
5.9 by calculation thereof as of the end of each such fiscal period and (iii)
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 propose to take with respect thereto.

         (d) Annual Operating Budget and Cash Flow. As soon as available, but in
any event within thirty (30) days following the end of each fiscal year, a copy
of the detailed annual operating budget or plan including cash flow projections
of the Parent and its Subsidiaries for the next four fiscal quarter period
prepared on a quarterly basis, in form and detail reasonably acceptable to the
Administrative Agent, together with a summary of the material assumptions made
in the preparation of such annual budget or plan;

all such financial statements to be complete and correct in all material
respects (subject, in the case of interim statements, to normal recurring
year-end audit adjustments) and to be prepared in reasonable detail and, in the
case of the annual and quarterly financial statements provided in accordance
with subsections (a) and (b) above, in accordance with GAAP applied consistently
throughout the periods reflected therein and further accompanied by a
description of, and an estimation of the effect on the financial statements on
account of, a change, if any, in the application of accounting principles as
provided in Section 1.3.

         Section 5.2       Certificates; Other Information.

         Furnish to the Administrative Agent and each of the Lenders:

         (a) concurrently with the delivery of the financial statements referred
to in Section 5.1(a) above, a certificate of the independent certified public
accountants reporting on such financial statements stating that in making the
examination necessary therefor no knowledge was obtained of any Default or Event
of Default with respect to the provisions of Section 5.9, except as specified in
such certificate;

         (b) concurrently with the delivery of the financial statements referred
to in Sections 5.1(a) and (b) above, a certificate of a Responsible Officer
stating that, to the best of such Responsible Officer's knowledge, each of the
Credit Parties during such period observed or performed in all material respects
all of its covenants and other agreements, and satisfied in all

                                       61

<PAGE>

material respects every condition contained in this Agreement to be observed,
performed or satisfied by it, and that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and such certificate shall include the calculations in reasonable
detail required to indicate compliance with Section 5.9 as of the last day of
such period (provided, however with respect to the financial covenants contained
in Section 5.9 and contained in any such compliance certificate delivered for a
period that is not as of the last day of a fiscal quarter, such calculations
shall be for informational purposes only and shall not measure compliance (or
lack of compliance) with such financial covenants) and that the financial
information provided have been prepared in accordance with GAAP applied
consistently for the periods related thereto;

         (c) within ninety (90) days after the end of each fiscal year of the
Borrower, a certificate containing information regarding the amount of all Asset
Dispositions, Debt Issuances, and Equity Issuances that were made during the
prior fiscal year and amounts received in connection with any Recovery Event
during the prior fiscal year;

         (d) promptly upon receipt thereof, a copy of any other report or
"management letter" submitted by independent accountants to the Borrower or any
of its Subsidiaries in connection with any annual, interim or special audit of
the books of such Person;

         (e) concurrently with the delivery of the financial statements referred
to in Sections 5.1(a) and 5.1(b) above, a management report (i) describing the
operations and financial condition of the Credit Parties for the quarter then
ended and the portion of the current fiscal year then elapsed (or for the fiscal
year then ended in the case of year-end financials), (ii) setting forth in
comparative form the corresponding figures for the corresponding periods of the
previous fiscal year and the corresponding figures from the most recent
projections for the current fiscal year, and (iii) discussing the reasons for
any significant variations. The information above shall be presented in
reasonable detail and shall be certified by the chief financial officer of the
Borrower to the effect that such information fairly presents the results of
operations and financial condition of the Credit Parties as at the dates and for
the periods indicated (subject to normal year-end audit adjustments);

         (f) promptly after the same are sent or upon their becoming available,
copies of (i) all Securities and Exchange Commission reports of the Credit
Parties, (ii) all financial statements, reports, notices and proxy statements
sent or made available by the Credit Parties to their equityholders, (iii) all
regular and periodic reports and all registration statements and prospectuses,
if any, filed by any of the Credit Parties with any securities exchange or with
the Securities and Exchange Commission or any governmental or private regulatory
authority, and (iv) all press releases and other statements made available by
any of the Credit Parties to the public concerning material developments in the
business of any of the Credit Parties;

         (g) not less than twenty (20) Business Days prior to the consummation
of any Permitted Acquisition with Total Consideration in excess of $1,000,000:

                                       62

<PAGE>

                  (i) a reasonably detailed description of the material terms of
         such Permitted Acquisition (including, without limitation, the purchase
         price and method and structure of payment) and of each Target;

                  (ii) audited (to the extent available) financial statements of
         the Target for its two (2) most recent fiscal years prepared by
         independent certified public accountants acceptable to the
         Administrative Agent and unaudited fiscal year-to-date statements for
         the two (2) most recent interim periods;

                  (iii) consolidated projected income statements of the Parent
         and its consolidated Subsidiaries (giving effect to such Permitted
         Acquisition and the consolidation with the Parent of each relevant
         Target) for the three (3)-year period following the consummation of
         such Permitted Acquisition, in reasonable detail, together with any
         appropriate statement of assumptions and pro forma adjustments
         reasonably acceptable to the Required Lenders;

                  (iv) a certificate, in form and substance reasonably
         satisfactory to the Administrative Agent, executed by a Responsible
         Officer of the Parent (A) setting forth the best good faith estimate of
         the Total Consideration to be paid for each Target, (B) certifying that
         (y) such Permitted Acquisition complies with the requirements of this
         Agreement and (z) after giving effect to such Permitted Acquisition and
         any borrowings in connection therewith, the Parent believes in good
         faith that it will have sufficient availability under the Revolving
         Commitments to meet its ongoing working capital requirements and (C)
         demonstrating compliance with clauses (b), (c), (d) and (e) of the
         definition of the Permitted Acquisition; and

                  (v) any due diligence reports prepared by, or on behalf of,
         any Credit Party with respect to the Target; and

         (h) promptly, such additional financial and other information as the
Administrative Agent, or any Lender through the Administrative Agent, may from
time to time reasonably request.

         Section 5.3       Payment of Taxes and Other Obligations.

         Pay, discharge or otherwise satisfy at or before maturity or before
they become delinquent, as the case may be, all its taxes (Federal, state, local
and any other taxes) and other material obligations and liabilities of whatever
nature and any additional costs that are imposed as a result of any failure to
so pay, discharge or otherwise satisfy such taxes, obligations and liabilities
(except where the failure to pay, discharge or satisfy such obligations and
liabilities (other than taxes) could not reasonably be expected to have a
Material Adverse Effect), except when the amount or validity of any such taxes,
obligations and liabilities is currently being contested in good faith by
appropriate proceedings and reserves, if applicable, in conformity with GAAP
with respect thereto have been provided on the books of the Credit Parties.

                                       63

<PAGE>

         Section 5.4       Conduct of Business and Maintenance of Existence.

         Continue to engage in business of the same general type as conducted by
it on the Closing Date; preserve, renew and keep in full force and effect its
existence and good standing and take all reasonable action to maintain all
rights, privileges and franchises necessary or desirable in the normal conduct
of its business and to maintain its goodwill; comply with all Material Contracts
and Requirements of Law applicable to it except to the extent that failure to
comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

         Section 5.5       Maintenance of Property; Insurance.

         (a) Keep all material property useful and necessary in its business in
good working order and condition (ordinary wear and tear and obsolescence
excepted).

         (b) Maintain with financially sound and reputable insurance companies
(i) insurance on all its property (including without limitation its tangible
Collateral) insuring against at least such risks as are usually insured against
in the same or a similar business, (ii) liability and food borne illness
insurance covering at least such risks as are usually insured against in the
same or a similar business and (iii) key man life insurance on Michael J. Snyder
in a minimum amount of $5,000,000; and furnish to the Administrative Agent, upon
written request, full information as to the insurance carried. The
Administrative Agent shall be named as loss payee or mortgagee, as its interest
may appear, or an additional insured, as applicable, with respect to such
insurance policies, and each provider of such insurance policies shall agree, by
endorsement upon the policy or policies issued by it or by independent
instruments furnished to the Administrative Agent, that it will give the
Administrative Agent thirty (30) days prior written notice before any such
policy or policies shall be altered or canceled, and that no act or default of
any Credit Party or any of its Subsidiaries or any other Person shall affect the
rights of the Administrative Agent or the Lenders under such policy or policies.
The present insurance coverage of the Credit Parties as of the Closing Date is
outlined as to carrier, policy number, expiration date, type and amount on
Schedule 5.5(b).

         (c) In case of any material loss, damage to or destruction of the
Collateral of any Credit Party or any material part thereof, such Credit Party
shall promptly give written notice thereof to the Administrative Agent generally
describing the nature and extent of such damage or destruction. In case of any
loss, damage to or destruction of the Collateral of any Credit Party or any
material part thereof, such Credit Party, whether or not the insurance proceeds,
if any, received on account of such damage or destruction shall be sufficient
for that purpose, at such Credit Party's cost and expense, will promptly repair
or replace the Collateral of such Credit Party so lost, damaged or destroyed.

         Section 5.6       Inspection of Property; Books and Records;
                           Discussions.

         Keep proper books of records and accounts in which full, true and
correct entries (in all material respects) shall be made of all dealings and
transactions in relation to its businesses and activities, such entries to be in
conformity with GAAP and all Requirements of Law; and permit,

                                       64

<PAGE>

during regular business hours and upon reasonable notice by the Administrative
Agent or any Lender, the Administrative Agent or any Lender to visit and inspect
any of its properties and examine and make abstracts from any of its books and
records at any reasonable time and as often as may reasonably be desired, and to
discuss the business, operations, properties and financial and other condition
of the Credit Parties and their Subsidiaries with officers and employees of the
Credit Parties and with its independent certified public accountants.

         Section 5.7       Notices.

         Give notice in writing to the Administrative Agent (which shall
promptly transmit such notice to each Lender) of:

         (a) promptly, but in any event within two (2) Business Days after any
Credit Party knows or has reason to know thereof, the occurrence of any Default
or Event of Default;

         (b) promptly, the occurrence of any default or event of default under
any Material Contracts of any Credit Party or any of its Subsidiaries which
could reasonably be expected to have a Material Adverse Effect or involve a
monetary claim in excess of $1,000,000;

         (c) promptly, any litigation, or any investigation or proceeding known
to any Credit Party (i) affecting any Credit Party or any of its Subsidiaries
which, if adversely determined, could reasonably be expected to have a Material
Adverse Effect or involve a monetary claim in excess of $1,000,000, (ii)
affecting or with respect to this Agreement or any other Credit Document or
(iii) involving an environmental claim or potential liability under
Environmental Laws in excess of $1,000,000;

         (d) as soon as possible and in any event within thirty (30) days after
any Credit Party knows or has reason to know thereof: (i) the occurrence or
expected occurrence of any Reportable Event with respect to any Plan, a failure
to make any required contribution to a Plan, the creation of any Lien in favor
of the PBGC (other than a Permitted Lien) or a Plan or any withdrawal from, or
the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii)
the institution of proceedings or the taking of any other action by the PBGC or
any Credit Party or any Commonly Controlled Entity or any Multiemployer Plan
with respect to the withdrawal from, or the terminating, Reorganization or
Insolvency of, any Plan;

         (e) any notice of any material violation of any Requirement of Law
received by any Credit Party or any of its Subsidiaries from any Governmental
Authority including, without limitation, any notice of material violation of
Environmental Laws;

         (f) any labor controversy that has resulted in, or threatens to result
in, a strike or other work action against any Credit Party or any of its
Subsidiaries which could reasonably be expected to have a Material Adverse
Effect;

         (g) any attachment, judgment, lien, levy or order exceeding $500,000
that may be assessed against any Credit Party other than Permitted Liens; and

                                       65

<PAGE>

         (h) promptly, any other development or event which could reasonably be
expected to have a Material Adverse Effect.

Each notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the Credit Parties propose to take with respect thereto.
In the case of any notice of a Default or Event of Default, the Borrower shall
specify that such notice is a Default or Event of Default notice on the face
thereof.

         Section 5.8       Environmental Laws.

         (a) Comply in all material respects with, and take reasonable steps to
ensure compliance in all material respects by all tenants and subtenants, if
any, with, all applicable Environmental Laws and obtain and comply in all
material respects with and maintain, and take reasonable steps to ensure that
all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws;

         (b) Conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply in all material respects with all lawful
orders and directives of all Governmental Authorities regarding Environmental
Laws except to the extent that the same are being contested in good faith by
appropriate proceedings and the pendency of such proceedings could not
reasonably be expected to have a Material Adverse Effect; and

         (c) Defend, indemnify and hold harmless the Administrative Agent and
the Lenders, and their respective employees, agents, officers and directors,
from and against any and all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature known or
unknown, contingent or otherwise, arising out of, or in any way relating to the
violation of, noncompliance with or liability under, any Environmental Law
applicable to the operations of the Credit Parties or any of their Subsidiaries
or the Properties, or any orders, requirements or demands of Governmental
Authorities related thereto, including, without limitation, reasonable
attorney's and consultant's fees, investigation and laboratory fees, response
costs, court costs and litigation expenses, except to the extent that any of the
foregoing arise out of the gross negligence or willful misconduct of the party
seeking indemnification therefor as determined by a court of competent
jurisdiction in a final and non-appealable judgment. The agreements in this
paragraph shall survive repayment of the Credit Party Obligations.

         Section 5.9       Financial Covenants.

         Commencing on the day immediately following the Closing Date, the
Credit Parties shall comply with the following financial covenants:

         (a) Leverage Ratio. The Leverage Ratio, as of the last day of each
fiscal quarter of the Parent, shall be less than or equal to 1.75 to 1.0.

                                       66

<PAGE>

         (b) Consolidated EBITDA. Consolidated EBITDA, for the Reference Period
ending on the last day of each fiscal quarter of the Parent occurring during the
periods set forth below, shall be greater than or equal to the amount
corresponding to such periods:

-----------------------------------------------------------------------------
                           Period                            Minimum Amount
-----------------------------------------------------------------------------
Closing Date through and including December 28, 2003           $32,000,000
-----------------------------------------------------------------------------
December 29, 2003 through and including December 26, 2004      $34,000,000
-----------------------------------------------------------------------------
December 27, 2004 and thereafter                               $36,000,000
-----------------------------------------------------------------------------

         (c) Relative Consolidated EBITDA. Consolidated EBITDA, as of the last
day of each fiscal quarter of the Parent shall not be less than the product of
(i) Consolidated EBITDA for the Reference Period ending as of the end of the
immediately preceding fiscal quarter multiplied by (ii) .90.

         (d) Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of
the last day of each fiscal quarter of the Parent shall be greater than or equal
to 1.25 to 1.0.

         (e) Consolidated Capital Expenditures. Consolidated Capital
Expenditures made by the Credit Parties shall not exceed the following amounts
for each of the annual periods set forth below:

-------------------------------------------------------------------------------
                     Fiscal Year                   Amount
-------------------------------------------------------------------------------
                        2003                     $58,000,000
                        2004                     $63,000,000
                        2005                     $75,000,000
                        2006                     $75,000,000
-------------------------------------------------------------------------------

provided, however that the amount available for Consolidated Capital
Expenditures during any fiscal year shall be increased in an amount not to
exceed $10,000,000 in the aggregate by utilizing any unused amount which was
otherwise available to be used in accordance with the chart set forth above from
the immediately preceding fiscal year (excluding any carry-forward available
from any fiscal year occurring prior to such immediately preceding fiscal year).

         Section 5.10      Additional Subsidiary Guarantors.

         The Credit Parties will cause each of their Domestic Subsidiaries,
whether newly formed, after acquired or otherwise existing, to promptly become a
Guarantor hereunder by way of execution of a Joinder Agreement. In connection
therewith, the Credit Parties shall give notice to the Administrative Agent not
less than fifteen (15) days prior to creating a Subsidiary, or acquiring the
Capital Stock of any other Person. The guaranty obligations of any such
Additional Credit Party shall be secured by, among other things, the Collateral
of the Additional Credit Party and a pledge of 100% of the Capital Stock of its
Domestic Subsidiaries that such Additional Credit Party owns and 65% (or such
higher percentage that would not result in

                                       67

<PAGE>

material adverse tax consequences for such Additional Credit Party) of the
voting Capital Stock and 100% of the non-voting Capital Stock of its first-tier
Foreign Subsidiaries. In connection with the foregoing, the Credit Parties shall
deliver to the Administrative Agent such charter and organizational documents
and opinions of counsel as the Administrative Agent may reasonably request.

         Section 5.11      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.

         Section 5.12      Pledged Assets.

         (a) Each Credit Party will, and will cause each of its Subsidiaries to,
cause 100% of the Capital Stock of each of its direct or indirect Domestic
Subsidiaries that such Credit Party owns and 65% of the voting Capital Stock and
100% of the non-voting Capital Stock of each of its first-tier Foreign
Subsidiaries that such Credit Party owns to be subject at all times to a first
priority, perfected Lien in favor of the Administrative Agent pursuant to the
terms and conditions of the Security Documents or such other security documents
as the Administrative Agent shall reasonably request.

         (b) If, subsequent to the Closing Date, a Credit Party shall acquire
any owned real property, securities, instruments having a fair market value in
excess of $250,000, chattel paper evidencing obligations in excess of $250,000,
or other personal property having a fair market value in excess of $250,000
required for perfection to be delivered to the Administrative Agent as
Collateral hereunder or under any of the Security Documents or if any owned real
property which has previously been subject to a mortgage or deed of trust in
favor of a third party shall cease to be subject to such encumbrance, the
Borrower shall promptly (and in any event within three (3) Business Days) after
such acquisition or release of encumbrance notify the Administrative Agent of
same. Each Credit Party shall, and shall cause each of its Subsidiaries to, take
such action at its own expense as may be necessary or otherwise reasonably
requested by the Administrative Agent (including, without limitation, any of the
actions described in Section 4.1(d) hereof) to ensure that the Administrative
Agent has a first priority perfected Lien to secure the Credit Party Obligations
in (i) all Collateral of the Credit Parties located in the United States and
(ii) to the extent deemed to be material by the Administrative Agent in its
reasonable discretion, all other personal property (other than items of
Collateral that are excluded from the Security Documents) or owned real property
of the Credit Parties, subject in each case only to Permitted Liens. With
respect to any real property leased by a Credit Party, to the extent requested
by the Administrative Agent, such Credit Party shall use its commercially
reasonable best efforts to deliver to the Administrative Agent a landlord waiver
in form and substance reasonably satisfactory to the Administrative Agent. With
respect to any owned real property of a Credit Party required to be pledged to
the Administrative Agent pursuant to this Section 5.12, such Credit Party shall
deliver the following documentation, which in each case shall be in form and
substance reasonably satisfactory to the Administrative Agent:

                                       68

<PAGE>

                  (A) a fully executed and notarized Mortgage Instrument
         encumbering the fee interest in such real property;

                  (B) a title report in respect of such real property;

                  (C) a Mortgage Policy in an amount reasonably satisfactory to
         the Administrative Agent, which Mortgage Policy shall provide for
         affirmative insurance and such reinsurance as the Administrative Agent
         may reasonably request;

                  (D) evidence as to (1) whether such real 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 (2)
         if such real property is a Flood Hazard Property, (x) whether the
         community in which such real property is located is participating in
         the National Flood Insurance Program, (y) the applicable Credit Party's
         written acknowledgment of receipt of written notification from the
         Administrative Agent (I) as to the fact that such real property is a
         Flood Hazard Property and (II) as to whether the community in which
         each such Flood Hazard Property is located is participating in the
         National Flood Insurance Program, and (z) copies of insurance policies
         or certificates of insurance of the Credit Parties and their
         Subsidiaries evidencing flood insurance reasonably satisfactory to the
         Administrative Agent and naming the Administrative Agent as loss payee
         on behalf of the Lenders;

                  (E) map or plat of an as-built survey of the site of the real
         property certified to the Administrative Agent and the Title Insurance
         Company issuing the applicable Mortgage Policy in a manner reasonably
         satisfactory to them, dated a date reasonably satisfactory to each of
         the Administrative Agent and such Title Insurance Company by an
         independent professional licensed land surveyor selected by the
         Borrower and reasonably satisfactory to each of the Administrative
         Agent and such Title Insurance Company, which map or plat and the
         survey on which they are based shall be sufficient to delete any
         standard printed survey exception contained in the applicable Mortgage
         Policy and be made in accordance with the Minimum Standard Detail
         Requirements for Land Title Surveys jointly established and adopted by
         the American Land Title Association and the American Congress on
         Surveying and Mapping in 1992, and, without limiting the generality of
         the foregoing, there shall be surveyed and shown on such map, plat or
         survey the following: (1) the location on such site of all the
         buildings, structures and other improvements and the established
         building setback lines; (2) the lines of streets abutting the site and
         width thereof; (3) all access and other easements appurtenant to the
         site necessary to use the site; (4) all roadways, paths, driveways,
         easements, encroachments and overhanging projections and similar
         encumbrances affecting the site, whether recorded, apparent from a
         physical inspection of the site or otherwise known to the surveyor; (5)
         any encroachments on any adjoining property by the building structures
         and improvements on the site; and (6) if the site is described as being
         on a filed map, a legend relating the survey to such map;

                                       69

<PAGE>

                  (F) an environmental review of such real property, including
         but not limited to Phase I environmental assessments, together with a
         reliance letter in favor of the Lenders;

                  (G) an opinion of counsel to the Credit Parties for the
         jurisdiction in which such real property located; and

                  (H) to the extent readily available, a zoning letter from the
         municipality or other Governmental Authority for the jurisdiction in
         which the real property is located.

         Section 5.13      Covenants Regarding Intellectual Property.

         (a) Each Credit Party shall notify the Administrative Agent promptly if
it knows that any application, letters patent or registration relating to any
material Patent or material Trademark of such Credit Party or any of its
Subsidiaries may become abandoned, or of any adverse determination or
development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office or any court) regarding such Credit Party's or any of its
Subsidiary's ownership of any material Patent or material Trademark, its right
to patent or register the same, or to enforce, keep and maintain the same, or
its rights under any material Patent License or material Trademark License.

         (b) Each Credit Party shall notify the Administrative Agent promptly
after it knows of any adverse determination or development (including, without
limitation, the institution of, or any such determination or development in, any
proceeding in any court) regarding any material Copyright of such Credit Party
or any of its Subsidiaries, whether (i) such material Copyright may become
invalid or unenforceable prior to its expiration or termination, or (ii) such
Credit Party's or any of its Subsidiary's ownership of such material Copyright,
its right to register the same or to enforce, keep and maintain the same, or its
rights under such material Copyright License, may become affected.

         (c) (i) Each Credit Party shall promptly notify the Administrative
Agent of any filing by such Credit Party or any of its Domestic Subsidiaries,
either itself or through any agent, employee, licensee or designee (but in no
event later than the fifth Business Day following the last day of the fiscal
quarter in which such filing occurs), of any application for registration of any
Intellectual Property with the United States Copyright Office or United States
Patent and Trademark Office or any similar office or agency in any other country
or any political subdivision thereof.

                  (ii) Concurrently with the delivery of the quarterly and
         annual financial statements of the Borrower pursuant to Section 5.1(a)
         and (b) hereof, the Borrower shall provide to the Administrative Agent
         and its counsel a complete and correct list of all new Intellectual
         Property owned by or licensed to the Borrower or any of its Domestic
         Subsidiaries with respect to which the Administrative Agent has not
         filed a notice of grant of security interest with the United States
         Patent and Trademark Office or the United States Copyright Office or
         any similar office or agency in any other country or any political
         subdivision thereof, as applicable.

                                       70

<PAGE>

                  (iii) Upon request of the Administrative Agent, each Credit
         Party shall execute and deliver any and all agreements, instruments,
         documents, and papers as the Administrative Agent may reasonably
         request to evidence the Administrative Agent's security interest in the
         Intellectual Property and the general intangibles (including goodwill)
         related thereto or represented thereby.

         (d) The Credit Parties and their Subsidiaries will take all necessary
actions, including, without limitation, in any proceeding before the United
States Patent and Trademark Office or the United States Copyright Office, to
maintain the registration of each material registered Copyright, Patent and
Trademark owned by the Credit Parties and their Subsidiaries, including, without
limitation, payment of maintenance fees, filing of applications for renewal,
affidavits of use, affidavits of incontestability and opposition, interference
and cancellation proceedings.

         (e) In the event that any Credit Party becomes aware that any
Intellectual Property is infringed, misappropriated or diluted by a third party
in any material respect, such Credit Party shall notify the Administrative Agent
promptly after it learns thereof and shall, unless such Credit Party shall
reasonably determine that such Intellectual Property is not material to the
business of such Credit Party or the Credit Parties and their Subsidiaries taken
as a whole, promptly sue for infringement, misappropriation or dilution and to
recover any and all damages for such infringement, misappropriation or dilution,
and take such other actions as such Credit Party shall reasonably deem
appropriate under the circumstances to protect such Intellectual Property.

         Section 5.14      Deposit and Securities Accounts.

         The Credit Parties shall maintain each of their material deposit and
securities accounts with (a) a Lender or (b) a financial institution that has
entered into an account control agreement in form and substance reasonably
satisfactory to the Administrative Agent.

         Section 5.15      Further Assurances.

Upon the request of the Administrative Agent promptly perform or cause to be
performed any and all acts and execute or cause to be executed any and all
documents which are necessary or advisable to create or maintain in favor of the
Administrative Agent, for the benefit of the Lenders, Liens on all Collateral of
the Credit Parties that are duly perfected in accordance with all applicable
Requirements of Law.

         Section 5.16      Post-Closing Requirements.

         Within 30 days after the Closing Date, the Credit Parties shall deliver
to the Administrative Agent (a) an amendment to the Mortgage Instrument and an
endorsement to the Mortgage Policy for each Mortgaged Property set forth on
Schedule 5.16 and (ii) to the extent required by the Administrative Agent, an
opinion of counsel to the applicable Credit Party for the jurisdiction in which
each such Mortgaged Property is located, all of the foregoing documentation to
be in form and substance reasonably satisfactory to the Administrative Agent.

                                       71

<PAGE>

                                   ARTICLE VI

                               NEGATIVE COVENANTS

         The Credit Parties hereby covenant and agree that on the Closing Date,
and thereafter for so long as this Agreement is in effect and until the
Commitments have terminated, no Note remains outstanding and unpaid and the
Credit Party Obligations together with interest, Commitment Fee and all other
amounts owing to the Administrative Agent or any Lender hereunder, are paid in
full that:

         Section 6.1       Indebtedness.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, contract, create, incur, assume or permit to exist any Indebtedness, except:

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

         (b) Indebtedness existing as of the Closing Date as referenced in the
financial statements referenced in Section 3.1 (and set out more specifically in
Schedule 6.1(b)) hereto and renewals, refinancings or extensions thereof in a
principal amount not in excess of that outstanding as of the date of such
renewal, refinancing or extension;

         (c) Indebtedness incurred after the Closing Date consisting of Capital
Leases or Indebtedness incurred to provide all or a portion of the purchase
price of furniture, fixtures and equipment provided that (i) such Indebtedness
when incurred shall not exceed the purchase price or cost of construction of
such furniture, fixtures and equipment; (ii) no such Indebtedness shall be
refinanced for a principal amount in excess of the principal balance outstanding
thereon at the time of such refinancing; and (iii) the total amount of all such
Indebtedness shall not exceed $5,000,000 at any time outstanding and renewals,
refinancings or extensions thereof in a principal amount not in excess of that
outstanding as of the date of such renewal, refinancing or extension;

         (d) Unsecured intercompany Indebtedness among the Credit Parties;
provided that any such Indebtedness shall be fully subordinated to the Credit
Party Obligations hereunder on terms reasonably satisfactory to the
Administrative Agent;

         (e) Indebtedness and obligations owing under Hedging Agreements
relating to the Loans hereunder and other Hedging Agreements entered into in
order to manage existing or anticipated business risks and not for speculative
purposes;

         (f) Indebtedness and obligations of Credit Parties owing under
documentary letters of credit for the purchase of goods or other merchandise
(but not under standby, direct pay or other letters of credit except for the
Letters of Credit hereunder) generally;

                                       72

<PAGE>

         (g) Indebtedness in respect of Guaranty Obligations to the extent
permitted under Section 6.3;

         (h) Indebtedness in respect of Sale Leaseback Transactions to the
extent permitted under Section 6.12;

         (i) performance, surety, bid, appeal or similar bonds arising in the
ordinary course of business;

         (j) any Indebtedness owing by any Person prior to such Person becoming
a Subsidiary of a Credit Party pursuant to a Permitted Acquisition; provided
that such Indebtedness is not created in contemplation of such acquisition; and

         (k) other Indebtedness of the Credit Parties and their Subsidiaries
which does not exceed $500,000 in the aggregate at any time outstanding.

         Section 6.2       Liens.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, contract, create, incur, assume or permit to exist any Lien with respect to
any of its property or assets of any kind (whether real or personal, tangible or
intangible), whether now owned or hereafter acquired, except for Permitted
Liens. Notwithstanding the foregoing, if a Credit Party shall grant a Lien on
any of its assets in violation of this Section 6.2, then it shall be deemed to
have simultaneously granted an equal and ratable Lien on any such assets in
favor of the Administrative Agent for the benefit of the Lenders, to the extent
such a Lien has not already been granted to the Administrative Agent.

         Section 6.3       Guaranty Obligations.

