Document:

Exhibit 4.1

                               Dated 19 April 2002
                        ---------------------------------

                        CORDIANT COMMUNICATIONS GROUP PLC
                                   and others

                                   Arranged by
                               THE BANK OF NEW YORK
                                       and
                             HSBC INVESTMENT BANK PLC

                                      Agent
                             HSBC INVESTMENT BANK PLC

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

                               Restructuring Deed
                                  relating to a
                                 LOAN AGREEMENT
                                dated 4 July 2000

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

                                   Norton Rose
<PAGE>

                                    Contents

Clause                                                                      Page

Interpretation ................................................................1
Amendments to the Principal Agreement .........................................2
Amendment to the Security Trust Deed ..........................................2
Accession of Additional Overdraft Borrowers ...................................2
Accession of Common Security Trustee ..........................................2
Representations and Warranties in Principal Agreement .........................2
Fees and Expenses .............................................................3
Restructuring Date ............................................................3
Waivers .......................................................................4
Miscellaneous .................................................................4
Governing Law and jurisdiction ................................................5

Schedules
Schedule 1 The Borrowers ......................................................6
Schedule 2 Guarantors .........................................................8
Schedule 3 Additional Overdraft Borrowers ....................................13
Schedule 4 Banks .............................................................16
Schedule 5 Documents and evidence required as
conditions precedent to the Restructuring Date .............................. 17
Schedule 6 The Amended and Restated Loan Agreement ...........................29

<PAGE>

THIS DEED is dated 19 April 2002 and made BETWEEN:

(1)  CORDIANT COMMUNICATIONS GROUP PLC as the Parent;

(2)  THE  COMPANIES  whose  names,  registered  numbers (if any) and  registered
     offices  are set out in part A of  Schedule I as  Original  Borrowers,  the
     company whose name,  registered  number (if any) and registered  office are
     set out in part B of Schedule 1 as the Swingline  Borrower,  the companies
     whose names, registered numbers (if any) and registered offices are set out
     in part C of Schedule I as the Overdraft Borrowers;

(3)  THE  COMPANIES  whose  names,  registered  numbers (if any) and  registered
     offices are set out in part A of Schedule 2 as the Original Guarantors;

(4)  THE  COMPANIES  whose  names,  registered  numbers (if any) and  registered
     offices are set out in part B of Schedule 2 as the Overdraft Guarantors;

(5)  THE  COMPANIES  whose  names,  registered  numbers (if any) and  registered
     offices are set out in Schedule 3 as the Additional Overdraft Borrowers;

(6)  THE BANK OF NEW YORK and HSBC INVESTMENT BANK PLC as Arrangers;

(7)  THE BANKS AND FINANCIAL  INSTITUTIONS whose names and addresses are set out
     in Schedule 4 as Banks;

(8)  HSBC INVESTMENT BANK PLC as Agent and Security  Trustee and Common Security
     Trustee;

(9)  THE BANK OF NEW YORK as the Swingline Bank; and

(10) HSBC BANK PLC as the Overdraft Bank.

WHEREAS:

(A)  This Deed is  supplemental  to an agreement  dated 4 July 2000 made between
     the parties hereto whereby the Banks agreed to make available to the Parent
     and the  Borrowers  facilities of up to  US$400,000,000  upon the terms and
     subject to the conditions therein contained (the "Principal Agreement") and
     to a deed dated 30 August 2000 made between the parties  hereto whereby the
     Security Trustee agreed to hold the benefit of certain  security  documents
     on trust for the named beneficiaries (the "Security Trust Deed").

(B)  The Parent has requested the Bank Finance  Parties to amend and restate the
     Principal  Agreement  and the  Security  Trust  Deed,  for  the  Additional
     Overdraft  Borrowers to become  Overdraft  Borrowers under the terms of the
     Principal  Agreement,  and for the Common Security Trustee to become Common
     Security Trustee under the terms of the Principal Agreement.

NOW IT IS AGREED as follows:

1    Interpretation

1.1  Definitions in Principal Agreement

     Unless the context  otherwise  requires and save as mentioned below,  words
     and expressions  defined in the Principal Agreement as amended and restated
     in Schedule 6 to this Deed shall have the same  meanings  when used in this
     Deed. In this Deed the expression the  "Restructuring  Date" shall have the
     meaning given to it in clause 8.1.

1.2  Interpretation of Principal Agreement

     References  in the  Principal  Agreement to "this  Agreement"  shall,  with
     effect  from  the  Restructuring  Date and  unless  the  context  otherwise
     requires, be references to the Principal

                                       1
<PAGE>

     Agreement" as amended by this Deed and words  such as  "herein",  "hereof",
     "hereunder",  "hereafter",  "hereby" and "hereto", where they appear in the
     Principal Agreement, shall be construed accordingly.

1.3  Incorporation of certain references

     Clauses 1.2, 1.3 and 1.4 of the Principal  Agreement  shall be deemed to be
     incorporated in this Deed in full, mutatis mutandis.

1.4  Effect as a Deed

     This Deed is  intended to take  effect as a deed  notwithstanding  that the
     Bank Finance  Parties or any other party hereto may have  executed it under
     hand only.

2    Amendments to the Principal Agreement

     The   Principal   Agreement   shall  be  amended,   with  effect  from  the
     Restructuring Date, to read as set out in Schedule 6 to this Deed.

3    Amendment to the Security Trust Deed

     With effect from the  Restructuring  Date,  the Security Trust Deed will be
     amended as follows:

     (a)  All references throughout the Security Trust Deed to "Finance Parties"
          shall be replaced with `Bank Finance Parties".

     (b)  Clause  1.1:  the  definition  of  "Collateral  Instruments"  shall be
          deleted.

     (c)  Clauses  6.2:  The  following  paragraph  shall be added at the end of
          clause 6.2: `The parties to the Deed  unconditionally  and irrevocably
          instruct  and  authorise  the  Security  Trustee to effect the second,
          third and fourth  applications above by paying the relevant amounts to
          the Common  Security  Trustee for  application in accordance  with the
          lntercreditor Agreement."

     (d)  Clause 11.3 (New Obligor  Entities):  clause 11.3 shall be deleted and
          replaced with the words  "[deleted as superseded by the  lntercreditor
          Agreement]".

4    Accession of Additional Overdraft Borrowers

     With effect  from the  Restructuring  Date,  the parties to this Deed agree
     that  each  Additional  Overdraft  Borrower  shall  become  a party  to the
     Principal  Agreement and an Overdraft  Borrower  thereunder and with effect
     from such date and in such capacity  shall assume  obligations  towards and
     rights against the other Borrowers,  the Agent, the Arrangers,  the Funders
     and the other parties to the Principal Agreement.

5    Accession of Common Security Trustee

     With effect  from the  Restructuring  Date,  the parties to this Deed agree
     that the Common  Security  Trustee  shall  become a party to the  Principal
     Agreement and with effect from such date and in such capacity  shall assume
     obligations  towards  and rights  against  the  Borrowers,  the Agent,  the
     Arrangers, the Funders and the other parties to the Principal Agreement.

6    Representations and Warranties in Principal Agreement

     Each  Borrower,  Additional  Overdraft  Borrower,  Original  Guarantor  and
     Overdraft Guarantor,  and the Parent,  represents and warrants to each Bank
     Finance Party that the  representations  and  warranties  set out in clause
     11.1 of the  Principal  Agreement  as amended and restated in Schedule 6 to
     this Deed are true and  correct  as if made at the date of this Deed and on
     the  Restructuring  Date with  reference  to the  facts  and  circumstances
     existing at such dates and as if  referring to the  Principal  Agreement as
     amended and restated by this Deed.

                                       2
<PAGE>

7    Fees and Expenses

7.1  Fees

     The Parent  shall pay for the account of such Bank  Finance  Parties as are
     entitled  thereto  such  fees as are set  out in the fee  letters  entitled
     "Co-ordination  Fee Letter",  "Agency and Transaction  Fee Letter",  "Banks
     Restructuring Fee Letter", "Swingline Bank Fee Letter" and "Common Security
     Trustee  Fee  Letter" and dated the same date as this Deed to the Parent in
     the amounts and on the terms and conditions set out in such fee letters.

7.2  Expenses

     The Parent shall pay to the Agent on demand all expenses  (including  legal
     fees)  incurred  by the  Agent and the  Arrangers  in  connection  with the
     negotiation,  preparation  and execution of the Bank Finance  Documents and
     the completion of the transactions  therein  contemplated and in connection
     with the  preparation and  distribution of the Information  Package and the
     granting of any waiver or consent under any of the Bank Finance  Documents,
     and all such expenses incurred shall by payable by the Parent even if there
     is no "Restructuring Date" as defined in clause 8.1.

7.3  Value Added Tax

     All fees  and  expenses  payable  pursuant  to this  clause 7 shall be paid
     together  with an amount  equal to any value  added tax and  similar  Taxes
     chargeable  thereon  and any  payment  made in respect of costs or expenses
     shall  include  an amount  equal to the amount of any  irrecoverable  value
     added tax and similar Taxes  suffered by the relevant Bank Finance  Parties
     in respect of such fees and expenses.

7.4  Stamp and other duties

     The Parent shall pay all stamp, documentary, registration,  notarisation or
     other similar duties or Taxes (including any duties or Taxes payable by, or
     assessed on, the Bank Finance Parties) imposed on or in connection with the
     negotiation,  preparation,  and  execution  of  any  of  the  Bank  Finance
     Documents  and  shall  indemnify  the  Bank  Finance  Parties  against  any
     liability  arising by reason of any delay or  omission by the Parent to pay
     such  duties or Taxes  save for any stamp  duty  payable as a result of any
     transfer by any Bank pursuant to clause 18.3 of the Principal Agreement.

8    Restructuring Date

8.1  Conditions precedent documentation

     The amendments to be made to the Principal Agreement and the Security Trust
     Deed by this Deed and the accession of the Additional  Overdraft  Borrowers
     to the  Principal  Agreement  shall  take  effect on and from the date (the
     "Restructuring  Date") on which the Agent  notifies the Parent and the Bank
     Finance  Parties  that the Agent has received  the  documents  and evidence
     specified in Schedule 5, in each case, in form and  substance  satisfactory
     to it, or, as the case may be, that the  requirement to provide any of such
     documents or evidence has been waived by the Majority Banks.

8.2  Further Conditions Precedent

     The Agent shall give notice of the  occurrence  of the  Restructuring  Date
     under clause 8.1 unless,  on the date on which it would otherwise have done
     so,  the Agent has  received  actual  knowledge  (i) that any  Default  has
     occurred and is continuing  unremedied and unwaived (other than the Default
     referred  to in  clause  9) or (ii)  that  any of the  representations  and
     warranties  in clause 6 are  untrue or  incorrect  as at the date they were
     made in which  event the Agent  shall  only give such  notice if  expressly
     instructed in writing by the Majority Banks to do so.

8.3  Conditions Subsequent

     The Parent undertakes:

                                       3
<PAGE>

8.3.1     to deliver to the Common Security  Trustee within 3 Banking Days after
          the  Restructuring  Date the  constitution of Cordiant  Communications
          Group  Australia Pty Limited and to procure that Chafma B.V.  delivers
          to the Common Security  Trustee within 3 days after the  Restructuring
          Date the  constitution  of  Cordiant  Communications  (Australia)  Pty
          Limited; and

8.3.2     to deliver to the Agent within 5 Banking Days after the  Restructuring
          Date for  distribution to the Banks (in sufficient  copies for all the
          Banks) the Audited Financial Statements of the Group for the Financial
          Year ended 31 December 2001; and

8.3.3     to deliver to the Agent within 30 Banking Days after the Restructuring
          Date  evidence  satisfactory  to the  Agent  that the  Zenith  SPV has
          acceded to the Facilities  Group Joint Venture  Agreement and that all
          of the Group's right, interest and title to shares in Facilities Group
          have been transferred to the Zenith SPV;

     and failure to comply with either of these  undertakings  will result in an
     Event of Default being deemed to have  immediately  occurred at the time of
     any such  failure  so that the Banks  shall  have the  rights as set out in
     clause 14.2 of the Principal  Agreement as amended and restated in Schedule
     6 to this Deed.

9    Waivers

9.1  With effect from the  Restructuring  Date (but  without  prejudice to their
     rights prior to such date) the Banks waive the Events of Default arising by
     virtue of the  breach of the  financial  covenants  given by the  Parent in
     clause 13.1 of the  Principal  Agreement in respect of 31 December 2001 and
     the relevant periods ending thereon.

9.2  With effect from the Restructuring  Date the Banks waive the requirement at
     clause  4.1.1(a) of the  Principal  Agreement  as amended  and  restated in
     Schedule 6 in respect of the Drawdown  Notice for the first  Advance  after
     the Restructuring  Date only to the extent that such Drawdown Notice may be
     provided at such time prior to the proposed  Drawdown Date as agreed by the
     Agent.

10   Miscellaneous

10.1 Continuation of Principal Agreement and Security Trust Deed

     Save as amended by this Deed, the provisions of the Principal Agreement and
     the  Security  Trust Deed shall  continue  in full force and effect and the
     Principal  Agreement  and this  Deed  shall be read  and  construed  as one
     instrument.

10.2 Guarantees

10.2.1    The  Original   Guarantors  confirm  that  each  of  their  respective
          obligations under the Original  Guarantees  continue in full force and
          effect  notwithstanding  the amendments  effected by this Deed and the
          accession  of the  Additional  Overdraft  Borrowers  to the  Principal
          Agreement.

10.2.2    The Overdraft  Guarantors  also confirm that each of their  respective
          obligations  under any guarantees in favour of the Overdraft Bank that
          guarantee  the  obligations  of any  Group  member or  members  to the
          Overdraft Bank continue in full force and effect  notwithstanding  the
          amendments  effected by this Deed and notwithstanding the accession of
          the Additional Overdraft Borrowers to the Principal Agreement.

10.3 Counterparts

     This  Deed  may  be  executed  in any  number  of  counterparts  and by the
     different parties on separate counterparts,  each of which when so executed
     and  delivered  shall be an original but all  counterparts  shall  together
     constitute one and the same instrument.

10.4 Third Party Rights

                                       4
<PAGE>

     No term of this Deed is  enforceable  under the Contracts  (Rights of Third
     Parties) Act 1999 by a person who is not a party to this Deed.

10.5 Effect as a Deed

     This Deed shall take effect as a deed  notwithstanding  that the Arrangers,
     the Banks,  the  Swingline  Bank,  the  Overdraft  Bank,  the Agent and the
     Security Trustee may have executed it under hand only.

11   Governing Law and jurisdiction

11.1 Law

     This Deed shall be governed by English law.

11.2 Submission to jurisdiction

     The parties to this Deed agree for the benefit of the Bank Finance  Parties
     that:

11.2.1    If any party  has any claim  against  any other  arising  out of or in
          connection  with this Deed such claim shall (subject to clause 11.2.3)
          be  referred  to  the  High  Court  of  Justice  in  England.  to  the
          jurisdiction of which each of the parties irrevocably submits;

11.2.2    the jurisdiction of the High Court of Justice in England over any such
          claim   against  any  Bank   Finance   Party  shall  be  an  exclusive
          jurisdiction and no courts outside England shall have  jurisdiction to
          hear or determine any such claim;

11.2.3    nothing  in this  clause  11.2.3  shall  limit  the  right of any Bank
          Finance Party to refer any such claim against any Borrower, Additional
          Overdraft  Borrower,  Original Guarantor or Overdraft Guarantor to any
          other  court  of  competent   jurisdiction  outside  England,  to  the
          jurisdiction of which each Borrower,  Additional  Overdraft  Borrower,
          Original  Guarantor and Overdraft  Guarantor hereby irrevocably agrees
          to submit,  nor shall the taking of  proceedings  by any Bank  Finance
          Party  before the  courts in one or more  jurisdictions  preclude  the
          taking of proceedings in any other jurisdiction  whether  concurrently
          or not; and

11.2.4    each Borrower,  Additional Overdraft Borrower,  Original Guarantor and
          Overdraft Guarantor irrevocably waives any objection to proceedings in
          the courts  mentioned in this clause 11.2 and any claim on the grounds
          of forum non conveniens.

11.3 Parent for service of process

     Each  Borrower,  Additional  Overdraft  Borrower,  Original  Guarantor  and
     Overdraft  Guarantor  not  incorporated  in England  and Wales  irrevocably
     designates,  appoints  and  empowers  the Parent at the  address set out in
     Schedule I to receive  for it and on its behalf  service of process  issued
     out of the High  Court of  Justice  in  England  in  relation  to any claim
     arising out of or in connection  with this Deed and the Parent  irrevocably
     and  unconditionally  accepts such appointment and each similar appointment
     of the Parent as an English  process  agent made by any  Obligor  under any
     other Bank Finance Document from time to time.

11.4 Waiver of jury trial

     EACH  BORROWER,  ADDITIONAL  OVERDRAFT  BORROWER,  ORIGINAL  GUARANTOR  AND
     OVERDRAFT GUARANTOR HEREBY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
     LEGAL  PROCEEDINGS  ANYWHERE ARISING OUT OF OR RELATING TO THIS DEED OR THE
     TRANSACTIONS CONTEMPLATED HEREBY.

     IN WITNESS  whereof  the  parties  hereto  have caused this Deed to be duly
     executed and delivered as a deed on the day and year first above written.

                                       5
<PAGE>

                                   Schedule 1

                                  The Borrowers

<TABLE>
<CAPTION>
PART A - ORIGINAL BORROWERS
---------------------------

          Name of Borrower               Registered Number            Registered office/address
                                             (if any)
<C>                                      <C>                          <C>
1    Cordiant Communications             1320869                      121-141 Westbourne Terrace
     Group plc                                                        London W2 6JR

2    Bates UK Limited                    913184                       121-141 Westbourne Terrace
                                                                      London W2 6JR

3    Cordiant US Holdings Inc.           13-3965951                   Corporation Trust Centre
                                                                      1209 Orange Street
                                                                      Wilmington
                                                                      Newcastle
                                                                      Delaware USA

4    Bates Deutschland Holding           HRB 8608                     Hanauer Landstrasse 287-289
     GmbH                                                             60314 Frankfurt am Main
                                                                      Germany

<CAPTION>
PART B - SWINGLINE BORROWERS
----------------------------

          Name of Borrower               Registered Number            Registered office/address
                                             (if any)
<C>                                      <C>                          <C>
1    Cordiant U.S. Holdings Inc.         13-3965951                   Corporation Trust Centre
                                                                      1209 Orange Street
                                                                      Wilmington
                                                                      Newcastle
                                                                      Delaware USA

                                       6
<PAGE>

<CAPTION>
PART C - OVERDRAFT BORROWERS
----------------------------

          Name of Overdraft              Registered Number            Registered office/address
              Borrower                        (if any)

<C>                                      <C>                          <C>
1    Atlas Advertising Limited           964286                       121-141 Westbourne Terrace
                                                                      London W2 6JR

2    Bates Overseas Holdings             2217108                      121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

3    Bates UK Limited                    913184                       121-141 Westbourne Terrace
                                                                      London W2 6JR

4    Cordiant Communications             1320869                      121-141 Westbourne Terrace
     Group plc                                                        London W2 6JR

5    Cordiant Group Limited              63031                        121-141 Westbourne Terrace
                                                                      London W2 6JR

6    Cordiant Property Holdings          2263916                      121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

7    ICM International Limited           1802173                      121-141 Westbourne Terrace
                                                                      London W2 6JR

8    Swot Plus Limited                   1929347                      121-141 Westbourne Terrace
                                                                      London W2 6JR

9    The Decision Shop Limited           615225                       121-141 Westbourne Terrace
                                                                      London W2 6JR

10   XMSS Limited                        2463385                      121-141 Westbourne Terrace
                                                                      London W2 6JR
</TABLE>

                                       7
<PAGE>

                                   Schedule 2

                                   Guarantors

<TABLE>
<CAPTION>
PART A - ORIGINAL GUARANTORS
----------------------------

          Name of Guarantor              Registered Number            Registered office/address
                                              (if any)
<C>                                      <C>                          <C>
1    Cordiant Communications             1320869                      121-141 Westbourne Terrace
     Group plc                                                        London W2 6JR

2    Bates Europe Limited                689584                       121-141 Westbourne Terrace
                                                                      London W2 6JR

3    Bates UK Limited                    913184                       121-141 Westbourne Terrace
                                                                      London W2 6JR

4    Atlas Advertising Limited           964286                       121-141 Westbourne Terrace
                                                                      London W2 6JR

5    The Decision Shop Limited           615225                       121-141 Westbourne Terrace
                                                                      London W2 6JR

6    ICM International Limited           1802173                      121-141 Westbourne Terrace
                                                                      London W2 6JR

7    Cordiant US Holdings Inc.           13-3965951                   Corporation Trust Centre
                                                                      1209 Orange Street
                                                                      Wilmington
                                                                      Delaware

8    Bates Advertising USA Inc.          132993871                    Gould & Wilkie LLP
                                                                      One Chase Manhattan
                                                                      Plaza, 58th Floor
                                                                      New York
                                                                      NY 10018

9    Bates Churchill Public              76-0234801                   CT Corporation System
     Relations, Inc.                                                  811 Dallas Avenue
                                                                      Houston
                                                                      Texas 77002

10   Bates Churchill Advertising         76-0542479                   CT Corporation System
     Inc.                                                             811 Dallas Avenue
                                                                      Houston
                                                                      Texas 77002

11   Bates Worldwide                     51 0306788                   Corporation Trust Center
     (Delaware), Inc.                                                 1209 Orange Street
                                                                      Wilmington
                                                                      Delaware

                                       8
<PAGE>

<CAPTION>
          Name of Guarantor              Registered Number            Registered office/address
                                             (if any)

<C>                                      <C>                          <C>
12   CCG.XM Inc                          13-4107916                   Corporation Trust Center
                                                                      1209 Orange Street
                                                                      Wilmington
                                                                      Delaware

13   Healthworld Corporation Inc         13-3922288                   Corporation Trust Center
                                                                      1209 Orange Street
                                                                      Wilmington
                                                                      Delaware

14   Bates Healthworld Inc               13-3343927                   c/o Michael J Kopcszk
                                                                      CCG Worldwide, Inc.
                                                                      New York
                                                                      NY 10018

15   Falk Healthworld Inc.               51-0316417                   Corporation Trust Center
                                                                      1209 Orange Street
                                                                      Wilmington
                                                                      Delaware

16   Lighthouse Global Network           36-4247757                   Corporation Trust Center
     Inc.                                                             1209 Orange Street
                                                                      Wilmington
                                                                      Delaware

17   Fitch Inc.                          31-4445408                   Ct Corporation System
                                                                      17 S. High Street
                                                                      Columbus
                                                                      OH 43215

18   Morgen Walke Associates             13 312 8710                  c/o Michael J Kopcszk
     Inc.                                                             CCG Worldwide, Inc.
                                                                      498 7th Avenue
                                                                      New York
                                                                      NY 10018

19   Bates Deutschland Holdings          HRB 8608                     Hanauer Landstrasse
     GmbH                                                             287-289
                                                                      60314 Frankfurt am Main
                                                                      Germany

20   Cordiant Communications             ACN: 003                     Level 15, 35 Clarence Street
     Group Australia Pty. Limited        203 450                      Sydney
                                                                      NSW 2000
                                                                      Australia

                                            9
<PAGE>

<CAPTION>
PART B - OVERDRAFT GUARANTORS
-----------------------------

          Name of Overdraft             Registered Number            Registered office/address
             Guarantor                      (if any)

<C>                                <C>                                <C>
1    Atlas Advertising Limited           964286                       121-141 Westbourne Terrace
                                                                      London W2 6JR

2    Bates Overseas Holdings             2217108                      121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

3    Bates UK Limited                    913184                       121-141 Westbourne Terrace
                                                                      London W2 6JR

4    Cordiant Communications             1320869                      121-141 Westbourne Terrace
     Group plc                                                        London W2 6JR

5    Cordiant Group Limited              63031                        121-141 Westbourne Terrace
                                                                      London W2 6JR

6    Cordiant Property Holdings          2263916                      121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

7    ICM International Limited           1802173                      121-141 Westbourne Terrace
                                                                      London W2 6JR

8    Swot Plus Limited                   1929347                      121-141 Westbourne Terrace
                                                                      London W2 6JR

9    The Decision Shop Limited           615225                       121-141 Westbourne Terrace
                                                                      London W2 6JR

10   XMSS Limited                        2463385                      121-141 Westbourne Terrace
                                                                      London W2 6JR

11   Healthworld Holdings                3458882                      121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

12   Milton Marketing Group              3113109                      121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

13   Fitch Design Consultants            670130                       121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

14   Financial Dynamics Limited          1656428                      121-141 Westbourne Terrace
                                                                      London W2 6JR

                                       10
<PAGE>

<CAPTION>

          Name of Overdraft               Registered Number           Registered office/address
             Guarantor                         (if any)
<C>                                          <C>                      <C>
15   Connect Six Limited                     2191533                  121-141 Westbourne Terrace
                                                                      London W2 6JR

16   Connect Five Limited                    1928295                  121-141 Westbourne Terrace
                                                                      London W2 6JR

17   Clarion Communications                  2517824                  121-141 Westbourne Terrace
     (P.R.) Limited                                                   London W2 6JR

18   Corporate and Financial                 2693509                  121-141 Westbourne Terrace
     Design Limited                                                   London W2 6JR

19   Headcount Worldwide Field               1425412                  121-141 Westbourne Terrace
     Marketing Limited                                                London W2 6JR

20   Colwood Healthworld                     2213846                  121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

21   Bates Healthworld Limited               3961667                  121-141 Westbourne Terrace
                                                                      London W2 6JR

22   Milton Marketing Limited                1385429                  121-141 Westbourne Terrace
                                                                      London W2 6JR

23   Financial Dynamics Holdings             3345319                  121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

24   Lighthouse Holdings (UK)                3719632                  121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

25   PSD Associates Limited                  2431038                  121-141 Westbourne Terrace
                                                                      London W2 6JR

26   Scholz & Friends London                 3398022                  121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

27   N.A.S.A.2.0 London Limited             3942853                   121-141 Westbourne Terrace
                                                                      London W2 6JR

28   CCG.XM                                 4023322                   121-141 Westbourne Terrace
                                                                      London W2 6JR

                                       11
<PAGE>

<CAPTION>
          Name of Overdraft               Registered Number           Registered office/address
             Guarantor                         (if any)
<C>                                          <C>                      <C>
29   CCG.XM Holdings Limited                 3961670                  121-141 Westbourne Terrace
                                                                      London W2 6JR

30   Bamber Forsyth Limited                  2097924                  121-141 Westbourne Terrace
                                                                      London W2 6JR

31   Bulletin International Limited          2581681                  121-141 Westbourne Terrace
                                                                      London W2 6JR

32   Bulletin International UK               3778367                  121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

33   PCI Live Design Limited                 3053382                  121-141 Westbourne Terrace
                                                                      London W2 6JR

34   Ultimate Events Limited                 3730309                  121-141 Westbourne Terrace
                                                                      London W2 6JR

35   Business Communications                 4048310                  121-141 Westbourne Terrace
     International Group Limited                                      London W2 6JR

36   Fitch Worldwide Limited                 4135498                  121-141 Westbourne Terrace
                                                                      London W2 6JR
</TABLE>

                                       12
<PAGE>

                                   Schedule 3

                         Additional Overdraft Borrowers

<TABLE>
<CAPTION>
          Name of Additional                 Registered Number        Registered office/address
          Overdraft Borrower                     (if any)
<C>                                               <C>                 <C>
1    Healthworld Holdings                         3458882             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

2    Milton Marketing Group                       3113109             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

3    Headcount Worldwide Field                    1425412             121-141 Westbourne Terrace
     Marketing Limited                                                London W2 6JR

4    Colwood Healthwood                           2213846             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

5    Bates Healthworld Limited                    3961667             121-141 Westbourne Terrace
                                                                      London W2 6JR

6    Bates Europe Limited                         689584              121-141 Westbourne Terrace
                                                                      London W2 6JR

7    Milton Marketing Limited                     1385429             121-141 Westbourne Terrace
                                                                      London W2 6JR

8    Financial Dynamics Holdings                  3345319             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

9    Lighthouse Holdings (UK)                     3719632             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

10   Fitch Design Consultants                     670130              121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

11   Financial Dynamics Limited                   1656428             121-141 Westbourne Terrace
                                                                      London W2 6JR

12   Connect Six Limited                          2191533             121-141 Westbourne Terrace
                                                                      London W2 6JR

13   Connect Five Limited                         1928295             121-141 Westbourne Terrace
                                                                      London W2 6JR
                                       13
<PAGE>

<CAPTION>
          Name of Additional                 Registered Number        Registered office/address
          Overdraft Borrower                     (if any)
<C>                                               <C>                 <C>
14   Clarion Communications PR                    2517824             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

15   PSD Associates Limited                       2431038             121-141 Westbourne Terrace
                                                                      London W2 6JR

16   Scholz & Friends London                      3398022             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

17   N.A.S.A.2.0 London Limited                   3942853             121-141 Westbourne Terrace
                                                                      London W2 6JR

18   CCG.XM                                       4023322             121-141 Westbourne Terrace
                                                                      London W2 6JR

19   CCG.XM Holdings Limited                      3961670             121-141 Westbourne Terrace
                                                                      London W2 6JR

20   Bamber Forsyth Limited                       2097924             121-141 Westbourne Terrace
                                                                      London W2 6JR

21   Corporate and Financial                      2693509             121-141 Westbourne Terrace
     Design Limited                                                   London W2 6JR

22   Bulletin International Limited               2581681             121-141 Westbourne Terrace
                                                                      London W2 6JR

23   Bulletin International (UK)                  3778367             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

24   PCI Live Design Limited                      3053382             121-141 Westbourne Terrace
                                                                      London W2 6JR

25   Business Communications                      4048310             121-141 Westbourne Terrace
     International Group Limited                                      London W2 6JR

26   Fitch Worldwide Limited                      4135498             121-141 Westbourne Terrace
                                                                      London W2 6JR

27   Cordiant (US) Holdings                       4242432             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

                                       14
<PAGE>

<CAPTION>
          Name of Additional                 Registered Number        Registered office/address
          Overdraft Borrower                     (if any)
<C>                                               <C>                 <C>
28   Fitch International Limited                  2699605             121-141 Westbourne Terrace
                                                                      London W2 6JR

29   Fitch Limited                                1388429             121-141 Westbourne Terrace
                                                                      London W2 6JR

30   Healthworld UK Holdings                      3961678             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

31   Garrott Dorland Crawford                     1012296             121-141 Westbourne Terrace
     Holdings Limited                                                 London W2 6JR

32   Deckchair Studios Limited                    644752              121-141 Westbourne Terrace
                                                                      London W2 6JR

33   Ted Bates Holdings Limited                   553986              121-141 Westbourne Terrace
                                                                      London W2 6JR

34   C&FD (Holdings Limited)                      3560931             121-141 Westbourne Terrace
                                                                      London W2 6JR

35   Cordiant Overseas Holdings                   4135469             121-141 Westbourne Terrace
     Limited                                                          London W2 6JR

36   Propose Two Limited                          3649589             121-141 Westbourne Terrace
                                                                      London W2 6JR

37   Secure Two Limited                           3646997             121-141 Westbourne Terrace
                                                                      London W2 6JR

38   Connect One Limited                          1929925             121-141 Westbourne Terrace
                                                                      London W2 6JR

39   Sonic Sun Limited                            4350720             121-141 Westbourne Terrace
                                                                      London W2 6JR

40   CCG.XM (UK) Limited                          3942085             121-141 Westbourne Terrace
                                                                      London W2 6JR
</TABLE>
                                       15

<PAGE>

                                   Schedule 4

                                      Banks

     Name of Bank                                         Address

1    HSBC Bank plc                                Media/Telecoms Group
                                                  27-32 Poultry
                                                  London EC2P 2BX

2    The Bank of New York                         Level 48
                                                  One Canada Square
                                                  London E14 5AL

3    ABN AMRO Bank N.V., London Branch            250 Bishopsgate
                                                  London EC2M 4AA

4    Allied Irish Banks, plc                      Corporate Banking Britain
                                                  St Helen's
                                                  1 Undershafl
                                                  London EC3A 8AB

5    Bank of Scotland                             38 Threadneedle Street
                                                  London EC2P 2EH

6    Banque Worms                                 Tour Voltaire
                                                  1 Place des Degres
                                                  F--92059 Paris La Defense
                                                  FRANCE

7    Citibank, N.A.                               Media & Communications Group
                                                  388 Greenwich Street Street
                                                  21st Floor
                                                  New York 10013
                                                  UNITED STATES OF AMERICA

8    Fleet National Bank                          39 Victoria Street
                                                  Westminster
                                                  London SW1H OED

9    Mizuho Corporate Bank, Ltd                   River Plate House
                                                  7-11 Finsbury Circus
                                                  London EC2M 7DH

10   Lloyds TSB Bank plc                          Credit Services
                                                  4th Floor
                                                  11-15 Monument Street
                                                  London EC3R 8LR

11   The Royal Bank of Scotland plc               Corporate and Institutional
                                                  Banking
                                                  135 Bishopsgate
                                                  London EC2M 3UR

12   Scotiabank Europe plc                        Scotia House
                                                  33 Finsbury Square
                                                  London EC2A 1BB

13   Westdeutsche Landesbank Girozentrale         Woolgate Exchange
                                                  25 Basinghall Street
                                                  London EC2V 5HA

                                       16
<PAGE>

                                   Schedule 5

  Documents and evidence required as conditions precedent to the Restructuring

                                      Date

1         Corporate

1.1       A  certificate  from each  Obligor  incorporated  in England and Wales
          substantially  in the form of annexure A to this  Schedule 5, together
          with all the documents referred to therein.

1.2       A certificate  from each Obligor  incorporated in the US substantially
          in the form of annexure B to this  Schedule 5,  together  with all the
          documents referred to therein.

1.3       A certificate from each Obligor incorporated in Germany  substantially
          in the form of annexure C to this  Schedule 5,  together  with all the
          documents referred to therein.

1.4       A  certificate  from  each  Obligor  incorporated  in the  Netherlands
          substantially  in the form of annexure D to this  Schedule 5, together
          with all the documents referred to therein.

1.5       A   certificate   from  each   Obligor   incorporated   in   Australia
          substantially  in the form of annexure E to this  Schedule 5, together
          with all the documents referred to therein.

2         Credit Documents

2.1       This Deed, duly executed by all parties to it.

2.2       A copy,  certified  as a true  copy by an  Authorised  Officer  of the
          Parent,  of an  agreement  amending  the Note  Purchase  Agreement  in
          accordance with the Noteholders'  term sheet attached to the Agreement
          in Principle  together with  confirmation  that all conditions to such
          amendments  becoming effective (other than in respect of the amendment
          of the Principal  Agreement in accordance with the terms of this Deed)
          have been satisfied.

3         Security Documents

3.1       The Security Memorandum, duly executed.

3.2       All Security Documents and other documents required in accordance with
          the Security  Memorandum in each case in accordance with the basis set
          out in the Security Memorandum.

3.3       The lntercreditor Agreement, duly executed by all the parties thereto.

3.4       The Common  Security  Trust  Deed,  duly  executed  by all the parties
          thereto.

3.5       The Pledge Agreement to be executed by Cordiant  Communications  Group
          plc, Cordiant Holdings GmbH, Bates Deutschland  Holding GmbH and Bates
          Germany  Werbeagentur  GmbH  over the  shares in the  relevant  German
          Subsidiaries.

3.6       The  Abstract  Acknowledgement  of  Indebtedness  to  be  executed  by
          Cordiant Communications Group plc.

3.7       Notices to banks of an account charge in the form of Schedule 5 to the
          Composite  Guarantee  and  Debenture  to be entered  into by  Obligors
          incorporated in the UK in favour of the Common Security  Trustee on or
          about the date of the  Restructuring  Deed as required by the Security
          Memorandum.

4         Opinions

4.1       An opinion of Norton Rose dated not more than 5 Banking  Days prior to
          the Restructuring Date.

                                       17
<PAGE>

4.2       Local law legal opinions from legal  advisers to the Agent,  the Banks
          and the  Common  Security  Trustee  in each  jurisdiction  in which an
          Obligor is incorporated in respect of the Bank Finance Documents.

4.3       US law legal opinions from White & Case, legal advisers to the Parent,
          in respect of the Obligors  incorporated in the US states of New York,
          Delaware and California.

4.4       US law legal opinions from legal advisers to the Agent,  the Banks and
          the Common Security Trustee in respect of the Obligors incorporated in
          the US states of New Hampshire, Ohio, Texas and Washington.

4.5       An opinion  of  Freehill,  Hollingdale  & Page,  Australian  law legal
          advisers  to the  Parent,  in  respect  of stamp  duty  payable on the
          Australian  share  pledges  listed in  paragraph  3.10 of The Security
          Memorandum.

5         Financial

5.1       The  Accountants'  Report addressed (among others) to the Bank Finance
          Parties and the Parent  including  confirmation  that the Bank Finance
          Parties and the Parent may rely thereon.

5.2       A report from  PricewaterhouseCoopers  addressed (among others) to the
          Finance Parties  including  confirmation  that the Finance Parties may
          rely thereon.

5.3       A  letter  from the  Auditors  confirming  that  they  continue  to be
          appointed as the auditors of the Parent, and confirming that they will
          provide the Auditors Report in accordance with the Principal Agreement
          as amended and restated in Schedule 6 to this Deed.

5.4       The Hedging Strategy Letter, duly executed.

5.5       A  copy,  certified  as a true,  complete  and  up-to-date  copy by an
          Authorised Officer of the Parent, of the Group Structure Charts.

5.6       A copy,  certified  as a true,  complete  and  up-to-date  copy by an
          Authorised Officer of the Parent of the Financial Model.

5.7       Copies,  certified  as true,  complete  and  up-to-date  copies  by an
          Authorised   Officer  of  the  Parent,  of  the  unaudited   financial
          statements of the Group for the Financial Year ended 31 December 2001.

5.8       Copies,  certified  as true,  complete  and  up-to-date  copies  by an
          Authorised Officer of the Parent of the quarterly  management accounts
          of the Group for the quarter ended 31 December  2001,  and the monthly
          management  accounts for the month ended 28 February 2002,  (and which
          shall be deemed to have been delivered  pursuant to clauses  12.1.6(b)
          and (c) of the Principal Agreement as amended and restated in Schedule
          6 to this Deed).

6         Transaction Costs

6.1       The  co-ordination,  agency  and  transaction  fee  letter,  the banks
          restructuring fee letter, the swingline bank fee letter and the common
          security  trustee fee letter referred to in clause 7.1,  together with
          payment of any fees referred to therein which are payable on or before
          the Restructuring Date.

6.2       Receipt by the Agent of the other fees,  expenses and Taxes payable by
          the Parent in accordance with clause 7.

7         Miscellaneous

7.1       Either:

                                       18
<PAGE>

7.1.1     a copy,  certified  as a true  copy by an  Authorised  Officer  of the
          Parent  of  all  consents,  authorisations,   licences  and  approvals
          required by the Parent and each Obligor to  authorise,  or required by
          the  Parent  and each  Obligor  in  connection  with,  the  execution,
          delivery,  validity,  enforceability  and admissibility in evidence of
          the Bank Finance  Documents and the performance by the Parent and each
          Borrower  of  its  respective   obligations  under  the  Bank  Finance
          Documents, or

7.1.2     a certificate  signed by an  Authorised  Officer of the Parent that no
          such  consent,  authonsation,  licence  or  approval  referred  to  in
          paragraph 7.1.1 above is required by the Parent or any Obligor.

7.2       A certificate from an Authorised Officer of the Parent confirming that
          utilisation  in full of the  Facilities  (as amended  pursuant to this
          Deed)  would not render the  Parent or any  Borrower  in breach of any
          restriction on borrowings  applicable to the Parent or any Borrower in
          its respective constitutional documents or elsewhere.

7.3       Evidence of the repayment of the Korean debenture stock.

7.4       Evidence  that the Zenith SPV has acceded to the Zenith Joint  Venture
          Agreement  and that all of the Group's  right,  interest  and title to
          shares in Zenith have been transferred to the Zenith SPV.

7.5       A certificate of an Authorised  Officer of the Parent confirming that,
          immediately  following the Restructuring  Date, the Group will have no
          Encumbrances  other than Permitted  Encumbrances  (including,  without
          limitation,  duly  certified  copies of any release  documentation  in
          respect of any such Encumbrances that are not Permitted Encumbrances).

7.6       A certificate of an Authorised  Officer of the Parent confirming that,
          immediately  following the Restructuring  Date, the Group will have no
          Borrowed  Money other than as permitted by the Principal  Agreement as
          amended and restated in Schedule 6 to this Deed.

7.7       A  certificate  of a director of each  Additional  Overdraft  Borrower
          confirming  that  utilisation by it of the Overdraft  Facility in full
          would not cause any borrowing limit binding on it to be exceeded.

7.8       Evidence that each  Additional  Overdraft  Borrower has acceded to the
          Unlimited  Multi-lateral Guarantee dated 14 December 2001 in favour of
          the Overdraft Bank.

7.9       A copy  of the  Drawdown  Notice  containing  an  irrevocable  payment
          instruction  to the Agent under the terms of  Principal  Agreement  as
          amended  and  restated in Schedule 6 to this Deed to repay all amounts
          outstanding  under the Loan  Agreement  dated 4 April 2002 between the
          Parent,  the Arrangers,  the Agent, the Banks and the Security Trustee
          for a (pound)20,000,000 bridge loan facility.

19
<PAGE>

                                   Annexure A

                      DIRECTOR'S CERTIFICATE FOR COMPANIES
                        INCORPORATED IN ENGLAND AND WALES

I, [o],  being a  director  of [o], a private  company  with  limited  liability
incorporated  and existing  under the laws of England and Wales (the  "Company")
refer to:

1    the  restructuring  deed  dated  on or about  the date of this  certificate
     between,  amongst others,  Cordiant Communications Group plc as Parent (1),
     the  companies  whose  respective  names,  registered  numbers (if any) and
     registered  offices are set out in schedule 1 thereto as Borrowers (2), the
     companies  whose  respective  names,   registered   numbers  (if  any)  and
     registered offices are set out in schedule 2 thereto as Original Guarantors
     (3). the companies whose respective names,  registered numbers (if any) and
     registered  offices  are  set  out  in  schedule  2  thereto  as  Overdraft
     Guarantors (4), the companies whose respective  names,  registered  numbers
     (if any) and  registered  offices  are set out in  schedule  3  thereto  as
     Additional Overdraft Borrowers (5) The Bank of New York and HSBC Investment
     Bank plc as  Arrangers  (6),  the banks and  financial  institutions  whose
     respective  names and  addresses are set out in schedule 3 thereto as Banks
     (7),  HSBC  Investment  Bank plc as  Agent,  Security  Trustee  and  Common
     Security  Trustee (8), The Bank of New York as Swingline  Bank (9) and HSBC
     Bank plc as Overdraft Bank (10) (the "Restructuring Deed"),

2    an amended and re-stated  note  purchase  agreement  amending  certain note
     purchase  agreements  dated as of 5 April 2001 made  between  the  Cordiant
     Finance,  Inc.  (the  "Issuer"),  the  Parent as Parent  Guarantor  and the
     purchasers identified therein, pursuant to which the Issuer issued and sold
     $175,000,000 in aggregate  principle amount of its 7.61% Guaranteed  Senior
     Notes due 2011 (as defined therein the "Notes") and currently being held by
     the holders of the Notes (the "Amended Note Purchase Agreement"); and

3    an intercreditor  agreement (the  "lntercreditor  Agreement") entered into,
     between,  among  others,  the  Company  and the  Beneficiaries  (as defined
     therein).

AND HEREBY CERTIFY:

1.   Constitutional Documents

     The  constitutional  documents of the Company,  which were  attached to the
     director's  certificates  dated 2 April 2002 in connection  with the Bridge
     Facility Agreement between,  amongst others,  Cordiant Communications Group
     plc, The Bank of New York and HSBC Investment Bank plc, dated 4 April 2002,
     shall be deemed to be  attached  hereto  as true,  complete  and up to date
     copies of such documents,  and there are no other constitutional  documents
     of the Company. [Note: except for CCG.XM (UK) Limited which must attach its
     constitutional  documents  as  annexure  "A" and  realphabetise  the  other
     annexures accordingly.]

2.   Corporate Resolutions

     The documents  annexed to this  certificate as annexure "A" are true copies
     of the minutes of a meeting of the board of  directors  of the Company duly
     convened  and held on 2002.  The  resolutions  set out  therein  were  duly
     passed,  are binding and have not been amended or revoked.  The adoption of
     such  resolutions,  the entry into the  Documents  (as defined in the board
     resolutions  referred to above) and the  consummation  of the  transactions
     contemplated  thereby are for the purposes of the corporate  benefit of the
     Company.  No borrowing  limits or other  restrictions (or lack of power) in
     relation  to the giving of  guarantees  or  security  or  otherwise  of the
     Company  will be  exceeded  as a result of the Company  entering  into,  or
     borrowing   moneys   under  any  Finance   Document   (as  defined  in  the
     lntercreditor  Agreement), or giving the guarantees and security thereunder
     or incurring or performing  the  obligations  expressed to be assumed by it
     thereunder.

                                       20
<PAGE>

3.   Company Status

     No administration  order has been made in respect of the Company,  no order
     has been made or resolution passed for winding up the Company,  no petition
     has been presented for an  administration  order in respect of the Company,
     and no administration receiver,  receiver, or receiver and manager has been
     appointed in respect of the Company.

4.   Authorised Signatories

     Set out  below  are true  signatures  of those  persons  authorised  by the
     resolutions  of the  board  of  directors  of the  Company  referred  to in
     paragraph  2 above to sign any of the  Documents  and to  execute  all such
     undertakings, statements, certificates, notices, acknowledgements and other
     documents  as may be  required  to be done,  signed and  executed  by or on
     behalf of the Company in  connection  with the  Documents  and otherwise in
     relation to or ancillary to the same.

     [              ]
     [              ]

SIGNED [o]

----------------------
Director

                                       21
<PAGE>

                                   Annexure B

                            CERTIFICATE OF SECRETARY
                               OF [US SUBSIDIARY]

I, [o], being the Secretary]  [Assistant  Secretary] of [o], a corporation  (the
"Company")  refer to the  restructuring  deed dated on or about the date of this
certificate between, amongst others. Cordiant Communications Group plc as Parent
(1), the  companies  whose  respective  names,  registered  numbers (if any) and
registered  offices  are set out in  schedule I thereto as  Borrowers  (2),  the
companies whose  respective  names,  registered  numbers (if any) and registered
offices  are set out in  schedule  2 thereto as  Original  Guarantors  (3),  the
companies whose  respective  names,  registered  numbers (if any) and registered
offices  are set out in  schedule 2 thereto as  Overdraft  Guarantors  (4),  the
companies whose  respective  names,  registered  numbers (if any) and registered
offices are set out in schedule 3 thereto as Additional  Overdraft Borrowers (5)
The Bank of New York and HSBC  Investment  Bank plc as Arrangers  (6), the banks
and financial  institutions  whose respective names and addresses are set out in
schedule 3 thereto as Banks (7),  HSBC  Investment  Bank plc as Agent;  Security
Trustee and Common Security  Trustee (8), The Bank of New York as Swingline Bank
(9) and HSBC Bank plc as  Overdraft  Bank (10) (the  "Restructuring  Deed";  all
capitalized  terms not defined  herein are used as such terms are defined in the
Restructuring Deed),

AND HEREBY CERTIFY:

1.   Organizational Documents

     The  documents  annexed to this  certificate  as annexure "A"  constitute a
     true,  complete  and up to date  copy of the  certificate  or  articles  of
     incorporation  and bylaws of the Company as in full force and effect on the
     date hereof.  No amendment or other  modification  affecting  the Company's
     certificate  or articles  of  incorporation  have been  filed,  recorded or
     executed,  and no authorization  for the filing,  recording or execution of
     any such  amendment or  modification  is  outstanding.  No amendment to the
     bylaws  is  contemplated  and  such  bylaws  continue  in force on the date
     hereof.

2.   Corporate Resolutions

     The documents  annexed to this  certificate as annexure "B" are true copies
     of the minutes of a meeting of the board of  directors  of the Company duly
     convened  and held on [.1 or, as  appropriate,  an action by the  unanimous
     consents of the directors  dated [o]. The  resolutions set out therein were
     duly  passed,  are  binding  and have  not been  amended  or  revoked.  (No
     borrowing  limits or other  restrictions  (or lack of power) in relation to
     the giving of  guarantees  or security or  otherwise of the Company will be
     exceeded  as a result of the  Company  entering  into the  [Documents]  (as
     defined in the minutes  referred to above),  [or borrowing moneys under any
     Bank Finance  Document (as defined in the  Restructuring  Deed),] or giving
     the  guarantees  and security  thereunder  or incurring or  performing  the
     obligations expressed to be assumed by it thereunder.(1)

3.   Certificate of Good Standing

     The document attached as annexure "C" is a true,  correct and complete copy
     of a  Certificate  of Good  Standing of the Company  from the  Secretary of
     State of [State of  Organisation].  No event  has  occurred  since the date
     thereof  which has affected the good standing of the Company under the laws
     of the State of [State of Organisation].

4.   Composition of the board of directors

     Set out below are the names of all of the  directors of the  Company,  duly
     appointed  or  elected  as such,  and there are no other  directors  of the
     Company

----------------
1    To  be  inserted   for  those   subsidiaries   that  are  not  signing  the
     Restructuring Deed.

                                       22
<PAGE>

     [Name]                 [Title]
     [Name]                 [Title]

5.   Authorized Signatories

     Set out below are true  signatures  of those  persons  authorized  (whether
     signing alone or jointly) by the  resolutions  of the board of directors of
     the Company  referred  to in  paragraph  2 above or  otherwise  to sign the
     Restructuring Deed and any of the documents relating thereto and to execute
     all such undertakings,  statements, certificates, notices, acknowledgements
     and other  documents as may be required to be done,  signed and executed by
     or on behalf of the Company in connection with the  Restructuring  Deed and
     otherwise in relation to or ancillary to the same.

     [              ]

     [              ]

SIGNED [o]

----------------------
Director

                                       23
<PAGE>

                                   Annexure C

                      DIRECTOR'S CERTIFICATE FOR COMPANIES
                             INCORPORATED IN GERMANY

I, [o], being a managing director ("Geschaftsfuhrer"') of [o], a private company
with limited liability  incorporated and existing under the laws of Germany (the
"Company")  refer to the  restructuring  deed dated on or about the date of this
certificate between, amongst others, Cordiant Communications Group plc as Parent
(1), the  companies  whose  respective  names,  registered  numbers (if any) and
registered  offices  are set out in  schedule I thereto as  Borrowers  (2),  the
companies whose  respective  names,  registered  numbers (if any) and registered
offices  are set out in  schedule  2 thereto as  Original  Guarantors  (3),  the
companies whose  respective  names,  registered  numbers (if any) and registered
offices  are set out in  schedule 2 thereto as  Overdraft  Guarantors  (4).  the
companies whose  respective  names,  registered  numbers (if any) and registered
offices are set out in schedule 3 thereto as Additional  Overdraft Borrowers (5)
The Bank of New York and HSBC  Investment  Bank pie as Arrangers  (6), the banks
and financial  institutions  whose respective names and addresses are set out in
schedule 3 thereto as Banks (7),  HSBC  Investment  Bank plc as Agent,  Security
Trustee and Common Security  Trustee (8), The Bank of New York as Swingline Bank
(9) and HS8C Bank plc as Overdraft Bank (10) (the "Restructuring Deed"),

AND HEREBY CERTIFY:

1.   Constitutional Documents

     The  documents  annexed to this  certificate  as annexure "A"  constitute a
     true,  complete  and up to  date  copy  of the  articles  of  incorporation
     ("Gruendungsurkunde") and articles of association  ("Gesellschaftsvertrag")
     of  the  Company  containing  all  modifications   thereto,  an  up-to-date
     certified  excerpt from the commercial  register  ("Handelsregisterauszug7)
     and  there  are  no  other  constitutional  documents  (Geschattsordnungen,
     Beiratsordnungen etc.) of the Company.

2.   Resolutions

     The documents  annexed to this  certificate as annexure "B" are true copies
     of the resolutions of a meeting of the  shareholder's  of the Company dated
     [o]. The  resolution(s)  set out therein were duly passed,  are binding and
     have not been amended or revoked. The Company does not act in excess of its
     internal limits or restrictions  when executing the documents  mentioned in
     the resolution (hereinafter "the Documents").

3.   Authorised Signatories

     Set out below are true  signatures of those  persons who,  according to the
     commercial  register  (Handelsregister),  are authorized  (whether  signing
     alone or  jointly) to sign any of the  (Documents]  and to execute all such
     undertakings, statements, certificates, notices, acknowledgements and other
     documents  as may be  required  to be done,  signed and  executed  by or on
     behalf of the Company in connection  with the  [Documents] and otherwise in
     relation to or ancillary to the same.

     [              ]
     [              ]

SIGNED [o]

-----------------
Director

                                       24
<PAGE>

                                   Annexure D

                      DIRECTOR'S CERTIFICATE FOR COMPANIES
                         INCORPORATED IN THE NETHERLANDS

I, [o],  being a  director  of [o], a private  company  with  limited  liability
incorporated  and existing  under the laws of the  Netherlands  (the  "Company")
refer to the  restructuring  deed dated on or about the date of this certificate
between,  amongst others,  Cordiant  Communications Group plc as Parent (1), the
companies whose  respective  names,  registered  numbers (if any) and registered
offices are set out in schedule I thereto as Borrowers (2), the companies  whose
respective names, registered numbers (if any) and registered offices are set out
in schedule 2 thereto as Original Guarantors (3), the companies whose respective
names,  registered  numbers  (if  any)  and  registered  offices  are set out in
schedule 2 thereto as Overdraft  Guarantors (4). the companies whose  respective
names,  registered  numbers  (if  any)  and  registered  offices  are set out in
schedule 3 thereto as  Additional  Overdraft  Borrowers (5) The Bank of New York
and  HSBC  Investment  Bank  plc as  Arrangers  (6),  the  banks  and  financial
institutions  whose  respective  names and  addresses  are set out in schedule 3
thereto as Banks (7). HSBC  Investment Bank plc as Agent,  Security  Trustee and
Common Security Trustee (8), The Bank of New York as Swingline Bank (9) and HSBC
Bank pie as Overdraft Bank (10) (the "Restructuring Deed"),

AND HEREBY CERTIFY:

1.   Constitutional Documents

     The documents annexed to this certificate as annexure "A" constitute a true
     and up to date copy of the current  articles of  association of the Company
     containing   all   modifications   thereto   and   there   are  no   bylaws
     (directiereglement),  resolutions of the general meeting of  shareholders,
     or any other corporate body, which contain rules or regulations with a view
     to  the  management  or  the  organization  of the  Company,  or any  other
     constitutional documents of the Company.

2.   Corporate Resolutions

     The documents  annexed to this  certificate as annexure `B" are true copies
     of the written  resolutions  of (i) the board of managing  directors of the
     Company and (ii) the general meeting of  shareholders  of the Company.  The
     resolutions set out therein were duly passed, are binding and have not been
     amended or revoked.  The adoption of such  resolutions,  the entry into the
     Documents (as defined in the board  resolutions  referred to above) and the
     consummation of the transactions  contemplated thereby are for the purposes
     of the corporate  benefit of the Company and do not  transgress the purpose
     of the  Company.  No  restrictions  (or lack of power) in  relation  to the
     giving of  guarantees  or security  or  otherwise  of the  Company  will be
     exceeded as a result of the Company entering into the Documents, giving the
     guarantees   and  security   thereunder  or  incurring  or  performing  the
     obligations expressed to be assumed by it thereunder.

3.   Authorised Signatories

     Set out  below  are true  signatures  of those  persons  authorized  by the
     resolutions of the board of managing  directors of the Company  referred to
     in paragraph 2 above to sign any of the Documents,  and to execute alt such
     undertakings, statements, certificates, notices, acknowledgements and other
     documents  as may be  required  to be done,  signed and  executed  by or on
     behalf of the Company in  connection  with the  Documents  and otherwise in
     relation to or ancillary to the same.

     [              ]
     [              ]

SIGNED [o]

                                       25
<PAGE>

-----------------
Director

                                       26
<PAGE>

                                   Annexure E

                      DIRECTOR'S CERTIFICATE FOR COMPANIES
                            INCORPORATED IN AUSTRALIA

I, [o],  being a  director  of [o], a private  company  with  limited  liability
incorporated  and existing under the laws of Australia (the "Company")  refer to
the restructuring  deed dated on or about the date of this certificate  between,
amongst others.  Cordiant  Communications Group plc as Parent (1), the companies
whose respective names,  registered  numbers (if any) and registered offices are
set out in schedule I thereto as Borrowers (2), the companies  whose  respective
names,  registered  numbers  (if  any)  and  registered  offices  are set out in
schedule 2 thereto as Original  Guarantors (3), the companies  whose  respective
names,  registered  numbers  (if  any)  and  registered  offices  are set out in
schedule 2 thereto as Overdraft  Guarantors (4), the companies whose  respective
names,  registered  numbers  (if  any)  and  registered  offices  are set out in
schedule 3 thereto as  Additional  Overdraft  Borrowers (5) The Bank of New York
and  HSBC  Investment  Bank  plc as  Arrangers  (6),  the  banks  and  financial
institutions  whose  respective  names and  addresses  are set out in schedule 3
thereto as Banks (7), HSBC  Investment Bank plc as Agent,  Security  Trustee and
Common Security Trustee (8). The Bank of New York as Swingline Bank (9) and HSBC
Bank plc as Overdraft Bank (10) (the "Restructuring Deed"),

AND HEREBY CERTIFY:

1.   Constitutional Documents

     The documents annexed to this certificate as annexure "A" constitute a true
     and up to date copy of the certificate of  incorporation,  each certificate
     of change  of name of the  Company,  and the  constitution  of the  Company
     containing all modifications  thereto and there are no other constitutional
     documents of the Company.

2.   Corporate Resolutions

     The  documents  annexed to this  certificate  as annexure "B" are certified
     extracts  of the  minutes  of a meeting  of the board of  directors  of the
     Company duly convened and held on [o]. The resolutions set out therein were
     duly passed, are binding and have not been amended or revoked. The adoption
     of such  resolutions,  the entry into the  [Documents]  (as  defined in the
     board   resolutions   referred  to  above)  and  the  consummation  of  the
     transactions  contemplated  thereby are for the  purposes of the  corporate
     benefit of the Company.  No borrowing limits or other restrictions (or lack
     of power) in relation to the giving of  guarantees or security or otherwise
     of the Company  will be exceeded as a result of the Company  entering  into
     the  Documents,  or  giving  the  guarantees  and  security  thereunder  or
     incurring  or  performing  the  obligations  expressed  to be assumed by it
     thereunder.

3.   Authorised Signatories

     Set out  below  are true  signatures  of those  persons  authorized  by the
     resolutions  of the  board  of  directors  of the  Company  referred  to in
     paragraph  2 above to sign any of the  (Documents]  and to execute all such
     undertakings, statements, certificates, notices, acknowledgements and other
     documents  as may be  required  to be done,  signed and  executed  by or on
     behalf of the Company in connection  with the  [Documents] and otherwise in
     relation to or ancillary to the same.

     [              ]

     [              ]

                                       27
<PAGE>

4.   Solvency

     The Company is solvent. The Company is not prevented by Chapter 2E, Chapter
     2J or any other provision of the Corporations  Act 2001 (Cth) from entering
     into and  performing  any of the  [Documents]  or giving the  guarantees or
     securities thereunder.

SIGNED [o]

--------------------
Director

                                       28
<PAGE>

                                   Schedule 6

                     The Amended and Restated Loan Agreement

                                 (See next page]

                                       29
<PAGE>

                                 LOAN AGREEMENT
                                       For
                    Facilities of up to(pound)155,871,146.52

                                       to
                       CORDIANT COMMUNICATIONS GROUP PLC
                                   and others

                                   Arranged by
                              THE BANK OF NEW YORK
                                       And
                            HSBC INVESTMENT BANK PLC

                                      Agent
                            HSBC INVESTMENT BANK PLC

                                   Norton Rose
<PAGE>

                                    Contents

Clause                                                                      Page

1   Purpose and definitions...................................................1
2   The Facilities...........................................................23
3   Conditions...............................................................24
4   The Facilities; Currencies...............................................25
5   Interest; alternative interest rates.....................................28
6   The Overdraft Facility and the Swingline Facility........................30
7   Indemnity of Overdraft Bank and Swingline Bank...........................34
8   Repayment, prepayment and cancellation...................................36
9   Fees and expenses........................................................40
10  Payments and Taxes; accounts and calculations............................43
11  Representations and warranties...........................................48
12  Undertakings.............................................................52
13  Financial Covenants......................................................66
14  Events of Default........................................................68
15  Indemnities..............................................................72
16  Unlawfulness and increased costs; mitigation.............................73
17  Set-off and pro rata payments............................................76
18  Assignment, substitution, lending offices, Additional Borrowers
    and Affiliates of Banks..................................................77
19  Arranger, Agent, Security Trustee, Common Security Trustee and
    Reference Banks..........................................................81
20  Notices and other matters................................................87
21  Governing law and jurisdiction...........................................89

Schedule 1...................................................................90

    Part A - Original Borrowers..............................................90

Schedule 2 The Banks and their Commitments...................................97

Schedule 3 Part A - Form of Drawdown Notice..................................99

Schedule 4..................................................................102

     Part A - Documents and evidence required as conditions
     precedent to the delivery of the first Drawdown Notice
     in respect of the Facilities...........................................102

<PAGE>

     Part B - To be delivered prior to the delivery of the
     first Drawdown Notice in respect of an Advance to be
     used to refinance the Existing Lighthouse Facilities
     or to pay costs and expenses incurred in connection
     with the Lighthouse Acquisition........................................103

     Part C - Documents and evidence to be delivered by
     each additional Guarantor..............................................104

     Part D - Documents and evidence to be delivered by an
     Additional Borrower or Additional Overdraft Borrower...................105

     Part E - Form of Director's Certificate regarding
     financial assistance...................................................107

Schedule 5 Calculation of Additional Cost...................................108

Schedule 6 Form of Substitution Certificate Part A (single
 transfers).................................................................111

Schedule 7 Permitted Encumbrances...........................................119

Schedule 8..................................................................120

    Part A Borrower Accession Agreement.....................................120

Schedule 9 Permitted Guarantees.............................................124

Schedule 10 Borrower's Compliance Certificate...............................127

Schedule 11 Form of Guarantee to be given by new Guarantors.................128

Schedule 12 Permitted Acquisitions..........................................129

Schedule 13 Preference shares issued by (or to be issued)
by Lighthouse and its Subsidiaries as deferred consideration................131

Schedule 14 Non-Bank Cash Pooling Arrangements..............................133

<PAGE>

THIS  AGREEMENT  is dated 4 July 2000 (as  amended  and  restated  pursuant to a
restructuring deed dated 19 April 2002 and made BETWEEN:

(1)  CORDIANT COMMUNICATIONS GROUP PLC as the Parent;

(2)  THE  COMPANIES  whose  names,  registered  numbers (if any) and  registered
     offices are set out in part A of Schedule 1 as Original  Borrowers  and the
     companies whose names,  registered  numbers (if any) and registered offices
     are set out in part C of Schedule I as Original Overdraft Borrowers;

(3)  THE BANK OF NEW YORK and HSBC INVESTMENT BANK PLC as Arrangers;

(4)  THE BANKS AND FINANCIAL  INSTITUTIONS whose names and addresses are set out
     in Schedule 2;

(5)  HSBC  INVESTMENT  BANK PLC as Agent,  Security  Trustee and Common Security
     Trustee;

(6)  THE BANK OF NEW YORK as Swingline Bank; and

(7)  HSBC BANK PLC as Overdraft Bank.

IT IS AGREED as follows:

1         Purpose and definitions

1.1       Purpose

          This Agreement  sets out the terms and conditions  upon and subject to
          which the Banks agree, according to their several obligations, to make
          available  to the  Borrowers  a  revolving  credit  facility  of up to
          (pound)155,871,146.52  or its equivalent in Optional  Currencies,  the
          Swingline  Bank agrees to make  available to the Swingline  Borrower a
          swingline  facility  (including a letter of credit  facility) of up to
          (pound)12,469,692  and the Overdraft  Bank agrees to make available to
          the   Overdraft   Borrowers   an   overdraft   facility   of   up   to
          (pound)6,000,000,  subject to an overall limit on all such  facilities
          of  (pound)155,871,146.52,  to  be  used  to  repay  the  Bridge  Loan
          Agreement and for general corporate purposes.