         The Credit Parties will not enter into or otherwise become or be liable
in respect of any Guaranty Obligations (excluding specifically therefrom
endorsements in the ordinary course of business of negotiable instruments for
deposit or collection) other than (a) those in favor of the Lenders in
connection herewith, (b) guaranties given by the Borrower or any of its
Subsidiaries in connection with obligations not constituting Indebtedness
including real property leases and other contracts entered into in the ordinary
course of business and (iii) Guaranty Obligations by the Credit Parties and
their Subsidiaries permitted under Section 6.1 (except, as regards Indebtedness
under subsection (b) thereof, only if and to the extent such Indebtedness was
guaranteed on the Closing Date).

         Section 6.4       Nature of Business.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, alter its business in any material respect from that conducted as of the
Closing Date.

                                       73

<PAGE>

         Section 6.5       Consolidation, Merger, Sale or Purchase of Assets,
                           etc.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to:

                  (a) dissolve, liquidate or wind up its affairs, sell,
         transfer, lease to a third party or otherwise dispose of its property
         or assets or agree to do so at a future time except the following,
         without duplication, shall be expressly permitted:

                           (i) Specified Sales and Sale Leaseback Transactions
                  to the extent permitted under Section 6.12;

                           (ii) the disposition of property or assets as a
                  result of a Recovery Event;

                           (iii) the sale, lease, transfer or other disposition
                  of (A) machinery, parts and equipment no longer used or useful
                  in the conduct of the business of the Borrower or any of its
                  Subsidiaries and (B) property and assets located at or used in
                  connection with, or which are otherwise associated with,
                  restaurants that are not material to the business of any
                  Credit Party;

                           (iv) the sale, lease or transfer of property or
                  assets between Credit Parties, so long as the Liens of the
                  Administrative Agent with respect to such property or assets
                  remain in full force and effect and fully perfected after
                  giving effect to such transaction;

                           (v) the sale, lease or transfer of the properties set
                  forth on Schedule 2.6(b)(ii), and

                           (vi) the sale, lease or transfer of property or
                  assets not to exceed $1,000,000 in the aggregate in any fiscal
                  year and $5,000,000 in the aggregate during the term of this
                  Agreement;

         provided, that in each case (other than with respect to clause (iv)
         above) (A) at least 75% of the consideration received therefor by any
         Credit Party or any such Subsidiary shall be in the form of cash or
         Cash Equivalents, (B) after giving effect to the sale, lease, transfer
         or other disposition of such property or assets and the repayment of
         Indebtedness (if any) with the proceeds thereof, the Credit Parties
         shall be in compliance on a pro forma basis with the financial
         covenants set forth in Section 5.9 hereof and shall be in compliance
         with all other terms and conditions of this Agreement, and (C) no Event
         of Default shall exist or shall result from such sale, lease, transfer
         or other disposition of property or assets; provided, further, that
         with respect to any sale or transfer of property or assets permitted
         hereunder to an unrelated third party, the Administrative Agent shall
         be entitled, without the consent of the Lenders or the Required
         Lenders, to release its Liens relating to the particular property or
         assets sold; or

                                       74

<PAGE>

                  (b) (i) purchase, lease or otherwise acquire (in a single
         transaction or a series of related transactions) the property or assets
         of any Person (other than purchases or other acquisitions of inventory,
         materials, property and equipment in the ordinary course of business,
         except as otherwise limited or prohibited herein) or (ii) enter into
         any transaction of merger or consolidation, except for (A) investments
         or acquisitions (including Permitted Acquisitions) permitted pursuant
         to Section 6.6, and (B) the merger or consolidation of a Credit Party
         with and into another Credit Party; provided that if the Borrower is a
         party thereto, the Borrower will be the surviving corporation.

         Section 6.6       Advances, Investments and Loans.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, lend money or extend credit or make advances to any Person, or purchase or
acquire any Capital Stock, obligations or securities of, or any other interest
in, or make any capital contribution to, any Person except for Permitted
Investments.

         Section 6.7       Transactions with Affiliates.

         Except as permitted in subsection (iv), subsection (ix) or subsection
(x) of the definition of Permitted Investments or as permitted under Section
6.11, each of the Credit Parties will not, nor will it permit any Subsidiary to,
enter into any transaction or series of transactions, whether or not in the
ordinary course of business, with any officer, director, shareholder or
Affiliate other than on terms and conditions substantially as favorable as would
be obtainable in a comparable arm's-length transaction with a Person other than
an officer, director, shareholder or Affiliate.

         Section 6.8       Ownership of Subsidiaries; Restrictions.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, create, form or acquire any Subsidiaries, except for wholly-owned Domestic
Subsidiaries which are joined as Additional Credit Parties in accordance with
the terms hereof. Each of the Credit Parties will not, nor will it permit any
Subsidiary to, sell, transfer, pledge or otherwise dispose of any Capital Stock
or other equity interests in any of its Subsidiaries, nor will it, or permit any
Subsidiary to, issue, sell, transfer, pledge or otherwise dispose of any of its
Capital Stock or other equity interests, except as required by the Credit
Documents or pursuant to a transaction permitted by Section 6.5(a)(iv).

         Section 6.9       Fiscal Year; Organizational Documents; Material
                           Contracts.

         Each of the Credit Parties will not, nor will it permit any of its
Subsidiaries to, change its fiscal year. Each of the Credit Parties will not,
nor will they permit any of its Subsidiaries to, amend, modify or change their
articles of incorporation (or corporate charter or other similar organizational
document), operating agreement or bylaws (or other similar document) in any
material respect without the prior written consent of the Required Lenders. Each
of the Credit Parties will not, nor will it permit any of its Subsidiaries to,
without the prior written consent of the Administrative Agent, amend, modify,
cancel or terminate or fail to renew or extend or permit the amendment,
modification, cancellation or termination of any of the Material Contracts

                                       75

<PAGE>

(other than in the ordinary course of business), except in the event that such
amendments, modifications, cancellations or terminations could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

         Section 6.10      Limitation on Restricted Actions.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
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 Guarantor 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 Agreement
and the other Credit Documents, (ii) applicable law, (iii) any document or
instrument governing Indebtedness maintained pursuant to Section 6.1(b) or
incurred pursuant to Section 6.1(c), provided that any such restriction
contained therein relates only to the asset or assets constructed or acquired in
connection therewith or (iv) 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.

         Section 6.11      Restricted Payments.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, directly or indirectly, declare, order, make or set apart any sum for or pay
any Restricted Payment, except (a) to make dividends payable solely in the
common stock or equivalent equity interests of such Person, (b) to make
dividends or other distributions payable to any Credit Party (directly or
indirectly through Subsidiaries), (c) so long as no Default or Event of Default
shall have occurred and be continuing, the Parent may redeem and/or repurchase
shares of its Capital Stock pursuant to the terms of any employment agreement of
any officer or director of the Parent or any Subsidiary in an aggregate amount
not to exceed $500,000 in cash during the term of this Agreement and (d) the
Parent may redeem or purchase shares of its Capital Stock from the estate, heirs
or beneficiaries of Michael J. Snyder pursuant to the terms of his employment
contract with proceeds received by the Parent directly from the key man life
insurance policy maintained by the Parent pursuant to Section 5.5 in an
aggregate amount not to exceed $5,000,000.

         Section 6.12      Sale Leasebacks.

         No Credit Party will, directly or indirectly, (i) sell or transfer any
property (whether real, personal or mixed and whether now owned or hereafter
acquired) to a Person that is not a Credit Party (for purposes of this Section
6.12, the "Sale Leaseback Property") and then (ii) promptly lease (whether as an
operating lease or a Capital Lease), or guaranty a lease of, the Sale Leaseback
Property and use the Sale Leaseback Property for substantially the same purpose
in

                                       76

<PAGE>

existence prior to the sale or transfer (any such transaction, a "Sale Leaseback
Transaction"); provided, however, that Sale Leaseback Transactions shall be
permitted so long as such Sale Leaseback Transactions do not exceed an aggregate
amount of $2,000,000 during any fiscal year or an aggregate amount of $6,000,000
during the term of this Agreement.

         Section 6.13      No Further Negative Pledges.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, enter into, assume or become subject to any agreement prohibiting or
otherwise restricting the creation or assumption of any Lien upon its properties
or assets, whether now owned or hereafter acquired, or requiring the grant of
any security to secure obligations under such agreement if security is given for
some other obligation, except (a) pursuant to this Agreement and the other
Credit Documents, (b) pursuant to any document or instrument governing
Indebtedness incurred pursuant to Section 6.1(c), provided that any such
restriction contained therein relates only to the asset or assets constructed or
acquired in connection therewith, and (c) 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.

         Section 6.14      Amendments to Subordinated Debt, etc.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, after the issuance thereof, amend or modify (or permit the amendment or
modification of) any of the terms of any Subordinated Debt of such Credit Party
or Subsidiary if such amendment or modification would add or change any terms in
a manner adverse to the Lenders, 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 change any subordination
provision thereof.

         Section 6.15      Operating Lease Obligations.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, enter into, assume or permit to exist any obligations for the payment of
rent under Operating Leases which (a) with respect to all new stores opened in
each fiscal year in the aggregate for all such Persons would exceed (i)
$2,000,000 during fiscal year 2003, (ii) $2,500,000 in fiscal year 2004, (iii)
$2,500,000 in fiscal year 2005 and (iv) $2,500,000 in fiscal year 2006 and (b)
permit such rent obligations with respect to any such Operating Lease to
increase, on a year to year basis, by more than 20% pursuant to the terms of
such Operating Lease.

         Section 6.16      Management Fees.

         Each of the Credit Parties will not, nor will it permit any Subsidiary
to, directly or indirectly, pay any management, consulting or similar fees to
any Affiliate or to any manager, director, officer or employee of the Credit
Parties or any of their Subsidiaries, other than those payments included in the
corporate overhead of the Parent or any Subsidiary or other payments made in the
ordinary course of business without the prior written consent of the Required
Lenders.

                                       77

<PAGE>

         Section 6.17      Parent Holding Company/Maryland Subsidiaries.

         The Parent shall not engage in any activities or operations whatsoever,
other than (a) general administrative and other functions required by law, (b)
owning all of the Capital Stock of the Borrower, (c) guaranteeing the Credit
Party Obligations pursuant to the terms of this Agreement and the other Credit
Documents and performing its obligations hereunder and thereunder and (d) those
activities or operations that are incidental to its status as a publicly held
parent holding company. None of the Maryland Subsidiaries shall engage in any
activities or operations whatsoever, other than (a) general administrative and
other functions required by law, (b) owning their respective liquor licenses and
(c) guaranteeing the Credit Party Obligations pursuant to the terms of this
Agreement and the other Credit Documents and performing their respective
obligations hereunder and thereunder.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

         Section 7.1       Events of Default.

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

                  (a) The Borrower shall fail to pay any principal on any Loan
         when due (whether at maturity, by reason of acceleration or otherwise)
         in accordance with the terms hereof; or the Borrower shall fail to
         reimburse the Issuing Lender for any LOC Obligations when due (whether
         at maturity, by reason of acceleration or otherwise) in accordance with
         the terms hereof; or the Borrower shall fail to pay any interest on any
         Loan or other Credit Party Obligation or any fee or other amount
         payable hereunder when due (whether at maturity, by reason of
         acceleration or otherwise) in accordance with the terms hereof and such
         failure to pay shall continue unremedied for three (3) Business Days;
         or any Guarantor shall fail to pay on the Guaranty in respect of any of
         the foregoing or in respect of any other Guaranty Obligations
         hereunder; or

                  (b) Any representation or warranty made or deemed made herein,
         in the Security Documents or in any of the other Credit Documents or
         which is contained in any certificate, document or financial statement
         furnished at any time under or in connection with this Agreement
         provided by a Responsible Officer shall prove to have been incorrect,
         false or misleading in any material respect on or as of the date made
         or deemed made; or

                  (c) (i) Any Credit Party shall fail to perform, comply with or
         observe any term, covenant or agreement applicable to it contained in
         Sections 5.1, 5.2, 5.4, 5.6 (with respect to inspections), 5.7 or 5.9
         or Article VI hereof; or (ii) any Credit Party shall fail to comply
         with any other covenant, contained in this Agreement or the other
         Credit

                                       78

<PAGE>

         Documents(other than as described in Sections 7.1(a) or 7.1(c)(i)
         above), and in the event such breach or failure to comply is capable of
         cure, is not cured within the time prescribed therein, or to the extent
         not prescribed therein, within thirty (30) days of its occurrence; or

                  (d) Any Credit Party or any of its Subsidiaries shall (i)
         default in any payment of principal of or interest on any Indebtedness
         (other than the Indebtedness hereunder) in a principal amount
         outstanding of at least $500,000 in the aggregate for the Credit
         Parties and their Subsidiaries beyond the period of grace (not to
         exceed 30 days), if any, provided in the instrument or agreement under
         which such Indebtedness was created; or (ii) default in the observance
         or performance of any other agreement or condition relating to any
         Indebtedness (other than the Indebtedness hereunder) in a principal
         amount outstanding of at least $500,000 in the aggregate for the Credit
         Parties and their Subsidiaries or contained in any instrument or
         agreement evidencing, securing or relating thereto, or any other event
         shall occur or condition exist, the effect of which default or other
         event or condition is to cause, or to permit the holder or holders of
         such Indebtedness or beneficiary or beneficiaries of such Indebtedness
         (or a trustee or agent on behalf of such holder or holders or
         beneficiary or beneficiaries) to cause, with the giving of notice if
         required, such Indebtedness to become due prior to its stated maturity;
         or

                  (e) (i) Any Credit Party or any of its Subsidiaries shall
         commence any case, proceeding or other action (A) under any existing or
         future law of any jurisdiction, domestic or foreign, relating to
         bankruptcy, insolvency, reorganization or relief of debtors, seeking to
         have an order for relief entered with respect to it, or seeking to have
         it judged bankrupt or insolvent, or seeking reorganization,
         arrangement, adjustment, winding-up, liquidation, dissolution,
         composition or other relief with respect to it or its debts, or (B)
         seeking appointment of a receiver, trustee, custodian, conservator or
         other similar official for it or for all or any substantial part of its
         assets, or any Credit Party or any of its Subsidiaries shall make a
         general assignment for the benefit of its creditors; or (ii) there
         shall be commenced against any Credit Party or any of its Subsidiaries
         any case, proceeding or other action of a nature referred to in clause
         (i) above which (A) results in the entry of an order for relief or any
         such adjudication or appointment or (B) remains undismissed,
         undischarged or unbonded for a period of 60 days; or (iii) there shall
         be commenced against any Credit Party or any of its Subsidiaries any
         case, proceeding or other action seeking issuance of a warrant of
         attachment, execution, distraint or similar process against all or any
         substantial part of their assets which results in the entry of an order
         for any such relief which shall not have been vacated, discharged, or
         stayed or bonded pending appeal within 60 days from the entry thereof;
         or (iv) any Credit Party or any of its Subsidiaries shall take any
         action in furtherance of, or indicating its consent to, approval of, or
         acquiescence in, any of the acts set forth in clause (i), (ii), or
         (iii) above; or (v) any Credit Party or any of its Subsidiaries shall
         generally not, or shall be unable to, or shall admit in writing its
         inability to, pay its debts as they become due; or

                  (f) One or more judgments, orders, decrees or arbitration
         awards shall be entered against any Credit Party or any of its
         Subsidiaries involving in the aggregate a liability (to the extent not
         covered by third-party insurance with respect to which

                                       79

<PAGE>

         coverage has not been disputed by the insurer for a period in excess of
         ninety (90) days; provided however that such ninety (90) day period
         shall no longer be in effect to extent that any such judgment, order,
         decree or arbitration award shall be executed upon at any time during
         such period by the holder thereof) of $500,000 or more and all such
         judgments, orders, decrees or arbitration awards shall not have been
         paid and satisfied, vacated, discharged, stayed or bonded pending
         appeal within 10 Business Days from the entry thereof or any
         injunction, temporary restraining order or similar decree shall be
         issued against any Credit Party or any of its Subsidiaries that could
         reasonably be expected to result in a Material Adverse Effect; or

                  (g) (i) Any Person shall engage in any "prohibited
         transaction" (as defined in Section 406 of ERISA or Section 4975 of the
         Code) involving any Plan, (ii) any "accumulated funding deficiency" (as
         defined in Section 302 of ERISA), whether or not waived, shall exist
         with respect to any Plan or any Lien in favor of the PBGC or a Plan
         (other than a Permitted Lien) shall arise on the assets of any Credit
         Party, any of its Subsidiaries or any Commonly Controlled Entity, (iii)
         a Reportable Event shall occur with respect to, or proceedings shall
         commence to have a trustee appointed, or a trustee shall be appointed,
         to administer or to terminate, any Single Employer Plan, which
         Reportable Event or commencement of proceedings or appointment of a
         Trustee is, in the reasonable opinion of the Required Lenders, likely
         to result in the termination of such Plan for purposes of Title IV of
         ERISA, (iv) any Single Employer Plan shall terminate for purposes of
         Title IV of ERISA, (v) any Credit Party, any of its Subsidiaries or any
         Commonly Controlled Entity shall, or in the reasonable opinion of the
         Required Lenders is likely to, incur any liability in connection with a
         withdrawal from, or the Insolvency or Reorganization of, any
         Multiemployer Plan or (vi) any other similar event or condition shall
         occur or exist with respect to a Plan; and in each case in clauses (i)
         through (vi) above, such event or condition, together with all other
         such events or conditions, if any, could have a Material Adverse
         Effect; or

                  (h) There shall occur a Change of Control; or

                  (i) The Guaranty or any provision thereof for any reason shall
         cease to be in full force and effect or any Guarantor or any Person
         acting by or on behalf of any Guarantor shall deny or disaffirm any
         Guarantor's obligations under the Guaranty; or

                  (j) Any other Credit Document shall fail to be in full force
         and effect or to give the Administrative Agent and/or the Lenders the
         security interests, liens, rights, powers and privileges purported to
         be created thereby in any material respect (except as such documents
         may be terminated or no longer in force and effect in accordance with
         the terms thereof, other than those indemnities and provisions which by
         their terms shall survive) or any Lien shall fail to be perfected on a
         material portion of the Collateral; or

                  (k) Any uninsured damage to or loss, theft or destruction or
         any assets of any Credit Party or any of its Subsidiaries shall occur
         that is in excess of $1,000,000.

                                       80

<PAGE>

         Section 7.2       Acceleration; Remedies.

         Upon the occurrence and during the continuation of an Event of Default,
then, (a) if such event is an Event of Default specified in Section 7.1(e)
above, automatically the Commitments shall immediately terminate and the Loans
(with accrued interest thereon), and all other Credit Party Obligations under
the Credit Documents (including without limitation the maximum amount of all
contingent liabilities under Letters of Credit) shall immediately become due and
payable, and the Borrower shall immediately pay to the Administrative Agent cash
collateral as security for the LOC Obligations for subsequent drawings under
then outstanding Letters of Credit in an amount equal to the maximum amount
which may be drawn under Letters of Credit then outstanding and (b) if such
event is any other Event of Default, any of the following actions may be taken:
with the written consent of the Required Lenders, the Administrative Agent may,
or upon the written request of the Required Lenders, the Administrative Agent
shall, (i) by notice to the Borrower declare all or any portion of the
Commitments to be terminated forthwith, whereupon such Commitments shall
immediately terminate, (ii) by notice of default to the Borrower, declare the
Loans (with accrued interest thereon) and all other Credit Party Obligations
under the Credit Documents (including without limitation the maximum amount of
all contingent liabilities under Letters of Credit) to be due and payable
forthwith and direct the Borrower to pay to the Administrative Agent cash
collateral as security for the LOC Obligations for subsequent drawings under
then outstanding Letters of Credit an amount equal to the maximum amount of
which may be drawn under Letters of Credit then outstanding, whereupon the same
shall immediately become due and payable, (iii) hire, at the expense of the
Credit Parties, one or more consultants and the Credit Parties agree to
cooperate with such consultants, (iv) exercise any rights or remedies of the
Administrative Agent or the Lenders under this Agreement or any other Credit
Document, including, without limitation, any rights or remedies with respect to
the Collateral, and (v) exercise any rights or remedies available to the
Administrative Agent or Lenders under applicable law.

                                  ARTICLE VIII

                                    THE AGENT

         Section 8.1       Appointment.

         Each Lender hereby irrevocably designates and appoints Wachovia as the
Administrative Agent of such Lender under this Agreement, and each such Lender
irrevocably authorizes Wachovia, as the Administrative Agent for such Lender, to
take such action on its behalf under the provisions of this Agreement and to
exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement, together with such other
powers as are reasonably incidental thereto. Notwithstanding any provision to
the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or
any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or otherwise exist against the Administrative Agent.

                                       81

<PAGE>

         Section 8.2       Delegation of Duties.

         The Administrative Agent may execute any of its duties under this
Agreement by or through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agents or attorneys-in-fact selected by it with reasonable care. Without
limiting the foregoing, the Administrative Agent may appoint one of its
affiliates as its agent to perform its the functions of the Administrative Agent
hereunder relating to the advancing of funds to the Borrower and distribution of
funds to the Lenders and to perform such other related functions of the
Administrative Agent hereunder as are reasonably incidental to such functions.

         Section 8.3       Exculpatory Provisions.

         Neither the Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement (except for its or such Person's own gross
negligence or willful misconduct) or (ii) responsible in any manner to any of
the Lenders for any recitals, statements, representations or warranties made by
the Borrower or any officer thereof contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent under or in connection with, this
Agreement or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of any of the Credit Documents or for any failure of the Borrower
to perform their obligations hereunder or thereunder. The Administrative Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance by the Borrower of any of the agreements contained
in, or conditions of, this Agreement, or to inspect the properties, books or
records of the Borrower.

         Section 8.4       Reliance by Administrative Agent.

         The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any Note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it in
good faith 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, without limitation, counsel to the Borrower), independent
accountants and other experts selected by the Administrative Agent. The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless (a) a written notice of assignment, negotiation
or transfer thereof shall have been filed with the Administrative Agent and (b)
the Administrative Agent shall have received the written agreement of such
assignee to be bound hereby as fully and to the same extent as if such assignee
were an original Lender party hereto, in each case in form satisfactory to the
Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement unless it shall
first receive such advice or concurrence of the Required Lenders as it deems
appropriate or it shall first be indemnified to its satisfaction by the Lenders
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

                                       82

<PAGE>

Agent shall in all cases be fully protected in acting, or in refraining from
acting, under any of the Credit Documents in accordance with a request of the
Required Lenders or all of the Lenders, as may be required under this Agreement,
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all the Lenders and all future holders of the Notes.

         Section 8.5       Notice of Default.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower referring
to this Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default". In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by
the Required Lenders; provided, however, that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Lenders except to the extent that
this Agreement expressly requires that such action be taken, or not taken, only
with the consent or upon the authorization of the Required Lenders, or all of
the Lenders, as the case may be.

         Section 8.6       Non-Reliance on Administrative Agent and Other
                           Lenders.

         Each Lender expressly acknowledges that neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates has made any representation or warranty to it and that no act by
the Administrative Agent hereinafter taken, including any review of the affairs
of the Borrower, shall be deemed to constitute any representation or warranty by
the Administrative Agent to any Lender. Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower and made its own decision to make
its Loans hereunder and enter into this Agreement. Each Lender also represents
that it will, independently and without reliance upon the Administrative Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Borrower which may come into
the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

                                       83

<PAGE>

         Section 8.7       Indemnification.

         The Lenders agree to indemnify the Administrative Agent in its capacity
hereunder (to the extent not reimbursed by the Borrower and without limiting the
obligation of the Borrower to do so), ratably according to their respective
Revolving Commitment Percentages in effect on the date on which indemnification
is sought under this Section, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Notes)
be imposed on, incurred by or asserted against the Administrative Agent in any
way relating to or arising out of any Credit Document or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the
Administrative Agent under or in connection with any of the foregoing; provided,
however, that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements to the extent resulting from the Administrative
Agent's gross negligence or willful misconduct, as determined by a court of
competent jurisdiction. The agreements in this Section 8.7 shall survive the
termination of this Agreement and payment of the Notes and all other amounts
payable hereunder.

         Section 8.8       Administrative Agent in Its Individual Capacity.

         The Administrative Agent and its affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrower as
though the Administrative Agent were not the Administrative Agent hereunder.
With respect to its Loans made or renewed by it and any Note issued to it, the
Administrative Agent shall have the same rights and powers under this Agreement
as any Lender and may exercise the same as though it were not the Administrative
Agent, and the terms "Lender" and "Lenders" shall include the Administrative
Agent in its individual capacity.

         Section 8.9       Successor Administrative Agent.

         The Administrative Agent may resign as Administrative Agent upon 30
days' prior notice to the Borrower and the Lenders. If the Administrative Agent
shall resign as Administrative Agent under this Agreement and the Notes, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall be approved by the Borrower with such
approval not to be unreasonably withheld (provided, however if an Event of
Default shall exist at such time, no approval of the Borrower shall be required
hereunder), whereupon such successor agent shall succeed to the rights, powers
and duties of the Administrative Agent, and the term "Administrative Agent"
shall mean such successor agent effective upon such appointment and approval,
and the former Administrative Agent's rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Notes. After any retiring Administrative
Agent's resignation as Administrative Agent, the provisions of this Section 8.9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.

                                       84

<PAGE>

                  Section 8.10      Nature of Duties.

         Except as otherwise expressly stated herein, any agent (other than the
Administrative Agent) or co-lead arranger listed from time to time on the cover
page of this Agreement shall have no obligations, responsibilities or duties
under this Agreement or under any other Credit Document other than obligations,
responsibilities and duties applicable to all Lenders in their capacity as
Lenders; provided, however, that such agents and co-lead arrangers shall be
entitled to the same rights, protections, exculpations and indemnifications
granted to the Administrative Agent under this Article VIII in their capacity as
an agent or co-lead arranger.

                                   ARTICLE IX

                                  MISCELLANEOUS

         Section 9.1       Amendments, Waivers and Release of Collateral.

         Neither this Agreement, nor any of the Notes, nor any of the other
Credit Documents, nor any terms hereof or thereof may be amended, supplemented,
waived or modified except in accordance with the provisions of this Section nor
may be released except as specifically provided herein or in the Security
Documents or in accordance with the provisions of this Section 9.1. The Required
Lenders may, or, with the written consent of the Required Lenders, the
Administrative Agent may, from time to time, (a) enter into with the Borrower
written amendments, supplements or modifications hereto and to the other Credit
Documents for the purpose of adding any provisions to this Agreement or the
other Credit Documents or changing in any manner the rights of the Lenders or of
the Borrower hereunder or thereunder or (b) waive, on such terms and conditions
as the Required Lenders may specify in such instrument, any of the requirements
of this Agreement or the other Credit Documents or any Default or Event of
Default and its consequences; provided, however, that no such waiver and no such
amendment, waiver, supplement, modification or release shall:

                           (i) (A) reduce the amount or extend the scheduled
                  date of maturity of any Loan or Note or any installment
                  thereon or waive any payment default, (B) extend the
                  expiration date of a Letter of Credit beyond the Maturity
                  Date, (C) reduce the stated rate of any interest or fee
                  payable hereunder (other than interest at the increased
                  post-default rate) or extend the scheduled date of any payment
                  thereof, or (D) increase the amount or extend the expiration
                  date of any Lender's Commitment, in each case without the
                  written consent of each Lender directly affected thereby, or

                           (ii) amend, modify or waive any provision of Section
                  2.11, Section 2.16, this Section 9.1 or change the percentage
                  specified in the definition of Required Lenders, without the
                  written consent of all the Lenders, or

                           (iii) amend, modify or waive any provision of Article
                  VIII without the written consent of the then Administrative
                  Agent, or

                                       85

<PAGE>

                           (iv) release the Parent or the Borrower from its
                  obligations under the Credit Documents or any material
                  Guarantor from its obligations under the Guaranty, without the
                  written consent of all of the Lenders, or

                           (v) release all or any material portion of the
                  Collateral, without the written consent of all of the Lenders
                  and any party to a Hedging Agreement secured by the
                  Collateral, or

                           (vi) amend, modify or waive any provision of the
                  Credit Documents requiring consent, approval or request of the
                  Required Lenders or all Lenders, without the written consent
                  of all of the Required Lenders or Lenders as appropriate and,
                  provided, further, that no amendment, waiver or consent
                  affecting the rights or duties of the Administrative Agent or
                  the Issuing Lender under any Credit Document shall in any
                  event be effective, unless in writing and signed by the
                  Administrative Agent and/or the Issuing Lender, as applicable,
                  in addition to the Lenders required hereinabove to take such
                  action.

         Any such waiver, any such amendment, supplement or modification and any
such release shall apply equally to each of the Lenders and shall be binding
upon the Borrower, the other Credit Parties, the Lenders, the Issuing Lender,
the Administrative Agent and all future holders of the Notes. In the case of any
waiver, the Borrower, the other Credit Parties, the Lenders, the Issuing Lender
and the Administrative Agent shall be restored to their former position and
rights hereunder and under the outstanding Loans and Notes and other Credit
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent thereon.

         Notwithstanding any of the foregoing to the contrary, the consent of
the Borrower shall not be required for any amendment, modification or waiver of
the provisions of Article VIII (other than the provisions of Section 8.9);
provided, however, that the Administrative Agent will provide written notice to
the Borrower of any such amendment, modification or waiver. In addition, the
Borrower and the Lenders hereby authorize the Administrative Agent to modify
this Agreement by unilaterally amending or supplementing Schedule 2.1(a) and
Section 9.2 from time to time in the manner requested by the Borrower, the
Administrative Agent or any Lender in order to reflect any assignments or
transfers of the Loans as provided for hereunder; provided, however, that the
Administrative Agent shall promptly deliver a copy of any such modification to
the Borrower and each Lender.

         Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (x) each Lender is
entitled to vote as such Lender sees fit on any bankruptcy reorganization plan
that affects the Loans, and each Lender acknowledges that the provisions of
Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent
provisions set forth herein and (y) the Required Lenders may consent to allow a
Credit Party to use cash collateral in the context of a bankruptcy or insolvency
proceeding.

                                       86

<PAGE>

         Section 9.2       Notices.

         Except as otherwise provided in Article II, all notices, requests and
demands to or upon the respective parties hereto to be effective shall be in
writing (including by telecopy), and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made (a) when delivered by
hand, (b) when transmitted via telecopy (or other facsimile device) to the
number set out herein, (c) the next weekday following the day on which the same
has been delivered prepaid 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, addressed
as follows in the case of the Borrower, the other Credit Parties and the
Administrative Agent, and as set forth on Schedule 9.2 in the case of the
Lenders, or to such other address as may be hereafter notified by the respective
parties hereto and any future holders of the Notes:

     The Borrower          Red Robin International, Inc.
     and the other         5575 DTC Parkway, Suite 110
     Credit Parties:       Greenwood Village, CO  80111
                           Attention: Jim McCloskey, Chief Financial Officer
                           Telecopier: (303) 846-6013
                           Telephone: (303) 846-6011

                           with a copy to:
                           O'Melveny & Myers, LLP
                           610 Newport Center Drive, Suite 1700
                           Newport Beach, CA  92660
                           Attention:  Tom Leary, Esq.
                           Telecopier: (949) 823-6994
                           Telephone: (949) 823-7118

     The Administrative    Wachovia Bank, National Association, as
     Agent:                    Administrative Agent
                           Charlotte Plaza
                           201 South College Street, CP-23
                           Charlotte, North Carolina  28288-0680
                           Attention: Syndication Agency Services
                           Telecopier: (704) 383-0288
                           Telephone:  (704) 383-3721

                           with a copy to:

                           Wachovia Bank, National Association
                           301 South College Street
                           NC0760
                           Charlotte, North Carolina  28288
                           Attention:  David Hauglid
                           Telecopier:  (704) 374-6319
                           Telephone:  (704) 383-3544

                                       87

<PAGE>

         Section 9.3       No Waiver; Cumulative Remedies.

         No failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

         Section 9.4       Survival of Representations and Warranties.

         All representations and warranties made hereunder and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the Notes and the
making of the Loans, provided that all such representations and warranties shall
terminate on the date upon which the Commitments have been terminated and all
amounts owing hereunder and under any Notes have been paid in full.

         Section 9.5       Payment of Expenses and Taxes.

         The Borrower agrees (a) to pay or reimburse each Lender and the
Administrative Agent for all its reasonable out-of-pocket costs and expenses
incurred in connection with the development, preparation, negotiation, printing
and execution of, and any amendment, supplement or modification to, this
Agreement and the other Credit Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of the
transactions contemplated hereby and thereby, together with the reasonable fees
and disbursements of counsel to each Lender and the Administrative Agent, (b) to
pay or reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the Notes and any such other documents, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent and to the Lenders (including reasonable allocated costs of
in-house legal counsel), and (c) on demand, to pay, indemnify, and hold each
Lender and the Administrative Agent harmless from, any and all recording and
filing fees and any and all liabilities with respect to, or resulting from any
delay in paying, stamp, excise and other similar taxes, if any, which may be
payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, the Credit Documents and any such other
documents, and (d) to pay, indemnify, and hold each Lender and the
Administrative Agent and their Affiliates (collectively, the Indemnified
Parties") harmless from and against, any and all other liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever (irrespective of whether the
Indemnified Party is named as a party to any litigation or proceeding) with
respect to the execution, delivery, enforcement, performance and administration
of the Credit Documents and any such other documents and the use, or proposed
use, of proceeds of the Loans (all of the foregoing, collectively, a "Third
Party Claim"; provided, however, that the Borrower shall not have any obligation
hereunder to the Administrative Agent or any Lender with respect to Third Party
Claims arising from the gross

                                       88

<PAGE>

negligence or willful misconduct of the Administrative Agent or any such Lender,
as determined by a court of competent jurisdiction in a final and non-appealable
judgment; provided, further, that (i) each Indemnified Party shall promptly
notify the Borrower in writing upon becoming aware of the initiation of any
Third Party Claim against it, (ii) the Borrower shall be entitled to participate
in the defense of any such Third Party Claim and, if the borrower so chooses, to
assume the defense, at the Borrower's expense, of any such Third Party Claim
with counsel selected by the Borrower (it being understood that any Indemnified
Party shall have the right to participate in such defense and employ counsel
separate from the counsel employed by the Borrower, and that such counsel shall
be at the expense of such Indemnified Party unless such Indemnified Party shall
have been advised by counsel that there may be legal defenses available to it
that are inconsistent with or in addition to those available to the Borrower, in
which case such counsel shall be at the Borrower's expense) and (iii) no
Indemnified Party shall settle any Third Party Claim without the Borrower's
prior written consent (such consent not to be unreasonably withheld). The
agreements in this Section 9.5 shall survive repayment of the Loans, Notes and
all other amounts payable hereunder.

         Section 9.6       Successors and Assigns; Participations; Purchasing
                           Lenders.

         (a) This Agreement shall be binding upon and inure to the benefit of
the Borrower, the Lenders, the Administrative Agent, all future holders of the
Notes and their respective successors and assigns, except that the Borrower and
the Guarantors may not assign or transfer any of their rights or obligations
under this Agreement or the other Credit Documents without the prior written
consent of each Lender.

         (b) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time sell to one or more
banks or other entities ("Participants") participating interests in any Loan
owing to such Lender, any Note held by such Lender, any Commitment of such
Lender, or any other interest of such Lender hereunder. In the event of any such
sale by a Lender of participating interests to a Participant, such Lender's
obligations under this Agreement to the other parties to this Agreement shall
remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Note for
all purposes under this Agreement, and the Borrower and the Administrative Agent
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement. No Lender shall
transfer or grant any participation under which the Participant shall have
rights to approve any amendment to or waiver of this Agreement or any other
Credit Document except to the extent such amendment or waiver would (i) extend
the scheduled maturity of any Loan or Note or any installment thereon in which
such Participant is participating, or reduce the stated rate or extend the time
of payment of interest or fees thereon (except in connection with a waiver of
interest at the increased post-default rate) or reduce the principal amount
thereof, or increase the amount of the Participant's participation over the
amount thereof then in effect (it being understood that a waiver of any Default
or Event of Default shall not constitute a change in the terms of such
participation, and that an increase in any Commitment or Loan shall be permitted
without consent of any participant if the Participant's participation is not
increased as a result thereof), (ii) release all or substantially all of the
Guarantors from their obligations under the Guaranty, (iii) release all or
substantially all of the Collateral, or (iv) consent to the assignment or
transfer

                                       89

<PAGE>

by the Borrower or the Guarantors of any of their rights and obligations under
this Agreement. In the case of any such participation, the Participant shall not
have any rights under this Agreement or any of the other Credit Documents (the
Participant's rights against such Lender in respect of such participation to be
those set forth in the agreement executed by such Lender in favor of the
Participant relating thereto) and all amounts payable by the Borrower hereunder
shall be determined as if such Lender had not sold such participation, provided
that each Participant shall be entitled to the benefits of Sections 2.15, 2.16,
2.17 and 9.5 with respect to its participation in the Commitments and the Loans
outstanding from time to time; provided, that no Participant shall be entitled
to receive any greater amount pursuant to such Sections than the transferor
Lender would have been entitled to receive in respect of the amount of the
participation transferred by such transferor Lender to such Participant had no
such transfer occurred.

         (c) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time, sell or assign to
any Lender or any affiliate or Related Fund thereof and, with the consent of the
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower (in each case, which consent shall not be unreasonably
withheld), to one or more additional banks or financial institutions or entities
("Purchasing Lenders"), all or any part of its rights and obligations under this
Agreement and the Notes in minimum amounts of $5,000,000 (or, if less, the
entire amount of such Lender's interests and obligations), pursuant to a
Commitment Transfer Supplement, executed by such Purchasing Lender and such
transferor Lender (and, in the case of a Purchasing Lender that is not then a
Lender or an affiliate or Related Fund thereof, the Administrative Agent and, so
long as no Event of Default has occurred and is continuing, the Borrower), and
delivered to the Administrative Agent for its acceptance and recording in the
Register. Upon such execution, delivery, acceptance and recording, from and
after the Transfer Effective Date specified in such Commitment Transfer
Supplement, (x) the Purchasing Lender thereunder shall be a party hereto and, to
the extent provided in such Commitment Transfer Supplement, have the rights and
obligations of a Lender hereunder with a Commitment as set forth therein, and
(y) the transferor Lender thereunder shall, to the extent provided in such
Commitment Transfer Supplement, be released from its obligations under this
Agreement (and, in the case of a Commitment Transfer Supplement covering all or
the remaining portion of a transferor Lender's rights and obligations under this
Agreement, such transferor Lender shall cease to be a party hereto). Such
Commitment Transfer Supplement shall be deemed to amend this Agreement to the
extent, and only to the extent, necessary to reflect the addition of such
Purchasing Lender and the resulting adjustment of Revolving Commitment
Percentages arising from the purchase by such Purchasing Lender of all or a
portion of the rights and obligations of such transferor Lender under this
Agreement and the Notes. On or prior to the Transfer Effective Date specified in
such Commitment Transfer Supplement, the Borrower, at its own expense, shall
execute and deliver to the Administrative Agent in exchange for the Notes
delivered to the Administrative Agent pursuant to such Commitment Transfer
Supplement new Notes to the order of such Purchasing Lender in an amount equal
to the Commitment assumed by it pursuant to such Commitment Transfer Supplement
and, unless the transferor Lender has not retained a Commitment hereunder, new
Notes to the order of the transferor Lender in an amount equal to the Commitment
retained by it hereunder. Such new Notes shall be dated the Closing Date and
shall

                                       90

<PAGE>

otherwise be in the form of the Notes replaced thereby. The Notes surrendered by
the transferor Lender shall be returned by the Administrative Agent to the
Borrower marked "canceled".

         (d) The Administrative Agent shall maintain at its address referred to
in Section 9.2 a copy of each Commitment Transfer Supplement delivered to it and
a register (the "Register") for the recordation of the names and addresses of
the Lenders and the Commitment of, and principal amount of the Loans owing to,
each Lender from time to time. The entries in the Register shall be conclusive,
in the absence of manifest error, and the Borrower, the Administrative Agent and
the Lenders may treat each Person whose name is recorded in the Register as the
owner of the Loan recorded therein for all purposes of this Agreement. The
Register shall be available for inspection by the Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

         (e) Upon its receipt of a duly executed Commitment Transfer Supplement,
together with payment to the Administrative Agent by the transferor Lender or
the Purchasing Lender, as agreed between them, of a registration and processing
fee of $3,500.00 for each Purchasing Lender (other than an affiliate of such
Lender or a Related Fund) listed in such Commitment Transfer Supplement and the
Notes subject to such Commitment Transfer Supplement, the Administrative Agent
shall (i) accept such Commitment Transfer Supplement, (ii) record the
information contained therein in the Register and (iii) give prompt notice of
such acceptance and recordation to the Lenders and the Borrower.

         (f) The Borrower authorizes each Lender to disclose to any Participant
or Purchasing Lender (each, a "Transferee") and any prospective Transferee any
and all financial information in such Lender's possession concerning the
Borrower and its Affiliates which has been delivered to such Lender by or on
behalf of the Borrower pursuant to this Agreement or which has been delivered to
such Lender by or on behalf of the Borrower in connection with such Lender's
credit evaluation of the Borrower and its Affiliates prior to becoming a party
to this Agreement, in each case subject to Section 9.15.

         (g) At the time of each assignment pursuant to this Section 9.6 to a
Person which is not already a Lender hereunder and which is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) for Federal
income tax purposes, the respective assignee Lender shall provide to the
Borrower and the Administrative Agent the appropriate Internal Revenue Service
Forms (and, if applicable, a 2.17 Certificate) described in Section 2.16.

         (h) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure obligations of
such Lender, including any such pledge or assignment to a Federal Reserve Bank,
and this Section 9.6 shall not apply to any such pledge or assignment of a
security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such assignee for such Lender as a party hereto.

                                       91

<PAGE>

         Section 9.7       Adjustments; Set-off.

         (a) Each Lender agrees that if any Lender (a "benefited Lender") shall
at any time receive any payment of all or part of its Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 7.1(e), or otherwise) in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect
of such other Lender's Loans, or interest thereon, such benefited Lender shall
purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender's Loan, or shall provide such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such benefited Lender to share the excess payment or benefits
of such collateral or proceeds ratably with each of the Lenders; provided,
however, that if all or any portion of such excess payment or benefits is
thereafter recovered from such benefited Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest. The Borrower agrees that each Lender so
purchasing a portion of another Lender's Loans may exercise all rights of
payment (including, without limitation, rights of set-off) with respect to such
portion as fully as if such Lender were the direct holder of such portion.

         (b) In addition to any rights and remedies of the Lenders provided by
law (including, without limitation, other rights of set-off), each Lender shall
have the right, without prior notice to the Borrower, any such notice being
expressly waived by the Borrower to the extent permitted by applicable law, upon
the occurrence of any Event of Default, to setoff and appropriate and apply any
and all deposits (general or special, time or demand, provisional or final), in
any currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or agency
thereof to or for the credit or the account of the Borrower, or any part thereof
in such amounts as such Lender may elect, against and on account of the
obligations and liabilities of the Borrower to such Lender hereunder and claims
of every nature and description of such Lender against the Borrower, in any
currency, whether arising hereunder, under the Notes or under any documents
contemplated by or referred to herein or therein, as such Lender may elect,
whether or not such Lender has made any demand for payment and although such
obligations, liabilities and claims may be contingent or unmatured. The
aforesaid right of set-off may be exercised by such Lender against the Borrower
or against any trustee in bankruptcy, debtor in possession, assignee for the
benefit of creditors, receiver or execution, judgment or attachment creditor of
the Borrower, or against anyone else claiming through or against the Borrower or
any such trustee in bankruptcy, debtor in possession, assignee for the benefit
of creditors, receiver, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been
exercised by such Lender prior to the occurrence of any Event of Default. Each
Lender agrees promptly to notify the Borrower and the Administrative Agent after
any such set-off and application made by such Lender; provided, however, that
the failure to give such notice shall not affect the validity of such set-off
and application.

                                       92

<PAGE>

         Section 9.8       Table of Contents and Section Headings.

         The table of contents and the Section and subsection headings herein
are intended for convenience only and shall be ignored in construing this
Agreement.

         Section 9.9       Counterparts.

         This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set
of the copies of this Agreement signed by all the parties shall be lodged with
the Borrower and the Administrative Agent.

         Section 9.10      Effectiveness.

         This Agreement shall become effective on the date on which all of the
parties have signed a copy hereof (whether the same or different copies) and
shall have delivered the same to the Administrative Agent pursuant to Section
9.2 or, in the case of the Lenders, shall have given to the Administrative Agent
written, telecopied or telex notice (actually received) at such office that the
same has been signed and mailed to it.

         Section 9.11      Severability.

         Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         Section 9.12      Integration.

         This Agreement and the Notes represent the agreement of the Borrower,
the Administrative Agent and the Lenders with respect to the subject matter
hereof, and there are no promises, undertakings, representations or warranties
by the Administrative Agent, the Borrower or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or in the Notes.

         Section 9.13      Governing Law.

         This Agreement and the Notes and the rights and obligations of the
parties under this Agreement and the Notes shall be governed by, and construed
and interpreted in accordance with, the law of the State of North Carolina.

         Section 9.14      Consent to Jurisdiction and Service of Process.

         All judicial proceedings brought against the Borrower and/or any other
Credit Party with respect to this Agreement, any Note or any of the other Credit
Documents may be brought in any

                                       93

<PAGE>

state or federal court of competent jurisdiction in the State of North Carolina,
and, by execution and delivery of this Agreement, each of the Borrower and the
other Credit Parties accepts, for itself and in connection with its properties,
generally and unconditionally, the non-exclusive jurisdiction of the aforesaid
courts and irrevocably agrees to be bound by any final judgment rendered thereby
in connection with this Agreement from which no appeal has been taken or is
available. Each of Borrower and the other Credit Parties irrevocably agrees that
all service of process in any such proceedings in any such court may be effected
by mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to it at its address set forth in
Section 9.2 or at such other address of which the Administrative Agent shall
have been notified pursuant thereto, such service being hereby acknowledged by
the Borrower and the other Credit Parties to be effective and binding service in
every respect. Each of the Borrower, the other Credit Parties, the
Administrative Agent and the Lenders irrevocably waives any objection,
including, without limitation, any objection to the laying of venue or based on
the grounds of forum non conveniens which it may now or hereafter have to the
bringing of any such action or proceeding in any such jurisdiction. Nothing
herein shall affect the right to serve process in any other manner permitted by
law or shall limit the right of the Administrative Agent or any Lender to bring
proceedings against the Borrower or the other Credit Parties in the court of any
other jurisdiction.

         Section 9.15      Confidentiality.

         The Administrative Agent and each of the Lenders agrees that it will
use its commercially reasonable efforts not to disclose without the prior
consent of the Borrower (other than to its employees, affiliates, auditors or
counsel or to another Lender each of whom shall have been made aware of this
confidentiality requirement and shall have agreed to be bound by its provisions
and other than as prohibited by Regulation FD) any information with respect to
the Parent and its Subsidiaries which is furnished pursuant to this Agreement,
any other Credit Document or any documents contemplated by or referred to herein
or therein and which is designated by the Borrower to the Lenders in writing as
confidential or as to which it is otherwise reasonably clear such information is
not public, except that any Lender may disclose any such information (a) as has
become generally available to the public other than by a breach of this Section
9.15, (b) as may be required in any report, statement or testimony submitted to
any municipal, state or federal regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board or the Federal
Deposit Insurance Corporation or the OCC or the NAIC or similar organizations
(whether in the United States or elsewhere) or their successors, (c) as may be
required in response to any summons or subpoena or any law, order, regulation or
ruling applicable to such Lender, (d) to any prospective Participant or assignee
in connection with any contemplated transfer pursuant to Section 9.6 (provided
that such prospective transferee shall have been made aware of this Section 9.15
and shall have agreed to be bound by its provisions as if it were a party to
this Agreement) or rating agencies and/or auditors, (e) to Gold Sheets and other
similar bank trade publications; such information to consist only of deal terms
and other information regarding the credit facilities evidenced by this
Agreement customarily found in such publications.

                                       94

<PAGE>

         Section 9.16      Acknowledgments.

         The Borrower and the other Credit Parties each hereby acknowledges
that:

         (a) it has been advised by counsel in the negotiation, execution and
delivery of each Credit Document;

         (b) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to the Borrower or any other Credit Party arising out
of or in connection with this Agreement and the relationship between
Administrative Agent and Lenders, on one hand, and the Borrower and the other
Credit Parties, on the other hand, in connection herewith is solely that of
debtor and creditor; and

         (c) no joint venture exists among the Lenders or among the Borrower or
the other Credit Parties and the Lenders.

         Section 9.17      Waivers of Jury Trial.

         THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND
THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

         Section 9.18      Compliance with Tax Shelter Regulations.

         (a) The Borrower and each Lender (i) represents and warrants that, as
of the Closing Date, it does not intend to treat the Extensions of Credit
hereunder and the other transactions contemplated hereby as a "reportable
transaction" (within the meaning of Treasury Regulation Section 1.6011-4) and
(ii) covenants to give prior written notice to the Administrative Agent and the
Borrower (as applicable) if it determines to take any action inconsistent with
the intention represented in the foregoing clause (i).

         (b) Subject to the terms of Section 9.18(a)(ii), if a Lender determines
that the Extensions of Credit made by such Lender should be treated as part of a
transaction that is subject to Treasury Regulation Section 1.6011-4 or Section
301.6112-1, such Lender, the Administrative Agent and the Borrower may file such
IRS forms or maintain such lists and other records as they may determine is
required by such Treasury Regulations.

         (c) Notwithstanding anything herein (including Section 9.15) or in any
other Credit Document to the contrary, the Borrower, the Administrative Agent
and each Lender may disclose to any and all persons, without limitation of any
kind, any information with respect to the U.S. federal income tax treatment and
U.S. federal income tax structure of the transactions contemplated hereby and
all material of any kind (including opinions or other tax analyses) that are
provided to the Borrower, the Administrative Agent or such Lender relating to
such tax treatment and tax structure.

                                       95

<PAGE>

                                    ARTICLE X

                                    GUARANTY

         Section 10.1      The Guaranty.

         In order to induce the Lenders to enter into this Agreement and to
extend credit hereunder and in recognition of the direct benefits to be received
by the Guarantors from the Extensions of Credit hereunder, each of the
Guarantors hereby agrees with the Administrative Agent and the Lenders as
follows: such Guarantor hereby unconditionally and irrevocably jointly and
severally guarantees as primary obligor and not merely as surety the full and
prompt payment when due, whether upon maturity, by acceleration or otherwise, of
any and all Credit Party Obligations, as a guaranty of payment and not of
collection. If any or all of the Credit Party Obligations becomes due and
payable hereunder, each Guarantor unconditionally promises to pay such
indebtedness to the Administrative Agent and the Lenders, on order, or demand,
together with any and all reasonable expenses which may be incurred by the
Administrative Agent or the Lenders in collecting any of the Credit Party
Obligations.

         Notwithstanding any provision to the contrary contained herein or in
any other of the Credit Documents, to the extent the obligations of a Guarantor
shall be adjudicated to be invalid or unenforceable for any reason (including,
without limitation, because of any applicable state or federal law relating to
fraudulent conveyances or transfers) then the obligations of each such Guarantor
hereunder shall be limited to the maximum amount that is permissible under
applicable law (whether federal or state and including, without limitation, the
Bankruptcy Code).

         Section 10.2      Bankruptcy.

         Additionally, each of the Guarantors unconditionally and irrevocably
guarantees jointly and severally the payment of any and all indebtedness of the
Borrower to the Lenders whether or not due or payable by the Borrower upon the
occurrence of any of the events specified in Section 7.1(e), and unconditionally
promises to pay such Credit Party Obligations to the Administrative Agent for
the account of the Lenders, or order, on demand, in lawful money of the United
States. Each of the Guarantors further agrees that to the extent that the
Borrower or a Guarantor shall make a payment or a transfer of an interest in any
property to the Administrative Agent or any Lender, which payment or transfer or
any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, or otherwise is avoided, and/or required to be repaid to the
Borrower or a Guarantor, the estate of the Borrower or a Guarantor, a trustee,
receiver or any other party under any bankruptcy law, state or federal law,
common law or equitable cause, then to the extent of such avoidance or
repayment, the obligation or part thereof intended to be satisfied shall be
revived and continued in full force and effect as if said payment had not been
made.

                                       96

<PAGE>

         Section 10.3      Nature of Liability.

         The liability of each Guarantor hereunder is exclusive and independent
of any security for or other guaranty of the indebtedness of the Borrower
whether executed by any such Guarantor, any other guarantor or by any other
party, and no Guarantor's liability hereunder shall be affected or impaired by
(a) any direction as to application of payment by the Borrower or by any other
party, or (b) any other continuing or other guaranty, undertaking or maximum
liability of a guarantor or of any other party as to the indebtedness of the
Borrower, or (c) any payment on or in reduction of any such other guaranty or
undertaking, or (d) any dissolution, termination or increase, decrease or change
in personnel by the Borrower or any other Guarantor, or (e) any payment made to
the Administrative Agent or the Lenders on the indebtedness which the
Administrative Agent or such Lenders repay the Borrower pursuant to court order
in any bankruptcy, reorganization, arrangement, moratorium or other debtor
relief proceeding, and each of the Guarantors waives any right to the deferral
or modification of its obligations hereunder by reason of any such proceeding.

         Section 10.4      Independent Obligation.

         The obligations of each Guarantor hereunder are independent of the
obligations of any other guarantor or the Borrower, and a separate action or
actions may be brought and prosecuted against each Guarantor whether or not
action is brought against any other guarantor or the Borrower and whether or not
any other Guarantor or the Borrower is joined in any such action or actions.

         Section 10.5      Authorization.

         Each of the Guarantors authorizes the Administrative Agent and each
Lender without notice or demand (except as shall be required by applicable
statute and cannot be waived), and without affecting or impairing its liability
hereunder, from time to time to (a) renew, compromise, extend, increase,
accelerate or otherwise change the time for payment of, or otherwise change the
terms of the indebtedness or any part thereof in accordance with this Agreement,
including any increase or decrease of the rate of interest thereon, (b) take and
hold security from any guarantor or any other party for the payment of this
Guaranty or the indebtedness and exchange, enforce waive and release any such
security, (c) apply such security and direct the order or manner of sale thereof
as the Administrative Agent and the Lenders in their discretion may determine
and (d) release or substitute any one or more endorsers, guarantors, the
Borrower or other obligors.

         Section 10.6      Reliance.

         It is not necessary for the Administrative Agent or the Lenders to
inquire into the capacity or powers of the Borrower or the officers, directors,
members, partners or agents acting or purporting to act on their behalf, and any
indebtedness made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder.

                                       97

<PAGE>

         Section 10.7      Waiver.

         (a) Each of the Guarantors waives any right (except as shall be
required by applicable statute and cannot be waived) to require the
Administrative Agent or any Lender to (i) proceed against the Borrower, any
other guarantor or any other party, (ii) proceed against or exhaust any security
held from the Borrower, any other guarantor or any other party, or (iii) pursue
any other remedy in the Administrative Agent's or any Lender's power whatsoever.
Each of the Guarantors waives any defense based on or arising out of any defense
of the Borrower, any other guarantor or any other party other than payment in
full of the indebtedness, including without limitation any defense based on or
arising out of the disability of the Borrower, any other guarantor or any other
party, or the unenforceability of the indebtedness or any part thereof from any
cause, or the cessation from any cause of the liability of the Borrower other
than payment in full of the indebtedness. The Administrative Agent or any of the
Lenders may, at their election, foreclose on any security held by the
Administrative Agent or a Lender by one or more judicial or nonjudicial sales,
whether or not every aspect of any such sale is commercially reasonable (to the
extent such sale is permitted by applicable law), or exercise any other right or
remedy the Administrative Agent and any Lender may have against the Borrower or
any other party, or any security, without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the indebtedness has
been paid. Each of the Guarantors waives any defense arising out of any such
election by the Administrative Agent and each of the Lenders, even though such
election operates to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of the Guarantors against the Borrower or
any other party or any security.

         (b) Each of the Guarantors waives all presentments, demands for
performance, protests and notices, including without limitation notices of
nonperformance, notice of protest, notices of dishonor, notices of acceptance of
this Guaranty, and notices of the existence, creation or incurring of new or
additional indebtedness. Each Guarantor assumes all responsibility for being and
keeping itself informed of the Borrower's financial condition and assets, and of
all other circumstances bearing upon the risk of nonpayment of the indebtedness
and the nature, scope and extent of the risks which such Guarantor assumes and
incurs hereunder, and agrees that neither the Administrative Agent nor any
Lender shall have any duty to advise such Guarantor of information known to it
regarding such circumstances or risks.

         (c) Each of the Guarantors hereby agrees it will not exercise any
rights of subrogation which it may at any time otherwise have as a result of
this Guaranty (whether contractual, under Section 509 of the U.S. Bankruptcy
Code, or otherwise) to the claims of the Lenders against the Borrower or any
other guarantor of the indebtedness of the Borrower owing to the Lenders
(collectively, the "Other Parties") and all contractual, statutory or common law
rights of reimbursement, contribution or indemnity from any Other Party which it
may at any time otherwise have as a result of this Guaranty, until all
Obligations owing to the Administrative Agent and the Lenders by the Borrower
are paid in full and the Commitments are terminated. Each of the Guarantors
hereby further agrees not to exercise any right to enforce any other remedy
which the Administrative Agent and the Lenders now have or may hereafter have
against any Other Party, any endorser or any other guarantor of all or any part
of the indebtedness of the

                                       98

<PAGE>

Borrower and any benefit of, and any right to participate in, any security or
collateral given to or for the benefit of the Lenders to secure payment of the
indebtedness of the Borrower.

         Section 10.8      Limitation on Enforcement.

         The Lenders agree that this Guaranty may be enforced only by the action
of the Administrative Agent acting upon the instructions of the Required Lenders
and that no Lender shall have any right individually to seek to enforce or to
enforce this Guaranty, it being understood and agreed that such rights and
remedies may be exercised by the Administrative Agent for the benefit of the
Lenders under the terms of this Agreement. The Lenders further agree that this
Guaranty may not be enforced against any director, officer, employee or
stockholder of the Guarantors.

         Section 10.9      Confirmation of Payment.

         The Administrative Agent and the Lenders will, upon request after
payment of the indebtedness and obligations which are the subject of this
Guaranty and termination of the Commitments relating thereto, confirm to the
Borrower, the Guarantors or any other Person that the such indebtedness and
obligations have been paid and the Commitments relating thereto terminated,
subject to the provisions of Section 10.2.