1.2       Definitions

          In this Agreement, unless the context otherwise requires:

          "Accountant's  Report" means the agreed form financial report prepared
          by KPMG dated 21 January  2002 for the  purposes of the  Restructuring
          which is addressed  to (among  others) the Parent and the Bank Finance
          Parties;

          "Additional  Borrower" means any wholly owned Subsidiary of the Parent
          which becomes a Borrower in accordance with clause 18.11;

          "Additional  Cost"  means,  in relation to any  period,  a  percentage
          calculated for such period at an annual rate  determined in accordance
          with Schedule 5;

          "Additional  Overdraft  Borrower" means any wholly owned Subsidiary of
          the Parent which  becomes an  Overdraft  Borrower in  accordance  with
          clause 18.11;

          "Advance"  means each  Revolving  Credit  Advance  and each  Swingline
          Advance;

          "Affiliate"  means,  in  relation  to any person,  a  Subsidiary  or a
          Holding  Company of that person and any other  Subsidiary of a Holding
          Company of that person;

          "Agent" means HSBC  Investment Bank plc or such other person as may be
          appointed agent for the Banks pursuant to clause 19.13;

                                        1
<PAGE>

          "Agreement in Principle"  means the agreement dated 28 March 2002 made
          between the Parent,  the Arrangers,  the Agent, the Security  Trustee,
          the Banks,  the Swingline Bank, the Overdraft Bank,  Cordiant  Finance
          Inc. as Issuer of the Notes and the Noteholders for the purpose (inter
          alia) of agreeing the principle terms of the Restructuring;

          "Amended and Restated Note Purchase Agreement" means the note purchase
          agreements dated as of 5 April 2001 for $175,000,000 Guaranteed Senior
          Notes due 2011 issued by the Parent (as parent guarantor) and Cordiant
          Finance Inc.  (as issuer)  each as amended and restated  into a single
          agreement on or about the Restructuring Date;

          "Annual  Budget" means in respect of each Financial Year of the Group,
          a budget for such  Financial Year (broken down on a monthly basis) the
          form (but riot the  content)  of which is in the  agreed  form each as
          updated on a quarterly  basis during each relevant  Financial  Year as
          set out in clause 12.1.6(f);

          "Appropriate  Accounting  Principles" means (a) the generally accepted
          accounting  principles,  standards,  practices and bases in the United
          Kingdom as  adopted  in the  Group's  audited  consolidated  financial
          statements for the Financial Year ended on 31 December 1998 and in the
          Financial  Model or (b) where any change in (a) has been agreed  under
          clause 12.2.14, such accounting principles,  standards,  practices and
          bases as have been so agreed;

          "Arranger"  means each of The Bank of New York of One  Canada  Square,
          London E14 SAL and HSBC  investment  Bank plc of Thames  Exchange,  10
          Queen Street Place,  London, EC4R 1BL and their respective  successors
          in title;

          "Associated  Person" means, in relation to any person, a person who is
          (i) acting in concert  (as defined in the City Code on  Takeovers  and
          Mergers)  with that person or (ii) a  connected  person (as defined in
          section  839 of the  Income  and  Corporation  Taxes Act 1988) of that
          person;

          "Audited Financial  Statements" means the audited financial statements
          of the Group delivered,  or as the case may be, to be delivered to the
          Agent pursuant to clause 12.1.6(a) and the related  reconciliation (if
          any) delivered pursuant to clause 12.2.14 in respect of such financial
          statements;

          "Auditors"  means  KPMG  Audit  Plc or  such  other  auditing  firm of
          international standing as may be approved by the board of directors of
          the Parent  (after  prior  consultation  with the Agent) and which has
          agreed to provide the Auditor's Reports;

          "Auditors  Report" means, in respect of any Financial Year, the report
          from the  Auditors  delivered,  or as the case may be, to be delivered
          under clause 12.1.6(e);

          "Authorised  Officer"  means that officer or officers of the Parent or
          the  Swingline  Borrower  authorised  to sign  Drawdown  Notices,  IJC
          Applications and any other notices, requests or confirmations referred
          to in this Agreement or relating to the facilities granted pursuant to
          this Agreement;

          "Availability Period" means, in respect of a Facility, the period from
          the date of this  Agreement  and ending on 8 November  2004 or on such
          earlier  date (if any) on which the  Commitments  in  respect  of that
          Facility are all reduced to zero under or pursuant to this Agreement;

          "Bank  Finance  Documents"  means the Credit  Documents,  the Security
          Documents and any other documents which the Agent and the Parent agree
          shall be Bank Finance Documents;

          "Bank Finance Parties" means the Agent, the Arrangers,  the Banks, the
          Swingline  Bank,  the  Overdraft  Bank,  the Security  Trustee and the
          Common Security Trustee;

          "Banking  Day" means a day (other  than a Saturday or Sunday) on which
          banks are open for general business in London and New York City, and:

                                        2
<PAGE>

          (a)  in relation to any date for payment or purchase of euro, which is
               also a TARGET Day; and

          (b)  in  relation  to any date for  payment or purchase of an Optional
               Currency other than euro, the principal  financial  centre in the
               jurisdiction of the Optional Currency concerned;

          "Banks" means the banks and financial  institutions listed in Schedule
          2 and includes their successors in title and Substitutes;

          "Bid  Bond"  means  a bid,  performance  or  advance  payment  bond or
          guarantee issued by a financial institution to a client or prospective
          client of a member  of the Group in  connection  with a  contract  for
          which that member of the Group is bidding or which has been awarded to
          that member of the Group;

          "Borrowed  Money" means  Indebtedness in respect of (i) money borrowed
          or raised and debit balances at banks, (ii) any amount raised pursuant
          to  any  note  purchase  facility  or  the  issue  of  bonds,   notes,
          debentures,   loan  stock  or  any  similar   instrument,   (iii)  any
          counter-indemnity  obligation  in respect of a  guarantee,  indemnity,
          bond,  standby or documentary letter of credit or any other instrument
          issued  by  a  bank  or  financial  institution,  (iv)  acceptance  or
          documentary  credit  facilities,  (v)  receivables  sold or discounted
          (otherwise than on a non-recourse  basis),  (vi) deferred payments for
          assets or services  acquired  where the  deferred  payment is arranged
          primarily as a method of raising  finance or financing the acquisition
          of the asset or services  acquired  (excluding  credit  granted in the
          ordinary  course of trading for a period not exceeding 120 days (or in
          the case of  Greece,  Spain and  Italy,  not  exceeding  180 days) and
          deferred   consideration   payments  in  respect  of  acquisitions  or
          investments  permitted  in  accordance  with  clause  12.2.6  and  the
          deferred consideration  obligations set out in Schedule 13), (vii) the
          capital element of Finance Leases and hire purchase contracts,  (viii)
          (except for the  purposes of the  definition  of  "Consolidated  Gross
          Borrowings"  and  clause  14.1.5)  Derivatives  Contracts,   (ix)  any
          preference  or  other  shares  which  are  mandatorily  redeemable  or
          redeemable  at the  option  of the  holder  Thereof  (other  than  the
          preference  shares listed in Schedule  13), (x) any other  transaction
          (including  without  limitation  forward  sale or purchase  agreements
          where  the  deferred  payment  is  arranged  primarily  as a method of
          raising  finance or financing the acquisition of the asset or services
          acquired)  having the  commercial  effect of a borrowing or raising of
          money or of any of (ii) to (ix) above and (x) guarantees in respect of
          Indebtedness of any person falling within any of (i) to (x) above.

          "Borrowers" means the Parent, the Original  Borrowers,  the Additional
          Borrowers   and/or  the  Swingline   Borrower   and/or  the  Overdraft
          Borrowers, as the context requires;

          "Borrower Accession Agreement" means a borrower accession agreement in
          the form of part A of Schedule 8;

          "Bridge   Loan   Agreement"   means   the   loan   agreement   for   a
          (pound)20,000,000  term loan  bridge  facility  dated 4 April 2002 and
          made  between the  Parent,  the  Arrangers,  the Agent,  the  Security
          Trustee and the Banks;

          "Capital Expenditure" means any expenditure which should be treated as
          capital expenditure in the audited  consolidated  financial statements
          of the Group in accordance with the Appropriate Accounting Principles;

          "Capitalised Lease Obligations" means, with respect to any person, any
          rental obligation (including, without limitation, any hire purchase or
          payment  obligation) which, under Appropriate  Accounting  Principles,
          would be  required  to be  treated  as a  Finance  Lease or  otherwise
          capitalised  on the  books of such  person,  in  accordance  with such
          principles;

          "Cash  Collateral  Account" has the meaning  given to it in the Common
          Security Trust Deed;

                                        3
<PAGE>

          "Cash Pooling  Arrangements" means arrangements for the pooling of the
          balances of any two or more Group  members' bank accounts  pursuant to
          which  arrangements  any such member of the Group  grants a guarantee,
          rights of set-off or any other  Encumbrance  or transfers cash between
          the relevant bank accounts pursuant to an intra-Group loan;

          "Code"  means  the  United  States  Internal  Revenue  Code of 1986 as
          amended from time to time, and the regulations promulgated and rulings
          issued thereunder;

          "Change of Control"  occurs where a person  (whether alone or together
          with  any  Associated  Person  or  Associated   Persons)  becomes  the
          beneficial  owner of shares in the issued share  capital of the Parent
          carrying the right to exercise more than 50% of the votes  exercisable
          at a general  meeting  of the  Parent or more than one half in nominal
          value of the equity share capital of the Parent;

          "Collateral Instruments" means notes, bills of exchange,  certificates
          of  deposit  and  other  negotiable  and  non-negotiable  instruments,
          guarantees,  and any other  documents or instruments  which contain or
          evidence an obligation (with or without security) to pay, discharge or
          be  responsible   directly  or  indirectly  for  any  Indebtedness  or
          liabilities  of any Borrower or any other  person  liable and includes
          Encumbrances;

          "Commitment"  means,  in  relation  to a Bank  and in  respect  of the
          Revolving  Credit  Facility,  at any  relevant  time  the  amount  set
          opposite  its name in relation  to the  Revolving  Credit  Facility in
          Schedule 2 and/or, in the case of a Substitute,  the amount novated in
          relation to the Revolving Credit Facility as specified in the relevant
          Substitution  Certificate,  as reduced,  in each case, by any relevant
          term  of  this  Agreement  and so  that,  if at such  time  the  Total
          Commitments  have  been  reduced  to  zero,  references  to  a  Bank's
          Commitment shall be construed as a reference to that Bank's Commitment
          immediately  prior to such  reduction  to zero and, in relation to the
          Swingline  Bank and the  Overdraft  Bank,  their  obligations  to make
          available   the   Swingline   Facility  or  the   Overdraft   Facility
          respectively;

          "Common  Security Trust Deed" means the common  security trust deed to
          be entered into on or about the date of the Restructuring Deed between
          (inter alia) the Common Security  Trustee,  the Parent,  the Obligors,
          the Noteholders and the Bank Finance Parties;

          "Common  Security  Trustee"  means  HSBC  Investment  Bank plc and its
          successors  in title in its  capacity  as security  trustee  under the
          Common  Security  Trust Deed and the  lntercreditor  Agreement or such
          other person as is, from time to time,  appointed as security  trustee
          pursuant to the Common Security Trust Deed;

          "Compliance Certificate" means a certificate substantially in the form
          set out in  Schedule 10 as to the  compliance  or  otherwise  with the
          Financial Covenants set out in clause 13.1;

          "Consolidated   EBITDA"   means,   in  respect  of  any  period,   the
          consolidated trading profits, but before:

          (a)  exceptional  items and  extraordinary  items (each as  separately
               identified in the relevant profit and loss account);

          (b)  profits and losses on disposals of capital assets;

          (c)  amortisation of goodwill and other intangible assets;

          (d)  depreciation and impairment;

          (e)  Consolidated Gross Interest  Expenditure and interest received or
               receivable; and

          (f)  Taxes;

                                        4
<PAGE>

          of the Group  for such  period  and  after  taking  into  account  the
          applicable  share of any profit or loss of any joint  venture or other
          person which is not a Subsidiary of the Parent and after deducting (to
          the  extent  otherwise  included)  profits  (or  adding  back  losses)
          attributable  to minority  interests in members of the Group and after
          deducting (to the extent not otherwise deducted) Property Payments;

          "Consolidated  Excess Cash Flow"  means,  in respect of any  Financial
          Year, the Consolidated EBITDA of the Group for such period:

          after the addition of (if not already added):

          (a)  cash  dividends  received from  investments in joint ventures and
               other  persons  which are not  Subsidiaries  of the Parent (after
               Taxes);

          (b)  Tax  rebates  received  in cash  which the Group is  entitled  to
               retain; and

          (c)  any other  non-cash  items  expensed in arriving at  Consolidated
               EBITDA,

          after the deduction of (if not already deducted):

          (i)  payments in respect of Capital Expenditure;

         (ii)  payments of cash exceptional and extraordinary items;

        (iii)  Group Taxes paid;

         (iv)  any other  non-cash  items  credited in arriving at  Consolidated
               EBITDA,

          (v)  Consolidated Net Interest Expenditure;

         (vi)  all cash dividends paid by the Parent and all cash dividends paid
               in respect of minority interests in other members of the Group;

         (vii) all  repayments  and  prepayments  of the Notes  and all  amounts
               applied in repayment and  cancellation  of the Facilities  (where
               crediting  cash  to  a  Cash  Collateral   Account  pending  such
               application is deemed to be such an actual prepayment) except for
               mandatory   repayments  or  prepayments  of  the  Notes  and  the
               Facilities  under,  and in  accordance  with,  clause  8.6 to the
               extent that the proceeds from the relevant transaction which give
               rise  to  such   repayments  or   prepayments   are  excluded  in
               determining Consolidated EBITDA for the period;

        (viii) the principal  amount of rental  payments of Capitalised  Lease
               Obligations;

          (ix) all   cash   consideration   paid  for   Permitted   Acquisitions
               (including,  without  limitation, by way of earnouts or  deferred
               consideration); and

          (x)  all  amounts  paid  in  connection  with  employee  share  option
               schemes,

          and excluding the applicable  share of any loss or profit of any joint
          venture  or other  person  which  is not a  Subsidiary  of the  Parent
          included in arriving at Consolidated EBITDA,

          in each  case  for,  or  paid  during,  such  Financial  Year  and all
          calculated on a consolidated basis;

          "Consolidated  Gross  Borrowings"  means the  aggregate  principal  or
          capital amount of all Borrowed Money incurred by the Group  (including
          any fixed or  minimum  premium  payable on final  repayment)  plus the
          aggregate   principal   element  of  Borrowed  Money  secured  by  any
          Encumbrance over all or any part of the undertaking, property, assets,
          rights or revenues of any member of the Group except that:

                                        5
<PAGE>

          (a)  moneys owing by one member of the Group to another  member of the
               Group shall not be taken into account;

          (b)  to avoid double  counting,  no guarantee of a liability  which is
               already taken into account shall itself be taken into account;

          (c)  no  liability  shall be taken into  account more than once in any
               computation;

          (d)  Consolidated  Gross  Borrowings  expressed  in or  calculated  by
               reference to a currency  other than  Sterling  shall be converted
               into  Sterling by reference  to the rate of exchange  used by the
               Parent for the conversion of such currency in accordance with the
               management policy of converting such amounts on a daily basis or,
               if the relevant currency was not thereby  involved,  by reference
               to the rate of exchange or approximate rate of exchange ruling on
               such date and determined on such basis as the Agent may determine
               or approve;

          (e)  the principal amount of Consolidated  Gross Borrowings  deemed to
               be  outstanding  in relation to Finance  Leases or hire  purchase
               agreements  shall be the present  value of the  minimum  lease or
               hire  payments  discounted  at the interest  rate implicit in the
               relevant lease or hire purchase agreement;

          (f)  Indebtedness in respect of cash collateralised  guarantees issued
               by a Bank or any of its  associates  on  behalf  of the  Group to
               media authorities shall not be taken into account;

          (g)  Indebtedness of the Group in respect of the guarantees  issued by
               banks on behalf of the  Group to media  authorities  in Korea and
               the United Kingdom shall not be taken into account; and

          (h)  debit  balances at any bank or  financial  institution  under the
               cash  management  arrangements  of the Group  shall be taken into
               account  net of the credit  balances of the Group at such bank or
               financial institution to the extent that such credit balances are
               subject to contractual  set-off against such debit balances (both
               before  and  after   insolvency)   under  such  cash   management
               arrangements;

          "Consolidated  Gross  lnterest  Expenditure"  means,  in  respect of a
          period, the aggregate amount  (calculated on a consolidated  basis) of
          all  continuing,  regular or  periodic  costs,  charges  and  expenses
          accrued   during  that  period  in  respect  of   Consolidated   Gross
          Borrowings, including:

          (a)  any acceptance commission paid or payable in respect of any bills
               of exchange or other negotiable instruments;

          (b)  any initial issue discount allowed on the issue of debentures (to
               the extent  relating to that period when  amortised over the term
               of such debentures); and

          (c)  the  interest  component of rentals  under  Finance  Leases,

          but excluding:

          (i)  arrangement  and  other  one-off  fees  (including  the fees (and
               interest  thereon) referred to in clauses 9.1.8 and 9.1.9 and the
               PIK  Management  Fee (as defined in the Amended and Restated Note
               Purchase Agreement) in respect of the Notes pursuant to the terms
               of the Amended and  Restated  Note  Purchase  Agreement),  to the
               extent  relating to that period when  amortised  over the term of
               the relevant Consolidated Gross Borrowings; and

          (ii) amounts  discounted  for FRS12 or SSAP24  purposes to the extent
               they are non-cash items;

                                        6
<PAGE>

          "Consolidated Net Interest Expenditure" means, in respect of a period,
          the Consolidated  Gross Interest  Expenditure  accrued for that period
          net of credit interest accrued by the Group during such period;

          "Consolidated  Net Worth" means,  as at the date of any  determination
          thereof,  the  consolidated  total  capital and  reserves of the Group
          shown  in the  latest  consolidated  balance  sheet  of the  Group  as
          determined in accordance  with the Appropriate  Accounting  Principles
          and as  adjusted  by  adding  back any write  off or  amortisation  of
          acquisition  goodwill  and  any  acquisition  goodwill  debited  to  a
          reserve;

          "Contribution"  means, in relation to a Bank, (i) the principal amount
          of the Revolving  Credit  Advances  owing to such Bank at any relevant
          time  (or,  if the  context  requires,  the  Sterling  Amount  of such
          Revolving  Credit Advances) and (ii) the principal amount paid by such
          Bank under the  indemnities  contained in clauses 6 and 7 for which it
          has not been reimbursed at any relevant time by the relevant Borrower;

          "Control  Event"  means (A) the  announcement,  by or on behalf of any
          person Associated Person or Persons, in accordance with Rule 25 of the
          City Code on  Takeovers  and Mergers,  of a firm  intention to make an
          offer to the  holders  of the  ordinary  shares of the  Parent or of a
          proposal  for a scheme of  arrangement,  which offer or  proposal,  if
          accepted or approved (as the case may be) by the  requisite  number(s)
          of holders  and if the other  conditions  thereto  were  satisfied  or
          waived,  would  result in a Change of  Control or (B) the making of an
          offer to the  holders  of the  ordinary  shares  of the  Parent or the
          proposing  of a scheme of  arrangement,  which offer or  proposal,  if
          accepted or approved (as the case may be) by the  requisite  number(s)
          of holders  and if the other  conditions  thereto  were  satisfied  or
          waived, would result in a Change of Control (but, for the avoidance of
          doubt,  "Control Event" shall not include any preliminary  approach or
          negotiations by any person or group of person to or with the Parent in
          respect of any such offer);

          "Credit Documents" means this Agreement,  the Restructuring  Deed, the
          letters  entered into from time to time by the Parent  setting out the
          terms of any fees to be paid by the Parent to a Bank Finance  Party in
          connection with the Facilities,  the  Substitution  Certificates,  the
          Borrower  Accession  Agreements,   the  Overdraft  Borrower  Accession
          Agreements and any other  documentation from time to time entered into
          between the Overdraft Borrowers and the Overdraft Bank relating to the
          Overdraft Facility;

          "D" means Diamond Ad Ltd;

          "D Acquisition" means the acquisition of D, a company  incorporated in
          the Republic of Korea;

          "D  Group"  means  D and  its  Subsidiaries  as at the  date  of  this
          Agreement;

          "Dangerous Substance" means any radioactive  emissions,  noise and any
          natural or  artificial  substance (in whatever  form) the  generation,
          transportation,  storage, treatment, use or disposal of which (whether
          alone or in combination with any other substance) gives rise to a risk
          of causing  harm to man or any other  living  organism or damaging the
          Environment   or  public   health  or  welfare,   including   (without
          limitation) any controlled,  special, hazardous, toxic, radioactive or
          dangerous waste;

          "Default"  means any  Event of  Default  or any event or  circumstance
          which  would,  upon the  giving of a notice by the  Agent  and/or  the
          expiry of the  relevant  period  and/or  the  fulfilment  of any other
          condition  (in each case as specified in clause  14.1),  constitute an
          Event of Default;

          "Derivatives  Contract"  means a contract,  agreement  or  transaction
          which is:

          (a)  a  rate  swap,   basis  swap,   commodity   swap,   forward  rate
               transaction,  commodity option, equity (or equity or other index)
               swap or  option,  bond  option,  interest  rate  option,  foreign
               exchange  transaction,  cap,  collar  or  floor,  currency  swap,
               currency option or any other similar transaction; and/or

                                        7
<PAGE>

          (b)  any combination of such transactions,

          in each case, whether on-exchange or otherwise;

          "Dollars"  and "$" mean the lawful  currency  of the United  States of
          America and in respect of all payments to be made under this Agreement
          in Dollars  mean funds  which are for same day  settlement  in the New
          York  Clearing  House  lnterbank  Payments  System (or such other U.S.
          dollar  funds  as  may at the  relevant  time  be  customary  for  the
          settlement of International  banking transactions  denominated in U.S.
          dollars);

          "Drawdown Date" means the date, being a Banking Day falling within the
          Availability  Period of the relevant Facility,  on which an Advance is
          or is to be drawn down;

          "Drawdown  Notice" means a notice in the form or  substantially in the
          form of part A of Schedule 3, duly completed  with  particulars of the
          relevant Advance;

          "Encumbrance" means any mortgage,  charge (whether fixed or floating),
          pledge,  lien,  hypothecation,  assignment  by way of security,  trust
          arrangement  for the purpose of providing  security or other  security
          interest  of any kind  securing  any  obligation  of any person or any
          other  arrangement  having the effect of conferring  rights of set-off
          and includes any agreement to create any of the foregoing;

          "Environment"  means  all,  or any  of,  the air  (including,  without
          limitation,  the air within buildings and the air within other natural
          or  man-made  structures  above or below  ground),  water  (including,
          without  limitation,  ground and surface  water) and land  (including,
          without limitation, buildings, surface and sub-surface soil);

          "Environmental Claim" means any claim by any person:

          (a)  in respect of any loss or liability  suffered or incurred by that
               person  as a result of or in  connection  with any  violation  of
               Environmental Law; or

          (b)  that arises as a result of or in  connection  with  Environmental
               Contamination  and that  could give rise to any remedy or penalty
               (whether  interim or final)  that may be  enforced or assessed by
               private  or  public  legal  action  or  administrative  order  or
               proceedings;

          "Environmental  Contamination"  means each of the  following and their
          consequences:

          (a)  any  release,  discharge,  emission,  leakage or  spillage of any
               Dangerous  Substance at or from any site owned,  occupied or used
               by any member of the Group into any part of the Environment; or

          (b)  any accident,  fire, explosion or sudden event at any site owned,
               occupied  or used by any member of the Group which is directly or
               indirectly caused by or attributable to any Dangerous  Substance;
               or

          (c)  any other pollution of the Environment at or from any site owned,
               occupied or used by any member of the Group;

          "Environmental  Law" means all laws  (including,  without  limitation,
          common law), regulations,  directives,  codes of practice,  circulars,
          guidance  notices  and the like having  legal  effect  concerning  the
          protection of human health,  the  Environment,  the  conditions of the
          work place or the generation,  transportation,  storage,  treatment or
          disposal of Dangerous Substances and in the case of codes of practice,
          circulars,  guidance  notices and the like with which it is  customary
          for  persons  carrying  on a similar  business  to the Group to comply
          with;

          "Environmental  Licence"  means  any  authorisation  required  by  any
          Environmental Law;

          "equity  share  capital" has the meaning given to it in Section 744 of
          the Companies Act 1985;

                                        8
<PAGE>

          "ERISA" means the Employee  Retirement  Income Security Act of 1974 of
          the United  States of America,  as amended from time to time,  and the
          regulations promulgated and rulings issued thereunder;

          "ERISA Affiliate" means any corporation or trade or business which for
          purposes of Title IV of ERISA is a member of the same controlled group
          as any member of the Group, or is under common control with any member
          of the Group,  within the meaning of Section 414(b) or (c) of the Code
          and the regulations promulgated and rulings issued thereunder;

          "ERISA Event" means (i)(A) any reportable event, as defined in Section
          4043(c) of ERISA and the regulations issued  thereunder,  with respect
          to a  Plan,  as to  which  PBGC  has  not  by  regulation  waived  the
          requirement  of Section  4043(a) of ERISA that it be  notified  within
          thirty days of the  occurrence of such event  (provided that a failure
          to meet the  minimum  funding  standard  of Section 412 of the Code or
          Section 302 of ERISA shall be a  reportable  event for the purposes of
          this paragraph regardless of the issuance of any waivers in accordance
          with  Section  412(d)  of  the  Code);  or  (B)  the  requirements  of
          subsection  (1) of Section  4001(a)(13)  of ERISA  (without  regard to
          subsection (2) of such Section) are met with respect to a contributing
          sponsor,  as defined in Section 4001(aXl3) of ERISA, of a Plan, and an
          event described in paragraph (9), (10),  (11), (12) or (13) of Section
          4043(c) of ERISA is reasonably  expected to occur with respect to such
          Plan  within  the  following  30 days;  (ii) the filing of a notice of
          intent to terminate  any plan under  Section  4041(a)(2) of ERISA in a
          distress  termination  under  Section  4041(c)  of  ERISA;  (iii)  the
          institution by PBGC of proceedings under Section 4042 of ERISA for the
          termination  of, or the  appointment of a trustee to  administer,  any
          Plan;  and (iv) an engagement in a non-exempt  prohibited  transaction
          within the meaning of Section 4975 of the Code or Section 406 of ERISA
          with  respect  to any plan,  which upon the  occurrence  of any of the
          events  described in paragraphs  (i) to (iv)  (inclusive)  above would
          reasonably be expected to result in a material liability of any member
          of the Group or any ERISA Affiliate;

          "EURIBOR" means in relation to a particular period:

          (a)  the percentage  rate per annum which is sponsored by the European
               Banking  Federation  and which  appears on Telerate  page 248 (or
               such other page as may replace such page 248 on such system or on
               any other  system of the  information  vendor  for the time being
               designated  by the  Federation  de  l'Union  Europeene  to be the
               official  collector,  calculator  and  distributor  of  the  Euro
               Interbank Offered Rate); or

          (b)  if no such rate appears on that Telerate  Screen,  the arithmetic
               mean (founded  upward,  if necessary,  to five decimal places) of
               the rates as supplied to the Agent at its request,  quoted by the
               EURIBOR  Reference Banks to leading banks in the interbank market
               for euro of any participating member state(s),

          at or about 11:00 am Central  European Time on the  Quotation  Date of
          such  period  for the  offering  of  deposits  in  euro  in an  amount
          approximately  equal to the amount in relation to which  EURIBOR is to
          be determined for a period equivalent to such period;

          "EURIBOR  Reference  Banks" means the principal London offices of HSBC
          Bank plc and The Bank of New York and/or any other Banks  appointed as
          such  pursuant  to clause  19.15 and their  respective  successors  in
          title;

          "euro" means the single currency of Participating Member States of the
          European   Union;

          "Euro-Zone" means each country which is a Participating Member State;

          "Event of Default" means any of the events or circumstances  described
          in clause 14.1;

          "Expiry Date" means, in relation to a Swingline Letter of Credit,  the
          date expressed by the terms of such  Swingline  Letter of Credit to be
          the date upon which such Swingline Letter of Credit expires;

                                        9
<PAGE>

          "External  Refinancing"  means the  borrowing  or raising of  Borrowed
          Money (including,  without limitation,  any public or private issue of
          debt  securities) by any member of the Group with a view,  inter alia,
          to  the  repayment  and  cancellation  of  any  amount  of  any of the
          Facilities;

          "Facilities"  means  the  Revolving  Credit  Facility,  the  Swingline
          Facility  and the  Overdraft  Facility  and (as the context  requires)
          "Facility" means any of them;

          "Facilities   Group"  means  Facilities   Group  Limited,   a  company
          incorporated in England and Wales with registered no. 00294029;

          "Facilities  Group Joint  Venture  Agreement"  means the Joint Venture
          Agreement dated 11 December 1997 between the Parent and Publicis Group
          S.A. relating to Facilities Group;

          "Federal Funds Rate" means,  in relation to a Swingline  Advance and a
          day in a Swingline  Term relating  thereto or in relation to an unpaid
          sum in  respect  of a  Swingline  Advance  and a day on which  any sum
          remains outstanding,  the rate per annum equal to the weighted average
          of the rates on overnight  Federal funds  transactions with members of
          the United States  Federal  Reserve  System  arranged by Federal funds
          brokers, as published for that day (or if such a day is not a New York
          Banking Day, for the  immediately  preceding  New York Banking Day) by
          the  Federal  Reserve  Bank of New York  or,  if such a rate is not so
          published  for any day which is a New York Banking Day, the average of
          the  quotations  for that day for such  transactions  received  by the
          Swingline Bank from three Federal funds brokers of recognised standing
          selected by the Swingline Bank in consultation with the Borrowers;

          "Finance  Documents"  means the Bank Finance  Documents  and the Notes
          Finance Documents;

          "Finance  Lease" means a lease treated as a finance lease  pursuant to
          the Appropriate Accounting Principles (including SSAP 21);

          "Finance  Parties" means the Bank Finance Parties and the Noteholders;

          "Financial Covenants" means the financial undertakings in clause 13.1;

          "Financial  Covenants  test  date"  means  any  date  upon  which  the
          Financial Covenants are, or are to be tested, pursuant to clause 13;

          "Financial  Definitions"  means the  definitions  of  Borrowed  Money,
          Capital  Expenditure,  Capitalised  Lease  Obligations,   Consolidated
          EBITDA,  Consolidated  Gross Borrowings,  Consolidated  Gross Interest
          Expenditure,  Consolidated Net Interest Expenditure,  Consolidated Net
          Worth, Finance Leases, Property Payments and Taxes;

          "Financial  Model" means the agreed form financial model for the Group
          prepared  by the  Parent  to be used by the  Finance  Parties  for the
          purposes of the Restructuring;

          "Financial  Year" means each fiscal period for the Group  beginning on
          1st January and ending on 31 December in that year;

          "Flotation"  means the  inclusion of any part of the share  capital of
          any member of the Group  (other  than the Parent) or Zenith (or any of
          its  Subsidiaries) in the Official List of the UK Listing Authority or
          the  grant  of  permission  to  deal in the  same  in the  Alternative
          Investment  Market or the European  Association  of Dealers  Automated
          Quotation or on any other recognised investment exchange (as that term
          is used in the  Financial  Services  Act  1986) or in or on any  other
          exchange  or  recognised  market  replacing  any of the same or on any
          other exchange or recognised market in any country;

          "Funders" means the Banks, the Swingline Bank and the Overdraft Bank;

                                       10
<PAGE>

          "Funding Cost" means (i) in respect of Revolving Credit Advances made,
          or to be made, in euro, EURIBOR or (ii) in respect of Revolving Credit
          Advances  made,  or to be made,  in Sterling or any Optional  Currency
          (other than euro), LIBOR;

          "Group"  means the Parent and its  Subsidiaries  from time to time and
          "member of the Group" means any one of them;

          "Group Structure  Charts" means the charts,  in the agreed form, which
          set out the structure of the Group;

          "Guarantee" means an Original Guarantee,  a New Guarantee or any other
          guarantee which may be entered into from time to time in favour of the
          Common Security  Trustee in the agreed form or in a form acceptable to
          the Agent (acting reasonably) including those guarantees to be entered
          into  under  clause  12.1.19  (and  "Guarantees"  shall  be  construed
          accordingly);

          "Guarantor   Group"  means  those  members  of  the  Group  which  are
          Guarantors and "member of the Guarantor Group" means any of them;

          "Guarantors" means the (a) Original Guarantors, (b) the New Guarantors
          and (c) any  other  member  of the  Group  which may from time to time
          enter into a Guarantee  but only if (i) it has issued a  guarantee  in
          respect of the amounts from time to time  expressed to be  outstanding
          under the Finance  Documents and, if it is  incorporated  or formed in
          England and Wales,  it has given a fixed and floating  charge over all
          or substantially all of its assets and  undertakings,  in each case in
          accordance  with this  Agreement  and the  principles  in the Security
          Memorandum, and (ii) an Encumbrance over the shares or other ownership
          interests  in such  person  has been  granted  in favour of the Common
          Security  Trustee for the benefit of the Finance Parties in accordance
          with this Agreement and the Security Memorandum;

          "Hedging  Strategy"  means the strategy for interest  rate  protection
          arrangements and foreign exchange  protection  arrangements set out in
          the Hedging Strategy Letter;

          "Hedging  Strategy  Letter"  means the  letter  from the Parent to the
          Agent relating to hedging dated 14 February 2001;

          "Holding  Company" means, in relation to a person,  an entity of which
          that person is a Subsidiary;

          "Indebtedness"  means any  obligation  for the payment or repayment of
          money,  whether  as  principal  or as surety  and  whether  present or
          future, actual or contingent;

          "Index of Management  Discussion  and Analysis"  means the agreed form
          index setting out the type of discussion and analysis of the financial
          statements that will be provided with the Monthly Management  Accounts
          and Quarterly Management Accounts;

          "Information  Disclosure  for  Lenders"  means  the  bundle  of papers
          entitled the lnformation Disclosure for Lenders dated 14 December 2001
          distributed  on behalf of the Parent to the Banks in  relation  to the
          Restructuring;

          "Information   Memorandum"  means  each  version  of  the  Information
          Memorandum  distributed  by the Arrangers at the request of the Parent
          in connection with this Agreement;

          "Information  Package" means the  Information  Disclosure for Lenders,
          the  Accountant's  Report,  the Financial  Model,  the Group Structure
          Charts,  the  Guarantor  Group  Revenue  & EBITDA  Analysis  (as at 31
          January 2002) dated 1 February 2002, the Earnout Projections - 2002 to
          2004 (as at 31 December  2001)  dated 4 February  2002,  the  Customer
          Memorandum  dated 31 January 2002 and the  presentation  documentation
          provided  by the  Parent  with its  presentation  on or about 19 March
          2002;

          "Intellectual  Property Rights" means any patent,  trade mark, service
          mark,  registered design, trade name or copyright required to carry on
          the business of any member of the Group;

                                       11
<PAGE>

          "Intercreditor  Agreement" means the  intercreditor  agreement entered
          into on or about the date of the  Restructuring  Deed  between,  among
          others, the Obligors and the Finance Parties;

          "L/C Application"  means a request from the Swingline Borrower to open
          a  Swingline  Letter  of  Credit,  such  notice  to be in the  form or
          substantially in the form of part B of Schedule 3;

          "L/C Issue  Date" means the date,  being a Banking Day falling  within
          the Availability Period, when a Swingline Letter of Credit is or is to
          be issued;

          "LIBOR"  means,  in  relation  to a  particular  period,  the rate for
          deposits of the  relevant  currency  for a period  equivalent  to such
          period at or about 11 a.m.  (London  time) on the  Quotation  Date for
          such period as  displayed  on Telerate  page 3750 (or, as the case may
          be, 3740) (British Banker's Association Interest Settlement Rates) (or
          such other page as may replace such page 3750 (or, as the case may be,
          3740) on such system or on any other system of the information  vendor
          for the time being designated by the British  Bankers'  Association to
          calculate  the BBA  Interest  Settlement  Rate (as  defined in British
          Bankers'  Association's  Recommended  Terms and  Conditions  ("BBAIRS"
          terms) dated  August,  1985)),  provided  that if on such date no such
          rate is so  displayed,  LIBOR for such period shall be the  arithmetic
          mean (rounded upward if necessary to five decimal places) of the rates
          as supplied to the Agent at its request quoted by the Reference  Banks
          to leading  banks in the London  Interbank  Market for deposits of the
          relevant  currency in an amount  approximately  equal to the amount in
          relation to which LIBOR is to be determined for a period equivalent to
          such period at or about 11 a.m. on the Quotation Date for such period;

          "LIBOR  Reference  Banks" means the principal  London  offices of HSBC
          Bank plc and The Bank of New York and/or any other Banks  appointed as
          such  pursuant  to clause  19.15 and their  respective  successors  in
          title;

          "Lighthouse"   means   Lighthouse   Global  Network  Inc.,  a  company
          incorporated under the laws of the State of Delaware;

          "Lighthouse  Acquisition"  means  the  acquisition  by the  Parent  of
          Lighthouse by means of a merger involving a  share-for-share  exchange
          upon substantially the terms described in the Press Announcement;

          "Majority  Banks" means, at any relevant time, Banks (a) the aggregate
          of whose  Contributions  in respect of the Revolving  Credit  Facility
          exceeds 66 2/3 per cent of the Revolving Credit Advances or (b) (if no
          Revolving  Credit Advances are  outstanding  under this Agreement) the
          aggregate  of whose  Commitments  exceeds 66 2/3 per cent of the Total
          Commitments  (or, if the Total  Commitments have been reduced to zero,
          66 2/3 per cent. of the Total  Commitments  immediately  prior to such
          reduction);

          "Margin" means 3.25% per annum;

          "Material  Adverse  Effect" is a  reference  to any  effect,  event or
          circumstance (on its own or in combination  with other effect,  events
          or circumstances):

          (a)  which is, or is reasonably  likely to be,  materially  adverse to
               (i) the ability of any Obligor to perform any of its  obligations
               under any of the Bank  Finance  Documents  or (ii) the  business,
               assets or financial condition of the Group taken as a whole; or

          (b)  which  results in, or is  reasonably  likely to result in, any of
               the Bank Finance Documents not being legal, valid and binding on,
               and,  enforceable  substantially  in accordance  with their terms
               against, any party thereto;

          "Material  Subsidiary" means any member of the Group which is party to
          any Bank  Finance  Documents or is a party to the Amended and Restated
          Note Purchase Agreement or a "Subsidiary Guarantor" (as defined in the
          Amended and Restated Note Purchase  Agreement) or any other Subsidiary
          of the Parent:

                                       12
<PAGE>

          (a)  whose EBITDA, together with that of its Subsidiaries, is equal to
               or exceeds 3 per cent.  of the  Consolidated  EBITDA of the Group
               (where EBITDA shall be construed appropriately in respect of such
               member of the Group (and its  Subsidiaries)  by  reference to the
               definition of Consolidated EBITDA); or

          (b)  whose gross revenues, together with those of its Subsidiaries, is
               equal  to or  exceeds  3 per  cent.  of  the  consolidated  gross
               revenues of the Group; or

          (c)  to which has been  transferred  (whether by one  transaction or a
               series of transactions,  related or not) all or substantially all
               of the assets of another  member of the Group which,  immediately
               prior  to that  transaction  or any of the  transactions  in that
               series, was a Material  Subsidiary as determined under paragraphs
               (a) or (b) above; or

          (d)  which is a holding  company of a Material  Subsidiary  determined
               under paragraphs (a) to (c) above,

          as  determined  by reference to the then latest  Quarterly  Management
          Accounts   delivered  under  clause  12.1.6(b),   the  latest  Audited
          Financial  Statements  delivered under clause 12.1.6(a) and such other
          financial statements of the relevant members of the Group (prepared on
          the same basis as the  financial  statements  delivered in  accordance
          with  clause  12.1.6 in respect of the same period to which such other
          financial  statements  relate)  as  are  necessary  for  the  relevant
          Compliance  Certificate  or Auditors'  Report to be duly completed and
          delivered in accordance with clauses 12.1.6(d) and 12.1.6(e), provided
          that (i) in the case of a member of the Group  acquired  after the end
          of the period to which the then  latest  financial  statements  of the
          Group delivered under clause 12.1.6(a) or (b) relate, the reference to
          such  then  latest   financial   statements   shall  (until  financial
          statements  have been  delivered  under such clauses for the period in
          which  such  acquisition  is made) be  deemed to be a  reference  to a
          consolidation   (in  accordance   with  the   Appropriate   Accounting
          Principles)  of such then latest  financial  statements and the latest
          financial  statements  of such  acquired  member of the Group for such
          period and (ii) a report of the Auditors to the Bank  Finance  Parties
          that a Subsidiary of the Parent is or is not a Material Subsidiary (in
          accordance  with  this  definition)  when  delivered  (as  part of the
          Auditors'  Report or otherwise) shall be conclusive and binding on the
          parties hereto;

          "month" or "months" means a period beginning in one calendar month and
          ending in the relevant  later  calendar  month on the day  numerically
          corresponding  to the day of the  calendar  month in which it started,
          provided  that (i) if the period  started on the last Banking Day in a
          calendar month or if there is no such numerically  corresponding  day,
          it shall end on the last Banking Day in such later  calendar month and
          (ii) if such numerically  corresponding  day is not a Banking Day, the
          period  shall  end on the next  following  Banking  Day in such  later
          calendar month but if there is no such Banking Day it shall end on the
          preceding Banking Day and "monthly" shall be construed accordingly;

          "Monthly Management Accounts" means the monthly management accounts of
          the Group  delivered  or to be  delivered,  to the Agent  pursuant  to
          clause 12.1.6(c);

          "M.O.U."  means  the  Memorandum  of  Understanding   between  Hyundai
          Merchant  Marine Co. Limited and Mr. Mong Hun Chang,  as sellers,  and
          the Parent relating to the D Acquisition;

          "Multiemployer  Plan"  shall  have  the  meaning  set  out in  section
          4001(a)(3) of ERISA;

          "Net Derivatives  Liability" means, at any time, the net liability (if
          any) at such  time of the  members  of the  Group  taken as a whole in
          respect  of  Derivatives  Contracts  determined  by  reference  to the
          amounts  (as  determined  by the  Agent)  which  would be  payable  or
          receivable  by the members of the Group  pursuant to the terms of such
          Derivatives Contracts if such Derivatives Contracts were terminated at
          such time;

                                       13
<PAGE>

          "Net Proceeds"  means,  in respect of a disposal of an asset or any of
          the matters  referred to in clause 8.6.3,  the full amount of proceeds
          received  by a  member  of the  Group  in  respect  thereof  less  the
          reasonable  costs  incurred  by the  relevant  member  of the Group in
          relation thereto for which purpose (a) such proceeds shall be taken to
          include,  in addition to  consideration  directly  attributable to the
          disposal of such asset or such matter, any amount owing to and set-off
          by the relevant  purchaser  or other  relevant  third  party,  (b) any
          proceeds  received  otherwise  than in cash  will  be  treated  as Net
          Proceeds  only  upon the  subsequent  realisation  of cash  from  such
          proceeds  and  (c)  "reasonable  costs  of  disposal  incurred  by the
          relevant member of the Group" includes  reasonable legal fees, agents'
          commissions,  auditors'  fees,  registration  fees and  Taxes  paid or
          properly  provided for in accordance with the  Appropriate  Accounting
          Principles  (where  such Tax is likely to become  payable  within  the
          following 18 months),  or, in the case of any of the matters  referred
          to in clause  8.6.3(a) or (d) only,  where the Parent  demonstrates to
          the  reasonable  satisfaction  of the Agent that such Tax will  become
          payable after such period;

          "New Guarantees" means the various  guarantees entered into by members
          of the Group in satisfaction of the relevant  conditions  precedent to
          the Restructuring Deed;

          "New  Guarantors"  means those  members of the Group who have  entered
          into New Guarantees;

          "New York Banking Day" means a day (other than  Saturday or Sunday) on
          which banks are open for business in New York City;

          "Non-Guarantor  Group" means those  members of the Group which are not
          members of the Guarantor Group and "member of the Non-Guarantor Group"
          means any one of them;

          "Noteholders"  means, at any time, the persons entitled to the benefit
          of the Notes;

          "Notes"  means the 7.61%  Guarantee  Senior Notes due 2011 issued from
          time to time  pursuant to the terms of the Amended and  Restated  Note
          Purchase Agreement;

          "Notes Finance  Documents"  means the Notes,  the Amended and Restated
          Note  Purchase  Agreement,  the Parent  Guarantee  (as  defined in the
          Amended  and  Restated  Note  Purchase   Agreement),   the  Subsidiary
          Guarantees  (as  defined in the  Amended and  Restated  Note  Purchase
          Agreement)  and the Security  Documents to the extent that they secure
          the  obligations  owing to the  Noteholders  under  the  Note  Finance
          Documents;

          "Obligors"  means the  Borrowers,  the  Guarantors and any other party
          (other than any Bank  Finance  Party or any of the  Noteholders)  to a
          Bank Finance Document and "Obligor" means any one of them;

          "Optional Currency" means any currency,  other than Sterling, which is
          freely transferable,  freely convertible into Sterling and dealt in on
          the London Interbank Market or the London foreign exchange market;

          "Original Borrowers" means those companies listed as such in part A of
          Schedule 1;

          "Original  Guarantees"  means  the  guarantees  entered  into  by  the
          Original  Guarantors  prior to the date of the  Restructuring  Deed in
          respect of the amounts from time to time  expressed to be  outstanding
          under this Agreement;

          "Original  Guarantors"  means those companies listed as such in part B
          of Schedule 1;

          "Original Overdraft Borrowers" means those companies listed as such in
          part C of Schedule 1;

          "Outstanding  L/C Liability"  means, in relation to a Swingline Letter
          of Credit  issued or to be issued at any time,  the maximum  aggregate
          amount of the  liability of the  Swingline  Bank under such  Swingline
          Letter of Credit at such time;

                                       14
<PAGE>

          "Overdraft Bank" means HSBC Bank plc of 27-32 Poultry, London EC2P 2BX
          and its successors in title;

          "Overdraft Borrower Accession  Agreement" means an accession agreement
          in the form of part B of Schedule 8;

          "Overdraft  Borrowers" means the Original Overdraft  Borrowers and the
          Additional Overdraft Borrowers;

          "Overdraft   Facility"   means  an   overdraft   facility   of  up  to
          (pound)6,000,000  made  available  to the  Overdraft  Borrowers by the
          Overdraft Bank pursuant to clause 2.1.3;

          "Overdraft  Facility  Amount" means, at any  time,(pound)6,000,000  as
          reduced by any relevant provision of this Agreement;

          "Parent"  means  Cordiant  Communications  Group plc  (Company  number
          1320869),  whose registered office is at 121-141  Westbourne  Terrace,
          London W2 6JR;

          "Participating  Member  State"  means a member  state of the  European
          Union that has  adopted or adopts the single  currency  in  accordance
          with the Treaty;

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

          "Permitted  Acquisitions" means those acquisitions set out in Schedule
          12;

          "Permitted Encumbrances" means:

          (a)  any Encumbrance created pursuant to the terms of the Bank Finance
               Documents;

          (b)  any right of set-off  arising by operation of law in the ordinary
               course of trading;

          (c)  any  Encumbrance  created  in favour of a bank over the  relevant
               bank  accounts in connection  with any bona fide cash  management
               and/or  netting  arrangements  for the Group,  provided that such
               Encumbrance  is granted in  accordance  with  clauses  12.2.6(b),
               12.1.23, 12.2.2 and 12.2.16;

          (d)  any lien arising with respect to Taxes of the Group;

          (e)  any  Encumbrance  which the Agent (acting on the  instructions of
               the Majority  Banks) has at any time in writing agreed shall be a
               Permitted Encumbrance;

          (f)  the  Encumbrances  listed in  Schedule 7 securing  the amount set
               opposite  the  relevant  Encumbrance  in  Schedule  7 but not any
               increase in such amount;

          (g)  any Encumbrance given by a member of the Group in connection with
               bona fide arrangements for the maintenance of media accreditation
               of any  member of the Group  provided  that such  members  of the
               Group  purchase  media  (and  give  such  Encumbrances)  only  in
               accordance with normal industry practice;

          (h)  any  Encumbrance  on  assets  acquired  after  the  date  of this
               Agreement  or on assets of a company  which  becomes a Subsidiary
               after  the date of this  Agreement  (which  Encumbrances  were in
               existence at the date of acquisition  or such company  becoming a
               Subsidiary, but were not created in contemplation thereof) but in
               each case only if the maximum amount thereby  permitted from time
               to time to be secured  has not been  increased  on account of, or
               since the date of, the  acquisition  of such asset or the date on
               which such  company  becomes a Subsidiary  and provided  that the
               same is  discharged  in full  within  30 days of the  date of the
               relevant acquisition or such company becoming a Subsidiary;

                                       15
<PAGE>

          (i)  any  Encumbrance (a "New  Encumbrance")  created by any member of
               the Group in  substitution  for any  Encumbrance  referred  to in
               paragraph (f) above (an "Existing  Encumbrance")  granted by such
               member of the Group  provided that (i) such Existing  Encumbrance
               is irrevocably and  unconditionally  discharged no later than the
               time of creation of the New Encumbrance, (ii) the New Encumbrance
               relates only to the same assets as the Existing  Encumbrance  and
               (iii) the  Indebtedness  secured by the New Encumbrance  does not
               exceed the Indebtedness secured by the Existing Encumbrance;

          (j)  any  Encumbrance  created in favour of a plaintiff or a defendant
               in any action,  or the court or tribunal before which such action
               is brought,  as security for costs for expenses  where any member
               of the Group is  prosecuting or defending such action in the bona
               fide interest of such member and/or any other member of the Group
               provided   that  the  total   amount   secured  does  not  exceed
               (pound)500,000;

          (k)  the trust established in accordance with the terms of the letters
               dated 21st August 1997 to beneficiaries of the support  agreement
               dated 1st October  1987 and made between the Parent and Ted Bates
               Worldwide Inc.;

          (l)  liens  arising by  operation  of law or by way of contract in the
               ordinary  course of  business  to the extent  that the same would
               otherwise  arise  by  operation  of law and are not  incurred  in
               connection with the raising of finance;

          (m)  any  Encumbrance  constituted by a Finance Lease  permitted under
               clause 12.2.2;

          (n)  any  pledge  of  documents  of  title  relevant  to the  asset as
               security for the  liabilities of a member of the Group in respect
               of a documentary credit facility taken out in the ordinary course
               of business;

          (o)  any  retention  of title to goods  supplied  to any member of the
               Group where that  retention  is  required by the  supplier in the
               ordinary course of its trading activities and on customary terms;

          (p)  any  Encumbrance  granted  by a member of the Group over any rent
               deposits  as  security  for  rental  payments  to be made by such
               member of the Group  under or  pursuant  to any lease of premises
               used for its business; and

          (q)  any  Encumbrance not otherwise  permitted  pursuant to paragraphs
               (a)  to  (p)  above  (inclusive)  and  securing  Indebtedness  in
               aggregate not exceeding(pound)2,000,000;

          "Permitted Guarantees" means:

          (a)  any guarantee  created  pursuant to the terms of the Bank Finance
               Documents;

          (b)  any guarantee which the Agent (acting on the  instructions of the
               Majority  Banks)  has at any time in  writing  agreed  shall be a
               Permitted Guarantee;

          (c)  any guarantee  given by a member of the Group of the  obligations
               of any member of the Guarantor  Group,  any guarantee  given by a
               member of the  Non-Guarantor  Group of the obligations of another
               member of the  Non-Guarantor  Group and any  guarantee  permitted
               under clause 12.2.6(b);

          (d)  any guarantee given by any member of the Group listed in Schedule
               9 guaranteeing the amount set opposite the relevant  guarantee in
               Schedule 9 but not any increase in such amount;

                                       16
<PAGE>

          (e)  any guarantee given by a company which becomes a Subsidiary after
               the date of this Agreement  (which  guarantee was in existence at
               the date such company becomes a Subsidiary and was not created in
               contemplation  thereof) but only if the maximum amount guaranteed
               has not been  increased  on account of or since the date on which
               such company  becomes a Subsidiary  and provided that the same is
               discharged  within 30 days of the  relevant  company  becoming  a
               Subsidiary;

          (f)  any guarantee given by a company in the Group in favour of a bank
               in connection with any bona fide cash  management  and/or netting
               arrangements  for the  Group,  provided  that such  guarantee  is
               granted in accordance with clauses 12.2.6(b), 12.1.23, 12.2.2 and
               12.2.16;

          (g)  any guarantee  given by a member of the Group in connection  with
               bona fide arrangements for the maintenance of media accreditation
               of any  member of the Group  provided  that such  members  of the
               Group  purchase  media  (and  give  such   guarantees)   only  in
               accordance with normal industry practice;

          (h)  any indemnity  given by a member of the Group  required by a bank
               as  part of its  normal  terms  and  conditions  for  transacting
               business  indemnifying  such bank against costs and losses it may
               sustain as a  consequence  of  accepting  telephone  or facsimile
               instructions from such member of the Group;

          (i)  any  counter  indemnity  given  by any  member  of the  Group  in
               connection with a Bid Bond; and

          (j)  any guarantee in addition to that  permitted by paragraphs (a) to
               (i) that is permitted pursuant to clause 12.2.2(l);

          "Plan"  means an employee  pension  benefit plan as defined in section
          3(2) of ERISA  established or maintained by any member of the Group or
          any ERISA  Affiliate  or with respect to which any member of the Group
          has any liability  (including any  contingent,  potential or secondary
          liability  under Title IV of ERISA or otherwise)  and which is covered
          by Title IV of ERISA other than a Muliemployer Plan;

          "Press  Announcement"  means a press  announcement  in the agreed form
          relating to the Lighthouse Acquisition;

          "Property  Payments"  means the  aggregate  amount of (i) the payments
          made by any member of the Group pursuant to leases of unoccupied  land
          or  buildings  of which such  member of the Group is a lessor and (ii)
          the amount by which  payments  under a lease of land or  buildings  of
          which a member of the Group is a lessee  exceeds  the amount of rental
          received  by such  member  of the  Group in  respect  of such  land or
          buildings from any other person;

          "Qualifying  Bank" means a person which on any date on which  interest
          is  payable  under  this  Facility  is  beneficially  entitled  to the
          interest payable to it under this Facility and is;

          (a)  in  relation  to any  advance to a person  resident in the United
               Kingdom, a UK Lender or a Treaty Lender; or

          (b)  in  relation  to any  advance to a person  resident in the United
               States, a US Lender or a Treaty Lender; or

          (c)  in relation to an advance to any other person, any person;

          "Quarter"  means,  in  respect  of each  Financial  Year,  each of the
          periods (each comprising three successive  accounting  periods) ending
          on or about 31 March,  30 June,  30 September  and 31 December in such
          Financial Year;

                                       17
<PAGE>

          "Quarterly   Management   Accounts"  means  the  quarterly  management
          accounts  of  the  Group  delivered,  or as the  case  may  be,  to be
          delivered to the Agent  pursuant to clause  12.1.6(b)  and the related
          reconciliation  (if any)  delivered  pursuant  to  clause  12.2.14  in
          respect of such financial statements;

          "Quotation  Date"  means,  in relation  to a Revolving  Credit Term or
          other period for which LIBOR or EURIBOR is to be determined,  the date
          on which  quotations are customarily  provided by leading banks in the
          London  lnterbank  Market for  deposits in the  relevant  currency for
          delivery  on the  first  day of that  Revolving  Credit  Term or other
          period  provided  that,  if  for  any  such  period  quotations  would
          customarily  be given on more than one date,  the  Quotation  Date for
          such period shall be the last of those dates;

          "Reference  Banks" means the EURIBOR  Reference Banks and/or the LIBOR
          Reference Banks as the context may require;

          "Regulation D Costs"  means,  in relation to its  participation  in an
          Advance  made to a US Borrower (or  deposits  maintained  by a Bank to
          fund that  participation),  the amount (if any) certified by a Bank to
          be the  cost to it of  complying  with  Regulation  D of the  Board of
          Governors of the Federal  Reserve  System,  or any  successor  (or any
          similar reserve  requirements in respect of its participation or those
          deposits);

          "Repayment Date" means, in relation to an Advance, the last day of its
          Term;

          "Responsible Officer" means any Senior Financial Officer and any other
          officer of a Borrower with  responsibility  for the  administration of
          the relevant portion of this Agreement;

          "Restructuring"  means the  amendment of the terms and  conditions  of
          this  Agreement and the Notes pursuant to the  Restructuring  Deed and
          the Amended and Restated Note Purchase Agreement;

          "Restructuring  Date" has the meaning given to it in the Restructuring
          Deed;

          "Restructuring  Deed" means the restructuring deed dated 19 April 2002
          made between the Parent, the Borrowers,  the Original Guarantors,  the
          Arrangers,  the Banks,  the Agent,  the Security  Trustee,  the Common
          Security  Trustee,  the Swingline Bank and the Overdraft Bank pursuant
          to which this Agreement was amended and restated;

          "Revolving  Credit  Advance"  means (i) each borrowing of a portion of
          the Commitments  under the Revolving  Credit Facility by a Borrower or
          (ii)  (as the  context  may  require)  the  principal  amount  of such
          borrowing for the time being outstanding;

          "Revolving  Credit  Facility"  means  the  revolving  credit  facility
          granted by the Banks in accordance with clause 2.1.1;

          "Revolving Credit Facility Amount" means (pound)155,871,146.52 reduced
          by (i) the  Swingline  Minimum,  (ii) the  Revolving  Credit  Facility
          Decrease,  (iii) the Overdraft  Facility Amount, as further reduced by
          any relevant provision of this Agreement;

          "Revolving Credit Facility  Availability Period" means the period from
          the date of this  Agreement  and ending on 8 November  2004 or on such
          earlier date (if any) on which the Swingline  Facility,  the Overdraft
          Facility,  and the Total  Commitments are all reduced to zero under or
          pursuant to this Agreement;

          "Revolving  Credit  Facility  Decrease"  means the amount by which the
          total of the Sterling Amount of all Swingline Advances  outstanding or
          to be made on a particular  day together  with the Sterling  Amount of
          the Outstanding  L/C Liability in respect of all Swingline  Letters of
          Credit  outstanding  or to be issued on a  particular  day exceeds the
          Swingline Minimum;

                                       18
<PAGE>

          "Revolving  Credit Term" means,  in  relation  to a  Revolving  Credit
          Advance,  the period for which that Revolving Credit Advance is, or is
          to  be,  borrowed,  as  specified  in the  Drawdown  Notice  for  such
          Revolving Credit Advance;

          "Security Documents" means (a) the Guarantees,  (b) the Security Trust
          Deed, (c) the Common Security Trust Deed (and any accession  documents
          entered into in relation  thereto),  (d) the Existing Parent Guarantee
          (as defined in the Amended and Restated Note Purchase Agreement),  (e)
          the  Existing  Subsidiary  Guarantees  (as  defined in the Amended and
          Restated Note Purchase Agreement),  (f) the various security documents
          entered into by members of the Group in  satisfaction  of the relevant
          conditions   precedent  to  the  Restructuring  Deed,  (g)  any  other
          guarantee  or  Encumbrance  provided  from  time to time to  guarantee
          and/or to secure the  obligations  owing to the Finance  Parties under
          any  Finance  Document  (whether  or not also in  respect of any other
          Indebtedness),  (h) the  Intercreditor  Agreement  (and any  accession
          documents  entered into in relation  thereto) and (i) (in so far as it
          relates to the Security Trustee and the Common Security  Trustee) this
          Agreement;

          "Security  Memorandum" means the security principles memorandum in the
          agreed form  entered into on or about the  Restructuring  Date between
          the  Parent,  the  Agent,  the  Noteholders  and the  Common  Security
          Trustee;

          "Security  Trust Deed" means a security  trust deed in the agreed form
          originally  dated 30 August  2000  between the  Parent,  the  Original
          Borrowers,  the Original Overdraft Borrowers, the Original Guarantors,
          the Arrangers,  the Banks, the Swingline Bank, the Overdraft Bank, the
          Agent and the Security Trustee;

          "Security  Trustee" means HSBC  Investment Bank plc and its successors
          in title in its  capacity as security  trustee for the purposes of the
          Original  Guarantees  or such other person as is appointed as security
          trustee pursuant to the Security Trust Deed;

          "Senior  Financial   Officer"  means  the  chief  financial   officer,
          principal accounting officer, treasurer or controller of a Borrower;

          "Settlement  Amount" means the amount payable by the Swingline Bank to
          the beneficiary under a Swingline Letter of Credit;

          "Settlement  Date"  means  the  date on  which  payment  is due to the
          beneficiary in respect of a Swingline Letter of Credit;

          "Sterling" and "(pouind)"  mean the lawful currency for the time being
          of the United  Kingdom and in respect of all payments to be made under
          this  Agreement  in  Sterling  mean  immediately   available,   freely
          transferable cleared funds;

          "Sterling  Amount"  means (a) in relation to an Advance made, or to be
          made,  in Sterling,  the amount in Sterling so drawn down, or to be so
          drawn down, (b) in relation to a Revolving  Credit Advance to be drawn
          down in an  Optional  Currency,  the amount in  Sterling  which was or
          would be required to purchase the principal  amount of that Advance in
          the Optional Currency as determined in accordance with clause 4.2, (c)
          in relation to a Swingline Advance or a Swingline Letter of Credit the
          amount in Sterling  which was or would be  required  to  purchase  the
          principal amount of such Swingline Advance or, as the case may be, the
          stated maximum limit of the liability of the Swingline Bank under such
          Swingline  Letter  of  Credit,  at the spot rate of  exchange  for the
          purchase of Dollars  with  Sterling at or about the time of receipt by
          the Swingline Bank of the relevant Drawdown Notice or L/C Application,
          as  determined  by the  Swingline  Bank and the Agent,  and (d) at any
          relevant time, in relation to other  amounts,  such amount of Sterling
          or,  if such  amount  is  denominated  in an  Optional  Currency,  the
          equivalent  in Sterling at such time of such  amount,  in each case as
          reduced by any repayment or prepayment under this Agreement;

                                       19
<PAGE>

          "Subsidiary"  of a person  means any  company  or entity  directly  or
          indirectly  controlled by such person or any entity (whether or not so
          controlled)  treated as a subsidiary  in the  financial  statements of
          that  person  from time to time,  for which  purpose  `control"  means
          either  ownership of more than 50 per cent of the voting share capital
          (or  equivalent  right of  ownership) of such company or entity or the
          right to control its  policies and  management  whether by contract or
          otherwise (and "controlled"  shall be construed  accordingly) and, for
          the  purposes  of  clauses  11.1.9,  12.1 and  13.1  only  includes  a
          subsidiary  undertaking  within  the  meaning  of  section  258 of the
          Companies Act 1985;

          "Substitute" has the meaning given to it in clause 18.3;

          "Substitution  Certificate"  means a certificate  substantially in the
          terms of Schedule 6;

          "Swingline  Advance"  means (i) each  borrowing  of a  portion  of the
          Commitments under the Swingline  Facility by the Swingline Borrower or
          (ii)  (as the  context  may  require)  the  principal  amount  of such
          borrowing for the time being outstanding;

          "Swingline  Bank"  means  The Bank of New York and its  successors  in
          title c/o BNY Capital  Markets Inc.,  One Wall Street - 18 North,  New
          York, NY 10286;

          "Swingline Borrower" means Cordiant US Holdings Inc.;

          "Swingline  Facility" means a Dollar swingline  facility  (including a
          letter   of   credit   facility)   of  up   to   the   equivalent   of
          (pound)12,469,692  made  available  to the  Swingline  Borrower by the
          Swingline Bank pursuant to clause 2.1.2;

          "Swingline Facility Amount"  means(pound)12,469,692  as reduced by any
          relevant provision of this Agreement;

          "Swingline  Letter  of  Credit"  means  a  standby  letter  of  credit
          denominated  in  Dollars  and  issued  in a form  agreed  between  the
          Swingline Borrower and the Swingline Bank pursuant to clause 6.6;

          "Swingline  Letter  of  Credit  Commission"  means  the rate per annum
          calculated in accordance with clause 6.9;

          "Swingline Letter of Credit Facility Amount" means (pound)2,771,043 as
          reduced by any relevant provision of this Agreement;

          "Swingline Minimum"  means(pound)3,463,803  as reduced by any relevant
          term of this Agreement;

          "Swingline  Term" means,  in relation to any  Swingline  Advance,  the
          period for which that Swingline Advance is, or is to be, borrowed,  as
          specified in the Drawdown Notice for such Swingline Advance;

          "TARGET  Day"  means  a day  on  which  the  Trans-European  Automated
          Real-time  Gross  Settlement   Express  Transfer  system  (TARGET)  is
          operating;

          "Taxes"  includes  all  present  and future  taxes,  levies,  imposts,
          duties,  fees or charges of whatever  nature  together  with  interest
          thereon  and  penalties  in respect  thereof and  "Taxation"  shall be
          construed accordingly;

          "Term"  means a  Revolving  Credit Term or a  Swingline  Term,  as the
          context requires;

          "Termination Date" means the last day of the Revolving Credit Facility
          Availability Period;

          "Total  Commitments" means in respect of a Facility or (as the context
          requires)  the  Facilities  at any  relevant  time  the  total  of the
          Commitments of all the Banks in respect of such Facility or Facilities
          at such time;

                                       20
<PAGE>

          "Treaty" means the Treaty establishing the European Economic Community
          being the  Treaty of Rome of 25 March  1957 as  amended  by the Single
          European  Act 1986 and the  Maastricht  Treaty  (which was signed on 7
          February  1992 and came into  force on 1  November  1993) as  amended,
          varied or supplemented from time to time;

          "Treaty Lender" means a person which, by virtue of the provisions of a
          double  taxation  agreement  between  the  jurisdiction  in which  the
          Borrower is resident  and the country of  residence  of that person is
          subject  only  to a  prior  direction  given  to the  Borrower  by the
          appropriate  tax authority  pursuant to an application by that person,
          eligible  to have  payments  made  to it by the  Borrower  under  this
          Agreement  (i) in the case of a Bank  party to this  Agreement  on the
          date of this  Agreement,  without  any  deduction  or  withholding  in
          respect of Taxes,  or (ii) in the case of a  Substitute,  subject to a
          withholding  or  deduction in respect of Taxes to an extent no greater
          than that which  applied at the time of  substitution  to the Existing
          Bank  from  which  the  Substitute   acquired  its  Commitment  and/or
          Contribution;

          "UK  Borrower"  means a Borrower  which is a company which is resident
          for Taxation purposes in the United Kingdom;

          "UK Lender" means

          (a)  a company which is resident in the UK for tax purposes; or

          (b)  a partnership each of whose members is a company so resident; or

          (c)  a company which is not resident in the UK for tax  purposes,  but
               which carries on a trade in the UK through a branch or agency and
               is subject to  corporation  tax on interest paid to it under this
               Agreement under section 11(2) of the Income and Corporation Taxes
               Act 1988;

          "UK Listing  Authority" means the Financial  Services Authority in its
          capacity as the competent authority for the purposes of Part VI of the
          Financial Services and Markets Act 2000;

          "US Borrower"  means a Borrower  incorporated  or organised  under the
          laws  of any of the  United  States  of  America  or the  District  of
          Columbia;

          "US Lender"  means a person to which  payments  shall be payable under
          this Agreement by a US Borrower, and which:

          (a)  is created or  organised  under the laws of the United  States of
               America or of any state  thereof or the District of Columbia and,
               if such bank or financial  institution is not a corporation,  has
               delivered  to the Agent and each  relevant US Borrower  within 30
               days from the date on which it becomes a party to this Agreement,
               two  accurate and complete  original  copies of Internal  Revenue
               Service Form W-9 (or any applicable successor or additional form)
               duly   executed,   to  establish  that  such  bank  or  financial
               institution   is  entitled  to  receive   payment  of  principal,
               interest,  fees or other  amounts  under this  Agreement  free of
               backup withholding; or

          (b)  is not created or organised  under the laws of the United  States
               of America or any state  thereof or the  District of Columbia and
               has delivered to the Agent and each  relevant US Borrower  within
               30 days  from  the  date on  which  it  becomes  a party  to this
               Agreement,  two accurate and complete original copies of Internal
               Revenue Service Form W-8BEN (with respect to a complete exemption
               under  an  income  tax  treaty)  or  W-8EC1,  or  any  applicable
               successor  or  additional  forms,  duly  executed by such bank or
               financial  institution,  together with any other  certificate  or
               statement of exemption required under the Code or the regulations
               or  pronouncements  issued thereunder to establish that such bank
               or  financial  institution  is  entitled  to  receive  payment of
               principal,  interest,  fees or other amounts under this Agreement
               without any deduction or  withholding of United States of America
               federal income tax;

                                       21
<PAGE>

          "Utilisation" means (i) each borrowing under the Overdraft Facility by
          the  Overdraft  Borrowers  or (ii) (as the  context may  require)  the
          principal   amount  of  all  such   borrowings   for  the  time  being
          outstanding;

          "VAT" or "value  added tax" means value  added tax as provided  for in
          the Value Added Tax Act 1994 and legislation  supplemental to that act
          and any other similar tax;

          "Zenith" means Zenith Optimedia Group Limited, a company  incorporated
          in England and Wales with registered no. 3423055;

          "Zenith Joint  Venture  Agreement"  means the Joint Venture  Agreement
          dated 27 September  2001  between the Parent and  Publicis  Group S.A.
          relating to Zenith; and

          "Zenith SPV" means Sonic Sun Limited,  a company newly incorporated in
          England and Wales with registered no 4350720,  whose registered office
          is at 121-141 Westbourne Terrace, London W2 6JR.