         At such time as the Obligations have been paid in full and the
Commitments have been terminated, this Guaranty and all obligations of the
Guarantors, hereunder shall terminate and be of no further force and effect, all
without delivery of any instrument or performance of any act by any Person.

                                       99

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by its proper and duly authorized officers as of the
day and year first above written.

BORROWER:                        RED ROBIN INTERNATIONAL, INC.,
                                 a Nevada corporation

                                 By:      /s/ James P. McCloskey
                                    ---------------------------------
                                 Name: James P. McCloskey
                                 Title: Chief Financial Officer

GUARANTORS:                      RED ROBIN GOURMET BURGERS, INC.,
                                 a Delaware corporation

                                 RED ROBIN WEST, INC.,
                                 a Nevada corporation
                                 RED ROBIN DISTRIBUTING COMPANY, INC.,
                                 a Colorado corporation
                                 WESTERN FRANCHISE DEVELOPMENT, INC.,
                                 a California corporation

                                 By:      /s/ James P. McCloskey
                                    ---------------------------------
                                 Name: James P. McCloskey
                                 Title:   Chief Financial Officer of each
                                          of the foregoing Guarantors

                                 RED ROBIN OF ANNE ARUNDEL COUNTY, INC.,
                                 a Maryland corporation
                                 RED ROBIN OF BALTIMORE COUNTY, INC.,
                                 a Maryland corporation
                                 RED ROBIN OF MONTGOMERY COUNTY, INC.,
                                 a Maryland corporation
                                 RED ROBIN OF HOWARD COUNTY, INC.,
                                 a Maryland corporation
                                 RED ROBIN OF CHARLES COUNTY, INC.,
                                 a Maryland corporation

                                 By:      /s/ James P. McCloskey
                                    ---------------------------------
                                 Name: James P. McCloskey
                                 Title:   Secretary & Treasurer of each
                                          of the foregoing Guarantors

                           [signature pages continue]

<PAGE>

ADMINISTRATIVE AGENT
AND LENDERS:                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                    as Administrative Agent and as a Lender

                                    By: /s/ Gregory H. Jones
                                        -------------------------------------
                                    Name: Gregory H. Jones
                                    Title: Vice President

                           [signature pages continue]

<PAGE>

                                    WELLS FARGO BANK, N.A.,
                                    as Syndication Agent and as a Lender

                                    By:      /s/ Karen I. Hardy
                                       --------------------------------------
                                    Name:  Karen I. Hardy
                                    Title: Senior Vice President

                           [signature pages continue]

<PAGE>

                                    [NEW LENDERS]

                                    U.S. BANK NATIONAL ASSOCIATION, as
                                    Documentation Agent and as a Lender

                                    By:      /s/ Robert R Weisel
                                       --------------------------------------
                                    Name: Robert R. Weisel
                                    Title: Senior Vice President

                           [signature pages continue]

<PAGE>

                                    BANK OF AMERICA, N.A.,
                                    as a Lender

                                    By:      /s/ Chitt Swamidasan
                                       --------------------------------------
                                    Name: Chitt Swamidasan
                                    Title: Principal

                           [signature pages continue]

<PAGE>

                                    SUNTRUST BANK,
                                    as a Lender

                                    By:      /s/ Emily Y. Weinstein
                                       --------------------------------------
                                    Name: Emily Y. Weinstein
                                    Title: Portfolio Manager

                           [signature pages continue]

<PAGE>

                                    KEY BANK, N.A.,
                                    as a Lender

                                    By:      /s/ Douglas L. Pogge
                                       ---------------------------------
                                    Name: Douglas L. Pogge
                                    Title: Vice President

<PAGE>

                            List of Omitted Schedules
                            -------------------------

The following Schedules to the Credit Agreement have been omitted and shall be
furnished to the Commission upon request:

Schedules
---------

Schedule 1.1-1                      Account Designation Letter
Schedule 1.1-2                      Permitted Liens
Schedule 1.1-3                      Inactive Corporations
Schedule 2.1(a)                     Schedule of Lenders and Commitments
Schedule 2.1(b)(i)                  Form of Notice of Borrowing
Schedule 2.1(e)                     Form of Revolving Note
Schedule 2.3(d)                     Form of Swingline Note
Schedule 2.6(b)(ii)                 Excluded Properties
Schedule 2.9                        Form of Notice of Conversion/Extension
Schedule 2.17                       Section 2.17 Certificate
Schedule 3.6                        Litigation
Schedule 3.9                        ERISA
Schedule 3.12                       Subsidiaries
Schedule 3.16                       Intellectual Property
Schedule 3.19(a)                    Location of Real Property
Schedule 3.19(b)                    Location of Collateral
Schedule 3.19(c)                    Chief Executive Offices
Schedule 3.21                       Broker's Fees
Schedule 3.22                       Labor Matters
Schedule 3.25                       Significant Events
Schedule 3.26                       Material Contracts
Schedule 3.27                       Capitalization
Schedule 4.1-1                      Form of Secretary's Certificate
Schedule 4.1-2                      Form of Solvency Certificate
Schedule 4.1-3                      Pro Forma Covenant Compliance Worksheet
Schedule 5.1(c)                     Form of Officer's Certificate
Schedule 5.5(b)                     Insurance
Schedule 5.10                       Form of Joinder Agreement
Schedule 5.16                       Mortgaged Properties
Schedule 6.1(b)                     Indebtedness
Schedule 6.6                        Investments
Schedule 9.2                        Schedule of Lenders' Lending Offices
Schedule 9.6(c)                     Form of Commitment Transfer Supplement<Page>

                                                                    EXHIBIT 4(a)

================================================================================

                      WHITE MOUNTAINS INSURANCE GROUP, LTD.
                        and FUND AMERICAN COMPANIES, INC.

                                       and

                         BANK ONE, NATIONAL ASSOCIATION
                                     Trustee

                                SENIOR INDENTURE

                            Dated as of May 19, 2003

                 Providing for Issuance of Securities in Series

================================================================================

<Page>

                              CROSS-REFERENCE TABLE

<Table>
<Caption>
                TIA                                                               Indenture
              Section                                                              Section
              -------                                                              -------
             <S>                                                                    <C>
                310(a)(1) ......................................................... 609
                   (a)(2) ......................................................... 609
                   (a)(3) ......................................................... N.A.
                   (a)(4) ......................................................... N.A.
                      (b) ......................................................... 608; 610
                      (c) ......................................................... N.A.
                   311(a) ......................................................... 613
                      (b) ......................................................... 613
                      (c) ......................................................... N.A.
                   312(a) ......................................................... 701
                      (b) ......................................................... 702
                      (c) ......................................................... 702
                   313(a) ......................................................... 703
                   (b)(1) ......................................................... N.A.
                   (b)(2) ......................................................... 703
                      (c) ......................................................... 703
                      (d) ......................................................... 703
                   314(a) ......................................................... 704
                      (b) ......................................................... N.A.
                   (c)(1) ......................................................... 102
                   (c)(2) ......................................................... 102
                   (c)(3) ......................................................... N.A.
                      (d) ......................................................... N.A.
                      (e) ......................................................... 102
                   315(a) ......................................................... 601
                      (b) ......................................................... 602
                      (c) ......................................................... 602
                      (d) ......................................................... 602
                      (e) ......................................................... 602
             316(a)(last sentence)................................................. 502
                (a)(1)(A) ......................................................... 512
                (a)(1)(B) ......................................................... 502
                   (a)(2) ......................................................... N.A.
                      (b) ......................................................... 508
                317(a)(1) ......................................................... 503
                   (a)(2) ......................................................... 504
                      (b) ......................................................... 1003
                   318(a) ......................................................... 107
                         N.A. means Not Applicable.
</Table>

----------
Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
part of the Indenture.

<Page>

<Table>
<S>                                                                                                    <C>
                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101.  Definitions ..............................................................................2
Section 102.  Compliance Certificates and Opinions ....................................................12
Section 103.  Form of Documents Delivered to Trustee ..................................................13
Section 104.  Acts of Securityholders .................................................................14
Section 105.  Notices, etc., to Trustee, Guarantor and Company ........................................16
Section 106.  Notices to Securityholders; Waiver ......................................................16
Section 107.  Conflict with Trust Indenture Act .......................................................17
Section 108.  Effect of Headings and Table of Contents ................................................17
Section 109.  Successors and Assigns ..................................................................17
Section 110.  Separability Clause .....................................................................17
Section 111.  Benefits of Indenture ...................................................................17
Section 112.  Governing Law ...........................................................................17
Section 113.  Counterparts ............................................................................17
Section 114.  Judgment Currency .......................................................................18

                                   ARTICLE TWO

                                 SECURITY FORMS

Section 201.  Forms Generally .........................................................................18
Section 202.  Forms of Securities .....................................................................19
Section 203.  Form of Trustee's Certificate of Authentication .........................................20
Section 204.  Securities Issuable in the Form of a Global Security ....................................20
Section 205.  Form of Notation of Guarantee ...........................................................23

                                  ARTICLE THREE

                                 THE SECURITIES

Section 301.  General Title; General Limitations; Issuable in Series; Terms of Particular Series ......23
Section 302.  Denominations ...........................................................................27
Section 303.  Execution, Authentication and Delivery and Dating .......................................28
Section 304.  Temporary Securities ....................................................................30
Section 305.  Registration, Transfer and Exchange .....................................................30
</Table>

<Page>

                                                                  Contents, p. 2

<Table>
<S>                                                                                                    <C>
Section 306.  Mutilated, Destroyed, Lost and Stolen Securities ........................................32
Section 307.  Payment of Interest; Interest Rights Preserved ..........................................33
Section 308.  Persons Deemed Owners ...................................................................35
Section 309.  Cancellation ............................................................................35
Section 310.  Computation of Interest .................................................................35
Section 311.  Medium-term Securities ..................................................................36
Section 312.  CUSIP Numbers ...........................................................................36
Section 313.  Global Securities .......................................................................37

                                  ARTICLE FOUR

              SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE;
                                UNCLAIMED MONEYS

Section 401.  Applicability of Article ................................................................39
Section 402.  Satisfaction and Discharge of Indenture; Defeasance .....................................39
Section 403.  Conditions of Defeasance ................................................................41
Section 404.  Application of Trust Money ..............................................................42
Section 405.  Repayment to Company or Guarantor .......................................................43
Section 406.  Indemnity for U.S. Government Obligations ...............................................43
Section 407.  Reinstatement ...........................................................................43

                                  ARTICLE FIVE

                                    REMEDIES

Section 501.  Events of Default .......................................................................43
Section 502.  Acceleration of Maturity; Rescission and Annulment ......................................47
Section 503.  Collection of Indebtedness and Suits for Enforcement by Trustee .........................48
Section 504.  Trustee May File Proofs of Claim ........................................................50
Section 505.  Trustee May Enforce Claims Without Possession of Securities .............................51
Section 506.  Application of Money Collected ..........................................................51
Section 507.  Limitation on Suits .....................................................................52
Section 508.  Unconditional Right of Securityholders to Receive Principal, Premium and Interest .......53
Section 509.  Restoration of Rights and Remedies ......................................................53
Section 510.  Rights and Remedies Cumulative ..........................................................53
Section 511.  Delay or Omission Not Waiver ............................................................53
Section 512.  Control by Securityholders ..............................................................54
Section 513.  Waiver of Past Defaults .................................................................54
</Table>

<Page>

                                                                  Contents, p. 3

<Table>
<S>                                                                                                    <C>
Section 514.  Undertaking for Costs ...................................................................55
Section 515.  Waiver of Stay or Extension Laws ........................................................55

                                   ARTICLE SIX

                                   THE TRUSTEE

Section 601.  Certain Duties and Responsibilities .....................................................55
Section 602.  Notice of Defaults ......................................................................57
Section 603.  Certain Rights of Trustee ...............................................................58
Section 604.  Not Responsible for Recitals or Issuance of Securities ..................................59
Section 605.  May Hold Securities .....................................................................59
Section 606.  Money Held in Trust .....................................................................59
Section 607.  Compensation and Reimbursement ..........................................................59
Section 608.  Disqualification; Conflicting Interests .................................................60
Section 609.  Corporate Trustee Required; Eligibility .................................................61
Section 610.  Resignation and Removal; Appointment of Successor .......................................61
Section 611.  Acceptance of Appointment by Successor ..................................................63
Section 612.  Merger, Conversion, Consolidation or Succession to Business .............................64
Section 613.  Preferential Collection of Claims Against Company .......................................65
Section 614.  Appointment of Authenticating Agent .....................................................70

                                  ARTICLE SEVEN

            SECURITYHOLDERS' LISTS AND REPORTS BY TRUSTEE, GUARANTOR
                                   AND COMPANY

Section 701.  Company To Furnish Trustee Names and Addresses of Securityholders .......................72
Section 702.  Preservation of Information; Communications to Securityholders ..........................73
Section 703.  Reports by Trustee ......................................................................74
Section 704.  Reports by Company and Guarantor ........................................................76

                                  ARTICLE EIGHT

           CONSOLIDATION, AMALGAMATION, MERGER, CONVEYANCE OR TRANSFER

Section 801.  Company May Consolidate, etc., only on Certain Terms ....................................77
Section 802.  Successor Person Substituted for Company ................................................78
</Table>

<Page>

                                                                  Contents, p. 4

<Table>
<S>                                                                                                    <C>
Section 803.  Successor Person Substituted for Guarantor ..............................................78

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

Section 901.  Supplemental Indentures Without Consent of Securityholders ..............................79
Section 902.  Supplemental Indentures with Consent of Securityholders .................................80
Section 903.  Execution of Supplemental Indentures ....................................................82
Section 904.  Effect of Supplemental Indentures .......................................................82
Section 905.  Conformity with Trust Indenture Act .....................................................82
Section 906.  Reference in Securities to Supplemental Indentures ......................................82

                                   ARTICLE TEN

                                    COVENANTS

Section 1001.  Payment of Principal, Premium and Interest .............................................83
Section 1002.  Maintenance of Office or Agency ........................................................83
Section 1003.  Money for Security Payments to be Held in Trust ........................................83
Section 1004.  Statement as to Compliance .............................................................86
Section 1005.  Corporate Existence ....................................................................86
Section 1006.  Limitation on Liens ....................................................................86
Section 1007.  Limitation on Sale and Leaseback Transactions ..........................................87
Section 1008.  Waiver of Certain Covenants ............................................................88

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

Section 1101.  Applicability of Article ...............................................................88
Section 1102.  Election to Redeem; Notice to Trustee ..................................................89
Section 1103.  Selection by Trustee of Securities to Be Redeemed ......................................89
Section 1104.  Notice of Redemption ...................................................................90
Section 1105.  Deposit of Redemption Price ............................................................91
Section 1106.  Securities Payable on Redemption Date ..................................................91
Section 1107.  Securities Redeemed in Part ............................................................91
Section 1108.  Provisions with Respect to any Sinking Funds ...........................................92
</Table>

<Page>

                                                                  Contents, p. 5

<Table>
<S>                                                                                                    <C>
                                 ARTICLE TWELVE

                             GUARANTEE OF SECURITIES

Section 1201.  Guarantee ..............................................................................93
Section 1202.  Execution of Notations of Guarantee ....................................................95
</Table>

<Page>

                    SENIOR INDENTURE (this "Indenture") between WHITE MOUNTAINS
               INSURANCE GROUP, LTD. a company existing under the laws of
               Bermuda (the "Guarantor") having its principal office at 80 South
               Main Street, Hanover, New Hampshire 03755-2053, FUND AMERICAN
               COMPANIES, INC., a Delaware corporation (the "Company") having
               its principal office at One Beacon Street, Boston, Massachusetts
               02108-3100, and BANK ONE, NATIONAL ASSOCIATION, trustee
               (hereinafter called the "Trustee"), is made and entered into as
               of this 19th day of May, 2003.

          Recitals of the Company and the Guarantor

          The Company and the Guarantor each has duly authorized the execution
and delivery of this Indenture to provide for in the case of the Company, the
issuance of, and in the case of the Guarantor, the guarantee of, the Company
debentures, notes, bonds or other evidences of indebtedness, to be issued in one
or more fully registered series.

          All things necessary to make this Indenture a valid agreement of each
of the Company and the Guarantor, in accordance with its terms, have been done.

                            Agreements of the Parties

          To set forth or to provide for the establishment of the terms and
conditions upon which the Securities are and are to be authenticated, issued and
delivered, and in consideration of the premises and the purchase of Securities
by the Holders thereof, it is mutually covenanted and agreed as follows, for the
equal and proportionate benefit of all Holders of the Securities or of a series
thereof, as the case may be:

<Page>

                                                                               2

                                   ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

          Section 101.  DEFINITIONS. For all purposes of this Indenture and of
any indenture supplemental hereto, except as otherwise expressly provided or
unless the context otherwise requires:

          (1)  the terms defined in this Article have the meanings assigned to
     them in this Article, and include the plural as well as the singular;

          (2)  all other terms used herein which are defined in the Trust
     Indenture Act or by Commission rule under the Trust Indenture Act, either
     directly or by reference therein, have the meanings assigned to them
     therein;

          (3)  all accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted accounting
     principles and, except as otherwise herein expressly provided, the term
     "generally accepted accounting principles" with respect to any computation
     required or permitted hereunder shall mean such accounting principles as
     are generally accepted in the United States of America at the date of such
     computation;

          (4)  all references in this instrument to designated "Articles",
     "Sections" and other subdivisions are to the designated Articles, Sections
     and other subdivisions of this instrument as originally executed. The words
     "herein", "hereof" and "hereunder" and other words of similar import refer
     to this Indenture as a whole and not to any particular Article, Section or
     other subdivision; and

          (5)  "including" and words of similar import shall be deemed to be
     followed by "without limitation".

          Certain terms, used principally in Article Six, are defined in that
Article.

          "Act", when used with respect to any Security-holder, has the meaning
specified in Section 104.

<Page>

                                                                               3

          "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified 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.

          "Authenticating Agent" means any Person authorized by the Trustee to
authenticate Securities under Section 614.

          "Bank Debt" means all Obligations pursuant to the Amended and Restated
Credit Agreement dated as of October 30, 2002, among Fund American Enterprises
Holdings, Inc., the Company, as Borrower, the several Lenders from time to time
parties thereto, Lehman Brothers Inc., as Arranger, Fleet National Bank, as
Syndication Agent, Bank of America, N.A. and Bank One, NA, as Co-Documentation
Agents, and Lehman Commercial Paper Inc., as Administrative Agent, as such
Amended and Restated Credit Agreement may be extended, renewed, restated,
supplemented or otherwise modified (in whole or in part, and without limitation
as to amount, terms, conditions, covenants and other provisions) from time to
time, and any agreement or indenture (and related document or instrument)
governing Debt incurred to refinance, in whole or in part, the borrowings and
commitments then outstanding under such Amended and Restated Credit Agreement.

          "Board of Directors" means either the board of directors of the
Company or any duly authorized committee of that board.

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

          "Business Day" means each day which is neither a Saturday, Sunday or
other day on which banking institutions in the pertinent Place or Places of
Payment are authorized or required by law or executive order to be closed.

<Page>

                                                                               4

          "Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under the Securities Exchange Act of 1934, or,
if at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties on such date.

          "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor replaces it and, thereafter,
"Company" shall mean the successor and, for purposes of any provision contained
herein and required by the TIA, each other obligor on the Securities.

          "Company Request", "Company Order" and "Company Consent" mean,
respectively, a written request, order or consent signed in the name of the
Company by its Chairman of the Board, President or a Vice President, and by its
Treasurer, an Assistant Treasurer, Controller, an Assistant Controller,
Secretary or an Assistant Secretary, and delivered to the Trustee.

          "Corporate Trust Office" means the principal office of the Trustee in
New York at which at any particular time its corporate trust business shall be
principally administered, which office at the date hereof is located at 153 West
51st Street, New York, New York 10019, except that with respect to the
presentation of Securities for payment or for registration of transfer and
exchange, such term shall mean the office or the agency of the Trustee in said
city at which at any particular time its corporate agency business shall be
conducted, which office at the date hereof is located at 55 Water Street, First
Floor, Jeanette Park Entrance, New York, New York 10041.

          "Debt" means indebtedness for money borrowed.

          "Defaulted Interest" has the meaning specified in Section 307.

          "Depositary" means, unless otherwise specified by the Company pursuant
to either Section 204 or 301, with respect to Securities of any series issuable
or issued as a Global Security, The Depository Trust Company, New York, New
York, or any successor thereto registered as a clearing

<Page>

                                                                               5

agency under the Securities Exchange Act of 1934, as amended, or other
applicable statute or regulation.

          "Event of Default" has the meaning specified in Article Five.

          "Global Security" means with respect to any series of Securities
issued hereunder, a Security which is executed by the Company and authenticated
and delivered by the Trustee to the Depositary or pursuant to the Depositary's
instruction, all in accordance with this Indenture and an indenture supplemental
hereto, if any, or Board Resolution and pursuant to a Company Request, which
shall be registered in the name of the Depositary or its nominee and which shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, all of the Outstanding Securities of such series or any
portion thereof, in either case having the same terms, including, without
limitation, the same original issue date, date or dates on which principal is
due, and interest rate or method of determining interest.

          "Guarantee" means the irrevocable and unconditional guarantee by the
Guarantor of any Security of any series of the Company authenticated and
delivered pursuant to Article Twelve.

          "Guarantor" means the Person named as the "Guarantor" in the first
paragraph of this instrument until a successor replaces it and, thereafter,
"Guarantor" shall mean the successor.

          "Guarantor Board of Directors" means either the board of directors of
the Guarantor or any duly authorized committee of that board.

          "Guarantor's Board Resolution" means a copy of a resolution certified
by the Secretary or an Assistant Secretary of the Guarantor to have been duly
adopted by the Guarantor Board of Directors.

          "Guarantor Request", "Guarantor Order", "Guarantor Consent" means,
respectively, a written request, order or consent signed in the name of the
Guarantor by its Chairman of the Board, President or a Vice President, and by
its Treasurer, an Assistant Treasurer, Controller, an Assistant Controller,
Secretary or an Assistant Secretary, and delivered to the Trustee.

<Page>

                                                                               6

          "Holder", when used with respect to any Security, means a
Securityholder.

          "Indenture" or "this Indenture" means this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of particular series of Securities
established as contemplated by Section 301.

          "Interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

          "Interest Payment Date", when used with respect to any series of
Securities, means the Stated Maturity of any installment of interest on those
Securities.

          "Lien" means any mortgage, pledge, security interest, encumbrance,
charge or security interest of any kind.

          "Maturity", when used with respect to any Securities, means the date
on which the principal of any such Security becomes due and payable as therein
or herein provided, whether on a Repayment Date, at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.

          "Obligations" means, with respect to any Bank Debt, all obligations
for principal, premium, interest, penalties, fees, indemnifications,
reimbursements and other amounts payable pursuant to the documentation governing
or relating to such Bank Debt, including security agreements, pledge agreements,
mortgages, guarantees and any similar agreements or instruments.

          "Officers' Certificate" means, with respect to the Company or the
Guarantor, a certificate signed by the Chairman of the Board, the President or a
Vice President, and by the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary of the Company or
the Guarantor, as the case may be, and delivered to the Trustee. Wherever this
Indenture requires that an Officers' Certificate be signed also by an engineer
or an accountant or other expert, such engineer, accountant or other expert
(except as otherwise

<Page>

                                                                               7

expressly provided in this Indenture) may be in the employ of the Company or the
Guarantor, as the case may be, and shall be acceptable to the Trustee.

          "Opinion of Counsel" means a written opinion of counsel, who may
(except as otherwise expressly provided in this Indenture) be an employee of or
of counsel to the Company or the Guarantor. Such counsel shall be acceptable to
the Trustee, whose acceptance shall not be unreasonably withheld.

          "Original Issue Discount Security" means (i) any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof, and (ii) any
other Security deemed an Original Issue Discount Security for United States
Federal income tax purposes.

          "Outstanding", when used with respect to Securities or Securities of
any series, means, as of the date of determination, all such Securities
theretofore authenticated and delivered under this Indenture, except:

               (i) such Securities theretofore canceled by the Trustee or
       delivered to the Trustee for cancellation;

              (ii) such Securities for whose payment or redemption money in the
       necessary amount has been theretofore deposited with the Trustee or any
       Paying Agent in trust for the Holders of such Securities; provided that,
       if such Securities are to be redeemed, notice of such redemption has been
       duly given pursuant to this Indenture or provision therefor satisfactory
       to the Trustee has been made; and

             (iii) such Securities in exchange for or in lieu of which other
       Securities have been authenticated and delivered pursuant to this
       Indenture, or which shall have been paid pursuant to the terms of Section
       306 (except with respect to any such Security as to which proof
       satisfactory to the Trustee is presented that such Security is held by a
       person in whose hands such Security is a legal, valid and binding
       obligation of the Company).

<Page>

                                                                               8

In determining whether the Holders of the requisite principal amount of such
Securities Outstanding have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, (i) the principal amount of any Original
Issue Discount Security that shall be deemed to be Outstanding shall be the
amount of the principal thereof that would be due and payable as of the date of
the taking of such action upon a declaration of acceleration of the Maturity
thereof and (ii) Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding. In determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer assigned to the corporate trust department of the Trustee knows to be
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or such other obligor shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee's right
to act as owner with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Affiliate of the Company
or such other obligor.

          "Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Securities on behalf of
the Company.

          "Permitted Liens" means (i) any Lien upon Property to secure any part
of the cost of development, construction, alteration, repair or improvement of
such Property, or Debt incurred to finance such cost; (ii) any extension,
renewal or replacement, in whole or in part, of any Lien referred to in the
foregoing clause (i); (iii) any Lien relating to a sale and leaseback
transaction permitted by Section 1007 (other than by operation of this clause
(iii) of this definition); (iv) any Lien in favor of the Company, the Guarantor
or any Subsidiary granted by the Company, the Guarantor or any Subsidiary in
order to secure any intercompany obligations; (v) mechanic's, materialmen's,
carriers' or other like Liens arising in the ordinary course of business
(including construction of facilities) in respect of obligations which are not
due or which are being contested in good faith; (vi) any Lien

<Page>

                                                                               9

arising in connection with any legal proceeding which is being contested; (vii)
Liens for taxes not yet subject to penalties for non-payment or which are being
contested in good faith by appropriate proceedings; (viii) minor survey
exceptions, minor encumbrances, easements or reservations of, or rights of
others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as
to the use of real property or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties which were not incurred in
connection with Debt and which do not in the aggregate materially adversely
affect the value of said properties or materially impair their use in the
operation of the business of such Person; (ix) pledges or deposits under
workers' compensation laws, unemployment insurance laws or similar social
security legislation; (x) any deposit to secure performance of letters of
credit, bids, leases, statutory obligations, surety and appeal bonds,
performance bonds or other obligations of a like nature in the ordinary course
of business; (xi) any interest or title of a lessor under any lease entered into
in the ordinary course of business; (xii) Liens on assets of any Subsidiary
which is required to be licensed as an insurer or reinsurer (or any Subsidiary
of such Subsidiary) securing (a) Debt of any such Subsidiary to any other such
Subsidiary, (b) short-term Debt incurred to provide short-term liquidity to
facilitate claims payments in the event of catastrophe, (c) Debt incurred in the
ordinary course of its business or in securing insurance-related obligations
(that do not constitute Debt) and letters of credit issued for the account of
any such Subsidiary in the ordinary course of its business or in securing
insurance-related obligations (that do not constitute Debt) or (d)
insurance-related obligations (that do not constitute Debt); and (xiii)
additional Liens to secure Bank Debt so long as the amount of such Bank Debt
outstanding from time to time does not exceed $175 million.

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

          "Place of Payment" means with respect to any series of Securities
issued hereunder the city or political

<Page>

                                                                              10

subdivision so designated with respect to the series of Securities in question
in accordance with the provisions of Section 301.

          "Predecessor Securities" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.

          "Property" means any property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible.

          "Redemption Date", when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.

          "Redemption Price", when used with respect to any Security to be
redeemed, means the price specified in the Security at which it is to be
redeemed pursuant to this Indenture.

          "Regular Record Date" for the interest payable on any Security on any
Interest Payment Date means the date specified in such Security as the Regular
Record Date.

          "Repayment Date", when used with respect to any Security to be repaid,
means the date fixed for such repayment pursuant to such Security.

          "Repayment Price", when used with respect to any Security to be
repaid, means the price at which it is to be repaid pursuant to such Security.

          "Responsible Officer", when used with respect to the Trustee, means
any officer of the Trustee assigned to administer corporate trust matters and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his or her knowledge of and
familiarity with the particular subject.

          "Security" or "Securities" means any note or notes, bond or bonds,
debenture or debentures, or any other

<Page>

                                                                              11

evidences of indebtedness, as the case may be, of any series authenticated and
delivered from time to time under this Indenture.

          "Security Register" shall have the meaning specified in Section 305.

          "Security Registrar" means the Person who keeps the Security Register
specified in Section 305.

          "Securityholder" means a Person in whose name a Security is registered
in the Security Register.

          "Special Record Date" for the payment of any Defaulted Interest (as
defined in Section 307) means a date fixed by the Trustee pursuant to Section
307.

          "Stated Maturity" when used with respect to any Security or any
installment of principal thereof or interest thereon means the date specified in
such Security as the fixed date on which the principal of such Security or such
installment of principal or interest is due and payable.