1.3       Headings

          Clause headings and the table of contents are inserted for convenience
          of reference only and shall be ignored in the  interpretation  of this
          Agreement.

1.4       Construction of certain terms

          In this Agreement, unless the context otherwise requires:

1.4.1     references  to clauses and schedules are to be construed as references
          to the clauses of, and schedules to, this  Agreement and references to
          this Agreement include its schedules;

1.4.2     references to (or to any specified provision of) this Agreement or any
          other  document  shall be construed as references  to this  Agreement,
          that  provision or that document as in force for the time being and as
          from time to time  amended in  accordance  with its terms,  or, as the
          case may be, with the  agreement  of the  relevant  parties and (where
          such  consent  is,  by the  terms of this  Agreement  or the  relevant
          document,  required to be obtained  as a condition  to such  amendment
          being permitted) the prior written consent of the relevant parties;

1.4.3     reference  to a document or other papers "in the agreed form" means in
          the form of such document  initialled by way of  identification by the
          Agent and the Parent or in the form  included  in a  Schedule  to this
          Agreement  or in a form  otherwise  agreed  between  the Agent and the
          Parent;

1.4.4     references to a "regulation" include any present or future regulation,
          rule,  directive,  requirement,  request or guideline  (whether or not
          having the force of law and to the extent applicable to any Bank, with
          which banks customarily comply) of any agency, authority, central bank
          or government  department or any  self-regulatory or other national or
          supra-national authority;

1.4.5     words importing the plural shall include the singular and vice versa;

1.4.6     references to a time of day are to London time;

1.4.7     references to a "person" shall be construed as including references to
          an individual,  firm,  company,  corporation,  unincorporated  body of
          persons or any State or any of its agencies;

1.4.8     references   to  "assets"   include  all  or  part  of  any  business,
          undertaking,  real property,  personal property,  uncalled capital and
          any  rights  (whether  actual or  contingent,  present  or  future) to
          receive, or require delivery of, any of the foregoing;

                                       22
<PAGE>

1.4.9     references to a "guarantee" include references to an indemnity (in the
          nature of a  guarantee)  or other  assurance  against  financial  loss
          (including,  without  limitation,  an obligation to purchase assets or
          services)  in each case as a  consequence  of a  default  by any other
          person to pay any  Indebtedness  and  "guaranteed"  shall be construed
          accordingly;

1.4.10    references to the  "equivalent" of an amount specified in a particular
          currency (the  "specified  currency  amount")  shall be construed as a
          reference to the amount of the other  relevant  currency  which can be
          purchased  with the specified  currency  amount in the London  foreign
          exchange  market at or about the relevant time on the day on which the
          calculation  falls to be made,  for delivery on the  relevant  day, as
          determined by the Agent; and

1.4.11    references to any enactment  shall be deemed to include  references to
          such enactment as re-enacted, amended or extended.

1.5       Majority Banks

          Where  this  Agreement  provides  for any matter to be  determined  by
          reference to the opinion of the Majority Banks or to be subject to the
          consent or request of the Majority Banks or for any action to be taken
          on the  instructions  of the Majority  Banks,  such opinion,  consent,
          request or instructions  shall (as between the Banks) only be regarded
          as having been validly  given or issued by the  Majority  Banks if all
          the Banks shall have received prior notice of the matter on which such
          opinion,  consent, request or instructions are required to be obtained
          and the  relevant  majority  of Banks  shall have given or issued such
          opinion, consent, request or instructions but so that (as between each
          Borrower and the Banks) each Borrower shall be entitled (and bound) to
          assume that such notice shall have been duly received by each Bank and
          that the  relevant  majority  shall have been  obtained to  constitute
          Majority Banks whether or not this is in fact the case.

1.6       Agent's opinion

1.6.1     Where this  Agreement  provides  for the Agent's  opinion to determine
          whether any matter  would or is  reasonably  likely to have a Material
          Adverse Effect or a material  adverse effect,  as the case may be, the
          Agent shall act in accordance  with the  instructions  of the Majority
          Banks in making such determination.

1.6.2     The Borrowers shall be entitled to assume that any such  determination
          by the Agent has been made in accordance with the provisions of clause
          1.6.1.

2         The Facilities

2.1       Amount

          Upon and  subject to the terms of this  Agreement  and in  reliance on
          each of the  representations  and  warranties  in clause  11,  for the
          purposes set out in clause 1.1:

2.1.1     the  Banks  agree  to  lend to the  Borrowers,  the  Revolving  Credit
          Facility in the principal sum of up to the Revolving  Credit  Facility
          Amount or its equivalent in Optional Currencies;

2.1.2     the Swingline Bank agrees to lend to, and issue  Swingline  Letters of
          Credit at the request of, the Swingline  Borrower  under the Swingline
          Facility in Dollars in the aggregate principal sum equivalent to up to
          (pound)12,469,692  (subject  to  the  restriction,   in  the  case  of
          Swingline  Letters  of  Credit,  of the  Swingline  Letter  of  Credit
          Facility Amount); and

2.1.3     the Overdraft Bank agrees to make available to the Overdraft Borrowers
          the Overdraft Facility in the principal sum of up to(pound)6,000,000.

                                       23
<PAGE>

          The  obligation  of  each  Bank  under  this  Agreement  shall  be  to
          contribute that proportion of each Revolving  Credit Advance which, as
          at the Drawdown Date of such Revolving Credit Advance,  its Commitment
          in respect of the  relevant  Revolving  Credit  Facility  bears to the
          Total  Commitments in respect of the Revolving Credit Facility and, in
          the case of the  Swingline  Facility and the  Overdraft  Facility,  to
          assume its obligations under clause 6 and clause 7 respectively.

2.2       Obligations several

          The  obligations  of each Bank under this  Agreement are several;  the
          failure of any Bank to perform such obligations  shall not relieve any
          Bank  Finance  Party  or  any  Borrower  of any  of  their  respective
          obligations or  liabilities  under this Agreement nor shall the Agent,
          the Security Trustee, the Common Security Trustee, the Swingline Bank,
          the Overdraft Bank or any Arranger be responsible  for the obligations
          of any Bank  (except for its own  obligations,  if any, as a Bank) nor
          shall any Bank be  responsible  for the  obligations of any other Bank
          under this Agreement.

2.3       Interests several

          Without  prejudice to the provisions of this Agreement  relating to or
          requiring  action by the  Majority  Banks,  the  interests of the Bank
          Finance  Parties are  several and the amount due to the Agent,  to the
          Security Trustee (for its own account), to the Common Security Trustee
          (for its own account),  to the Swingline  Bank, to the Overdraft Bank,
          to each Arranger and to each Bank is a separate and independent  debt.
          Each Bank  Finance  Party  shall have the right to protect and enforce
          its rights  arising out of this  Agreement  (but subject always to the
          terms of this  Agreement)  and it shall not be necessary for any other
          Bank  Finance  Party  to be  joined  as an  additional  party  in  any
          proceedings for this purpose.

2.4       Maximum outstandings

          The  aggregate  of  the  Sterling  Amounts  of  all  Revolving  Credit
          Advances,   Swingline  Advances,   Swingline  Letters  of  Credit  and
          Utilisations  shall at no time exceed the Total Commitments in respect
          of the Revolving Credit Facility.

3         Conditions

3.1       Documents and evidence required

          [deleted]

3.2       General conditions precedent

3.2.1     Subject to clause 3.2.2,  the obligation of each Bank to contribute to
          any Advance,  of the  Swingline  Bank to make  available any Swingline
          Advance or Swingline Letter of Credit or of the Overdraft Bank to make
          available any Utilisation is subject to the condition that at the date
          of each Drawdown  Notice or L/C Application and on each Drawdown Date,
          Utilisation or L/C Issue Date:

          (a)  the  representations  and  warranties set out in clause 11, other
               than  the  excluded  representations  and  warranties  set out in
               clause  11.2.2 (and so that the  representation  and  warranty in
               clause  11.1.9 and 11.1.22  shall for this  purpose  refer to the
               most recent  financial  statements  delivered  to the Agent under
               clauses 12.1.6(a),  12.1.6(b) and 12.1.6(c)) are true and correct
               on and as of each such date as if each were made with  respect to
               the facts and circumstances existing at such date; and

          (b)  no Default shall have occurred and be continuing  unremedied  and
               unwaived  or  would  result  from  the  making  of such  Advance,
               Utilisation or Swingline Letter of Credit.

                                       24
<PAGE>

3.2.2     In the case of the drawing of a Revolving  Credit  Advance which would
          not, if drawn,  cause the aggregate  Sterling  Amount of the Revolving
          Credit Advances outstanding after such drawing to exceed the aggregate
          Sterling Amount of the Revolving Credit Advances outstanding under the
          Revolving  Credit  Facility  concerned,  prior to that drawing  (after
          taking  account of any repayment  made on or prior to the date of such
          drawing) then, in either case:

          (a)  clause  3.2.1(a) shall apply only if the  incorrectness  would be
               reasonably likely to have a Material Adverse Effect; and

          (b)  clause  3.2.1(b)  shall not apply  provided  that the Term of the
               relevant  Revolving  Credit Advance which is to be drawn shall be
               one month or less.

3.2.3     The  obligation  of each  Bank to  contribute  to a  Revolving  Credit
          Advance which would, if drawn,  cause the aggregate Sterling Amount of
          the Revolving Credit Advances outstanding after such drawing to exceed
          the  aggregate  Sterling  Amount  of  the  Revolving  Credit  Advances
          outstanding  under the Revolving Credit Facility prior to that drawing
          (after taking account of any repayment made on or prior to the date of
          such drawing) is subject to the further  condition that the Parent and
          the relevant  Borrower are not aware (after due enquiry) of any matter
          or event  which is  reasonably  likely to result in a breach of clause
          13.1 (Financial Covenants) or an Event of Default under any of clauses
          14.1.1 (Non payment) or 14.1.5 to 14.1.15 inclusive (Cross-default and
          insolvency  events)  either  immediately  on the date of the  Drawdown
          Notice or within  the  period  ending 12 months  after the date of the
          drawing.

3.2.4     Nothing in this clause 3.2 shall be construed as constituting a waiver
          of any right of the Banks (including, without limitation, their rights
          under clause 14.2)  arising from any Event of Default which shall have
          occurred and be outstanding at the time of the drawing of the relevant
          Revolving Credit Advance.

3.3       Waiver of conditions precedent

          The conditions  specified in this clause 3 are inserted solely for the
          benefit of the Banks and may be waived on their  behalf in whole or in
          part  and  with or  without  conditions  by the  Agent  acting  on the
          instructions  of the Majority Banks (together with, in the case of the
          Swingline Facility or the Overdraft Facility,  the instructions of the
          Swingline Bank and the Overdraft Bank  respectively) in respect of any
          Advance, Swingline Letter of Credit or Utilisation without prejudicing
          the  right  of the  Agent  acting  on  such  instructions  to  require
          fulfilment  of such  conditions  in whole or in part in respect of any
          other Advance, Swingline Letter of Credit or Utilisation.

3.4       Notification

          [deleted].

4         The Facilities; Currencies

4.1       Drawdown of Advances

4.1.1     Subject to the terms and conditions of this Agreement an Advance shall
          be made available to the relevant Borrower:

          (a)  in the case of Revolving Credit Advances following receipt by the
               Agent (with a copy to the Swingline Bank) from that Borrower of a
               Drawdown Notice:

               (i)  in  the  case  of an  Advance  to be  drawn  in an  Optional
                    Currency  other than Dollars,  not later than 10 a.m. on the
                    third Banking Day before the proposed Drawdown Date;

              (ii)  in the case of an Advance  to be drawn in Dollars  not later
                    than 2 p.m.  on the third  Banking  Day before the  proposed
                    Drawdown Date; and

                                       25
<PAGE>

             (iii)  in the  case of an  Advance  to be drawn  in  Sterling,  not
                    later  than 1 p.m.  on the  second  Banking  Day  before the
                    proposed Drawdown Date; and

          (b)  in the  case of  Swingline  Advances,  following  receipt  by the
               Swingline  Bank  (with a copy to the  Agent)  from the  Swingline
               Borrower of a Drawdown  Notice,  not later than 11 a.m. (New York
               City time) on the relevant Drawdown Date.

4.1.2     A Drawdown  Notice shall be  effective on actual  receipt by the Agent
          or, as the case may be, the  Swingline  Bank and,  once given,  shall,
          subject as provided in clause 5.8.1, be irrevocable.

4.2       Notification to Banks of Revolving Credit Advances

          As soon as practicable  after receipt of a Drawdown  Notice in respect
          of a  Revolving  Credit  Advance  complying  with  the  terms  of this
          Agreement  the Agent shall notify each Bank and,  subject to clause 3,
          each of the Banks shall on the  Drawdown  Date make  available  to the
          Agent its portion of the Advance in accordance with clause 10.2. If an
          Advance is to be drawn down in an  Optional  Currency  the Banks shall
          advance to the  relevant  Borrower on the drawdown of such Advance the
          amount of the Optional  Currency  specified in the Drawdown Notice for
          that Advance.  The Agent shall  determine the Sterling  Amount of such
          Advance at the spot rate of exchange  quoted to it for the purchase of
          such  Optional  Currency with Sterling at or about the time of receipt
          of the Drawdown Notice for such Advance.

4.3       Amount and Term of Revolving Credit Advances

          Each Revolving Credit Advance shall be:

4.3.1     of a Sterling Amount which is a minimum  of(pound)5,000,000  and shall
          be used for the purposes described in clause 1.1;

4.3.2     denominated in one currency only;

4.3.3     borrowed for a Revolving  Credit Term of one, two, three or six months
          or seven days or fourteen  days,  in each case ending on or before the
          Termination  Date, or such other periods as the relevant  Borrower and
          the Banks may agree.

4.4       Amount and Term of Swingline Advances

4.4.1     Each Swingline Advance shall be:

          (a)  of a Dollar amount which is a minimum of $100,000; and

          (b)  borrowed  for a  Swingline  Term of one to five New York  Banking
               Days.

4.4.2     The Swingline Borrower may not borrow Swingline Advances and Swingline
          Letters of Credit with an aggregate  Sterling Amount at any time which
          exceeds the  Swingline  Minimum,  unless the  Sterling  Amount of such
          excess,  when  aggregated with the Sterling Amount of any amount which
          is the subject of a Drawdown Notice for a Revolving  Credit Advance or
          is outstanding  under the Revolving Credit Facility,  would not result
          in the Total Commitments being exceeded.

4.5       Selection of currencies

          Subject to the  provisions of clause 4.6, if a Borrower so requests in
          the Drawdown  Notice for a Revolving  Credit  Advance,  such Revolving
          Credit Advance may be drawn down in an Optional Currency.

                                       26
<PAGE>

4.6       Limit on currencies; non-availability

          A  Revolving  Credit  Advance  may not be  drawn  down in an  Optional
          Currency if (a) in consequence thereof there would be Revolving Credit
          Advances  outstanding  in more than 4 different  currencies or (b) any
          Bank notifies the Agent not later than 3 p.m. on the third Banking Day
          before the proposed Drawdown Date (or in the case of Dollars not later
          than 5 p.m. on such date) that deposits of such Optional  Currency are
          not readily  available to such Bank in an amount  comparable with such
          Bank's  portion of the relevant  Revolving  Credit  Advance or (c) the
          Agent  determines  (acting  reasonably)  after  consultation  with the
          Reference  Banks at any time prior to 10 a.m. (local time in the place
          of  payment)  on the  Drawdown  Date that by  reason of any  change in
          currency availability, currency exchange rates or exchange controls it
          is or will be impracticable for the relevant  Revolving Credit Advance
          to be drawn down in that Optional Currency.  Accordingly,  in any such
          event,  the relevant  Revolving  Credit Advance shall be drawn down in
          Sterling.

4.7       Facility B conversion option

          [deleted].

4.8       The Termination Date

          Without  prejudice  to any  other  provision  of this  Agreement,  the
          Commitments in respect of the Revolving  Credit  Facility shall in any
          event be  reduced  to zero on the  Termination  Date and no  Revolving
          Credit Advances under the Revolving  Credit Facility (and no Swingline
          Advance, Swingline Letters of Credit or Utilisations) shall be made or
          issued or allowed to the Borrowers under this Agreement thereafter.

4.9       Application of proceeds

          Without  prejudice to any Borrower's  obligations under clause 12.1.3,
          none of the Bank Finance Parties shall have any responsibility for the
          application of the proceeds of any Advance, Swingline Letter of Credit
          or Utilisation by any Borrower.

4.10      Information

4.10.1    At  close  of  business  in  London  on each  Banking  Day on  which a
          Revolving  Credit  Advance  is made,  repaid or  prepaid or a Drawdown
          Notice in respect of a Revolving Credit Advance is received, the Agent
          will confirm to the Swingline Bank the amount outstanding at that time
          under the  Revolving  Credit  Facility  or which is the  subject  of a
          Drawdown  Notice in respect of a Revolving  Credit  Advance and of any
          part of the Revolving Credit Facility or Swingline  Facility which has
          been cancelled on such day.

4.10.2    At close of business in New York on each New York Banking Day on which
          a Swingline Advance is made, repaid or prepaid,  a Swingline Letter of
          Credit is  issued  or  reduced  in  accordance  with the terms of this
          Agreement or a Drawdown  Notice or L/C  Application  is received,  the
          Swingline  Bank will  confirm to the Agent the amount  outstanding  at
          that  time  under the  Swingline  Facility  in  respect  of  Swingline
          Advances and the aggregate outstanding L/C Liability in respect of all
          Swingline  Letters  of  Credit  or  which  is  the  subject  of an L/C
          Application or a Drawdown Notice for a Swingline Advance.

4.10.3    The Swingline Bank and the Overdraft Bank will, following a request by
          the Agent,  promptly inform the Agent of the amount  outstanding under
          the Swingline Facility or the Overdraft Facility (as the case may be).

                                       27
<PAGE>

4.10.4    Neither the Agent nor the  Swingline  Bank shall have any liability to
          any other  party to this  Agreement  in respect of any matter  arising
          directly or  indirectly  as a result of its failure to comply with its
          obligations  under this clause  4.10 or for any  Advance or  Swingline
          Letter of Credit  being made or issued in breach of the limits set out
          in this Agreement.  In the event that any Advance is made or Swingline
          Letter of Credit  is  issued  in breach of any such  limit the  Parent
          will,  on demand by the Agent,  forthwith  procure  that  Advances are
          prepaid  in  accordance  with  the  terms  of  this  Agreement  and/or
          Swingline  Letters of Credit  irrevocably  cancelled  so that any such
          limit is no longer breached.

4.11      Refinancing  of the  Existing  Group  Facilities  following a Relevant
          Acceleration  Notice and the  refinancing  of the Existing  Lighthouse
          Facilities

          [deleted].

4.12      Refinancing  of  the  Existing  Group   Facilities  and  the  Existing
          Lighthouse  Facilities  following  a No Consent  Notice or a Unanimous
          Consent Notice

          [deleted].

4.13      Refinancing of the Existing Lighthouse  Facilities following a Consent
          Notice

          (deleted].

4.14      Operation  of  the  Facilities  and  the  Existing  Group   Facilities
          following a Consent Notice

          [deleted].

5         interest; alternative interest rates

5.1       Calculation of Margin

          [deleted]

5.2       Interest rate for Revolving Credit Advances

          The  relevant  Borrower  shall  pay  to the  Agent  interest  on  each
          Revolving Credit Advance drawn by it on its Repayment Date (or, in the
          case of a Revolving  Credit Advance having a Revolving  Credit Term of
          more  than six  months,  by  instalments,  every six  months  from the
          Drawdown  Date of such  Revolving  Credit  Advance and on the relevant
          Repayment  Date), at the rate per annum being the aggregate of (a) the
          Margin (b) the Additional Cost and (c) the Funding Cost.

5.3       Interest rate for Swingline Advances

          The Swingline  Borrower  shall pay to the  Swingline  Bank interest on
          each Swingline  Advance drawn by it at the rate being the aggregate of
          (i) the Margin which  portion  shall be paid to the Agent upon receipt
          by the  Swingline  Bank for the account of each Bank,  pro rata to its
          Commitment  in respect of the Revolving  Credit  Facility and (ii) the
          Federal  Funds Rate  (which  portion  shall be for the  account of the
          Swingline  Bank).  Such  interest  will  be  paid  in  arrears  on the
          Swingline  Interest  Payment Date falling on or immediately  after the
          Repayment  Date of such  Swingline  Advance.  For the purposes of this
          clause 5.3 "Swingline  Interest  Payment  Date" shall mean each of the
          dates falling at three monthly intervals  beginning three months after
          the date of this Agreement and the Termination  Date in respect of the
          Revolving Credit Facility.

5.4       Interest rate and Interest Periods for the Conversion Advance

          [deleted].

                                       28
<PAGE>

5.5         Interest for late payment

5.5.1     If the  relevant  Borrower  fails to pay any sum  (including,  without
          limitation,  any sum  payable  pursuant to this clause 5.5) on its due
          date for payment under this Agreement that Borrower shall pay interest
          on such sum from the due  date up to the date of  actual  payment  (as
          well after as before judgement) at a rate determined  pursuant to this
          clause 5.5.  The period  beginning on such due date and ending on such
          date of payment shall be divided into  successive  periods of not more
          than three months as selected by the Agent,  the Swingline Bank or the
          Overdraft  Bank (as the case  may be)  each of which  (other  than the
          first,  which shall  commence on such due date) shall  commence on the
          last day of the preceding such period.

5.5.2     The rate of interest applicable to each such period shall be:

          (a)  in the case of overdue  amounts in relation to  Revolving  Credit
               Advances,  the aggregate of (A) one per cent. per annum,  (B) the
               Margin (C) the Additional Cost and (D) the Funding Cost;

          (b)  in the case of overdue amounts in relation to Swingline  Advances
               and  Swingline  Letters of Credit,  the  aggregate of (A) one per
               cent. per annum, (B) the Margin and (C) the Federal Funds Rate;

          (c)  in the case of overdue amounts in relation to  Utilisations,  the
               aggregate of (A) one per cent. per annum,  (B) the Margin and (C)
               the Overdraft Bank's base rate in effect from time to time; and

          (d)  in any other case,  the aggregate of (A) one per cent. per annum,
               (B) the Margin, (C) the Additional Cost and (D) the Funding Cost.

5.5.3     If such unpaid sum is an amount of  principal  which shall have become
          due and payable,  by reason of a declaration by the Agent under clause
          14.2.2 or a prepayment  pursuant to clauses 8.4 or 16.1,  prior to the
          Repayment Date relating thereto, the first such period selected by the
          Agent shall end on such  Repayment  Date and interest shall be payable
          on such unpaid sum during such period at a rate one per cent above the
          rate applicable thereto immediately before it shall have become so due
          and payable.

5.5.4     Interest  under this  clause 5.5 shall be due and  payable on the last
          day of each period  determined by the Agent, the Overdraft Bank or the
          Swingline Bank (as the case may be) pursuant to this clause 5.5 or, if
          earlier,  on the  date on  which  the sum in  respect  of  which  such
          interest  is  accruing  shall  actually  be paid.  If, for the reasons
          specified  in  clause  5.8.1(a)  or  5.8.1(b)  it is not  possible  to
          determine a rate in accordance  with the foregoing  provisions of this
          clause 5.5, then;

          (a)  in the case of amounts due other than in  relation  to  Swingline
               Advances,  Swingline Letters of Credit or the Overdraft  Facility
               then each Bank  shall  promptly  notify  the Agent of the cost of
               funds to such  Bank and  interest  on any sum not paid on its due
               date for  payment  shall be  calculated  for each  Bank at a rate
               determined  by the Agent to be one per cent.  per annum above the
               aggregate of the Margin and the cost of funds (including,  in the
               case of amounts in Sterling, Additional Cost) to such Bank; and

          (b)  in the case of amounts due in relation to  Swingline  Advances or
               Swingline  Letters of Credit,  interest  shall be calculated at a
               rate  determined  by the Swingline  Bank to be one per cent.  per
               annum above the  aggregate of the Margin and the cost of funds to
               the Swingline Bank.

5.6       Notification of interest rate

          The Agent shall notify the  Borrowers  and the Banks  promptly of each
          rate of interest determined under this clause 5.

                                       29
<PAGE>

5.7       Reference Bank quotations

          If any  Reference  Bank is  unable  or  otherwise  fails to  furnish a
          quotation for the purpose of calculating  LIBOR or EURIBOR (where such
          a quotation is required  having regard to the definition of "LIBOR" or
          "EURIBOR" in clause 12) the interest  rate for the relevant  Revolving
          Credit Term or other  period  shall be  determined,  subject to clause
          5.8,  on  the  basis  of the  quotations  furnished  by the  remaining
          Reference 8anks.

5.8       Market disruption; non-availability

5.8.1     If and whenever, at any time prior to the making of a Revolving Credit
          Advance:

          (a)  (at a time when  Reference Bank  quotations  are required  having
               regard to the  definition  of "LIBOR" or "EURIBOR" in clause 1.2)
               the Agent  shall have  determined,  after  consultation  with the
               Reference  Banks (which  determination  shall,  in the absence of
               manifest error,  be conclusive),  that adequate and fair means do
               not exist for ascertaining LIBOR or EURIBOR during such Revolving
               Credit Term; or

          (b)  none or only one of the Reference Banks supplies the Agent with a
               quotation for the purpose of calculating  LIBOR or EURIBOR (where
               such a quotation is required  having regard to the  definition of
               "LIBOR" or "EURIBOR" in clause 1.2); or

          (c)  the Agent  shall  have  received  notification  from  Banks  with
               Contributions aggregating not less than one-third of the total of
               the relevant  Revolving  Credit Advance that deposits in Sterling
               or  the  relevant  Optional  Currency  (as  applicable)  are  not
               available  to such  Banks in the London  Interbank  Market in the
               ordinary  course of business in sufficient  amounts to fund their
               Contributions  to such Revolving Credit Advance or that LIBOR or,
               as relevant, EURIBOR does not accurately reflect the cost to such
               Banks of obtaining such deposits;

          the Agent shall  forthwith give notice (a  "Determination  Notice") to
          the Parent and each of the Banks. A Determination Notice shall contain
          particulars of the relevant circumstances giving rise to its issue.

5.8.2     During the period of 10 days after any  Determination  Notice has been
          given by the Agent  under  clause  5.8.1,  each Bank shall  certify an
          alternative basis (the "Substitute Basis") for making available or, as
          the case may be,  maintaining its  Contribution.  The Substitute Basis
          may  (without   limitation)  include  alternative   interest  periods,
          alternative  currencies  or  alternative  rates of interest  but shall
          include  a margin  above  the cost of  funds to such  Bank  (including
          Additional  Cost, if any)  equivalent to the Margin.  Each  Substitute
          Basis so certified  shall be binding  upon the  relevant  Borrower and
          shall take effect in accordance with its terms from the date specified
          in the Determination  Notice until such time as the Agent notifies the
          Borrower  that none of the  circumstances  specified  in clause  5.8.1
          continues  to  exist   whereupon  the  normal   interest  rate  fixing
          provisions of this Agreement shall apply.

5.8.3     If,  and  whenever  at any time  prior to the  making  of a  Swingline
          Advance, the Swingline Bank gives notice to the Swingline Borrower and
          the Agent that  deposits in Dollars are not  available in the ordinary
          course of  businesses  in  sufficient  amounts to fund such  Swingline
          Advance, Swingline Advances shall not be made until the Swingline Bank
          gives notice to the contrary to the Parent and the Agent.

6         The Overdraft Facility and the Swingline Facility

6.1       The Overdraft Facility

6.1.1     Utilisations of the Overdraft Facility by the Overdraft  Borrowers may
          be made subject to the limitation  that the amount  outstanding  under
          the Overdraft  Facility  (calculated on a net basis and taking account
          of non-Sterling  currency balances) shall not exceed  (pound)6,000,000
          at any time.

                                       30
<PAGE>

6.1.2     No  principal  amount in  respect  of the  Overdraft  Facility  may be
          demanded  by the  Overdraft  Bank unless a notice has been given under
          clause  14.2  but  thereafter  the  monies  owing  in  respect  of the
          Overdraft Facility are repayable on demand.

6.1.3     The Overdraft  Bank shall be at liberty at any time to refuse to allow
          any  Utilisation if the result would be that the limit in clause 6.1.1
          above would be exceeded.

6.2       Terms and conditions

          The Overdraft  Facility is made  available on the terms and conditions
          set out in this  Agreement and the Overdraft  Bank's normal  overdraft
          terms and conditions to the extent that the same are not  inconsistent
          with this Agreement.

6.3       Utilisation, interest and repayment

6.3.1     Any borrowing made available under the Overdraft Facility may be drawn
          only in Sterling.

6.3.2     The Overdraft  Borrowers  shall pay to the Overdraft  Bank interest on
          Utilisations  under  the  Overdraft  Facility  at the rate  being  the
          aggregate of (i) the Margin,  which portion shall be paid to the Agent
          upon  receipt by the  Overdraft  Bank for the account of each Bank pro
          rata to its  Commitment  and (ii) the Overdraft  Bank's base rate from
          time to time (which  portion shall be for the account of the Overdraft
          Bank).  Such  interest  shall  accrue  from day to day on the basis of
          actual days  elapsed  and a year of 365 days,  and shall be debited to
          the relevant  Overdraft  Borrower's  account on the  Overdraft  Bank's
          normal quarterly charging dates.

6.3.3     The  Overdraft  Borrowers  shall  repay  or  discharge  the  Overdraft
          Facility in full on the Termination Date.

6.4       Set off under Overdraft Facility

          Each Overdraft Borrower by way of security for all its obligations and
          liabilities  from time to time  under the  Overdraft  Facility  hereby
          irrevocably  agrees that the Overdraft  Bank may at any time,  without
          notice or demand and  notwithstanding any settlement of any obligation
          under the Overdraft  Facility or other matter  whatsoever,  combine or
          consolidate all or any of the accounts of the Overdraft  Borrower held
          with the Overdraft  Bank and/or set-off or transfer all and any moneys
          standing  to the  credit  of any one or more  accounts  of it with the
          Overdraft  Bank or otherwise  owing by the Overdraft  Bank to it in or
          towards  satisfaction of its obligations under the Overdraft  Facility
          and  authorises  the Overdraft  Bank to purchase with such moneys such
          other  currencies  as may be  necessary  to  effect  such  set-off  or
          transfer at the relevant equivalent rate.

6.5       Set off under Swingline Facility

          The Swingline  Borrower by way of security for all its obligations and
          liabilities  from time to time  under the  Swingline  Facility  hereby
          irrevocably  agrees that the Swingline  Bank may at any time,  without
          notice or demand and  notwithstanding any settlement of any obligation
          under the Swingline  Facility or other matter  whatsoever,  combine or
          consolidate all or any of the accounts of the Swingline  Borrower held
          with the Swingline  Bank and/or set-off or transfer all and any moneys
          standing  to the  credit  of any one or more  accounts  of it with the
          Swingline  Bank or otherwise  owing by the Swingline  Bank to it in or
          towards  satisfaction of its obligations under the Swingline  Facility
          and  authorises  the Swingline  Bank to purchase with such moneys such
          other  currencies  as may be  necessary  to  effect  such  set-off  or
          transfer at the relevant equivalent rate.

6.6       Swingline Letter of Credit Applications

6.6.1     Subject  to the  terms and  conditions  of this  Agreement,  Swingline
          Letters of Credit shall be made  available to the  Swingline  Borrower
          following  receipt by the Swingline Bank (with a copy to the Agent) of
          an L/C Application from the Swingline  Borrower not later than 10 a.m.
          (New York City time) on the second Banking Day before the proposed L/C
          Issue Date.

                                       31
<PAGE>

6.6.2     Each such L/C Application  shall be effective on actual receipt by the
          Swingline Bank and once given shall be irrevocable.

6.6.3     The  obligations  of  the  Swingline  Bank  and  the  other  Banks  to
          participate in a Swingline Letter of Credit are subject to the further
          condition  precedent that, prior to an L/C Application for a Swingline
          Letter  of  Credit  being  made,  the  Swingline  Bank or any Bank may
          require a legal  opinion from lawyers  acceptable  to it to the effect
          that the terms of that  Swingline  Letter of Credit would be upheld by
          the  courts of the  jurisdiction  of the  beneficiary  but only if the
          beneficiary  is  incorporated,  or its principal  place of business is
          situate,  in a  jurisdiction  where  the  Swingline  Bank or the  Bank
          reasonably  believes that any of the terms of the Swingline  Letter of
          Credit would not necessarily be upheld.

6.6.4     The terms of the  relevant  Swingline  Letter of Credit must contain a
          clear  procedure for the making of claims under that Swingline  Letter
          of Credit  satisfactory  to the  Swingline  Bank which shall include a
          requirement that the beneficiary gives at least 5 Banking Days' notice
          of settlement under the relevant Swingline Letter of Credit.

6.7       L/C Application

          An L/C Application  will not be regarded as having been duly completed
          unless:

6.7.1     the  proposed  L/C Issue  Date is a Banking  Day  falling  within  the
          Revolving  Credit Facility  Availability  Period;

6.7.2     the Swingline Letter of Credit is denominated in Dollars;

6.7.3     it is  accompanied  by a copy of the terms of the  proposed  Swingline
          Letter of Credit and the name of the beneficiary is specified;

6.7.4     the Expiry Date is a Banking Day falling no later than 12 months after
          the  L/C  Issue  Date  and in  any  event  falling  on or  before  the
          Termination Date; and

6.7.5     there is a maximum limit to the stated liability of the Swingline Bank
          under the Swingline Letter of Credit.

6.8       Amount of Swingline Letters of Credit

          No Swingline  Letter of Credit may be issued on any day for an amount,
          the Sterling Amount of which, when aggregated with the Sterling Amount
          of all other Swingline  Letters of Credit  outstanding or to be issued
          on such day,  would  exceed the  Swingline  Letter of Credit  Facility
          Amount.

6.9       Swingline Letter of Credit Commission

6.9.1     The rate of Swingline Letter of Credit  Commission  applicable to each
          Swingline Letter of Credit will be the same as the rate of the Margin.

6.9.2     Swingline  Letter of Credit  Commission  on the daily  Outstanding L/C
          Liability of each  Swingline  Letter of Credit (as  determined  by the
          Swingline  Bank) is payable by the  Swingline  Borrower in  accordance
          with clause 6.9.3 below to the Swingline Bank and shall be paid to the
          Agent upon receipt by the Swingline  Bank for the account of each Bank
          pro rata to its Commitment.

6.9.3     Swingline  Letter of Credit  Commission  is  payable in arrears on the
          last  day  of  each  Quarter  and  on  the  Termination  Date  on  the
          Outstanding  L/C  Liability of each  outstanding  Swingline  Letter of
          Credit in  respect  of the period  commencing  on the day  immediately
          following  the date on which an  installment  of  Swingline  Letter of
          Credit  Commission  was  last  payable  in  respect  of  the  relevant
          Swingline  Letter  of Credit  or,  if none,  the date of issue of such
          Swingline Letter of Credit and ending on the relevant payment date.

                                       32
<PAGE>

6.10      Notification of demand under a Swingline Letter of Credit

          The Swingline Bank,  forthwith after being notified by the beneficiary
          under a Swingline Letter of Credit that it is required to make payment
          under that Swingline Letter of Credit,  shall notify the Agent and the
          Swingline  Borrower  that such  payment  is due and of the  Settlement
          Amount and  Settlement  Date in respect  of such  Swingline  Letter of
          Credit.

6.11      Conversion of Swingline Letter of Credit to Swingline Advance

6.11.1    On receipt of a notice from the  Swingline  Bank under clause 6.10 the
          Swingline Borrower shall either:

          (a)  Convert to Swingline Advance

               subject to the terms and  conditions of this  Agreement,  convert
               the  relevant  Settlement  Amount  into a  Swingline  Advance  by
               delivering to the Swingline Bank, no later than close of business
               on the first  Banking  Day  following  the date of receipt of the
               said notice (the "Conversion Date"), a Drawdown Notice, copied to
               the Agent  (which  shall be  irrevocable)  requesting a Swingline
               Advance to the Swingline Borrower of such amount; or

          (b)  Pay under indemnity

               (if the  Swingline  Borrower does not wish to request a Swingline
               Advance or the  conditions  precedent to such  Swingline  Advance
               being made available set out in clause 3 are not fulfilled or the
               Swingline  Borrower  fails to respond to such  notice by close of
               business  on the  Conversion  Date) treat such notice as a demand
               under the indemnity in clause 7.4, and pay to the Swingline Bank,
               no later than  close of  business  on the  Conversion  Date,  the
               relevant Settlement Amount.

6.11.2    Each Swingline  Advance  pursuant to clause  6.11.1(a)  above shall be
          paid,  not later than  11.00  a.m.  on the day which is three New York
          Banking Days preceding the Settlement  Date, to the Swingline Bank and
          shall be held in an account bearing  interest at the Swingline  Bank's
          overnight deposit rate until the Settlement Date, which interest shall
          be for the account of the Swingline Borrower.

6.12      Payment by the Banks to Swingline Bank

6.12.1    If the Swingline Bank has not received the Settlement  Amount from the
          Swingline  Borrower  by 11.00  a.m.  three  Banking  Days  before  the
          Settlement  Date,  it shall  notify the Agent by not later than 2 p.m.
          three Banking Days before the Settlement Date.

6.12.2    If the Agent has been notified  under clause  6.12.1  above,  it shall
          notify each Bank by not later than 5 p.m.  three  Banking  Days before
          the Settlement Date.

6.12.3    Each  Bank  notified  under  clause  6.12.2  above  shall  pay  to the
          Swingline  Bank on the  Settlement  Date  the  amount  of that  Bank's
          proportionate liability in respect of the unpaid Settlement Amount.

6.13      Default by Banks in payment to Swingline Bank

6.13.1    If any Bank (an "L/C  Defaulting  Bank") fails to make any payment due
          from it for the account of the  Swingline  Bank under clause 6.12 then
          until the Swingline  Bank has been  reimbursed  in respect  thereof in
          full (but without  prejudice to the obligations of that L/C Defaulting
          Bank to make such payment):

          (a)  the L/C  Defaulting  Bank shall  hold on trust for the  Swingline
               Bank the  benefit of any  security  now or  hereafter  created to
               secure  the  obligations  of the  Swingline  Borrower  under this
               Agreement and to which that L/C  Defaulting  Bank would have been
               entitled had it made such payment; and

                                       33
<PAGE>

          (b)  for the purposes of determining the  constitution of the Majority
               Banks:

               (i)  the Swingline Bank shall be treated as having a Contribution
                    or  Commitment  (as the case may be) equal to the  amount of
                    such  non-payment of the L/C Defaulting Bank (in addition to
                    the Commitment or Contribution  (if any) which the Swingline
                    Bank already had in its capacity as a Bank); and

               (ii) the Commitment or  Contribution  (as the case may be) of the
                    L/C Defaulting  Bank shall be treated as having been reduced
                    to the same extent.

6.13.2    The rights  conferred  upon the Swingline Bank in this clause 6.13 are
          in  addition  to any other  rights  which it may have  against  an L/C
          Defaulting Bank.

6.14      Reduction of Swingline Letter of Credit Facility

          The Outstanding L/C Liability of any Swingline  Letter of Credit shall
          be treated as reduced for the purposes of this Agreement only when and
          to the extent that (a) the  Swingline  Bank has made a payment under a
          Swingline  Letter of Credit or (b) the liability of the Swingline Bank
          under a Swingline Letter of Credit has been reduced in accordance with
          the terms of the relevant Swingline Letter of Credit.

7         Indemnity of Overdraft Bank and Swingline Bank

7.1       Shortfall   notification   in  relation  to  Swingline   Advances  and
          Utilisations

          If the Overdraft  Borrowers or the  Swingline  Borrower fail to pay to
          the  Overdraft  Bank  or the  Swingline  Bank  any  amount  under  the
          Overdraft Facility or any Swingline Advance, as relevant, when due and
          payable  (the  difference  between  the amount due and the amount paid
          being the "Shortfall")  then,  without  limitation to all other rights
          and remedies in respect  thereof,  the Overdraft Bank or the Swingline
          Bank, as relevant, shall inform the Agent of such failure,  specifying
          the amount and  currency of the  Shortfall  whereupon  the Agent shall
          issue a notification (a "Shortfall Notification") to the Banks stating
          the amount of the Shortfall.

7.2       Payment by Banks

          Following the issue of a Shortfall Notification each Bank shall pay to
          the Agent for the account of the Overdraft Bank or the Swingline Bank,
          as relevant,  an amount equal to the proportion of the shortfall which
          that Bank's  Commitment  bears to the Total  Commitments in respect of
          the Revolving  Credit  Facility at that time.  Such payments  shall be
          made on the next Banking Day  following  the issuance of the Shortfall
          Notification and shall,  subject to clause 7.3, satisfy the amount due
          from the relevant Borrower in respect of which such Shortfall arose to
          the extent of such payments.

7.3       Indemnity  from  Borrowers  in  relation  to  Swingline  Advances  and
          Utilisations

          The Overdraft Borrowers or the Swingline Borrower (as the case may be)
          shall indemnify the Banks on demand against any amount payable by them
          under  clause  7.2.  The  indemnity  in this  clause  7.3  shall  be a
          continuing indemnity notwithstanding any intermediate payment, partial
          settlement or other matter  whatsoever and shall be in addition to any
          security  or other  right  the Banks may have  against  the  Overdraft
          Borrowers,  the Swingline  Borrower or any other Obligor and shall not
          be wholly  or partly  discharged,  varied or  affected  by any time or
          indulgence  granted  to or by the Banks or any  other  party or by any
          combination of accounts,  set-off or other agreement between the Banks
          and the Overdraft  Bank or the Swingline  Bank, as relevant in respect
          of any amount  due under  clause  7.2 or by  anything  done or omitted
          which would but for this provision  operate to exonerate the Overdraft
          Borrowers,  the  Swingline  Borrower or any other  Obligor.  The Banks
          shall not be obliged  to make any claim or demand on any other  person
          liable  or to  resort  to any  other  Collateral  Instrument  or other
          document or other means of payment  before  enforcing  this  indemnity
          against the Overdraft Borrowers or the Swingline Borrower (as the case
          may be) and no other such action which the Banks do take in connection
          with any such Collateral Instrument,  other document or other means of
          payment shall discharge

                                       34
<PAGE>

          reduce or otherwise affect the liability of the Overdraft Borrowers or
          the Swingline Borrower (as the case may be) under this clause 7.3.

7.4       Counter-indemnity for Swingline Letters of Credit

7.4.1     The Swingline Borrower:

          (a)  agrees to pay to the Agent for the account of the Swingline Bank,
               for the  account  of all  Banks,  to the  extent  that  they have
               complied with their obligations under clause 6.12, on demand from
               the Agent an  amount  equal to and in the same  currency  as each
               amount  demanded  in  accordance  with clause  7.4.1(b)  below in
               respect of a Swingline Letter of Credit; and

          (b)  undertakes  to  indemnify  and  hold  harmless  the  Agent,   the
               Swingline  Bank and each Bank from and against  all  liabilities,
               costs,  losses,  damages and expenses which they incur or sustain
               by reason of or arising in any way whatsoever in connection  with
               or by reference  to the issue of a Swingline  Letter of Credit or
               the performance thereof.

7.4.2     The Swingline Borrower and each Bank unconditionally and irrevocably:

          (a)  authorises  and directs the Swingline Bank to pay any prima facie
               valid demand under and in accordance  with a Swingline  Letter of
               Credit  (which  the  Swingline   Bank   believes,   in  its  sole
               discretion, to be valid) without requiring proof of the agreement
               of the  Swingline  Borrower  or any  Bank  that  the  amounts  so
               demanded  or paid  are or were due and  notwithstanding  that the
               Swingline  Borrower or any Bank may  dispute the  validity of any
               such request, demand or payment;

          (b)  confirms  that the  Swingline  Bank deals in  documents  only and
               shall  not be  concerned  with the  legality  of the claim or any
               other  underlying  transaction  or any set-off,  counterclaim  or
               defence as between the Swingline  Borrower and any beneficiary of
               a Swingline Letter of Credit;

          (c)  agrees that  neither the  Swingline  Bank nor any other Bank need
               have regard to the  sufficiency,  accuracy or  genuineness of any
               such  demand  or  any  certificate  or  statement  in  connection
               therewith or any  incapacity of or limitation  upon the powers of
               any  person  signing  or  issuing  such  demand,  certificate  or
               statement  which  appears  on its face to be in order and  agrees
               that neither the Swingline  Bank nor any Bank shall be obliged to
               enquire as to any such matters and may assume, unless notified to
               the  contrary,  that any such  demand,  certificate  or statement
               which  appears on its face to be in order is correct and properly
               made; and

          (d)  without  prejudice to the preceding  sub-clauses,  agrees that if
               the Swingline  Bank pays any such demand in  accordance  with the
               terms of the  relevant  Swingline  Letter of Credit  which is not
               legally  payable  that amount shall  nevertheless  be regarded as
               having been property paid for the purposes of this Agreement.

7.5       Rights of contribution and subrogation of Swingline Borrower

          Until  all  amounts  due under  this  Agreement  have  been  fully and
          irrevocably discharged and all amounts which are or may become payable
          by the Borrowers  under or in connection  with the Security  Documents
          have been irrevocably paid in full, the Swingline  Borrower shall not,
          by virtue of any  payment  made by it under or in  connection  with or
          referable to this clause 7 or otherwise,  be subrogated to any rights,
          security or moneys held or  received by any Bank  Finance  Party or be
          entitled  at any time to  exercise,  claim or have the  benefit of any
          right of contribution or subrogation or similar right against any Bank
          Finance Party. All rights of contribution or similar rights arising in
          respect of any amount due under this  Agreement or in connection  with
          the  Security  Documents  against  any Bank  Finance  Party are hereby
          waived by the Swingline Borrower.

                                       35
<PAGE>

7.6       Waiver of defenses of Swingline Borrower

          The Swingline Borrower agrees that its obligations under this clause 7
          shall not be affected by any act, omission,  matter or thing which but
          for this provision might operate to release or otherwise  exonerate it
          from  its  obligations  under  this  Agreement  in  whole  or in part,
          including without limitation and Whether or not known to it:

7.6.1     any time or waiver granted to or  composition  with any Finance Party,
          any beneficiary of a Swingline Letter of Credit or any other person;

7.6.2     any taking, variation,  compromise,  renewal or release of, or refusal
          or neglect to perfect or enforce,  any rights,  remedies or securities
          available to any Finance  Party,  or other  person or arising  under a
          Swingline Letter of Credit; or

7.6.3     any  variation  or  extension  of or increase in  liabilities  under a
          Swingline  Letter of Credit,  so that  references in this Agreement to
          Swingline  Letters of Credit  shall  include each such  extension  and
          variation.

7.7       Continuing Indemnity of Swingline Borrower

          This shall be a  continuing  indemnity,  shall  extend to the ultimate
          balance of the obligations  and liabilities of the Swingline  Borrower
          under this clause 7 and shall  continue in force  notwithstanding  any
          intermediate  payment  in  whole  or in part of  such  obligations  or
          liabilities.

7.8       Additional security

          The obligations of the Swingline Borrower under this clause 7 shall be
          in  addition  to  and  shall  not  be in  any  way  prejudiced  by any
          collateral  or other  security  now or  hereafter  held by any Finance
          Party as  security  or any lien to which  such  Finance  Party  may be
          entitled.

7.9       Preservation of rights

          No invalidity or  unenforceability of all or any part of this clause 7
          shall affect any rights of  indemnity  or otherwise  which any Finance
          Party  would  or may have in the  absence  of or in  addition  to this
          clause 7.

8         Repayment, prepayment and cancellation

8.1       Repayment of Revolving Credit Advances

          The relevant  Borrower shall repay to the Agent each Revolving  Credit
          Advance  on  its  Repayment  Date  in  the  currency  in  which  it is
          denominated.  If a Revolving Credit Advance (the "new Revolving Credit
          Advance")  is to be made on a day on which  another  Revolving  Credit
          Advance made to the same  Borrower  (the  "maturing  Revolving  Credit
          Advance") denominated in the same currency as the new Revolving Credit
          Advance  is due to be  repaid  then,  subject  to the  terms  of  this
          Agreement  and so long as the  conditions  referred  to in clause  3.2
          shall have been  satisfied  in  relation to the new  Revolving  Credit
          Advance,  (a) the maturing Revolving Credit Advance shall be deemed to
          have been  repaid on its  Repayment  Date  either in whole (if the new
          Revolving  Credit  Advance  is equal to or greater  than the  maturing
          Revolving  Credit  Advance)  or in part (if the new  Revolving  Credit
          Advance is less than the maturing  Advance) and (b) to the extent that
          the  maturing  Revolving  Credit  Advance  is so  deemed  to have been
          repaid, the principal amount of the new Revolving Credit Advance to be
          made on such date shall be deemed to have been credited to the account
          of such  Borrower  by the Agent on  behalf of the Banks in  accordance
          with the terms of this  Agreement  and the Banks shall only be obliged
          to make  available  to such  Borrower a principal  amount equal to the
          amount by which the new Revolving  Credit Advance exceeds the maturing
          Revolving  Credit Advance.  On the  Termination  Date, all outstanding
          Revolving  Credit  Advances  under the Revolving  Credit  Facility and
          other sums (if any) then owing under this Agreement in connection with
          the Revolving  Credit Facility shall in any event be repaid or paid in
          full.

                                       36
<PAGE>

8.2       Repayment of Swingline Advances

          The  Swingline  Borrower  shall  repay  to  the  Swingline  Bank  each
          Swingline  Advance on its Repayment  Date and shall repay or discharge
          in full all outstanding Swingline Advances on the Termination Date.

8.3       Repayment of the Conversion Advance

          [deleted].

8.4       Voluntary prepayment and cancellation of Commitments

          Subject to the  provisions of this clause 8, the Borrowers may without
          premium or penalty prepay any Revolving  Credit Advance  together with
          the immediate  cancellation of an equivalent amount of the Commitments
          in respect of the Revolving  Credit Facility (pro rata to the relevant
          Banks' respective Commitments in respect of that Facility).

8.5       Additional voluntary prepayment

          The Borrowers may (in whole but not in part only),  without premium or
          penalty, but without prejudice to their obligations under clauses 5.8,
          10.5 and 16.2 if they have become  obliged to pay  additional  amounts
          under clause 10.5 or 16.2 to any Bank or a Substitute Basis applies by
          virtue of clause 5.8:

8.5.1     prepay the  Contribution  to  Advances of such Bank or, in the case of
          the application of a Substitute Basis,  prepay any Bank's Contribution
          to which such Substitute Basis applies; and

8.5.2     pay an amount  equal to the maximum  possible  liability  of such Bank
          under  clause  7.1  in  respect  of the  Overdraft  Facility  and  the
          Swingline  Facility  to the Agent to be held on a blocked  account  as
          cash collateral for that Bank's  liabilities on terms  satisfactory to
          the Agent (acting reasonably).

          Upon any notice of such prepayment  being given, the Commitment of the
          relevant  Bank shall be  reduced  to zero in respect of the  Revolving
          Credit  Facility,  but such Bank's  obligations  under clauses 6 and 7
          shall  remain in full force and effect until the Agent  notifies  such
          Bank that it is satisfied that cash collateral has been received under
          clause 8.5.2 representing the full amount of that Bank's liabilities.

8.6       Mandatory prepayment/reduction

8.6.1     Full prepayment events: The Parent shall (or shall procure that it and
          the  other  Borrowers  shall)  prepay  all  the  Facilities  in  whole
          immediately upon the occurrence of an External Refinancing or the sale
          or  other  disposal  of all or  substantially  all of the  assets  and
          undertakings  of the Group or a Change of Control  whereupon the Total
          Commitments in respect of all the Facilities shall be reduced to zero.

8.6.2     Equity  raising:  The  Parent  shall  apply the  proceeds  (net of the
          reasonable  related  costs  incurred  by the  Parent  as  part of such
          exercise) of any issue of shares, rights issue or other equity raising
          by the Parent  including,  for the avoidance of doubt, the exercise of
          any  option to call on the  Parent  to issue  shares  permitted  under
          clause  12.2.11(b)  (other than shares issued as consideration for any
          Permitted  Acquisition and the issue of shares  permitted under clause
          12.2.6(c)  (Acquisitions))  in or  towards  immediate  prepayment  and
          cancellation  of the  Facilities  in  accordance  with clauses  8.6.5,
          8.6.6, 8.7 and 8.8.

8.6.3     Zenith Joint  Venture  Agreement:  The Parent shall (or shall  procure
          that it and the  other  Borrowers  shall)  be  obliged  to apply in or
          towards  immediate  prepayment and  cancellation  of the Facilities in
          accordance  with clauses  8.6.5,  8.6.6,  8.7 and 8.8 the Net Proceeds
          received by any member of the Group from:

                                       37
<PAGE>

          (a)  any exercise of any of the put or call  options  under the Zenith
               Joint Venture Agreement or any other disposal of shares (or other
               interests) in Zenith;

          (b)  any claims for damages or other remedies in respect of any breach
               of any of the put and call  options in the Zenith  Joint  Venture
               Agreement;

          (c)  any  claim  in  respect  of  all   warranties,   indemnities  and
               representations  contained in the Zenith Joint Venture  Agreement
               to the  extent  connected  to any of the  put  and  call  options
               contained therein; and

          (d)  any  Flotation   of,  or  sale  or  other   disposal  of  all  or
               substantially  all of its assets and  undertakings  by, Zenith or
               any of its Subsidiaries.

8.6.4     Disposal of assets:

          (a)  Subject  to clause  8.6.4(b),  but  without  prejudice  to clause
               12.2.4  (Disposals),  if any member of the Group  disposes of any
               assets (including shares and fixed assets) to any person which is
               not a member of the Group, of Which:

               (i)  the aggregate Net Proceeds are at least  (pound)500,000  (or
                    its equivalent at the date of the relevant disposal) (each a
                    relevant disposal"); and

               (ii) the  aggregate  Net  Proceeds of relevant  disposals  by the
                    Group   in   any   Financial   Year   are   in   excess   of
                    (pound)5,000,000  (or  its  equivalent  at the  date  of the
                    relevant disposal),

               the Parent shall (or shall  procure  that it and other  Borrowers
               shall),  apply an amount equal to the  aggregate  Net Proceeds of
               such relevant  disposals which are in excess of  (pound)5,000,000
               (or its equivalent) in mandatory  prepayment and  cancellation of
               the Facilities in accordance with clauses 8.6.5.  8.6.6,  8.7 and
               8.8.

          (b)  The  provisions of clause  8.6.4(a) will not apply in relation to
               the disposals referred to in clauses 12.2.4(a),  12.2.4(c),  (d),
               (e), (f) and (g).

8.6.5     Application of mandatory  prepayment:  All amounts to be prepaid under
          clause 8.6 shall be applied:

          (a)  firstly,  in prepayment of the Revolving  Credit Facility by such
               amount  being  applied  in  prepayment  of the  Revolving  Credit
               Facility Advances and the immediate cancellation of an equivalent
               amount of the  Commitments  in  respect of the  Revolving  Credit
               Facility (pro rata to the relevant Banks' respective  Commitments
               in respect of that Facility); and

          (b)  once all the Revolving Credit Facility Advances have been prepaid
               or repaid in full and the  equivalent  amount of the  Commitments
               have been  cancelled,  pro rata in  prepayment  of the  Swingline
               Facility  and  the  Overdraft  Facility  (pro  rata  the  amounts
               outstanding   to  the  Overdraft  Bank  and  the  Swingline  Bank
               (including any  Outstanding L/C Liability)) and such relevant pro
               rata amounts being applied, in the case of the Swingline Facility
               first in prepayment  of the  outstanding  Swingline  Advances and
               secondly  as cash cover in respect of the  outstanding  Swingline
               Letters of Credit and, in the case of the Overdraft Facility,  in
               prepayment  of all  Utilisations  thereunder,  and the  immediate
               cancellation  of an  equivalent  amount  of  the  Commitments  in
               respect of such Facilities (pro rata to the Swingline  Bank's and
               the Overdraft Bank's  Commitments in respect of those Facilities)
               and the Commitments in respect of the Revolving Credit Facility,

          and for the avoidance of doubt,  to the extent that the Commitments in
          respect of the Revolving  Credit  Facility are less than the aggregate
          of the  Commitments  in  respect  of the  Swingline  Facility  and the
          Overdraft  Facility then the  Commitments  in respect of the Swingline
          Facility and the  Overdraft  Facility will be reduced pro rata so that
          their  aggregate  does  not  exceed  the  Revolving   Credit  Facility
          Commitments.

                                       38
<PAGE>

8.6.6     Cash  Collateral:  If this clause 8.6 would  require the  Borrowers to
          procure  prepayment  of any Advance  otherwise  than on its  Repayment
          Date,  the Borrowers can elect (by written notice made to the Agent to
          be  received  not later  than 10 a.m.  on the date of  receipt  of the
          relevant amounts to be prepaid) to credit the amount to be repaid to a
          Cash  Collateral  Account in the name of the relevant  Borrower on the
          date on which such prepayment would, but for this clause, be due to be
          made and to prepay the relevant  Advance at the Repayment Date of such
          Advance.  Following  any such  election,  and  provided  the  required
          payment is made to such Cash  Collateral  Account,  the  obligation to
          prepay the relevant Advance will not arise until the Repayment Date of
          such Advance. The Borrowers irrevocably authorise the Agent and Common
          Security Trustee to withdraw monies from such Cash Collateral  Account
          and apply such  monies  against  prepayments  which are due to be made
          under this  Agreement  (and amounts due under clause 8.8) or, upon the
          occurrence  of an Event of Default in respect of which notice has been
          given  pursuant  to clause  14.2,  against any amounts due and payable
          under the Finance Documents.

8.7       Revolving Credit Advances

          Any prepayment of Revolving Credit Advances under this Agreement shall
          be  applied  firstly  in  prepayment  of  Revolving   Credit  Advances
          outstanding prior to the  Restructuring  Date (or any rollover of such
          Advances) and then in prepayment  of all other  outstanding  Revolving
          Credit Advances.

8.8       Amounts payable on prepayment

          Any prepayment  under this Agreement  shall be made in the currency in
          which the relevant Advance or Utilisation is then denominated together
          with:  (a)  accrued  interest  to the  date  of  prepayment;  (b)  any
          additional  amount  payable under clauses 10.5,  16.2 or 16.5; (c) all
          other sums  payable by the  Borrowers  to the  relevant  Bank  Finance
          Parties  under  this  Agreement  including,  without  limitation,  any
          accrued  commitment  commission  payable  under  clause  9.1.3 and any
          amounts  payable under clause 15.1;  and (d) where the  Facilities are
          prepaid  and  cancelled  in full,  the fees in clause  9.1.8 and 9.1.9
          together with the interest accrued thereon.

8.9       Notice of prepayment

          No  prepayment  may be  effected  under  clause  8.4 or 8.5 unless the
          relevant  Borrower shall have given the Agent at least 5 Banking Days'
          notice of its  intention  to make  such  prepayment.  Every  notice of
          prepayment  shall be  effective  only on actual  receipt by the Agent,
          shall be  irrevocable  and shall oblige the relevant  Borrower to make
          such prepayment on the date specified.

8.10      Cancellation of Commitments

          The Parent may at any time during the  Availability  Period in respect
          of the  Revolving  Credit  Facility by notice to the Agent  (effective
          only on actual receipt) cancel with effect from a date not less than 5
          Banking  Days after the  receipt by the Agent of such notice the whole
          or any part  (being  (pound)5,000,000  or any  larger  sum which is an
          integral  multiple  of  (pound)1,000,000)  of  the  Total  Commitments
          without penalty. Any such notice of cancellation, once given, shall be
          irrevocable and upon such cancellation taking effect the Commitment of
          each Bank shall be reduced proportionately.

8.11      Allocation of reduction of commitments

          If the Total  Commitments  are to be reduced or cancelled in part (but
          not in whole) pursuant to any provision of this Agreement  (except for
          cancellation of Commitments  under clause 8.6) such reduction shall be
          allocated  against  the  Revolving  Credit  Facility,   the  Swingline
          Facility and the  Overdraft  Facility as the Parent shall  specify and
          the Commitment of each Bank shall be reduced proportionately.

                                       39
<PAGE>

8.12      Prepayments to be subject to the terms of the Intercreditor Agreement

          For so long as the lntercreditor  Agreement remains valid and binding,
          the amount of all  prepayments  made pursuant to clauses 8.4, 8.5, and
          8.6  must  first  be paid  over to the  Common  Security  Trustee  for
          application  in  accordance  with  the  terms  of  the   Intercreditor
          Agreement,  and the amount of such prepayments paid for the benefit of
          the Bank Finance Parties from such  application by the Common Security
          Trustee shall then be applied in prepayment  and  cancellation  of the
          Facilities  in  accordance  with  the  terms of  clause  8.

9         Fees and expenses

9.1       Fees

          The Parent shall pay to the Agent  whether or not any Advance is drawn
          or any Utilisation made:

9.1.1     Arrangement fee: [deleted];

9.1.2     Agency fee:  for the account of the Agent,  an agency fee of an amount
          and on the basis  agreed  between the Parent and the Agent in a letter
          dated on or around the date of the Restructuring Deed;

9.1.3     Commitment Commission:

          (a)  on the dates falling at three month  intervals  after the date of
               this Agreement and on the last day of the Availability  Period in
               respect of the Revolving Credit Facility, for the account of each
               Bank,  commitment  commission  computed at 1.25% per annum on the
               daily undrawn and uncancelled amount of such Bank's Commitment in
               respect of the Revolving Credit Facility; and

          (b)  if a  Revolving  Credit  Advance is  outstanding  in an  Optional
               Currency,  the amount of the Commitments treated as drawn for the
               purpose  of  calculating   commitment  commission  shall  be  the
               Sterling Amount of such Revolving Credit Advance;

9.1.4     Conversion fee: [deleted]

9.1.5     Swingline Bank fee: on the dates falling at quarterly  intervals after
          the  date of the  Restructuring  Deed and on the  Termination  Date in
          respect  of the  Revolving  Credit  Facility,  for the  account of the
          Swingline  Bank, a Swingline  Bank fee and Swingline  Letter of Credit
          fee of amounts  agreed  between the Parent and the Swingline Bank in a
          letter dated on or around the date of the Restructuring Deed;

9.1.6     Overdraft Bank fee: on the dates falling at quarterly  intervals after
          the date of this Agreement and on the  Termination  Date in respect of
          the Revolving Credit Facility,  for the account of the Overdraft Bank,
          an Overdraft  Bank fee of an amount agreed  between the Parent and the
          Overdraft  Bank in a  letter  dated 4 July  2000  (and on and from the
          Restructuring  Date the  reference  in such letter to clause  9.1.8 of
          this  Agreement  shall be  deemed  to refer  to  clause  9.1.6 of this
          Agreement);

9.1.7     Common  Security  Trustee Fee: for the account of the Common  Security
          Trustee,  a trustee fee of an amount and on the basis  agreed  between
          the  Parent and the Common  Security  Trustee in a letter  dated on or
          around the date of the Restructuring Deed;

9.1.8     Deferred  fee: on 8 November  2004 or on such earlier date (if any) on
          which (i) an Event of Default occurs or (ii) the Total Commitments are
          reduced to zero under or pursuant to this  Agreement,  for the account
          of  the  Banks  (pro-rata  to  their  Commitments  in  respect  of the
          Revolving  Credit  Facility),  a deferred fee in Sterling  which shall
          accrue  quarterly  in arrears  from the date of the  execution  of the
          Agreement  in  Principle  and  shall  be  calculated  at  1.00% of the
          Sterling  Amount of the average  daily  principal  outstanding  amount
          (including any Outstanding L/C Liability) under the Facilities  during
          the two most recent quarters, together

                                       40
<PAGE>

          with  interest on such  deferred  fee which shall  accrue at 9.25% per
          annum on the amount of each quarterly accrual of the deferred fee; and

9.1.9     PIK  Management  fee:  for the account of the Banks (pro rata to their
          Commitments) a management fee ("P1K  Management Fee") paid in Sterling
          as follows:

          (a)  the P1K  Management  Fee shall be  calculated  at the end of each
               Quarter as a percentage rate (the "Rate") of the average daily
               principal outstandings under the Facilities (including the amount
               of any  Outstanding  L/C  Liability)  during the two most  recent
               Quarters;

          (b)  the  Rate  to be  applied  at the end of each  Quarter  shall  be
               determined   according  to  the  ratio  of   Consolidated   Gross
               Borrowings to Consolidated EBITDA as set out in the table below:

<TABLE>
<CAPTION>
Quarter Ending                  Consolidated Gross Borrowings : Consolidated EBITDA

<S>                  <C>            <C>               <C>               <C>               <C>
March 2002           less than      greater than      greater than      greater than      greater than
                     or equal to        4.60             4.84              5.08              5.32
                       4.60         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        4.84             5.08              5.32

June 2002            less than      greater than      greater than      greater than      greater than
                     or equal to        6.25             6.81              7.38              7.94
                       6.25         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        6.81             7.38              7.94

September 2002       less than      greater than      greater than      greater than      greater than
                     or equal to        3.56             3.84              4.13              4.41
                       3.56         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.84             4.13              4.41

December 2002        less than      greater than      greater than      greater than      greater than
                     or equal to        3.37             3.71              4.06              4.40
                       3.37         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.71             4.06              4.40

March 2003           less than      greater than      greater than      greater than      greater than
                     or equal to        3.40             3.59              3.77              3.96
                       3.40         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.59             3.77              3.96

June 2003            less than      greater than      greater than      greater than      greater than
                     or equal to        3.28             3.40              3.52              3.63
                       3.28         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.40             3.52              3.63

September 2003       less than      greater than      greater than      greater than      greater than
                     or equal to        3.22             3.35              3.49              3.62
                       3.22         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.35             3.49              3.62

December 2003        less than      greater than      greater than      greater than      greater than
                     or equal to        2.89             3.02              3.15              3.27
                       2.89         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.02             3.15              3.27

March 2004           less than      greater than           -                 -                 -
                     or equal to        2.89
                       2.89         but less than
                                     or equal to
                                        3.00

June 2004            less than      greater than            -                -                 -
                     or equal to        2.70
                       2.70         but less than
                                     or equal to
                                        3.00

September 2004       less than      greater than            -                -                 -
                     or equal to        2.70
                       2.70         but less than
                                     or equal to
                                        2.75

Rate                   0.00%            0.50%            1.00%             1.50%             2.00%
</TABLE>

          (c)  for the purposes of paragraph (b)  Consolidated  Gross Borrowings
               and  Consolidated  EBITDA shall be calculated in accordance  with
               clause  13 and the  ratio of  Consolidated  Gross  Borrowings  to
               Consolidated EBITDA shall be tested by reference to the Quarterly
               Management  Accounts and the related  Compliance  Certificate  in
               respect of the relevant  Quarter  delivered to the Agent pursuant
               to  clauses  12.1.6(a)  and  (d),  provided  that if the  Audited
               Financial  Statements  and the related  Auditor's  Report for any
               Financial Year delivered in accordance with clauses 12.1.6(a) and
               (e) show different determinations for those Financial Definitions
               than those shown in the  Quarterly  Management  Accounts  for the
               last  Quarter in that  Financial  Year,  such  Audited  Financial
               Statements shall prevail in respect of such determinations;

          (d)  the PIK Management Fee shall accrue at the end of each Quarter in
               accordance with paragraphs (a) to (c) above (subject to paragraph
               (e) below),  but shall not be payable  until the earliest of (the
               "PIK Management Fee Payment Date"):

               (i)  the reduction to zero of the Total Commitments in accordance
                    with the terms of this Agreement;

                                       41
<PAGE>

              (ii)  the prepayment in full of the Notes;

             (iii)  any enforcement of any of the Security Documents;

              (iv)  the occurrence of any Event of Default  specified in clauses
                    14.1.9  (Insolvency)  to  14.1.15  (Analogous   proceedings)
                    (inclusive);

               (v)  any  of  the  Notes   becoming  due  and  payable,   whether
                    automatically or by declaration; and

              (vi)  8 November 2004;

          (e)  to the extent that the "New Money Commitments" (as defined in the
               lntercreditor  Agreement) are repaid and cancelled in full at any
               time or all of the Bank Finance  Parties  agree to terminate  the
               priority  treatment of such New Money Commitments under the terms
               of the lntercreditor  Agreement at any time, any future accretion
               of the PIK  Management  Fee  shall  cease at the  later of any of
               those times and 1 January 2003,  provided that any PIK Management
               Fee that has been  calculated  for any Quarter prior to such time
               shall  continue to payable on the PIK Management Fee Payment Date
               and will continue to accrue interest in accordance with paragraph
               (f) below; and

          (f)  Interest shall accrue on the amount of each quarterly  accrual of
               the PIK  Management Fee at a rate of 9.25% per annum and shall be
               payable on the PIK Management Fee Payment Date.

9.2       Expenses

          The Parent shall pay to the Agent on demand:

9.2.1     all reasonable expenses  (including legal,  printing and out-of-pocket
          expenses)  incurred by the Bank Finance Parties in connection with the
          negotiation,  preparation and execution of the Bank Finance Documents,
          the  preparation and  distribution of the Information  Package and any
          Information  Memorandum  and of any  amendment or extension of, or the
          granting of any waiver or consent under,  the Bank Finance  Documents;
          and

9.2.2     all expenses (including legal and out-of-pocket  expenses) incurred by
          the Finance Parties or any of them in  contemplation  of, or otherwise
          in connection  with, the  enforcement or attempted  enforcement of, or
          preservation or attempted  preservation of any rights under,  any Bank
          Finance Document (including, without limitation, the fees and expenses
          of  accountants   or  other  experts   incurred  in  relation  to  any
          investigation into the affairs of the Group provided that if a Default
          has not occurred and no notification has been made under clause 12.1.8
          such fees shall not be payable by the Parent) or  otherwise in respect
          of the moneys owing under any Bank  Finance  Document,  together  with
          interest at the rate  referred to in clause 5.5 from the date on which
          such  expenses  were notified to the Parent to the date of payment (as
          well after as before judgment).

9.3       Value Added Tax (VAT)

          All fees and expenses  payable pursuant to this clause 9 shall be paid
          together  with an amount  equal to any value  added tax payable by the
          Bank  Finance  Parties  in respect  of such fees and  expenses  to the
          extent  that the Bank  Finance  Parties  are not able to recover  such
          Value  Added Tax.  Any value  added tax  chargeable  in respect of any
          services  supplied by the Bank Finance  Parties  under this  Agreement
          shall,  on delivery of a value added tax invoice,  be paid in addition
          to any sum agreed to be paid under this Agreement.

                                       42
<PAGE>

9.4       Stamp and other duties

          The Parent  shall pay all stamp,  documentary,  registration  or other
          similar  duties or Taxes  (including  any duties or Taxes  (other than
          Taxes on overall net income of the Bank Finance  Parties)  payable by,
          or assessed on, the Bank Finance  Parties) imposed on or in connection
          with the Bank Finance  Documents or the Facilities and shall indemnify
          the Bank Finance  Parties  against any liability  arising by reason of
          any delay or  omission  by the  Borrowers  to pay such duties or Taxes
          save for any stamp duty payable as a result of any  transfer  pursuant
          to clause 18.

10        Payments and Taxes; accounts and calculations

10.1      No set-off or counterclaim; distribution to the Banks

          Subject  to  clauses  10.5 and 10.6,  all  payments  to be made by the
          Borrowers  under  the Bank  Finance  Documents  shall be made in full,
          without any set-off or  counterclaim  whatsoever and free and clear of
          any deductions or withholdings,  in Sterling or the relevant  Optional
          Currency (except for costs, charges or expenses which shall be payable
          in the  currency  in  which  they  are  incurred)  on the due  date in
          immediately  available  cleared funds to the account of the Agent, the
          Swingline Bank or the Overdraft Bank (as relevant) at such bank as the
          Agent, the Swingline Bank or the Overdraft Bank (as relevant) may from
          time to time  specify for this  purpose.  Save where the Bank  Finance
          Documents  provide  for a  payment  to be made  for the  account  of a
          particular Bank  (including,  without  limitation,  clauses 8.5, 10.5,
          15.1, 15.2, 16.1 and 16.2 in which case the Agent shall distribute the
          relevant  payment  to the Bank  concerned,  or for the  account of the
          Swingline  Bank or the  Overdraft  Bank),  payments  to be made by the
          Borrowers under the Bank Finance Documents shall be for the account of
          all the Banks and the Agent shall  forthwith  distribute such payments
          in like funds as are  received  by the Agent to the Banks  rateably in
          accordance with their  Commitments or  Contributions,  as the case may
          be.

10.2      Payments by the Banks

          All sums to be  advanced  by the  Banks to the  Borrowers  under  this
          Agreement  shall be  remitted in  Sterling  or the  relevant  Optional
          Currency  in  immediately  available  cleared  funds  on the  relevant
          Drawdown  Date to the  account  of the Agent at such bank as the Agent
          may have  notified to the Banks and shall be paid by the Agent on such
          date in like funds as are  received by the Agent to the account of the
          relevant Borrower specified in the relevant Drawdown Notice.

10.3      Non-Banking Days

          When any payment under this Agreement  would otherwise be due on a day
          which  is not a  Banking  Day,  the due  date  for  payment  shall  be
          postponed  to the next  following  Banking Day unless such Banking Day
          falls in the next  calendar  month in which case payment shall be made
          on the immediately preceding Banking Day.

10.4      Agent may assume receipt

          Where any sum is to be paid under this  Agreement to the Agent for the
          account of another  person,  the Agent may assume,  unless it has been
          notified to the  contrary in  writing,  that the payment  will be made
          when due and may (but shall not be obliged to) make such sum available
          to the  person  so  entitled.  If it  proves  to be the case that such
          payment  was not made to the  Agent,  then the person to whom such sum
          was so made  available  shall on request  refund such sum to the Agent
          together with interest thereon  sufficient to compensate the Agent for
          the cost of making available such sum up to the date of such repayment
          and the person by whom such sum was payable shall  indemnify the Agent
          for any and all loss or expense  which the Agent may  sustain or incur
          as a consequence of such sum not having been paid on its due date.

                                       43
<PAGE>

10.5      Grossing-up for Taxes

          If at any time any  Borrower  is  required  to make any  deduction  or
          withholding  in respect of Taxes  (excluding  Taxes or Taxation on the
          overall net income,  profits or gains of a Bank Finance  Party imposed
          in the jurisdiction in which its principal or lending office under the
          Agreement is located) from any payment due under this Agreement and/or
          the Security  Documents  for the account of any Bank Finance Party (or
          if the Agent is required  to make any such  deduction  or  withholding
          from a  payment  to any  Arranger  or a  Bank),  the sum due  from the
          relevant Borrower in respect of such payment shall,  subject to clause
          10.6, be increased to the extent  necessary to ensure that,  after the
          making of such  deduction  or  withholding,  each Bank  Finance  Party
          receives on the due date for such payment (and retains,  free from any
          liability in respect of such deduction or withholding) a net sum equal
          to the sum  which it would  have  received  had no such  deduction  or
          withholding been required to be made and that Borrower shall indemnify
          (on an after-tax  basis) each Bank Finance Party against any losses or
          costs  incurred  by any of  them  by  reason  of any  failure  of that
          Borrower to make any such deduction or withholding or by reason of any
          increased  payment  not being  made on the due date for such  payment,
          save  only  to the  extent  that  such  failure  by that  Borrower  is
          attributable  to a breach by a Bank  Finance  Party of the warranty in
          clause 10.7 or of its obligation promptly to notify that Borrower of a
          change in its status  pursuant to clause  10.7.  Such  Borrower  shall
          promptly  deliver  to the Agent any  receipts,  certificates  or other
          proof  evidencing  the  amounts (if any) paid or payable in respect of
          any  such  deduction  or  withholding   (other  than  a  deduction  or
          withholding made by the Agent).

10.6      Exceptions to gross-up

10.6.1    If any Bank is not or ceases  to be a  Qualifying  Bank then  (save in
          circumstances where such Bank ceases to be a Qualifying Bank by reason
          of any change in law or regulation or double taxation treaty or in its
          application  or  interpretation,  in each case taking effect after the
          date of this  Agreement)  the Borrowers  shall not be liable to pay to
          that Bank  under  clause  10.5 any sum in excess of the sum they would
          have been  obliged to pay if that Bank had been,  or had not ceased to
          be, a Qualifying Bank.

10.6.2    Subject to clause 10.8.3,  no US Borrower shall be required to pay any
          additional  amount on  account  of any taxes of, or  imposed  by,  the
          United States  pursuant to clause 10.5 to any Bank if such Bank is not
          entitled on the date on which it becomes a party to this  Agreement to
          submit  Internal  Revenue  Service  Form  W-8BEN  (with  respect  to a
          complete  exemption  under an income  tax  treaty)  (or any  successor
          thereto) or Internal  Revenue  Service  Form W-8ECI (or any  successor
          thereto) so as to meet its  obligations to submit such a form or other
          certificate pursuant to clause 10.8 or if such Bank otherwise fails to
          submit  such a form or  certificate  that  it is  required  to  submit
          pursuant to clause 10.8.

10.6.3    Any Bank which is a Qualifying Bank by virtue of being a Treaty Lender
          shall,  as soon as reasonably  practicable  and  permissible  after it
          becomes  a  party  to  this  Agreement  submit  to  the  relevant  tax
          authorities in the country of residence of such Bank the relevant form
          required  for the purpose of  obtaining  a  direction  from the Inland
          Revenue or any equivalent  tax authority,  that payment may be made by
          each relevant  Borrower or (as the case may require) the Agent to such
          Lender (i) in the case of an Existing  Bank,  without any deduction or
          withholding  in  respect  of tax or (ii) in the case of a  Substitute,
          subject to a  withholding  or deduction in respect of tax to an extent
          no greater than that which applied at the time of the  substitution to
          the Existing Bank from which the  Substitute  acquired its  Commitment
          and/or  Contribution  and  if any  Bank  fails  to  comply  with  such
          obligation the Borrower shall not be obliged to pay to such Bank under
          clause  10.5 any sum in  excess  of the sum  which it would  have been
          required to pay to such Bank had it complied  with the  obligation  in
          this clause 10.6.3.

10.6.4    No Bank is obliged  to deliver  any form or  declaration  under  dause
          10.6.3 if the Bank is unable to complete the form or  declaration in a
          manner  which will enable the  Borrower  to make  payment to that Bank
          without  deduction or  withholding in respect of Taxes in the relevant
          jurisdiction as a result of the introduction of or any change in or in
          the  interpretation  or application by any relevant  authority of, any
          law,  treaty or regulation or any practice,  position or concession of
          the relevant tax authority after the date of this Agreement.

                                       44
<PAGE>

10.6.5    If any forms previously delivered under clause 10.8.2 or sub-paragraph
          (i) or (ii) of the definition of US Lender shall have expired,  become
          obsolete,  invalid or  inaccurate in any respect which has resulted in
          the loss of any applicable  exemption from  withholding  and,  (except
          where the reason for such obsolescence,  invalidity or inaccuracy is a
          change  in,  or in  the  interpretation  or  application  of,  or  the
          introduction  of any law or  regulation in each case after the date of
          this  Agreement)  following  not less than thirty days' prior  written
          notice from each relevant US Borrower to the Agent (as to such bank or
          financial  institution),  such bank or financial institution shall not
          have  delivered  to the  Agent  and  such  Borrower  one or more  then
          currently  effective forms described under such  sub-paragraph  (i) or
          (ii),  the relevant US Borrower  shall not be obliged to pay such Bank
          under  clause  10.5 any sum in excess  of the sum which it would  have
          been required to pay to such Bank had such forms not become  obsolete,
          invalid or inaccurate in which case this clause 10.6.5 shall not apply
          to such US Lender.

10.7      Qualifying Banks

          Each Bank agrees  promptly to notify the Agent and the Borrowers if it
          ceases,  or  intends  to cease,  to be a  Qualifying  Bank,  or, if it
          derives its status,  or intends to derive its status,  as a Qualifying
          Bank from a different  paragraph or sub paragraph of the definition of
          Qualifying Bank.

10.8      US Tax forms

10.8.1    Except as otherwise agreed by the Parent, each Bank (other than a Bank
          organised under the federal laws of, or the laws of any of, the United
          States of America  or the  District  of  Columbia)  shall,  subject to
          paragraph (c) below,  deliver to each US Borrower and the Agent within
          30 days from the date it becomes a party to this  Agreement (and prior
          to the expiry of any such form previously  provided by that Bank), two
          accurate and complete  original  signed copies of US Internal  Revenue
          Service Form W-8BEN  (with  respect to a complete  exemption  under an
          income tax treaty) or W-8ECI, whichever is applicable or any successor
          or  additional  form allowing the US Borrower to make payments to that
          Bank without deduction or withholding in respect of federal income tax
          in the United  States of America  provided  that  W-8BEN or W-8ECI (or
          successor  forms) shall be delivered no later than the first Repayment
          Date after the relevant Bank becomes a party to this Agreement.

10.8.2    Except as otherwise agreed by the Parent,  each Bank that is organised
          under the federal laws of, or the laws of any of, the United States of
          America or the District of Columbia  shall,  subject to paragraph  (c)
          below,  deliver to each US Borrower  and the Agent within 30 days from
          the date it becomes a party to this Agreement (and prior to the expiry
          of any such form  previously  provided by the Bank) two  accurate  and
          complete  original copies of duly executed US Internal Revenue Service
          Forms W-9 or any successor to such form.

10.8.3    No Bank is obliged to  deliver  any  form(s)  under  clause  10.6.2 or
          clauses  10.8.1 or 10.8.2  above if the Bank is unable to complete the
          form(s) in a manner which will enable the US Borrower to make payments
          to that Bank without  deduction or  withholding in respect of Taxes in
          the United States of America as a result of the introduction of or any
          change in, or in the  interpretation  or  application  by any relevant
          authority of, any law, treaty or regulation or any practice,  position
          or  concession  of the US Internal  Revenue  Service after the date of
          this Agreement.

10.8.4    The Agent  agrees that it will  furnish on the date of this  Agreement
          (and prior to the expiry of any such form  previously  provided by the
          Agent) to each US  Borrower,  with  respect to fees payable to it, two
          accurate and complete  original  signed  copies of either (i) Internal
          Revenue  Service Forms W-8ECI (or successor form) (if the services are
          performed by a US branch),  or (ii) a statement that the services will
          be performed  entirely  outside the US, or, if  appropriate,  Internal
          Revenue Service Form W-8BEN  (establishing a complete  exemption under
          an income tax treaty) with respect to those services.

                                       45
<PAGE>

10.9      Claw-back of tax benefit

          If following any such  deduction or  withholding  as is referred to in
          clause 10.5 any Bank shall  receive or be granted a credit  against or
          remission  for any Taxes  payable by it, such Bank shall,  where it is
          able to utilise  such  credit or  remission,  subject to the  relevant
          Borrower  having made any increased  payment in accordance with clause
          10.5 and to the extent  that such Bank can do so  without  prejudicing
          the  retention of the amount of such credit or  remission  and without
          prejudice  to the  right of such Bank to  obtain  any other  relief or
          allowance  which may be available to it,  reimburse  the Borrower with
          such amount as the Bank shall in its  absolute  discretion  (acting in
          good faith)  certify to be the  proportion of such credit or remission
          as will  leave  that  Bank  (after  such  reimbursement)  in no  worse
          position  than it would have been in had there been no such  deduction
          or withholding  from the payment by the Borrower.  Such  reimbursement
          shall be made forthwith upon such Bank  certifying  that the amount of
          the credit or remission has been received by it. Nothing  contained in
          this  Agreement  shall oblige any Bank to rearrange its tax affairs or
          to   disclose   any   information   regarding   its  tax  affairs  and
          computations. Without prejudice to the generality of the foregoing, no
          Borrower  shall, by virtue of this clause 10.9, be entitled to enquire
          about any Bank's tax affairs.

10.10     Bank accounts

          Each Bank, the Swingline Bank and the Overdraft Bank,  shall maintain,
          in  accordance  with its  usual  practices,  an  account  or  accounts
          evidencing the amounts from time to time lent by, owing to and paid to
          it under this  Agreement.  The Agent shall maintain a control  account
          showing  each  Revolving  Credit  Advance  and other sums owing by the
          Borrowers  under this  Agreement  and all payments in respect  thereof
          made by the Borrowers from time to time.  The control  account for the
          Overdraft  Facility  shall be maintained by the Overdraft Bank and the
          control account for the Swingline  Facility shall be maintained by the
          Swingline Bank. The control accounts shall, in the absence of manifest
          error,  be prima facie  evidence of the amount from time to time owing
          by the Borrowers under this Agreement.

10.11     Partial payments

          If, on any date on which a payment is due to be made by the  Borrowers
          under the Bank  Finance  Documents,  the amount  received by the Agent
          from the Borrowers or the Common Security  Trustee (after  application
          in accordance  with the  Intercreditor  Agreement)  falls short of the
          total  amount of the payment due to be made by the  Borrowers  on such
          date then, without prejudice to any nghts or remedies available to the
          Agent and the Banks under the Bank Finance Documents,  the Agent shall
          apply the amount  actually  received  from the Borrowers in or towards
          discharge of the  obligations of the Borrowers under this Agreement in
          the  following  order,  notwithstanding  any  appropriation  made,  or
          purported to be made, by the Borrowers:

10.11.1   firstly,  in or towards  payment,  on a pro rata basis,  of any unpaid
          fees,  costs and  expenses of the Agent  and/or the  Security  Trustee
          and/or the Common Security Trustee under the Bank Finance Documents;

10.11.2   secondly, in or towards payment to the Arrangers of any portion of the
          arrangement fee payable under clause 9.1.1 remains unpaid;

10.11.3   thirdly, in or towards payment to the Swingline Bank and the Overdraft
          Bank,  on a pro rata basis,  of any  Swingline  Bank Fee and Overdraft
          Bank Fee payable under clauses 9.1.5 and 9.1.6 which remains unpaid;

10.11.4   fourthly,  in or towards payment to the Banks, on a pro rata basis, of
          any accrued  commitment  commission  payable  under clause 9.1.3 which
          shall have become due and payable but remains unpaid;

10.11.5   fifthly,  in or towards  payment to the Banks,  the Swingline Bank and
          the Overdraft  Bank, on a pro rata basis,  of any accrued  interest or
          Swingline Letter of Credit  Commission which shall have become due and
          payable but remains unpaid;

                                       46
<PAGE>

10.11.6   sixthly,  in or towards  payment to the Banks,  the Swingline Bank and
          the Overdraft  Bank, on a pro rata basis, of any principal which shall
          have become due and payable but remains unpaid; and

10.11.7   seventhly,  in or towards  payment  of any other sum which  shall have
          become  due but  remains  unpaid  (and,  if more  than one such sum so
          remains unpaid, on a pro rata basis).

          The  order of  application  set out in this  clause  10.11.4 - 10.11.7
          shall be  varied  by the Agent if the  Banks so  direct,  without  any
          reference to, or consent or approval from, the Borrowers.

10.12     Calculations

          All  interest  and other  payments  of an  annual  nature  under  this
          Agreement  shall accrue from day to day and be calculated on the basis
          of actual days  elapsed  and (in the case of  Sterling) a 365 day year
          and (in the case of currencies other than Sterling) a 360 day year. In
          calculating the actual number of days elapsed in a period which is one
          of a series of consecutive  periods with no interval between them or a
          period  on the  last  day of  which  any  payment  falls to be made in
          respect of such period, the first day of such period shall be included
          but the last day excluded.

10.13     Certificates

          Any certificate or  determination  of any Bank Finance Party as to any
          rate of interest or any amount payable under this Agreement  shall, in
          the absence of manifest  error, be prima facie evidence of the rate of
          interest or amount payable.

10.14     Effect of monetary union

          If the  country  of any  national  currency  in which  any  amount  is
          expressed to be payable under this Agreement  participates in Economic
          and  Monetary  Union in  accordance  with  Article 109j of the Treaty,
          then:

10.14.1   any amount  expressed  to be  payable  under  this  Agreement  in that
          national  currency shall be made in that national currency or in euro,
          as designated by the Agent after  consultation with the Parent and the
          Banks;

10.14.2   any amount so required to be paid in euro shall be converted from that
          national  currency at the rate stipulated  pursuant to Article 109l(4)
          of the Treaty and  payment  of the  amount in euro  derived  from such
          conversion shall discharge the obligation of the relevant party to pay
          such national  currency amount in accordance with, and subject to, the
          Regulation(s) made pursuant to Article 109l(4) of the Treaty;

10.14.3   after  consultation  with the Parent and the Banks the Agent  shall be
          entitled to make such  amendments  to this  Agreement  as necessary to
          take account of monetary  union and any  consequent  changes in market
          practices  (whether as to the  settlement or rounding of  obligations,
          the calculation of interest or otherwise howsoever) provided that such
          amendments will not create obligations for the Borrowers which have an
          overall  financial  impact that is  materially  more  onerous than the
          obligations created by this Agreement.

          Any amendment so made to this Agreement by the Agent shall be promptly
          notified to the Banks and the Parent by the Agent and shall be binding
          on all the Bank Finance Parties and all the Borrowers.

10.15     Continuation of the Conversion Advance in Sterling or euros

          [deleted]

                                       47
<PAGE>

11        Representations and warranties

11.1      Representations and warranties

          Each Borrower  makes the following  representations  and warranties to
          each of the Bank Finance Parties:

11.1.1    Due incorporation: the Obligors and the Material Subsidiaries are duly
          established  or  incorporated  (and  in  the  case  of  a  corporation
          incorporated  in the  United  States,  validly  existing  and in  good
          standing)  under the laws of the  respective  countries  and/or (where
          relevant) states of their incorporation as limited liability companies
          (except  for  CCG.XM)  and have  power  to  carry on their  respective
          businesses as they are now being conducted and to own their respective
          property and other assets;

11.1.2    Corporate  Power:  each  Obligor  has power to  execute,  deliver  and
          perform its  obligations  under each of the Bank Finance  Documents to
          which it is a party and (in the case of the  Borrowers)  to borrow the
          Commitments; all necessary corporate, shareholder and other action has
          been taken (or, in the case of the Security  Documents,  will be taken
          prior to their  execution)  to authorise the  execution,  delivery and
          performance  of the  same  and no  limitation  on  the  powers  of the
          Borrowers to borrow will be exceeded as a result of  borrowings  under
          this Agreement or on the powers of the  Guarantors to give  guarantees
          will be exceeded as a result of the Guarantees;

11.1.3    Binding  obligations:  this Agreement  constitutes  and the other Bank
          Finance Documents, when executed and delivered will constitute,  valid
          and  legally  binding  obligations  of each  Obligor  which is a party
          thereto enforceable in accordance with their respective terms, save as
          disclosed  in  the  qualifications  to  the  relevant  legal  opinions
          provided  under  part  A  of  Schedule  4  (as  stated  prior  to  the
          Restructuring Date) and under Schedule 5 of the Restructuring Deed;

11.1.4    No conflict with other obligations: the execution and delivery of, the
          borrowing of the Commitments and the performance of their  obligations
          under,  and  compliance  with the  provisions  of,  the  Bank  Finance
          Documents by the  Obligors  will not (i)  contravene,  to any material
          extent,  any existing  applicable law, statute,  rule or regulation or
          any judgment,  decree or permit to which any of them are subject, (ii)
          conflict with, to any material extent,  or result in any breach of any
          of the material terms of, or constitute a material  default under, any
          agreement or other  instrument  to which any of them are a party or is
          subject or by which any of their property is bound,  (iii)  contravene
          or conflict  with any  provision of their  respective  Memorandum  and
          Articles of Association, Articles of Incorporation, Bye-laws, Statutes
          or other  constitutional  documents  or (iv) result in the creation or
          imposition of or oblige any of them to create any  Encumbrance  (other
          than a Permitted  Encumbrance) on any of their  undertakings,  assets,
          rights or revenues;

11.1.5    Consents obtained: (subject, in the case of the Security Documents, to
          the  registration  and filing  requirements  (if any) disclosed in the
          qualifications  to the legal opinions provided under Schedule 5 of the
          Restructuring  Deed)  every  material  consent  from,   authorisation,
          licence  or  approval  of, or  registration  with or  declaration  to,
          governmental or public bodies or authorities or courts required by any
          Obligor to authorise,  or required by any Obligor in connection  with,
          the execution, delivery, validity,  enforceability or admissibility in
          evidence of any of the Bank  Finance  Documents to which it is a party
          or the performance by any Obligor of its obligations  under any of the
          Bank  Finance  Documents  to which it is a party has been  obtained or
          made (or, in the case of the Security  Documents,  will be obtained or
          made,  as the case may be, prior to their  execution)  and is (or will
          be) in full force and effect in all  material  respects  and there has
          been no  default  in the  observance  of the  material  conditions  or
          restrictions  (if any) imposed in, or in connection  with,  any of the
          same;

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<PAGE>

11.1.6    No filings required:  (subject, in the case of the Security Documents,
          to the registration and filing  requirements (if any) disclosed in the
          qualifications  to the legal opinions provided under Schedule 5 of the
          Restructuring Deed) any notarisation,  filing, recording, registration
          or enrolment in any court,  public  office or elsewhere and any stamp,
          registration or similar tax or charge payable on or in relation to any
          of the Bank  Finance  Documents  necessary  to  ensure  the  legality,
          validity,  enforceability  or  admissibility in evidence of any of the
          Bank Finance  Documents has been made or paid, as the case may be (or,
          in the case of the Security  Documents,  will be made or paid,  as the
          case may be, prior to their execution), and the Bank Finance Documents
          are in proper form for their  enforcement  in the courts of England or
          of any  jurisdiction  whose laws are  expressed to govern the relevant
          Security Document;

11.1.7    No litigation: no litigation, arbitration or administrative proceeding
          is taking place,  pending or, to the knowledge of the directors of any
          Obligor or Material  Subsidiary,  threatened against any member of the
          Group which would or is reasonably likely, in the opinion of the Agent
          (acting  reasonably),  if  adversely  determined  to  have a  Material
          Adverse Effect;

11.1.8    No  defaults:  no member of the Group is (nor would with the giving of
          notice or lapse of time or the  satisfaction of any other condition or
          any  combination  thereof  be) in  breach of or in  default  under any
          agreement  relating  to  Borrowed  Money  to which it is a party or by
          which it may be bound  (unless the aggregate  principal  amount of the
          Borrowed Money pursuant to the agreements  which have been breached is
          less  than or  equal  to  (pound)1,000,000  or the  equivalent  in the
          currencies  in which the sums are  payable)  and no other  Default has
          occurred and is continuing;

11.1.9    Financial  statements  correct and complete:  the then latest  audited
          consolidated  financial  statements  of the  Group in  respect  of the
          relevant  Financial Year as delivered to the Agent under clause 12.1.6
          have been  prepared  in  accordance  with the  Appropriate  Accounting
          Principles which have been consistently applied and present fairly and
          accurately the consolidated  financial position of the Group as at the
          date  to  which  such  financial  statements  were  made  up  and  the
          consolidated  results of the  operations of the Group for the relevant
          Financial  Year ended on such date and, as at such date,  no member of
          the Group had any significant liabilities (contingent or otherwise) or
          any losses which are required to be and which are not disclosed by, or
          reserved against or provided for in, such financial statements;

11.1.10   Choice of law: the choice by the  relevant  Obligors of English law to
          govern the Bank  Finance  Documents  to which they are a party (to the
          extent that the same are  expressed to be governed by English law) and
          the  submission  by  the  relevant   Obligors  to  the   non-exclusive
          jurisdiction  of the High Court of  Justice in England  (to the extent
          that the relevant Obligors so submit) are valid and binding;

11.1.11   No  withholding  Taxes:  (on the basis  that all Banks are  Qualifying
          Banks at the  Restructuring  Date and that any Bank  required to do so
          and the Agent has provided the requisite tax forms pursuant to clauses
          10.6 and 10.8) no Taxes are imposed by withholding or otherwise on any
          payment to be made by any Obligor under the Bank Finance  Documents or
          are  imposed  on or by  virtue of the  execution  or  delivery  by any
          Obligor of the Bank  Finance  Documents  to which it is a party or any
          document or  instrument  to be executed  or  delivered  under the Bank
          Finance Documents to which it is a party;

11.1.12   Compliance  with  consents  and  licences:   every  material  consent,
          authorisation, licence or approval required by any Obligor or Material
          Subsidiary  in  connection  with the conduct of its  business  and the
          ownership,   use,  exploitation  or  occupation  of  their  respective
          property and assets has been  obtained and is in full force and effect
          in all  material  respects  and  there  has  been  no  default  in the
          observance of any of the material conditions and restrictions (if any)
          imposed  in,  or in  connection  with,  any of the  same  and,  to the
          knowledge of the directors of each Obligor or Material Subsidiary,  no
          circumstances  have arisen  whereby any  material  remedial  action is
          likely  to be  required  to be taken  by, or at the  expense  of,  any
          Obligor  or  Material  Subsidiary  under  or  pursuant  to any  law or
          regulation  applicable  to the  business,  property  or  assets of any
          Obligor or Material Subsidiary;

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<PAGE>

11.1.13   Ownership of assets:  all assets which are  necessary for the business
          of the  Group  are  beneficially  owned,  licensed  or  leased  by the
          relevant members of the Group free and clear of any Encumbrance  other
          than a Permitted Encumbrance;

11.1.14   Group Structure  Charts:  set forth in the Group Structure Charts is a
          substantially  complete and accurate  representation  of the structure
          and members of the Group as at the date of the Restructuring  Deed and
          the Restructuring Date;

11.1.15   Margin stock: no member of the Group is engaged  principally or as one
          of its major  activities  in the business of extending  credit for the
          purpose  of  purchasing  or  carrying  margin  stock  and  none of the
          proceeds of any  drawing  under any of the  Facilities  will be or has
          been used,  directly  or  indirectly,  to purchase or carry any margin
          stock or to extend  credit to others for the purpose of  purchasing or
          carrying margin stock;

11.1.16   Not an investment company: (in the case of each US Borrower) it is not
          an  "investment  company" as defined in the United  States  Investment
          Company Act of 1940 nor is it subject to any United States  federal or
          state  statute or  regulation  limiting its ability to incur  Borrowed
          Money;

11.1.17   ERISA:  none of the  Parent  or the  ERISA  Affiliates  are  making or
          accruing an obligation to make  contributions or has within any of the
          five calendar years  immediately  preceding the date of this Agreement
          made  or  accrued  an   obligation  to  make   contributions   to  any
          Multiemployer  Plan;  each  Plan  is in  compliance  in  all  material
          respects  with  ERISA and the Code;  each of the  Parent and the ERISA
          Affiliates has made all contributions  except as would not result in a
          material  liability to or under each such Plan  required by law within
          the applicable time limits prescribed thereby, the terms of such Plan,
          or any contract or agreement  requiring  contributions  to a Plan,  no
          ERISA Event has occurred,  and neither the Parent nor any of the ERISA
          Affiliates  has incurred or  reasonably  expects to incur any material
          liability to PBGC other than for premiums;

11.1.18   Intellectual Property Rights

          (a)  the Intellectual Property Rights owned by any member of the Group
               which are  material  in the  context  of the Group as a whole are
               free from any Encumbrance  other than Permitted  Encumbrances and
               any other rights or interests  in favour of third  parties  (save
               for those permitted by this Agreement) and any other Intellectual
               Property  Rights  owned by any  member of the Group are free from
               any  Encumbrance  and any other  rights or interests in favour of
               third  parties  other  than  Permitted   Encumbrances,   save  as
               permitted  either in the  ordinary  course of  business  or which
               would  not or are  not  reasonably  likely  to  otherwise  have a
               Material  Adverse  Effect  and save for  those  created  or to be
               created by or pursuant to the Security  Documents or permitted by
               this Agreement;

          (b)  the  Intellectual  Property  Rights  owned by or licensed to each
               member  of the  Group are all the  Intellectual  Property  Rights
               required by them to carry on their respective  businesses,  other
               than Intellectual  Property Rights the absence of rights to which
               would have no Material  Adverse Effect and no member of the Group
               in  carrying  on its  business  (so far as the  directors  of the
               Parent are aware) infringes any  Intellectual  Property Rights of
               any third  party in any  respect  where such  infringement  would
               have, or is reasonably likely (in the opinion of the Agent acting
               on the instructions of the Majority Banks,  acting reasonably) to
               have, a Material Adverse Effect;

          (c)  no Intellectual Property Rights which are material in the context
               of the Group as a Whole  owned by any member of the Group are, to
               the  knowledge of the directors of the Parent,  being  infringed,
               which  infringement  would have, or is reasonably  likely (in the
               opinion of the Agent acting on the  instructions  of the Majority
               Banks, acting reasonably) to have, a Material Adverse Effect; and

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<PAGE>

          (d)  no member of the Group has any knowledge,  nor is it aware of any
               claim,  that it is or is  reasonably  likely  to be liable to any
               person  for any  material  copyright  infringement  of any nature
               whatsoever as a result of the  operation of its  business,  which
               infringement  would have, or is reasonably likely (in the opinion
               of the Agent acting on the  instructions  of the Majority  Banks,
               acting reasonably) to have, a Material Adverse Effect;

11.1.19   Material Adverse Effect:  since the date of Accountant's  Report there
          has been no  development  or event which has had or, in the opinion of
          the Agent (acting on the  instructions of the Majority  Banks,  acting
          reasonably) is reasonably likely to have a Material Adverse Effect;

11.1.20   Lighthouse Due Diligence: [deleted]

11.1.21   Environmental matters:

          (a)  the  Parent is in  compliance  with the  undertakings  set out in
               clause  12.1.21,  in each case in respect  of all  members of the
               Group;

          (b)  no member of the Group has received  notice of any  Environmental
               Claim   and  no   member  of  the  Group  is  in  breach  of  any
               Environmental Law or any Environmental Licence to the extent that
               the same would be  reasonably  likely in the opinion of the Agent
               (acting reasonably) to have a Material Adverse Effect; and

          (c)  there is no  Environmental  Claim  pending or to the knowledge of
               the directors of any Obligor or a Material Subsidiary  threatened
               against  any  member  of the Group  which,  if  adversely  to its
               knowledge  determined,  would be reasonably likely in the opinion
               of the  Agent  (acting  reasonably)  to have a  Material  Adverse
               Effect;

11.1.22   Unaudited  financial   statements:   the  latest  unaudited  Quarterly
          Management  Accounts and Monthly Management  Accounts delivered to the
          Agent under  clauses  12.1.6(b)  and  12.1.6(c)  have been prepared in
          accordance with the Appropriate  Accounting Principles which have been
          consistently  applied and present  accurately in all material respects
          the  results  of  the   operations  of,  and  the   consolidated   (or
          unconsolidated as applicable)  financial position of the Group for and
          as at the end of, the period to which they relate;

11.1.23   Charged  Assets:  the  assets  listed  in  relevant  schedules  to the
          Security Documents are beneficially  owned by the relevant  Guarantors
          as  indicated  in  the  relevant  schedule,  are  not  subject  to any
          Encumbrance  (other than a Permitted  Encumbrance)  and such lists are
          true and  accurate  in all  material  respects  and will  represent  a
          complete  list in all material  respects of such  categories of assets
          owned by the Obligors as at the date of the relevant Security Document
          (except as agreed with the Agent prior to the Restructuring Date);

11.1.24   No Borrowed Money or Encumbrances: on the Restructuring Date, (i) none
          of the  Borrowers  and  the  other  members  of  the  Group  have  any
          liabilities in respect of Borrowed Money other than as permitted under
          clause 12.2 (Negative  Undertakings)  and (ii) no Encumbrances  (other
          than Permitted  Encumbrances) exist over the assets and undertaking of
          the Borrowers or any other member of the Group;

11.1.25   Information Package:

          (a)  all  factual  statements  contained  in the  Information  Package
               (excluding any financial  projections contained therein) were, as
               at their  respective  dates,  true and  accurate in all  material
               respects  and did not contain any untrue  statement of a material
               fact or (to the best of the  knowledge  of the  directors  of the
               Parent)  omit to  state a fact  necessary  in  order  to make not
               misleading  in any  material  respect  the  statements  contained
               therein; and

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<PAGE>

          (b)  all financial  projections which have been prepared by the Parent
               (or on its behalf) and contained in the Information  Package have
               been prepared in good faith and based upon assumptions which were
               or are  reasonable  at the time  prepared  and at the  time  made
               available to any Bank Finance Party;

11.1.26   Copies of documents to be true and accurate:  the copies of the Zenith
          Joint  Venture  Agreement  and the other  relevant  incorporation  and
          constitutional  documents or by-laws of the Obligors  delivered to the
          Arrangers in accordance with Schedule 5 of the Restructuring  Deed are
          true,  complete  and accurate in all material  respects  and,  save as
          otherwise  referred  to  therein  and so far as it is aware,  no other
          agreements, arrangements or understandings exist between all or any of
          the parties to those agreements and instruments which would materially
          affect  the  transactions  or  arrangements  contemplated  by the Bank
          Finance Documents; and

11.1.27   Clean  company:  (other than as may result from the  transfer to it of
          the Zenith Joint Venture  Agreement and the entry into of the Security
          Documents to which it is a party and the documents  ancillary  thereto
          and the  transactions and matters  contemplated  thereby) prior to the
          Restructuring  Date the Zenith SPV has not  undertaken  any trading or
          incurred any material  liabilities  of any nature  whatsoever  whether
          actual or contingent.

11.2      Repetition

11.2.1    The  representations  and warranties in clause 11.1 shall be deemed to
          be  repeated  by  each   Borrower  on  and  as  of  the  date  of  the
          Restructuring  Deed  and  the  Restructuring  Date  as  if  made  with
          reference to the facts and circumstances existing on each such day.

11.2.2    The  representations and warranties in clause 11.1 (other than clauses
          11.1.5 11.1.7, 11.1.8, 11.1.11,  11.1.12,  11.1.13,  11.1.14, 11.1.18,
          11.1.19, 11.1.21, 11.1.23, 11.1.24, 11.1.25, 11.1.26, and 11.1.27 (the
          "excluded  representations  and  warranties")  shall be  deemed  to be
          repeated  by each  Borrower on and as of each  Drawdown  Date and each
          Repayment   Date  as  if  made  with   reference   to  the  facts  and
          circumstances existing on each such day.

12        Undertakings

12.1      Positive undertakings

          Each Borrower  undertakes  with each of the Bank Finance Parties that,
          from the date of this  Agreement  and so long as any  moneys are owing
          under this Agreement or remain available for drawing by the Borrowers,
          it will (save where  permitted to do  otherwise  by the prior  written
          consent of the Agent,  acting upon the  instructions  of the  Majority
          Banks):

12.1.1    Notice of Default:

          (a)  (in the case of the  Parent)  promptly,  and in any event  within
               five  Banking  Days after a  Responsible  Officer of any  Obligor
               becomes  aware of the same,  inform  the Agent of any  occurrence
               which  would or is  reasonably  likely in its  opinion  to have a
               Material Adverse Effect; and

          (b)  (in the case of each Borrower) promptly,  and in any event within
               five  Banking  Days after a  Responsible  Officer of any  Obligor
               becomes aware of the same, inform the Agent of any Default,

               and in the case of each of paragraphs  (a) and (b) at the time of
               giving such information,  provide a written notice specifying the
               nature and period of the  existence  of the  relevant  occurrence
               having a Material  Adverse Effect or Default (as the case may be)
               and what  action  the Group is taking  or  proposes  to take with
               respect thereto;

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<PAGE>

12.1.2    Consents and licences: without prejudice to clauses 3 and 11.1, obtain
          or cause to be obtained,  maintain in full force and effect and comply
          in all material respects with the conditions and restrictions (if any)
          imposed  in,  or  in  connection   with,   every   material   consent,
          authorisation, licence or approval of governmental or public bodies or
          authorities  or courts and do, or cause to be done, all other acts and
          things which may from time to time be necessary  under  applicable law
          for the continued due  performance of all its  obligations  under this
          Agreement, and its obligations and the obligations of its Subsidiaries
          under  any  other  Bank  Finance  Documents  to which it or any of its
          Subsidiaries  is a  party,  and  in the  case  of  any  such  Security
          Documents, prior to the execution of such Security Documents;

12.1.3    Use of  proceeds:  use the proceeds of drawings  under this  Agreement
          exclusively for the respective purposes specified in clause 1.1;

12.1.4    Pari passu: except as preferences and priorities are created in favour
          of, and allocated among the Banks and the Noteholders  pursuant to the
          Intercreditor  Agreement,  the  Common  Security  Trust  Deed  and the
          Security  Documents,  ensure  that  (a)  its  obligations  under  this
          Agreement shall,  without  prejudice to the provisions of clause 12.2,
          at all times rank at least pari passu with all its other  present  and
          future unsecured and unsubordinated Indebtedness with the exception of
          any  obligations  which are  mandatorily  preferred  by law and not by
          contract,  and (b) the Security  Documents will have at all time first
          ranking  priority,  and will not be  subject  at any time to any prior
          ranking  or pari  passu  ranking  Encumbrances  other  than  Permitted
          Encumbrances   (except  as   specifically   stated  in  the   Security
          Memorandum);

12.1.5    Preparation  of  financial  statements:  it will  (in the  case of the
          Parent):

          (a)  Audited  Financial  Statements:  prepare  consolidated  financial
               statements  in  respect  of the  Group  in  accordance  with  the
               Appropriate Accounting Principles consistently applied in respect
               of each  Financial Year and cause each of the same to be reported
               on by the Auditors;

          (b)  Quarterly  Management Accounts:  prepare  consolidated  quarterly
               management   accounts  for  the  Group  in  accordance  with  the
               Appropriate  Accounting  Principles   (consistently  applied)  in
               respect of each Quarter in the agreed form and including:

               (i)  a  cashflow  statement  and a  consolidated  profit and loss
                    account in respect of the relevant  Quarter,  the  Financial
                    Year to that date, and whatever  periods or rolling 12 month
                    periods are relevant to the  calculations  of the  Financial
                    Definitions for the Financial Covenants;

              (ii)  a  comparison  of all  relevant  results  with the  relevant
                    Annual Budget;

             (iii)  a  comparison  of actual  performance  for that Quarter with
                    the  performance  during the  equivalent  Quarter during the
                    immediately preceding Financial Year;

              (iv)  a consolidated  balance sheet as at the end of that Quarter;
                    and

               (v)  a management  discussion  and analysis  consistent  with the
                    Index of Management Discussion and Analysis;

              (vi)  (for the  purposes  relevant  for clause 8.64  (Disposal  of
                    assets))  a  statement  of the  aggregate  Net  Proceeds  of
                    relevant  disposals  made  during  such  period  other  than
                    disposals to which clause 8.6.4(a) does not apply;

             (vii)  (for  the  purposes  relevant  for  clause  13.1.3  (Maximum
                    Capital  Expenditure) a statement of the Capital Expenditure
                    during such period;

            (viii)  an  analysis  of the  profit  and loss  account  by profit
                    centres; and

              (ix)  a  statement  of the  consideration  paid by the Group  (and
                    broken  down by  Group  members)  in  respect  of  Permitted
                    Acquisitions during such period;

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<PAGE>

          (c)  Monthly  Management   Accounts:   prepare   consolidated  monthly
               management  accounts in respect of the Group in  accordance  with
               the Appropriate  Accounting Principles  (consistently applied) in
               respect of each month in the agreed form and including:

               (i)  a  consolidated  cashflow  statement  (including  a  4  week
                    rolling forecast of central liquidity in the agreed form)

              (ii)  a  consolidated  profit and loss  account  for the  relevant
                    month and the Financial Year to that date;

             (iii)  a  comparison  of all  relevant  results  with the  relevant
                    Annual Budget;

              (iv)  a comparison of actual  performance  for that month with the
                    performance   during  the   equivalent   month   during  the
                    immediately preceding Financial Year;

               (v)  a management  discussion  and analysis  consistent  with the
                    Index of Management Discussion and Analysis;

              (vi)  (for the purposes  relevant  for clause  8.6.4  (Disposal of
                    assets))  a  statement  of the  aggregate  Net  Proceeds  of
                    relevant  disposals  made  during  such  period  other  than
                    disposals to which clause 8.6.4(a) does not apply;

             (vii)  (for  the  purposes  relevant  for  clause  13.1.3  (Maximum
                    Capital  Expenditure) a statement of the Capital Expenditure
                    during such period; and

            (viii)  a  statement  of the  investments  and  other  transactions
                    entered into pursuant to clause 12.2.6(b).

12.1.6    Delivery of financial  statements:  (in the case of the Parent  only),
          deliver to the Agent, for distribution to the Banks, sufficient copies
          for all the Banks of each of the following documents:

          (a)  Audited Financial Statements: at the time of issue of the audited
               financial  statements  (whether  preliminary or otherwise) to the
               shareholders  of the  Parent  but in any event not later  than 90
               days after the end of the  Financial  Year to which they  relate,
               the audited financial  statements referred to in clause 12.1.5(a)
               for each Financial Year together,  in each case,  with the report
               of the Auditors thereon, the notes thereto, the directors' report
               thereon,  the preliminary audited financial  statements,  and the
               report referred to in clause 12.1.6(e);

          (b)  Quarterly  Management  Accounts:  within 45 days after the end of
               the  Quarter  to which  they  relate,  the  quarterly  management
               accounts  prepared in accordance with the  requirements of clause
               12.1.5(b),  together with the  certificate  referred to in clause
               12.1.6(d);

          (c)  Monthly Management Accounts: within 30 days after the end of each
               month to which  they  relate,  the  monthly  management  accounts
               prepared in accordance with the requirements of clause 12.1.5(c);

          (d)  Directors' Comoliance  Certificates:  at the time of the delivery
               of the  Quarterly  Management  Accounts,  for each Quarter and in
               each case  speaking  as at the end of such  Quarter a  Compliance
               Certificate of the Parent signed by its finance  director,  or if
               the finance  director is  unavailable  for any reason,  any other
               director of the Parent;

          (e)  Annual Auditors'  report:  at the time of delivery of the Audited
               Financial  Statements  a report  from the  Auditors  (in a format
               acceptable to the Agent and which can be relied upon by the Agent
               (for itself and the other Bank Finance Parties)) stating:

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               (i)  the  amounts  of the  respective  Financial  Definitions  in
                    respect  of or,  as the  case  may be,  as at the end of the
                    relevant  period  specified  in the  Financial  Covenants as
                    extracted  from  such  Audited   Financial   Statements  and
                    indicating  the  manner  in which  such  amounts  have  been
                    calculated;

              (ii)  the application of the respective  amounts of such Financial
                    Definitions to the Financial Covenants; and

             (iii)  a  list  of  the   Group   companies   that   are   Material
                    Subsidiaries as at the end of the relevant Financial Year to
                    which the report relates,

               and each such report shall (in the absence of manifest  error) be
               conclusive as to matters contained in it;

          (f)  Annual  Budget  (i) as soon as it becomes  available,  and in any
               event  not  later  than 45 days  after  the  commencement  of the
               Financial  Year the subject  thereof  the Annual  Budget for each
               Financial Year, (ii) as soon as it becomes available,  and in any
               event  not later  than 45 days  after  the  commencement  of each
               relevant Quarter, an updated version of the Annual Budget for the
               relevant   Financial  Year,  and  (iii)  immediately  upon  being
               approved by the Parent's  board of directors,  any  amendments or
               revisions to an Annual Budget  (other than the quarterly  updates
               provided for in (ii));

          (g)  Reports and notices to creditors and shareholders: at the time of
               issue  thereof every  report,  circular,  notice or like document
               issued by an Obligor or any Material  Subsidiary to its creditors
               (or any class of creditors)  generally or to the  Noteholders and
               every notice convening a meeting of the shareholders or any class
               of the shareholders of the Parent;

          (h)  Information to creditors: promptly upon their becoming available,
               copies of all information  (including,  without  limitation,  all
               financial information reports,  projections,  forecasts, budgets,
               business information,  financial statements,  reports, circulars,
               notices  or  similar   documents   (but   excluding  any  routine
               administrative  notices  and  certificates))  that is sent by the
               Parent or any  Subsidiary  to any Bank or its  public  securities
               holders;

12.1.7    Further  information:   with  reasonable   promptness,   such  further
          financial and other information concerning the Group (or any member of
          it) and its  affairs  as the  Agent or any Bank  (acting  through  the
          Agent) may from time to time reasonably require;

12.1.8    Independent  accountant's  report:  (in the case of the  Parent  only)
          notify the Agent  immediately  upon it becoming aware that a breach of
          clause 13  (Financial  Covenants)  or an Event of Default under any of
          clauses   14.1.1  (Non   payment)  or  14.1.5  to  14.1.15   inclusive
          (Cross-default  and insolvency  events) is reasonably  likely to occur
          either  immediately or within the following 12 months.  Upon receiving
          such  notification   from  the  Parent,   the  Agent  (acting  on  the
          instruction of the Majority Banks) shall have the right to require the
          preparation of an independent accountants' report on the financial and
          business  condition  and  prospects  of the Group  and/or  such  other
          reports as the Majority  Banks shall require (the cost in each case to
          be borne by the  Parent) and the Parent  will (and will  procure  that
          each other  member of the Group will)  provide  the persons  preparing
          each such report with all  assistance  and  information  requested  by
          them;

12.1.9    Notices from governmental authority: promptly, and in any event within
          30 days of receipt thereof, deliver to the Agent (in sufficient copies
          for all the Banks) any notice to the Parent or any Subsidiary from any
          governmental authority relating to any order, ruling, statute or other
          law or regulation that could reasonably be expected to have a Material
          Adverse Effect;

12.1.10   Other reports: promptly upon their becoming available,  deliver to the
          Agent (in  sufficient  copies  for all the  Banks)  (i) each  material
          document filed by the Parent with the Financial  Services Authority or
          London Stock  Exchange plc and thereafter  generally  available to the
          public,  (ii) each  regular  or  periodic  report,  each  registration
          statement  (without  exhibits  except as  expressly  requested  by the
          Agent), and each prospectus and all amendments

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<PAGE>

          thereto filed by the Parent or any Subsidiary  with the Securities and
          Exchange  Commission  or any similar  governmental  authority or stock
          exchange,  and  (iii)  each  press  release  or other  statement  made
          available  generally  by the  Parent or any  Subsidiary  to the public
          concerning developments that are material;

12.1.11   Taxes:  file all Tax returns and will pay all Taxes within  applicable
          grace periods other than those which are being  disputed by it in good
          faith and for which appropriate reserves have been made;

12.1.12   Tax:  maintain,  and,  in the case of the  Parent,  procure  that each
          Obligor   maintains,   its  tax  residence  in  the   jurisdiction  of
          incorporation;

12.1.13   Insurance: insure and, in the case of the Parent, procure that each of
          its  Material  Subsidiaries  will  insure  and  keep  insured  all its
          properties  and assets with  underwriters  or  insurance  companies of
          repute to such  extent and  against  such  risks as prudent  companies
          engaged in businesses  similar to those of the relevant  member of the
          Group normally insure;

12.1.14   Pension  schemes:  contribute (or, in the case of the Parent,  procure
          that the members of the Group  contribute) to the pension  schemes for
          the time being  applying to their  employees in the US,  except to the
          extent it could not result in material liability, and elsewhere at the
          rate  required of them under all  applicable  laws or, if greater,  in
          accordance with the terms governing such pension schemes provided that
          nothing  in  the  Agreement  shall  prevent  a  member  of  the  Group
          terminating  its  liability  to  contribute  to a  pension  scheme  in
          accordance   with  its  terms,   amending  a  pension   scheme  and/or
          establishing new pension arrangements or amending a pension scheme;

12.1.15   Compliance with laws and  regulations:  comply and, in the case of the
          Parent,  procure that the  Material  Subsidiaries  and other  Obligors
          comply,  with the  terms  and  conditions  of all  laws,  regulations,
          agreements,  licences and  concessions  material to the carrying on of
          its business;

12.1.16   Interest rate hedging and foreign exchange hedging: in the case of the
          Parent,  ensure  that  with  effect  from the  Restructuring  Date the
          Hedging  Strategy  is  implemented  by the entry  into of  appropriate
          Derivatives Contracts from time to time and will ensure that no member
          of the Group  enters  into any  other  Derivatives  Contract  which is
          speculative  or  does  not  relate  to the  hedging  of  exposures  or
          liabilities of members of the Group incurred in the ordinary course of
          trading;

12.1.17   ERISA:

          (a)  promptly  and in any event  within  thirty  days after the filing
               thereof with the Internal  Revenue  Service of the United States,
               to deliver  to the Agent  copies of each  Schedule  B  (Actuarial
               Information)  to the  Annual  Report  (IRS Form 5500  Series)  if
               required  with  respect to each Plan covered by Title IV of ERISA
               other than a Multiemployer Plan;

          (b)  promptly  and in any event  within  ten  Banking  Days  after any
               Obligor  knows or has reason to know that any ERISA Event (i) has
               occurred  or (ii) will occur in the case of any ERISA Event which
               requires  advance  notice under Section  4043(b)(3) of ERISA,  to
               deliver  to the  Agent a  statement  of the  treasurer  or  chief
               financial officer of the Parent or such other member of the Group
               or ERISA Affiliate describing such ERISA Event and the action, if
               any,  which  such  member  of the Group or such  ERISA  Affiliate
               proposes to take with respect thereto;

          (c)  promptly and in any event within five Banking Days after  receipt
               thereof by the Obligor or ten Banking Days after receipt  thereof
               by any member of the Group or any ERISA  Affiliate other than the
               Obligor,  to deliver to the Agent copies of each notice from PBGC
               stating its  intention to terminate any Plan or to have a trustee
               appointed to administer any Plan; and

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<PAGE>

          (d)  ensure  that,  during  the term of this  Agreement,  neither  any
               Subsidiary  incorporated  in the  United  States  nor  any  ERISA
               Affiliate shall agree to contribute,  or assume any obligation to
               contribute,  to any  Multiemployer  Plan  without  notifying  the
               Majority Banks;

12.1.18   Margin Stock:  ensure that no amounts raised under this Agreement will
          be used, directly or indirectly, to purchase or carry margin stock;

12.1.19   Guarantees  and security from Material  Subsidiaries:  (in the case of
          the Parent only), it will procure,  to the extent  consistent with the
          principles agreed in the Security Memorandum:

          (a)  that  documentation,  in form and substance  satisfactory  to the
               Agent (acting  reasonably),  supplemental to and/or incorporating
               provisions  substantially  the same as the New Guarantees  and/or
               such  other  relevant  Security  Documents,  and  such  ancillary
               documentation  as the  Agent  may  reasonably  require,  shall be
               executed and  delivered  to the Agent by any Material  Subsidiary
               incorporated  in (or formed under the laws of) England and Wales,
               the United States of America,  Germany or the  Netherlands  which
               has not  already  granted a New  Guarantee  and  Encumbrances  in
               accordance  with the Security  Memorandum  (in each case together
               with  legal  opinions  relating  thereto  in form  and  substance
               satisfactory  to the  Agent  (acting  reasonably))  as soon as is
               reasonably  practicable  and in any event  within 45 days of such
               requirement  arising under this clause 12.1.19(a);  to the intent
               that  each  such   Material   Subsidiary   shall   guarantee  the
               obligations  of the  Obligors  under the  Finance  Documents  and
               create Encumbrances  securing such obligations in accordance with
               the Security Memorandum; and

          (b)  that the immediate  Holding  Company of every member of the Group
               required to provide security and/or a guarantee  pursuant to this
               clause  12.1.19  (each  a  "relevant  Subsidiary")  executes  and
               delivers to the Agent,  as soon as is reasonably  practicable and
               in any event on or before the deadline under this clause 12.1 .19
               for the execution and delivery of such security and/or  guarantee
               by its relevant Subsidiary,  documentation, in form and substance
               reasonably satisfactory to the Agent which creates an Encumbrance
               over the shares in such relevant  Subsidiary  (if such shares are
               not already the subject of an  Encumbrance  created by a Security
               Document  which is  governed by the laws of the  jurisdiction  of
               incorporation or formation of such relevant  Subsidiary  executed
               by such  Holding  Company)  and, in the case of relevant  Holding
               Companies  incorporated  or formed in England and Wales  only,  a
               fixed and floating  charge over all the assets and undertaking of
               any such  Holding  Company  governed  by the laws of England  and
               Wales (if such assets and undertaking are not already the subject
               of such fixed and floating charge created by a Security Document)
               and a guarantee  of the  obligations  of the  Obligors  under the
               Finance  Documents  (if  such  guarantee  has  not  already  been
               executed) together with such ancillary documentation as the Agent
               may reasonably  require and legal opinions,  in each case in form
               and substance satisfactory to the Agent (acting reasonably);

12.1.20   Preference  shares:  redeem  preference  shares no earlier  than their
          stated maturity as at the date of this Agreement (which in the case of
          Lighthouse and its Subsidiaries are set out in schedule 13) or, in the
          case of preference  shares issued in accordance with clause 12.2.8, no
          earlier than their stated maturity as at the date of their issue;

12.1.21   Environmental:  (and will  procure that each other member of the Group
          will) comply with all Environmental  Laws and  Environmental  Licences
          applicable  to its  business to the extent that a failure to so comply
          would be reasonably expected to have a Material Adverse Effect;

12.1.22   Authorised  Officers:  ensure that any  replacement  or new Authorised
          Officer has provided  the Agent with  evidence  satisfactory  to it of
          such new officer's  authority and a specimen of his signature prior to
          signing  any  Drawdown  Notices,  L/C Application  or  other  notices,
          requests or confirmations referred to in this Agreement or relating to
          the Facilities;

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<PAGE>

12.1.23   Cash management arrangements:

          (a)  (in the  case of the  Parent  only)  use its best  endeavours  to
               procure that cash held by members of the Non-Guarantor  Group and
               which is not required to meet working capital liabilities will be
               repatriated  directly  or  indirectly  to the bank  account  of a
               member of the Guarantor Group located in England and Wales or the
               United  States,  to the  extent  that  such  repatriation  can be
               carried  out in a legal  and  tax-efficient  manner  and  without
               incurring costs which are  disproportionate to the benefit to the
               Bank Finance Parties; and

          (b)  and will  procure  that each  other  member  of the  Group  will,
               conduct their Cash Pooling  Arrangements in the UK the US and the
               Euro-Zone  with a Bank  or  Banks,  excluding  the  Cash  Pooling
               Arrangements  listed in Schedule 14 for so long as they  continue
               pursuant to the same terms as and from the Restructuring Date and
               except as otherwise agreed in writing with the Agent;

12.1.24   Zenith SPV: (in the case of the Parent only) procure that:

          (a)  the Zenith SPV will not carry out any trading,  business or other
               activity or own any material assets other than holding the shares
               in Zenith and Facilities  Group,  acting in relation to the joint
               ventures  constituted  by the Zenith Joint Venture  Agreement and
               the Facilities Group Joint Venture Agreement,  and complying with
               the call options or  exercising  the put options under the Zenith
               Joint   Venture   Agreement  and  will  not  incur  any  material
               liabilities  of  any  nature   whatsoever   (Whether   actual  or
               contingent)   other   than   (i)   liabilities   for   reasonable
               professional fees (ii) liabilities under the Zenith Joint Venture
               Agreement and the Facilities Group Joint Venture  Agreement (iii)
               liabilities  under the  Banks  Finance  Documents  to which it is
               party  (iv)  liabilities  under any loans  entered  into with the
               Parent in  connection  with the  transfer of the shares in Zenith
               and  Facilities  Group  from the Parent to the Zenith SPV and (v)
               liabilities which will arise if it were wound up;

          (b)  any and all of the Group's  right,  interest and title in respect
               of the  shares in Zenith  will be held at all times by the Zenith
               SPV;

          (c)  following the transfer of the shares in  Facilities  Group to the
               Zenith SPV pursuant to clause 8.3 of the Restructuring  Deed, any
               and all of the Group's  right,  interest  and title in respect of
               the shares in  Facilities  Group will be held at all times by the
               Zenith SPV; and

          (d)  the Zenith SPV will not  transfer  or  otherwise  dispense of any
               interest  in any of the  shares  it  holds  from  time to time in
               Zenith  other than (i)  pursuant to the exercise of a call option
               or a put option under the Zenith Joint Venture  Agreement or (ii)
               pursuant to a transfer or other disposal to a person which is not
               a member of the Group and where the Net Proceeds of such transfer
               or disposal are at least equal to the Net Proceeds which would be
               received by the Group  following  the  exercise of the put option
               under the Zenith Joint Venture  Agreement at such a time, in each
               case where the Net Proceeds are applied in accordance with clause
               8.6.3,  and will not create any Encumbrance  over any interest in
               any of the  shares it holds  from  time to time in Zenith  except
               under a Security Document; and

12.1.25   Control Event and Change of Control:  (in the case of the Parent only)
          promptly  provide the Agent with written  notice of any Control  Event
          and any Change of Control.