          "Subsidiary" of any specified Person means any corporation, limited
liability company, limited or general partnership, business trust or other
business entity at least a majority of whose outstanding Voting Stock shall at
the time be owned, directly or indirectly, by the specified Person or by one or
more of its Subsidiaries, or both.

          "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939,
as amended by the Trust Indenture Reform Act of 1990, as in force at the date as
of which this instrument was executed except as provided in Section 905.

          "Trustee" means the Person named as the Trustee in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Trustee" shall mean
and include each Person who is then a Trustee hereunder.

          If at any time there is more than one such Person, "Trustee" as used
with respect to the Securities of any series shall mean the Trustee with respect
to Securities of that series.

<Page>

                                                                              12

          "U.S. Government Obligations" means securities that are (x) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (y) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case, are
not callable or redeemable at the option of the issuer thereof.

          "Vice President" when used with respect to the Guarantor, the Company
or the Trustee means any vice president, whether or not designated by a number
or a word or words added before or after the title "vice president", including,
without limitation, an assistant vice president.

          "Voting Stock", as applied to the stock of any Person, means stock of
any class or classes (however designated) having by the terms thereof ordinary
voting power to elect a majority of the members of the board of directors (or
other governing body) of such Person other than stock having such power only by
reason of the happening of a contingency.

          Section 102.  COMPLIANCE CERTIFICATES AND OPINIONS. Upon any
application or request by the Company or the Guarantor to the Trustee to take
any action under any provision of this Indenture, the Company or the Guarantor,
as applicable, shall furnish to the Trustee an Officers' Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such Counsel all such conditions precedent, if any, have
been complied with, except that in the case of any such application or request
as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

          Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (except for the written
statement required by Section 1004) shall include

<Page>

                                                                              13

          (1)  a statement that each individual signing such certificate or
     opinion has read such covenant or condition and the definitions herein
     relating thereto;

          (2)  a brief statement as to the nature and scope of the examination
     or investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (3)  a statement that, in the opinion of each such individual, he has
     made such examination or investigation as is necessary to enable him to
     express an informed opinion as to whether or not such covenant or condition
     has been complied with; and

          (4)  a statement as to whether, in the opinion of each such
     individual, such condition or covenant has been complied with.

          Section 103.  FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to the other matters, and any such Person may certify or give an opinion as
to such matters in one or several documents.

          Any certificate or opinion of an officer of the Company or the
Guarantor may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. Any such certificate or Opinion
of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company or the Guarantor, as the case may be, stating that the information with
respect to such factual matters is in the possession of the Company or the
Guarantor, as the case may be, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

<Page>

                                                                              14

          Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

          Section 104.  ACTS OF SECURITYHOLDERS. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Securityholders or Securityholders of any
series may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Securityholders in person or by an
agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee, and, where it is hereby expressly required, to the
Company or the Guarantor or both of them. If any Securities are denominated in
coin or currency other than that of the United States, then for the purposes of
determining whether the Holders of the requisite principal amount of Securities
have taken any action as herein described, the principal amount of such
Securities shall be deemed to be that amount of United States dollars that could
be obtained for such principal amount on the basis of the spot rate of exchange
into United States dollars for the currency in which such Securities are
denominated (as evidenced to the Trustee by an Officers' Certificate) as of the
date the taking of such action by the Holders of such requisite principal amount
is evidenced to the Trustee as provided in the immediately preceding sentence.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Securityholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 601) conclusive in favor of
the Trustee, the Guarantor and the Company, if made in the manner provided in
this Section.

          (b)  The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness to such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where

<Page>

                                                                              15

such execution is by an officer of a corporation or a member of a partnership,
on behalf of such corporation or partnership, such certificate or affidavit
shall also constitute sufficient proof of his authority. The fact and date of
the execution of any such instrument or writing, or the authority of the person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

          (c)  The ownership of Securities shall be proved by the Security
Register.

          (d)  If the Company or the Guarantor shall solicit from the Holders
any request, demand, authorization, direction, notice, consent, waiver or other
action, the Company or the Guarantor, as the case may be, may, at its option, by
Board Resolution or Guarantor's Board Resolution, as applicable, fix in advance
a record date for the determination of Holders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other action, but
the Company or the Guarantor, as the case may be, shall have no obligation to do
so. If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other action may be given before or after
the record date, but only the Holders of record at the close of business on the
record date shall be deemed to be Holders for the purposes of determining
whether Holders of the requisite proportion of Securities Outstanding have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the
Securities Outstanding shall be computed as of the record date; provided that no
such authorization, agreement or consent by the Holders on the record date shall
be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than six months after the record date.

          (e)  Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Security shall bind the Holder of
every Security issued upon the transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done or suffered to be done by the Trustee
or the Company or the Guarantor in reliance thereon whether or not notation of
such action is made upon such Security.

<Page>

                                                                              16

          Section 105.  NOTICES, ETC., TO TRUSTEE, GUARANTOR AND COMPANY. Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Securityholders or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with,

          (1)  the Trustee by any Securityholder or by the Company or the
     Guarantor shall be sufficient for every purpose hereunder if made, given,
     furnished or filed in writing to or with the Trustee at its Corporate Trust
     Office, or

          (2)  the Company or the Guarantor by the Trustee or by any
     Securityholder shall be sufficient for every purpose hereunder (except as
     provided in Section 501(4) or (5) or, in the case of a request for
     repayment, as specified in the Security carrying the right to repayment) if
     in writing and mailed, first-class postage prepaid, to the Company or the
     Guarantor, as the case may be, addressed to it at the address of its
     principal office specified in the first paragraph of this instrument or at
     any other address previously furnished in writing to the Trustee by the
     Company or the Guarantor, as the case may be.

          Section 106.  NOTICES TO SECURITYHOLDERS; WAIVER. Where this Indenture
or any Security provides for notice to Securityholders of any event, such notice
shall be sufficiently given (unless otherwise herein or in such Security
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Securityholder affected by such event, at his address as it appears in the
Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. In any case where
notice to Securityholders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Securityholder
shall affect the sufficiency of such notice with respect to other
Securityholders. Where this Indenture or any Security provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Securityholders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

<Page>

                                                                              17

          In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or otherwise, it shall be impractical to mail
notice of any event to any Securityholder when such notice is required to be
given pursuant to any provision of this Indenture, then any method of
notification as shall be satisfactory to the Trustee, the Guarantor and the
Company shall be deemed to be a sufficient giving of such notice.

          Section 107.  CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with the duties imposed by any of Sections
310 to 317, inclusive, of the Trust Indenture Act through the operation of
Section 318(c) thereof, such imposed duties shall control.

          Section 108.  EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

          Section 109.  SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture by each of the Company and the Guarantor shall bind its
successors and assigns, whether so expressed or not.

          Section 110.  SEPARABILITY CLAUSE. In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

          Section 111.  BENEFITS OF INDENTURE. Nothing in this Indenture or in
any Securities, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, any Authenticating Agent or
Paying Agent, the Security Registrar and the Holders of Securities (or such of
them as may be affected thereby), any benefit or any legal or equitable right,
remedy or claim under this Indenture.

          Section 112.  GOVERNING LAW. This Indenture shall be construed in
accordance with and governed by the laws of the State of New York.

          Section 113.  COUNTERPARTS. This instrument may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such

<Page>

                                                                              18

counterparts shall together constitute but one and the same instrument.

          Section 114.  JUDGMENT CURRENCY. The Company and the Guarantor each
agrees, to the fullest extent that it may effectively do so under applicable
law, that (a) if for the purpose of obtaining judgment in any court it is
necessary to convert the sum due in respect of the principal of, or premium or
interest, if any, on the Securities of any series (the "Required Currency") into
a currency in which a judgment will be rendered (the "Judgment Currency"), the
rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in New York City the Required
Currency with the Judgment Currency on the Banking Day (as defined below)
immediately preceding the date on which final unappealable judgment is given and
(b) its obligations under this Indenture to make payments in the Required
Currency (i) shall not be discharged or satisfied by any tender, or any recovery
pursuant to any judgment (whether or not entered in accordance with subsection
(a)), in any currency other than the Required Currency, except to the extent
that such tender or recovery shall result in the actual receipt, by the payee,
of the full amount of the Required Currency expressed to be payable in respect
of such payments, (ii) shall be enforceable as an alternative or additional
cause of action for the purpose of recovering in the Required Currency the
amount, if any, by which such actual receipt shall fall short of the full amount
of the Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.
For purposes of the foregoing, "Banking Day" means any day except a Saturday,
Sunday or a legal holiday in New York City or a day on which banking
institutions in New York City are authorized or required by law or executive
order to close.

                                   ARTICLE TWO

                                 SECURITY FORMS

          Section 201.  FORMS GENERALLY. The Securities shall have such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon,
as may be required to comply with applicable laws or regulations or with the

<Page>

                                                                              19

rules of any securities exchange, or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution of the Securities. Any portion of the text of any Security may be set
forth on the reverse thereof, with an appropriate reference thereto on the face
of the Security.

          The definitive Securities shall be printed, lithographed or engraved
or produced by any combination of these methods on steel engraved borders or may
be produced in any other manner, all as determined by the officers executing
such Securities, as evidenced by their execution of such Securities, subject,
with respect to the Securities of any series, to the rules of any securities
exchange on which such Securities are listed.

          Section 202.  FORMS OF SECURITIES. Each Security shall be in one of
the forms approved from time to time by or pursuant to a Board Resolution, or
established in one or more indentures supplemental hereto. Prior to the delivery
of a Security to the Trustee for authentication in any form approved by or
pursuant to a Board Resolution, the Company shall deliver to the Trustee the
Board Resolution by or pursuant to which such form of Security has been
approved, which Board Resolution shall have attached thereto a true and correct
copy of the form of Security which has been approved thereby or, if a Board
Resolution authorizes a specific officer or officers to approve a form of
Security, a certificate of such officer or officers approving the form of
Security attached thereto. Any form of Security approved by or pursuant to a
Board Resolution must be acceptable as to form to the Trustee, such acceptance
to be evidenced by the Trustee's authentication of Securities in that form or a
certificate signed by a Responsible Officer of the Trustee and delivered to the
Company.

          Each Security shall bear a notation of Guarantee in substantially the
form set forth in Section 205. Notwithstanding the foregoing, the notation of
Guarantee to be endorsed on the Securities of any series may have such
appropriate insertions, omissions, substitutions and other corrections from the
form thereof referred to above as are required or permitted by this Indenture
and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the
rules of any securities exchange or as may, consistently herewith, be determined
by the officers

<Page>

                                                                              20

delivering the same, in each case as evidenced by such delivery.

          Section 203.  FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION. The
form of Trustee's Certificate of Authentication for any Security issued pursuant
to this Indenture shall be substantially as follows:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

          This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

                                                       Bank One, National
                                                       Association
                                                       as Trustee,

Dated:                                           By:
      ------------------------                      ----------------------------
                                                            Authorized Signatory

          Section 204.  SECURITIES ISSUABLE IN THE FORM OF A GLOBAL SECURITY.
(a) If the Company shall establish pursuant to Sections 202 and 301 that the
Securities of a particular series are to be issued in whole or in part in the
form of one or more Global Securities, then the Company shall execute and the
Trustee or its agent shall, in accordance with Section 303 and the Company
Request delivered to the Trustee or its agent thereunder, authenticate and
deliver, such Global Security or Securities, which (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
the Outstanding Securities of such series to be represented by such Global
Security or Securities, or such portion thereof as the Company shall specify in
a Company Request, (ii) shall be registered in the name of the Depositary for
such Global Security or Securities or its nominee, (iii) shall be delivered by
the Trustee or its agent to the Depositary or pursuant to the Depositary's
instruction and (iv) shall bear a legend substantially to the following effect:
"Unless and until it is exchanged in whole or in part for the individual
Securities represented hereby, this Global Security may not be transferred
except as a whole by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the Depositary
or by the Depositary or

<Page>

                                                                              21

any such nominee to a successor Depositary or a nominee of such successor
Depositary."

          (b)  Notwithstanding any other provisions of this Section 204 or of
Section 305, and subject to the provisions of paragraph (c) below, unless the
terms of a Global Security expressly permit such Global Security to be exchanged
in whole or in part for individual Securities, a Global Security may be
transferred, in whole but not in part and in the manner provided in Section 305,
only to a nominee of the Depositary for such Global Security, or to the
Depositary, or a successor Depositary for such Global Security selected or
approved by the Company, or to a nominee of such successor Depositary.

          (c)   (i) If at any time the Depositary for a Global Security notifies
the Company that it is unwilling or unable to continue as Depositary for such
Global Security or if at any time the Depositary for the Securities for such
series ceases to be a clearing agency registered under the Securities Exchange
Act of 1934, as amended, or other applicable statute or regulation, the Company
shall appoint a successor Depositary with respect to such Global Security. If a
successor Depositary for such Global Security is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company will execute, and the Trustee or its agent, upon
receipt of a Company Request for the authentication and delivery of individual
Securities of such series in exchange for such Global Security, will
authenticate and deliver, individual Securities of such series of like tenor and
terms in an aggregate principal amount equal to the principal amount of the
Global Security in exchange for such Global Security.

               (ii) The Company may at any time and in its sole discretion
       determine that the Securities of any series or portion thereof issued or
       issuable in the form of one or more Global Securities shall no longer be
       represented by such Global Security or Securities. In such event the
       Company will execute, and the Trustee, upon receipt of a Company Request
       for the authentication and delivery of individual Securities of such
       series in exchange in whole or in part for such Global Security, will
       authenticate and deliver individual Securities of such series of like
       tenor and terms in definitive form in an aggregate principal amount equal
       to the principal amount of

<Page>

                                                                              22

       such Global Security or Securities representing such series or portion
       thereof in exchange for such Global Security or Securities.

               (iii) If specified by the Company pursuant to Sections 202 and
       301 with respect to Securities issued or issuable in the form of a Global
       Security, the Depositary for such Global Security may surrender such
       Global Security in exchange in whole or in part for individual Securities
       of such series of like tenor and terms in definitive form on such terms
       as are acceptable to the Company and such Depositary. Thereupon the
       Company shall execute, and the Trustee or its agent shall authenticate
       and deliver, without service charge, (1) to each Person specified by such
       Depositary a new Security or Securities of the same series of like tenor
       and terms and of any authorized denomination as requested by such Person
       in aggregate principal amount equal to and in exchange for such Person's
       beneficial interest in the Global Security; and (2) to such Depositary a
       new Global Security of like tenor and terms and in an authorized
       denomination equal to the difference, if any, between the principal
       amount of the surrendered Global Security and the aggregate principal
       amount of Securities delivered to the Holders thereof.

               (iv) In any exchange provided for in any of the preceding three
       paragraphs, the Company will execute and the Trustee or its agent will
       authenticate and deliver individual Securities in definitive registered
       form in authorized denominations. Upon the exchange of the entire
       principal amount of a Global Security for individual Securities, such
       Global Security shall be canceled by the Trustee or its agent. Except as
       provided in the preceding paragraph, Securities issued in exchange for a
       Global Security pursuant to this Section shall be registered in such
       names and in such authorized denominations as the Depositary for such
       Global Security, pursuant to instructions from its direct or indirect
       participants or otherwise, shall instruct the Trustee or the Security
       Registrar. The Trustee or the Security Registrar shall deliver such
       Securities to the Persons in whose names such Securities are so
       registered.

<Page>

                                                                              23

          Section 205.  FORM OF NOTATION OF GUARANTEE. The form of notation of
Guarantee to be endorsed on any Security issued pursuant to this Indenture shall
be substantially as follows:

                              NOTATION OF GUARANTEE

          White Mountains Insurance Group, Ltd., a company existing under the
law of Bermuda (the "Guarantor", which term includes any successor thereto under
the Indenture (the "Indenture") referred to in the Security on which this
notation is endorsed) has unconditionally guaranteed, pursuant to the terms of
the Guarantee contained in Article Twelve of the Indenture, the due and punctual
payment of the principal of and any premium and interest on this Security, when
and as the same shall become due and payable, whether at the Stated Maturity, by
declaration of acceleration, call for redemption, early repayment or otherwise,
in accordance with the terms of this Security and the Indenture.

          The obligations of the Guarantor to the Holders of the Securities and
to the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth in Article Twelve of the Indenture, and reference is hereby made to such
Article and Indenture for the precise terms of the Guarantee.

          The Guarantee shall not be valid or obligatory for any purpose until
the certificate of authentication on the Security upon which this notation of
the Guarantee is endorsed shall have been executed by the Trustee under the
Indenture by the manual signature of one of its authorized signatories.

                                     WHITE MOUNTAINS INSURANCE GROUP, LTD.

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

                                  ARTICLE THREE

                                 THE SECURITIES

          Section 301.  GENERAL TITLE; GENERAL LIMITATIONS; ISSUABLE IN SERIES;
TERMS OF PARTICULAR SERIES. The

<Page>

                                                                              24

aggregate principal amount of Securities which may be authenticated and
delivered and Outstanding under this Indenture is not limited.

          The Securities may be issued in one or more series up to an aggregate
principal amount of Securities as from time to time may be authorized by the
Board of Directors. All Securities of each series under this Indenture shall in
all respects be equally and ratably entitled to the benefits hereof with respect
to such series without preference, priority or distinction on account of the
actual time of the authentication and delivery or Stated Maturity of the
Securities of such series.

          Each series of Securities shall be created either by or pursuant to a
Board Resolution or by or pursuant to an indenture supplemental hereto. The
Securities of each such series may bear such date or dates, be payable at such
place or places, have such Stated Maturity or Maturities, be issuable at such
premium over or discount from their face value, bear interest at such rate or
rates (which may be fixed or floating), from such date or dates, payable in such
installments and on such dates and at such place or places to the Holders of
Securities registered as such on such Regular Record Dates, or may bear no
interest, and may be redeemable or repayable at such Redemption Price or Prices
or Repayment Price or Prices, as the case may be, whether at the option of the
Holder or otherwise, and upon such terms, all as shall be provided for in or
pursuant to the Board Resolution or in or pursuant to the supplemental indenture
creating that series. There may also be established in or pursuant to a Board
Resolution or in or pursuant to a supplemental indenture prior to the issuance
of Securities of each such series, provision for:

          (1)  the exchange or conversion of the Securities of that series, at
     the option of the Holders thereof, for or into new Securities of a
     different series or other securities or other property of the Company, the
     Guarantor or another Person, including shares of common stock, preferred
     stock, indebtedness or securities of any kind of the Company, the
     Guarantor, any Subsidiary of the Company or of the Guarantor or of any
     other Person or securities directly or indirectly convertible into or
     exchangeable for any such securities;

<Page>

                                                                              25

          (2)  a sinking or purchase fund or other analogous obligation;

          (3)  if other than U.S. dollars, the currency or currencies or units
     based on or related to currencies (including European Currency Units) in
     which the Securities of such series shall be denominated and in which
     payments of principal of, and any premium and interest on, such Securities
     shall or may be payable;

          (4)  if the principal of (and premium, if any) or interest, if any, on
     the Securities of such series are to be payable, at the election of the
     Company or a holder thereof, in a currency or currencies or units based on
     or related to currencies (including European Currency Units) other than
     that in which the Securities are stated to be payable, the period or
     periods within which, and the terms and conditions upon which, such
     election may be made;

          (5)  if the amount of payments of principal of (and premium, if any)
     or interest, if any, on the Securities of such series may be determined
     with reference to an index based on (i) a currency or currencies or units
     based on or related to currencies (including European Currency Units) other
     than that in which the Securities are stated to be payable, (ii) changes in
     the price of one or more other securities or groups or indexes of
     securities or (iii) changes in the prices of one or more commodities or
     groups or indexes of commodities, or any combination of the foregoing, the
     manner in which such amounts shall be determined;

          (6)  if the aggregate principal amount of the Securities of that
     series is to be limited, such limitations, and the maturity date of the
     principal amount of the Securities of that series (which may be fixed or
     extendible), and the rate or rates (which may be fixed or floating) per
     annum at which the Securities of the series will bear interest, if any, or
     the method of determining such rate or rates, and the payment dates and
     record dates relating to such interest payments;

          (7)  the exchange of Securities of that series, at the option of the
     Holders thereof, for other Securities of the same series of the same
     aggregate

<Page>

                                                                              26

     principal amount of a different authorized kind or different authorized
     denomination or denominations, or both;

          (8)  the appointment by the Trustee of an Authenticating Agent in one
     or more places other than the location of the office of the Trustee with
     power to act on behalf of the Trustee and subject to its direction in the
     authentication and delivery of the Securities of any one or more series in
     connection with such transactions as shall be specified in the provisions
     of this Indenture or in or pursuant to the Board Resolution or the
     supplemental indenture creating such series;

          (9)  the percentage of their principal amount at which such securities
     will be issued, and the portion of the principal amount of securities of
     the series, if other than the total principal amount thereof, which shall
     be payable upon declaration of acceleration of the Maturity thereof
     pursuant to Section 502 or provable in bankruptcy pursuant to Section 504;

          (10) any Event of Default with respect to the Securities of such
     series, if not set forth herein and any additions, deletions or other
     changes to the Events of Default set forth herein that shall be applicable
     to the Securities of such series (including a provision making any Event of
     Default set forth herein inapplicable to the Securities of that series);

          (11) any covenant solely for the benefit of the Securities of such
     series and any additions, deletions or other changes to the provisions of
     Article Ten or any definitions relating to such Article that shall be
     applicable to the Securities of such series (including a provision making
     any Section of such Article inapplicable to the Securities of such series);

          (12) the applicability of Section 402(b) of this Indenture to the
     Securities of such series;

          (13) if the Securities of the series shall be issued in whole or in
     part in the form of a Global Security or Global Securities, the terms and
     conditions, if any, upon which such Global Security or Global Securities
     may be exchanged in whole or in part

<Page>

                                                                              27

     for other individual Securities; and the Depositary for such Global
     Security or Global Securities (if other than the Depositary specified in
     Section 101 hereof);

          (14) the subordination of the Securities of such series to any other
     indebtedness of the Company and the Guarantor, including without
     limitation, the Securities of any other series; and

          (15) any other terms of the series, which shall not be inconsistent
     with the provisions of this Indenture, all upon such terms as may be
     determined in or pursuant to a Board Resolution or in or pursuant to a
     supplemental indenture with respect to such series. All Securities of the
     same series shall be substantially identical in tenor and effect, except as
     to denomination.

          The form of the Securities of each series shall be established
pursuant to the provisions of this Indenture in or pursuant to the Board
Resolution or in or pursuant to the supplemental indenture creating such series.
The Securities of each series shall be distinguished from the Securities of each
other series in such manner, reasonably satisfactory to the Trustee, as the
Board of Directors may determine.

          Unless otherwise provided with respect to Securities of a particular
series, the Securities of any series may only be issuable in registered form,
without coupons.

          Any terms or provisions in respect of the Securities of any series
issued under this Indenture may be determined pursuant to this Section by
providing in a Board Resolution or supplemental indenture for the method by
which such terms or provisions shall be determined.

          Section 302.  DENOMINATIONS. The Securities of each series shall be
issuable in such denominations and currency as shall be provided in the
provisions of this Indenture or in or pursuant to the Board Resolution or the
supplemental indenture creating such series. In the absence of any such
provisions with respect to the Securities of any series, the Securities of that
series shall be issuable only in fully registered form in denominations of
$1,000 and any integral multiple thereof.

<Page>

                                                                              28

          Section 303.  EXECUTION, AUTHENTICATION AND DELIVERY AND DATING. The
Securities shall be executed on behalf of the Company by its Chairman of the
Board, its President, one of its Vice Presidents or its Treasurer. The signature
of any of these officers on the Securities may be manual or facsimile.

          Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

          At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities executed by the Company to
the Trustee for authentication; and the Trustee shall, upon Company Order,
authenticate and make available for delivery such Securities as in this
Indenture provided and not otherwise.

          Prior to any such authentication and delivery, the Trustee shall be
entitled to receive, in addition to any Officers' Certificate and Opinion of
Counsel required to be furnished to the Trustee pursuant to Section 102, and the
Board Resolution and any certificate relating to the issuance of the series of
Securities required to be furnished pursuant to Section 202, an Opinion of
Counsel stating that:

          (1)  all instruments furnished to the Trustee conform to the
     requirements of the Indenture and constitute sufficient authority hereunder
     for the Trustee to authenticate and deliver such Securities;

          (2)  the form and terms (or in connection with the issuance of
     medium-term Securities under Section 311, the manner of determining the
     terms) of such Securities have been established in conformity with the
     provisions of this Indenture;

          (3)  all laws and requirements with respect to the execution and
     delivery by the Company of such Securities have been complied with, the
     Company has the corporate power to issue such Securities and such
     Securities have been duly authorized and delivered by the Company and,
     assuming due authentication and

<Page>

                                                                              29

     delivery by the Trustee, constitute legal, valid and binding obligations of
     the Company enforceable in accordance with their terms (subject, as to
     enforcement of remedies, to applicable bankruptcy, reorganization,
     insolvency, moratorium or other laws and legal principles affecting
     creditors' rights generally from time to time in effect and to general
     equitable principles, whether applied in an action at law or in equity) and
     entitled to the benefits of this Indenture, equally and ratably with all
     other Securities, if any, of such series Outstanding; and

          (4)  such other matters as the Trustee may reasonably request;

and, if the authentication and delivery relates to a new series of Securities
created by an indenture supplemental hereto, also stating that all laws and
requirements with respect to the form and execution by the Company of the
supplemental indenture with respect to that series of Securities have been
complied with, the Company has corporate power to execute and deliver any such
supplemental indenture and has taken all necessary corporate action for those
purposes and any such supplemental indenture has been executed and delivered and
constitutes the legal, valid and binding obligation of the Company enforceable
in accordance with its terms (subject, as to enforcement of remedies, to
applicable bankruptcy, reorganization, insolvency, moratorium or other laws and
legal principles affecting creditors' rights generally from time to time in
effect and to general equitable principles, whether applied in an action at law
or in equity).

          The Trustee shall not be required to authenticate such Securities if
the issue thereof will adversely affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture.

          Unless otherwise provided in the form of Security for any series, all
Securities shall be dated the date of their authentication.

          No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature of an authorized signatory, and such
certificate upon any

<Page>

                                                                              30

Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder.

          Section 304.  TEMPORARY SECURITIES. Pending the preparation of
definitive Securities of any series, the Company may execute, and, upon receipt
of the documents required by Section 303, together with a Company Order, the
Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities may
determine, as evidenced by their execution of such Securities.

          If temporary Securities of any series are issued, the Company will
cause definitive Securities of such series to be prepared without unreasonable
delay. After the preparation of definitive Securities, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment, without charge to the Holder; and
upon surrender for cancellation of any one or more temporary Securities the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of such series of
authorized denominations and of like tenor and terms. Until so exchanged the
temporary Securities of such series shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of such series.

          Section 305.  REGISTRATION, TRANSFER AND EXCHANGE. The Company shall
keep or cause to be kept a register (herein sometimes referred to as the
"Security Register") in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities, or of
Securities of a particular series, and for transfers of Securities or of
Securities of such series. Any such register shall be in written form or in any
other form capable of being converted into written form within a reasonable
time. At all reasonable times the information contained in such register or
registers shall be available for inspection by

<Page>

                                                                              31

the Trustee at the office or agency to be maintained by the Company as provided
in Section 1002.

          Subject to Section 204, upon surrender for transfer of any Security of
any series at the office or agency of the Company in a Place of Payment, the
Company shall execute, and the Trustee shall authenticate and make available for
delivery, in the name of the designated transferee or transferees, one or more
new Securities of such series of any authorized denominations, of a like
aggregate principal amount and Stated Maturity and of like tenor and terms.

          Subject to Section 204, at the option of the Holder, Securities of any
series may be exchanged for other Securities of such series of any authorized
denominations, of a like aggregate principal amount and Stated Maturity and of
like tenor and terms, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and make available for
delivery, the Securities which the Securityholder making the exchange is
entitled to receive.

          All Securities issued upon any transfer or exchange of Securities
shall be the valid obligations of the Company and the Guarantor, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the
Securities surrendered upon such transfer or exchange.

          Every Security presented or surrendered for transfer or exchange shall
(if so required by the Company or the Trustee) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed, by the Holder thereof or his
attorney duly authorized in writing.

          Unless otherwise provided in the Security to be transferred or
exchanged, no service charge shall be made on any Securityholder for any
transfer or exchange of Securities, but the Company may (unless otherwise
provided in such Security) require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any transfer
or exchange of Securities, other than exchanges pursuant to Section 304 or 906
not involving any transfer.

<Page>

                                                                              32

          The Company shall not be required (i) to issue, transfer or exchange
any Security of any series during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of Securities of
such series selected for redemption under Section 1103 and ending at the close
of business on the date of such mailing, or (ii) to transfer or exchange any
Security so selected for redemption in whole or in part, except for the portion
of such Security not so selected for redemption.

          None of the Company, the Guarantor, the Trustee, any agent of the
Trustee, any Paying Agent or the Security Registrar will have any responsibility
or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests of a Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.

          The Company initially appoints the Trustee to act as Security
Registrar for the Securities on its behalf. The Company may at any time and from
time to time authorize any Person to act as Security Registrar in place of the
Trustee with respect to any series of Securities issued under this Indenture.