12.2      Negative undertakings

          Each Borrower  undertakes  with each of the Bank Finance Parties that,
          from the date of this  Agreement  and so long as any  moneys are owing
          under this Agreement or remain available for drawing by the Borrowers,
          without  the  prior  written  consent  of  the  Agent  acting  on  the
          instructions of the Majority Banks:

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<PAGE>

12.2.1    Negative  pledge:  save for Permitted  Encumbrances it will not permit
          any  Encumbrance  by any member of the Group to  subsist,  arise or be
          created  or  extended  over all or any part of its  present  or future
          undertakings,  assets,  rights or  revenues  to  secure or prefer  any
          present or future Indebtedness of any member of the Group or any other
          person;

12.2.2    No other Borrowed Money or finance transactions: it will not, and will
          procure  that no other  member of the Group  will,  incur or permit to
          exist on its behalf any  obligations  in  respect of  Borrowed  Money,
          including  Finance  Leases,  Whether on or off balance  sheet,  to any
          person, or any sale and leaseback except:

          (a)  Borrowed Money arising from normal trade credit;

          (b)  the Borrowed  Money of any persons  acquired by any member of the
               Group  pursuant to the D Acquisition  provided that such Borrowed
               Money  at no  time  exceeds  Korean  Won  16,900,000,000  (or its
               equivalent) in aggregate;

          (c)  any Borrowed  Money of any person  (other than  pursuant to the D
               Acquisition or the Lighthouse Acquisition) acquired by any member
               of the  Group  after  the  date of  this  Agreement,  where  such
               Borrowed Money was existing at the time of such  acquisition  and
               was not incurred in contemplation of, or in connection with, that
               acquisition  and  where no member  of the  Group  other  than the
               person so acquired has any  obligation  (actual or contingent) in
               respect of such Borrowed  Money (and where such Borrowed Money is
               permitted  under  clause  12.2.6(c))  and is repaid or  otherwise
               discharged within 30 days of such acquisition;

          (d)  Borrowed  Money not exceeding  Australian  dollars  10,000,000 in
               aggregate in respect of working capital facilities made available
               in Australia to members of the Group;

          (e)  without duplication,  Borrowed Money in respect of debit balances
               at any bank or financial  institution  under the cash  management
               arrangements  of the Group  (net of the  credit  balances  of the
               Group at such bank or  financial  institution  to the extent that
               such credit  balances are subject to contractual  set-off against
               such debit balances (both before and after  insolvency under such
               cash management arrangements) where the aggregate of all such net
               debit balances of the Group does not exceed  (pound)5,000,000 (or
               its equivalent);

          (f)  Borrowed  Money in  respect  of (i) the  Facilities  and (ii) the
               Notes (under the original  terms of the Amended and Restated Note
               Purchase Agreement) or as such terms may be amended in accordance
               with the lntercreditor Agreement);

          (g)  Indebtedness  in  respect  of Finance  Leases  provided  that the
               aggregate  amount of the  principal  element of the  Indebtedness
               under such Finance  Leases does not exceed  (pound)2,000,000  (or
               its equivalent) at any time;

          (h)  performance  bonds  issued by a member of the Group in respect of
               the obligations  (other than any payment  obligations) of another
               member of the Group in the ordinary course of trading;

          (i)  Derivatives  Contracts  entered  into in  accordance  with clause
               12.1.16;

          (j)  Borrowed  Money owed by one member of the Group to another member
               of the Group (but subject to clause 12.2.5(b));

          (k)  Borrowed Money in respect of guarantees issued by banks on behalf
               of Group  members  to media  authorities  in Korea and the United
               Kingdom in each case in  connection  with bona fide  arrangements
               for maintenance of media  accreditation in accordance with normal
               industry practice; and

          (l)  Borrowed Money in addition to that permitted by clauses 12.2.2(a)
               to (k) not exceeding  (pound)16,000,000  (or its  equivalent)  in
               aggregate at any given time;

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12.2.3    No  amalgamation  and  merger:  it  will  not  permit  an  Obligor  to
          amalgamate or merge with any other company or person in  circumstances
          where the  Obligor  ceases to exist or where  any  obligation  of such
          Obligor to the Bank  Finance  Parties  (or any  Encumbrance  under any
          Security Document) is or may be detrimentally affected;

12.2.4    Disposals:  it will not and will procure that none of its Subsidiaries
          will sell, transfer,  lease,  surrender,  lend or otherwise dispose of
          the whole or any part of its present or future undertakings, assets or
          revenues whether by one or a series of transactions related or not (or
          enter  into any  binding  commitment  to do any of the  same  (whether
          conditional or otherwise)) (each a "disposal") except for:

          (a)  the disposal of  stock-in-trade  in the ordinary course of day to
               day trading;

          (b)  any disposal  for cash on arm's length terms where the  aggregate
               of the greater of the  consideration  and the market value of all
               such  disposals  does  not  exceed   (pound)10,000,000   (or  its
               equivalent)  provided  that the Net Proceeds of such disposal are
               applied as (and to the extent) required by clause 8.6.4; and

          (c)  any disposal by:

               (i)  a member of the Group to a member  of the  Guarantor  Group;
                    and

              (ii)  a member of the Non-Guarantor Group to another member of the
                    Non-Guarantor Group,

               but so that in each case where any such  asset is  shares,  other
               ownership  interests  in any person or entity,  real  property or
               real  estate  (or  related   insurance   policies),   receivables
               (including  intra-Group debts) or, in each case, rights or claims
               in respect of any such asset and is subject or is expressed to be
               subject to an Encumbrance  pursuant to any Security Document such
               disposal  shall  only be  permitted  either  where  the  Agent is
               satisfied  that  the  guarantee  given  by  the  disposee  of the
               obligations  of the Obligors  under the Finance  Documents is not
               limited to a greater  extent than that given by the  disposer and
               that either (A) such Encumbrance is not prejudiced as a result of
               such  disposal or (B) the asset  concerned  becomes  subject to a
               fully enforceable,  legally binding  Encumbrance in favour of the
               Common   Security   Trustee   and  the  other   Finance   Parties
               substantially equivalent to or better than such other Encumbrance
               or with the consent of the Agent (acting on the  instructions  of
               the Majority Banks);

          (d)  dealings  with trade  debtors  with  respect to book debts in the
               ordinary course of trading;

          (e)  disposals of cash on arm's length terms not otherwise  prohibited
               by the Bank Finance Documents;

          (f)  disposals  which  constitute   investments  permitted  by  clause
               12.2.6(b); and

          (g)  the disposals  permitted by clause  12.1.24(d)  provided that the
               proceeds of such disposals are applied in accordance  with clause
               8.6.3,

               and so that where the asset or assets  the  subject of a disposal
               permitted by this clause (whether pursuant to clause 12.2.4(a) to
               (g) above or with the prior  written  consent of the Agent acting
               on the  instructions  of the Majority  Banks (but  excluding  the
               assets  referred to in the last paragraph of clause  12.2.4(c) in
               the case of any disposal under such clause)) is or are subject to
               an Encumbrance created by the Security Documents,  the consent of
               the Agent  (but  without  prejudice  or  responsibility  to or in
               respect of any other  requisite  consent)  shall be granted  (and
               shall be deemed to be granted) for the release of the Encumbrance
               created by the Security  Documents over such assets provided that
               no Default shall have occurred and be continuing neither remedied
               nor waived (and the Agent is  irrevocably  authorised by the Bank
               Finance  Parties to grant such  releases or, as  appropriate,  to
               instruct and/or  authorise the Common  Security  Trustee to grant
               such releases without reference to the Bank Finance

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          Parties) and the Agent shall accordingly  instruct the Common Security
          Trustee to grant the relevant releases;

12.2.5    Loans and  guarantees:  it will not, and will procure that none of its
          Subsidiaries will, make any loans, grant any credit (except for normal
          trade credit in the ordinary course of day-to-day trading) or give any
          guarantee save for:

          (a)  Permitted Guarantees to or for the benefit of any person; and

          (b)  loans or credit to a member  of the  Guarantor  Group or loans or
               credit  from one  member of the  Non-Guarantor  Group to  another
               member of the  Non-Guarantor  Group and loans or credit permitted
               under clause 12.2.6(b);

12.2.6    Acquisitions:  save for Permitted Acquisitions,  it will not, and will
          procure  that  none of its  Subsidiaries  will,  acquire  or make  any
          investment in any companies,  joint ventures or  partnerships or other
          persons or acquire any businesses (or interests therein) (or commit to
          do any of the same (whether conditionally or otherwise)) except for:

          (a)  investments in the then existing  members of the Guarantor  Group
               (or a member of the Group or a newly formed  entity which in each
               case simultaneously  becomes a member of the Guarantor Group) and
               investments  by a member of the  Non-Guarantor  Group in  another
               member of the Non-Guarantor Group;

          (b)  (i) investments in the shares of or other ownership interests in,
               (ii)  loans  or  credit  granted  to,  (iii)  disposals  to  (not
               otherwise  permitted  under  12.2.4(a) to 12.2.4(e)  inclusive or
               clause  12.2.4(g)),  and (iv) guarantees of the  Indebtedness of,
               any member of the  Non-Guarantor  Group (or such  investments  in
               establishing  a new entity  which once  formed is a member of the
               Non-Guarantor  Group) where the  aggregate  of such  investments,
               loans,  credit,  disposals  and  guarantees  made in the relevant
               Financial  Year,  together  (without  double  counting)  with the
               Pooling Borrowed Money at any relevant time during such Financial
               Year, at no time exceeds:

               (i)  (pound)20,000,000  (or its equivalent)  during the Financial
                    Year ending 31 December 2002; or

              (ii)  (pound)15,000,000 (or its equivalent) during each subsequent
                    Financial  Year,  provided  that,  for the  purposes of this
                    clause 12.2.6(b):

                    (A)  "Pooling  Borrowed  Money" means, at any relevant time,
                         the  aggregate of the Borrowed  Money of any members of
                         the  Non-Guarantor  Group  under  any  cash  management
                         arrangements  in  respect  of Which  any  member of the
                         Guarantor Group grants any guarantee, rights of set-off
                         or any other Encumbrance or grants an intra-Group loan;

                    (B)  the value  attributable to a disposal of an asset shall
                         be the market value of the disposed asset; and

                    (C)  the  relevant   aggregate  limit  applicable  during  a
                         Financial  Year shall be increased by the amount of (A)
                         any  repayment,  release or  cancellation  (whether  in
                         whole or in  part) of  loans,  credits  and  guarantees
                         previously  taken  into  account  for  the  purpose  of
                         determining   compliance  with  this  clause  12.2.6(b)
                         during such  Financial  Year and (B) cash  proceeds (to
                         the extent not already  taken into account  pursuant to
                         (A)),  (net of related  costs and Taxes)  received by a
                         member  of the  Guarantor  Group  from a member  of the
                         Non-Guarantor  Group  in such  Financial  Year  under a
                         series of related transactions  involving an investment
                         in such member of the Non-Guarantor  Group made by such
                         member of the Guarantor  Group within 13 months of such
                         receipt  and  previously  taken  into  account  for the
                         purpose  of  determining  compliance  with this  clause
                         12.2.6(b) (to the extent that such

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                         net  cash  proceeds  do  not  exceed the amount of such
                         investment so taken into account).

          (c)  the acquisition of related businesses  (including companies where
               the liability of its  shareholders is limited to their respective
               share  capital in such company but not other  entities)  provided
               that:

               (i)  the  consideration   (without  double  counting  within  the
                    Group),   including,   without   limitation,   any  deferred
                    consideration  (whenever  payable),  and the  obligations in
                    respect of Borrowed  Money of any such  company  immediately
                    following its  acquisition or repaid  directly or indirectly
                    by any member of the Group or otherwise assumed by the Group
                    and taking the value of any  non-cash  consideration  at the
                    higher of its stated  value under the  agreement(s)  for the
                    acquisition  in  question  and  the  market  value  of  such
                    consideration  on the date such  agreement(s)  were  entered
                    into by the Group,  in respect of all such  acquisitions  by
                    the Group (other than consideration  constituted by ordinary
                    shares in the Parent issued or  transferred  to the relevant
                    vendor (or as it may  direct))  shall not exceed  $2,000,000
                    (or its equivalent) in aggregate in any Financial Year; and

              (ii)  the  consideration  constituted  by  ordinary  shares in the
                    Parent issued or transferred  to the relevant  vendor (or as
                    it may direct)) in respect of any single  acquisition  shall
                    not exceed $20,000,000 (or its equivalent); and

             (iii)  the finance  director of the Parent  delivers a  certificate
                    to the Agent at least 5 Banking  Days  before  any member of
                    the  Group  enters  into  any  commitment   (conditional  or
                    otherwise) to make such an  acquisition in which the finance
                    director of the Parent  confirms  that in his  opinion  (but
                    without any  personal  liability on the part of such finance
                    director):

                    (A)  the  Parent  is  basing  such  certificate  on the most
                         recent financial  information relating to such business
                         which has been obtained by the Parent (acting prudently
                         and  reasonably)  and the Group's latest  forecasts and
                         projections  (which  are fair and  reasonable  and have
                         taken full and proper  account of the business to be so
                         acquired (including, without limitation, all contingent
                         liabilities   relating   to  the   business  to  be  so
                         acquired));

                    (B)  the business to be so acquired is not  insolvent and is
                         EBITDA  positive (as determined in accordance  with the
                         definition  of  Consolidated  EBITDA in clause 1.2, but
                         adjusted    to   exclude   the   effect   of   historic
                         non-recurring costs which will no longer be incurred by
                         that business following its acquisition);

                    (C)  such acquisition is not, and the Parent it is not aware
                         (after due  enquiry)  of any matter or event  which is,
                         reasonably  likely to result in a breach of clause 13.1
                         (Financial  Covenants) or an Event of Default under any
                         of  clauses  14.1.1  (Non  payment)  or  14.1.5  (Cross
                         Default) to 14.1.15 (Analogous  proceedings)  inclusive
                         either  immediately  or  within  the  period  ending 12
                         months after the date of such acquisition;

                    (D)  the  Group  is  reasonably  likely  to have  sufficient
                         working  capital  during  the  period  ending 12 months
                         after the date of such acquisition;

                    (E)  after  taking  into  account  any  Capital  Expenditure
                         incurred by the Group in making such  acquisition,  the
                         Group  will  still  be  able,  in  compliance  with the
                         Financial  Covenant  in  clause  13.1.3,  to  undertake
                         sufficient  Capital   Expenditure  so  as  to  properly
                         maintain  its  businesses  during the period  ending 12
                         months after the date of such acquisition;

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<PAGE>

                    (F)  in  the  case  of   acquisitions   by  members  of  the
                         Non-Guarantor  Group,  such  acquisition  is not funded
                         directly or indirectly by any Guarantor,  other than to
                         the extent permitted under clause 12.2.6(b); and

                    (G)  no Default  has  occurred  which is  continuing  and no
                         Default will arise as a result of such acquisition; and

              (iv)  no Default has occurred  which is continuing  and no Default
                    will arise as a result of such acquisition, and

               for the avoidance of doubt, any such acquired businesses shall be
               immediately  subject to the  undertakings  in clauses 12.1.19 and
               12.2.2(c);

12.2.7    Change of  business:  it will not,  and will  procure that none of its
          Subsidiaries  will make any material  change to the general  nature of
          its business which would constitute a material change in the nature of
          the business of the Group taken as a whole from that carried on at the
          date of this Agreement;

12.2.8    Preference  Shares:  it will not,  and will  procure  that none of its
          Subsidiaries  will,  issue any shares or stock which are redeemable at
          the option of the holder  thereof or which  mature or are  mandatorily
          redeemable or which are convertible or exchangeable for Borrowed Money
          of the Group save as set out in Schedule 13;

12.2.9    The Lighthouse Acquisition: [deleted];

12.2.10   Transactions  similar to security:  it will not, and will procure that
          no other member of the Group will:

          (a)  sell or otherwise  dispose of any of its assets on terms  whereby
               such asset is or may be leased to, or  re-acquired or acquired by
               the Parent or any other member of the Group; or

          (b)  sell,  factor,  discount,  or dispose  of any of its  receivables
               other  than the  sale,  factoring,  discounting  or  disposal  of
               receivables on a non-recourse basis where the aggregate amount of
               receivables  so sold,  factored,  discounted or disposed does not
               exceed (pound)500,000 (or its equivalent) in aggregate;

12.2.11   Rights issue/equity  raising: (in the case of the Parent only) it will
          not issue any shares or otherwise acquire any additional capital other
          than:

          (a)  the issue of  ordinary  shares  to the  extent  permitted  (I) as
               consideration   for  any  Permitted   Acquisitions   or  (ii)  in
               consideration for acquisitions permitted under clause 12.2.6; and

          (b)  the issue of ordinary shares for cash payable in full on the date
               of issue  and which  ordinary  shares do not carry any right to a
               return or to redemption nor any right to be converted into shares
               carrying  such  right  before  all  amounts  (whether  actual  or
               contingent) owing under this Agreement have been paid in full and
               the Bank Finance Parties have no further obligations  thereunder,
               or the  granting of an option to call on the Parent to issue such
               shares;

          and it will at all  times  procure  that no other  member of the Group
          will issue any shares or otherwise acquire any additional  capital (or
          grant  any  rights to call for the  issue or  allotment  of any of the
          same)  other  than the  issue of  shares  by a member  of the Group to
          another member of the Group  permitted  under clause  12.2.6(a) or (b)
          provided  that (A) where  the  existing  shares in such  member of the
          Group  are  subject  to an  Encumbrance  under  any  of  the  Security
          Documents,  such  additional  shares  are  also  subject  to  such  an
          Encumbrance  and  (B)  where  such  existing  shares  are  subject  to
          Encumbrances   which  are  structured  to  avoid  an  adverse  US  Tax
          consequence to the Group,  such additional shares shall only be issued
          to the existing holding company of the issuing member of the Group;

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12.2.12   Dividends and other distributions: the Parent will not

          (a)  and will procure that no other member of the Group will redeem or
               purchase or otherwise reduce any of the Parent's share capital or
               any uncalled  capital or unpaid  liability in respect  thereof or
               reduce the amount  (if any) for the time  being  standing  to the
               credit  of  the  Parent's   share  premium   account  or  capital
               redemption or other undistributable  reserve in any manner (other
               than  a  partial  capital   reorganisation  in  order  to  create
               distributable reserves where no amount is paid or becomes payable
               (including, without limitation, by way of set-off, combination of
               accounts or otherwise) to any  shareholder  in the Parent as part
               of such reorganisation); or

          (b)  declare, pay (including,  without limitation,  by way of set-off,
               combination  of  accounts or  otherwise)  or permit to accrue any
               dividend or make any other  distribution  or payment  (whether in
               cash  or  in  specie),   including  any  interest  and/or  unpaid
               dividends,  in respect of its equity or any other  share  capital
               for the time being in issue  except that it may declare and pay a
               final  dividend  (but not an interim  dividend) in respect of any
               Financial Year after 31 December 2001, provided that:

               (i)  the  Financial  Covenants  have been tested and passed as at
                    the 30 June  Financial  Covenants test date in the following
                    Financial Year; and

              (ii)  no breach of any of the Financial Covenants has occurred and
                    is  continuing  and no other Default or Event of Default has
                    occurred which is continuing; and

             (iii)  the ratio of Consolidated  Gross  Borrowings to Consolidated
                    EBITDA  was not  greater  than  3.50:1  on each of two  most
                    recent consecutive Financial Covenants test dates; and

              (iv)  the  dividend  does not  exceed 25% of  Consolidated  Excess
                    Cashflow if the ratio of  Consolidated  Gross  Borrowings to
                    Consolidated  EBITDA was not less than 3.25:1 on each of the
                    two most recent  consecutive  Financial Covenant test dates;
                    and

               (v)  the  dividend  does not  exceed 50% of  Consolidated  Excess
                    Cashflow; and

              (vi)  not later than 5 and no more than 15  Banking  Days prior to
                    the  proposed  date for the  payment  of that  dividend  the
                    finance  director (or, if  unavailable  for any reason,  any
                    other director in each case in such  directors'  opinion but
                    without  personal  liability) of the Parent  delivers to the
                    Agent a certificate in which the Parent  certifies  (without
                    qualification) that:

                    (A)  it proposes to pay a dividend  and states the amount of
                         it;

                    (B)  no  breach  of  any  of  the  Financial  Covenants  has
                         occurred  and is  continuing  and no other  Default has
                         occurred which is continuing;

                    (C)  in the opinion of the board of  directors of the Parent
                         (acting in good faith and after  having  regard  (inter
                         alia) to the  current  and  projected  trading and cash
                         flow  position  of the Group  (such  projections  being
                         based on  reasonable  assumptions),  and  assuming  the
                         making of such dividend):

                         1)   no breach of clause 13.1 (Financial  Covenants) or
                              any Event of Default is reasonably likely to occur
                              either  immediately or within the period ending 12
                              months after the date of the dividend; and

                         2)   the Group is reasonably likely to have  sufficient
                              working capital during such 12 month period,

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                    and such certificate  shall be accompanied by (a) a forecast
                    for the  period  of 6 full  months  following  the  proposed
                    payment date  showing the  projected  respective  amounts of
                    Consolidated   EBITDA,    Consolidated   Gross   Borrowings,
                    Consolidated Net Interest  Expenditure,  Capital Expenditure
                    and  Net  Worth  and  their  application  to  the  Financial
                    Covenants in respect of each  Financial  Covenant  test date
                    within  such  period,  such  forecast  to be  based  on  the
                    knowledge of the Parent and the circumstances  then existing
                    at such time together with reasonable assumptions, and (b) a
                    calculation by the Parent of  Consolidated  Excess Cash Flow
                    for the relevant Financial Year (showing the calculations on
                    which  it is  based)  together  with a  statement  from  the
                    Auditors  as to the amount of the  Consolidated  Excess Cash
                    Flow   confirming   that  in  all   material   respects  the
                    calculation  has been made in  accordance  with the  audited
                    consolidated  financial  statements  of the  Group  for  the
                    relevant  Financial Year and the definition of  Consolidated
                    Excess Cash Flow;

12.2.13   Zenith:  in the case of the Parent only, it will not, and will procure
          that no other member of the Group will,  terminate,  amend or vary (or
          acquiesce in any termination,  amendment or variation of) the terms of
          the Zenith Joint Venture  Agreement in a way which might reasonably be
          expected to adversely  affect the Group's rights or interests under or
          in respect of the put and call options  contained  therein relating to
          the Group's shares in Zenith or which might  reasonably be expected to
          adversely  affect  (or  delay)  the  amount of  receipt  of any amount
          referred to in clause 8.6.3;

12.2.14   Accounting  Policy:  in the case of the Parent only, it will not adopt
          any accounting  policy or change the consistency of application of its
          accounting  principles,   standards,  practises  and  bases  from  the
          Appropriate  Accounting  Principles  (i)  unless the  revised  policy,
          principle,  standard, practice or base adopted from time to time is in
          accordance with generally accepted  accounting  practice in the United
          Kingdom and (ii) provided that prior to any revised policy, principle,
          standard,  practice  or base being  adopted the Parent will notify the
          Agent  thereof and, if required by the Agent,  will  negotiate in good
          faith  with the  Agent in order  that the  Financial  Definitions  and
          Financial Covenants may be amended as may be necessary to grant to the
          Bank  Finance  Parties  protection  comparable  to that granted on the
          Restructuring   Date  provided  that  if  such  negotiations  are  not
          concluded  to the  satisfaction  of the Agent  within 30 days from the
          commencement of such negotiations  (or, if earlier,  any date on which
          any financial  statements are due to be delivered under clause 12.1.6)
          the Parent agrees that it will provide either financial  statements on
          the same basis as before or provide financial statements together with
          a  reconciliation  of those  financial  statements to the  Appropriate
          Accounting Principles (such reconciliation, in the case of any audited
          financial statements,  to be prepared by the Auditors and addressed to
          the Bank Finance Parties);

12.2.15   Accounting  Reference  Date:  (in the case of the Parent only) it will
          not, without the consent of the Agent, change its accounting reference
          date from 31 December;

12.2.16   Cash management arrangements: (in the case of the Parent only) it will
          not allow any member of the Non-Guarantor Group incorporated or formed
          in the United States or in England and Wales to be a party to any Cash
          Pooling  Arrangements  with any other  member or members of the Group,
          other than where the value of any loans,  credits,  rights of set-off,
          guarantees  or other  Encumbrances  provided  to such  members  of the
          Non-Guarantor  Group does not exceed  (pound)500,000  and such  loans,
          credits,  rights of  set-off,  guarantees  or other  Encumbrances  are
          subject to clause 12.2.6(b); and

12.2.17   Other credit facilities and securities:

          (a)  it will not, and will procure that no other Obligor  will,  enter
               into  any  modification  or  amendment  to  any  existing  credit
               facility  or  other  financing   document   (including,   without
               limitation,  the Amended and Restated Note Purchase  Agreement or
               the Notes),  or enter into any new credit  facility or  financing
               document,   that   contains   financial   covenants,    financial
               definitions or default  provisions  more favourable to the lender
               or  financier  thereunder  than under any Bank  Finance  Document
               unless the Bank Finance Parties are given the option of receiving
               the benefit of such more  favourable  provisions at the same time
               and on the same terms; and

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<PAGE>

          (b)  it will not,  and will  procure that no other member of the Group
               will, provide any guarantee or any Encumbrance to the Noteholders
               to secure the  obligations  of any member of the Group  under the
               Note  Finance  Documents  (whether  or not also in respect of any
               other  Indebtedness)  unless the same or a similar  guarantee  or
               Encumbrance  has also been entered into to secure the obligations
               of any member of the Group under the Bank Finance  Documents.

13        Financial Covenants

13.1      Covenants

          The Parent undertakes with each of the Finance Parties that so long as
          any moneys are owing under this  Agreement  or any of the  Commitments
          remain  outstanding  it will comply with the  Financial  Covenants  in
          clauses 13.1.1 to 13.1.4 inclusive.

13.1.1    Net  Interest  Cover:  The  Parent  will  procure  that  the  ratio of
          Consolidated EBITDA to Consolidated Net Interest  Expenditure for each
          period ending on the date set out in column A in the table below shall
          not be less  than the  corresponding  ratio set out in column B in the
          table below:

          31 March 2002                  2.50:1
          30 June 2002                   1.75:1
          30 September 2002              2.50:1
          31 December 2002               2.50:1
          31 March 2003                  2.75:1
          30 June 2003                   3.00:1
          30 September 2003              3.25:1
          31 December 2003               3.75:1
          31 March 2004                  4.00:1
          30 June 2004                   4.50:1
          30 September 2004              5.00:1

13.1.2    Leverage: The Parent will procure that the ratio of Consolidated Gross
          Borrowings  as at the end of, to  Consolidated  EBITDA in respect  of,
          each period  ending on the date set out in column A of the table below
          shall not be  greater  than the ratio set out in column B of the table
          below:

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          31 March 2002                  5.75:1
          30 June 2002                   8.50:1
          30 September 2002              4.75:1
          31 December 2002               4.75:1
          31 March 2003                  4.25:1
          30 June 2003                   3.75:1
          30 September 2003              3.75:1
          31 December 2003               3.50:1
          31 March 2004                  3.00:1
          30 June 2004                   3.00:1
          30 September 2004              2.75:1

13.1.3    Maximum Capital  Exnenditure:  The Parent will procure that, the total
          Capital  Expenditure of all members of the Group in any Financial Year
          shall not exceed the Budgeted  Capital  Expenditure for such Financial
          Year but so that in respect of any  Financial  Year where the relevant
          actual Capital  Expenditure (less any amount which was carried forward
          from the previous  Financial  Year) is less than the Budgeted  Capital
          Expenditure  for that Financial  Year, an amount equal to such deficit
          may be  carried  over to the  following  Financial  Year only (and not
          otherwise or further) and shall be deemed to be spent before  Budgeted
          Capital Expenditure in that year.

          For the purposes of this clause 13.1.3 "Budgeted Capital  Expenditure"
          means Capital  Expenditure  incurred or to be incurred up to a maximum
          of the amount set out in column B in the table below for the Financial
          Year set out in column A in the table below.

          31 December 2002               10.0
          31 December 2003               17.5
          31 December 2004               20.0

13.1.4    Consolidated  Net Worth  Covenant:  The Parent will  procure  that the
          Consolidated  Net  Worth  of  the  Group  will  at  all  times  be  at
          least(pound)400,000,000.

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13.2      Testing of the Financial Covenants

13.2.1    The Financial Definitions and Financial Covenants in clause 13.1 shall
          be  determined  for and  tested as at the end of each  Quarter in each
          case by reference to the latest Quarterly  Management Accounts and the
          related  Compliance  Certificate  delivered  to the Agent  pursuant to
          clauses  12.1.6(b)  and  12.1.6(d),   provided  that  if  the  Audited
          Financial   Statements  and  the  related  Auditor's  Report  for  any
          Financial  Year  delivered in  accordance  with clauses  12.1.6(a) and
          12.1.6(e) show different  determinations for the Financial Definitions
          than those shown in the  Quarterly  Management  Accounts  for the last
          Quarter in that  Financial  Year,  such Audited  Financial  Statements
          shall prevail in respect of such determinations.

13.2.2    For the purposes of testing the relevant Financial Covenants in clause
          13.1, Consolidated Gross Borrowings will be calculated by reference to
          the average  daily  outstandings  over the two Quarters  ending on the
          relevant  Financial  Covenants test date and  Consolidated  EBITDA and
          Consolidated Net Interest Expenditure shall be calculated on a rolling
          twelve months basis.

14        Events of Default

14.1      Events of Default

          Each of the  events  and  circumstances  set out  below is an Event of
          Default  (whether  or not caused by any reason  outside the control of
          any member of the Group):

14.1.1    Non-payment:  any Borrower  fails to pay any sum due from it under the
          Bank Finance Documents in the currency,  at the time and in the manner
          stipulated  in the  relevant  Bank  Finance  Document  unless (a) such
          failure  results only from technical  difficulties  in the transfer of
          funds and (b) such failure is remedied  within two Banking Days of the
          due date; or

14.1.2    Breach of certain  obligations:  any Borrower commits any breach of or
          omits to observe any of the obligations or  undertakings  expressed to
          be assumed by it under clauses 12.2 and 13.1; or

14.1.3    Breach of other  obligations:  any  Obligor  commits  any breach of or
          omits to observe any of the obligations or  undertakings  expressed to
          be assumed  by it under the Bank  Finance  Documents  to which it is a
          party (other than any such obligations or undertakings  referred to in
          clauses  14.1.1 and  14.1.2)  and,  in  respect of any such  breach or
          omission  which in the  reasonable  opinion of the  Majority  Banks is
          capable of remedy, such action as the Agent may require shall not have
          been taken  within 5 Banking  Days in the case of a breach or omission
          to observe of any of the obligations or  undertakings  expressed to be
          assumed under clauses 12.1.6(a),  12.1.6(b), 12.1.6(d) or 12.1.6(e) or
          10 Banking Days in all other cases of the Agent  notifying  the Parent
          of such default and of such required action; or

14.1.4    Misrepresentation: any representation or warranty made or deemed to be
          made or repeated by or in respect of any Obligor in or pursuant to any
          Bank  Finance  Document or in any  notice,  certificate  or  statement
          referred  to in and to be  delivered  by any  Obligor  under  any Bank
          Finance  Document is or proves to have been incorrect or misleading in
          any  material  respect  at the date made or deemed to be  repeated  in
          either case by  reference to the facts and  circumstances  existing on
          such day and the circumstances  giving use to such  misrepresentation,
          if in the  reasonable  opinion of the  Majority  Banks are  capable of
          remedy,  shall not have been  remedied  within 10 Banking  Days of the
          Agent as relevant notifying the Parent of such  misrepresentation  and
          of such required remedy; or

14.1.5    Cross-default:  any  Borrowed  Money of any member of the Group is not
          paid  when  due (or  within  any  applicable  grace  period  expressly
          contained  in the  agreement  relating to such  Borrowed  Money in its
          original terms) or becomes (whether by declaration or automatically in
          accordance with the relevant agreement or instrument  constituting the
          same) due and payable prior to the date when it would  otherwise  have
          become due or any creditor of any member of the Group becomes entitled
          to declare any Borrowed Money of any member of

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          the Group so due and payable or to require cash  collateralisation  or
          security for any such  Borrowed  Money (save  pursuant to the terms of
          this Agreement) or any facility or commitment  available to any member
          of the Group  relating to Borrowed  Money is  withdrawn,  suspended or
          cancelled by reason of any default  (however  described) of the member
          of the Group concerned  unless the amount,  or aggregate amount at any
          one  time,  of all  Borrowed  Money in  relation  to which  any of the
          foregoing  events shall have occurred and be continuing is equal to or
          less than  (pound)3,250,000  or its  equivalent  in the  currencies in
          which the sums are denominated and payable; or

14.1.6    Notes  default:  any Event of Default"  (as defined in the Amended and
          Restated Note Purchase  Agreement) under the Amended and Restated Note
          Purchase Agreement regardless of any waiver thereunder, or

14.1.7    Derivatives  Contract  default:  any member of the Group fails to make
          payment in relation to a  Derivatives  Contract of any sum equal to or
          greater  than(pound)3,250,000  in  aggregate  at any one  time (or its
          equivalent  in the  relevant  currency  of  payment)  on its due  date
          (taking   into   account  any  grace   period   permitted   under  the
          documentation for that Derivatives Contract or, if none stated, within
          5 Banking Days of the due date) or the  counterparty  to a Derivatives
          Contract becomes entitled to terminate that Derivatives Contract early
          by reason of  default  on the part of any  member of the Group and the
          Net Derivatives  Liability in the aggregate payable under all affected
          Derivatives  Contracts  at the  relevant  time is equal to or  greater
          than(pound)3,250,000 (or its equivalent in the relevant currency); or

14.1.8    Legal  process:  any  judgment  or order made  against  any Obligor or
          Material Subsidiary is not stayed or complied with within 14 days or a
          creditor  attaches or takes  possession of, or a distress,  execution,
          sequestration  or other process is levied or enforced upon or sued out
          against,  any material  part of the  undertakings,  assets,  rights or
          revenues of any Obligor or Material  Subsidiary  and is not discharged
          within 14 days; or

14.1.9    Insolvency

          (a)  any Material  Subsidiary  or Obligor is (i) deemed  unable to pay
               its debts within the meaning of section  123(1 )(e) or (2) of the
               Insolvency  Act 1986  (but so that the words "it is proved to the
               satisfaction  of the court that" shall be deemed to be  deleted),
               (ii)  becomes,  or admits to being,  unable  generally to pay its
               debts as they fall due or (iii)  otherwise  becomes  insolvent or
               stops or  suspends  making  payments  (whether  of  principal  or
               interest)  with  respect  to all or any  class  of its  debts  or
               announces an intention to do so; or

          (b)  any Material  Subsidiary  or Obligor  incorporated  in the United
               States  commences a voluntary  case or other  proceeding  seeking
               liquidation,  reorganisation  or other  relief  with  respect  to
               itself or its debts  under any  bankruptcy,  insolvency  or other
               similar law now or hereafter  in effect or seeks the  appointment
               of a trustee,  receiver,  liquidator,  custodian or other similar
               official  of it or  any  substantial  part  of its  property,  or
               consents  to any such relief or to the  appointment  of or taking
               possession by any such official in an  involuntary  case or other
               proceeding  commenced  against it, or makes a general  assignment
               for the benefit of creditors, or fails generally to pay its debts
               as they become due, or takes any  corporate  action to  authorise
               any of the foregoing; or

          (c)  an involuntary case or other proceeding is commenced  against any
               Material Subsidiary or Obligor  incorporated in the United States
               seeking liquidation,  reorganisation or other relief with respect
               to it or its debts  under  any  bankruptcy,  insolvency  or other
               similar law now or hereafter in effect or seeking the appointment
               of a trustee,  receiver,  liquidator,  custodian or other similar
               official of it or any substantial part of its property,  and such
               involuntary  case or other  proceeding  remains  undismissed  and
               unstayed  for a period  of 60 days;  or an order  for  relief  is
               entered against any such Material Subsidiary or Obligor under the
               US federal bankruptcy laws as now or hereafter in effect; or

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          (d)  a petition for insolvency proceedings in respect of the assets of
               any Material  Subsidiary  or Obligor  incorporated  in Germany is
               filed or threatened to be filed (such threat not to be frivolous)
               or any event occurs which  constitutes a cause for the initiation
               of  insolvency  proceedings  ("Eroffnungsgrund")  as set forth in
               Sec. 17 et seq.  German  Insolvency  Code, in particular any such
               Material  Subsidiary or Obligor ceases to honour its obligations,
               becomes  insolvent or overindebted,  admits its inability to meet
               its  obligations  as they fall due or  anything  occurs  which is
               similar to the above under the laws of any jurisdiction; or

14.1.10   Reduction  or loss of capital:  a meeting is convened by any  Material
          Subsidiary  or Obligor for the purpose of passing  any  resolution  to
          purchase,  reduce or redeem any of its share capital or to comply with
          section  142 of the  Companies  Act 1985 other than (i) in  connection
          with the redemption of preference  shares at their scheduled  maturity
          as permitted  under this Agreement or (ii) with the written consent of
          the Agent (acting on the instructions of the Majority Banks); or

14.1.11   Winding up: any  petition is  presented or other step is taken for the
          purpose of winding up any Material  Subsidiary or Obligor (not being a
          petition which such entity can demonstrate to the  satisfaction of the
          Agent, by providing an opinion of leading  counsel to that effect,  is
          frivolous,  vexatious  or an  abuse  of the  process  of the  court or
          relates to a claim to which such  entity has a good  defence and which
          is being vigorously  contested by such company) or an order is made or
          resolution  passed for the winding up of any  Material  Subsidiary  or
          Obligor or a notice is issued  convening  a meeting for the purpose of
          passing any such  resolution,  other than in  relation  to, or for the
          purpose of, a solvent  reorganisation on terms previously  approved by
          the Agent; or

14.1.12   Administration:  any  petition is presented or other step is taken for
          the purpose of the  appointment  of an  administrator  of any Material
          Subsidiary or Obligor or an  administration  order is made in relation
          to any Material Subsidiary or Obligor; or

14.1.13   Appointment  of receivers and managers:  any  administrative  or other
          receiver is  appointed of any  Material  Subsidiary  or Obligor or any
          material part of its assets and/or undertakings or any other steps are
          taken to enforce any Encumbrance over all or any part of the assets of
          any Material Subsidiary or Obligor; or

14.1.14   Compositions:  any steps are taken, or negotiations  commenced, by any
          Material  Subsidiary or Obligor or by any of its creditors with a view
          to  proposing  any  kind of  composition,  compromise  or  arrangement
          involving such entity and its creditors generally,  other than for the
          purposes of a solvent  reorganisation on terms previously  approved by
          the Agent; or

14.1.15   Analogous  proceedings:  there  occurs,  in relation  to any  Material
          Subsidiary or Obligor, in any country or territory in which it carries
          on business  or to the  jurisdiction  of whose  courts any part of its
          assets is subject,  any event which, in the reasonable  opinion of the
          Agent,  appears in that country or territory to  correspond  with,  or
          have an effect  equivalent  or similar to, any of those  mentioned  in
          clauses 14.1.8 (Legal process) to 14.1.14  (Compositions)  (inclusive)
          or any Material Subsidiary or Obligor otherwise becomes subject (other
          than  merely as a result of its  existence),  in any such  country  or
          territory,  to  the  operation  of any  law  relating  to  insolvency,
          bankruptcy or liquidation; or

14.1.16   Cessation of business:  any Material Subsidiary or Obligor suspends or
          ceases or  threatens to suspend or cease to carry on all or a material
          part  of its  business  other  than  as  otherwise  permitted  by this
          Agreement or on terms previously agreed by the Agent; or

14.1.17   Seizure: all or a material part of the undertaking,  assets, rights or
          revenues of, or shares or other  ownership  interests in, any Material
          Subsidiary  or  Obligor  are  seized,  nationalised,  expropriated  or
          compulsorily  acquired  by or under the  authority  of any  government
          other than for full consideration; or

14.1.18   Change of control: (deleted); or

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14.1.19   Unlawfulness:  it  becomes  unlawful  at any time for any  Obligor  to
          perform all or any of its obligations  under any Bank Finance Document
          to which it is a party; or

14.1.20   Repudiation:  any Obliger repudiates any of the Bank Finance Documents
          to which it is a party or does or causes or permits to be done any act
          or thing  evidencing an intention to repudiate any of the Bank Finance
          Documents; or

14.1.21   Material  Adverse Effect:  any event or circumstance  arises which, in
          opinion of the Majority Banks (acting reasonably):

          (a)  is, or is reasonably likely to be, materially  adverse to (i) the
               ability  of any  Obligor  to pay any sum due from it under any of
               the Bank  Finance  Documents,  (ii) the ability of any Obligor to
               comply with any of its obligations or  undertakings  expressed to
               be assumed by it under clauses 12.1.6(a),  12.1.6(b),  12.1 .6(d)
               and  12.1.6(e) at the time and in the manner  stipulated in those
               clauses  (or  within the grace  period  applicable  under  clause
               14.1.3),  (iii) the  ability of any Obligor to comply with any of
               its  obligations  or  undertakings  expressed to be assumed by it
               under clauses 12.2, or 13 of this Agreement,  (iv) the ability of
               any  Obligor to perform any of its  obligations  under any of the
               Security  Documents  or (v) the  business,  assets  or  financial
               condition of the Group taken as a whole; or

          (b)  results in, or is reasonably likely to result in, any of the Bank
               Finance  Documents  not being  legal,  valid and binding on, and,
               enforceable substantially in accordance with their terms, against
               any party thereto; or

14.1.22   Qualification  of accounts:  the Auditors  qualify their report on the
          preliminary or final audited consolidated  financial statements of the
          Group in any way except where the  qualification  has been agreed with
          the  Banks or where  the  remedy  for the  matter  giving  rise to the
          qualification  would have no material adverse effect on the results of
          the Group for the  period to which  such  accounts  relate  nor on the
          financial position of the Group as at the end of such period; or

14.1.23   ERISA: with respect to any member of the Group  incorporated or formed
          in the United States,  a Plan shall be terminated  pursuant to Section
          4041(c) of ERISA or PBGC shall  institute  proceedings  under  Section
          4042 of ERISA for the  termination of, or the appointment of a trustee
          to administer,  any Plan or a member of the Group  incorporated in the
          United  States  shall incur any  liability as a result of a prohibited
          transaction  within the meaning of Section 4975 of the Code or Section
          406 of ERISA, or contributions  required to be made to a Plan pursuant
          to Section  412 of the Code shall not be made,  which,  in the case of
          any of the events  described in this clause  14.1.23,  shall result in
          liability of any member of the Group incorporated in the United States
          or any ERISA Affiliate which has or can reasonably be expected to have
          a Material Adverse Effect; or

14.1.24   Challenge  to security:  any  Security  Document is not at the date of
          execution thereof or ceases to be effective in any material respect or
          any Obligor shall in any way challenge,  or any  proceedings  shall in
          any way be brought to challenge the validity or  enforceability of any
          of the Security Documents.

14.2      Acceleration

          The  Agent  if so  requested  by the  Majority  Banks  shall,  without
          prejudice to any other rights of the Bank Finance Parties, at any time
          after the  happening  of an Event of  Default  (and for so long as the
          Event of Default is continuing  unremedied  and unwaived) by notice to
          the Parent declare that:

14.2.1    the obligation of each Funder to make its Commitment  available  shall
          be  terminated,  whereupon the Total  Commitments  shall be reduced to
          zero forthwith; and/or

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14.2.2    all  outstanding  Advances  and  Utilisations  and  all  interest  and
          commitment  commission  accrued and all other sums payable  under this
          Agreement  (including  full cash cover in  respect of all  outstanding
          Swingline  Letters of Credit) have become  immediately due and payable
          or have  become due and payable on demand,  whereupon  the same shall,
          immediately or in accordance with the terms of such notice,  become so
          due and payable; and/or

14.2.3    the  Security  Documents  (or any of  them)  have  become  enforceable
          whereupon the same shall be  enforceable,  provided  that  immediately
          upon the  occurrence of any of the events  specified in clauses 14.1.9
          (Insolvency)  to 14.1.15  (Analogous  proceedings)  (inclusive)  on or
          after the date of this  Agreement  in  relation  to any  member of the
          Group  incorporated  in the United States and whether or not the Agent
          shall have previously made any declaration  pursuant to clauses 14.2.1
          or  14.2.2  above,  the  events  specified  in such  paragraphs  shall
          automatically occur as if the Agent had made a declaration pursuant to
          such paragraphs and all Commitments shall be cancelled and all amounts
          due under this  Agreement  shall  immediately  become due and  payable
          (including  full cash cover in respect  of all  outstanding  Swingline
          Letters of Credit) together with all accrued interest.

          On or at any time after the making of any such declaration,  the Agent
          or the Swingline  Bank (as the case may be) shall be entitled,  to the
          exclusion of the Borrowers,  to select the duration of each period for
          the calculation of interest in relation to any outstanding Advances or
          other sums payable under this Agreement.

14.3      Demand basis

          If,  pursuant to clause  14.2.2,  the Agent  declares all  outstanding
          Advances  and  Utilisations  to be due and  payable on demand then the
          Agent may (and, if so instructed by the Majority Banks,  shall) at any
          time by written  notice to the Borrowers (a) call for repayment of the
          Advances  and  Utilisations  on such date as may be  specified in such
          notice  whereupon the Advances and  Utilisations  shall become due and
          payable  on the  date so  specified  together  with all  interest  and
          commitment  commission  accrued and all other sums payable  under this
          Agreement  (including  full cash cover in  respect of all  outstanding
          Swingline  Letters of Credit) or (b) withdraw  such  declaration  with
          effect from the date specified in such notice.

15        Indemnities

15.1      Miscellaneous indemnities

          Each  Borrower  shall on  demand  indemnify  each Bank  Finance  Party
          without  prejudice to any of their other rights under the Bank Finance
          Documents,  against  any loss  (including  loss of  Margin) or expense
          which such Bank Finance  Party shall  certify as sustained or incurred
          by it as a consequence of:

15.1.1    any default in payment by any member of the Group of any sum under any
          of the Bank Finance Documents when due;

15.1.2    the occurrence of any other Event of Default;

15.1.3    any prepayment of all or part of any Advance being made otherwise than
          on its Repayment Date; or

15.1.4    any  Advance  not being made or  Swingline  Letter of Credit not being
          issued  for any  reason  (excluding  any  default  by the  Agent,  the
          Swingline  Bank, any Arranger or any Bank) after a Drawdown  Notice or
          an L/C Application has been given;

          including,  in any such case,  but not limited to, any loss or expense
          sustained  or incurred by such Bank in  maintaining  or funding all or
          any  part  of  its  Contribution  or in  liquidating  or  re-employing
          deposits from third parties  acquired or contracted for to fund all or
          any part of its Contribution or any other amount owing to such Bank.

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15.2      Currency of account; currency indemnity

          No payment by a Borrower under any Bank Finance Document which is made
          in a currency  other than the  currency  ("Contractual  Currency")  in
          which such  payment is  required to be made  pursuant to the  relevant
          Bank Finance  Document  shall  discharge the  obligation in respect of
          which it is made  except  to the  extent  of the net  proceeds  in the
          Contractual  Currency received by the Agent, the Swingline Bank or the
          Overdraft  Bank,  as  appropriate  upon  the sale of the  currency  so
          received,  after taking into account any premium and costs of exchange
          in  connection  with such  sale.  For the  avoidance  of doubt no Bank
          Finance  Party  shall be  obliged  to  accept  any such  payment  in a
          currency  other  than the  Contractual  Currency  nor  shall  any Bank
          Finance  Party be liable to any  Borrower for any loss or alleged loss
          arising from  fluctuations in exchange rates between the date on which
          such payment is so received by the Agent,  the  Swingline  Bank or the
          Overdraft  Bank, as appropriate  and the date on which the Agent,  the
          Swingline  Bank or the  Overdraft  Bank, as  appropriate  effects such
          sale, as to which the Agent, the Swingline Bank or the Overdraft Bank,
          as appropriate  shall (as against such Borrower) act in good faith. If
          any sum due from a Borrower  under any Bank  Finance  Document  or any
          order or judgment  given or made in relation  hereto is required to be
          converted from the  Contractual  Currency or the currency in which the
          same is payable  under such order or judgment  (the "first  currency")
          into another  currency (the "second  currency") for the purpose of (a)
          making or filing a claim or proof against a Borrower, (b) obtaining an
          order or judgment in any court or other  tribunal or (c) enforcing any
          order or  judgment  given  or made in  relation  to any  Bank  Finance
          Document,  such  Borrower  shall  indemnify and hold harmless the Bank
          Finance  Parties from and against any loss suffered as a result of any
          difference  between (i) the rate of exchange  used for such purpose to
          convert the sum in question  from the first  currency  into the second
          currency  and (ii) the rate or rates of  exchange  at which  such Bank
          Finance  Party may in the  ordinary  course of business  purchase  the
          first currency with the second  currency upon receipt of a sum paid to
          it in satisfaction,  in whole or in part, of any such order, judgment,
          claim or proof.  Any amount due from a  Borrower  under the  indemnity
          contained  in this  clause  15.2 shall be due as a  separate  debt and
          shall not be affected by judgment  being  obtained  for any other sums
          due  under or in  respect  of this  Agreement  and the  term  "rate of
          exchange"  includes  any  premium  and costs of  exchange  payable  in
          connection  with the  purchase of the first  currency  with the second
          currency.

15.3      ECB reserve requirements

          The Parent shall on demand  indemnify  each Funder against any cost or
          loss suffered by it as a result of complying  with European  System of
          Central Banks  reserve  requirements  to the extent such  requirements
          relate to its  participation in the Facilities and are not recoverable
          by such Funder under clause 16.2.

16        Unlawfulness and increased costs; mitigation

16.1      Unlawfulness

          If, after the date of this Agreement it is or becomes  contrary to any
          applicable  law or regulation for any Funder to contribute to Advances
          or to maintain its  Commitment or fund its  Contribution  or to fulfil
          its  obligations  under clause 6 or clause 7 or for the Swingline Bank
          to issue or perform its obligations  under Swingline Letters of Credit
          such Funder shall  promptly,  through the Agent,  notify the Parent of
          (i) the obligations which have been rendered illegal, (ii) the date on
          which the  illegality has or will take effect and (iii) details of the
          relevant law or regulation whereupon:

16.1.1    such Funder's  Commitment under the Revolving Credit  Facilities,  the
          Swingline  Facility or the Overdraft  Facility,  as relevant  shall be
          reduced to zero but without  prejudice to the obligations to indemnify
          the Swingline Bank in relation to Swingline  Letters of Credit and the
          Overdraft  Bank in  relation  to the  Overdraft  Facility  pursuant to
          clauses  6.12 and 7.2 which will remain in full force and effect until
          the Swingline  Bank or the Overdraft  Bank, as relevant  notifies such
          Bank that it is satisfied that the Swingline Borrower or the Overdraft
          Borrower,  as  relevant,  has cash  callateralised  the amount of that
          Funder's  indemnification exposure in respect of outstanding Swingline
          Letters of Credit or the Overdraft Facility; and

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16.1.2    the Borrowers shall be obliged to:

          (a)  prepay the Contribution of such Funder on a future specified date
               not being  earlier than the latest date, if such  illegality  has
               taken effect, permitted by the relevant law or regulation; and

          (b)  pay  an  amount  equivalent  to,  and in the  currency  of,  such
               indemnification exposure in respect of each outstanding Swingline
               Letter of Credit and the Overdraft Facility, to the Agent as cash
               collateral for such exposure; and

          (c)

               (i)  if it becomes so contrary to any law or regulation  prior to
                    the proposed date of opening the Swingline  Letter of Credit
                    for the  Swingline  Bank to open  such  Swingline  Letter of
                    Credit,  the  obligations  of the  Swingline  Bank to  issue
                    Swingline Letters of Credit shall forthwith terminate; and

               (ii) if it becomes so contrary to any law or regulation after the
                    L/C  Issue  Date  for  the  Swingline  Bank  to  perform its
                    obligations  under a  Swingline  Letter of  Credit  then the
                    Agent shall,  at the request and on behalf of the  Swingline
                    Bank,  give notice to the relevant  Borrower  requiring  the
                    relevant  Borrower to cause the  liability of the  Swingline
                    Bank under that Swingline  Letter of Credit to be discharged
                    in full  to the  satisfaction  of the  Swingline  Bank.

          Any  prepayment  pursuant to this  clause 16.1 shall be made  together
          with all amounts referred to in clause 8.7

16.2      Increased costs

          If the result of any change in, or in the official  interpretation  or
          application  of, or the  introduction  of, any law or any  regulation,
          request or  requirement  (whether or not having the force of law, but,
          if not having the force of law, with which the relevant  Funder or, as
          the case may be, its holding company habitually  complies),  including
          (without  limitation)  those relating to Taxation,  capital  adequacy,
          liquidity,  reserve assets,  cash ratio deposits and special deposits,
          (including  European System of Central Banks reserve  requirements) is
          to:

16.2.1    subject  any  Funder to Taxes or change the basis of  Taxation  of any
          Funder with respect to any payment  under this  Agreement  (other than
          Taxes or Taxation on the overall net income,  profits or gains of such
          Funder imposed in the  jurisdiction  in which its principal or lending
          office under this Agreement is located); and/or

16.2.2    increase the cost to, or impose an  additional  cost on, any Funder or
          its holding company in making or keeping available all or part of such
          Funder's  Commitment  or  maintaining  or funding  all or part of such
          Funder's Contribution; and/or

16.2.3    reduce the amount payable or the effective  return to any Funder under
          this Agreement; and/or

16.2.4    reduce  any  Funders  or its  holding  company's rate of return on its
          overall  capital  by reason  of a change in the  manner in which it is
          required to allocate  capital  resources to such  Funders  obligations
          under this Agreement; and/or

16.2.5    require any Funder or its holding company to make a payment or forgo a
          return  calculated  by  reference  to or on  any  amount  received  or
          receivable by such Funder under this Agreement; and/or

16.2.6    require any Funder or its  holding  company to incur or sustain a loss
          (including  a loss of  future  potential  profits)  by reason of being
          obliged to deduct  all or part of such  Funder's Commitment,  exposure
          under Swingline Letters of Credit or Contribution from its capital for
          regulatory purposes,

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          then and in each such case (but subject to clause 16.3):

          (a)  such Funder shall notify the Parent  through the Agent in writing
               of such event promptly upon its becoming aware of the same; and

          (b)  the  Borrowers  shall on demand,  made at any time whether or not
               such Funder's Contribution or exposure under Swingline Letters of
               Credit has been repaid,  pay to the Agent for the account of such
               Funder the amount which such Funder  specifies  (in a certificate
               setting forth the basis of the computation of such amount but not
               including  any matters  which such Funder or its holding  company
               regards as  confidential)  is required to compensate  such Funder
               and/or its holding company for such liability to Taxes, increased
               or additional cost, reduction, payment, forgone return or loss.

          For the purposes of this clause 16.2 and clause 16.4 "holding company"
          means, in relation to a Funder,  the company or entity (if any) within
          the consolidated supervision of which such Funder is included.

16.3      Exceptions

          Nothing in clause 16.2 shall  entitle any Funder to receive any amount
          in respect of compensation for any such liability to Taxes,  increased
          or additional cost, reduction,  payment, forgone return or loss to the
          extent that the same:

16.3.1    is taken into account in calculating the Additional Cost; or

16.3.2    is the subject of an additional payment under clause 10.5; or

16.3.3    arises as a consequence of (or of any law or regulation  implementing)
          (i) the proposals for international convergence of capital measurement
          and capital  standards  published  by the Basle  Committee  on Banking
          Regulations  and  Supervisory  Practices  in July 1988 and/or (ii) the
          Banking Consolidation Directive (2000/12/EC) of the European Union (in
          each  case)   unless  it  results  from  any  change  in,  or  in  the
          interpretation   or  application   of,  such  proposals  or  any  such
          applicable directive (or any law or regulation  implementing the same)
          occurring after the date hereof.

16.4      Mitigation

          If  circumstances  arise  which  would,  or would  upon the  giving of
          notice, result in:

16.4.1    the  Borrowers  being  required  to make an  increased  payment to any
          Funder pursuant to clause 10.5;

16.4.2    the  reduction of any  Funder's  Commitment  to zero or the  Borrowers
          being required to prepay any Funder's Contribution  pursuant to clause
          16.1; or

16.4.3    the  Borrowers  being  required  to make a  payment  to any  Funder to
          compensate  such  Funder or its holding  company  for a  liability  to
          Taxes,  increased or  additional  cost,  reduction,  payment,  forgone
          return or loss pursuant to clause 16.2,

          then,  without in any way limiting,  reducing or otherwise  qualifying
          the  obligations of the Borrowers  under clause 10 and this clause 16,
          such Funder shall, in consultation  with the Agent,  endeavour to take
          such  reasonable  steps (and/or,  in the case of clause 16.2 and where
          the increased or additional cost, reduction,  payment,  forgone return
          or loss is that of its holding company,  endeavour to procure that its
          holding company takes such reasonable steps) as are open to it (or, as
          the case may be, its  holding  company)  to  mitigate  or remove  such
          circumstances (including (in the case of such Funder) the transfer of
          its rights and  obligations  under this  Agreement  to another bank or
          financial  institution)  unless the taking of such steps might (in the
          opinion of such Funder) be prejudicial to such Funder (or, as the case
          may be, its holding company) or be in conflict with such Funder's (or,
          as the case may be, its holding

                                       75
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          company's) general banking policies or involve such Funder (or, as the
          case  may  be,  its  holding  company)  in  expense  or  an  increased
          administrative burden.

16.5      Regulation D Costs

          Each US  Borrower  shall,  within 10 Banking  Days (if it is the first
          occasion  on which the  relevant  Bank makes the  demand) or 5 Banking
          Days (in all other  cases) of demand by any Bank  (through the Agent),
          pay to that  Bank  the  amount  of any  Regulation  D  Costs  actually
          incurred by that Bank in respect of its participation in any loan made
          by it to that US Borrower.

17        Set-off and pro rata payments

17.1      Set-off

          Following a Default which is continuing  unremedied  and unwaived each
          Borrower  authorises  each  Bank  Finance  Party to apply  any  credit
          balance to which such Borrower is then entitled on any account of such
          Borrower  with such Bank  Finance  Party at any of its  branches in or
          towards  satisfaction  of any sum  then  due  and  payable  from  such
          Borrower to such Bank  Finance  Party under this  Agreement.  For this
          purpose  each Bank Finance  Party is  authorised to purchase  with the
          moneys standing to the credit of such account such other currencies as
          may be necessary to effect such application.  None of the Bank Finance
          Party  shall be  obliged  to  exercise  any right  given to it by this
          clause 17.1.  Each Bank  Finance  Party shall notify the Agent and the
          Parent (giving full details)  forthwith upon the exercise or purported
          exercise of any right of set-off and the Agent shall  inform the other
          Bank Finance Parties.  Failure by any Bank Finance Party to notify the
          Agent and the Parent shall not affect the validity of the set-off.

17.2      Pro rata payments

17.2.1    If at any time any Bank (the "Recovering  Bank")  receives or recovers
          any amount owing to it by any Borrower  under this Agreement by direct
          payment,  set-off or in any manner  other than by payment  through the
          Agent  pursuant to clause 10.1 or 10.11 (not being a payment  received
          from a Substitute or  sub-participant  in such Bank's  Contribution or
          any other payment of an amount due to the Recovering Bank for its sole
          account pursuant to clauses 8.5, 9, 10.5, 15, 16.1, 16.2 or 16.5), the
          Recovering  Bank  shall,  within two Banking  Days of such  receipt or
          recovery (a "Relevant  Receipt") notify the Agent of the amount of the
          Relevant Receipt. If the Relevant Receipt exceeds the amount which the
          Recovering  Bank would have received if the Relevant  Receipt had been
          received by the Agent and distributed pursuant to clause 10.1 or 10.11
          (as the case may be) then:

          (a)  within two Banking  Days of demand by the Agent,  the  Recovering
               Bank shall pay to the Agent an amount  equal (or  equivalent)  to
               the excess;

          (b)  the Agent shall treat the excess amount so paid by the Recovering
               Bank as if it were a  payment  made by the  Borrowers  and  shall
               distribute the same to the Banks (other than the Recovering Bank)
               in accordance  with clause 10.1 or clause 10.11,  as the case may
               be; and

          (c)  as  between  the  Borrowers  and the  Recovering  Bank the excess
               amount so redistributed  shall be treated as not having been paid
               but the obligations of the Borrowers to the other Banks shall, to
               the extent of the amount so re-distributed to them, be treated as
               discharged.

17.2.2    If any part of the Relevant  Receipt  subsequently has to be wholly or
          partly  refunded by the  Recovering  Bank  (whether to a liquidator or
          otherwise) each Bank to which any part of such Relevant Receipt was so
          re-distributed  shall on request from the Recovering Bank repay to the
          Recovering  Bank such Bank's pro rata share of the amount which has to
          be refunded by the Recovering Bank.

17.2.3    Each Bank shall on request supply to the Agent such information as the
          Agent may from time to time  request  for the  purpose of this  clause
          17.2.

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17.2.4    Notwithstanding  the  foregoing  provisions  of  this  clause  17.2 no
          Recovering  Bank shall be obliged to share any Relevant  Receipt which
          it receives or recovers  pursuant to legal  proceedings taken by it to
          recover any sums owing to it under this Agreement with any other party
          which  has a  legal  right  to,  but  does  not,  either  join in such
          proceedings or commence and diligently pursue separate  proceedings to
          enforce  its  rights  in  the  same  or  another   court  (unless  the
          proceedings  instituted by the  Recovering  Bank are  instituted by it
          without  prior  notice  having  been given to such party  through  the
          Agent).

17.3      No release

          For the  avoidance of doubt it is hereby  declared that failure by any
          Recovering Bank to comply with the provisions of clause 17.2 shall not
          release  any  other  Recovering  Bank from any of its  obligations  or
          liabilities under clause 17.2.

17.4      No charge

          The provisions of this clause 17 shall not, and shall not be construed
          so as to,  constitute a charge by a Bank over all or any part of a sum
          received or recovered by it in the  circumstances  mentioned in clause
          17.2.

18        Assignment,  substitution,  lending offices,  Additional Borrowers and
          Affiliates of Banks

18.1      Benefit and burden

          This  Agreement  shall be binding upon,  and enure for the benefit of,
          the Bank Finance Parties and their respective successors and permitted
          assigns.

18.2      No assignment by Borrower

          None of the  Borrowers  may assign or otherwise  transfer any of their
          rights or obligations  under this Agreement  without the prior written
          consent of all the Banks, the Swingline Bank and the Overdraft Bank.

18.3      Substitution

          Each Bank (an "Existing  Bank") may transfer,  by way of novation (but
          not by way of assignment or otherwise), all or any part of its rights,
          benefits  and/or  obligations  under this Agreement to another bank or
          financial  institution (a "Substitute") with the consent in writing of
          the  Swingline  Bank and the  Overdraft  Bank,  such consent not to be
          unreasonably  withheld  or  delayed  and after  consultation  with the
          Parent but  without  requiring  the consent of any  Obligor.  Any such
          novation  shall be effected  upon not less than 5 Banking  Days' prior
          notice  by  delivery  to the  Agent of a duly  completed  Substitution
          Certificate duly executed by the Existing Bank and the Substitute.  On
          the  Transfer  Date  (as  specified  and  defined  in  a  Substitution
          Certificate  so  executed  and  delivered),  to the  extent  that  the
          Commitment  and  Contribution  of the Existing Bank are expressed in a
          Substitution  Certificate  to be the subject of the novation in favour
          of the Substitute  effected pursuant to this clause 18.3, by virtue of
          the  counter-signature  of the  Substitution  Certificate by the Agent
          (for itself and the other  parties to this  Agreement and the Security
          Trust Deed):

          (a)  the existing parties to this Agreement,  the Security Trust Deed,
               the Common  Security Trust Deed and the  Intercreditor  Agreement
               and the  Existing  Bank shall be released  from their  respective
               obligations  towards  one  another  under  this  Agreement,   the
               Security  Trust  Deed,  the  Common  Security  Trust Deed and the
               Intercreditor  Agreement  ("discharged  obligations")  and  their
               respective  rights against one another under this Agreement,  the
               Security  Trust  Deed,  the  Common  Security  Trust Deed and the
               Intercreditor Agreement ("discharged rights") shall be cancelled;

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<PAGE>

          (b)  the Substitute party to the relevant Substitution Certificate and
               the existing parties to this Agreement,  the Security Trust Deed,
               the Common  Security Trust Deed and the  Intercreditor  Agreement
               (other than such Existing Bank) shall assume obligations  towards
               each other which  differ  from the  discharged  obligations  only
               insofar as they are owed to or assumed by such Substitute instead
               of to or by such Existing Bank; and

          (c)  the Substitute party to the relevant Substitution Certificate and
               the existing parties to this Agreement,  the Security Trust Deed,
               the Common  Security Trust Deed and the  Intercreditor  Agreement
               (other than such Existing Bank) shall acquire rights against each
               other which  differ from the  discharged  rights only  insofar as
               they are exercisable by or against such Substitute  instead of by
               or against such Existing Bank,

          and, on such Transfer Date,  the  Substitute  shall pay to the Agent a
          fee of  (pound)1,000  for its own  account.  The Agent shall  promptly
          notify  the other  Banks and the  Parent of the  receipt  by it of any
          Substitution  Certificate  and shall  promptly  deliver a copy of such
          Substitution Certificate to the Parent.

18.4      Limitation on certain obligations

18.4.1    If, at the time of any  novation  or change in  lending  office by any
          Funder  circumstances exist which would oblige the Borrowers to pay to
          the  Substitute  (or,  in the case of change in  lending  office,  the
          relevant  Funder) under clauses 10.1,  10.5 or 16 any sum in excess of
          the sum (if any) which  they  would  have been  obliged to pay to that
          Funder  under the relevant  clause in the absence of that  novation or
          change of lending  office,  the Borrowers  shall not be obliged to pay
          that excess.

18.4.2    [deleted].

18.5      Reliance on Substitution Certificate

          The Bank Finance  Parties,  the Borrowers and the Guarantors  shall be
          fully entitled to rely on any  Substitution  Certificate  delivered to
          the Agent in accordance  with the foregoing  provisions of this clause
          18 which is complete  and regular on its face as regards its  contents
          and purportedly signed on behalf of the relevant Existing Bank and the
          Substitute and none of the Bank Finance Parties, the Borrowers and the
          Guarantors shall have any liability or  responsibility to any party as
          a consequence of placing reliance on and acting in accordance with any
          such  Substitution  Certificate  if it  proves to be the case that the
          same was not authentic or duly authorised.

18.6      Authorisation of Agent

          Each  party to this  Agreement  irrevocably  authorises  the  Agent to
          counter-sign  each  Substitution  Certificate  on its  behalf  for the
          purposes   of  clause  18.3   without  any  further   consent  of,  or
          consultation with, such party.

18.7      Construction of certain references

          If any Funder  novates  all or any part of its  rights,  benefits  and
          obligations   as  provided  in  clause  18.3  or  19.14  all  relevant
          references  in this  Agreement  to such  Funder  shall  thereafter  be
          construed as a reference to such Funder  and/or its  Substitute to the
          extent of their respective interests.

18.8      Lending offices

          Each Funder shall lend through its office at the address  specified in
          Schedule  2 or,  as the  case  may be,  in any  relevant  Substitution
          Certificate  or through any other office of such Funder  selected from
          time to time by such Funder  through  which such Funder wishes to lend
          for the  purposes of this  Agreement.  If the office  through  which a
          Funder is lending is changed pursuant to this clause 18.8, such Funder
          shall notify the Agent and the Borrowers promptly of such change.

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18.9      Disclosure of Information

18.9.1    Subject to clause  18.9.2,  a Funder  may  disclose  to a  prospective
          transferee  or to any  other  person  who may  propose  entering  into
          contractual  relations  with such Funder in relation to this Agreement
          such  information  about the  Borrowers  and the Group as such  Funder
          shall consider appropriate.

18.9.2    No Funder may disclose any information about any Borrower or the Group
          to an actual or potential transferee or other person without the prior
          consent of the Parent (such consent not to be unreasonably withheld or
          delayed)  unless such Funder has obtained from the actual or potential
          transferee or other person a confidentiality undertaking substantially
          in the form  recommended  at such time by the Loan Market  Association
          (or in any other form agreed between the Parent and the Agent).

18.9.3    Any  information  furnished  pursuant  to this  Agreement  to any Bank
          Finance Party shall be kept confidential by the recipient and the Bank
          Finance  Parties  hereby agree to keep the  information  confidential,
          save that the provisions of this clause 18.9.3 and clause 18.9.2 shall
          not apply:

          (a)  to any information already known to the recipient;

          (b)  to any information  subsequently  received by the recipient which
               it would otherwise be free to disclose;

          (c)  to any information which is or becomes public knowledge otherwise
               than by reason of a breach of confidentiality by the Bank Finance
               Party concerned;

          (d)  to any extent that the recipient is required to disclose the same
               pursuant to any law regulation or order of any court; and

          (e)  to any  information  disclosed to auditors or other  professional
               advisers  who are  subject  to a duty of  confidentiality  or any
               other  person  who  undertakes   with  the  Parent  to  keep  the
               information confidential.

18.10     Restrictions on novations

18.10.1   Where a Funder  novates part of its rights,  benefits and  obligations
          pursuant to clause 18.3,  that Funder must novate  equal  fractions of
          its Commitment and  Contribution (if any) in respect of the Facilities
          and,  if at the time when such  novation  takes  effect  more than one
          Revolving   Credit  Advance  is  outstanding,   the  novation  of  its
          Contribution shall take effect in respect of the same fraction of each
          Revolving Credit Advance. The Substitution Certificate relating to any
          such novation shall be completed accordingly.

18.10.2   No novation  shall be effected if, as a  consequence  of that novation
          (or as a consequence of that and any other  novation  between the same
          or related parties taking effect at or about the same time), the total
          Commitments of a Bank would be less than approximately(pound)5,000,000
          (or  its  equivalent)  (unless  such  Bank  is  novating  all  of  its
          Commitments  and  Contributions)  Provided,  however,  that for  these
          purposes  persons that are  Affiliates  of each other shall be treated
          together as one Bank so that individual  Banks which are Affiliates of
          other    Banks   may   have   total    Commitments    of   less   than
          approximately(pound)5,000,000   (or  its   equivalent)  if  the  total
          Commitments  of all such  Banks  which are  Affiliates  of each  other
          together   are  at   least   approximately(pound)5,000,000   (or   its
          equivalent).

18.11     Additional Borrowers and Additional Overdraft Borrowers

18.11.1   If the Parent wishes one of its wholly-owned Subsidiaries to become an
          Additional Borrower or an Additional  Overdraft  Borrower,  then, with
          the prior written  approval of all of the Banks, it may deliver to the
          Agent the documents listed in part D of Schedule 40.

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<PAGE>

18.11.2   On delivery of a Borrower Accession Agreement or an Overdraft Borrower
          Accession  Agreement duly executed by the relevant  Subsidiary and the
          Parent, the Subsidiary concerned will become an Additional Borrower or
          an Additional Overdraft Borrower,  as the case may be. However, it may
          not utilise the Facilities (or, in the case of an Additional Overdraft
          Borrower,  the  Overdraft  Facility)  until the Agent  confirms to the
          Banks and the Parent that it has received all the  documents  referred
          to in clause 18.11.1 above in form and substance  satisfactory  to it,
          which it shall do promptly.

18.11.3   Delivery of a Borrower Accession  Agreement,  or an Overdraft Borrower
          Accession  Agreement,  executed  by the  Subsidiary  and  the  Parent,
          constitutes  confirmation  by that  Subsidiary and the Parent that the
          representations  and  warranties  set out in clause 11 (other than the
          excluded  representations  and  warranties)  to be made by them on the
          date of the Borrower  Accession  Agreement or the  Overdraft  Borrower
          Accession  Agreement  are  correct,  as if made with  reference to the
          facts and circumstances then existing.

18.11.4   The Bank Finance  Parties  irrevocably  authorise the Agent to execute
          any duly executed Borrower Accession  Agreement or Overdraft Accession
          Agreement on their behalf,  upon receipt of the prior written approval
          of the Banks under clause 18.11.1 above.

18.12     Additional Guarantors

          [deleted].

18.13     The Parent as Borrowers' agent

          Each  Borrower by its  execution  of this  Agreement  or an  Accession
          Certificate,  as the case may be, irrevocably  appoints and authorises
          the Parent:

18.13.1   as agent for such Borrower to receive alt notices,  requests,  demands
          or other  communications  under this  Agreement  which shall,  without
          prejudice to any other effective mode of serving the same, be properly
          served on the Borrower concerned if served on the Parent in accordance
          with clause 20.1; and

18.13.2   to give all notices (including  Orawdown Notices) and instructions and
          make such  agreements  (including,  without  limitation,  any Borrower
          Accession  Certificate) expressed to be capable of being given or made
          by such  Borrower or the Borrowers in this  Agreement  notwithstanding
          that they may affect such Borrower  without  further  reference to, or
          the consent of, such Borrower and such Borrower  shall, as regards the
          Bank Finance Parties,  be bound thereby as though such Borrower itself
          had given such notice or instwctions or made such agreement,

          and the Parent is released by the Borrower from s181 German Civil Code
          (Burgerliches Gesetzbuch).

18.14     Amendments binding

          Without  prejudice  to the other  provisions  of this  Agreement  each
          Borrower  hereby  confirms  that if the  Parent  and the Bank  Finance
          Parties or any of them enter into any  amendment or  supplement  to or
          restatement  of this  Agreement,  the  Parenfs  execution  of any such
          amendment or supplement or restatement,  Whether or not expressly made
          or purportedly  made on behalf of such Borrower,  shall (to the extent
          legally  possible)  bind such Borrower  without the need to obtain any
          confirmation or acknowledgement from such Borrower.  For this purpose,
          each  Borrower,   for  the  benefit  of  the  Bank  Finance   Parties,
          irrevocably designates,  appoints and empowers the Parent as its agent
          and attorney.

18.15     Affiliates of Banks

18.15.1   A Bank may provide for an  Affiliate  (or  branch) to  participate  in
          certain Advances, Utilisations or Swingline Letters of Credit:

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          (a)  joining the relevant  Affiliate (or branch) in as a Bank by means
               of a Substitution Certificate in accordance with clause 18.3 (for
               which  purpose  the Bank (as the "Existing  Bank") and the branch
               and/or  Affiliate (as the  "Substitute")  shalt adopt as a single
               Commitment,  such Bank's  Commitment  in respect of the  relevant
               Facility; and

          (b)  giving notice to the Agent and the Parent, detailing the Advances
               and/or  Utilisation  and/or Swingline  Letters of Credit in which
               that Affiliate (or branch) will  participate.  In this event such
               Bank and its Affiliate (or branch):

               (i)  will be treated as having a single Commitment,  but, for all
                    other  purposes  other than that mentioned in paragraph (ii)
                    below, will be treated as separate Banks; and

               (ii) participate  in  Advances,   Utilisations  and/or  Swingline
                    Letters  of Credit in the manner  notified  to the Agent and
                    the Parent in accordance with clause 18.15.1(i) above.

18.15.2   For the purposes of:

          (a)  compliance with clause 18.3; and

          (b)  voting in  connection  with  this  Agreement  or any  other  Bank
               Finance Document, each Bank and its Affiliate (or branch) will be
               regarded as a single Bank.

19        Arranger,   Agent,  Security  Trustee,  Common  Security  Trustee  and
          Reference Banks

19.1      Appointment of Agent

          Each Bank irrevocably appoints the Agent as its agent for the purposes
          of this Agreement and the other Bank Finance  Documents to which it is
          a party and  irrevocably  authorises  the Agent  (whether or not by or
          through employees or agents) to take such action on such Bank's behalf
          and to exercise such rights,  remedies,  powers and discretions as are
          specifically delegated to the Agent by this Agreement and/or the other
          Bank  Finance  Documents  to which it is a party  together  with  such
          powers and  discretions  as are  reasonably  incidental  thereto  (but
          subject to any restrictions or limitations specified in this Agreement
          and the other Bank Finance Documents to which it is a party).  None of
          the Agent, the Swingline Bank, the Overdraft Bank, the Arrangers,  the
          Common Security Trustee or the Security Trustee shall,  however,  have
          any  duties,   obligations  or  liabilities   (whether   fiduciary  or
          otherwise)  to  the  Banks  beyond  those  expressly  stated  in  this
          Agreement  or the other  Bank  Finance  Documents  to which they are a
          party.

19.2      Agent's actions

          Any action  taken by the Agent under or in relation to this  Agreement
          and/or the other Bank  Finance  Documents  to which it is a party with
          requisite  authority,  or on the  basis of  appropriate  instructions,
          received from the Majority Banks or all the Banks,  as the case may be
          (or as otherwise duly authorised), shall be binding on all the Banks.

19.3      Agent's duties

          The Agent shall:

19.3.1    promptly notify each Bank of the contents of each notice,  certificate
          or other  document  received by the Agent from the  Borrower  under or
          pursuant to clauses 12.1.1(a) and 12.1.7;

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<PAGE>

19.3.2    (subject to the other  provisions  of this clause 19) take such action
          or, as the case may be,  refrain  from taking such action with respect
          to the exercise of any of its rights, remedies, powers and discretions
          as Agent, as the Majority Banks may reasonably direct; and

19.3.3    serve as the Borrowers' agent solely for the purpose of this clause to
          maintain a register (the "Register of Commitments") on which the Agent
          will  record the  Commitments  from time to time of each of the Banks,
          the  Advances  made  from  time to time by each of the  Banks and each
          repayment in respect of the  principal  amount of such Advance of each
          such Bank. The Agent will open the Register of Commitments on the date
          of this  Agreement  and will enter into and record on the  Register of
          Commitments  on such date the  Commitments  of all of the Banks as set
          forth in Schedule 2.  Thereafter  the Agent will enter into and record
          on the Register of Commitments  any and all changes to the Commitments
          of any one or more  Banks  made  pursuant  to the  provisions  of this
          Agreement,  the  addition  of new Banks and the  removal of Banks as a
          result of  substitutions  pursuant to clause 18.3. With respect to any
          Bank,  the transfer of the  Commitments of such Bank and the rights to
          the  principal  of,  interest on and fees with  respect to any Advance
          made  pursuant to such  Commitment  shall not be effective  until such
          transfer is recorded on the Register of Commitments  maintained by the
          Agent with respect to ownership of such  Commitments  and Advances and
          prior to such  recordation  all amounts owing to the  transferor  with
          respect to such  Commitments  and  Advances  shall remain owing to the
          transferor.  The  registration  of  substitution or transfer of all or
          part of any Commitments and Advances shall be recorded by the Agent on
          the Register of Commitments only upon the acceptance by the Agent of a
          property executed and delivered Substitution Certificate.

19.4      Agent's rights

          The Agent may:

          (a)  in the  exercise of any right,  remedy,  power or  discretion  in
               relation to any matter, or in any context, not expressly provided
               for by this Agreement and/or the Intercreditor Agreement, act or,
               as the case may be,  refrain from acting in  accordance  with the
               instructions of the Majority Banks,  and shall be fully protected
               in so doing;

          (b)  unless  and  until it shall  have  received  directions  from the
               Majority  Banks  or  all  the  Banks  as  applicable  under  this
               Agreement and/or the Intercreditor  Agreement,  take such action,
               or refrain  from  taking  such  action in respect of a Default of
               which the Agent has actual  knowledge as it shall deem  advisable
               in the best  interests  of the Banks (but shall not be obliged to
               do so);

          (c)  refrain from acting in accordance  with any  instructions  of the
               Majority Banks to institute any legal proceedings  arising out of
               or in connection  with this  Agreement  and/or the  Intercreditor
               Agreement  until it has been  indemnified  and/or  secured to its
               satisfaction  against any and all costs,  expenses or liabilities
               (including  legal fees) which it would or might incur as a result
               unless  such  costs,  expenses  or  liabilities  result  from the
               Agent's gross negligence or wilful misconduct;

          (d)  deem  and  treat  (i) each  Bank as the  person  entitled  to the
               benefit of the Contribution of such Bank for all purposes of this
               Agreement  and the  Intercreditor  Agreement  unless  and until a
               Substitution  Certificate  shall  have been filed with the Agent,
               and  (ii)  the  office  set  opposite  the  name of each  Bank in
               Schedule 2 or, as the case may be, in any  relevant  Substitution
               Certificate  as such  Bank's  lending  office  unless and until a
               written  notice of  change  of  lending  office  shall  have been
               received by the Agent; and the Agent may act upon any such notice
               unless and until the same is superseded by a further such notice;

          (e)  rely as to matters of fact which might  reasonably be expected to
               be within the knowledge of a Borrower  upon a certificate  signed
               by any director of that Borrower on behalf of that Borrower; and

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          (f)  do anything  which is in its opinion  necessary  or  desirable to
               comply with any law or regulation in any jurisdiction.

19.5      No liability of Arrangers,  Security Trustee, Common Security Trustee,
          Agent, Swingline Bank and Overdraft Bank

19.5.1    None of the  Arrangers,  the  Security  Trustee,  the Common  Security
          Trustee,  the Agent,  the Swingline Bank, the Overdraft Bank or any of
          their respective employees and agents shall:

          (a)  be obliged to request any  certificate or opinion under clause 12
               or any  provision of any other Bank  Finance  Document or to make
               any  enquiry  as to the  use of the  proceeds  of the  Facilities
               unless (in the case of the Agent) so  required  in writing by any
               Bank, in which case the Agent shall promptly make the appropriate
               request of the relevant Obligor; or

          (b)  be obliged to make any enquiry as to any breach or default by any
               Obligor in the performance or observance of any of the provisions
               of any Bank Finance  Document or as to the existence of a Default
               unless (in the case of the Agent) the Agent has actual  knowledge
               thereof or has been  notified  in writing  thereof by a Bank,  in
               which  case the  Agent  shall  promptly  notify  the Banks of the
               relevant event or circumstance; or

          (c)  be  obliged  to  enquire  Whether  or not any  representation  or
               warranty  made  by  any  Obligor  pursuant  to any  Bank  Finance
               Document is true; or

          (d)  be  obliged  to  do  anything  (including,   without  limitation,
               disclosing any document or information)  which would, or might in
               its opinion,  be contrary to any law or regulation or be a breach
               of any duty of  confidentiality  or  otherwise be  actionable  or
               render it liable to any person.  For the  purposes of this clause
               19.5.1(d)  the  parties  to this  Agreement  acknowledge  that no
               document delivered to the Agent pursuant to the terms of the Bank
               Finance  Documents  by any  Obligor  is  subject  to any  duty of
               confidentiality  which  would  restrict  the  Agent's  ability to
               deliver copies of the same to the Banks provided that this clause
               19.5.1(d) shall not otherwise affect the duty of the Agent or the
               Banks to keep any confidential information supplied to it or them
               by any member of the Group confidential; or

          (e)  be obliged to  account to any Bank  Finance  Party for any sum or
               the profit element of any sum received by it for its own account;
               or

          (f)  be obliged to institute any legal  proceedings  arising out of or
               in connection with this Agreement or the Intercreditor  Agreement
               other than on the  instructions  of the Majority Banks and (Where
               applicable) in accordance with the Intercreditor Agreement; or

          (g)  be liable to any Bank  Finance  Parties  for any action  taken or
               omitted  under  or  in  connection  with  this   Agreement,   the
               Facilities or the  Intercreditor  Agreement  unless caused by its
               gross negligence or wilful misconduct.

19.5.2    For the purposes of this clause 19.5 none of the Agent,  the Swingline
          Bank, the Overdraft Bank, the Arrangers,  the Common Security  Trustee
          or the Security Trustee shall be treated as having actual knowledge of
          any  matter  of which the  corporate  finance  or any  other  division
          outside the agency or loan administration department of the person for
          the time being acting as the Agent, the Arrangers, the Common Security
          Trustee or the  Security  Trustee  may become  aware in the context of
          corporate  finance,  advisory or lending  activities from time to time
          undertaken by the Agent,  the Swingline  Bank, the Overdraft Bank, the
          Arrangers, the Common Security Trustee or the Security Trustee for any
          member  of the  Group  or  any  other  person  which  may  be a  trade
          competitor of any member of the Group or may otherwise have commercial
          interests similar to those of any member of the Group.

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<PAGE>

19.6      Non-reliance on Arrangers,  Security Trustee, Common Security Trustee,
          Agent, Swingline Bank or Overdraft Bank

          Each  Bank  acknowledges  that it has  not  relied  on any  statement,
          opinion,  forecast or other representation made by the Arrangers,  the
          Security  Trustee,  the  Common  Security  Trustee,  the  Agent or the
          Swingline  Bank or  Overdraft  Bank to  induce  it to enter  into this
          Agreement or any other Bank Finance  Document and that it has made and
          will continue to make,  without  reliance on the Agent,  the Swingline
          Bank,  Overdraft  Bank,  the  Security  Trustee,  the Common  Security
          Trustee or any  Arranger  and based on such  documents as it considers
          appropriate,  its own appraisal of the creditworthiness of the members
          of the Group and its own  independent  investigation  of the financial
          condition,  prospects  and  affairs  of the  members  of the  Group in
          connection with the making and  continuation  of the Facilities  under
          this  Agreement  and the other  Bank  Finance  Documents.  None of the
          Security  Trustee,  the Common Security  Trustee,  the Arrangers,  the
          Agent,  the  Swingline  Bank,  the  Overdraft  Bank shall  (except for
          documents  and/or  notices  which the  Security  Trustee,  the  Common
          Security  Trustee,  the Arrangers  and/or the Agent (i) have agreed to
          provide to the Banks or (ii) have received with sufficient  copies for
          distribution  to the Banks)  have any duty or  responsibility,  either
          initially  or on a  continuing  basis,  to  provide  any Bank with any
          credit or other  information  with  respect  to any  Borrower  whether
          coming into its possession  before the making of any Advance or at any
          time or times  thereafter,  other  than (in the case of the  Agent) as
          provided in clause 19.3.1.

19.7      No  Responsibility  on  Arrangers,  the Security  Trustee,  the Common
          Security Trustee,  the Agent, the Swingline Bank or the Overdraft Bank
          for any Borrower's performance

          None of the  Arrangers,  the  Security  Trustee,  the Common  Security
          Trustee,  the Agent,  the Swingline  Bank or the Overdraft  Bank shall
          have any responsibility or liability to any Bank:

19.7.1    on  account of the  failure of any member of the Group to perform  its
          obligations under the Bank Finance Documents; or

19.7.2    for the financial condition of any member of the Group; or

19.7.3    for the completeness or accuracy of any statements, representations or
          warranties in the Bank Finance Documents or the Information Package or
          any  Information  Memorandum or any document  delivered under any such
          documents; or

19.7.4    for the execution,  effectiveness,  adequacy,  genuineness,  validity,
          enforceability or admissibility in evidence the Bank Finance Documents
          or any  certificate,  report or other  document  executed or delivered
          under any of the Bank Finance Documents; or

19.7.5    otherwise in connection  with the Facilities or its negotiation or for
          acting (or, as the case may be,  refraining from acting) in accordance
          with  the  instructions  of the  Majority  Banks  or all the  Banks as
          applicable under this Agreement.

19.7.6    to ascertain  whether all deeds and  documents  which should have been
          deposited  with it under or pursuant to any of the Security  Documents
          have been so deposited; or

19.7.7    to  investigate  or make any enquiry into the title of the Obligors to
          any of the assets listed in the  Schedules to the Security  Documents;
          or

19.7.8    for the failure to register any of the Security Documents; or

19.7.9    for  the  failure  to  register  any  of  the  Security  Documents  in
          accordance  with  the  provisions  of the  documents  of  title of the
          Obligors to any of the assets  listed in the Schedules to the Security
          Documents; or

19.7.10   for the failure to effect or procure the  registration of any floating
          charge created by any of the Security  Documents by registering  under
          the Land  Registration  Act 1925 any  notice,  caution or other  entry
          prescribed  by or pursuant to the  provisions  of the said Act against
          any land for the time being forming part of the security; or

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<PAGE>

19.7.11   for the  failure to take or require  any  Obligor to take any steps to
          render  any of the  Security  Documents  effective  or to  secure  the
          creation of any  ancillary  charge under the laws of the  jurisdiction
          concerned; or

19.7.12   (save as otherwise  provided in this clause 19) for taking or omitting
          to  take  any  other  action  under  or in  relation  to the  Security
          Documents or any aspect thereof; or

19.7.13   in the case of the Arranger  and the Agent,  on account of the failure
          of the Security  Trustee or the Common Security  Trustee to perform or
          discharge  any of their  relevant  duties  or  obligations  under  the
          Security Documents; or

19.7.14   (save as otherwise provided in this clause 19) otherwise in connection
          with the  Facilities  or their  negotiation  or for acting (or, as the
          case  may  be,   refraining   from  acting)  in  accordance  with  the
          instructions of the Majority Banks.

19.8      Reliance on documents and professional advice

          The Arrangers,  the Security Trustee, the Common Security Trustee, the
          Agent,  the Swingline Bank and the Overdraft Bank shall be entitled to
          rely on any communication, instrument or document believed by it to be
          genuine  and  correct  and to have been  signed or sent by the  proper
          person and shall be entitled to rely as to legal or other professional
          matters on opinions and statements of any legal or other  professional
          advisers  selected or approved by it (including  those in the Agent's,
          the Swingline  Bank's,  Overdraft Banks, the Security  Trustee's,  the
          Common Security Trustee's or either Arranger's employment).

19.9      Other dealings

          Each of the  Arrangers,  the  Security  Trustee,  the Common  Security
          Trustee,  the Agent,  the Swingline  Bank and the Overdraft  Bank may,
          without any liability to account to the Banks,  accept  deposits from,
          lend  money to, and  generally  engage in any kind of banking or other
          business with,  and provide  advisory or other services to, any member
          of the  Group or any of their  respective  Subsidiaries  or any of the
          Banks as if it were not an Arranger,  the Security Trustee, the Common
          Security Trustee,  the Agent, the Swingline Bank or the Overdraft Bank
          as the case may be.

19.10     Rights of Agent,  Swingline Bank,  Overdraft Bank,  Security  Trustee,
          Common Security Trustee and Arrangers as Bank; no partnership

          With  respect  to its own  Commitment  and  Contribution  (if any) the
          Agent, the Swingline Bank,  Overdraft Bank, the Security Trustee,  the
          Common  Security  Trustee and each Arranger shall have the same rights
          and powers under this Agreement as any other Bank and may exercise the
          same as  though  it were  not  performing  the  duties  and  functions
          delegated to it under this Agreement and/or the Security Documents and
          the  term  "Banks"  shall,   unless  the  context  clearly   otherwise
          indicates,  include  the  Agent in such  parties  in their  individual
          capacity as Banks. This Agreement shall not and shall not be construed
          so as to constitute a partnership between the parties or any of them.

19.11     Amendments; waivers

19.11.1   Subject  to clause  19.11.2,  the Agent may.  with the  consent of the
          Majority  Banks (or if and to the extent  expressly  authorised by the
          other provisions of this Agreement or the Security  Documents) and, if
          so instructed by the Majority  Banks,  shall (i) agree with the Parent
          (on behalf of all the  Obligors)  amendments or  modifications  to the
          Credit  Documents and/or vary or waive breaches of, or defaults under,
          or  otherwise  excuse  performance  of,  any  provision  of the Credit
          Documents by any Obligor and/or (ii) authorise the Security Trustee or
          the Common Security Trustee (on behalf of the Bank Finance Parties) to
          agree with the Parent (on behalf of all the Guarantors and other Group
          Members  who  are  a  party  to a  Security  Document)  amendments  or
          modifications to the Security  Documents and/or vary or waive breaches
          of, or  defaults  under,  or  otherwise  excuse  performance  of,  any
          provision of any of the Security  Documents by any  Guarantor or other
          Group Member who is a party to a

                                       85
<PAGE>

          Security  Document.  Any such action so authorised and effected by the
          Agent shall be  documented in such manner as the Agent shall (with the
          approval of the Majority Banks) determine,  shall be promptly notified
          to the Banks by the Agent and (without  prejudice to the generality of
          clause 19.2) shall be binding on all the Banks.

19.11.2   Except  with the prior  written  consent of all the  Banks,  the Agent
          shall not have  authority  on  behalf  of the Banks to agree  with the
          Obligors (or  authorise  the Security  Trustee or the Common  Security
          Trustee to so agree) any amendment or  modification  to this Agreement
          or any Security Document or to grant waivers in respect of breaches or
          defaults or to vary or excuse  performance  of or under this Agreement
          or any  Security  Document  by any  Obligor,  if the  effect  of  such
          amendment,  modification,  waiver, variation or excuse would be to (i)
          reduce the Margin,  (ii)  postpone  the due date or, save as expressly
          provided  for in this  Agreement,  reduce the amount of any payment of
          principal,  interest, commitment commission or other amount payable by
          any  Obligors  under  this  Agreement  or  any  Security  Document  or
          reduction of the Total Commitments, (iii) change the currency in which
          any amount is  payable by any  Obligor  under  this  Agreement  or any
          Security Document, (iv) increase any Bank's Commitment, (v) extend the
          Availability Period, (vi) change the definition of "Majority Banks" in
          clause  1.2,  (vii)  change any  provision  of this  Agreement  or any
          Security  Document  referred to in any other  provision in relation to
          which an amendment would require the consent of all the Banks or which
          expressly  or by  implication  requires the approval or consent of all
          the Banks such that the  relevant  approval  or  consent  may be given
          otherwise  than with the sanction of all the Banks,  (viii) change the
          order of distribution  under clause 10.11,  (ix) change clause 17.2 or
          this clause 19.11 or (x) release any  Guarantor  from its  obligations
          under the Guarantee to which it is a party.

19.12     Reimbursement and Indemnity by Banks

          Each Bank shall  reimburse the Security  Trustee,  the Common Security
          Trustee,  the  Agent and the  Swingline  Bank and the  Overdraft  Bank
          (rateably in accordance with such Bank's  Commitment or Contribution),
          to the extent that the Security Trustee,  the Common Security Trustee,
          the Agent,  the Swingline  Bank or the Overdraft Bank (as the case may
          be) is not  reimbursed by the  Borrowers,  for the costs,  charges and
          expenses  incurred  by  the  Security  Trustee,  the  Common  Security
          Trustee,  the  Agent,  the  Swingline  Bank or the  Overdraft  Bank in
          connection with or in  contemplation  of, the enforcement or attempted
          enforcement of, or the  preservation or attempted  preservation of any
          rights under,  or in carrying out its duties  under,  the Bank Finance
          Documents  including  (in each case) the fees and expenses of legal or
          other  professional  advisers  except to the  extent  that the  costs,
          charges  or  expenses  arise  from  the  gross  negligence  or  wilful
          misconduct of the Agent,  the Security  Trustee,  the Common  Security
          Trustee,  the Swingline Bank or the Overdraft Bank. Each Bank shall on
          demand indemnify the Agent, the Security Trustee,  the Common Security
          Trustee,  the  Swingline  Bank and the  Overdraft  Bank  (rateably  in
          accordance   with  its   Commitment  or   Contribution)   against  all
          liabilities,  damages,  costs and claims  whatsoever  incurred  by the
          Agent,  the  Security  Trustee,   the  Common  Security  Trustee,  the
          Swingline  Bank  or  the  Overdraft  Bank  (as  the  case  may  be) in
          connection  with the Bank Finance  Documents or the performance of its
          duties under any Bank Finance Documents or any action taken or omitted
          by the Agent, the Security Trustee, the Common Security Trustee or the
          Swingline  Bank or the  Overdraft  Bank (as the case may be) under any
          Bank Finance  Documents,  unless such liabilities,  damages,  costs or
          claims arise from the  Agent's,  the  Security  Trustee's,  the Common
          Security  Trustee's,  the Swingline Bank's or the Overdraft Bank's (as
          the case may be) own gross negligence or wilful misconduct.

19.13     Retirement of Agent

19.13.1   The  Agent  may  retire  from  its  appointment  as Agent  under  this
          Agreement and the relevant Bank Finance  Documents having given to the
          Parent  and each of the  Banks  not less  than 30 days'  notice of its
          intention to do so, provided that no such retirement shall take effect
          unless there has been appointed by the Banks after  consultation  with
          the Parent as a successor agent:

          (a)  a Bank  nominated  by  the  Majority  Banks  or,  failing  such a
               nomination,

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<PAGE>

          (b)  any reputable and experienced bank or financial  institution with
               offices in London nominated by the Agent.

          Any corporation into which the Agent may be merged or converted or any
          corporation   with  which  the  Agent  may  be   consolidated  or  any
          corporation  resulting  from  any  merger,  conversion,  amalgamation,
          consolidation  or other  reorganisation  to which the Agent shall be a
          party  shall,  to the  extent  permitted  by  applicable  law,  be the
          successor  Agent under this  Agreement  and the relevant  Bank Finance
          Documents  without  the  execution  or filing of any  document  or any
          further act on the part of any of the parties to this Agreement or, as
          the case may be, the relevant Bank Finance Documents, save that notice
          of any such merger, conversion,  amalgamation,  consolidation or other
          reorganisation shall forthwith be given to the Parent and the Banks.

19.13.2   Upon any such  successor as aforesaid  being  appointed,  the retiring
          Agent  shall be  discharged  from any  further  obligation  under this
          Agreement and the relevant Bank Finance  Documents (but shall continue
          to have the  benefit of this clause 19 in respect of any action it has
          taken  or  refrained  from  taking  prior to such  discharge)  and its
          successor and each of the other  parties to this  Agreement or, as the
          case may be, the relevant Bank Finance  Documents  shall have the same
          rights and obligations among themselves as they would have had if such
          successor  had been a party to this  Agreement or, as the case may be,
          the relevant  Bank Finance  Documents in place of the retiring  Agent.
          The  retiring  Agent shall (at the expense of the Parent)  provide its
          successor  with  copies  of  such  of its  records  as  its  successor
          reasonably requires to carry out its functions as such.

19.14     Retirement of Overdraft Bank and Swingline Bank

          With the prior consent of the Parent, not to be unreasonably  withheld
          or delayed,  the Overdraft  Bank or the Swingline Bank may resign from
          its  appointment as Overdraft Bank or Swingline  Bank, as the case may
          be, under this Agreement,  provided that no such retirement shall take
          effect  unless a successor  Overdraft  Bank or Swingline  Bank, as the
          case may be, has been  appointed  by the Parent and has  entered  into
          such  arrangements  as may be  required  to  become  a  party  to this
          Agreement as Overdraft Bank or Swingline Bank (as the case may be) and
          to assume the rights and obligations of the original Overdraft Bank or
          Swingline Bank (as the case may be).

19.15     Change of Reference Banks

          If (a) the whole of the Contribution (if any) of any Reference Bank is
          prepaid and the whole of its Commitment cancelled,  (b) the Commitment
          (if any) of any Reference  Bank is reduced to zero in accordance  with
          clause 8.5 or 16.1,  (c) a  Reference  Bank  novates  the whole of its
          rights and  obligations (if any) as a Bank under this Agreement or (d)
          any Reference  Bank ceases to provide  quotations to the Agent for the
          purposes of determining  LIBOR or EURIBOR  (where such  quotations are
          required  having  regard to the  definition of "LIBOR" or  EURIBOR" in
          clause 1.2) the Agent may, acting on the  instructions of the Majority
          Banks,  terminate the  appointment of such Reference Bank and with the
          agreement of the Parent (not to be  unreasonably  withheld or delayed)
          appoint  another Bank to replace such  Reference  Bank.

20        Notices and other matters

20.1      Notices

          Every  notice,  request,  demand  or other  communication  under  this
          Agreement shall:

20.1.1    be in writing  delivered  personally or by first-class  prepaid letter
          (airmail  if  available)  or  telefax;

20.1.2    be deemed to have been received, subject as otherwise provided in this
          Agreement,  in the case of a letter when delivered and, in the case of
          a  telefax,  when a  complete  and  legible  copy is  received  by the
          addressee  (unless the date of  despatch is not a business  day in the
          country of the  addressee  or the time of  despatch  of any telefax is
          after the close of business

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<PAGE>

          in the  country of the  addressee  in which case it shall be deemed to
          have  been  received  at the  opening  of  business  on the next  such
          business day);

20.1.3    if  sent  by  telefax  to  the  Agent,  be  confirmed  in  writing  by
          first-class  prepaid letter  (airmail if available)  provided that non
          receipt of such letter by the Agent shall not  invalidate  the notice;
          and

20.1.4    be sent:

          (a)  to each Borrower do the Parent at:

               121-141 Westbourne Terrace
               London W2 6JR
               Telefax:    020 7262 4300
               Attention:  The Treasurer

          (b)  to the Agent at:

               HSBC Investment Bank plc
               City Place House
               55 Basinghall Street
               London EC2V 5DU
               Telefax:    0207 779 1717/1718
               Attention:  Syndicated Finance Agency

          (c)  to the Swingline Bank at:

               The Bank of New York, as Swingline Bank
               c/o BNY Capital Markets, Inc.
               One Wall Street -18 North
               New York
               NY 10286
               USA
               Telefax:    001 212 635 6365
               Attention:  Agency Department

          (d)  to the Overdraft Bank at:

               HSBC Bank plc
               27-32 Poultry
               London EC2P 2BX
               Telefax:    020 7260 4800
               Attention:  Gary Lee

          (e)  to each Bank

               at its address or telefax number
               specified in Schedule 2 or
               in any relevant Substitution Certificate

               or to such other address or telefax  number as is notified by the
               relevant party to the other parties to this Agreement.

20.2      Notices through the Agent

          Every  notice,  request,  demand  or other  communication  under  this
          Agreement  to be given by any  Borrower  to any other  party  shall be
          given to the Agent for onward  transmission  as appropriate  and to be
          given to any  Borrower  shall  (except as  otherwise  provided in this
          Agreement) be given by the Agent.

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<PAGE>

20.3      No implied waivers, remedies cumulative

          No failure or delay on the part of the Bank Finance  Parties or any of
          them to exercise  any power,  right or remedy  under the Bank  Finance
          Documents shall operate as a waiver  thereof,  nor shall any single or
          partial  exercise  by the Bank  Finance  Parties or any of them of any
          power,  right or remedy preclude any other or further exercise thereof
          or the  exercise of any other  power,  right or remedy.  The  remedies
          provided in the Bank  Finance  Documents  are  cumulative  and are not
          exclusive of any remedies provided by law.

20.4      Counterparts

          This  Agreement may be executed in any number of  counterparts  and by
          the different parties on separate counterparts,  each of which when so
          executed  and  delivered  shall be an original,  but all  counterparts
          shall together constitute one and the same instrument.

20.5      Third Party Rights

          No term of this Agreement is enforceable  under the Contracts  (Rights
          of Third  Parties)  Act  1999 by a  person  who is not a party to this
          Agreement.

21        Governing law and jurisdiction

21.1      Law

          This Agreement shall be governed by English law.

21.2      Submission to jurisdiction

          The  parties to this  Agreement  agree for the  benefit of the Finance
          Parties that:

21.2.1    if any party  has any claim  against  any other  arising  out of or in
          connection  with this  Agreement  such claim shall  (subject to clause
          21.2.3) be referred  to the High Court of Justice in  England,  to the
          jurisdiction of which each of the parties irrevocably submits;

21.2.2    the jurisdiction of the High Court of Justice in England over any such
          claim   against  any  Bank   Finance   Party  shall  be  an  exclusive
          jurisdiction and no courts outside England shall have  jurisdiction to
          hear or determine any such claim; and

21.2.3    nothing in this clause 21.2 shall limit the right of any Bank  Finance
          Party to refer any such claim  against  any Obligor to any other court
          of competent  jurisdiction  outside  England,  to the  jurisdiction of
          which each Obligor hereby  irrevocably agrees to submit, nor shall the
          taking of  proceedings  by any Bank Finance Party before the courts in
          one or more  jurisdictions  preclude the taking of  proceedings in any
          other jurisdiction whether concurrently or not.

21.3      Agent for service of process

          Each  Obligor  which  is  not   incorporated   in  England  and  Wales
          irrevocably and unconditionally designates,  appoints and empowers the
          Parent to receive for it and on its behalf  service of process  issued
          out of the High Court of Justice in England in  relation  to any claim
          arising out of or in connection with this Agreement.

21.4      Waiver of jury trial

          Each Obligor  hereby  waives any and all right to trial by jury in any
          legal  proceedings  anywhere  arising  out  of  or  relating  to  this
          Agreement or the transactions contemplated hereby.

IN WITNESS  whereof the parties to this  Agreement have caused this Agreement to
be duly executed on the date first above written.

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<PAGE>

                                   Schedule 1

                           Part A - Original Borrowers

   Name of Borrower            Registered Number    Registered office/address
                                   (if any)

1  Cordiant Communications          1320869          121-141 Westbourne Terrace
   Group plc                                         London W2 6JR

2  Bates UK Limited                 913184           121-141 Westbourne Terrace
                                                     London W2 6JR

3  Cordiant US Holdings Inc.        13-3965951       Corporation Trust Centre
                                                     1209 Orange Street
                                                     Wilmington
                                                     Newcastle
                                                     Delaware USA

4  Bates Deutschland                HRB 8608         Hanauer Landstrasse
   Holding GmbH                                      287-289
                                                     60314 Frankfurt am Main
                                                     Germany

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<PAGE>

                          Part B - Original Guarantors

    Name of Guarantor          Registered Number    Registered office/address
                                    (if any)

1   Cordiant Communications         1320869          121-141 Westbourne Terrace
    Group plc                                        London W2 6JR

2   Bates Europe Limited            689584           121-141 Westbourne Terrace
                                                     London W2 6JR

3   Bates UK Limited                913184           121-141 Westbourne Terrace
                                                     London W2 6JR

4   Atlas Advertising Limited       964286           121-141 Westbourne Terrace
                                                     London W2 6JR

5   The Decision Shop Llmited       615225           121-141 Westbourne Terrace
                                                     London W2 6JR

6   ICM International Limited       1802173          121-141 Westbourne Terrace
                                                     London W2 6JR

7   Cordiant US Holdings Inc.       13-3965951       Corporation Trust Center
                                                     1209 Orange Street
                                                     Wilmington
                                                     Delaware

8   Bates Advertising USA Inc.      132993871        Gould & Wilkie LLP
                                                     One Chase Manhattan Plaza,
                                                     58th Floor
                                                     New York
                                                     NY 10005

9   Bates Churchill Public          76-0234801       CT Corporation System
    Relations, Inc                                   811 Dallas Avenue
                                                     Houston
                                                     Texas 77002

10  Bates Churchill Advertising     76-0542479       CT Corporation System
    Inc                                              811 Dallas Avenue
                                                     Houston
                                                     Texas 77002

11  Bates Worldwide                 51 0306788       Corporation Trust Center
    (Delaware), Inc                                  1209 Orange Street
                                                     Wilmington
                                                     Delaware

12  CCG.XM Inc                      13-4107916       Corporation Trust Center
                                                     1209 Orange Street
                                                     Wilmington
                                                     Delaware

13  Healthworld Corporation         13-3922288       Corporation Trust Center
                                                     1209 Orange Street
                                                     Wilmington
                                                     Delaware

                                       91
<PAGE>

    Name of Guarantor           Registered Number    Registered office/address
                                     (if any)

14  Bates Healthworld, Inc          13-3343927       c/o Michael J. Kopcsak
                                                     CCG Worldwide, Inc.
                                                     498 7th Avenue
                                                     New York
                                                     NY 10018

15  Falk Healthworld Inc.           51-0316417       Corporation Trust Center
                                                     1209 Orange Street
                                                     Wilmington
                                                     Delaware

16  Lighthouse Global Network       36-4247757       Corporation Trust Center
    Inc                                              1209 Orange Street
                                                     Wilmington
                                                     Delaware

17  Fitch Inc.                      31-4445498       CT Corporation System
                                                     17 S. High Street
                                                     Columbus
                                                     OH 43215

18  Morgen-Walke Associates,        133128710        c/o Michael J. Kopcsak
    Inc.                                             CCG Worldwide, Inc.
                                                     498 7th Avenue
                                                     New York
                                                     NY 10018

19  Bates Deutschland Holding       HRB 8608         Hanauer Landstrasse
    GmbH                                             287-289
                                                     60314 Frankfurt am Main
                                                     Germany

20  Cordiant Communications         ACN: 003         Level 15,
    Group Australia Pty.            203 450          35 Clarence Street
    Limited                                          Sydney
                                                     NSW 2000
                                                     Australia

                                       92
<PAGE>

                      Part C - Original Overdraft Borrowers

    Name of Overdraft           Registered Number    Registered office/address
         Borrower                   (if any)

1   Atlas Advertising Limited       964286           121-141 Westbourne Terrace
                                                     London W2 6JR

2   Bates Overseas Holdings         2217108           121-141 Westbourne Terrace
    Limited                                           London W2 6JR

3   Bates Europe Limited            689584           121-141 Westbourne Terrace
                                                     London W2 6JR

4   Bates UK Limited                913184           121-141 Westbourne Terrace
                                                     London W2 6JR

5   Cordiant Communications         1320869          121-141 Westbourne Terrace
    Group plc                                        London W2 6JR

6   Cordiant Group Limited          63031            121-141 Westbourne Terrace
                                                     London W2 6JR

7   Cordiant Property Holdings      2263916          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

8   ICM International Limited       1802173          121-141 Westbourne Terrace
                                                     London W2 6JR

9   Swot Pius Limited               1929347          121-141 Westbourne Terrace
                                                     London W2 6JR

10  The Decision Shop Limited       615225           121-141 Westbourne Terrace
                                                     London W2 6JR

11  XMSS Limited                    2463385          121-141 Westbourne Terrace
                                                     London W2 6JR

12  Healthworld Holdings            3458882          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

13  Milton Marketing Group          3113109          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

14  Headcount Worldwide              1425412          121-141 Westbourne Terrace
    Field Marketing Limited                          London W2 6JR

                                       93
<PAGE>

    Name of Overdraft           Registered Number    Registered office/address
         Borrower                   (if any)

15  Colwood Healthworld             2213846          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

16  Bates Healthworld Limited       3961667          121-141 Westbourne Terrace
                                                     London W2 6JR

17  Milton Marketing Limited        1385429          121-141 Westbourne Terrace
                                                     London W2 6JR

18  Financial Dynamics Holdings     1656428          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

19  Lighthouse Holdings (UK)        3719632          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

20  Fitch Design Consultants        670130           121-141 Westbourne Terrace
    Limited                                          London W2 6JR

21  Financial Dynamics Limited      670130           121-141 Westbourne Terrace
                                                     London W2 6JR

22  Connect Six Limited             2191533          121-141 Westbourne Terrace
                                                     London W2 6JR

23  Connect Five Limited            1928295          121-141 Westbourne Terrace
                                                     London W2 6JR

24  Clarion Communications          2517824          121-141 Westbourne Terrace
    PR Limited                                       London W2 6JR

25  PSD Associates Limited          2431038          121-141 Westbourne Terrace
                                                     London W2 6JR

26  Scholz & Friends London         3398022          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

27  N.A.S.A.2.0 London              3942853          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

28  CCG.XM                          4023322          121-141 Westbourne Terrace
                                                     London W2 6JR

29  CCGXM Holdings Limited          3961670          121-141 Westbourne Terrace
                                                     London W2 6JR

30  Bamber Forsyth Limited          2097924          121-141 Westbourne Terrace
                                                     London W2 6JR

31  Corporate and Financial         2693509          121-141 Westbourne Terrace
    Design Limited                                   London W2 6JR

32  Bulletin International          2581681          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

                                       94
<PAGE>

    Name of Overdraft           Registered Number    Registered office/address
         Borrower                   (if any)

33  Bulletin International          3778367          121-141 Westbourne Terrace
    (UK) Limited                                     London W2 6JR

34  PCI Live Design Limited         3053382          121-141 Westbourne Terrace
                                                     London W2 6JR

35  Business Communications         4048310          121-141 Westbourne Terrace
    International Group                              London W2 6JR
    Limited

36  Fitch Worldwide Limited         4135498          121-141 Westbourne Terrace
                                                     London W2 6JR

37  Cordiant (US) Holdings          4242432          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

38  Fitch International             2699605          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

39  Fitch Limited                   1388429          121-141 Westbourne Terrace
                                                     London W2 6JR

40  Healthworld UK Holdings         4135498          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

41  Garrott Dorland Crawford        1012296          121-141 Westbourne Terrace
    Holdings Limited                                 London W2 6JR

42  Deckchair Studios Limited       644752           121-141 Westbourne Terrace
                                                     London W2 6JR

43  Ted Bates Holdings Limited      553986           121-141 Westbourne Terrace
                                                     London W2 6JR

44  C&FD (Holdings) Limited         3560931          121-141 Westbourne Terrace
                                                     London W2 6JR

45  Cordiant Overseas Holdings      4135469          121-141 Westbourne Terrace
    Limited                                          London W2 6JR

46  Propose Two Limited             3649589          121-141 Westbourne Terrace
                                                     London W2 6JR

47  Secure Two Limited              3646997          121-141 Westbourne Terrace
                                                     London W2 6JR

48  Connect One Limited             1929925          121-141 Westbourne Terrace
                                                     London W2 6JR

49  Sonic Sun Limited               4350720          121-141 Westbourne Terrace
                                                     London W2 6JR

50  CCG.XM (UK) Limited             3942085          121-141 Westbourne Terrace
                                                     London W2 6JR

                                       95
<PAGE>

                         Part D - Additional Guarantors

                      following the Lighthouse Acquisition

                                    [deleted]

                                       96
<PAGE>

                                   Schedule 2

                         The Banks and their Commitments

Name of Bank               Address, telephone and fax               Commitment
                                     number                          (pounds)

HSBC Bank plc                 MedialTelecoms Group                 15,976,792.53
                              27-32 Poultry
                              London
                              EC2P 2BX
                              Tel:  020 7260 4181
                              Fax:  020 7260 4800

The Bank of New York          Level 48                             15,976,792.53
                              One Canada Square
                              London
                              E14 SAL
                              Tel:  020 7964 6141
                              Fax:  020 7964 6193

ABN AMRO Bank N.V.,           250 Bishopsgate                      10,131,624.52
London Branch                 London
                              EC2M 4AA
                              Tel:  020 7678 5054
                              Fax:  020 7678 8604

Allied Irish Banks, plc       Corporate Banking Britain             8,443,020.17
                              St Helen's
                              1 Undershaft
                              London EC3A 8AB
                              Tel:  020 70907115
                              Fax:  020 7090 7101

Bank of Scotland              38 Threadneedle Street               13,249.047.45
                              London
                              EC2P 2EH
                              Tel:  020 7601 6558
                              Fax:  020 7601 6317

Banque Worms                  Tour Voltaire                         5,065,812.27
                              1 Place des Degres
                              F-92059 Paris La Defense
                              FRANCE
                              Tel:  00 33 1 49 07 54 13
                              Fax:  00 33 1 49 07 56 67

Citibank, N.A.                Media & Communications               10,131,624.52
                              Group
                              388 Greenwich Street
                              21st Floor
                              New York 10013
                              UNITED STATES OF

                                       97
<PAGE>

Name of Bank               Address, telephone and fax               Commitment
                                     number                          (pounds)

                              AMERICA
                              Tel:  001 212 816 8497
                              Fax:  001 212 816 8084

Fleet National Bank           39 Victoria Street                  13,249,047,.45
                              Westminster
                              London
                              SW1H OED
                              Tel:  020 7932 9291
                              Fax:  020 7932 9110

Mizuho Corporate Bank,        River Plate House                    12,339,799.23
Ltd                           7-1l Finsbury Circus
                              London
                              EC2M 7DH
                              Tel:  020 7012 4519
                              Fax:  020 7847 2039

Lloyds TSB Bank plc           Credit Services                      13,249,047.45
                              4th Floor
                              11-15 Monument Street
                              London
                              EC3R 8LR
                              Tel:  020 7775 2207
                              Fax:  020 7775 2214

The Royal Bank of             135 Bishopsgate                      13,249,047.45
Scotland plc                  London EC2M 3UR
                              Tel:  020 7375 8802
                              Fax:  020 7375 8710

Scotiabank Europe plc         Scotia House                         13,249,047.45
                              33 Finsbury square
                              London
                              EC2A IBB
                              Tel:  020 7826 5653
                              Fax:  020 7826 5987

Westdeutsche Landesbank      Woolgate Exchange                     11,560,443.50
Girozentrale                 25 Basinghall Street
                             London
                             EC2V 5HA
                             Tel: 020 7020 7861
                             Fax: 020 7020 7850
TOTAL                                                             155,871,146.52

                                       98
<PAGE>

                                   Schedule 3

                        Part A - Form of Drawdown Notice

To:  HSBC lnvestment Bank plc
     City Place House
     55 Basinghall Street
     London EC2V 5DU

Attention: Syndicated Finance Agency

              OR

     The Bank of New York, as Swingline Bank plc Copy:  HSBC Investment Bank
     c/o BNY Capital Markets, Inc.                      City Place House
     One Wall Street - 18 North                         5 Basinghall Street
     New York                                           London EC2V 5DU

                                                                     ______ 200_
Attention:    Agency Department

Facilities of up to (pound)155,871,146.52 Agreement dated o 2000

We refer to the above Agreement and hereby give you notice that we [wish to draw
down a [Revolving Credit Facility  Advance]/[Swingline  Advance of [pounds]o [in
[currency]]  on o for  [specify  purpose]  and  select  a Term  of [o  days]/[o]
months].  The funds  should be  credited  to [name and number of  account]  with
[details of bank in [New York City]  [London]  [principal  financial  centre for
relevant Optional Currency].

We confirm that:

(i)       no event or circumstance has occurred and is continuing unremedied and
          unwaived which constitutes a Default; and

(ii)      the   representations   and   warranties   contained  in  clause  11.1
          (Representations  and  Warranties)  of the  Agreement  other  than the
          excluded  representations  and  warranties are true and correct at the
          date  of  this  notice  as if  made  with  respect  to the  facts  and
          circumstances existing at the date of this notice [; and]

*[(iii)   we are not aware  (after due  inquiry) of any matter or event which is
          reasonably  likely to result  in a breach  of clause  13.1  (Financial
          Covenants)  or an  Event  of  Default  under  any  of  clauses  14.1.1
          (Non-payment)   or  14.1.5  (Cross  default)  to  14.1.15   (Analogous
          proceedings) inclusive either immediately on the date of this Drawdown
          Notice or within  the  period  ending 12 months  after the date of the
          drawing.]

Words and  expressions  defined in the  Agreement  shall have the same  meanings
where used in this notice.

For and on behalf of

---------------------------------
[Name of Borrower]
<PAGE>

*For and on behalf of

---------------------------------
Cordiant Communications Group plc

[*:Note - include in the Drawdown Notice relating to a Revolving Credit Advance
which would,  if drawn,  cause the  aggregate  Sterling  Amount of the Revolving
Credit Advances  outstanding after such drawing to exceed the aggregate Sterling
Amount of the Revolving Credit Advances  outstanding  under the Revolving Credit
Facility prior to that drawing (after taking account of any repayment made on or
prior to the date of such drawlng).]

                                      100
<PAGE>

                         Part B - Form of L/C Application

To   The Bank of New York, as Swingline Bank,
     c/o BNY Capital Markets, Inc.,
     One Wall Street -18 North
     New York

     Attention: Agency Department

Copy:HSBC Investment Bank plc
     City Place House
     55 Basinghall Street
     London EC2V 5DU

     Attention: Syndicated Finance Agency

                                                                        o 200 o

Facilities of up to (pound)155,871,146.52 Agreement dated o 2000

We refer to the above  Agreement  and hereby  request that you issue a Swingline
Letter of Credit  with an L/C Issue  Date of [ ] for a maximum  amount of [ ] in
respect of [ ].

We confirm that:

(i)  no event or  circumstance  has occurred and is  continuing  unremedied  and
     unwaived which constitutes a Default; and

(ii) the   representations    and   warranties    contained   in   clause   11.1
     (Representations  and  Warranties) of the Agreement other than the excluded
     representations  and  warranties  are true and  correct at the date of this
     notice as if made with respect to the facts and  circumstances  existing at
     the date of this notice.

Words and  expressions  defined in the  Agreement  shall have the same  meanings
where used in this notice.

For and on behalf of

-------------------------
Cordiant US Holdings Inc.

                                       101
<PAGE>

                                   Schedule 4

             Part A - Documents and evidence required as conditions
             precedent to the delivery of the first Drawdown Notice
                          in respect of the Facilities

                                    [deleted]

                                       102
<PAGE>

             Part B - To be delivered prior to the delivery of the
              first Drawdown Notice in respect of an Advance to be
              used to refinance the Existing Lighthouse Facilities
              or to pay costs and expenses incurred in connection
                        with the Lighthouse Acquisition

                                    [deleted]

                                       103
<PAGE>

  Part C - Documents and evidence to be delivered by each additional Guarantor

                                    [deleted]

                                       104
<PAGE>

        Part D - Documents and evidence to be delivered by an Additional
                   Borrower or Additional Overdraft Borrower

(a)  A copy, certified as true, complete and up to date by the company secretary
     or  equivalent  officer of the relevant  Subsidiary of the  Certificate  of
     Incorporation and the Memorandum and Articles of Association (or equivalent
     constitutional  documents) of the relevant  Subsidiary  and, in the case of
     any such  Subsidiary  incorporated  in the United  States of  America,  all
     documents relating to the existence and good standing of such Subsidiary.

(b)  A copy,  certified as a true copy by the company  secretary (or equivalent)
     of the relevant  Subsidiary,  of resolutions of the Board of Directors (or,
     in the case of any company  incorporated  an Germany,  any other  competent
     authority) of that Subsidiary evidencing approval of the Borrower Accession
     Agreement  or  Overdraft  Borrower  Accession  Agreement  and any  relevant
     documents  to be  provided  pursuant  to  paragraphs  (m) and (n) below and
     authorising its  appropriate  officers to execute and deliver such Borrower
     Accession  Agreement  or Overdraft  Borrower  Accession  Agreement  and any
     relevant  documents to be provided pursuant to paragraphs (m) and (n) below
     and to give all  notices  (including  Drawdown  Notices)  in the case of an
     Additional  Borrower  and take all other  action  required by the  relevant
     Subsidiary under the Bank Finance Documents to which it becomes a party.

(c)  A copy,  certified as a true copy by the company  secretary  or  equivalent
     officer  of  the  relevant  Subsidiary  of  all  consents,  authorisations,
     licences and approvals required by the relevant Subsidiary to authorise, or
     required by the relevant  Subsidiary in  connection  with,  the  execution,
     delivery,  validity,  enforceability  and  admissibility in evidence of the
     Borrower Accession  Agreement or Overdraft Borrower Accession Agreement and
     any relevant  documents to be provided  pursuant to paragraphs  (m) and (n)
     below and the  performance  by the relevant  Subsidiary of its  obligations
     under the Bank Finance Documents to which it becomes a party.

(d)  Specimen  signatures,  authenticated by the company secretary or equivalent
     officer  of the  relevant  Subsidiary  of  the  persons  authorised  in the
     resolutions  of the  Board  of  Directors  or  equivalent,  referred  to in
     paragraph (b), above.

(e)  An opinion of legal  advisers to the Banks in the country of  incorporation
     of the relevant Subsidiary,  dated not more than fifteen Banking Days prior
     to the date of the  Borrower  Accession  Agreement  or  Overdraft  Borrower
     Accession Agreement.

(f)  An opinion of Norton Rose,  dated not more than fifteen  Banking Days prior
     to the date of the  Borrower  Accession  Agreement  or  Overdraft  Borrower
     Accession Agreement.

(g)  In the case of a Subsidiary not  incorporated in England and Wales, a copy,
     certified as a true copy by the company secretary or equivalent  officer of
     the  relevant  Subsidiary  of a  letter  from  the  agent  of the  relevant
     Subsidiary  for receipt of service of process  referred to in the  Borrower
     Accession  Agreement  or  Overdraft  Borrower  Accession  Agreement  or any
     relevant  documents to be provided pursuant to paragraphs (m) and (n) below
     accepting its appointment.

(h)  A Borrower Accession  Agreement or Overdraft  Borrower Accession  Agreement
     duly executed by the  Additional  Borrower and (in the case of the Borrower
     Accession Agreement or Overdraft Borrower Accession Agreement) the Parent.

(i)  A certificate  of a director of the  Additional  Borrower  confirming  that
     utilisation  of the  Facilities  in full or,  in the case of an  Additional
     Overdraft Borrower, utilisation of the Overdraft Facility in full would not
     cause any borrowing limit binding on it to be exceeded.

(j)  A copy,  certified as a true copy by the company secretary of the Parent of
     resolutions of the Board of Directors of the Parent, evidencing approval of
     the  Parent  (for  itself  and on  behalf of the  other  Borrowers)  to the
     Subsidiary  becoming  an  Additional  Borrower or an  Additional

                                       105
<PAGE>

     Overdraft  Borrower,  as the  case  may be,  by  entering  into a  Borrower
     Accession Agreement or Overdraft Borrower Accession Agreement.

(k)  Excerpt  from  the   commercial   register  of  any   relevant   Subsidiary
     incorporated  in Germany dated not later than fifteen Banking Days prior to
     the date of the Borrower Accession Agreement confirming the signatories are
     authorised to act on behalf of the respective company.

(l)  A written  confirmation from each Guarantor that its Guarantee continues in
     full  force  and  effect  notwithstanding  the  accession  of the  relevant
     Additional  Borrower or Additional  Overdraft  Borrower and  guarantees the
     borrowings  of the relevant  Additional  Borrower or  Additional  Overdraft
     Borrower.

(m)  The  documentation  and evidence  required to be provided as a condition to
     the accession of an Additional  Borrower or Additional  Overdraft  Borrower
     under the terms of the Security Memorandum.

(n)  Evidence  satisfactory to the Agent that the relevant Subsidiary is a party
     to, or has acceded to, the  Intercreditor  Agreement,  the Common  Security
     Trust Deed and the relevant deed of crossguarantee  and overdraft  facility
     letter in favour of the Overdraft Bank.

                                       106
<PAGE>

               Part E - Form of Director's Certificate regarding
                              financial assistance

                                    [deleted]

                                       107
<PAGE>

                                   Schedule 5
                         Calculation of Additional Cost

1    The Additional Cost is an addition to the interest rate to compensate Banks
     for the cost of compliance with (a) the requirements of the Bank of England
     and/or the  Financial  Services  Authority  (or, in either case,  any other
     authority  which  replaces  all  or  any  of  its  functions)  or  (b)  the
     requirements of the European Central Bank.

2    On  the  first  day  of  each  interest  period  (or as  soon  as  possible
     thereafter) the Agent shall  calculate,  as a percentage  rate, a rate (the
     "Additional  Cost Rate") for each Bank, in accordance  with the  paragraphs
     set out below.  The  Additional  Cost will be  calculated by the Agent as a
     weighted  average  of  the  Banks'   Additional  Cost  Rates  (weighted  in
     proportion  to the  percentage  participation  of each Bank in the relevant
     Advance) and will be expressed as a percentage rate per annum.

3    The Additional  Cost Rate for any Bank lending from a Facility  Office in a
     Participating  Member State will be the percentage notified by that Bank to
     the Agent.  This percentage will be certified by that Bank in its notice to
     the Agent to be its reasonable  determination  of the cost  (expressed as a
     percentage  of that Bank's  participation  in all  Advances  made from that
     Facility Office) of complying with the minimum reserve  requirements of the
     European Central Bank in respect of loans made from that Facility Office.

4    The Additional Cost Rate for any Bank lending from a Facility Office in the
     United Kingdom will be calculated by the Agent as follows:

     in relation to a sterling Advance:

         AB+C(B-D)+/E x O.01
         ------------------per cent. per annum
            100-(A + C)

     in relation to an Advance in any currency other than sterling:

        E x 0.01
        ------- per cent. per annum.
          300

     Where:

     A    is the  percentage of Eligible  Liabilities  (assuming  these to be in
          excess of any  stated  minimum)  which  that Bank is from time to time
          required to maintain as an interest  free cash ratio  deposit with the
          Bank of England to comply with cash ratio requirements.

     B    is the  percentage  rate of  interest  (excluding  the  Margin and the
          Additional  Cost and, if the Advance is an unpaid sum, the  additional
          rate of interest  specified in clause 5 (Interest  for late  payment))
          payable for the relevant interest period on the Advance.

     C    is the percentage (if any) of Eligible  Liabilities which that Bank is
          required  from time to time to maintain as  interest  bearing  Special
          Deposits with the Bank of England.

     D    is the percentage rate per annum payable by the Bank of England to the
          Agent on interest bearing Special Deposits.

                                       108
<PAGE>

     E    is designed to  compensate  Banks for amounts  payable  under the Fees
          Rules and is calculated by the Agent as being the average of the rates
          of charge  supplied by the Reference  Banks (or those of the Reference
          Banks  as  supply  a rate  to the  Agent)  to the  Agent  pursuant  to
          paragraph 7 below and expressed in pounds per (pound)1,000,000.

5    For the purposes of this Schedule:

     "Eligible  Liabilities"  and "Special  Deposits" have the meanings given to
     them from time to time under or pursuant to the Bank of England Act 1998 or
     (as may be appropriate) by the Bank of England;

     "Fees  Rules"  means the rules on  supervision  fees  contained  in the FSA
     Supervision  Manual or such other law or regulation as may be in force from
     time to time in  respect  of the  payment  of fees  for the  acceptance  of
     deposits;

     "Fee Tariffs"  means the fee tariffs  specified in the Fees Rules under the
     activity group A.1 Deposit  acceptors (but ignoring any minimum fee or zero
     rated fee required pursuant to the Fees Rules); and

     "Tariff  Base"  has the  meaning  given to it,  and will be  calculated  in
     accordance with, the Fees Rules.

6    In application of the above formulae, A, B, C and D will be included in the
     formulae as percentages  (i.e. 5 per cent.  will be included in the formula
     as 5 and not as 0.05). A negative  result  obtained by subtracting D from B
     shall be taken as zero.  The  resulting  figures  shall be  rounded to four
     decimal places.

7    Each  Reference  Bank  shall  supply to the Agent in  writing,  the rate of
     charge payable by that Reference Bank to the Financial  Services  Authority
     pursuant to the Fees Rules  (calculated  for this purpose by that Reference
     Bank as being the average of the Fee Tariffs  applicable to that  Reference
     Bank) and  expressed in pounds per  (pound)1,000,000  of the Tariff Base of
     that Reference Bank.

     Each  Reference  Bank  shall  promptly  notify  the Agent in writing of any
     change to the information provided by it pursuant to this paragraph.

8    Each  Bank  shall  supply  any  information  required  by the Agent for the
     purpose of calculating its Additional Cost Rate. In particular, but without
     limitation,  each Bank shall supply the following information in writing on
     or prior to the date on which it becomes a Bank:

     (i)  its jurisdiction of incorporation and the jurisdiction of its Facility
          Office; and

     (ii) any other  information that the Agent may reasonably  require for such
          purpose.

     Each Bank shall  promptly  notify the Agent in writing of any change to the
     information provided by it pursuant to this paragraph.

9    The percentages or rates of charge of each Bank and each Reference Bank for
     the purpose of A, C and E above shall be determined by the Agent based upon
     the information  supplied to it pursuant to paragraphs 7 and 8 above and on
     the assumption that,  unless a Bank or Reference Bank notifies the Agent to
     the contrary,  each Bank's and Reference Bank's  obligations in relation to
     cash ratio  deposits,  Special  Deposits and the Fees Rules are the same as
     those of a  typical  bank from its  jurisdiction  of  incorporation  with a
     Facility Office in the same jurisdiction as its Facility Office.

10   The Agent  shall  have no  liability  to any  person if such  determination
     results in an Additional Cost Rate which over or under compensates any Bank
     and shall be entitled to assume that the  information  provided by any Bank
     or  Reference  Bank  pursuant  to  paragraphs  3, 7 and 8 above is true and
     correct in all respects.

                                       109
<PAGE>

11   The Agent shall  distribute the additional  amounts received as a result of
     the Additional  Cost to the Banks on the basis of the Additional  Cost Rate
     for each  Bank  based on the  information  provided  by each  Bank and each
     Reference Bank pursuant to paragraphs 3, 7 and 8 above.