          Section 306.  MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES. If (i)
any mutilated Security is surrendered to the Trustee, or the Company, the
Guarantor and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and (ii) there is delivered to the
Company, the Guarantor and the Trustee such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Company, the Guarantor or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and upon its
request the Trustee shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Security, a new Security of
like tenor, series, Stated Maturity and principal amount, bearing a number not
contemporaneously Outstanding.

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

<Page>

                                                                              33

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

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

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

          Section 307.  PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. Unless
otherwise provided with respect to such Security pursuant to Section 301,
interest on any Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest.

          Any interest on any Security which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the registered
Holder on the relevant Regular Record Date by virtue of his having been such
Holder; and, except as hereinafter provided, such Defaulted Interest may be paid
by the Company or the Guarantor, at its election in each case, as provided in
Clause (1) or Clause (2) below:

          (1)  The Company or the Guarantor may elect to make payment of any
     Defaulted Interest to the Persons in whose names any such Securities (or
     their respective Predecessor Securities) are registered at the close of
     business on a Special Record Date for the payment of such Defaulted
     Interest, which shall be fixed in the following manner. The Company or the

<Page>

                                                                              34

     Guarantor, as the case may be, shall notify the Trustee in writing of the
     amount of Defaulted Interest proposed to be paid on each such Security and
     the date of the proposed payment, and at the same time the Company or the
     Guarantor, as the case may be, shall deposit with the Trustee an amount of
     money equal to the aggregate amount proposed to be paid in respect of such
     Defaulted Interest or shall make arrangements satisfactory to the Trustee
     for such deposit prior to the date of the proposed payment, such money when
     deposited to be held in trust for the benefit of the Persons entitled to
     such Defaulted Interest as in this Clause provided. Thereupon the Trustee
     shall fix a Special Record Date for the payment of such Defaulted Interest
     which shall be not more than 15 nor less than 10 days prior to the date of
     the proposed payment and not less than 10 days after the receipt by the
     Trustee of the notice of the proposed payment. The Trustee shall promptly
     notify the Company or the Guarantor, as the case may be, of such Special
     Record Date and, in the name and at the expense of the Company or the
     Guarantor, shall cause notice of the proposed payment of such Defaulted
     Interest and the Special Record Date therefor to be mailed, first-class
     postage prepaid, to the Holder of each such Security at his address as it
     appears in the Security Register, not less than 10 days prior to such
     Special Record Date. Notice of the proposed payment of such Defaulted
     Interest and the Special Record Date therefor having been mailed as
     aforesaid, such Defaulted Interest shall be paid to the Persons in whose
     names such Securities (or their respective Predecessor Securities) are
     registered on such Special Record Date and shall no longer be payable
     pursuant to the following Clause (2).

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

<Page>

                                                                              35

          If any installment of interest the Stated Maturity of which is on or
prior to the Redemption Date for any Security called for redemption pursuant to
Article Eleven is not paid or duly provided for on or prior to the Redemption
Date in accordance with the foregoing provisions of this Section, such interest
shall be payable as part of the Redemption Price of such Securities.

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

          Section 308.  PERSONS DEEMED OWNERS. The Company, the Guarantor, the
Trustee and any agent of the Company, the Guarantor or the Trustee may treat the
Person in whose name any Security is registered in the Security Register as the
owner of such Security for the purpose of receiving payment of principal of (and
premium, if any), and (subject to Section 307) interest on, such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Guarantor, the Trustee nor any agent of the Company,
the Guarantor or the Trustee shall be affected by notice to the contrary.

          Section 309.  CANCELLATION. All Securities surrendered for payment,
redemption, transfer, conversion or exchange or credit against a sinking fund
shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee and, if not already canceled, shall be promptly canceled by it. The
Company or the Guarantor may at any time deliver to the Trustee for cancellation
any Securities previously authenticated and delivered hereunder which the
Company or the Guarantor may have acquired in any manner whatsoever, and all
Securities so delivered shall be promptly canceled by the Trustee. No Security
shall be authenticated in lieu of or in exchange for any Securities canceled as
provided in this Section, except as expressly permitted by this Indenture. The
Trustee shall return all canceled Securities to the Company.

          Section 310.  COMPUTATION OF INTEREST. Unless otherwise provided as
contemplated in Section 301, interest

<Page>

                                                                              36

on the Securities shall be calculated on the basis of a 360-day year of twelve
30-day months.

          Section 311.  MEDIUM-TERM SECURITIES. Notwithstanding any contrary
provision herein, if all Securities of a series are not to be originally issued
at one time, it shall not be necessary for the Company to deliver to the Trustee
an Officers' Certificate, Board Resolution, supplemental indenture, Opinion of
Counsel or Company Request otherwise required pursuant to Sections 202, 301 and
303 at or prior to the time of authentication of each Security of such series if
such documents are delivered to the Trustee or its agent at or prior to the
authentication upon original issuance of the first Security of such series to be
issued; provided that any subsequent request by the Company to the Trustee to
authenticate Securities of such series upon original issuance shall constitute a
representation and warranty by the Company that as of the date of such request,
the statements made in the Officers' Certificate delivered pursuant to Section
102 shall be true and correct as if made on such date.

          An Officers' Certificate, supplemental indenture or Board Resolution
delivered by the Company to the Trustee in the circumstances set forth in the
preceding paragraph may provide that Securities which are the subject thereof
will be authenticated and delivered by the Trustee or its agent on original
issue from time to time upon the telephonic or written order of persons
designated in such Officers' Certificate, Board Resolution or supplemental
indenture (any such telephonic instructions to be confirmed promptly in writing
by such persons) and that such persons are authorized to determine, consistent
with such Officers' Certificate, supplemental indenture or Board Resolution,
such terms and conditions of said Securities as are specified in such Officers'
Certificate, supplemental indenture or Board Resolution.

          Section 312.  CUSIP NUMBERS. The Company in issuing the Securities may
use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall
use "CUSIP" numbers in notices of redemption as a convenience to Holders;
PROVIDED that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on

<Page>

                                                                              37

the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers. The Company will promptly notify the Trustee of any
change in the "CUSIP" numbers.

          Section 313.  GLOBAL SECURITIES. (a) Each Global Security
authenticated under this Indenture shall be registered in the name of the
Depositary designated by the Company for such Global Security or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a single Security for
all purposes of this Indenture.

          (b)  Notwithstanding any other provision of this Indenture, no Global
Security may be exchanged in whole or in part for Securities registered, and no
transfer of a Global Security in whole or in part may be registered, in the name
of any Person other than the Depositary for such Global Security or a nominee
thereof unless (i) such Depositary (A) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (B)
has ceased to be a clearing agency registered as such under the Exchange Act or
announces an intention permanently to cease business or does in fact do so or
(ii) there shall have occurred and be continuing an Event of Default with
respect to such Global Security.

          (c)  If any Global Security is to be exchanged for other Securities or
canceled in whole, it shall be surrendered by or on behalf of the Depositary or
its nominee to the Trustee, as Security Registrar, for exchange or cancellation,
as provided in this Article Three. If any Global Security is to be exchanged for
other Securities or canceled in part, or if another Security is to be exchanged
in whole or in part for a beneficial interest in any Global Security, in each
case, as provided in Section 305, then either (i) such Global Security shall be
so surrendered for exchange or cancellation, as provided in this Article Three
or (ii) the principal amount thereof shall be reduced or increased by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the
principal amount of such other Security to be so exchanged for a beneficial
interest therein, as the case may be, by means of an appropriate adjustment made
on the records of the Trustee, as Security Registrar, whereupon the Trustee, in
accordance with the Applicable Procedures, shall instruct the Depositary or its
authorized representative to make a

<Page>

                                                                              38

corresponding adjustment to its records. Upon any such surrender or adjustment
of a Global Security, the Trustee shall, subject to Section 305 and as otherwise
provided in this Article Three authenticate and deliver any Securities issuable
in exchange for such Global Security (or any portion thereof) to or upon the
order of, and registered in such names as may be directed by, the Depositary or
its authorized representative. Upon the request of the Trustee in connection
with the occurrence of any of the events specified in the preceding paragraph,
the Company shall promptly make available to the Trustee a reasonable supply of
Securities that are not in the form of Global Securities. The Trustee shall be
entitled to rely upon any order, direction or request of the Depositary or its
authorized representative which is given or made pursuant to this Article Three
if such order, direction or request is given or made in accordance with the
Applicable Procedures.

          (d)  Every Security authenticated and delivered upon registration of
transfer of, or in exchange for or in lieu of, a Global Security or any portion
thereof, whether pursuant to this Article Three or otherwise, shall be
authenticated and delivered in the form of, and shall be, a registered Global
Security, unless such Security is registered in the name of a Person other than
the Depositary for such Global Security or a nominee thereof, in which case such
Registered Security shall be authenticated and delivered in definitive, fully
registered form, without interest coupons.

          (e)  The Depositary or its nominee, as registered owner of a Global
Security, shall be the Holder of such Global Security for all purposes under the
Indenture and the Registered Securities, and owners of beneficial interests in a
Global Security shall hold such interests pursuant to the Applicable Procedures.
Accordingly, any such owner's beneficial interest in a Global Security will be
shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Agent Members and
such owners of beneficial interests in a Global Security will not be considered
the owners or holders thereof.

<Page>

                                                                              39

                                  ARTICLE FOUR

                    SATISFACTION AND DISCHARGE OF INDENTURE;
                          DEFEASANCE; UNCLAIMED MONEYS

          Section 401.  APPLICABILITY OF ARTICLE. If, pursuant to Section 301,
provision is made for the defeasance of Securities of a series and if the
Securities of such series are denominated and payable only in U.S. dollars
(except as provided pursuant to Section 301), then the provisions of this
Article Four relating to defeasance of Securities shall be applicable except as
otherwise specified pursuant to Section 301 for Securities of such series.
Defeasance provisions, if any, for Securities denominated in a currency other
than U.S. dollars may be specified pursuant to Section 301.

          Section 402.  SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE. (a)
If at any time (i) the Company or the Guarantor shall have delivered to the
Trustee for cancellation all Securities of any series theretofore authenticated
and delivered (other than (1) any Securities of such series which shall have
been destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 306 and (2) Securities for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company or the
Guarantor as provided in Section 405) or (ii) all Securities of such series not
theretofore delivered to the Trustee for cancellation shall have become due and
payable, or are by their terms to become due and payable within one year or are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and the Company shall
deposit with the Trustee as trust funds the entire amount in the currency in
which such Securities are denominated (except as otherwise provided pursuant to
Section 301) sufficient (in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee) without consideration of any reinvestment and after
payment of all taxes or other charges and assessments in respect thereof payable
by the Trustee, to pay at maturity or upon redemption all Securities of such
series not theretofore delivered to the Trustee for cancellation, including
principal and premium, if any, and interest due or to become due on such date of
maturity or redemption date, as

<Page>

                                                                              40

the case may be, no default with respect to the Securities has occurred and is
continuing on the date of such deposit, such deposit does not result in a breach
or violation of, or constitute a default under, the Indenture or any other
agreement or instrument to which the Company or the Guarantor is a party and the
Company delivers an Officers' Certificate and an Opinion of Counsel each stating
that such conditions have been complied with and if in either case the Company
or the Guarantor shall also pay or cause to be paid all other sums payable
hereunder by the Company or the Guarantor, then this Indenture shall cease to be
of further effect (except as to any surviving rights of registration of transfer
or exchange of such Securities herein expressly provided for and rights to
receive payments of principal of, and premium, if any, and interest on, such
Securities) with respect to the Securities of such series, and the Trustee, on
demand of the Company or the Guarantor, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture.

          (b)  Subject to Sections 402(c), 403 and 407, the Company at any time
may terminate, with respect to Securities of a particular series, (i) all the
Company's and the Guarantor's obligations under the Securities of such series
and this Indenture with respect to the Securities of such series ("legal
defeasance option") or (ii) the Company's and the Guarantor's obligations with
respect to the Securities of such series under Section 1006 and 1007 and, to the
extent specified pursuant to Section 301, any other covenant applicable to the
Securities of such series ("covenant defeasance option"). The Company or the
Guarantor may exercise its legal defeasance option notwithstanding the prior
exercise of the covenant defeasance option.

          If the Company exercises the legal defeasance option, payment of the
Securities of the defeased series may not be accelerated because of an Event of
Default. If the Company exercises the covenant defeasance option, payment of the
Securities may not be accelerated because of an Event of Default specified in
Section 501(4) or (5) to the extent it relates to Section 1006 or 1007.

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

<Page>

                                                                              41

          (c)  Notwithstanding clause (a) above and the exercise of the legal
defeasance option in clause (b) above, the Company's and the Guarantor's
obligations in Sections 305, 306, 405, 406, 407, 607, 701 and 1002 shall survive
until the Securities of the defeased series have been paid in full. Thereafter,
the Company's and the Guarantor's obligations in Sections 607, 405 and 406 shall
survive.

          Section 403.  CONDITIONS OF DEFEASANCE. The Company may exercise the
legal defeasance option or the covenant defeasance option with respect to
Securities of a particular series only if:

          (1)  the Company or the Guarantor irrevocably deposits in trust with
     the Trustee money or U.S. Government Obligations for the payment of
     principal of, and premium, if any, and interest on, the Securities of such
     series to maturity or redemption, as the case may be;

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

          (3)  91 days pass after the deposit is made and during the 91-day
     period no Default specified in Section 501(5) or (6) with respect to the
     Company occurs which is continuing at the end of the period;

          (4)  no Default has occurred and is continuing on the date of such
     deposit and after giving effect thereto;

          (5)  the deposit does not constitute a default under any other
     agreement binding on the Company or the Guarantor;

          (6)  the Company or the Guarantor delivers to the Trustee an Opinion
     of Counsel to the effect that the

<Page>

                                                                              42

     trust resulting from the deposit does not constitute, or is qualified as, a
     regulated investment company under the Investment Company Act of 1940;

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

          (8)  in the event of the covenant defeasance option, the Company or
     the Guarantor shall have delivered to the Trustee an Opinion of Counsel to
     the effect that the Holders of Securities of such series will not recognize
     income, gain or loss for Federal income tax purposes as a result of such
     covenant defeasance and will be subject to Federal income tax on the same
     amounts, in the same manner and at the same times as would have been the
     case if such covenant defeasance had not occurred; and

          (9)  the Company or the Guarantor delivers to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that all conditions
     precedent to the defeasance and discharge of the Securities of such series
     as contemplated by this Article Four have been complied with.

          Before or after a deposit, the Company or the Guarantor may make
arrangements satisfactory to the Trustee for the redemption of Securities of
such series at a future date in accordance with Article Eleven.

          Section 404.  APPLICATION OF TRUST MONEY. The Trustee shall hold in
trust money or U.S. Government Obligations deposited with it pursuant to this
Article Four. It shall apply the deposited money and the money from U.S.
Government Obligations through any paying agent and in accordance with this
Indenture to the payment

<Page>

                                                                              43

of principal of, and premium, if any, and interest on, the Securities of the
defeased series.

          Section 405.  REPAYMENT TO COMPANY OR GUARANTOR. The Trustee and any
paying agent shall promptly turn over to the Company or the Guarantor upon
request any excess money or securities held by them at any time.

          Subject to any applicable abandoned property law, the Trustee and any
paying agent shall pay to the Company or the Guarantor upon request any money
held by them for the payment of principal, premium or interest that remains
unclaimed for two years, and, thereafter, Holders entitled to such money must
look to the Company or the Guarantor for payment as general creditors and all
liability of the Trustee or such paying agent with respect to such money shall
thereupon cease.

          Section 406.  INDEMNITY FOR U.S. GOVERNMENT OBLIGATIONS. The Company
and the Guarantor (without duplication) shall pay and shall indemnify the
Trustee and the Holders against any tax, fee or other charge imposed on or
assessed against deposited U.S. Government Obligations or the principal and
interest received on such U.S. Government Obligations.

          Section 407.  REINSTATEMENT. If the Trustee or any paying agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article Four by reason of any legal proceeding or by reason of any order or
judgment of any court or government authority enjoining, restraining or
otherwise prohibiting such application, the Company's and the Guarantor's
obligations under this Indenture and the Securities of the defeased series shall
be revived and reinstated as though no deposit had occurred pursuant to this
Article Four until such time as the Trustee or any paying agent is permitted to
apply all such money or U.S. Government Obligations in accordance with this
Article Four.

                                  ARTICLE FIVE

                                    REMEDIES

          Section 501.  EVENTS OF DEFAULT. "Event of Default", wherever used
herein, means with respect to any series of Securities any one of the following
events (whatever the reason for such Event of Default and whether

<Page>

                                                                              44

it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body), unless such event is
either inapplicable to a particular series or it is specifically deleted or
modified in the supplemental indenture creating such series of Securities or in
the form of Security for such series:

          (1)  default in the payment of any interest upon any Security of that
     series when it becomes due and payable, and continuance of such default for
     a period of 30 days; or

          (2)  default in the payment of the principal of (or premium, if any,
     on) any Security of that series at its Maturity; or

          (3)  default in the payment of any sinking or purchase fund or
     analogous obligation when the same becomes due by the terms of the
     Securities of such series; or

          (4)  default in the performance, or breach, of any covenant or
     warranty of the Company or the Guarantor in this Indenture in respect of
     the Securities of such series (other than a covenant or warranty in respect
     of the Securities of such series a default in the performance of which or
     the breach of which is elsewhere in this Section specifically dealt with),
     all of such covenants and warranties in the Indenture which are not
     expressly stated to be for the benefit of a particular series of Securities
     being deemed in respect of the Securities of all series for this purpose,
     and continuance of such default or breach for a period of 90 days after
     there has been given, by registered or certified mail, to the Company and
     the Guarantor by the Trustee or to the Company, the Guarantor and the
     Trustee by the Holders of at least 25% in principal amount of the
     Outstanding Securities of such series, a written notice specifying such
     default or breach and requiring it to be remedied and stating that such
     notice is a "Notice of Default" hereunder; or

          (5)  with respect to any series of Securities issued or guaranteed by
     the Guarantor, the Guarantor's consolidation or amalgamation with or merger
     into any

<Page>

                                                                              45

     other Person or conveyance or transfer of its properties and assets
     substantially as an entirety to any Person, unless:

               (A) the Person formed by such consolidation or amalgamation or
          into which the Guarantor is merged or the Person which acquires by
          conveyance or transfer the properties and assets of the Guarantor
          substantially as an entirety shall be a corporation or limited
          liability company organized and existing under the laws of the United
          States of America, any State thereof, the District of Columbia or
          Bermuda, and shall expressly assume, by an indenture supplemental
          hereto, executed by the successor Person and the Company and delivered
          to the Trustee, in form satisfactory to the Trustee, the due and
          punctual payment of the principal of (and premium, if any) and
          interest on all the Securities and the performance of every covenant
          of this Indenture on the part of the Guarantor to be performed or
          observed;

               (B) immediately after giving effect to such transaction, no Event
          of Default, and no event which, after notice or lapse of time, or
          both, would become an Event of Default, shall have happened and be
          continuing; and

               (C) either the Guarantor or the successor Person has delivered to
          the Trustee an Officers' Certificate and an Opinion of Counsel each
          stating that such consolidation, amalgamation, merger, conveyance or
          transfer and such supplemental indenture comply with this Article and
          that all conditions precedent herein provided for relating to such
          transaction have been complied with,

     and continuance of any failure to comply with the conditions set forth
     under items (A), (B) or (C) of this paragraph (5) for a period of 90 days
     after there has been given, by registered or certified mail, to the
     Guarantor by the Trustee or to the Guarantor and the Trustee by the Holders
     of at least 25% in principal amount of the Outstanding Securities of such
     series, a written notice specifying such failure to comply

<Page>

                                                                              46

     and requiring it to be remedied and stating that such notice is a "Notice
     of Default" hereunder; or

          (6)  the entry of an order for relief against the Company or the
     Guarantor under the Federal Bankruptcy Code by a court having jurisdiction
     in the premises or a decree or order by a court having jurisdiction in the
     premises adjudging the Company or the Guarantor a bankrupt or insolvent
     under any other applicable Federal, State or foreign law, or the entry of a
     decree or order approving as properly filed a petition seeking
     reorganization, arrangement, adjustment or composition of or in respect of
     the Company or the Guarantor under the Federal Bankruptcy Code or any other
     applicable Federal, State or foreign law (other than a reorganization under
     a foreign law that does not relate to insolvency), or appointing a
     receiver, liquidator, assignee, trustee, sequestrator (or other similar
     official) of the Company or the Guarantor or of any substantial part of its
     property, or ordering the winding up or liquidation of its affairs, and the
     continuance of any such decree or order unstayed and in effect for a period
     of 60 consecutive days; or

          (7)  the consent by the Company or the Guarantor to the institution of
     bankruptcy or insolvency proceedings against it, or the filing by it of a
     petition or answer or consent seeking reorganization or relief under the
     Federal Bankruptcy Code or any other applicable Federal, State or foreign
     law (other than a reorganization under a foreign law that does not relate
     to insolvency), or the consent by it to the filing of any such petition or
     to the appointment of a receiver, liquidator, assignee, trustee,
     sequestrator (or other similar official) of the Company or the Guarantor or
     of any substantial part of its property, or the making by it of an
     assignment for the benefit of creditors, or the admission by it in writing
     of its inability to pay its debts generally as they become due, or the
     taking of corporate action by the Company or the Guarantor in furtherance
     of any such action; or

          (8)  any other Event of Default provided in the supplemental indenture
     under which such series of Securities is issued or in the form of Security
     for such series.

<Page>

                                                                              47

          Section 502.  ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If
an Event of Default described in paragraph (1), (2), (3), (4), (5) or (8) (if
the Event of Default under paragraph (4), (5) or (8) is with respect to less
than all series of Securities then Outstanding) of Section 501 occurs and is
continuing with respect to any series, then and in each and every such case,
unless the principal of all the Securities of such series shall have already
become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of the Securities of such series then Outstanding
hereunder (each such series acting as a separate class), by notice in writing to
the Company and the Guarantor (and to the Trustee if given by Holders), may
declare the principal amount (or, if the Securities of such series are Original
Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of that series) of all the Securities of such series then
Outstanding and all accrued interest thereon to be due and payable immediately,
and upon any such declaration the same shall become and shall be immediately due
and payable, anything in this Indenture or in the Securities of such series
contained to the contrary notwithstanding. If an Event of Default described in
paragraph (4), (5), (8) (if the Event of Default under paragraph (4), (5) or (8)
is with respect to all series of Securities then Outstanding), (6) or (7) of
Section 501 occurs and is continuing, then and in each and every such case,
unless the principal of all the Securities shall have already become due and
payable, either the Trustee or the Holders of not less than 25% in aggregate
principal amount of all the Securities then Outstanding hereunder (treated as
one class), by notice in writing to the Company and the Guarantor (and to the
Trustee if given by Holders), may declare the principal amount (or, if any
Securities are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms thereof) of all the Securities then
Outstanding and all accrued interest thereon, if any, to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, anything in this Indenture or in the Securities
contained to the contrary notwithstanding.

          At any time after such a declaration of acceleration has been made
with respect to the Securities of any series and before a judgment or decree for
payment of the money due has been obtained by the Trustee as

<Page>

                                                                              48

hereinafter in this Article provided, the Holders of a majority in principal
amount of the Outstanding Securities of such series, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if

          (1)  the Company or the Guarantor has paid or deposited with the
     Trustee a sum sufficient to pay

               (A) all overdue installments of interest on the Securities of
          such series,

               (B) the principal of (and premium, if any, on) any Securities of
          such series which have become due otherwise than by such declaration
          of acceleration, and interest thereon at the rate or rates prescribed
          therefor by the terms of the Securities of such series, to the extent
          that payment of such interest is lawful,

               (C) interest upon overdue installments of interest at the rate or
          rates prescribed therefor by the terms of the Securities of such
          series to the extent that payment of such interest is lawful, and

               (D) all sums paid or advanced by the Trustee hereunder and the
          reasonable compensation, expenses, disbursements and advances of the
          Trustee, its agents and counsel and all other amounts due the Trustee
          under Section 607;

and

          (2)  all Events of Default with respect to such series of Securities,
     other than the nonpayment of the principal of the Securities of such series
     which have become due solely by such acceleration, have been cured or
     waived as provided in Section 513.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

          Section 503.  Collection of Indebtedness and Suits for Enforcement by
Trustee. The Company and the Guarantor each covenants that if

<Page>

                                                                              49

          (1)  default is made in the payment of any installment of interest on
     any Security of any series when such interest becomes due and payable, or

          (2)  default is made in the payment of the principal of (or premium,
     if any, on) any Security at the Maturity thereof, or

          (3)  default is made in the payment of any sinking or purchase fund or
     analogous obligation when the same becomes due by the terms of the
     Securities of any series,

and any such default continues for any period of grace provided with respect to
the Securities of such series, the Company or the Guarantor, as the case may be,
will, upon demand of the Trustee, pay to it, for the benefit of the Holder of
any such Security (or the Holders of any such series in the case of Clause (3)
above), the whole amount then due and payable on any such Security (or on the
Securities of any such series in the case of Clause (3) above) for principal
(and premium, if any) and interest, with interest, to the extent that payment of
such interest shall be legally enforceable, upon the overdue principal (and
premium, if any) and upon overdue installments of interest, at such rate or
rates as may be prescribed therefor by the terms of any such Security (or of
Securities of any such series in the case of Clause (3) above); and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and all other
amounts due the Trustee under Section 607.

          If the Company or the Guarantor fails to pay such amounts forthwith
upon such demand, the Trustee, in its own name and as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so due
and unpaid, and may prosecute such proceeding to judgment or final decree, and
may enforce the same against the Company or the Guarantor or any other obligor
upon the Securities of such series and collect the money adjudged or decreed to
be payable in the manner provided by law out of the property of the Company or
the Guarantor or any other obligor upon such Securities, wherever situated.

<Page>

                                                                              50

          If an Event of Default with respect to any series of Securities occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

          Section 504.  TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company, Guarantor or any other obligor upon the
Securities or the property of the Company, Guarantor or of such other obligor or
their creditors, the Trustee (irrespective of whether the principal of the
Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
on the Company or the Guarantor for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceedings
or otherwise,

                (i) to file and prove a claim for the whole amount of principal
       (and premium, if any) and interest owing and unpaid in respect of the
       Securities and to file such other papers or documents as may be necessary
       and advisable in order to have the claims of the Trustee (including any
       claim for the reasonable compensation, expenses, disbursements and
       advances of the Trustee, its agents and counsel and all other amounts due
       the Trustee under Section 607) and of the Securityholders allowed in such
       judicial proceeding, and

               (ii) to collect and receive any moneys or other property payable
       or deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each
Securityholder to make such payment to the Trustee and in the event that the
Trustee shall consent to the making of

<Page>

                                                                              51

such payments directly to the Securityholders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 607.

          Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan or reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Securityholder in any such proceeding.

          Section 505.  TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
SECURITIES. All rights of action and claims under this Indenture or the
Securities of any series may be prosecuted and enforced by the Trustee without
the possession of any of the Securities of such series or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agent and
counsel, be for the ratable benefit of the Holders of the Securities of the
series in respect of which such judgment has been recovered.

          Section 506.  APPLICATION OF MONEY COLLECTED. Any money collected by
the Trustee with respect to a series of Securities pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
(or premium, if any) or interest, upon presentation of the Securities of such
series and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

          FIRST: To the payment of all amounts due the Trustee under Section
607.

          SECOND: To the payment of the amounts then due and unpaid upon the
Securities of that series for principal (and premium, if any) and interest, in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities

<Page>

                                                                              52

for principal (and premium, if any) and interest, respectively.

          THIRD: To the Company or the Guarantor or both, as they are entitled.

          Section 507.  LIMITATION ON SUITS. No Holder of any Security of any
series shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless

          (1)  such Holder has previously given written notice to the Trustee of
     a continuing Event of Default with respect to Securities of such series;

          (2)  the Holders of not less than 25% in principal amount of the
     Outstanding Securities of such series shall have made written request to
     the Trustee to institute proceedings in respect of such Event of Default in
     its own name as Trustee hereunder;

          (3)  such Holder or Holders have offered to the Trustee reasonable
     indemnity against the costs, expenses and liabilities to be incurred in
     compliance with such request;

          (4)  the Trustee for 60 days after its receipt of such notice, request
     and offer of indemnity has failed to institute any such proceeding; and

          (5)  no direction inconsistent with such written request has been
     given to the Trustee during such 60-day period by the Holders of a majority
     in aggregate principal amount of the Outstanding Securities of such series;

it being understood and intended that no one or more Holders of Securities of
such series shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice the
rights of any other Holders of Securities of such series, or to obtain or to
seek to obtain priority or preference over any other such Holders or to enforce
any right under this Indenture, except in the manner herein provided and for the
equal and proportionate benefit of all the Holders of all Securities of such
series.

<Page>

                                                                              53

          Section 508.  UNCONDITIONAL RIGHT OF SECURITYHOLDERS TO RECEIVE
PRINCIPAL, PREMIUM AND INTEREST. Notwithstanding any other provisions in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of (and premium, if any)
and (subject to Section 307) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption or
repayment, on the Redemption Date or Repayment Date, as the case may be) and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Holder.

          Section 509.  RESTORATION OF RIGHTS AND REMEDIES. If the Trustee or
any Securityholder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason, then and in every such case the Company, the Guarantor, the Trustee
and the Securityholders shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Securityholders shall
continue as though no such proceeding had been instituted.