12   Any  determination  by the Agent pursuant to this Schedule in relation to a
     formula, the Additional Cost, an Additional Cost Rate or any amount payable
     to a Bank shall,  in the  absence of  manifest  error,  be  conclusive  and
     binding on all parties.

13   The Agent may from time to time,  after  consultation  with the Company and
     the Banks,  determine  and notify to all Parties any  amendments  which are
     required to be made to this  Schedule in order to comply with any change in
     law,  regulation or any requirements  from time to time imposed by the Bank
     of England,  the Financial  Services Authority or the European Central Bank
     (or, in any case,  any other  authority  which  replaces  all or any of its
     functions)  and any such  determination  shall,  in the absence of manifest
     error, be conclusive and binding on all parties.

                                       110
<PAGE>

                                   Schedule 6

                        Form of Substitution Certificate

                            Part A (single transfers)

          Note:  Any new Bank  must  also  sign the  agreed  form  Bank  Deed of
          Accession set out in the Common Security Trust Deed]

NB:  1    Banks are advised not to employ Substitution Certificates or otherwise
          to assign, novate or transfer interests in the Agreement without first
          ensuring that the  transaction  complies with all applicable  laws and
          regulations, including the Financial Services Act 1988 and regulations
          made thereunder.

     2    It is  expected  that  Banks will  enter  into  separate  arrangements
          dealing  with  the  monies  to be  paid  to the  Existing  Bank by the
          Substitute in consideration of the novation (e.g.  principal,  accrued
          interest,  fees and any  mismatched  funding  adjustment).  Unless the
          Transfer Date is a rollover date,  mismatches of parties'  funding may
          arise.  This Certificate does not deal with these issues,  nor does it
          deal with any interim risk  participation  the Existing Bank may grant
          to the Substitute pending the Transfer Date.

To:  HSBC Investment Bank plc

     City Place House
     55 Basinghall Street
     London EC2V 5DU

     Attention: Syndicated Agency

                                                [Date]

                            Substitution Certificate

This Substitution  Certificate relates to an Agreement (the "Agreement") dated 4
July 2000  between  Cordiant  Communications  Group plc as the Parent  (1),  the
companies whose names,  registered numbers and registered offices are set out in
schedule 1 thereto as Original  Borrowers or Original  Overdraft  Borrowers (2),
The Bank of New York and HSBC  Investment  Bank plc as Arrangers  (3), the banks
and financial  institutions  whose respective names and addresses are set out in
schedule  2 thereto  as Banks (4) HSBC  Investment  Bank plc as Agent,  Security
Trustee and Common Security  Trustee (5), The Bank of New York as Swingline Bank
(6) and HSBC  Bank plc as  Overdraft  Bank  (7) (as from  time to time  amended,
varied, extended,  restated or replaced) and the Security Trust Deed, the Common
Security  Trust Deed and the  Intercreditor  Agreement  defined and  referred to
therein.  Terms  defined in the  Agreement  shall have the same  meaning in this
Substitution Certificate.

1    [Name of Existing Bank] (the "Existing  Bank") (a) confirms the accuracy of
     the summary of its Commitment and  Contribution  set out in the schedule to
     this  Substitution  Certificate;  and (b) requests  [Substitute  Bank] (the
     "Substitute")  to accept by way of novation  the portion of its  Commitment
     and Contribution specified in the schedule to this Substitution Certificate
     by  counter-signing  and delivering  this  Substitution  Certificate to the
     Agent at its address for the service of notices specified in the Agreement.

                                       111
<PAGE>

2    The  Substitute  requests  the Agent (on behalf of  itself,  the other Bank
     Finance  Parties,  the Borrowers and all other parties to the Agreement and
     the Security Trust Deed) to accept this  Substitution  Certificate as being
     delivered to the Agent pursuant to and for the purposes of clause 18.3 [and
     clause 18.15] of the  Agreement and clause 10.3 of the Security  Trust Deed
     so as to take effect in  accordance  with the terms on [date of  transfer],
     (being not  earlier  then [5]  Banking  Days after date of  delivery of the
     Certificate to the Agent] (the  "Transfer  Date") or on such date as may be
     determined in accordance with the terms thereof.

3    The Agent (on  behalf  of  itself,  the other  Bank  Finance  Parties,  the
     Borrowers and all other  parties to the  Agreement  and the Security  Trust
     Deed)  confirms  the  novation  effected by this  Substitution  Certificate
     pursuant to and for the  purposes of clause 18.3 [and clause  18.15] of the
     Agreement  and clause 10.3 of the Security  Trust Deed so as to take effect
     in accordance with the respective terms thereof.

4    The Substitute confirms:

     (a)  that  it  has  received   copies  of  the   Agreement  and  all  other
          documentation  and  information  required by it in connection with the
          transactions contemplated by this Substitution Certificate;

     (b)  that it has not relied upon any statement,  opinion, forecast or other
          representation (including,  without limitation,  anything contained in
          the  Information  Package or any  Information  Memorandum) or warranty
          made by the Existing Bank, the Arrangers,  the Security  Trustee,  the
          Common  Security  Trustee or the Agent to induce it to enter into this
          Substitution Certificate;

     (c)  that it has made and will  continue to make,  without  reliance on the
          Existing  Bank or any  other  Bank  Finance  Party,  and based on such
          documents  as it  considers  appropriate,  its  own  appraisal  of the
          creditworthiness   of  each   Borrower  and  the  Group  and  its  own
          independent  investigation of the financial  condition,  prospects and
          affairs of each Borrower and the Group in  connection  with the making
          and continuation of the Facilities under the Agreement;

     (d)  that neither the Existing  Bank nor any other Bank Finance Party shall
          at any time be  deemed  to have had or have a duty or  responsibility,
          either  historically,  initially or on a continuing  basis, to provide
          the Substitute  with any credit or other  information  with respect to
          any Borrower or any other member of the Group whether  coming into its
          possession  before the  making of any  Drawing or at any time or times
          thereafter,  other  than (in the case of the  Agent)  as  provided  in
          clauses 19.3.1 and 19.5.1 of the Agreement;

     (e)  that it has made and will  continue to make its own  assessment of the
          legality, validity, enforceability and sufficiency of the Bank Finance
          Documents  and this  Substitution  Certificate  and has not relied and
          will  not rely on the  Existing  Bank,  the  Arrangers,  the  Security
          Trustee,  the Common  Security  Trustee or the Agent or any statements
          made by any of them in that respect;

     (f)  that,  accordingly,  none of the Existing  Bank,  the  Arrangers,  the
          Security Trustee, the Common Security Trustee and the Agent shall make
          any  representations  or  warranties  in respect of, or shall have any
          liability or responsibility to the Substitute in respect of any of the
          foregoing  matters or any other  matter  referred to in clause 19.7 of
          the Agreement; and

     (g)  that [it is [is not] a Qualifying Bank.

5    Execution of this  Substitution  Certificate by the Substitute  constitutes
     its  representation  to the  Existing  Bank and all  other  parties  to the
     Agreement and the Security  Trust Deed that it has power to become party to
     the Agreement and the Security Trust Deed as a Bank on the terms herein and
     therein set out and has taken all  necessary  steps to authorise  execution
     and delivery of this Substitution Certificate.

                                       112
<PAGE>

6    The  Substitute  hereby  undertakes  to the Existing  Bank,  the other Bank
     Finance  Parties,  the Borrowers and the other Parties to the Agreement and
     the Security Trust Deed that it will perform in accordance with their terms
     all those  obligations  which by the respective  terms of the Agreement and
     the  Security  Trust Deed will be assumed  by it after  acceptance  of this
     Substitution Certificate by the Agent.

7    Without  limiting  the  above  paragraphs,  nothing  in  this  Substitution
     Certificate obliges the Existing Bank to:

     (a)  accept  any  re-transfer  from the  Substitute  of any of the  rights,
          benefits and/or obligations hereby transferred; or

     (b)  support  any  losses  incurred  by the  Substitute  by  reason  of any
          non-performance by any Borrower or any other party to the Bank Finance
          Documents or any document  relating  thereto of any of its obligations
          under the same.

8    This Substitution Certificate and the rights and obligations of the parties
     hereunder  shall be governed by and  construed in  accordance  with English
     law.  Clauses 21.2 and 21.3 of the  Agreement  inclusive  are  incorporated
     herein by reference.

9    This Substitution Certificate may be executed in any number of counterparts
     and by different  parties on separate  counterparts,  each of which when so
     executed and delivered  shall be an original,  but all  counterparts  shall
     together constitute one and the same instrument.

     Note:  This  Substitution  Certificate  is  not  a  security,  bond,  note,
     debenture, investment or similar instrument.

AS WITNESS the hands of the authorised  signatories of the parties hereto on the
date appearing below.

                                       113
<PAGE>

                                  The Schedule

Amount of Contribution                                 Portion Novated
     (pound)                                               (pound)

Amount of Commitment                                   Portion Novated
     (pound)                                               (pound)

                      Administrative Details of Substitute

Lending office:

Account for payments:

Telephone:

Telefax:

Attention:

[Existing Bank]          [Subsitute]

By:                      By:

Date                     Date

The Agent

By:

on its own behalf and on behalf of the other Bank Finance Parties,  the Obligors
and all other parties to the Agreement and the Security Trust Deed.

Date:

                                       114
<PAGE>

                              Part B (global form)

          Note:  Any new Bank  must  also  sign the  agreed  form  Bank  Deed of
          Accession set out In the Common Security Trust Deed]

NB   1.   Banks are advised not to employ Substitution Certificates or otherwise
          to assign, novate or transfer interests in the Agreement without first
          ensuring that the  transaction  complies with all applicable  laws and
          regulations, including the Financial Services Act 1986 and regulations
          made thereunder.

     2.   It is  expected  that  Banks will  enter  into  separate  arrangements
          dealing  with  the  monies  to be paid to the  Existing  Banks  by the
          Substitutes in consideration of the novatlon (e.g. principal,  accrued
          interest,  fees and any  mismatched  funding  adjustment).  Unless the
          Transfer Date is a rollover date,  mismatches of parties'  funding may
          arise.  This Certificate does not deal with these issues,  nor does it
          deal with any interim risk  participation the Existing Banks may grant
          to the Substitutes pending the Transfer Date.

To:  HSBC Investment Bank plc
     City Place House
     55 Basinghall Street
     London EC2V 5DU

     Attention: Syndicated Finance Agency

                                                                          [Date]

                            Substitution Certificate
                            ------------------------

This Substitution  Certificate relates to an Agreement (the "Agreement") dated 4
July 2000  between  Cordiant  Communications  Group plc as the Parent  (1),  the
companies whose names,  registered numbers and registered offices are set out in
schedule 1 thereto as Original  Borrowers or Original  Overdraft  Borrowers (2),
The Bank of New York and HSBC  Investment  Bank plc as Arrangers  (3), the banks
and financial  institutions  whose respective names and addresses are set out in
schedule 1 thereto as Banks (4),  HSBC  Investment  Bank plc as Agent,  Security
Trustee and Common Security  Trustee (5), The Bank of New York as Swingline Bank
(6) and HSBC  Bank plc as  Overdraft  Bank  (7) (as from  time to time  amended,
varied, extended,  restated or replaced) and the Security Trust Deed, the Common
Security Trust Deed and lntercreditor Agreement defined and referred to therein.
Terms defined in the Agreement shall have the same meaning in this  Substitution
Certificate.

1    Each of the banks or financial  institutions  set out as Existing  Banks in
     part A of the  schedule  below (the  "Existing  Banks")  (a)  confirms  the
     accuracy of the summary of its  participation  in the  Agreement set out in
     the schedule and (b) requests each of the banks set out as Substitute Banks
     in part C of the schedule (the  "Substitutes") to accept by way of novation
     the portion of such participation specified (or calculated as specified) in
     the  schedule  by   counter-signing   and  delivering   this   Substitution
     Certificate  to the  Agent  at its  address  for  the  service  of  notices
     specified in the Agreement.

2    Each of the Substitutes hereby requests the Agent (on behalf of itself, the
     other Bank  Finance  Parties,  the  Obligors  and all other  parties to the
     Agreement  and  the  Security  Trust  Deed)  to  accept  this  Substitution
     Certificate  as  being  delivered  to the  Agent  pursuant  to and  for the
     purposes of clause 18.3 [and clause 18.15] of the Agreement and clause 10.3
     of the  Security  Trust Deed so as to take  effect in  accordance  with the
     terms thereof on [date of transfer] (the "Transfer  Date") or on such later
     date as may be determined in accordance with the terms thereof.

3    The Agent (on  behalf  of  itself,  the other  Bank  Finance  Parties,  the
     Borrowers and all other  parties to the  Agreement  and the Security  Trust
     Deed)  confirms  each  of  the  novations  effected  by  this  Substitution
     Certificate pursuant to and for the purposes of clause 18.3 [and clause

                                       115
<PAGE>

     18.15] of the Agreement and clause 10.3 of the Security Trust Deed so as to
     take effect in accordance with the respective terms thereof.

4    Each of the Substitutes confirms:

     (a)  that  it  has  received   copies  of  the   Agreement  and  all  other
          documentation  and  information  required by it in connection with the
          transactions contemplated by this Substitution Certificate;

     (b)  that it has not relied upon any statement,  opinion, forecast or other
          representation (including,  without limitation,  anything contained in
          the  Information  Package or any  Information  Memorandum) or warranty
          made by the Existing Banks, the Arrangers,  the Security Trustee,  the
          Common  Security  Trustee or the Agent to induce it to enter into this
          Substitution Certificate;

     (c)  that it has made and will  continue to make,  without  reliance on the
          Existing  Banks or any other  Bank  Finance  Party,  and based on such
          documents  as it  considers  appropriate,  its  own  appraisal  of the
          creditworthiness   of  each   Borrower  and  the  Group  and  its  own
          independent  investigation of the financial  condition,  prospects and
          affairs of each Borrower and the Group in  connection  with the making
          and continuation of the Facilities under the Agreement;

     (d)  that neither the Existing Banks nor any other Bank Finance Party shall
          at any time be  deemed  to have had or have a duty or  responsibility,
          either  historically,  initially or on a continuing  basis, to provide
          the Substitutes  with any credit or other  information with respect to
          any Borrower or any other member of the Group whether  coming into its
          possession  before the  making of any  Drawing or at any time or times
          thereafter,  other  than (in the case of the  Agent)  as  provided  in
          clauses 19.3.1 and 19.5.1 of the Agreement;

     (e)  that it has made and will  continue to make its own  assessment of the
          legality, validity. enforceability and sufficiency of the Bank Finance
          Documents  and this  Substitution  Certificate  and has not relied and
          will not rely on the  Existing  Banks,  the  Arrangers,  the  Security
          Trustee,  the Common  Security  Trustee or the Agent or any statements
          made by any of them in that respect;

     (f)  that,  accordingly,  none of the Existing  Banks,  the Arrangers,  the
          Security Trustee, the Common Security Trustee and the Agent shall make
          any  representations  or  warranties  in respect of, or shall have any
          liability or  responsibility  to the Substitutes in respect of, any of
          the foregoing  matters or any other matter  referred to in clause 19.7
          of the Agreement;

     (g)  that [it is [is not] a Qualifying Bank.

5    Execution  of this  Substitution  Certificate  by  each of the  Substitutes
     constitutes its  representation to each of the Existing Banks and all other
     parties to the Agreement  and the Security  Trust Deed that it has power to
     become party to the Agreement and the Security  Trust Deed as a Bank on the
     terms  herein  and  therein  set out and has taken all  necessary  steps to
     authorise execution and delivery of this Substitution Certificate.

6    Each of the Substitutes  hereby  undertakes to the Existing Banks, the Bank
     Finance  Parties,  the  Borrowers  and  each of the  other  parties  to the
     Agreement  and the Security  Trust Deed that it will perform in  accordance
     with its terms all those  obligations  which by the terms of the  Agreement
     and the Security Trust Deed will be assumed by it after  acceptance of this
     Substitution Certificate by the Agent.

7    Without  limiting  the  above  paragraphs,  nothing  in  this  Substitution
     Certificate obliges any of the Existing Banks to:

     (a)  accept  any  re-transfer  from any  Substitute  of any of the  rights,
          benefits and/or obligations hereby transferred; or

                                       116
<PAGE>

     (b)  support  any  losses  incurred  by any  Substitute  by  reason  of any
          non-performance  by any Obliger or any other party to the Bank Finance
          Documents or any document  relating  thereto of any of its obligations
          under the same.

8    Each Substitute (and the Existing Banks in respect of the transfers to such
     Substitute)   agrees   to  be  bound  by  this   Substitution   Certificate
     notwithstanding   that  any  other  Substitute  intended  to  execute  this
     Substitution Certificate may not do so or may not be effectually bound.

9    This Substitution Certificate may be executed in any number of counterparts
     and by different  parties on separate  counterparts,  each of which when so
     executed and delivered  shall be an original,  but all  counterparts  shall
     together constitute erie and the same instrument.

10   This Substitution Certificate and the rights and obligations of the parties
     hereunder  shall be governed by and  construed in  accordance  with English
     law.  Clauses 21.2 and 21.3 of the  Agreement  inclusive  are  incorporated
     herein by reference.

     Note:  This  Substitution  Certificate  is  not  a  security,  bond,  note,
     debenture, investment or similar instrument

AS WITNESS the hands of the authorised  signatories of the parties hereto on the
date appearing below.

                                       117
<PAGE>

                                  The Schedule
                                  ------------

                                     Part A

                Existing Banks' Commitments, Contributions being
                       each of their participations in the
                        Agreement as at the date of this
                            Substitution Certificate

[Set  out  each  Existing  Bank's   participation   including   Commitments  and
Contributions]

                                     Part B

                               Portion Transferred

[Set out the  portion of each  Existing  Bank's  Commitments  and  Contributions
transferred]

                   [set out details or method of calculation]

                                     Part C

[Set out names of Substitute Banks and the aggregate  amounts of the Commitments
and Contributions being transferred to them]
[Insert execution particulars and each Substitute's administration details]

[Each of the Existing Banks]            [Each of the Substitutes]

By:                                     By:
   ----------------------------            ---------------------------------

Date:                                   Date:

The Agent

By:
   ----------------------------

on its own behalf
and on behalf of the other Bank Finance  Parties,  the  Borrowers  and all other
parties to the Agreement and the Security Trust Deed.

                                       118
<PAGE>

<TABLE>
<CAPTION>
                                                      Schedule 7

                                                Permitted Encumbrances

<S>              <C>                           <C>          <C>           <C>
China            Bates China                   HKD              835,000   Cash collateral to secure rental agreement
--------------------------------------------------------------------------------------------------------------------
France           Bates France                  FRF            1,073,000   Cash collateral to secure rental guarantee
--------------------------------------------------------------------------------------------------------------------
Greece           Bates Hellas                  GRD           50,000,000   Charge on accounts receivable re Xios bank
                                                                          facility
--------------------------------------------------------------------------------------------------------------------
Greece           Bates Hellas                  GRD           75,000,000   Post dated bills re guarantee facility
                                                                          provided by Xios Bank (renamed Piraeus)
--------------------------------------------------------------------------------------------------------------------
India            Bates India Ltd               INR           25,000,000   Hypothecation of book debts and equitable
                                                                          mortgage of properties for bank facilities
                                                                          granted by both HSBC and Nedungadi Bank
                                                                          (was 75m INR)
--------------------------------------------------------------------------------------------------------------------
Netherlands       Cordiant Finance BV          NLG               18,463   Cash collateral to secure rental guarantee
--------------------------------------------------------------------------------------------------------------------
Sweden            Bates Sweden                 SEK            4,150,000   Charge on assets re Provinsbanken/Osgota
                                                                          Enskilda Banken bank and guarantee
                                                                          facility
--------------------------------------------------------------------------------------------------------------------
Taiwan            Bates Taiwan                 TWD           15,000,000   Cash collateral for media guarantee
                                                                          facility
--------------------------------------------------------------------------------------------------------------------
UK                CCG plc                      EUR              165,000   Escrow account held with Bankinter for
                                                                          deferred consideration re minority
                                                                          purchase of Grupo Bates Spain (originally
                                                                          60m ESP)
--------------------------------------------------------------------------------------------------------------------
Australia         Marketforce Ltd              AUD            1,200,000   Secured by Mortgage debenture
--------------------------------------------------------------------------------------------------------------------
Brazil            Newcomm                      BRL            4,000,000   Charge over receivables
--------------------------------------------------------------------------------------------------------------------
Czech             Intercom                     CZK            4,000,000   Charge over receivables
Republic
--------------------------------------------------------------------------------------------------------------------
Norway                                         NOK           12,500,000   Charge over receivables for the provision
                                                                          of an overdraft facility and rental
                                                                          guarantees
--------------------------------------------------------------------------------------------------------------------
Thailand          Bates Thailand               THB            4,250,000   Charge over assets for the provision of a
                                                                          loan facility
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       119
<PAGE>

                                   Schedule 8

                                     Part A
                          Borrower Accession Agreement

THIS BORROWER ACCESSION AGREEMENT is dated [      ] and made BEIWEEN:

(1)  o (No. o) whose registered office is at o (the "Additional Borrower");

(2)  CORDIANT  COMMUNICATIONS GROUP PLC (No. 1320869) whose registered office is
     at 121-141 Westbourne Terrace, London W2 6JR (the "Parent"); and

(3)  HSBC INVESTMENT BANK PLC of City Place House, 55 Basinghall Street,  London
     EC2V 5DU in its capacity as Agent under the Agreement  referred to below on
     behalf of itself the and the other Finance Parties (the "Agent").

WHEREAS:

(A)  The Additional Borrower is a Subsidiary of the Parent.

(B)  By an  agreement  dated 4 July 2000 and made  between the Parent  (1),  the
     companies  whose  names  and,  where  applicable,  registered  offices  and
     registered  numbers are set out in parts A or C of schedule 1 thereto  (2),
     the  Arrangers  (3), the banks and financial  institutions  whose names and
     addresses  are set out in schedule 2 thereto (4),  the Agent,  the Security
     Trustee and the Common Security Trustee (5), the Swingline Bank (6) and the
     Overdraft  Bank  (7)  (as  from  time to time  amended,  varied,  extended,
     restated or replaced, the "Agreement"),  the Banks agreed to make available
     to the Borrowers credit facilities.

(C)  The Parent has undertaken to procure that an agreement  supplemental to the
     Agreement  shall be executed and delivered by any  Subsidiary of the Parent
     which the Parent  intends  should become an Additional  Borrower  under the
     Agreement.

NOW THIS BORROWER ACCESSION AGREEMENT WITNESSES as follows:

1.   Agreement definitions

     Unless the context  otherwise  requires or unless otherwise defined in this
     Borrower  Accession  Agreement,   words  and  expressions  defined  in  the
     Agreement shall have the same meaning when used in this Borrower  Accession
     Agreement  or the  Recitals  hereto.  Clauses 1.3 and 1.4 of the  Agreement
     shall apply to this Borrower Accession Agreement,  mutatis mutandis,  as if
     expressly set out herein.

2.   Accession to the Agreement

     With  effect  from  the  date of this  Borrower  Accession  Agreement,  the
     Additional  Borrower  shall become a party to the  Agreement and a Borrower
     thereunder  as if named  therein in part A of  Schedule 10 thereto and with
     effect from such date shall assume  obligations  towards and rights against
     the other  Borrowers,  the Agent,  the  Arranger,  the Funders,  the Common
     Security Trustee and the Security Trustee as if so named therein.

                                       120
<PAGE>

3.   Continuance of the Agreement

     Notwithstanding  this Borrower Accession  Agreement,  the provisions of the
     Agreement shall continue in full force and effect and, with effect from the
     date of this Borrower Accession Agreement,  the Agreement shall be read and
     construed as one  instrument  as if  references  in the  Agreement to "this
     Agreement"  were to the  Agreement and this  Borrower  Accession  Agreement
     taken together.

4.   Consent

     The Parent (on behalf of itself and, the other Borrowers) and the Agent (on
     behalf of  itself  and the  other  Bank  Finance  Parties)  consent  to the
     Additional Borrower becoming a Borrower as set out in clauses 2 and 3.

5.   Representations and warranties

     The Additional Borrower represents and warrants to each of the Funders, the
     Arrangers,  the Security Trustee, the Common Security Trustee and the Agent
     in the  terms of  clause  11.1 of the  Agreement  other  than the  excluded
     representations  and  warranties  as if  references  therein  (i)  to  this
     "Agreement"  or to  the  "Security  Documents"  or  to  the  "Bank  Finance
     Documents" were also to this Borrower  Accession  Agreement and (ii) to the
     "Borrowers" or any "member of the Group" were to the Additional Borrower.

6.   Law (and jurisdiction)

     This  Borrower  Accession  Agreement  shall be governed by and construed in
     accordance with English law.

     [Jurisdiction clause and appointment of agent for service of process]

IN WITNESS whereof this Borrower  Accession  Agreement has been entered into the
day and year first above written

                                       121
<PAGE>

                 Part B - Overdraft Borrower Accession Agreement

THIS OVERDRAFT BORROWER ACCESSION AGREEMENT is dated [      ] and made BETWEEN:

(1)  (No.  o)  whose  registered  office  is  at  (the  "Additional   Overdraft
     Borrower");

(2)  CORDIANT  COMMUNICATIONS GROUP PLC (No. 1320869) whose registered office is
     at 121/141 Westbourne Terrace, London W2 6JR (the "Parent"); and

(3)  HSBC INVESTMENT BANK PLC of City Place House, 55 Basinghall Street,  London
     EC2V 5DU in its capacity as Agent under the Agreement  referred to below on
     behalf of itself and the other Finance Parties (the "Agent").

WHEREAS:

(A)  The Additional Overdraft Borrower is a Subsidiary of the Parent.

(B)  By an  agreement  dated 4 July 2000 and made  between the Parent  (1),  the
     companies  whose  names  and,  where  applicable,  registered  offices  and
     registered  numbers are set out in parts A or C of schedule 1 thereto  (2),
     the  Arrangers  (3), the banks and financial  institutions  whose names and
     addresses  are set out in schedule 2 thereto (4),  the Agent,  the Security
     Trustee and the Common Security Trustee (5), the Swingline Bank (6) and the
     Overdraft  Bank  (7)  (as  from  time to time  amended,  varied,  extended,
     restated or replaced, the "Agreement"),  the Banks agreed to make available
     to the Borrowers credit facilities.

(C)  The Parent has undertaken to procure that an agreement  supplemental to the
     Agreement  shall be executed and delivered by any  Subsidiary of the Parent
     which the Parent  intends  should become an Additional  Overdraft  Borrower
     under the Agreement.

NOW THIS OVERDRAFT BORROWER ACCESSiON AGREEMENT WIThESSES as follows:

1.   Agreement definitions

     Unless the context  otherwise  requires or unless otherwise defined in this
     Overdraft Borrower Accession  Agreement,  words and expressions  defined in
     the  Agreement  shall  have the same  meaning  when used in this  Overdraft
     Borrower Accession Agreement or the Recitals hereto. Clauses 1.3 and 1.4 of
     the Agreement shall apply to this Overdraft Borrower  Accession  Agreement,
     mutatis mutandis, as if expressly set out herein.

2.   Accession to the Agreement

     With effect from the date of this Overdraft Borrower  Accession  Agreement,
     the Additional Overdraft Borrower shall become a party to the Agreement and
     an  Overdraft  Borrower  thereunder  as if named  therein  as an  Overdraft
     Borrower  and with effect from such date shall assume  obligations  towards
     and rights  against  the other  Borrowers,  the Agent,  the  Arranger,  the
     Funders,  the Common  Security  Trustee and the  Security  Trustee as if so
     named therein.

3.   Continuance of the Agreement

     Notwithstanding this Overdraft Borrower Accession Agreement, the provisions
     of the Agreement  shall  continue in full force and effect and, with effect
     from the date of this Overdraft Borrower Accession Agreement, the Agreement
     shall be read and  construed  as one  instrument  as if  references  in the
     Agreement to "this  Agreement"  were to the  Agreement  and this  Overdraft
     Borrower Accession Agreement taken together.

<PAGE>

4.   Consent

     The Parent (on behalf of itself and, the other Borrowers) and the Agent (on
     behalf of  itself  and the  other  Bank  Finance  Parties)  consent  to the
     Additional  Overdraft Borrower becoming an Overdraft Borrower as set out in
     clauses 2 and 3.

5.   Representations and warranties

     The Additional  Overdraft  Borrower  represents and warrants to each of the
     Funders,  the Arrangers,  the Security Trustee, the Common Security Trustee
     and the Agent in the terms of clause 11.1 of the  Agreement  other than the
     excluded  representations  and  warranties as if references  therein (i) to
     this  "Agreement"  or to the  "Security  Documents" or to the "Bank Finance
     Documents"  were also to this Overdraft  Borrower  Accession  Agreement and
     (ii) to the "Borrowers" or any "member of the Group" were to the Additional
     Overdraft Borrower.

6.   Law [and jurisdiction]

     This  Overdraft  Borrower  Accession  Agreement  shall be  governed  by and
     construed in accordance with English law.

     [Jurisdiction clause and appointment of agent for service of process].

IN WITNESS whereof this Overdraft Borrower Accession  Agreement has been entered
into the day and year first above written.

                                       123
<PAGE>

<TABLE>
<CAPTION>
                                                      Schedule 9

                                                 Permitted Guarantees

<S>              <C>                    <C>            <C>           <C>
Austria          Dr Puttner Bates       ATS                600,000   Guarantee given by the company for rent
---------------------------------------------------------------------------------------------------------------------
Greece           Bates Hellas           GRD            200,000,000   Indemnities provided in respect of a guarantee
                                                                     issued under guarantee facility provided by
                                                                     Eurormerchant bank
---------------------------------------------------------------------------------------------------------------------
Greece           Bates Hellas           GRD            150,000,000   Indemnities provided in respect of a guarantee
                                                                     issued under guarantee facility provided by Xios
                                                                     bank, renamed Peraeus bank (secured 50% on post
                                                                     dated bills)
---------------------------------------------------------------------------------------------------------------------
Greece            Bates Hellas          GRD            250,000,000   Indemnities provided in respect of a guarantee
                                                                     issued under guarantee facility provided by ABN
                                                                     AMRO bank
---------------------------------------------------------------------------------------------------------------------
Hong Kong         Bates Hong Kong       HKD                100,000   Guarantee provided to SCMP in respect of Zenith
                                                                     Media
---------------------------------------------------------------------------------------------------------------------
Italy             141 Italia            ITL             17,725,000   Indemnities provided in respect of a guarantee
                                                                     provided by BCI to Zurigo Assurance
---------------------------------------------------------------------------------------------------------------------
Italy             Bates Italia          ITL            131,450,000   Indemnities provided in respect of a guarantee
                                                                     provided by BCI to Zurigo Assurance
---------------------------------------------------------------------------------------------------------------------
Italy             Plan Design           ITL              5,893,750   Guarantee in favour of Italian Finance Ministry
---------------------------------------------------------------------------------------------------------------------
Italy             Ted Bates WW          ITL            104,055,000   Guarantee in favour of Italian Finance Ministry
---------------------------------------------------------------------------------------------------------------------
Italy             Bates Italia          ITL              5,000,000   Indemnities provided in respect of a guarantee
                                                                     provided by BCI on behalf of Italian Police
                                                                     department
---------------------------------------------------------------------------------------------------------------------
Malaysia          Bates Malaysia        MYR              4,000,000   Indemnities provided in respect of a guarantee
                                                                     issued under guarantee facility provided by HSBC
                                                                     (1.5m MYR overdraft facility and 50% of 5m MYR
                                                                     guarantee facility)
---------------------------------------------------------------------------------------------------------------------
Norway            Bates Gruppen AS       NOK             5,500,000   Indemnities provided in respect of a Bank
                                                                     guarantee provided by Sparbanken in favour of
                                                                     landlords for office rents (originally 7.8m NOK)
---------------------------------------------------------------------------------------------------------------------
Spain              Delvico Bates         ESP           100,000,000   Indemnities provided in respect of guarantees
                                                                     issued under a guarantee facility provided by
                                                                     Banco Santander
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc                USD            Lease        Guarantee given to Landlord of Hudson Street
                                                     obligations     (with Saatchi)
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc                GBP            Lease        Guarantee given to Landlord of Berkeley Square
                                                      obligations    (with Saatchi)
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc                GBP            Lease        Guarantee given to Landlord of Dukes Road (with
                                                      obligations    Saatchi)
---------------------------------------------------------------------------------------------------------------------
                                                          124
<PAGE>

UK                CCG plc                GBP            Variable     Forward foreign exchange contracts
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc                JPY           700,000,000   Guarantee given by plc in respect of Bates Japan
---------------------------------------------------------------------------------------------------------------------
UK                Bates Overseas         PTE            30,000,000   Guarantee provided by BOH for the Banca Totta
                  Holdings                                           & Acores bank facility for Bates Portugal JV
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc                USD             2,000,000   Guarantee given to Chase Manhattan Bank
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc               ZAR           Run-off        Guarantee given by plc to PN Barrett Company
                                                      liabilities    (Prop) Ltd
---------------------------------------------------------------------------------------------------------------------
UK/US             CCG plc               USD            Lease         Guarantee given to Landlord of Bates premises
                                                      obligations    at 498 Seventh Avenue
---------------------------------------------------------------------------------------------------------------------
USA               Bates US Holdings     USD                          Guarantee given by Cordiant Compton
                  Inc                                                WW to Niederhoffer, Cross & Zeckhauser
---------------------------------------------------------------------------------------------------------------------
USA               Bates US Holdings     USD                          Guarantee given by Cordiant Compton
                  Inc                                                WW to Orenstein, Musoff & Orenstein
---------------------------------------------------------------------------------------------------------------------
USA               Bates US Holdings     USD             10,000,000   Guarantee given by Cordiant Compton
                  Inc                                                WW to KCIN re lease
---------------------------------------------------------------------------------------------------------------------
Argentina         CCG plc               ARP                610,000   Plc guarantee on behalf of Grandes Pinturerias
                                                                     del Centro SA
---------------------------------------------------------------------------------------------------------------------
Argentina         CCG plc               ARP                500,000   Plc guarantee on behalf of La Nacion
---------------------------------------------------------------------------------------------------------------------
Argentina         CCC plc               ARP              1,500,000   Plc guarantee on behalf of Arte Radiotelevisivo
                                                                     Argentino SA
---------------------------------------------------------------------------------------------------------------------
Argentina         CCG plc               ARP              1,500,000   Plc guarantee on behalf of Television Federal SA
---------------------------------------------------------------------------------------------------------------------
Argentina         Zenith Media          USD              1,500,000   Bank guarantee to Clarin SA
                  Argentina
---------------------------------------------------------------------------------------------------------------------
Belgium           LDV Bates             EUR                 54,291   Bank guarantee given to landlord for rent
---------------------------------------------------------------------------------------------------------------------
Germany           Sholz & Friends       DEM              1,536,000   Bank guarantee given to landlord for rent
---------------------------------------------------------------------------------------------------------------------
Italy             Bates Italia          ITL             44,500,000   Bank guarantees on behalf of Zurigo Assurance
                                                                     (Ex Medical)
---------------------------------------------------------------------------------------------------------------------
Italy             Bates ltalia          ITL            665,000,000   Bank guarantees on behalf of Min Del Lavoro
---------------------------------------------------------------------------------------------------------------------
Italy             Bates ltalia          ITL            175,000,082   Bank guarantees on behalf of Min Dell'Interno
---------------------------------------------------------------------------------------------------------------------
Italy             Bates ltalia          ITL            423,333,000   Bank guarantees on behalf of Regione Lombardia
---------------------------------------------------------------------------------------------------------------------
Italy             Bates ltalia          ITL            250,000,000   Bank guarantees on behalf of Ministero Della
                                                                     Salute
---------------------------------------------------------------------------------------------------------------------
Netherlands       Bates Not Just        EUR                 93,000   Bank guarantee given to landlord for rent
                  Film

                                                          125

<PAGE>

New Zealand       CCG plc               NZD              5,000,000   Plc guarantee provided to TVNZ
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc               GBP                735,712   Bank guarantee given to landlord of Holborn Gate
---------------------------------------------------------------------------------------------------------------------
UK                CCG plc               GBP                207,575   Bank guarantee given to landlord of Clerkenwell
                                                                     Road
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                                          126
<PAGE>

                                   Schedule 10

                        Borrower's Compliance Certificate

                         Form of Compliance Certificate
                      to be issued by an Authorised Officer

HSBC Investment Bank plc
City Place House
55 Basinghall Street
London EC2V 5DU

Attention:   Syndicated Finance Agency

                                                                          [Date]

Dear Sirs

Cordiant  Communications  Group  plc  Loan  Agreement  dated o 2000  for  Credit
Facilities of up to (pound)155,871,146.52 (the "Agreement")

     We refer to the  Agreement  and  deliver  this  Compliance  Certificate  in
     respect of the Four Quarters ended o pursuant to clause 12.1.6(d)  thereof.
     Terms  defined in the  Agreement  shall have the same  meaning when used in
     this  Compliance  Certificate.  We attach a calculation of all the relevant
     items referred to in paragraphs 1 to 5 below.

We confirm:

1    Consolidated EBITDA in respect of the 12 months ended on o was o.

2    Consolidated Net Interest  Expenditure in respect of the 12 months ended on
     o was o.

3    Consolidated Gross Borrowings (calculated on the basis of the average daily
     outstandings during the two consecutive Quarters ending on o) was o.

4    Consolidated Net Worth o was o.

5    Capital Expenditure during the Financial Year ending o was o as at o.

Based on the above,  we certify that,  calculated on the basis set out in clause
13 of the Agreement:

(a)  On o  the  ratio  of  Consolidated  EBITDA  to  Consolidated  Net  Interest
     Expenditure was o.

(b)  On o the ratio of  Consolidated  Gross  Borrowings to  Consolidated  EBITDA
     was o.

Accordingly,  we confirm that the Parent was in compliance with the undertakings
set out in clause 13 on o and in respect of the relevant  periods  ended on such
date.

We also attach a list of our Material  Subsidiaries  as at o , calculated on the
basis set out in the Agreement.

We confirm that no Default has occurred and is  continuing  which is  unremedied
and unwaived  [other than where full details have  previously  been  provided to
you].

For and on behalf of

Cordiant Communications Group plc

-------------------
Finance Director

                                       127
<PAGE>

                                   Schedule 11

                 Form of Guarantee to be given by new Guarantors

                                    [deleted]

                                       128
<PAGE>

                                   Schedule 12

                             Permitted Acquisitions

The acquisitions listed below provided that the total acquisition  consideration
payable  by the  Group in  respect  of such  acquisition  (including  for  these
purposes any deferred  consideration) does not exceed the maximum  consideration
for such  acquisition  contained in the acquisition  agreement as at the date of
this Agreement relating to the acquisition concerned.

<TABLE>
<CAPTION>
<S>                                                           <C>              <C>           <C>
Churchill Group Inc/Churchill Advertising Group Inc                US          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Bates Travel & Tourism Inc (Criterion)                             US          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Konoret AS Reklamebyra                                           Norway        Cash                Put/call option
---------------------------------------------------------------------------------------------------------------------
Not Just Film BV                                              Netherlands      Cash                Put call option
---------------------------------------------------------------------------------------------------------------------
Cronert & Co                                                     Sweden        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Corps 117 & LdV                                                 Belgium        Cash                Put/call option
---------------------------------------------------------------------------------------------------------------------
Interactive Edge Inc                                               US          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Mainostoimisto Sarrka Oy                                        Finland        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Diamond Ad Ltd                                                   Korea         Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
PSD Associates Ltd                                                 UK          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Arcom Group Ltd                                                    UK          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Camarote ZP S.L.                                                 Spain         Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Impressionist International Communications Oy                   Finland        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Interprofil APS (Plan Design)                                   Denmark        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Pack Design AB                                                   Sweden        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Bamber Forsyth Ltd                                                 UK          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Donino White & Parners Inc                                         US          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
CKMP Ltd                                                           UK          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Hermann Beasley Advertising Ltd                                    UK          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Intercom KG                                                     Germany        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Big Island International Pty Ltd                               Australia       Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Ideaworks (Holdings) Pty Ltd                                   Australia       Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Marketforce Ltd                                                Australia       Cash          Earnout & contractual
                                                                               purchase
                                                                               of shares
---------------------------------------------------------------------------------------------------------------------
Professional Public Relations Pty Ltd                          Australia       Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Generator Communications Ltd                               New Zealand         Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Newcomm Bates Comunicacao Integrada Ltda                         Brazil        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
E.S.C. Comunicacion Eisen, San Martin, Camine S.A.L.             Spain         Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Clarion Communications (PR) Ltd                                    UK          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
<S>                                                           <C>              <C>           <C>
---------------------------------------------------------------------------------------------------------------------
Davidson Marketing Inc (Communicator US)                           US          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
The Terpin Group of Companies Inc                                  US          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Sports Producers Hawaii Inc                                        US          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Associates in Architecture & Design Inc                            US          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Propose Two Ltd/Secure Two Ltd (Communicator UK)                   UK          Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Consultants in Pharmacuetical Advertising Espana S.L.            Spain         Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
H.F.T. Group                                                     France        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Microarts Corporation                                              US          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Bulletin International Ltd                                         UK          Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Presentation Communications International Ltd/Ultimate             UK          Stock                       Earnout
Events Ltd
---------------------------------------------------------------------------------------------------------------------
Gallagher & Kelly Public Relations Ltd                          Ireland        Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
Diseno & Gestion S.L.                                            Spain         Cash                Earnout & pull/
                                                                                                       call option
---------------------------------------------------------------------------------------------------------------------
Testardo Public Relations Sp.o.o.                                Poland        Cash                Put/call option
---------------------------------------------------------------------------------------------------------------------
Harrisonhuman (Proprietary) Ltd                               South Africa     Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Schwab & Piquette Communications Inc                             Canada        Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
Antonini & Associati S.r.l./Naviter S.r.l.                       Italy         Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
United Visions Entertainments AG                                Germany        Cash                Put/call option
---------------------------------------------------------------------------------------------------------------------
Verdino Bates S.A. de Publicidad (Fernando Fernandez)          Argentina       Cash                        Earnout
---------------------------------------------------------------------------------------------------------------------
International Business Information Inc                           Japan         Stock                       Earnout
---------------------------------------------------------------------------------------------------------------------
141 France SA                                                    France        Cash                Put/call option
---------------------------------------------------------------------------------------------------------------------
Shelf Company subsidiary of Bates Germany                       Germany        Cash
Werbeagentur GmbH
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                                         130
<PAGE>

                                   Schedule 13

       Preference shares issued by (or to be issued) by Lighthouse and its
                     Subsidiaries as deferred consideration

<TABLE>
<CAPTION>

                                                                  Maximum Deferred
                                                                  Consideration
                                                                  (approximate       Deferred           End Date (on
Jurisdiction       Entity or business acquired   Date             figure)            Consideration      or before
------------       ---------------------------   ----             --------           -------------      ---------

<S>                <C>                           <C>              <C>                <C>                <C>
USA                Leonhardt                     28.10.1999       $4,500,000         6% convertible     3 yrs or 5
                                                                                     preferred stock    yrs from
                                                                                     of Lighthouse      closing

USA                Interiors for                 29.11.1999       $4,000,000         6% convertible     3 yrs or 5
                   Architecture/Associates in                                        preferred stock    yrs from
                   Architecture and Design                                           of Lighthouse      closing

USA                Avid Productions              06.01.2000       $2,000,000         6% convertible     31.12.2000
                                                                                     preferred stock    and
                                                                                     of Lighthouse      31.12.2004

UK                 C&FD                          06.11.2000   (pound)585,000         5850 redeemable    31.12.2004
                                                                                     preference
                                                                                     shares in
                                                                                     Lighthouse
                                                                                     Holdings UK
                                                                                     Limited - can be
                                                                                     exchanged for 6%
                                                                                     convertible
                                                                                     preferred stock
                                                                                     of Lighthouse

USA                Morgen-Walke                  12.01.2000       $5,250,000         6% convertible     31.12.2002
                                                                                     preferred stock    and 31.12.2002
                                                                                     of Lighthouse

USA                Ideascope                     07.02.2000       $ 3,500,000        6% convertible     3 yrs after
                                                                                     preferred stock    closing
                                                                                     of Lighthouse

UK                 Clarion                       10.03.2000 (pound)339,000 plus      9870 preference    31.12.2002
                                                            (pound)987,000 to be     shares in
                                                                   satisfied by      Lighthouse
                                                                   issue of 9870     Holdings UK
                                                                   preference shares Limited - can be
                                                                                     exchanged into
                                                                                     6% convertible
                                                                                     preferred stock
                                                                                     of Lighthouse

USA                Wang                          02.03.2000       $100,000           6% convertible     31.12.2002
                                                                                     preferred stock
                                                                                     of Lighthouse

USA                Fantastic Sports              04.03.1999       $1,675,000 plus    6% convertible     04.03.2004
                                                                  interest           preferred stock
                                                                                     of Lighthouse

USA                Primo Angeli                  25.06.1999       $3,150,000         6% convertible     01.07.2004
                                                                  plus interest      preferred stock
                                                                  and dividends      of Lighthouse

USA                Davidson                      07.07.1999       $3,000,000         6% convertible     31.05.2003
                                                                                     preferred stock
                                                                                     of Lighthouse
</TABLE>

                                      131
<PAGE>
<TABLE>
<CAPTION>

                                                                  Maximum Deferred
                                                                  Consideration
                                                                  (approximate       Deferred           End Date (on
Jurisdiction       Entity or business acquired   Date             figure)            Consideration      or before
------------       ---------------------------   ----             --------           -------------      ---------

<S>                <C>                           <C>              <C>                <C>                <C>
UK                 Financial Dynamics            23.07.1999 (pound)11,200,000        6% convertible     31.12.2002
                                                                                     preferred stock
                                                                                     of Lighthouse

</TABLE>

                                      132
<PAGE>

                                   Schedule 14

                       Non-Bank Cash Pooling Arrangements

Cash Pooling Arrangements in Germany with Deutsche Bank AG and between Scholz &
Friends AG and its Subsidiaries existing at the Restructuring Date which are
incorporated in Germany.

                                        133

<PAGE>

THE PARENT
----------

SIGNED for and on behalf of                           )
CORDIANT COMMUNICATIONS                               )
GROUP PLC                                             )
by:                                                   )

THE ORIGINAL BORROWERS
----------------------

SIGNED for and on behalf of                           )
CORDIANT COMMUNICATIONS                               )
GROUP PLC                                             )
by:                                                   )

SIGNED for and on behalf of                           )
BATES UK LIMITED                                      )
by:                                                   )

SIGNED for and on behalf of                           )
BATES US HOLDINGS INC.                                )
by:                                                   )

SIGNED for and on behalf of                           )
BATES DEUTSCHLAND                                     )
HOLDINGS GMBH                                         )
by:                                                   )

THE ORIGINAL OVERDRAFT BORROWERS
--------------------------------

SIGNED for and on behalf of                           )
ATLAS ADVERTISiNG LIMITED                             )
by:                                                   )

SIGNED for and on behalf of                           )
BATES EUROPE LIMITED                                  )
by:                                                   )

SIGNED for and on behalf of                           )
BATES OVERSEAS HOLDINGS                               )
LIMITED by:                                           )

SIGNED for and on behalf of                           )
BATES UK LIMITED                                      )
by:                                                   )

SIGNED for and on behalf of                           )
CORDIANT COMMUNICATIONS                               )
GROUP PLC                                             )
by:                                                   )

                                       134

<PAGE>
SIGNED for and on behalf of                           )
CORDIANT GROUP LIMITED                                )
by:                                                   )

SIGNED for and on behalf of                           )

CORDIANT PROPERTY HOLDINGS                            )
LIMITED by:                                           )

SIGNED for and on behalf of                           )
ICM INTERNATIONAL LIMITED                             )
by:                                                   )

SIGNED for and on behalf of                           )
SWOT PLUS LIMITED                                     )
by:                                                   )

SIGNED for and on behalf of                           )
THE DECISION SHOP LIMITED                             )
LIMITED by:                                           )

SIGNED for and on behalf of                           )
XMSS LIMITED                                          )
by:                                                   )

THE SWINGLINE BORROWER
----------------------

SIGNED for and on behalf of                           )
BATES US HOLDINGS INC.                                )
by:                                                   )

THE ARRANGERS
-------------

SIGNED for and on behalf of                           )
THE BANK OF NEW YORK                                  )
by:                                                   )

SIGNED for and on behalf of                           )
HSBC INVESTMENT BANK PLC                              )
by:                                                   )

THE BANKS
---------

SIGNED for and on behalf of                           )
THE BANK OF NEW YORK                                  )
by:                                                   )

                                       135

<PAGE>

SIGNED for and on behalf of                           )
HSBC BANK PLC                                         )
by:                                                   )

THE AGENT SECURITY TRUSTEE AND COMMON SECURITY TRUSTEE
------------------------------------------------------

SIGNED for and on behalf of                           )
HSBC INVESTMENT BANK PLC                              )
by:                                                   )

THE SWINGLINE BANK
------------------

SIGNED for and on behalf of                           )
THE BANK OF NEWYORK                                   )
by:                                                   )

THE OVERDRAFT BANK
------------------

SIGNED for and on behalf of                           )
HSBC BANK PLC                                         )
by:                                                   )

                                      136

<PAGE>

<TABLE>
<CAPTION>

The Parent

<S>                                                                    <C>
EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT COMMUNICATIONS GROUP PLC                                   )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams

The Original Borrowers

EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT COMMUNICATIONS GROUP PLC                                   )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by BATES UK LIMITED

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT US HOLDINGS, INC.                                          )
                                                                         Michael. J. Kopcsak
                                                                         Vice President
                                                                         Authorised Signatory
EXECUTED and DELIVERED as a DEED                                       )
by Uloma Adighibe as attorney of                                       )
BATES DEUTSCHLAND HOLDINGS GMBH                                        )
in the exercise of a power of attorney                                 )
in the presence of Orla MacSherry                                      )
                                                                           Attorney Uloma Adighibe

                                                                           Witness Oria MacSherry

The Swingline Borrower

EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT US HOLDINGS, INC.                                          )
                                                                           Art D'Angelo
</TABLE>

                                      30

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                  <C>
The Overdraft Borrowers

EXECUTED and DELIVERED as a DEED                                      )
by ATLAS ADVERTISING LIMITED                                          )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                     )
by BATES OVERSEAS HOLDINGS LIMITED                                   )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                     )
by BATES UK LIMITED                                                  )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED
by CORDIANT COMMUNICATIONS GROUP PLC
                                                                      )
                                                                      )
                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                      )
by CORDIANT GROUP LIMITED                                             )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                      )
by CORDIANT PROPERTY HOLDINGS LIMITED                                 )

                                                                         Director Andrew Boland

                                                                         Director/Secretary Denise Williams
</TABLE>

                                      31

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                    <C>
EXECUTED and DELIVERED as a DEED                                       )
by ICM INTERNATIONAL LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by SWOT PLUS LIMITED                                                   )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by THE DECISION SHOP LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by XMSS LIMITED                                                        )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

The Original Guarantors

EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT COMMUNICATIONS GROUP PLC                                   )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by BATES EUROPE LIMITED                                                )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by BATES UK LIMITED                                                    )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

</TABLE>

                                      32

<PAGE>
<TABLE>
<CAPTION>
<S>                                                                   <C>

EXECUTED and DELIVERED as a DEED                                       )
by ATLAS ADVERTISING LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by THE DECISION SHOP LIMITED                                           )
                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by ICM INTERNATIONAL LIMITED                                           )
                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT US HOLDINGS, INC.                                          )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                       )
by BATES ADVERTISING USA, INC.                                         )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                       )
by BATES CHURCHILL PUBLIC RELATIONS, INC.                              )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                       )
by BATES CHURCHILL ADVERTISING, INC.                                   )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory
</TABLE>

                                      33
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                   <C>

EXECUTED and DELIVERED as a DEED                                      )
by BATES WORLDWIDE                                                    )
(DELAWARE), INC.                                                      )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by CCG.XM, INC.                                                       )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by HEALTHWORLD CORPORATION                                            )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by BATES HEALTHWORLD, INC.                                            )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by FALK HEALTHWORLD, INC.                                             )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by LIGHTHOUSE GLOBAL NETWORK, INC.                                    )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by FITCH, INC.                                                        )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory

EXECUTED and DELIVERED as a DEED                                      )
by MORGEN WALKE ASSOCIATES INC                                        )
                                                                          Michael. J. Kopcsak
                                                                          Vice President
                                                                          Authorised Signatory
</TABLE>

                                      34

<PAGE>
<TABLE>
<CAPTION>
<S>                                                                   <C>

EXECUTED and DELIVERED as a DEED                                       )
by Uloma Adighibe as attorney of                                       )
BATES DEUTSCHLAND HOLDINGS GMBH                                        )
in the exercise of a power of attorney                                 )
in the presence of Orla Macsherry                                      )

                                                                          Attorney Uloma Adighibe

                                                                          Witness Orla Macsherry

EXECUTED and DELIVERED as a DEED                                       )
by Denise Williams as attorney of                                      )
CORDIANT COMMUNICATIONS GROUP                                          )
AUSTRALIA PTY LIMITED                                                  )
in the exercise of a power of attorney                                 )
in the presence of Orla Macsherry                                      )
                                                                          Attorney Denise Williams

                                                                          Witness Orla Macsherry

The Overdraft Guarantors

EXECUTED and DELIVERED as a DEED                                       )
by ATLAS ADVERTISING LIMITED                                           )
                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by BATES OVERSEAS HOLDINGS LIMITED                                     )
                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by BATES UK LIMITED                                                    )
                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by CORDIANT COMMUNICATIONS GROUP PLC                                    )
                                                                          Director Andrew Boiand

                                                                          Director/Secretary Denise Williams
</TABLE>
                                      35

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                    <C>
EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT GROUP LIMITED                                              )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT PROPERTY HOLDINGS LIMITED                                  )
                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by ICM INTERNATIONAL LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by SWOT PLUS LIMITED                                                   )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by THE DECISION SHOP LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by XMSS LIMITED                                                        )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by HEALTH WORLD HOLDINGS LIMITED                                       )

</TABLE>

                                      36

<PAGE>
<TABLE>
<CAPTION>
<S>                                                                    <C>

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by MILTON MARKETING GROUP LIMITED                                      )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by FITCH DESIGN CONSULTANTS LIMITED                                    )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by FINANCIAL DYNAMICS LIMITED                                          )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CONNECT SIX LIMITED                                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CONNECT FIVE LIMITED                                                )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CLARION COMMUNICATIONS (PR) LIMITED                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
                                      37

<PAGE>

EXECUTED and DELIVERED as a DEED                                       )
by CORPORATE AND FINANCIAL DESIGN LIMITED                              )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by HEADCOUNT WORLDWIDE FIELD MARKETING                                 )
LIMITED                                                                )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by COLWOOD HEALTH WORLD LIMITED                                        )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by BATES HEALTHWORLD LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by MILTON MARKETING LIMITED                                            )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by FINANCIAL DYNAMICS HOLDINGS LIMITED                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by LIGHTHOUSE HOLDINGS (UK) LIMITED                                     )

                                                                          Director Andrew Botand
</TABLE>
                                      38

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                    <C>
                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by PSD ASSOCIATES LIMITED                                              )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by SCHOLZ & FRIENDS LONDON LIMITED                                     )

                                                                          Director Steven Wilson

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by N.A.S.A.2.0 LONDON LIMITED                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                        )
by CCG.XM                                                               )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by CCG.XM HOLDINGS LIMITED                                              )
                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by BAMBER FORSYTH LIMITED                                               )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                        )
by BULLETIN INTERNATIONAL LIMITED                                       )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams
</TABLE>

                                      39

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                     <C>
EXECUTED and DELIVERED as a DEED                                        )
by BULLETIN INTERNATIONAL UK LIMITED                                    )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by PCI LIVE DESIGN LIMITED                                              )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by ULTIMATE EVENTS LIMITED                                              )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                        )
by BUSINESS COMMUNICATIONS INTERNATIONAL                                )
GROUP LIMITED                                                           )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                        )
by FITCH WORLDWIDE LIMITED                                              )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

The Additional Overdraft Borrowers

EXECUTED and DELIVERED as a DEED                                       )
by HEALTHWORLD HOLDINGS LIMITED                                        )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by MILTON MARKETING GROUP LIMITED                                      )
</TABLE>
                                      40

<PAGE>
<TABLE>
<CAPTION>
<S>                                                                    <C>
                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by HEADCOUNT WORLDWIDE                                                 )
FIELD MARKETING GROUP LIMITED                                          )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by COLWOOD HEALTHWORLD LIMITED                                         )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by BATES HEALTHWORLD LIMITED                                           )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by MILTON MARKETING LIMITED                                            )
                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by FINANCIAL DYNAMICS HOLDINGS LIMITED                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
</TABLE>
                                      41

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                    <C>
by LIGHTHOUSE HOLDINGS (UK) LIMITED                                    )
                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by FITCH DESIGN CONSULTANTS LIMITED                                    )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by FINANCIAL DYNAMICS LIMITED                                          )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by CONNECT SIX LIMITED                                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by CONNECT FIVE LIMITED                                                )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by CLARION COMMUNICATIONS (PR) LIMITED                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by PSD ASSOCIATES LIMITED                                              )

                                                                           Director Andrew Boland
</TABLE>
                                      42

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                    <C>
                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by SCHOLZ & FRIENDS LONDON LIMITED                                     )

                                                                          Director Steven Wilson

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by N.A.S.A.2.0 LONDON LIMITED                                          )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CCG.M                                                               )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CCG.XM HOLDINGS LIMITED                                             )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by BAMBER FORSYTH LIMITED                                              )

                                                                          Director Andrew Boland

                                                                          DirectorlSecretary Denise Williams

EXECUTED and DELIVERED as a DEED                                      )
by CORPORATE AND FINANCIAL DESIGN LIMITED                             )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                      )
by BATES EUROPE UMITED                                                )
                                                                           Director Andrew Boland

</TABLE>

                                      43

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                   <C>
                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                      )
by BULLETIN INTERNATIONAL LIMITED                                     )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by BULLETIN INTERNATIONAL (UK) UMITED                                  )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by PCI LIVE DESIGN LIMITED                                             )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by BUSINESS COMMUNICATiONS INTERNATIONAL                               )
GROUP LIMITED                                                          )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by FITCH WORLDWIDE LIMITED                                             )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by CORDIANT (US) HOLDINGS LIMITED                                      )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                       )
by FITCH INTERNATIONAL LIMITED                                         )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
</TABLE>
                                      44

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                    <C>
EXECUTED and DELIVERED as a DEED                                       )
by FITCH LIMITED                                                       )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by HEALTHWORLD UK HOLDINGS LIMITED                                     )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by GARROTT DORLAND CRAWFORD                                            )
HOLDINGS LIMITED                                                       )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by DECKCHAIR STUDIOS LIMITED                                           )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by TED BATES HOLDINGS LIMITED                                          )

                                                                           Director Andrew Boland

                                                                           Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                       )
by C&FD (HOLDINGS LIMITED)                                             )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                      )
by CORDIANT OVERSEAS HOLDINGS LIMITED                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
</TABLE>
                                      45

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                  <C>
EXECUTED and DELIVERED as a DEED                                     )
by PROPOSE TWO LIMITED                                               )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                     )
by SECURE TWO LIMITED                                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                     )
by SONIC SUN LIMITED                                                 )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

EXECUTED and DELIVERED as a DEED                                     )
by CCG.XM (UK) LIMITED                                               )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams
EXECUTED and DELIVERED as a DEED                                     )
by CONNECT ONE LIMITED                                               )

                                                                          Director Andrew Boland

                                                                          Director/Secretary Denise Williams

The Arrangers

EXECUTED for an on behalf of                                         )
THE BANK OF NEW YORK                                                 )   Gerry Dorkin

EXECUTED for an on behalf of                                         )
HSBC INVESTMENT BANK PLC                                             )   Andy Smith

The Banks

EXECUTED for an on behalf of                                         )
HSBC BANK PLC                                                        )   Gary Lee

EXECUTED for an on behalf of                                         )
THE BANK OF NEW YORK                                                 )   Gerry Dorkin

</TABLE>
                                      -46-

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                 <C>
EXECUTED for an on behalf of                                        )
ABN AMRO BANK N.V., LONDON BRANCH                                   )    Kim Slater

EXECUTED for an on behalf of                                        )
ALLIED IRISH BANKS, PLC                                             )    Michael Barry

EXECUTED for an on behalf of                                        )
BANK OF SCOTLAND                                                    )    Allan Ramsay

EXECUTED for an on behalf of                                        )
BANQUE WORMS                                                        )    Andy Smith

EXECUTED for an on behalf of                                        )
CITIBANK, N.A.                                                      )     Gian Paolo Potsios

EXECUTED for an on behalf of                                        )
FLEET NATIONAL BANK                                                 )    Stuary Paterson

EXECUTED for an on behalf of                                        )
MIZUHO CORPORATE BANK, LTD                                          )    Yuki Yuza                    Karen Latto

EXECUTED for an on behalf of                                        )
LLOYDS TSB BANK PLC                                                 )    Mike Cattermole

EXECUTED for an on behalf of                                        )
by THE ROYAL BANK OF SCOTLAND PLC                                   )     Ian Roberts

EXECUTED for an on behalf of                                        )
SCOTIABANK EUROPE PLC                                               )    Lorraine Ruckstuhl

EXECUTED for an on behalf of                                        )
WESTDEUTSCHE LANDESBANK GIROZENTRALE                                )    Katrina Weston

The Agent, Security Trustee and Common Security Trustee

EXECUTED for an on behalf of                                        )
HSBC INVESTMENT BANK PLC                                            )     Andy Smith

The Swingline Bank

EXECUTED for an on behalf of                                        )
THE BANK OF NEW YORK                                                )    Gerry Dorkin
</TABLE>

                                      -47-

<PAGE>
<TABLE>
<CAPTION>
<S>                                                                  <C>

The Overdraft Bank

EXECUTED for an on behalf of                                         )
by HSBC BANK PLC                                                     )    Gary Lee

</TABLE>

                                           -48-Exhibit 4.2

                               DATE 28 March 2002
                               ------------------

                        CORDIANT COMMUNICATIONS GROUP PLC

                            THE BANK OF NEW YORK and
                            HSBC INVESTMENT BANK PLC
                                 (as Arrangers)

                            HSBC INVESTMENT BANK PLC
                         (as Agent and Security Trustee)

                      THE BANKS AND FINANCIAL INSTITUTIONS

                              THE BANK OF NEW YORK
                               (as Swingline Bank)

                                  HSBC BANK PLC
                               (as Overdraft Bank)

                             CORDLANT FINANCE, INC.
                 (as Issuer under the Note Purchase Agreements)

                                 THE NOTEHOLDERS

                                    AGREEMENT

                                Bingham Dana LLP
                                     London
<PAGE>

                                    AGREEMENT
DATE               28 March                                                2002

PARTIES

1    CORDIANT COMMUNICATIONS GROUP PLC as the Parent (the "Parent"),  for itself
     and for and on behalf of the companies whose names,  registered numbers (if
     any) and registered offices are set out in Part A of Schedule 1 as Original
     Borrowers;   the  company  whose  name,  registered  number  (if  any)  and
     registered  office  are set out in Part B of  Schedule  1 as the  Swingline
     Borrower;  the  companies  whose  names,  registered  numbers  (if any) and
     registered  offices  are set out in Part C of  Schedule 1 as the  Overdraft
     Borrowers; the companies whose names are set out in Part A of Schedule 2 as
     the Original  Guarantors  under the  Syndicated  Loan Agreement (as defined
     below) and Subsidiary Guarantors in respect of the Note Purchase Agreements
     (as defined below); the companies whose names,  registered numbers (if any)
     and registered offices are set out in Part B of Schedule 2 as the Overdraft
     Guarantors;  and the companies whose names, registered numbers (if any) and
     registered  offices are set out in Schedule 3 as the  Additional  Overdraft
     Borrowers;

2    THE BANK OF NEW YORK and HSBC  INVESTMENT  BANK PLC as Arrangers  under the
     Syndicated Loan Agreement;

3    HSBC INVESTMENT BANK PLC as Agent and Security Trustee under the Syndicated
     Loan Agreement;

4    THE BANKS AND FINANCIAL  INSTITUTIONS whose names are set out in Schedule 4
     as the Banks under the Syndicated Loan Agreement;

5    THE  BANK OF NEW YORK as the  Swingline  Bank  under  the  Syndicated  Loan
     Agreement;

6    HSBC BANK PLC as the Overdraft Bank under the Syndicated Loan Agreement;

7    CORDIAINT FINANCE, INC. as Issuer under the Note Purchase Agreements;

8    THE INSTITUTIONS whose names are set out in Schedule 5 as Noteholders.

RECITALS

A    This Agreement relates to:

     (1)  an  Agreement  dated 4 July 2000 made  between  certain of the parties
          hereto  and  referred  to  herein  whereby  the  Banks  agreed to make
          available  to  the  Parent  and  the  Borrowers  facilities  of  up to
          US$400,000,000  upon the terms and subject to the  conditions  therein
          contained (as amended,  the "Syndicated Loan Agreement") and to a deed
          dated 30 August 2000 made between  such  parties  whereby the Security
          Trustee  agreed to hold the benefit of certain  security  documents on
          trust for the named beneficiaries (the "Security Trust Deed"); and

     (2)  the separate Note Purchase  Agreements  dated as of April 5, 2001 made
          between the Issuer,  the Parent as Parent Guarantor and the purchasers
          identified  therein  (collectively,  the "Note Purchase  Agreements"),
          pursuant to which the Issuer issued and sold $175,000,000 in aggregate
          principal amount of its 7.61% Guaranteed Senior

<PAGE>

          Notes due 2011 (as defined therein the "Notes"); the Noteholders being
          the current  holders of the existing Notes.

B    The Parties have entered into this Agreement to record:

     (1)  the waivers, upon and subject to the terms and conditions, and for the
          period, set out herein, of certain  anticipated  breaches of covenants
          and events of default (howsoever  described) under the Syndicated Loan
          Agreement and/or the Note Purchase Agreements; and

     (2)  their  agreements  in  principle  with  respect  to  certain  proposed
          amendments to the Syndicated Loan  Agreement,  the Security Trust Deed
          and the Note Purchase Agreements.