          Section 510.  RIGHTS AND REMEDIES CUMULATIVE. No right or remedy
herein conferred upon or reserved to the Trustee or to the Securityholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

          Section 511.  DELAY OR OMISSION NOT WAIVER. No delay or omission of
the Trustee or of any Holder of any Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Securityholders, as the case may be.

<Page>

                                                                              54

          Section 512.  CONTROL BY SECURITYHOLDERS. The Holders of a majority in
principal amount of the Outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee with respect to the Securities of such series, provided that

          (1)  the Trustee shall have the right to decline to follow any such
     direction if the Trustee, being advised by counsel, determines that the
     action so directed may not lawfully be taken or would conflict with this
     Indenture or if the Trustee in good faith shall, by a Responsible Officer,
     determine that the proceedings so directed would involve it in personal
     liability or be unjustly prejudicial to the Holders not taking part in such
     direction, and

          (2)  the Trustee may take any other action deemed proper by the
     Trustee which is not inconsistent with such direction.

          Section 513.  WAIVER OF PAST DEFAULTS. The Holders of not less than a
majority in principal amount of the Outstanding Securities of any series may on
behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a
default not theretofore cured

          (1)  in the payment of the principal of (or premium, if any) or
     interest on any Security of such series, or in the payment of any sinking
     or purchase fund or analogous obligation with respect to the Securities of
     such series, or

          (2)  in respect of a covenant or provision hereof which under Article
     Nine cannot be modified or amended without the consent of the Holder of
     each Outstanding Security of such series.

          Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.

<Page>

                                                                              55

          Section 514.  UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Security by his acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken or omitted by it as Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder, or
group of Securityholders, holding in the aggregate more than 10% in principal
amount of the Outstanding Securities of any series to which the suit relates, or
to any suit instituted by any Securityholder for the enforcement of the payment
of the principal of (or premium, if any) or interest on any Security on or after
the respective Stated Maturities expressed in such Security (or, in the case of
redemption or repayment, on or after the Redemption Date or Repayment Date).

          Section 515.  WAIVER OF STAY OR EXTENSION LAWS. The Company and the
Guarantor each covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company and the Guarantor each (to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been
enacted.

                                   ARTICLE SIX

                                   THE TRUSTEE

          Section 601.  CERTAIN DUTIES AND RESPONSIBILITIES. (a) Except during
the continuance of an Event of Default with respect to any series of Securities,

<Page>

                                                                              56

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

          (2)  in the absence of bad faith on its part, the Trustee may, with
     respect to Securities of such series, conclusively rely, as to the truth of
     the statements and the correctness of the opinions expressed therein, upon
     certificates or opinions furnished to the Trustee and conforming to the
     requirements of this Indenture; but in the case of any such certificates or
     opinions which by any provision hereof are specifically required to be
     furnished to the Trustee, the Trustee shall be under a duty to examine the
     same to determine whether or not they conform to the requirements of this
     Indenture.

          (b)  In case an Event of Default with respect to any series of
Securities has occurred and is continuing, the Trustee shall exercise with
respect to the Securities of such series such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs.

          (c)  No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that

          (1)  this Subsection shall not be construed to limit the effect of
     Subsection (a) of this Section;

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

          (3)  the Trustee shall not be liable with respect to any action taken
     or omitted to be taken by it in good faith in accordance with the direction
     of the Holders of a majority in principal amount of the Outstanding
     Securities of any series relating to the time, method and place of
     conducting any proceeding

<Page>

                                                                              57

     for any remedy available to the Trustee, or exercising any trust or power
     conferred upon the Trustee, under this Indenture with respect to the
     Securities of such series; and

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

          (d)  Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section.

          Section 602.  NOTICE OF DEFAULTS. Within 90 days after the occurrence
of any default hereunder with respect to Securities of any series, the Trustee
shall transmit by mail to all Securityholders of such series, as their names and
addresses appear in the Security Register, notice of such default hereunder
known to the Trustee, unless such default shall have been cured or waived;
PROVIDED, HOWEVER, that, except in the case of a default in the payment of the
principal of (or premium, if any) or interest on any Security of such series or
in the payment of any sinking or purchase fund installment or analogous
obligation with respect to Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the interests of the Securityholders of such series; and PROVIDED,
FURTHER, that in the case of any default of the character specified in Section
501(4) or (5) with respect to Securities of such series no such notice to
Securityholders of such series shall be given until at least 90 days after the
occurrence thereof. For the purpose of this Section, the term "default", with
respect to Securities of any series, means any event which is, or after notice
or lapse of time or both would become, an Event of Default with respect to
Securities of such series.

<Page>

                                                                              58

          Section 603.  CERTAIN RIGHTS OF TRUSTEE. Except as otherwise provided
in Section 601:

          (a)  the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

          (b)  any request or direction of the Company or the Guarantor
mentioned herein shall be sufficiently evidenced by a Company Request or Company
Order, or a Guarantor Request or Guarantor Order, as applicable, and any
resolution of the Board of Directors or the Guarantor Board of Directors may be
sufficiently evidenced by a Board Resolution or a Guarantor's Board Resolution,
as applicable;

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

          (d)  the Trustee may consult with counsel of its selection and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;

          (e)  the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Securityholders pursuant to this Indenture, unless such
Securityholders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred by
it in compliance with such request or direction;

          (f)  the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond,

<Page>

                                                                              59

debenture or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company and the Guarantor, personally or by agent or attorney; and

          (g)  the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder.

          Section 604.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.
The recitals contained herein and in the Securities, except the certificates of
authentication, shall be taken as the statements of the Company or the
Guarantor, as applicable, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee shall not be
accountable for the use or application by the Company or the Guarantor of
Securities or the proceeds thereof.

          Section 605.  MAY HOLD SECURITIES. The Trustee, any Paying Agent, the
Security Registrar or any other agent of the Company or the Guarantor, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 608 and 613, may otherwise deal with the Company or the
Guarantor with the same rights it would have if it were not Trustee, Paying
Agent, Security Registrar or such other agent.

          Section 606.  MONEY HELD IN TRUST. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company or the
Guarantor.

          Section 607.  COMPENSATION AND REIMBURSEMENT. The Company and the
Guarantor (without duplication) agrees

          (1)  to pay to the Trustee from time to time as the parties shall
     agree from time to time such

<Page>

                                                                              60

     compensation for all services rendered by it hereunder (which compensation
     shall not be limited by any provision of law in regard to the compensation
     of a trustee of an express trust);

          (2)  except as otherwise expressly provided herein, to reimburse the
     Trustee upon its request for all reasonable expenses, disbursements and
     advances incurred or made by the Trustee in accordance with any provision
     of this Indenture (including the reasonable compensation and the expenses
     and disbursements of its agents and counsel), except any such expense,
     disbursement or advance as may be attributable to its negligence or bad
     faith; and

          (3)  to indemnify the Trustee for, and to hold it harmless against,
     any loss, liability or expense incurred without negligence or bad faith on
     its part, arising out of or in connection with the acceptance or
     administration of this trust, including the costs and expenses of defending
     itself against any claim or liability in connection with the exercise or
     performance of any of its powers or duties hereunder.

          As security for the performance of the obligations of the Company and
the Guarantor under this Section the Trustee shall have a lien prior to the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of (and premium, if any)
or interest on particular Securities.

          Section 608.  DISQUALIFICATION; CONFLICTING INTERESTS. The Trustee for
the Securities of any series issued hereunder shall be subject to the provisions
of Section 310(b) of the Trust Indenture Act during the period of time provided
for therein. In determining whether the Trustee has a conflicting interest as
defined in Section 310(b) of the Trust Indenture Act with respect to the
Securities of any series, there shall be excluded for purposes of the
conflicting interest provisions of such Section 310(b) the Securities of every
other series issued under this Indenture and every series of securities issued
under any other indentures if the requirements for such exclusion set forth in
section 310(b) of the Trust Indenture Act are met. Nothing herein shall prevent
the Trustee from filing with the Commission the application

<Page>

                                                                              61

referred to in the second to last paragraph of Section 310(b) of the Trust
Indenture Act.

          Section 609.  CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. There shall at
all times be a Trustee hereunder with respect to each series of Securities,
which shall be a corporation organized and doing business under the laws of the
United States of America or of any State, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$50,000,000, and subject to supervision or examination by Federal or State
authority. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee with respect to any series of Securities shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

          Section 610.  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR. (a)
No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee under Section 611.

          (b)  The Trustee may resign with respect to any series of Securities
at any time by giving written notice thereof to the Company and the Guarantor.
If an instrument of acceptance by a successor Trustee shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

          (c)  The Trustee may be removed with respect to any series of
Securities at any time by Act of the Holders of a majority in principal amount
of the Outstanding Securities of that series, delivered to the Trustee and to
the Company and the Guarantor. If an instrument of acceptance by a successor
Trustee shall not have been delivered to the Trustee within 30 days after the
giving of such notice of removal, the removed Trustee may petition

<Page>

                                                                              62

any court of competent jurisdiction for the appointment of a successor Trustee.

          (d)  If at any time:

          (1)  the Trustee shall fail to comply with Section 310(b) of the Trust
     Indenture Act pursuant to Section 608(a) with respect to any series of
     Securities after written request therefor by the Company, by the Guarantor
     or by any Securityholder who has been a bona fide Holder of a Security of
     that series for at least 6 months, or

          (2)  the Trustee shall cease to be eligible under Section 609 with
     respect to any series of Securities and shall fail to resign after written
     request therefor by the Company, by the Guarantor or by any such
     Securityholder, or

          (3)  the Trustee shall become incapable of acting with respect to any
     series of Securities, or

          (4)  the Trustee shall be adjudged a bankrupt or insolvent or a
     receiver of the Trustee or of its property shall be appointed or any public
     officer shall take charge or control of the Trustee or of its property or
     affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution, or the Guarantor
by a Guarantor's Board Resolution, may remove the Trustee, with respect to the
series, or in the case of Clause (4), with respect to all series, or (ii)
subject to Section 514, any Securityholder who has been a bona fide Holder of a
Security of such series for at least 6 months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee with respect
to the series, or, in the case of Clause (4), with respect to all series.

          (e)  If the Trustee shall resign, be removed or become incapable of
acting with respect to any series of Securities, or if a vacancy shall occur in
the office of the Trustee with respect to any series of Securities for any
cause, the Company, by a Board Resolution, shall promptly appoint a successor
Trustee for that series of

<Page>

                                                                              63

Securities. If, within one year after such resignation, removal or incapacity,
or the occurrence of such vacancy, a successor Trustee with respect to such
series of Securities shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the
Company, the Guarantor and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee with respect to such series and supersede the successor
Trustee appointed by the Company with respect to such series. If no successor
Trustee with respect to such series shall have been so appointed by the Company
or the Securityholders of such series and accepted appointment in the manner
hereinafter provided, any Securityholder who has been a bona fide Holder of a
Security of that series for at least 6 months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to such series.

          (f)  The Company shall give notice of each resignation and each
removal of the Trustee with respect to any series and each appointment of a
successor Trustee with respect to any series by mailing written notice of such
event by first-class mail, postage prepaid, to the Holders of Securities of that
series as their names and addresses appear in the Security Register. Each notice
shall include the name of the successor Trustee and the address of its principal
Corporate Trust Office.

          Section 611.  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every successor
Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company, the Guarantor and to the predecessor Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the predecessor
Trustee shall become effective with respect to any series as to which it is
resigning or being removed as Trustee, and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the predecessor Trustee with respect to any such
series; but, on request of the Company, the Guarantor or the successor Trustee,
such predecessor Trustee shall, upon payment of its reasonable charges, if any,
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the

<Page>

                                                                              64

predecessor Trustee, and shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such predecessor Trustee
hereunder with respect to all or any such series, subject nevertheless to its
lien, if any, provided for in Section 607. Upon request of any such successor
Trustee, the Company and the Guarantor shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts.

          In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
Guarantor, the predecessor Trustee and each successor Trustee with respect to
the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the predecessor Trustee with respect to the Securities of any series as to
which the predecessor Trustee is not being succeeded shall continue to be vested
in the predecessor Trustee, and shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be Trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee.

          No successor Trustee with respect to any series of Securities shall
accept its appointment unless at the time of such acceptance such successor
Trustee shall be qualified and eligible with respect to that series under this
Article.

          Section 612.  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any

<Page>

                                                                              65

of the parties hereto. In case any Securities shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

          Section 613.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. (a)
Subject to Subsection (b) of this Section, if the Trustee shall be or shall
become a creditor, directly or indirectly, secured or unsecured, of the Company
within 3 months prior to a default, as defined in Subsection (c) of this
Section, or subsequent to such a default, then, unless and until such default
shall be cured, the Trustee shall set apart and hold in a special account for
the benefit of the Trustee individually, the Holders of the Securities and the
holders of other indenture securities (as defined in Subsection (c) of this
Section):

          (1)  an amount equal to any and all reductions in the amount due and
     owing upon any claim as such creditor in respect of principal or interest,
     effected after the beginning of such 3-month period and valid as against
     the Company and its other creditors, except any such reduction resulting
     from the receipt or disposition of any property described in paragraph (2)
     of this Subsection, or from the exercise of any right of set-off which the
     Trustee could have exercised if a petition in bankruptcy had been filed by
     or against the Company upon the date of such default; and

          (2)  all property received by the Trustee in respect of any claim as
     such creditor, either as security therefor, or in satisfaction or
     composition thereof, or otherwise, after the beginning of such 3-month
     period, or an amount equal to the proceeds of any such property, if
     disposed of, subject, however, to the rights, if any, of the Company and
     its other creditors in such property or such proceeds.

Nothing herein contained, however, shall affect the right of the Trustee

               (A) to retain for its own account (i) payments made on account of
           any such claim by any Person (other than the Company) who is

<Page>

                                                                              66

           liable thereon, and (ii) the proceeds of the bona fide sale of any
           such claim by the Trustee to a third person, and (iii) distributions
           made in cash, securities or other property in respect of claims filed
           against the Company in bankruptcy or receivership or in proceedings
           for reorganization pursuant to the Federal Bankruptcy Act or
           applicable State law;

               (B) to realize, for its own account, upon any property held by it
           as security for any such claim, if such property was so held prior to
           the beginning of such 3-month period;

               (C) to realize, for its own account, but only to the extent of
           the claim hereinafter mentioned, upon any property held by it as
           security for any such claim, if such claim was created after the
           beginning of such 3-month period and such property was received as
           security therefor simultaneously with the creation thereof, and if
           the Trustee shall sustain the burden of proving that at the time such
           property was so received the Trustee had no reasonable cause to
           believe that a default as defined in Subsection (c) of this Section
           would occur within 3 months; or

               (D) to receive payment on any claim referred to in paragraph (B)
           or (C), against the release of any property held as security for such
           claim as provided in paragraph (B) or (C), as the case may be, to the
           extent of the fair value of such property.

          For the purposes of paragraphs (B), (C) and (D), property substituted
after the beginning of such 3-month period for property held as security at the
time of such substitution shall, to the extent of the fair value of the property
released, have the same status as the property released, and, to the extent that
any claim referred to in any of such paragraphs is created in renewal of or in
substitution for or for the purpose of repaying or refunding any pre-existing
claim of the Trustee as such creditor, such claim shall have the same status as
such pre-existing claim.

<Page>

                                                                              67

          If the Trustee shall be required to account, the funds and property
held in such special account and the proceeds thereof shall be apportioned
between the Trustee, the Securityholders and the holders of other indenture
securities in such manner that the Trustee, the Securityholders and the holders
of other indenture securities realize, as a result of payments from such special
account and payments of dividends on claims filed against the Company in
bankruptcy or receivership or in proceedings for reorganization pursuant to the
Federal Bankruptcy Act or applicable State law, the same percentage of their
respective claims, figured before crediting to the claim of the Trustee anything
on account of the receipt by it from the Company of the funds and property in
such special account and before crediting to the respective claims of the
Trustee and the Securityholders and the holders of other indenture securities
dividends on claims filed against the Company in bankruptcy or receivership or
in proceedings for reorganization pursuant to the Federal Bankruptcy Act or
applicable State law, but after crediting thereon receipts on account of the
indebtedness represented by their respective claims from all sources other than
from such dividends and from the funds and property so held in such special
account. As used in this paragraph, with respect to any claim, the term
"dividends" shall include any distribution with respect to such claim, in
bankruptcy or receivership or proceedings for reorganization pursuant to the
Federal Bankruptcy Act or applicable State law, whether such distribution is
made in cash, securities, or other property, but shall not include any such
distribution with respect to the secured portion, if any, of such claim. The
court in which such bankruptcy, receivership or proceedings for reorganization
is pending shall have jurisdiction (i) to apportion between the Trustee and the
Securityholders and the holders of other indenture securities in accordance with
the provisions of this paragraph, the funds and property held in such special
account and proceeds thereof, or (ii) in lieu of such apportionment, in whole or
in part, to give to the provisions of this paragraph due consideration in
determining the fairness of the distributions to be made to the Trustee and the
Securityholders and the holders of other indenture securities with respect to
their respective claims, in which event it shall not be necessary to liquidate
or to appraise the value of any securities or other property held in such
special account or as security for any such claim, or to make a specific
allocation of

<Page>

                                                                              68

such distributions as between the secured and unsecured portions of such claims,
or otherwise to apply the provisions of this paragraph as a mathematical
formula.

          Any Trustee which has resigned or been removed after the beginning of
such 3-month period shall be subject to the provisions of this Subsection as
though such resignation or removal had not occurred. If any Trustee has resigned
or been removed prior to the beginning of such 3-month period, it shall be
subject to the provisions of this Subsection if and only if the following
conditions exist:

                (ii) the receipt of property or reduction of claim, which would
       have given rise to the obligation to account, if such Trustee had
       continued as Trustee, occurred after the beginning of such 3-month
       period; and

               (iii) such receipt of property or reduction of claim occurred
       within 3 months after such resignation or removal.

          (b)  There shall be excluded from the operation of Subsection (a) of
this Section a creditor relationship arising from

          (1)  the ownership or acquisition of securities issued under any
     indenture, or any security or securities having a maturity of one year or
     more at the time of acquisition by the Trustee;

          (2)  advances authorized by a receivership or bankruptcy court of
     competent jurisdiction, or by this Indenture, for the purpose of preserving
     any property which shall at any time be subject to the lien of this
     Indenture or of discharging tax liens or other prior liens or encumbrances
     thereon, if notice of such advances and of the circumstances surrounding
     the making thereof is given to the Securityholders at the time and in the
     manner provided in this Indenture;

          (3)  disbursements made in the ordinary course of business in the
     capacity of trustee under an indenture, transfer agent, registrar,
     custodian, paying agent, fiscal agent or depositary, or other similar
     capacity;

<Page>

                                                                              69

          (4)  an indebtedness created as a result of services rendered or
     premises rented; or an indebtedness created as a result of goods or
     securities sold in a cash transaction as defined in Subsection (c) of this
     Section;

          (5)  the ownership of stock or of other securities of a corporation
     organized under the provisions of Section 25(a) of the Federal Reserve Act,
     as amended, which is directly or indirectly a creditor of the Company; or

          (6)  the acquisition, ownership, acceptance or negotiation of any
     drafts, bills of exchange, acceptances or obligations which fall within the
     classification of self liquidating paper as defined in Subsection (c) of
     this Section.

          (c)  For the purposes of this Section only:

          (1)  The term "default" means any failure to make payment in full of
     the principal of or interest on any of the Securities or upon the other
     indenture securities when and as such principal or interest becomes due and
     payable.

          (2)  The term "other indenture securities" means securities upon which
     the Company is an obligor outstanding under any other indenture (i) under
     which the Trustee is also trustee, (ii) which contains provisions
     substantially similar to the provisions of this Section, and (iii) under
     which a default exists at the time of the apportionment of the funds and
     property held in such special account.

          (3)  The term "cash transaction" means any transaction in which full
     payment for goods or securities sold is made within 7 days after delivery
     of the goods or securities in currency or in checks or other orders drawn
     upon banks or bankers and payable upon demand.

          (4)  The term "self-liquidating paper" means any draft, bill of
     exchange, acceptance or obligation which is made, drawn, negotiated or
     incurred by the Company for the purpose of financing the purchase,
     processing, manufacturing, shipment, storage or sale of goods, wares or
     merchandise and which is secured by

<Page>

                                                                              70

     documents evidencing title to, possession of, or a lien upon, the goods,
     wares or merchandise or the receivables or proceeds arising from the sale
     of the goods, wares or merchandise previously constituting the security,
     provided the security is received by the Trustee simultaneously with the
     creation of the creditor relationship with the Company arising from the
     making, drawing, negotiating or incurring of the draft, bill of exchange,
     acceptance or obligation.

          (5)  The term "Company" means any obligor upon the Securities.

          Section 614.  APPOINTMENT OF AUTHENTICATING AGENT. At any time when
any of the Securities remain Outstanding the Trustee, with the approval of the
Company, may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section
306, and Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as an Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and,
if other than the Company itself, subject to supervision or examination by
Federal or State authority. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall

<Page>

                                                                              71

cease to be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

          Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.

          An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and, if other than the Company, to the Company.
The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and, if other than
the Company, to the Company. Upon receiving such a notice of resignation or upon
such a termination, or in case at any time such Authenticating Agent shall cease
to be eligible in accordance with the provisions of this Section, the Trustee,
with the approval of the Company, may appoint a successor Authenticating Agent
which shall be acceptable to the Company and shall mail written notice of such
appointment by first-class mail, postage prepaid, to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve, as
their names and addresses appear in the Security Register. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section.

          The Trustee agrees to pay to each Authenticating Agent (other than an
Authenticating Agent appointed at the request of the Company from time to time)
reasonable compensation for its services under this Section, and the Trustee
shall be entitled to be reimbursed for such payments, subject to the provisions
of Section 607.

<Page>

                                                                              72

          If an appointment with respect to one or more series is made pursuant
to this Section, the Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternate
certificate of authentication in the following form:

          This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

                                        Bank One, National
                                        Association,
                                        as Trustee

                                        By:
                                           -------------------------------------
                                            As Authenticating Agent

Dated:_______________
                                            By:
                                               ---------------------------------
                                               Authorized Signatory

                                 ARTICLE SEVEN

                      SECURITYHOLDERS' LISTS AND REPORTS BY
                         TRUSTEE, GUARANTOR AND COMPANY

          Section 701.  COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
SECURITYHOLDERS. The Company will furnish or cause to be furnished to the
Trustee

          (a)  semi-annually, not more than 30 days after each Regular Record
Date, in each year in such form as the Trustee may reasonably require, a list of
the names and addresses of the Holders of Securities of such series as of such
date, and

          (b)  at such other times as the Trustee may request in writing, within
30 days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 30 days prior to the time such list
is furnished,

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

<Page>

                                                                              73

          Section 702.  PRESERVATION OF INFORMATION; COMMUNICATIONS TO
SECURITYHOLDERS. (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders of Securities
contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders of Securities received by the
Trustee in its capacity as Security Registrar. The Trustee may destroy any list
furnished to it as provided in Section 701 upon receipt of a new list so
furnished.

          (b)  If 3 or more Holders of Securities of any series (hereinafter
referred to as "applicants") apply in writing to the Trustee, and furnish to the
Trustee reasonable proof that each such applicant has owned a Security of such
series for a period of at least 6 months preceding the date of such application,
and such application states that the applicants desire to communicate with other
Holders of Securities of such series or with the Holders of all Securities with
respect to their rights under this Indenture or under such Securities and is
accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall, within 5 Business Days
after the receipt of such application, at its election, either

                (i) afford such applicants access to the information preserved
       at the time by the Trustee in accordance with Section 702(a), or

               (ii) inform such applicants as to the approximate number of
       Holders of Securities of such series or all Securities, as the case may
       be, whose names and addresses appear in the information preserved at the
       time by the Trustee in accordance with Section 702(a), and as to the
       approximate cost of mailing to such Securityholders the form of proxy or
       other communication, if any, specified in such application.

          If the Trustee shall elect not to afford such applicants access to
such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder of a Security of such series or to all
Securityholders, as the case may be, whose names and addresses appear in the
information preserved at the time by the Trustee in accordance with Section
702(a), a copy of the form of proxy or other communication which is specified

<Page>

                                                                              74

in such request, with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing, unless, within 5 days after such tender, the
Trustee shall mail to such applicants and file with the Commission, together
with a copy of the material to be mailed, a written statement to the effect
that, in the opinion of the Trustee, such mailing would be contrary to the best
interests of the Holders of Securities of such series or all Securityholders, as
the case may be, or would be in violation of applicable law. Such written
statement shall specify the basis of such opinion. If the Commission, after
opportunity for a hearing upon the objections specified in the written statement
so filed, shall enter an order refusing to sustain any of such objections or if,
after the entry of an order sustaining one or more of such objections, the
Commission shall find, after notice and opportunity for hearing, that all the
objections so sustained have been met and shall enter an order so declaring, the
Trustee shall mail copies of such material to all Securityholders of such series
or all Securityholders, as the case may be, with reasonable promptness after the
entry of such order and the renewal of such tender; otherwise the Trustee shall
be relieved of any obligation or duty to such applicants respecting their
application.

          (c)  Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
shall be held accountable by reason of the disclosure of any such information as
to the names and addresses of the Holders of Securities in accordance with
Section 702(b), regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 702(b).

          Section 703.  REPORTS BY TRUSTEE. (a) The term "reporting date" as
used in this Section means May 15 of each year. Within 60 days after the
reporting date in each year, beginning in 2004, the Trustee shall transmit by
mail to all Securityholders, as their names and addresses appear in the Security
Register, a brief report dated as of such reporting date with respect to any of
the following events which may have occurred during the 12 months preceding the

<Page>

                                                                              75

date of such report (but if no such event has occurred within such period no
report need be transmitted):

          (1)  any change to its eligibility under Section 609 and its
     qualifications under Section 608;

          (2)  the creation of or any material change to a relationship
     specified in Section 310(b)(1) through Section 310(b)(10) of the Trust
     Indenture Act;

          (3)  the character and amount of any advances (and if the Trustee
     elects so to state, the circumstances surrounding the making thereof) made
     by the Trustee (as such) which remain unpaid on the date of such report,
     and for the reimbursement of which it claims or may claim a lien or charge,
     prior to that of Securities of any series, on any property or funds held or
     collected by it as Trustee, except that the Trustee shall not be required
     (but may elect) to report such advances if such advances so remaining
     unpaid aggregate not more than 1/2 of 1% of the principal amount of the
     Securities of such series outstanding on the date of such report;

          (4)  any change to the amount, interest rate and maturity date of all
     other indebtedness owing by the Company (or by any other obligor on the
     Securities) to the Trustee in its individual capacity, on the date of such
     report, with a brief description of any property held as collateral
     security therefor, except an indebtedness based upon a creditor
     relationship arising in a manner described in Section 613(b)(2), (3), (4)
     or (6);

          (5)  any change to the property and funds, if any, physically in the
     possession of the Trustee as such on the date of such report;

          (6)  any additional issue of Securities which the Trustee has not
     previously reported; and

          (7)  any action taken by the Trustee in the performance of its duties
     hereunder which it has not previously reported and which in its opinion
     materially affects the Securities, except action in respect of a default,
     notice of which has been or is to be withheld by the Trustee in accordance
     with Section 602.

<Page>

                                                                              76

          (b)  The Trustee shall transmit by mail to all Securityholders, as
their names and addresses appear in the Security Register, a brief report with
respect to the character and amount of any advances (and if the Trustee elects
so to state, the circumstances surrounding the making thereof) made by the
Trustee (as such) since the date of the last report transmitted pursuant to
Subsection (a) of this Section (or if no such report has yet been so
transmitted, since the date of execution of this instrument) for the
reimbursement of which it claims or may claim a lien or charge, prior to that of
the Securities of any series, on property or funds held or collected by it as
Trustee, and which it has not previously reported pursuant to this Subsection,
except that the Trustee shall not be required (but may elect) to report such
advances if such advances remaining unpaid at any time aggregate 1/2 of 1% or
less of the principal amount of the Securities Outstanding of such series at
such time, such report to be transmitted within 90 days after such time.

          (c)  A copy of each such report shall, at the time of such
transmission to Securityholders, be filed by the Trustee with each stock
exchange upon which the Securities are listed, and also with the Commission. The
Company will notify the Trustee when the Securities are listed on any stock
exchange.

          Section 704.  REPORTS BY COMPANY AND GUARANTOR. The Company and the
Guarantor each will:

          (1)  file with the Trustee, within 30 days after the Company or the
     Guarantor is required to file the same with the Commission, copies of the
     annual reports and of the information, documents and other reports (or
     copies of such portions of any of the foregoing as the Commission may from
     time to time by rules and regulations prescribe) which the Company or the
     Guarantor may be required to file with the Commission pursuant to Section
     13 or Section 15(d) of the Securities Exchange Act of 1934; or, if neither
     the Company nor the Guarantor is required to file information, documents or
     reports pursuant to either of said Sections, then the Guarantor will file
     with the Trustee and the Commission, in accordance with rules and
     regulations prescribed from time to time by the Commission, such of the
     supplementary and periodic information, documents and reports which may be
     required pursuant to Section 13 of the Securities

<Page>

                                                                              77

     Exchange Act of 1934 in respect of a security listed and registered on a
     national securities exchange as may be prescribed from time to time in such
     rules and regulations;

          (2)  file with the Trustee and the Commission, in accordance with
     rules and regulations prescribed from time to time by the Commission, such
     additional information, documents and reports with respect to compliance by
     the Company or the Guarantor with the conditions and covenants of this
     Indenture as may be required from time to time by such rules and
     regulations; and

          (3)  transmit by mail to all Securityholders, as their names and
     addresses appear in the Security Register, within 30 days after the filing
     thereof with the Trustee, such summaries of any information, documents and
     reports required to be filed by the Company or the Guarantor pursuant to
     paragraphs (1) and (2) of this Section as may be required by rules and
     regulations prescribed from time to time by the Commission.

                                 ARTICLE EIGHT

                      CONSOLIDATION, AMALGAMATION, MERGER,
                             CONVEYANCE OR TRANSFER

          Section 801.  COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.
The Company shall not consolidate or amalgamate with or merge into any other
Person or convey or transfer its properties and assets substantially as an
entirety to any Person, unless:

          (1)  the Person formed by such consolidation or amalgamation or into
     which the Company is merged or the Person which acquires by conveyance or
     transfer the properties and assets of the Company substantially as an
     entirety shall be a corporation or limited liability company organized and
     existing under the laws of the United States of America, any State thereof,
     the District of Columbia or Bermuda, and shall expressly assume, by an
     indenture supplemental hereto, executed by the successor Person and the
     Guarantor and delivered to the Trustee, in form satisfactory to the
     Trustee, the due and punctual payment of the principal of (and premium, if
     any) and

<Page>

                                                                              78

     interest on all the Securities and the performance of every covenant of
     this Indenture on the part of the Company to be performed or observed;

          (2)  immediately after giving effect to such transaction, no Event of
     Default, and no event which, after notice or lapse of time, or both, would
     become an Event of Default, shall have happened and be continuing; and

          (3)  either the Company or the successor Person has delivered to the
     Trustee an Officers' Certificate and an Opinion of Counsel each stating
     that such consolidation, amalgamation, merger, conveyance or transfer and
     such supplemental indenture comply with this Article and that all
     conditions precedent herein provided for relating to such transaction have
     been complied with.

          Section 802.  SUCCESSOR PERSON SUBSTITUTED FOR COMPANY. Upon any
consolidation, amalgamation or merger, or any conveyance or transfer of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, the successor Person formed by such consolidation or
amalgamation or into which the Company is merged or to which such conveyance or
transfer is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect
as if such successor Person had been named as the Company herein. In the event
of any such conveyance or transfer, the Company as the predecessor corporation
may be dissolved, wound up or liquidated at any time thereafter.

          Section 803.  SUCCESSOR PERSON SUBSTITUTED FOR GUARANTOR. Upon any
consolidation, amalgamation or merger, or any conveyance or transfer of the
properties and assets of the Guarantor substantially as an entirety, whether or
not such event gives rise to an Event of Default under Section 501(5), the
successor Person formed by such consolidation or amalgamation or into which the
Guarantor is merged or to which such conveyance or transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Guarantor under this Indenture with the same effect as if such successor
Person had been named as the Guarantor herein. In the event of any such
conveyance or transfer, the Guarantor as the

<Page>

                                                                              79

predecessor corporation may be dissolved, wound up or liquidated at any time
thereafter.

                                  ARTICLE NINE

                            SUPPLEMENTAL INDENTURES

          Section 901.  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
SECURITYHOLDERS. Without the consent of the Holders of any Securities, the
Company, when authorized by a Board Resolution, the Guarantor, when authorized
by a Guarantor's Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

          (1)  to evidence the succession of another Person to the Company or
     the Guarantor, and the assumption by any such successor of the covenants of
     the Company or the Guarantor herein and in the Securities contained; or

          (2)  to add to the covenants of the Company or the Guarantor, or to
     surrender any right or power herein conferred upon the Company or the
     Guarantor, for the benefit of the Holders of the Securities of any or all
     series (and if such covenants or the surrender of such right or power are
     to be for the benefit of less than all series of Securities, stating that
     such covenants are expressly being included or such surrenders are
     expressly being made solely for the benefit of one or more specified
     series); or

          (3)  to cure any ambiguity, to correct or supplement any provision
     herein which may be inconsistent with any other provision herein, or to
     make any other provisions with respect to matters or questions arising
     under this Indenture; or

          (4)  to add to this Indenture such provisions as may be expressly
     permitted by the TIA, excluding, however, the provisions referred to in
     Section 316(a)(2) of the TIA as in effect at the date as of which this
     instrument was executed or any corresponding provision in any similar
     Federal statute hereafter enacted; or

<Page>

                                                                              80

          (5)  to establish any form of Security, as provided in Article Two,
     and to provide for the issuance of any series of Securities as provided in
     Article Three and to set forth the terms thereof, and/or to add to the
     rights of the Holders of the Securities of any series; or

          (6)  to evidence and provide for the acceptance of appointment by
     another corporation as a successor Trustee hereunder with respect to one or
     more series of Securities and to add to or change any of the provisions of
     this Indenture as shall be necessary to provide for or facilitate the
     administration of the trusts hereunder by more than one Trustee, pursuant
     to Section 611; or

          (7)  to add any additional Events of Default in respect of the
     Securities of any or all series (and if such additional Events of Default
     are to be in respect of less than all series of Securities, stating that
     such Events of Default are expressly being included solely for the benefit
     of one or more specified series); or

          (8)  to provide for the issuance of Securities in coupon as well as
     fully registered form.

          No supplemental indenture for the purposes identified in Clauses (2),
(3), (5) or (7) above may be entered into if to do so would adversely affect the
interest of the Holders of Securities of any series.

          Section 902.  SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS.
With the consent of the Holders of not less than a majority in principal amount
of the Outstanding Securities of each series affected by such supplemental
indenture or indentures, by Act of said Holders delivered to the Company, the
Guarantor and the Trustee, the Company, when authorized by a Board Resolution,
the Guarantor, when authorized by a Guarantor's Board Resolution, and the
Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of modifying in any manner the rights of
the Holders of the Securities of each such series under this Indenture;
PROVIDED, HOWEVER, that no such supplemental indenture

<Page>

                                                                              81

shall, without the consent of the Holder of each Outstanding Security affected
thereby,

          (1)  change the Maturity of the principal of, or the Stated Maturity
     of any premium on, or any installment of interest on, any Security, or
     reduce the principal amount thereof or the interest or any premium thereon,
     or change the method of computing the amount of principal thereof or
     interest thereon on any date or change any Place of Payment where, or the
     coin or currency in which, any Security or any premium or interest thereon
     is payable, or impair the right to institute suit for the enforcement of
     any such payment on or after the Maturity or the Stated Maturity, as the
     case may be, thereof (or, in the case of redemption or repayment, on or
     after the Redemption Date or the Repayment Date, as the case may be); or

          (2)  reduce the percentage in principal amount of the Outstanding
     Securities of any series, the consent of whose Holders is required for any
     such supplemental indenture, or the consent of whose Holders is required
     for any waiver of compliance with certain provisions of this Indenture or
     certain defaults hereunder and their consequences, provided for in this
     Indenture; or

          (3)  modify any of the provisions of this Section or Section 513,
     except to increase any such percentage or to provide that certain other
     provisions of this Indenture cannot be modified or waived without the
     consent of the Holder of each Outstanding Security affected thereby.

          A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular series of Securities, or which modifies
the rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

          It shall not be necessary for any Act of Securityholders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.

<Page>

                                                                              82

          Section 903.  EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Section
601) shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not (except to the extent required in
the case of a supplemental indenture entered into under Section 901(4) or
901(6)) be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.

          Section 904.  EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution of
any supplemental indenture under this Article, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby to the
extent provided therein.

          Section 905.  CONFORMITY WITH TRUST INDENTURE ACT. Every supplemental
indenture executed pursuant to this Article shall conform to the requirements of
the TIA as then in effect.

          Section 906.  REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.
Securities authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities
so modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities.

<Page>

                                                                              83

                                  ARTICLE TEN

                                   COVENANTS

          Section 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST. With
respect to each series of Securities, the Company will duly and punctually pay
the principal of (and premium, if any) and interest on such Securities in
accordance with their terms and this Indenture, and will duly comply with all
the other terms, agreements and conditions contained in, or made in the
Indenture for the benefit of, the Securities of such series.

          Section 1002. MAINTENANCE OF OFFICE OR AGENCY. The Company will
maintain an office or agency in each Place of Payment where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities and this Indenture may be served. The Company will
give prompt written notice to the Trustee of the location, and of any change in
the location, of such office or agency. If at any time the Company shall fail to
maintain such office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the principal Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee its agent to receive all such presentations,
surrenders, notices and demands.

          The Guarantor will maintain an office or agency in each Place of
Payment where Securities to which the Guarantee applies may be presented or
surrendered for payment pursuant to the Guarantee and where notices and demands
to or upon the Guarantor in respect of the Guarantee and this Indenture may be
served. The Guarantor will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Guarantor shall fail to maintain any such office or agency or shall
fail to furnish the Trustee with the address thereof, such presentations,
surrenders and demands may be made or served at the Principal Corporate Trust
Office of the Trustee, and the Guarantor hereby appoints the Trustee as its
agent to receive all such presentations, surrenders and demands.

          Section 1003. MONEY FOR SECURITY PAYMENTS TO BE HELD IN TRUST. If the
Company shall at any time act as its

<Page>

                                                                              84

own Paying Agent for any series of Securities, it will, on or before each due
date of the principal of (and premium, if any) or interest on, any of the
Securities of such series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal (and premium, if
any) or interest so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided, and will promptly notify the
Trustee of its action or failure to act.

          Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, on or prior to each due date of the principal of
(and premium, if any) or interest on, any Securities of such series, deposit
with a Paying Agent a sum sufficient to pay the principal (and premium, if any)
or interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal (and premium, if any) or interest, and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

          The Company will cause each Paying Agent other than the Trustee for
any series of Securities to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will

          (1)  hold all sums held by it for the payment of principal of (and
     premium, if any) or interest on Securities of such series in trust for the
     benefit of the Persons entitled thereto until such sums shall be paid to
     such Persons or otherwise disposed of as herein provided;

          (2)  give the Trustee notice of any default by the Company (or any
     other obligor upon the Securities of such series) in the making of any such
     payment of principal (and premium, if any) or interest on the Securities of
     such series; and

          (3)  at any time during the continuance of any such default, upon the
     written request of the Trustee, forthwith pay to the Trustee all sums so
     held in trust by such Paying Agent.

          The Company or the Guarantor may at any time, for the purpose of
obtaining the satisfaction and discharge of

<Page>

                                                                              85

this Indenture with respect to any series of Securities or for any other
purpose, pay, or by Company Order or Guarantor Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company, the Guarantor or such
Paying Agent in respect of each and every series of Securities as to which it
seeks to discharge this Indenture or, if for any other purpose, all sums so held
in trust by the Company or the Guarantor in respect of all Securities, such sums
to be held by the Trustee upon the same trusts as those upon which such sums
were held by the Company, the Guarantor or such Paying Agent; and, upon such
payment by any Paying Agent to the Trustee, such Paying Agent shall be released
from all further liability with respect to such money.

          Any money deposited with the Trustee or any Paying Agent, or then held
by the Company or the Guarantor, in trust for the payment of the principal of
(and premium, if any) or interest on any Security of any series and remaining
unclaimed for two years after such principal (and premium, if any) or interest
has become due and payable shall be paid to the Company on Company Request (or
if deposited by the Guarantor, paid to the Guarantor upon Guarantor Request), or
(if then held by the Company or the Guarantor) shall be discharged from such
trust; and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company and the Guarantor for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease. The Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company and the Guarantor mail to the
Holders of the Securities as to which the money to be repaid was held in trust,
as their names and addresses appear in the Security Register, a notice that such
moneys remain unclaimed and that, after a date specified in the notice, which
shall not be less than 30 days from the date on which the notice was first
mailed to the Holders of the Securities as to which the money to be repaid was
held in trust, any unclaimed balance of such moneys then remaining will be paid
to the Company or the Guarantor, as the case may be, free of the trust formerly
impressed upon it.

          The Company initially authorizes the Trustee to act as Paying Agent
for the Securities on its behalf. The Company may at any time and from time to
time authorize one

<Page>

                                                                              86

or more Persons to act as Paying Agent in addition to or in place of the Trustee
with respect to any series of Securities issued under this Indenture.

          Section 1004. STATEMENT AS TO COMPLIANCE. The Company and the
Guarantor each will deliver to the Trustee, within 120 days after the end of
each fiscal year, a written statement signed by the principal executive officer,
principal financial officer or principal accounting officer of the Company or
the Guarantor, as the case may be, stating that

          (1)  a review of the activities of the Company or the Guarantor, as
     the case may be, during such year and of its performance under this
     Indenture and under the terms of the Securities has been made under his
     supervision; and

          (2)  to the best of his knowledge, based on such review, the Company
     or the Guarantor, as the case may be, has complied with all conditions and
     covenants under this Indenture through such year, or, if there has been a
     default in the fulfillment of any such obligation, specifying each such
     default known to him and the nature and status thereof.

          For purposes of this Section 1004, compliance shall be determined
without regard to any grace period or requirement of notice provided pursuant to
the terms of this Indenture.

          Section 1005. CORPORATE EXISTENCE. Subject to Article Eight each of
the Company and the Guarantor will do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence.

          Section 1006. LIMITATION ON LIENS. So long as any Securities are
Outstanding, neither the Company nor the Guarantor will, nor will it permit any
of its respective Subsidiaries to create, assume, incur or suffer to exist (i)
any Lien upon any stock or indebtedness of any Subsidiary, whether owned on the
date of this Indenture or hereafter acquired, to secure any Debt of the Company,
the Guarantor or any other Person (other than the Securities), and (ii) any Lien
upon any other Property, whether owned or leased on the date of this Indenture,
or thereafter acquired, to secure any Debt of the Company, the Guarantor or any
other person (other than the Securities) without in

<Page>

                                                                              87

any such case making effective provision whereby all of the Securities
Outstanding shall be directly secured equally and ratably with such Debt,
excluding, however, from the operation of the foregoing provisions of this
Section 1006 any Lien existing on the date of this Indenture or any Lien upon
stock or indebtedness or other Property of any Person existing at the time such
Person becomes a Subsidiary, or existing upon stock or indebtedness of a
Subsidiary or any other Property at the time of acquisition of such stock or
indebtedness or other Property, and any extension, renewal or replacement (or
successive extensions, renewals or replacements) in whole or in part of any such
Lien; PROVIDED, however, that the principal amount of Debt secured thereby shall
not exceed the principal amount of Debt so secured at the time of such
extension, renewal or replacement; and PROVIDED further, that such Lien shall be
limited to all or such part of the stock or indebtedness or other Property which
secured the Lien so extended, renewed or replaced.

          Notwithstanding the foregoing, each of the Company and the Guarantor
may, and may permit any Subsidiary to, create, assume, incur or suffer to exist
(i) any Permitted Liens and (ii) any Lien upon any Property without equally and
ratably securing the Securities if the aggregate amount of all Debt then
outstanding secured by such Lien and all similar Liens does not exceed 15% of
the total consolidated stockholders' equity (including preferred stock) of the
Guarantor as shown on the audited consolidated balance sheet contained in the
latest annual report to stockholders of the Guarantor; PROVIDED that Debt
secured by Permitted Liens shall not be included in the amount of such secured
Debt.

          Section 1007. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS. So long
as any Securities are Outstanding neither the Company nor the Guarantor will,
nor will it permit any of its respective Subsidiaries to, enter into any
arrangement with any Person pursuant to which the Company, the Guarantor or any
Subsidiary leases any Property that has been or is to be sold or transferred by
the Company, the Guarantor or the Subsidiary to such Person (a "sale and
leaseback transaction") unless (i) the Company, the Guarantor or such Subsidiary
would be entitled to secure the Property to be leased (without equally and
ratably securing the Securities Outstanding) in an amount equal to the present
value of the lease payments with

<Page>

                                                                              88

respect to the term of the lease remaining on the date as of which the amount is
being determined under the provisions described in Section 1006; (ii) the lease
is for a term, including renewals at the option of the lessee, of not more than
five years; (iii) the lease is between the Company, the Guarantor or a
Subsidiary or between Subsidiaries; and (iv) the lease is of Property executed
by the time of, or within 12 months after the latest of, the acquisition, the
completion of construction or improvement, or the commencement of commercial
operation of the Property.

          Section 1008. WAIVER OF CERTAIN COVENANTS. The Company or the
Guarantor or both may omit in respect of any series of Securities, in any
particular instance, to comply with any covenant or condition set forth in
Section 1006, if before or after the time for such compliance the Holders of at
least a majority in principal amount of the Securities at the time Outstanding
of such series shall, by Act of such Securityholders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the Guarantor and the
duties of the Trustee in respect of any such covenant or condition shall remain
in full force and effect.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

          Section 1101. APPLICABILITY OF ARTICLE. The Company may reserve the
right to redeem and pay before Stated Maturity all or any part of the Securities
of any series, either by optional redemption, sinking or purchase fund or
analogous obligation or otherwise, by provision therefor in the form of Security
for such series established and approved pursuant to Section 202 and on such
terms as are specified in such form or in the Board Resolution or indenture
supplemental hereto with respect to Securities of such series as provided in
Section 301. Redemption of Securities of any series shall be made in accordance
with the terms of such Securities and, to the extent that this Article does not
conflict with such terms, the succeeding Sections of this Article.

<Page>

                                                                              89

          Section 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE. The election of
the Company to redeem any Securities redeemable at the election of the Company
shall be evidenced by, or made pursuant to authority granted by, a Board
Resolution. In case of any redemption at the election of the Company of any
Securities of any series, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to be redeemed.

          In the case of any redemption of Securities (i) prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, or (ii) pursuant to an election of
the Company which is subject to a condition specified in the terms of such
Securities, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction or condition.

          Section 1103. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED. If
less than all the Securities of like tenor and terms of any series are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may include provision
for the selection for redemption of portions of the principal of Securities of
such series of a denomination larger than the minimum authorized denomination
for Securities of that series. Unless otherwise provided in the terms of a
particular series of Securities, the portions of the principal of Securities so
selected for partial redemption shall be equal to the minimum authorized
denomination of the Securities of such series, or an integral multiple thereof,
and the principal amount which remains outstanding shall not be less than the
minimum authorized denomination for Securities of such series. If less than all
the Securities of unlike tenor and terms of a series are to be redeemed, the
particular Securities to be redeemed shall be selected by the Company.

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

<Page>

                                                                              90

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

          Section 1104. NOTICE OF REDEMPTION. Notice of redemption shall be
given by first-class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date, to each holder of Securities to be
redeemed, at his address appearing in the Security Register.

          All notices of redemption shall state:

          (1)  the Redemption Date;

          (2)  the Redemption Price;

          (3)  if less than all Outstanding Securities of any series are to be
     redeemed, the identification, including CUSIP Numbers (and, in the case of
     partial redemption, the respective principal amounts) of the Securities to
     be redeemed, from the Holder to whom the notice is given;

          (4)  that on the Redemption Date the Redemption Price will become due
     and payable upon each such Security, and that interest, if any, thereon
     shall cease to accrue from and after said date;

          (5)  the place where such Securities are to be surrendered for payment
     of the Redemption Price, which shall be the office or agency of the Company
     in the Place of Payment; and

          (6)  that the redemption is on account of a sinking or purchase fund,
     or other analogous obligation, if that be the case.

          Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company. Such notice shall be
deemed to have been given to each Holder if sent in accordance with Section 105
hereof.

<Page>

                                                                              91

          Section 1105. DEPOSIT OF REDEMPTION PRICE. On or prior to 10:00 a.m.
on any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 1003) an amount of money sufficient to
pay the Redemption Price of all the Securities which are to be redeemed on that
date.

          Section 1106. SECURITIES PAYABLE ON REDEMPTION DATE. Notice of
Redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified and from and after such date (unless the Company shall default
in the payment of the Redemption Price) such Securities shall cease to bear
interest. Upon surrender of such Securities for redemption in accordance with
the notice, such Securities shall be paid by the Company at the Redemption
Price. Installments of interest the Stated Maturity of which is on or prior to
the Redemption Date shall be payable to the Holders of such Securities
registered as such on the relevant Regular Record Dates according to their terms
and the provisions of Section 307.

          If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid, bear interest
from the Redemption Date at the rate borne by the Security, or as otherwise
provided in such Security.

          Section 1107. SECURITIES REDEEMED IN PART. Any Security which is to
be redeemed only in part shall be surrendered at the office or agency of the
Company in the Place of Payment with respect to that series (with, if the
Company or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security without service charge, a new Security or Securities of
the same series and Stated Maturity and of like tenor and terms, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

<Page>

                                                                              92

          Section 1108. PROVISIONS WITH RESPECT TO ANY SINKING FUNDS. Unless
the form or terms of any series of Securities shall provide otherwise, in lieu
of making all or any part of any mandatory sinking fund payment with respect to
such series of Securities in cash, the Company may at its option (1) deliver to
the Trustee for cancellation any Securities of such series theretofore acquired
by the Company, or (2) receive credit for any Securities of such series (not
previously so credited) acquired by the Company and theretofore delivered to the
Trustee for cancellation or redeemed by the Company other than through the
mandatory sinking fund, and if it does so then (i) Securities so delivered or
credited shall be credited at the applicable sinking fund Redemption Price with
respect to Securities of such series, and (ii) on or before the 60th day next
preceding each sinking fund Redemption Date with respect to such series of
Securities, the Company will deliver to the Trustee (A) an Officers' Certificate
specifying the portions of such sinking fund payment to be satisfied by payment
of cash and by delivery or credit of Securities of such series acquired by the
Company or so redeemed, and (B) such Securities so acquired, to the extent not
previously surrendered. Such Officers' Certificate shall also state the basis
for such credit and that the Securities for which the Company elects to receive
credit have not been previously so credited and were not redeemed by the Company
through operation of the mandatory sinking fund, if any, provided with respect
to such Securities and shall also state that no Event of Default with respect to
Securities of such series has occurred and is continuing. All Securities so
delivered to the Trustee shall be canceled by the Trustee and no Securities
shall be authenticated in lieu thereof.

          If the sinking fund payment or payments (mandatory or optional) with
respect to any series of Securities made in cash plus any unused balance of any
preceding sinking fund payments with respect to Securities of such series made
in cash shall exceed $50,000 (or a lesser sum if the Company shall so request),
unless otherwise provided by the terms of such series of Securities, that cash
shall be applied by the Trustee on the sinking fund Redemption Date with respect
to Securities of such series next following the date of such payment to the
redemption of Securities of such series at the applicable sinking fund
Redemption Price with respect to Securities of such series, together with
accrued interest,

<Page>

                                                                              93

if any, to the date fixed for redemption, with the effect provided in Section
1106. The Trustee shall select, in the manner provided in Section 1103, for
redemption on such sinking fund Redemption Date a sufficient principal amount of
Securities of such series to utilize that cash and shall thereupon cause notice
of redemption of the Securities of such series for the sinking fund to be given
in the manner provided in Section 1104 (and with the effect provided in Section
1106) for the redemption of Securities in part at the option of the Company. Any
sinking fund moneys not so applied or allocated by the Trustee to the redemption
of Securities of such series shall be added to the next cash sinking fund
payment with respect to Securities of such series received by the Trustee and,
together with such payment, shall be applied in accordance with the provisions
of this Section 1108. Any and all sinking fund moneys with respect to Securities
of any series held by the Trustee at the Maturity of Securities of such series,
and not held for the payment or redemption of particular Securities of such
series, shall be applied by the Trustee, together with other moneys, if
necessary, to be deposited sufficient for the purpose, to the payment of the
principal of the Securities of such series at Maturity.

          On or before each sinking fund Redemption Date provided with respect
to Securities of any series, the Company shall pay to the Trustee in cash a sum
equal to all accrued interest, if any, to the date fixed for redemption on
Securities to be redeemed on such sinking fund Redemption Date pursuant to this
Section 1108.

                                 ARTICLE TWELVE

                            GUARANTEE OF SECURITIES

          Section 1201. GUARANTEE. The Guarantor hereby fully and
unconditionally guarantees to each Holder of a Security of each series issued by
the Company, authenticated and delivered by the Trustee, the due and punctual
payment of the principal (including any amount due in respect of any Original
Issue Discount Security) of and any premium and interest on such Security, and
the due and punctual payment of any sinking fund payments provided for pursuant
to the terms of such Security, when and as the same shall become due and
payable, whether at the Stated Maturity, by declaration of acceleration, call
for redemption, early repayment or otherwise, in accordance with the terms of
such Security and this Indenture. The

<Page>

                                                                              94

Guarantor hereby agrees that in the event of an Event of Default its obligations
hereunder shall be as if it were a principal debtor and not merely a surety, and
shall be absolute and unconditional, irrespective of, and shall be unaffected
by, any invalidity, irregularity or unenforceability of any Security of any
series or this Indenture, any failure to enforce the provisions of any Security
of any series or this Indenture, any waiver, modification or indulgence granted
to the Company with respect thereto by the Holder of any Security of any series
or the Trustee, or any other circumstances which may otherwise constitute a
legal or equitable discharge of a surety or guarantor; provided, however, that,
notwithstanding the foregoing, no such waiver, modification or indulgence shall,
without the consent of the Guarantor, increase the principal amount of any
Security or the interest rate thereon or increase any premium payable upon
redemption thereof. The Guarantor hereby waives diligence, presentment, demand
of payment, filing of claims with a court in the event of merger or bankruptcy
of the Company, any right to require a proceeding first against the Company, the
benefit of discussion, protest or notice with respect to any Security or the
indebtedness evidenced thereby or with respect to any sinking fund payment
required pursuant to the terms of such Security issued under this Indenture and
all demands whatsoever, and covenants that this Guarantee will not be discharged
with respect to such Security except by payment in full of the principal thereof
and any premium and interest thereon or as provided in Article Four or Section
802. If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantor, or any custodian, trustee, liquidator or
other similar official acting in relation to the Company or the Guarantor any
amount paid by the Company or the Guarantor to the Trustee or such Holder, this
Guarantee to the extent theretofore discharged, shall be reinstated in full
force and effect. The Guarantor further agrees that, as between the Guarantor,
on the one hand, and the Holders and the Trustee, on the other hand, the
Maturity of the obligations guaranteed hereby may be accelerated as provided in
Article Five hereof for the purposes of this Guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect of
the obligations guaranteed hereby.

<Page>

                                                                              95

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

          The Guarantor hereby waives any right of set off which the Guarantor
may have against the Holder of any Security in respect of any amounts which are
or may become payable by such Holder to the Company.

          The Guarantor shall be subrogated to all rights of the Holders of any
series of Securities and the Trustee against the Company in respect of any
amounts paid to such Holders and the Trustee by the Guarantor pursuant to the
provisions of the Guarantee; provided, however, that the Guarantor shall not be
entitled to enforce or to receive any payments arising out of or based upon,
such right of subrogation until the principal of, premium, if any, and interest,
if any, on all of the Securities of such series shall have been paid in full.

          No past, present or future stockholder, officer, director, employee or
incorporator of the Guarantor shall have any personal liability under the
Guarantees set forth in this Section 1201 by reason of his, her or its status as
such stockholder, officer, director, employee or incorporator.

          The Guarantee set forth in this Section 1201 shall not be valid or
become obligatory for any purpose with respect to any Security until the
certificate of authentication on such Security shall have been signed by or on
behalf of the Trustee.

          Section 1202. EXECUTION OF NOTATIONS OF GUARANTEE. To evidence its
Guarantee to the Holders specified in Section 1201, the Guarantor hereby agrees
to execute the notation of the Guarantee in substantially the form set forth in
Section 205 to be endorsed on each Security authenticated and delivered by the
Trustee. The Guarantor hereby agrees that its Guarantee set forth in Section
1201 shall remain in full force and effect notwithstanding any failure to
endorse on any Security a notation of such Guarantee. Each such notation of
Guarantee shall be signed on behalf of the Guarantor by any proper officer of
the Guarantor prior to the authentication of the Security on which it is
endorsed, and the delivery of such Security by the Trustee, after the due

<Page>

                                                                              96

authentication thereof by the Trustee hereunder, shall constitute due delivery
of the Guarantee on behalf of the Guarantor. Such signatures upon the notation
of the Guarantee may be manual or facsimile signatures of any present, past or
future proper officer of the Guarantor and may be imprinted or otherwise
reproduced below the notation of the Guarantee, and in case any such proper
officer of the Guarantor who shall have signed the notation of the Guarantee
shall cease to be such officer before the Security on which such notation is
endorsed shall have been authenticated and delivered by the Trustee or disposed
of by the Company, such Security nevertheless may be authenticated and delivered
or disposed of as though the person who signed the notation of the Guarantee had
not ceased to be such officer of the Guarantor.

<Page>

                                                                              97

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, all as of the day and year first above written.

                                        WHITE MOUNTAINS INSURANCE GROUP, LTD.

                                        by
                                            /s/ Dennis Beaulieu
                                            ------------------------------
                                            Name: Dennis Beaulieu
                                            Title: Secretary

                                        FUND AMERICAN COMPANIES, INC.,

                                        by
                                            /s/ Kernan V. Oberting
                                            ------------------------------
                                            Name: Kernan V. Oberting
                                            Title: Vice President

                                        BANK ONE, NATIONAL ASSOCIATION

                                        by
                                            /s/ Mary R. Fonti
                                            ------------------------------
                                            Name: Mary R. Fonti
                                            Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]