AGREEMENT

1    Definitions and interpretation

     Reference  is made to the Term Sheets  attached  hereto as Exhibit "A" (the
     "Banks'  Term  Sheet"),  Exhibit "B" (the  "Noteholders'  Term  Sheet") and
     Exhibit  "C"  (the   "Intercreditor   Term  Sheet")  (the  "Term  Sheets").
     Capitalised  terms used and not  defined in this  Agreement  shall have the
     meanings ascribed to them in the Term Sheets, the Note Purchase  Agreements
     or the Syndicated Loan Agreement,  save as specifically  provided herein or
     as the context may otherwise require.

2    Waivers

     Upon and  subject to the terms of this  Agreement,  for the period from the
     date of this  Agreement  until 5.00 p.m.  London time on 15 May,  2002 (the
     "Waiver Scheduled Termination Date"):

     2.1  each Bank hereby  waives  (the "Bank  Waiver")  each  Default and each
          Event of Default  (however  described) which may be constituted by the
          failure  of the  Parent  to  comply  with all or any of the  covenants
          contained in Clause 13.1(a) (Net Interest Cover) and 13.1(b)  (Maximum
          Gross  Debt:  Adjusted  PBIT) on 31  December  2001,  upon terms that,
          unless otherwise agreed by the Majority Banks or as otherwise provided
          in  clause  4, no  drawings  or  utilisations  may be made  under  the
          Syndicated  Loan  Agreement,   other  than  the  rolling  of  existing
          advances, prior to the time the definitive agreements for the Proposed
          Amendments  (as defined  below) and the  Intercreditor  Agreement  are
          entered  into (and the  Parent on behalf of itself  and the  Borrowers
          confirms that no such drawings or utilisations will be made); and

     2.2  each  Noteholder  hereby  waives (the "Note  Agreement  Waiver")  each
          Default and Event of Default  constituted by the failure of the Parent
          to comply  with  paragraphs  (a)  (ratio of EDIT to  Consolidated  Net
          Interest  Expenditure)  and  (b)  (Consolidated  Gross  Borrowings  to
          Adjusted  EBITDA) of Section 10.3 of each Note  Purchase  Agreement in
          respect of the period of two Fiscal  Half-Years ended 31 December 2001
          and for any periods after 31 December  2001 and until the  Termination
          Date;

     provided that the Note Agreement Waiver and the Bank Waiver shall terminate
     at the  earliest  of (the  "Termination  Date"):  (a) the Waiver  Scheduled
     Termination  Date;  or (b) the  occurrence  or existence of any  non-waived
     Event of Default (howsoever described) (including, without limitation, as a
     result of the  failure  of the  Parent to pay all  accrued  and  previously
     unpaid  interest  on the Notes and under  the  Syndicated  Loan  Agreement)
     subject to

<PAGE>

     the  waiver  requirements  under  the  Note  Purchase  Agreements  and  the
     Syndicated Loan Agreement respectively or (c) the occurrence of an event of
     default  under or in respect of the Interim New Money  Facility (as defined
     in clause 4 of this Agreement) whether in respect of any covenant,  payment
     or security therefor.

3    Proposed amendments etc.

     3.1  Subject to the terms of this Agreement and the Term Sheets:

          3.1.1     the  Parent  and the  Finance  Parties  (as  defined  in the
                    Syndicated Loan  Agreement)  agree in principle to amend the
                    Syndicated  Loan Agreement in accordance  with the terms set
                    out in the Banks' Term Sheet and the Noteholders  consent in
                    principle to such amendments;

          3.1.2     the  Parent,   the  Issuer  and  the  Noteholders  agree  in
                    principle  to  amend  the  Note   Purchase   Agreements   in
                    accordance with the terms set out in the  Noteholders'  Term
                    Sheet and the Finance  Parties  consent in principle to such
                    amendments; and

          3.1.3     the  Parent,   the  Issuer,  the  Finance  Parties  and  the
                    Noteholders  agree in principle  to enter into,  and, in the
                    case of the  Parent,  to  procure  that all other  Obligors,
                    Subsidiary  Guarantors  and other  relevant  members  of the
                    Group enter into, an Intercreditor  Agreement upon the terms
                    set out in the lntercreditor Term Sheet.

     3.2  The agreement of each party to consent to the proposed amendments (the
          "Proposed  Amendments")  and the  entering  into of the  Intercreditor
          Agreement described in Clause 3.1 above are expressly conditional upon
          the following:

          3.2.1     the payment by the Parent to each Noteholder and Bank of the
                    fees  referred  to in the Term  Sheets and  expressed  to be
                    payable  on  execution  of  the  agreements  evidencing  the
                    Proposed Amendments;

          3.2.2     the  payment  by the  Parent  of all  professional  fees and
                    expenses  referred  to in the Term Sheets (it is agreed that
                    the  obligations  of the Parent in  respect of  professional
                    fees and  expenses  shall  survive any  termination  of this
                    Agreement or the Note Agreement  Waiver or the Bank Waiver);
                    and

          3.2.3     all  of the  conditions  precedent  set  forth  in the  Term
                    Sheets.

     3.3  Each of the Finance Parties and the  Noteholders  confirms that it has
          the requisite authority for the amendments and agreements contemplated
          by  the  Banks'  Term  Sheet  or  the  Noteholders'   Term  Sheet  (as
          applicable) and the Intercreditor Term Sheet.

     3.4  The parties  will use all  reasonable  endeavours  to procure that the
          Syndicated  Loan  Agreement as amended in  accordance  with the Banks'
          Term Sheet, the Note Purchase Agreements as amended in accordance with
          the Noteholders' Term Sheet and the Intercreditor  Agreement described
          in clause  3.1, in form and  substance  mutually  satisfactory  to all
          parties  acting in good faith,  are  entered  into not later than 5.00
          p.m. (London time) on Friday 19 April,  2002 for the purpose of giving
          effect to the Term Sheets.

<PAGE>

4    Interim New Money Facility

     4.1  The Banks and the Parent  will,  by 5:00pm on  Thursday 4 April  2002,
          enter  into  an   agreement   whereby   the  Banks  will  lend  up  to
          (pound)20,000,000 (the "Interim New Money Facility") to the Parent for
          the  period  from 5 to 19  April  2002.  The  loan  will  be on  terms
          acceptable  to the Banks,  which will be  consistent  in all  material
          respects  with the terms of the  facility  outlined in the Banks' Term
          Sheet.  The loan will have  priority  over the Old Money and the Notes
          and will be secured by a composite  guarantee and  debenture  from the
          Parent and its principal UK subsidiaries. Such guarantee and debenture
          shall be treated as New Security under the Intercreditor Agreement, as
          outlined in the Intercreditor Term Sheet.

     4.2  Notwithstanding  anything to the contrary,  the Banks will irrevocably
          agree in writing with the Parent and the Noteholders to consent to the
          appointment of an administrator of any of the Parent and its principal
          UK subsidiaries  concerned,  to procure that any receiver appointed by
          the Banks shall resign office upon the appointment of an administrator
          and to give at least two  business  days prior  written  notice to the
          Parent and the Noteholders of their intention to appoint a receiver.

     4.3  Upon amendment of the Syndicated Loan Agreement in accordance with the
          terms of the Bank's Term Sheet,  the Interim New Money  Facility shall
          terminate and all outstanding  amounts  thereunder shall be refinanced
          under the  Syndicated  Loan Agreement as so amended and treated in all
          respects as New Money under the lntercreditor Agreement.

     4.4  The Parent  represents  and  warrants  that entry into the Interim New
          Money Facility and the borrowing of loans in an aggregate amount of up
          to (pound)20,000,000  thereunder shall not cause a Default or Event of
          Default under the Note Purchase  Agreement  after giving effect to the
          waivers set forth in Clause 2 of this  Agreement.  The Parent shall be
          deemed to repeat the  representations  and  warranties  on the date of
          borrowing of any loan under the Interim New Money  Facility and breach
          of such  representations and warranties shall be deemed to be an Event
          of Default under the Note Purchase Agreement.

5    Representations and Warranties

     5.1  The Parent hereby  represents and warrants to each of the  Noteholders
          and the Banks (collectively, the "Institutions") as follows:

          5.1.1     the Parent and the Issuer have the full corporate  power and
                    authority  to enter  into  this  Agreement  and to amend the
                    Syndicated  Loan  Agreement  and the Existing  Note Purchase
                    Agreements, to enter into the Intercreditor Agreement and to
                    grant security as contemplated by the Term Sheets,  and this
                    Agreement,  the Intercreditor  Agreement and such amendments
                    pursuant to the Term Sheets have been duly authorized by all
                    necessary corporate action on the part of the Parent and the
                    Issuer;

          5.1.2     the entry into and performance of:

                    (a)  this Agreement,

                    (b)  the Syndicated Loan Agreement as amended,

                    (c)  the Amended and Restated Note Purchase Agreement,

<PAGE>

                    (d)  the Intercreditor Agreement, and

                    (e)  the guarantee and security  documents  contemplated  by
                         the Term Sheets,

                    by the Parent or any Obligor or any  Subsidiary  required to
                    be a guarantor  pursuant  to the Term Sheets (a  "Subsidiary
                    Guarantor")  and the Issuer  does not and will not  conflict
                    with: (i) any law or regulation  applicable to them, or (ii)
                    any agreement or instrument  binding upon them or any member
                    of the Group;

          5.1.3     all factual statements contained in the Information Package,
                    as  defined  below,  (excluding  any  financial  projections
                    contained  therein) were, as at their respective dates, true
                    and  accurate in all  material  respects and did not contain
                    any untrue  statement of a material  fact or (to the best of
                    the  knowledge of the directors of the Parent) omit to state
                    a fact necessary in order to make the  statements  contained
                    therein not misleading in any material respect; and

          5.1.4     all  financial  projections  which have been prepared by the
                    Parent (or on its behalf) and  contained in the  Information
                    Package  have been  prepared  in good  faith and based  upon
                    assumptions  which were  reasonable at the time prepared and
                    at the time made available to any Finance Party.

     5.2  For the purpose of this Clause 5, "Information Package" means:

          (a)  The Information Disclosure for Lenders (14 December 2001);

          (b)  The KPMG Accountants Report;

          (c)  The Financial Model;

          (d)  The Group Structure Charts dated 31 Jan 2002;

          (e)  The Guarantor Coverage Analysis dated 31 Jan 2002;

          (f)  The Acquisition Earn out Analysis dated 4 Feb 2002;

          (g)  The Customer Memorandum dated 31 Jan 2002; and

          (h)  The presentation  documentation  provided by the Company with its
               presentation on or about 19 March 2002.

6    Miscellaneous

     6.1  This  Agreement  and the Term Sheets maybe  amended,  or any provision
          hereof or thereof may be waived,  with the  agreement  of all affected
          parties hereto.

     6.2  In  furtherance  of the  provisions  hereof,  any  termination  of, or
          failure to satisfy any of the conditions  precedent set forth in, this
          Agreement shall not impair the  effectiveness of any of the Syndicated
          Loan  Agreement,  the Note  Purchase  Agreements,  the  Notes  and the
          Security Trust Deed (it being the intention of the parties hereto that
          such agreements and instruments remain in full force and effect in all
          respects under such circumstances).

     6.3  Except  as  expressly  set forth in  Clause  2, the  delivery  of this
          Agreement shall not constitute a waiver of any right,  power or remedy
          of any  Institution  under the Syndicated  Loan Agreement and the Note
          Purchase Agreements and such agreements shall remain in full force and
          effect and are hereby ratified and confirmed.

     6.4  After  the  Termination  Date  nothing  in  this  Agreement  shall  be
          construed  as a waiver of any  Default or Event of  Default  under the
          Note Purchase  Agreements or the  Syndicated  Loan  Agreement and each
          Institution  shall be entitled to exercise any remedy available to it,
          whether under the Note Purchase Agreements,  the Notes, the Syndicated
          Loan Agreement or

<PAGE>

          otherwise,  in respect of any Event of Default which occurred prior to
          or after the  Termination  Date.  For the  avoidance  of  doubt,  upon
          execution and delivery of the definitive  agreements  implementing the
          Proposed  Amendments and the Intercreditor  Agreement,  this Agreement
          shall cease to have any effect.

     6.5  This Agreement shall be construed and enforced in accordance with, and
          the rights of the parties  shall be governed by,  English law (without
          regard to principles of conflicts of law).  The courts of England have
          non-exclusive jurisdiction in relation to any claim or dispute arising
          out of or in connection with this Agreement.

     6.6  This  Agreement  may be executed in any number of  identical  separate
          counterparts,  each of  which  for all  purposes  shall be  deemed  an
          original but all of which shall constitute collectively one Agreement.

     6.7  The parties do not intend that this Agreement should create any rights
          which are enforceable by any person who is not a party,  whether under
          the Contracts  (Rights of Third  Parties) Act 1999 or otherwise,  save
          that the  provisions  of  clause 2 shall be  enforceable  by the other
          Obligors  and  Subsidiary  Guarantors  referred  to in  item  1 of the
          parties hereto.

This Agreement shall become effective when executed and delivered by the Parent,
the Issuer, the Arrangers, the Agent, each Bank and each Noteholder.

                            [Signature pages follow]

<PAGE>

                        CORDIANT COMMUNICATIONS GROUP PLC

By:  Arthur D'Angelo
     Name:  Arthur D'Angelo
     Title: Director

CORDIANT FINANCE, INC.

By:   Arthur D'Angelo
      Name: Arthur D'Angelo
      Title: Director and Officer

HSBC INVESTMENT BANK PLC
(individually and as Arranger, Agent and Security Trustee)

By:   A. P. Smith
      Name:  Andrew P. Smith
      Title: Director

THE BANK OF NEW YORK
(individually and as Arranger and Swingline Bank)

By:   G. Dorkin
      Name: Gerry Dorkin
      Title: Vice President

ABN AMRO BANK N.V., LONDON BRANCH

By:   S.J. Hamilton                                Kim Slater
      Name:  S.J. Hamilton                         C.K. Slater
      Title: Vice President                        Assistant Vice President

ALLIED IRISH BANK PLC

By:   Kieran O'Driscoll                            Sonya Iovieno
      Name:  Kieran O'Driscoll                     Sonya Iovieno
      Title: Senior Relationship Manager           Relationship Manager

<PAGE>

BANK OF SCOTLAND

By:   Jerry Perritt
      Name:  Jerry Perritt
      Title: Director of Corporate Banking

BANQUE WORMS

By:   M. Messager                                  P. Eygonnet
      Name:  M Messager                            Pierre Eygonnet
      Title:

CITIBANK, N.A.

By:   Julio Ojea Quintana
      Name:  Julio Ojea Quintana
      Title: Director

DAI-ICHI KANGYO BANK, LTD

By:   O. Suzuki                                    Karen Latto
      Name: Osamu Suzuki                           Karen Latto
      Title: Senior Manager                        Manager

FLEET NATIONAL BANK

By:   P. D. Rivers
      Name: Paul D. Rivers
      Title: Managing Director

THE FUJI BANK, LIMITED

By:   R. Allen
      Name:  Richard Allen
      Title: Assistant General Manager

<PAGE>

LLOYDS TSB BANK PLC

By:   Stewart John Taylor
      Name:  Stewart John Taylor
      Title: Regional Head of Business Support, London and South East and
             credit services.

THE ROYAL BANK OF SCOTLAND PLC

By:   A.S. Hewish
      Name:  Annette Hewish
      Title: Relationship Manager

SCOTIABANK EUROPE PLC

By:   James Forward
      Name: James Forward
      Title: Director Media, Leisure, Communications

WESTDEUTSCHE LANDESBANK GIROZENTRALE

By:   Ian Anderson                                 Chris Greaves
      Name: Ian Anderson                           Christopher Greaves
      Title: Executive Director                    Director

HSBC BANK PLC
(individually and as Overdraft Bank)

By:   A.O. Thomas
      Name: A.O. Thomas
      Title: European Head, TMT

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By:   Marie Fioramonti
      Name: Marie Fioramonti
      Title: Managing Director

<PAGE>

HARTFORD LIFE INSURANCE  COMPANY
By:  Prudential Private Placement Investors, L.P., as Investment Advisor
By:  Prudential Private Placement Investors, Inc,, General Partner

By:   Marie Fioramonti
      Name: Marie Fioramonti
      Title: Managing Director

HARTFORD LIFE INSURANCE COMPANY
By:  HARTFORD INVESTMENT SERVICES, INC.
     Its Agent and Attorney-in-Fact

By:   Betsy Roberts
      Name:  Betsy Roberts
      Title: Senior Vice President

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

By:   Marie Fioramonti
      Name:  Marie Fioramonti
      Title: Managing Director

PRUCO LIFE INSURANCE COMPANY

By:   Marie Fioramonti
      Name:  Marie Fioramonti
      Title: Managing Director

USG ANNUITY & LIFE COMPANY

By:   Fred C. Smith
      Name: Fred C. Smith
      Title: Executive Vice President

EQUITABLE LIFE INSURANCE COMPANY OF IOWA

<PAGE>

By:   Fred C. Smith
      Name: Fred C. Smith
      Title: Executive Vice President

GOLDEN AMERICAN LIFE INSURANCE COMPANY

By:   Fred C. Smith
      Name:  Fred C. Smith
      Title: Executive Vice President

RELIASTAR LIFE INSURANCE COMPANY

By:   Fred C. Smith
      Name: Fred C. Smith
      Title: Executive Vice President

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
By:  HARTFORD INVESTMENT SERVICES, INC.
     Its  Agent and Attorney-in-Fact

By:   Betsy Roberts
      Name:  Betsy Roberts
      Title: Senior Vice President

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

By:   Mark A. Ahmed
      Name: Mark A. Ahmed
      Title: Managing Director

AMERICAN UNITED LIFE INSURANCE COMPANY

By:   Christopher D. Pahlke
      Name: Christopher D. Pahlke
      Title: Vice President, Private Placements

<PAGE>

THE STATE LIFE INSURANCE COMPANY

By:   Christopher D. Pahlke
      Name:  Christopher D. Pahlke
      Title: Vice President, Private Placements

<PAGE>

                                   SCHEDULE 1

                                     PART A

                               Original Borrowers

    Name of Borrower          Registered Number        Registered office/address
                                  (if any)

    1 Cordiant Communications      1320869            121-141 Westbourne Terrace
      Group plc                                       London W2 6JR

    2 Bates UK Limited             913184             121-141 Westbourne Terrace
                                                      London W2 6JR

    3 Cordiant US Holdings Inc.    13-3965951         Corproation Trust Centre
                                                      1209 Orange Street
                                                      Wilmington
                                                      Newcastle
                                                      Delaware, USA

    4 Bates Deutschland Holdings   HRB 8608           Hanauer Landstrasse
      GmbH                                            287-289
                                                      60314 Frankfurt am Main
                                                      Germany

<PAGE>

                                   SCHEDULE 1

                                     PART B

                               Swingline Borrower

   Name of Borrower          Registered Number        Registered office/address
                                  (if any)

   1 Cordiant US Holdings Inc.     13-3965951         Corporation Trust Centre
                                                      1209 Orange Street
                                                      Wilmington
                                                      Newcastle
                                                      Delaware, USA

<PAGE>

                                   SCHEDULE 1

                                     PART C

                              Overdraft Borrowers

Name of Borrower                 Registered Number     Registered office/address
                                      (if any)

1   Atlas Advertising Limited         964286          121-141 Westbourne Terrace
                                                      London W2 6JR

2   Bates Overseas Holdings           2217108         121-141 Westbourne Terrace
    Limited                                           London W2 6JR

3   Bates UK Limited                  913184          121-141 Westbourne Terrace
                                                      London W2 6JR

4   Cordiant Communications           1320869         121-141 Westbourne Terrace
    Group plc                                         London W2 6JR

5   Cordiant Group Limited            63031           121-141 Westbourne Terrace
                                                      London W2 6JR

6   Cordiant Property Holdings        2263916         121-141 Westbourne Terrace
    Limited                                           London W2 6JR

7   ICM International Limited         1802173         121-141 Westbourne Terrace
                                                      London W2 6JR

8   Swot Plus Limited                 1929347         121-141 Westbourne Terrace
                                                      London W2 6JR

9   The Decision Shop Limited         615225          121-141 Westbourne Terrace
                                                      London W2 6JR

10  XMSS Limited                     2463385          121-141 Westbourne Terrace
                                                      London W2 6JR

<PAGE>

                                   SCHEDULE 2

                                     PART A

             Original Guarantors under the Syndicated Loan Agreement

          Name of Guarantor

     1    Cordiant  Communications  Group plc

     2    Bates Europe  Limited

     3    Bates UK Limited

     4    Atlas Advertising  Limited

     5    The Decision Shop Limited

     6    ICM International Limited

     7    Cordiant US Holdings Inc.

     8    Bates Advertising USA Inc.

     9    Bates Churchill Public Relations, Inc

     10   Bates Churchill Advertising Inc

     11   Bates Worldwide (Delaware), Inc

     12   CCG.XM Inc

     13   Healthworld Corporation Inc.

     14   Bates Healthworld Inc.

     15   Falk Healthworld Inc.

     16   Lighthouse Global Network Inc.

     17   Fitch Inc.

<PAGE>

          Name of Guarantor

     18   Morgen Walke Associates Inc.

     19   Bates Deutschland Holdings GmbH

     20   Cordiant Communications Group
          Australia Pty. Limited

        Subsidiary Guarantors in respect of the Note Purchase Agreements

     1    The Communications Group Pty Limited

     2    Atlas Advertising Limited

     3    Bates Europe Limited

     4    Bates UK Limited

     5    ICM International Limited

     6    The Decision Shop Limited

     7    Bates Deutschland Holding GmbH

     8    Bates Advertising USA, Inc.

     9    Bates Churchill Advertising, Inc.

     10   Bates Churchill Public Relations, Inc.

     11   Bates Healthworld, Inc.

     12   Bates Travel and Tourism, Inc.

     13   Bates Worldwide (Deleware), Inc.

     14   CCG.XM, Inc.

     15   Cordiant US Holdings, Inc.

     16   Falk Healthworld, Inc.

     17   Fitch, Inc.

     18   GHBM, Inc.

     19   Healthworld Corporation

     20   Lighthouse Global Network Inc.

     21   Morgen-Walke Associates, Inc.

<PAGE>

                                   SCHEDULE 2

                                     PART B

                              Overdraft Guarantors

1    Atlas Advertising             964286            121-141 Westbourne Terrace
     Limited                                         London W2 6JR

2    Bates Overseas Holdings       2217108           121-141 Westbourne Terrace
     Limited                                         London W2 6JR

3    Bates UK Limited              913184            121-141 Westbourne Terrace
                                                     London W2 6JR

4    Cordiant Communications       1320869           121-141 Westbourne Terrace
     Group plc                                       London W2 6JR

5    Cordiant Group Limited        63031             121-141 Westbourne Terrace
                                                     London W2 6JR

6    Cordiant Property             2263916           121-141 Westbourne Terrace
     Holdings Limited                                London W2 6JR

7    ICM International             1802173           121-141 Westbourne Terrace
     Limited                                         London W2 6JR

8    Swot Plus Limited             1929347           121-141 Westbourne Terrace
                                                     London W2 6JR

9    The Decision Shop Limited     615225            121-141 Westbourne Terrace
                                                     London W2 6JR

10   XMSS Limited                  2463385           121-141 Westbourne Terrace
                                                     London W2 6JR

<PAGE>

                                   SCHEDULE 3

                         Additional Overdraft Borrowers

1    Healthworld Holdings Limited       3458882      121-141 Westbourne Terrace
                                                     London W2 6JR

2    Milton Marketing Group Limited     3113109      121-141 Westbourne Terrace
                                                     London W2 6JR

3    Headcount WW Field Marketing       1425412      121-141 Westbourne Terrace
     Limited                                         London W2 6JR

4    Colwood Healthworld Limited        2213846      121-141 Westbourne Terrace
                                                     London W2 6JR

5    Bates Healthworld Limited          3961667      121-141 Westbourne Terrace
                                                     London W2 6JR

6    Milton Marketing Limited           1385429      121-141 Westbourne Terrace
                                                     London W2 6JR

7    Financial Dynamics Holdings        3345319      121-141 Westbourne Terrace
     Limited                                         London W2 6JR

8    Lighthouse Holdings (UK) Limited   3719632      121-141 Westbourne Terrace
                                                     London W2 6JR

9    Fitch Design Consultants Limited   670130       121-141 Westbourne Terrace
                                                     London W2 6JR

10   Financial Dynamics Limited         1656428      121-141 Westbourne Terrace
                                                     London W2 6JR

11   Connect Six Limited                2191533      121-141 Westbourne Terrace
                                                     London W2 6JR

12   Connect Five Limited               1928295      121-141 Westbourne Terrace
                                                     London W2 6JR

<PAGE>

13   Clarion Communications PR Limited  2517824      121-141 Westbourne Terrace
                                                     London W2 6JR

14   PSD Associates Limited             2431038      121-141 Westbourne Terrace
                                                     London W2 6JR

15   Scholz & Friends London Limited    3398022      121-141 Westbourne Terrace
                                                     London W2 6JR

16   N.A.S.A.2.0 London Limited         3942853      121-141 Westbourne Terrace
                                                     London W2 6JR

17   CCG.XM                             4023322      121-141 Westbourne Terrace
                                                     London W2 6JR

18   CCG.XM Holdings Limited            3961670      121-141 WestbourneTerrace
                                                     London W2 6JR

19   Bamber Forsyth Limited             2097924      121-141 Westbourne Terrace
                                                     London W2 6JR

20   Corporate and Financial Design     2693509      121-141 Westbourne Terrace
     Design Limited                                  London W2 6JR

<PAGE>

                                   SCHEDULE 4

                    Banks under the Syndicated Loan Agreement

     1    HSBC Bank plc                           Media/Telecoms Group
                                                  27-32 Poultry
                                                  London EC2P 2BX

     2    The Bank of New York                    Level 48
                                                  One Canada Square
                                                  London E14 5 AL

     3    ABN AMRO Bank N.V., London Branch       250 Bishopsgate
                                                  London EC2M 4AA

     4    Allied Irish Bank plc                   Corporate Banking Britain
                                                  St Helen's
                                                  1 Undershaft
                                                  London EC3A 8AB

     5    Bank of Scotland                        38 Threadneedle Street
                                                  London EC2P 2EH

     6    Banque Worms                            Tour Voltaire
                                                  1 Place des Degres
                                                  F-92059 Paris La Defense
                                                  FRANCE

     7    Citibank, N.A.                          Media & Communications Group
                                                  388 Greenwich Street
                                                  21st Floor
                                                  New York 10013
                                                  UNITED STATES OF AMERICA

     8    Dai-Ichi Kangyo Bank, Ltd               24 King William Street
                                                  London EC4R 9DB

     9    Fleet Boston Financial                  39 Victoria Street
                                                  Westminster
                                                  London SW1H OED

     10   The Fuji Bank, Limited                  River Plate House
                                                  7-11 Finsbury Circus
                                                  London EC2M 7DH

     11   Lloyds TSB Bank plc                     Credit Services
                                                  4th Floor
                                                  11 - 15 Monument Street
                                                  London EC3R 8LR

     12   The Royal Bank of Scotland plc          135 Bishopsgate
                                                  London EC2M 3UR

<PAGE>

     13   Scotiabank Europe plc                   Scotia House
                                                  33 Finsbury Square
                                                  London EC2A 1BB

     14   Westdeutsche Landesbank Girozentrale    Woolgate Exchange
                                                  25 Basinghall Street
                                                  London EC2V 5HA

<PAGE>

                                   SCHEDULE 5

                                   Noteholders

     AMERICAN UNITED LIFE INSURANCE COMPANY

     EQUITABLE LIFE INSURANCE COMPANY OF IOWA

     GOLDEN AMERICAN LIFE INSURANCE COMPANY

     HARTFORD LIFE AND ANNUITY INSURANCE COMPANY

     HARTFORD LIFE INSURANCE COMPANY

     MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

     PRUCO LIFE INSURANCE COMPANY

     PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

     THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

     RELIASTAR LIFE INSURANCE COMPANY

     THE STATE LIFE INSURANCE COMPANY

     USG ANNUITY & LIFE COMPANY

<PAGE>

                                    EXHIBIT A

                                Banks' Term Sheet

<PAGE>

                        CORDIANT COMMUNICATIONS GROUP PLC
                        ---------------------------------

                            US$400M CREDIT AGREEMENT
                            ------------------------

                                Banks Term Sheet
                                ----------------

                Indicative Key Restructuring Terms and Conditions
                -------------------------------------------------

This term sheet is attached to an  agreement  in principle  (the  "Agreement  in
Principle") relating,  inter alia, to a US$400m Loan Agreement dated 4 July 2000
between,  amongst others,  Cordiant  Communications Group plc (as the "Parent"),
the Parent and various of its Subsidiaries  listed in schedule 1 thereto (as the
"Borrowers"),  The  Bank  of New  York  and  HSBC  Investment  Bank  plc (as the
"Arrangers"),  various  banks and  financial  institutions  listed in schedule 2
thereto (as the "Banks"), HSBC Investment Bank plc (as the "Agent" and "Security
Trustee"), The Bank of New York (as the "Swingline Bank"), and HSBC Bank plc (as
the "Overdraft Bank"), as amended from time to time (the "Credit Agreement").

The Credit Agreement will be amended and restated in a mutually  acceptable form
in accordance  with the terms and  conditions of this term sheet which are to be
documented in a restructuring  deed to be entered into between,  amongst others,
the  parties  to  the  Credit  Agreement  in a  mutually  acceptable  form  (the
"Restructuring  Deed") and which will also  contain  waivers of any  Defaults or
Events of Default under the Credit  Agreement  that have been  identified to the
Banks prior to the date on which the Restructuring Deed is executed.

The  amendments  and  waivers  to the Credit  Agreement  to be  effected  by the
Restructuring  Deed are  referred to in this term sheet as the  "Restructuring",
and the date on which the conditions to the  Restructuring  Deed are met and the
Restructuring becomes effective as the "Restructuring Date".

Capitalised terms used in this term sheet shall have the meanings defined in the
Credit Agreement, unless indicated otherwise.

The  Finance   Parties   under  the  Credit   Agreement  and  the  holders  (the
"Noteholders")  of Cordiant Finance Inc.'s 7.61 % Guaranteed Notes due 2011 (the
"Notes") issued under the Note Purchase Agreements dated 5 April 2001 (the "Note
Purchase  Agreements") (as amended and restated in accordance with the terms and
conditions set out in the term sheet entitled "Term sheet - Indicative Key Terms
and  Conditions  of  the  Proposed  Amendments"  attached  to the  Agreement  in
Principle (the "Amended and Restated Note Purchase Agreement")) (amongst others)
shall enter into an  intercreditor  agreement  (the  "lntercreditor  Agreement")
which shall give effect to the term sheet entitled  "lntercreditor  Term Sheet -
Key Intercreditor  Restructuring Terms and Conditions" which is also attached to
the Agreement in Principle.  The terms and conditions of the  Restructuring  are
subject  to  the  terms  and  conditions  of  the  lntercreditor   Agreement.

1         Information and reporting requirements

          The Parent will:

1.1       Annual audited financial  statements:  prepare consolidated  financial
          statements  for the Group in respect of each  financial year and cause
          the same to be reported on by the Auditors and provide such  financial
          statements  to the Agent  together  with the  report  of the  Auditors
          thereon,  the notes thereto,  the directors'  report thereon,  and the
          Auditors  report  required  in 1.5 below,  together  with the  Group's
          preliminary audited  consolidated  financial  statements,  at the time
          such preliminary audited consolidated  financial statements are issued
          to the  Parent's  shareholders  but in any event within 90 days of the
          end of each financial year.

                                       1
<PAGE>

1.2       Quarterly   Management   Accounts:   prepare  unaudited   consolidated
          quarterly  management  accounts  for  the  Group  in  respect  of each
          financial  quarter in the agreed form and provide such accounts to the
          Agent within 45 days after the end of each financial quarter, together
          with the Compliance  Certificate  required in 1.4 below. The quarterly
          management accounts shall include:

          (a)  a cashflow  statement and a consolidated  profit and loss account
               in respect of the relevant financial quarter,  the financial year
               to that date,  and whatever  periods or rolling 12 month  periods
               are relevant to the  calculations  required to test the Financial
               Covenants;

          (b)  a  comparison  of all relevant  results with the relevant  annual
               budget required to be provided in 1.6 below;

          (c)  a comparison of actual  performance  for that  financial  quarter
               with the  performance  during the  equivalent  financial  quarter
               during the immediately preceding financial year;

          (d)  a  consolidated  balance  sheet  as at the end of that  financial
               quarter; and

          (e)  a management  discussion and analysis  consistent with the agreed
               form Index of Management Discussion and Analysis;

          (f)  a statement of the aggregate  net proceeds of relevant  disposals
               made  during  such  period  to  which  the  mandatory  prepayment
               requirements at 15.1 below apply;

          (g)  (for the purposes  relevant for the Maximum  Capital  Expenditure
               covenant at 3.3 below) a statement of the Capital Expenditure (as
               defined in 3.3 below) during such period;

          (h)  an analysis of the profit and loss account by profit centres; and

          (i)  a statement  of the  consideration  paid by the Group (and broken
               down by Group  members)  in  respect  of  Permitted  Acquisitions
               during such period.

1.3       Monthly Management  Accounts:  prepare unaudited  consolidated monthly
          management  accounts  in respect of the Group in respect of each month
          and provide such accounts to the Agent within 30 days after the end of
          each month. The monthly management accounts shall include:

          (a)  a  consolidated  cashflow  statement  (including a 4 week rolling
               forecast of central liquidity in the agreed form)

          (b)  a consolidated profit and loss account for the relevant month and
               the financial year to that date;

          (c)  a  comparison  of all relevant  results with the relevant  annual
               budget required to be provided in 1.6 below;

          (d)  a  comparison  of  actual  performance  for that  month  with the
               performance  during the equivalent  month during the  immediately
               preceding financial year;

          (e)  a management  discussion and analysis  consistent with the agreed
               form Index of Management Discussion and Analysis;

          (f)  a statement of the aggregate  net proceeds of relevant  disposals
               made  during  such  period  to  which  the  mandatory  prepayment
               requirements at 15.1 below apply;

          (g)  (for the purposes  relevant for the Maximum  Capital  Expenditure
               covenant at 3.3 below) a statement of the Capital Expenditure (as
               defined in 3.3 below) during such period; and

                                       2
<PAGE>

          (h)  a statement of the  investments  and other  transactions  entered
               into pursuant to the ring-fencing arrangements at 17.2(b) below.

1.4       Compliance   Certificates:   prepare  a   certificate   verifying  the
          compliance  or otherwise  with the  Financial  Covenants  set out in 3
          below,  confirming  that no Default has occurred  which is  continuing
          unremedied and unwaived, and attaching a list of Material Subsidiaries
          (determined in accordance  with the definition at 23.1 below) and have
          it signed by its  finance  director,  or if the  finance  director  is
          unavailable  for any reason,  any other  director  of the Parent,  and
          provide such  certificate  to the Agent at the time of the delivery of
          the quarterly management accounts for each financial quarter.

1.5       Annual  Auditors'  report:  at the  time of  delivery  of the  audited
          consolidated financial statements,  deliver a report from the Auditors
          (in a format  acceptable  to the Agent and which can be relied upon by
          the Agent (for itself and the other Finance Parties)) stating:

          (a)  the amounts of the respective financial definitions in respect of
               or,  as the case  may be,  as at the end of the  relevant  period
               specified  in the  Financial  Covenants  as  extracted  from such
               audited  consolidated  financial  statements  and  indicating the
               manner in which such amounts have been calculated;

          (b)  the  application  of the  respective  amounts  of such  financial
               definitions to the Financial Covenants; and

          (c)  a list of the Group  companies that are Material  Subsidiaries as
               at the date of such audited consolidated financial statements (as
               defined in 23.1 below),

          and each such  report  shall (in the  absence  of  manifest  error) be
          conclusive as to matters contained in it.

1.6       Annual  Budget:  prepare  an annual  budget  for each  financial  year
          (broken down on a monthly  basis and updated on a quarterly  basis) in
          the agreed form,  and (i) provide each such annual budget to the Agent
          as soon as it  becomes  available,  and in any event not later than 45
          days after the commencement of the financial year the subject thereof,
          (ii) provide an update of each such annual budget to the Agent as soon
          as it becomes  available and in any event not later than 20 days after
          the  commencement of each financial  quarter in the financial year the
          subject  thereof,  and (ii)  immediately  upon being  approved  by the
          Parent's  board of directors,  provide to the Agent any  amendments or
          revisions to each such annual budget.

1.7       Reports  and  notices  to  creditors,  Noteholders  and  shareholders:
          provide  to the  Agent  at the  time of issue  thereof  every  report,
          circular,  notice or like document  issued by the Parent or any of its
          Subsidiaries to its creditors (or any class of creditors) generally or
          to the  Noteholders  and  every  notice  convening  a  meeting  of the
          shareholders or any class of the shareholders of the Parent.

1.8       Further information: and each Borrower will, provide to the Agent such
          further financial and other  information  concerning the Group (or any
          member of it) and its affairs as the Agent or any Bank (acting through
          the Agent) may from time to time reasonably require.

1.9       Independent  accountant's report: notify the Agent immediately upon it
          becoming aware that a breach of clause 13.1  (Financial  Covenants) or
          an Event of Default  under any of clauses  14.1(a)  (Non  payment)  or
          14.1(e) to 14.1(n) inclusive  (Cross-default and insolvency events) is
          reasonably likely to occur either  immediately or within the following
          12 months. Upon receiving such notification from the Parent, the Agent
          (acting on the instruction of the Majority Banks) shall have the right
          to require the  preparation of an independent  accountants'  report on
          the financial and business condition and prospects of the Group and/or
          such other  reports as the Majority  Banks shall  require (the cost in
          each case to be borne by the  Parent)  and the  Parent  will (and will
          procure that each other member of the Group will)  provide the persons
          preparing  each  such  report  with  all  assistance  and  information
          requested by them.

                                       3
<PAGE>

2         Adjustment to Event of Default grace period

          The grace period under the Event of Default at clause 14.1(c)  (Breach
          of other  obligations)  of the Credit  Agreement shall be reduced to 5
          Banking Days in so far as it relates to a breach of the obligations or
          undertakings to deliver financial statements,  compliance certificates
          and Auditor's reports required for the Financial  Covenants testing at
          the time and in the manner  stipulated in the relevant  clauses of the
          Credit Agreement.

3         Financial Covenants

3.1       The existing Financial Covenants shall be replaced by:

          (a)  Consolidated EBITDA to Consolidated Net Interest Expenditure; and

          (b)  Consolidated Gross Borrowings to Consolidated EBITDA,

          each to be tested  quarterly on the basis of  management  accounts and
          the annual audited  consolidated  financial  statements.  Consolidated
          EBITDA and Consolidated Net Interest  Expenditure  shall be calculated
          on a rolling  twelve months basis and  Consolidated  Gross  Borrowings
          shall  continue to be  calculated  on the basis of the  average  daily
          outstandings during the most recent two quarters.  The covenant levels
          are set out below.

          The  Parent  will  procure  that the ratio of  Consolidated  EBITDA to
          Consolidated Net Interest  Expenditure for each period date set out in
          column A shall  not be less  than the  corresponding  ratio set out in
          column B

                     A                                   B
          12 month period ending                       Ratio
          ----------------------                       -----
          31 March 2002                                2.50:1
          30 June 2002                                 1.75:1
          30 September 2002                            2.50:1
          31 December 2002                             2.50:1
          31 March 2003                                2.75:1
          30 June 2003                                 3.00:1
          30 September 2003                            3.25:1
          31 December 2003                             3.75:1
          31 March 2004                                4.00:1
          30 June 2004                                 4.50:1
          30 September 2004                            5.00:1

          The  Parent  will  procure  that  the  ratio  of  Consolidated   Gross
          Borrowings  as at the end of, to  Consolidated  EBITDA in respect  of,
          each  period set out in column A shall not be  greater  than the ratio
          set out in column B

                  A                                   B
          12 month period ending                       Ratio
          ----------------------                       -----
          31 March 2002                                5.75:1
          30 June 2002                                 8.50:1
          30 September 2002                            4.75:1

                                       4

<PAGE>

          31 December 2002                             4.75:1
          31 March 2003                                4.25:1
          30 June 2003                                 3.75:1
          30 September 2003                            3.75:1
          31 December 2003                             3.50:1
          31 March 2004                                3.00:1
          30 June 2004                                 3.00:1
          30 September 2004                            2.75:1

3.2       For these purposes:

          "Consolidated   EBITDA"   means,   in  respect  of  any  period,   the
          consolidated trading profits, but before:

          (i)  exceptional items and extraordinary  items separately  identified
               in the relevant (each as profit and loss account);

         (ii)  profits and losses on disposals of capital assets;

        (iii)  amortisation of goodwill and other intangible assets;

         (iv)  depreciation and impairment;

          (v)  Consolidated Gross Interest  Expenditure and interest received or
               receivable; and

         (vi)  Taxes;

          of the Group  for such  period  and  after  taking  into  account  the
          applicable  share of any profit or loss of any joint  venture or other
          person which is not a Subsidiary of the Parent and after deducting (to
          the  extent  otherwise  included)  profits  (or  adding  back  losses)
          attributable  to minority  interests in members of the Group and after
          deducting (to the extent not otherwise deducted) Property Payments;

          and the following  existing  definitions  shall  continue to apply (as
          amended below):

          "Consolidated  Gross  Borrowings"  means the  aggregate  principal  or
          capital amount of all Borrowed Money incurred by the Group  (including
          any fixed or  minimum  premium  payable on final  repayment)  plus the
          aggregate   principal   element  of  Borrowed  Money  secured  by  any
          Encumbrance over all or any part of the undertaking, property, assets,
          rights or revenues of any member of the Group except that:

          (i)  moneys owing by one member of the Group to another  member of the
               Group shall not be taken into account;

         (ii)  to avoid double  counting,  no guarantee of a liability  which is
               already taken into account shall itself be taken into account;

        (iii)  no  liability  shall be taken into  account more than once in any
               computation;

         (iv)  Consolidated  Gross  Borrowings  expressed  in or  calculated  by
               reference to a currency  other than  Sterling  shall be converted
               into  Sterling by reference  to the rate of exchange  used by the
               Parent for the conversion of such currency in accordance with the
               management policy of converting such amounts on a daily basis or,
               if the relevant currency was not thereby  involved,  by reference
               to the rate of exchange or approximate

                                       5

<PAGE>

               rate of exchange ruling on such date and determined on such basis
               as the Agent may determine or approve;

          (v)  the principal amount of Consolidated  Gross Borrowings  deemed to
               be  outstanding  in relation to Finance  Leases or hire  purchase
               agreements  shall be the present  value of the  minimum  lease or
               hire  payments  discounted  at the interest  rate implicit in the
               relevant lease or hire purchase agreement;

         (vi)  Indebtedness in respect of cash collateralised  guarantees issued
               by a Bank or any of its  associates  on  behalf  of the  Group to
               media authorities shall not be taken into account;

        (vii)  Indebtedness of the Group in respect of the guarantees  issued by
               banks on behalf of the  Group to media  authorities  in Korea and
               the United Kingdom shall not be taken into account; and

       (viii)  debit balances at any bank or financial  institution  under the
               cash  management  arrangements  of the Group  shall be taken into
               account  net of the credit  balances of the Group at such bank or
               financial institution to the extent that such credit balances are
               subject to contractual  set-off against such debit balances (both
               before  and  after   insolvency)   under  such  cash   management
               arrangements;

          "Consolidated  Gross  Interest  Expenditure"  means,  in  respect of a
          period, the aggregate amount  (calculated on a consolidated  basis) of
          all  continuing,  regular or  periodic  costs,  charges  and  expenses
          accrued   during  that  period  in  respect  of   Consolidated   Gross
          Borrowings, including:

          (a)  any acceptance commission paid or payable in respect of any bills
               of exchange or other negotiable instruments;

          (b)  any initial issue discount allowed on the issue of debentures (to
               the extent  relating to that period when  amortised over the term
               of such debentures); and

          (c)  the interest component of rentals under Finance Leases,

          but excluding:

          (i)  arrangement  and  other  one-off  fees  (including  the fees (and
               interest  thereon)  referred  to in 4 and 8  below  and  the  PIK
               Management  Fees in respect of the Notes pursuant to the terms of
               the Amended and Restated Note Purchase Agreement),  to the extent
               relating  to that  period  when  amortised  over  the term of the
               relevant Consolidated Gross Borrowings; and

         (ii)  amounts  discounted  for FRS12 or SSAP24  purposes  to the extent
               they are non-cash items;

          "Consolidated Net Interest Expenditure" means, in respect of a period,
          the Consolidated  Gross Interest  Expenditure  accrued for that period
          net of credit interest accrued by the Group during such period; and

          "Property  Payments"  means the  aggregate  amount of (i) the payments
          made by any member of the Group pursuant to leases of unoccupied  land
          or  buildings  of which such  member of the Group is a lessor and (ii)
          the amount by which  payments  under a lease of land or  buildings  of
          which a member of the Group is a lessee  exceeds  the amount of rental
          received  by such  member  of the  Group in  respect  of such  land or
          buildings from any other person;

          and the definition of "Borrowed Money" shall be revised as follows:

     "Borrowed  Money" means  Indebtedness  in respect of (i) money  borrowed or
     raised and debit balances at banks,  (ii) any amount raised pursuant to any
     note purchase facility or the issue of bonds, notes, debentures, loan stock
     or any similar instrument, (iii) any counter-indemnity

                                       6
<PAGE>

          obligation  in respect of a  guarantee,  indemnity,  bond,  standby or
          documentary  letter of credit or any other instrument issued by a bank
          or  financial  institution,  (iv)  acceptance  or  documentary  credit
          facilities,  (v) receivables  sold or discounted  (otherwise than on a
          non-recourse  basis),  (vi)  deferred  payments for assets or services
          acquired where the deferred payment is arranged  primarily as a method
          of  raising  finance  or  financing  the  acquisition  of the asset or
          services acquired  (excluding credit granted in the ordinary course of
          trading for a period not exceeding 120 days (or in the case of Greece,
          Spain and Italy,  not exceeding  180 days) and deferred  consideration
          payments  in respect  of  acquisitions  or  investments  permitted  in
          accordance  with 17.2 and the deferred  consideration  obligations set
          out in schedule 13 to the Credit Agreement), (vii) the capital element
          of Finance Leases and hire purchase contracts,  (viii) (except for the
          purposes of the  definition of  "Consolidated  Gross  Borrowings"  and
          clause 14.1.5 of the Credit Agreement) Derivatives Contracts, (ix) any
          preference  or  other  shares  which  are  mandatorily  redeemable  or
          redeemable  at the  option  of the  holder  thereof  (other  than  the
          preference shares listed in schedule 13 of the Credit Agreement),  (x)
          any other transaction  (including  without  limitation forward sale or
          purchase  agreements where the deferred payment is arranged  primarily
          as a method of raising  finance or financing  the  acquisition  of the
          asset  or  services  acquired)  having  the  commercial  effect  of  a
          borrowing  or raising of money or of any of (ii) to (ix) above and (x)
          guarantees in respect of Indebtedness of any person falling within any
          of (i) to (x) above.

3.3       The following new covenant shall be included:

          Maximum Capital Expenditure

          The  total  Capital  Expenditure  of all  members  of the Group in any
          financial year shall not exceed the Budgeted  Capital  Expenditure for
          such financial year but so that in respect of any financial year where
          the relevant  actual  Capital  Expenditure  (less any amount which was
          carried  forward  from the previous  financial  year) is less than the
          Budgeted Capital  Expenditure for that financial year, an amount equal
          to such deficit may be carried over to the  following  financial  year
          only (and not  otherwise  or further)  and shall be deemed to be spent
          before Budgeted Capital Expenditure in that year.

          "Budgeted Capital  Expenditure" means Capital Expenditure  incurred or
          to be incurred in a financial year up to a maximum of:

          Financial year ending              Amount (pound) millions
          ---------------------              -----------------------
          31 December 2002                             10
          31 December 2003                             17.5
          31 December 2004                             20

          "Capital Expenditure" means any expenditure which should be treated as
          capital expenditure in the audited  consolidated  financial statements
          of the Group in accordance with the Original Accounting Principles.

3.4       In addition the  Consolidated  Net Worth covenant from the Amended and
          Restated  Note  Purchase  Agreement  in respect of the Notes  shall be
          included in the Credit Agreement.

3.5       In  this  term  sheet,   "Financial  Covenants"  means  the  financial
          covenants referred to in this section 3.

4         Restructuring fees and expenses

4.1       The  Parent  shall  enter  into  a  fee  letter   agreeing  to  pay  a
          co-ordination  fee to the  Arrangers  in the form of the draft  letter
          provided.

                                       7

<PAGE>

4.2       The Parent  shall pay to the Banks (pro rata) a  restructuring  fee of
          1.00% of the Total  Commitments which shall be earned on the execution
          of the Agreement in Principle and shall be payable on the execution of
          the Restructuring Deed.

4.3       The  Parent  shall pay to the Banks  (pro  rata) a fee (the  "Deferred
          Fee") calculated at 1.00% of the average daily principal  outstandings
          under the Credit Agreement during the two most recent quarters,  which
          shall accrue quarterly in arrears after the execution of the Agreement
          in Principle, and which shall be payable upon the earliest of:

          (a)  the occurrence of an Event of Default under the Credit Agreement;

          (b)  the  cancellation  of the  Total  Commitments  under  the  Credit
               Agreement; and

          (c)  8 November 2004.

          Interest  on such  Deferred  Fee  shall  accrue at 9.25% per annum and
          shall be payable when such Deferred Fee is payable.

4.4       The Parent  shall enter into fee  letters  agreeing to pay fees to the
          Agent,  the  Swingline  Bank,  and  HSBC  Investment  Bank plc (as the
          security trustee under the terms of the  lntercreditor  Agreement (the
          "Common Security Trustee")) in the form of the draft letters provided.

4.5       The Parent shall pay all expenses of the Finance Parties in connection
          with the proposed Restructuring,  including,  without limitation,  the
          fees and expenses of Norton Rose and  Covington and Burling as counsel
          to the Finance  Parties  and the fees and  expenses of other local law
          counsel  instructed  by Norton Rose on behalf of the Finance  Parties,
          regardless of whether the amendments and waivers are consummated.

5         Drawdown Notices

5.1       In Drawdown  Notices  relating to drawings under the Revolving  Credit
          Facility (other than in the case of rollovers), each of the Parent and
          the relevant  Borrower  shall make an  additional  representation  and
          warranty  that "it is not aware  (after due  enquiry) of any matter or
          event which is reasonably  likely to result in a breach of clause 13.1
          (Financial  Covenants)  or an Event of  Default  under any of  clauses
          14.1(a) (Non payment) or 14.1(e) to 14.1(n)  inclusive  (Cross-default
          and insolvency  events) either immediately on the date of the Drawdown
          Notice or within  the  period  ending 12 months  after the date of the
          drawing."

5.2       In the case of Revolving Credit Advances to be drawn in Sterling,  the
          Borrower  must provide a Drawdown  Notice not later than 1 p.m. on the
          second  Banking Day before the proposed  Drawdown Date. In the case of
          Swingline  Advances  the  Swingline  Borrower  must provide a Drawdown
          Notice  not later than 11 a.m.  (New York City  time) on the  relevant
          Drawdown date.  The notice  periods for all other  drawings  remain as
          currently stated in the Credit Agreement.

6         Margin

          On and  from the  Restructuring  Date the  Margin  shall be 3.25%  per
          annum.

7         Commitment Commission

          The Parent shall pay to the Banks (pro rata) commitment  commission at
          the rate of 1.25%  per  annum on the  daily  undrawn  and  uncancelled
          amount on the Facilities,  payable on the dates falling at three month
          intervals  after the date of the Credit  Agreement and on the last day
          of  the  Availability  Period  in  respect  of  the  Revolving  Credit
          Facility.

                                       8
<PAGE>

8         PIK Management Fee

          The Parent shall pay an additional management fee (the "PIK Management
          Fee") to the Banks (pro rata) to be calculated as a percentage  fee on
          the average daily principal  outstandings  under the Credit  Agreement
          during the two most recent quarters and shall be calculated  quarterly
          in  accordance   with  the  following   table  showing  the  ratio  of
          Consolidated Gross Borrowings to Consolidated EBITDA:

<TABLE>
<CAPTION>
Quarter Ending                  Consolidated Gross Borrowings : Consolidated EBITDA

<S>                  <C>            <C>               <C>               <C>               <C>
March 2002           less than      greater than      greater than      greater than      greater than
                     or equal to        4.60             4.84              5.08              5.32
                       4.60         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        4.84             5.08              5.32

June 2002            less than      greater than      greater than      greater than      greater than
                     or equal to        6.25             6.81              7.38              7.94
                       6.25         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        6.81             7.38              7.94

September 2002       less than      greater than      greater than      greater than      greater than
                     or equal to        3.56             3.84              4.13              4.41
                       3.56         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.84             4.13              4.41

December 2002        less than      greater than      greater than      greater than      greater than
                     or equal to        3.37             3.71              4.06              4.40
                       3.37         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.71             4.06              4.40

March 2003           less than      greater than      greater than      greater than      greater than
                     or equal to        3.40             3.59              3.77              3.96
                       3.40         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.59             3.77              3.96

June 2003            less than      greater than      greater than      greater than      greater than
                     or equal to        3.28             3.40              3.52              3.63
                       3.28         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.40             3.52              3.63

September 2003       less than      greater than      greater than      greater than      greater than
                     or equal to        3.22             3.35              3.49              3.62
                       3.22         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.35             3.49              3.62

December 2003        less than      greater than      greater than      greater than      greater than
                     or equal to        2.89             3.02              3.15              3.27
                       2.89         but less than     but less than     but less than
                                     or equal to       or equal to       or equal to
                                        3.02             3.15              3.27

March 2004           less than      greater than           -                 -                 -
                     or equal to        2.89
                       2.89         but less than
                                     or equal to
                                        3.00

June 2004            less than      greater than            -                -                 -
                     or equal to        2.70
                       2.70         but less than
                                     or equal to
                                        3.00

September 2004       less than      greater than            -                -                 -
                     or equal to        2.70
                       2.70         but less than
                                     or equal to
                                        2.75

Rate                   0.00%            0.50%            1.00%             1.50%             2.00%
</TABLE>

          The  PIK  Management  Fee  shall  be  calculated  using  the  Parent's
          quarterly  Compliance  Certificates  but shall not be  payable  by the
          Parent until the earliest of (i) the cancellation in full of the Total
          Commitments under the Credit Agreement, (ii) the prepayment in full of
          the Notes,  (iii) any  enforcement  of the security  referred to in 20
          below,  (iv) the  occurrence  of any  Event of  Default  specified  in
          clauses   14.1(h)   (Insolvency)   to  (n)   (Analogous   proceedings)
          (inclusive) of the Credit Agreement, (v) any of the Notes becoming due
          and  payable,  whether  automatically  or by  declaration,  or  (vi) 8
          November  2004.  Any PIK  Management Fee that is payable in respect of
          any quarter shall accrue  interest at 9.25% per annum,  which interest
          shall accrue but shall not be payable until the P1K  Management Fee is
          payable. The accrual of interest on the PIK Management Fee shall begin
          as  of  the  quarter-end   date  shown  on  the  relevant   Compliance
          Certificate.

          To the  extent  that the "New  Money"  (as  defined  in the term sheet
          attached to the Agreement in Principle  entitled  "lntercreditor  Term
          Sheet - Key lntercreditor  Restructuring Terms and Conditions) portion
          of the Commitments under the Credit Agreement are repaid and cancelled
          in full at any time or the  Finance  Parties  agree to  eliminate  the
          priority   treatment  of  such  New  Money  under  the  terms  of  the
          Intercreditor  Agreement at any time, any future  accretion of the PIK
          Management  Fee  shall  cease at the  later of that time and 1 January
          2003 (it being  understood  that any PIK  Management Fee that has been
          calculated for any quarter prior to

                                       9
<PAGE>

          such time shall continue to be payable at the relevant time of payment
          as  provided  above and will  continue to accrue  interest  until such
          payment date).

9         Switch of base commitments from US$ to(pound)

          The  base  currency  of the  Commitments  shall be  converted  from US
          dollars to Sterling on the  Restructuring  Date, such conversion being
          at the  Agent's  spot rate of exchange  two Banking  Days prior to the
          Restructuring  Date.  Amounts  drawn shall remain  outstanding  in the
          currencies which they were drawn.

10        Full prepayment events

          The Borrowers  shall prepay all the  Facilities  in whole  immediately
          upon the occurrence of an External Refinancing (which shall be defined
          to mean the borrowing or raising of Borrowed Money (including  without
          limitation,  any public or private  issue of debt  securities)  by any
          member of the Group with a view,  inter  alia,  to the  repayment  and
          cancellation  of any amount of any of the  Facilities)  or the sale or
          other  disposal  of  all  or  substantially  all  of  the  assets  and
          undertakings of the Group  whereupon the Total  Commitments in respect
          of all the Facilities shall be reduced to zero.

11        Rights issue/equity raising

11.1      The  Parent  will not  issue  any  shares  or  otherwise  acquire  any
          additional capital other than:

          (a)  the  issue  of  ordinary  shares  (i) as  consideration  for  the
               acquisitions  referred to in 17.1 below  pursuant to the Parent's
               obligations  (actual or contingent) as at the Restructuring  Date
               or (ii) in consideration  for  acquisitions  permitted under 17.2
               below ((i) and (ii) together being the "Permitted Acquisitions");
               and

          (b)  the issue of ordinary shares for cash payable in full on the date
               of issue  and which  ordinary  shares do not carry any right to a
               return or to redemption nor any right to be converted into shares
               carrying  such  right  before  all  amounts  (whether  actual  or
               contingent)  owing under the Credit  Agreement  have been paid in
               full  and  the  Finance  Parties  have  no  further   obligations
               thereunder, or the granting of an option to call on the Parent to
               issue such shares,

          and the Parent will at all times  procure  that no other member of the
          Group  will  issue any  shares or  otherwise  acquire  any  additional
          capital (or grant any rights to call for the issue or allotment of any
          of the same)  other  than the issue of shares by a member of the Group
          to  another  member of the Group  permitted  under  17.2(a) or 17.2(b)
          provided  that (A) where  the  existing  shares in such  member of the
          Group  are  subject  to an  Encumbrance  under  any  of  the  Security
          Documents,  such  additional  shares  are  also  subject  to  such  an
          Encumbrance  and  (B)  where  such  existing  shares  are  subject  to
          Encumbrances   which  are  structured  to  avoid  an  adverse  US  Tax
          consequence to the Group,  such additional shares shall only be issued
          to the existing holding company of the issuing member of the Group;

11.2      The proceeds (net of reasonable  related costs) of any rights issue or
          other equity raising (other than those  permitted under 11.1(a)) shall
          be applied in mandatory  prepayment and cancellation of the facilities
          under the Credit Agreement.

12        Dividends and other distributions

12.1      The Parent will not:

12.1.1    and will  procure  that no other  member of the Group  will  redeem or
          purchase or otherwise  reduce any of the Parent's share capital or any
          uncalled  capital or unpaid liability in respect thereof or reduce the
          amount  (if any) for the time  being  standing  to the  credit  of the
          Parent's  share  premium  account  or  capital   redemption  or  other
          undistributable  reserve in any manner  (other than a partial  capital
          reorganisation in order to create distributable reserves where no

                                       10
<PAGE>

          amount is paid or becomes payable (including,  without limitation,  by
          way  of  set-off,   combination  of  accounts  or  otherwise)  to  any
          shareholder in the Parent as part of such reorganisation); or

12.1.2    declare,  pay  (including,  without  limitation,  by way  of  set-off,
          combination of accounts or otherwise) or permit to accrue any dividend
          or make any  other  distribution  or  payment  (whether  in cash or in
          specie), including any interest and/or unpaid dividends, in respect of
          its  equity or any other  share  capital  for the time  being in issue
          except  that  it may  declare  and pay a final  dividend  (but  not an
          interim  dividend) in respect of any financial  year after 31 December
          2001, provided that:

          (a)  the Financial  Covenants have been tested and passed as at the 30
               June  Financial  Covenants  test date in the following  financial
               year; and

          (b)  no breach of any of the  Financial  Covenants has occurred and is
               continuing  and no other Default or Event of Default has occurred
               which is continuing; and

          (c)  the ratio of Consolidated Gross Borrowings to Consolidated EBITDA
               was  not  greater   than  3.50:1  on  each  of  two  most  recent
               consecutive Financial Covenant test dates; and

          (d)  the dividend does not exceed 25% of Consolidated  Excess Cashflow
               if the ratio of  Consolidated  Gross  Borrowings to  Consolidated
               EBITDA  was not less than  3.25:1 on each of the two most  recent
               consecutive financial covenant test dates; and

          (e)  the dividend does not exceed 50% of Consolidated Excess Cashflow;
               and

          (f)  not later  than 5 and no more than 15  Banking  Days prior to the
               proposed  date  for the  payment  of that  dividend  the  finance
               director  (or, if he is  unavailable  for any  reason,  any other
               director  in each case in such  directors'  opinion  but  without
               personal  liability)  of  the  Parent  delivers  to the  Agent  a
               certificate in which the Parent certifies (without qualification)
               that:

               (i)  it proposes to pay a dividend and states the amount of it;

              (ii)  no breach of any of the Financial Covenants has occurred and
                    is  continuing  and no other  Default has occurred  which is
                    continuing;

             (iii)  in the  opinion  of the  board of  directors  of the  Parent
                    (acting in good faith and after having  regard  (inter alia)
                    to the current and projected  trading and cash flow position
                    of the Group (such  projections  being  based on  reasonable
                    assumptions), and assuming the making of such dividend):

                    (A)  no breach of clause 13.1  (Financial  Covenants) or any
                         Event of Default is  reasonably  likely to occur either
                         immediately or within the period ending 12 months after
                         the date of the dividend; and

                    (B)  the  Group  is  reasonably  likely  to have  sufficient
                         working capital during such 12 month period,

                    and such certificate  shall be accompanied by (a) a forecast
                    for the  period  of 6 full  months  following  the  proposed
                    payment date  showing the  projected  respective  amounts of
                    Consolidated   EBITDA,    Consolidated   Gross   Borrowings,
                    Consolidated Net Interest  Expenditure,  Capital Expenditure
                    and  Net  Worth  and  their  application  to  the  Financial
                    Covenants in respect of each  Financial  Covenant  test date
                    within  such  period,  such  forecast  to be  based  on  the
                    knowledge of the Parent and the circumstances  then existing
                    at such time together with reasonable assumptions, and (b) a
                    calculation by the Parent of  Consolidated  Excess Cash Flow
                    for the relevant financial year (showing the calculations on
                    which  it is  based)  together  with a  statement  from  the
                    Auditors  as to the amount of the  Consolidated  Excess Cash
                    Flow   confirming   that  in  all   material   respects  the
                    calculation has been made

                                       11

<PAGE>

                    in  accordance  with  the  audited  consolidated   financial
                    statements of the Group for the relevant  financial year and
                    the definition of Consolidated Excess Cash Flow.

12.2      For these purposes:

          "Consolidated  Excess Cash Flow"  means,  in respect of any  financial
          year the Consolidated EBITDA of the Group for such period:

          after the addition of (if not already added):

          (a)  cash  dividends  received from  investments in joint ventures and
               other  persons  which are not  Subsidiaries  of the Parent (after
               Taxes);

          (b)  Tax  rebates  received  in cash  which the Group is  entitled  to
               retain; and

          (c)  any other  non-cash  items  expensed in arriving at  Consolidated
               EBITDA,

          after the deduction of (if not already deducted):

          (i)  payments in respect of Capital Expenditure;

         (ii)  payments of cash exceptional and extraordinary items;

        (iii)  Group Taxes paid;

         (iv)  any other  non-cash  items  credited in arriving at  Consolidated
               EBITDA,

          (v)  Consolidated Net Interest Expenditure;

         (vi)  all cash dividends paid by the Parent and all cash dividends paid
               in respect of minority interests in other members of the Group;

        (vii)  all  repayments  and  prepayments  of the Notes  and all  amounts
               applied in repayment and cancellation of the facilities under the
               Credit  Agreement  (where  crediting  cash  to a cash  collateral
               account  pending such  application is deemed to be such an actual
               prepayment) except for mandatory repayments or prepayments of the
               Notes or the facilities  under the Credit Agreement in accordance
               with 11, 15.1, or 16.6 below to the extent that the proceeds from
               the relevant  transaction  which give rise to such  repayments or
               prepayments are excluded in determining  Consolidated  EBITDA for
               the period;

       (viii)  the principal  amount of rental  payments of Capitalised  Lease
               Obligations;

         (ix)  all   cash   consideration   paid  for   Permitted   Acquisitions
               (including,  without  limitation,  by way of earnouts or deferred
               consideration); and

          (x)  all  amounts  paid  in  connection  with  employee  share  option
               schemes,

          and excluding the applicable  share of any loss or profit of any joint
          venture  or other  person  which  is not a  Subsidiary  of the  Parent
          included in arriving at Consolidated EBITDA,

          in each  case  for,  or  paid  during,  such  financial  year  and all
          calculated on a consolidated basis.

                                       12
<PAGE>

13        Other borrowings

13.1      The negative  undertaking at clause 12.2(b) of the Credit Agreement in
          respect of Borrowed Money will be revised as set out below:

          No other Borrowed Money or finance transactions: it will not, and will
          procure  that no other  member of the Group  will,  incur or permit to
          exist on its behalf any  obligations  in  respect of  Borrowed  Money,
          including  Finance  Leases,  whether on or off balance  sheet,  to any
          person, or any sale and leaseback except:

          (i)  Borrowed Money arising from normal trade credit;

         (ii)  the Borrowed  Money of any persons  acquired by any member of the
               Group  pursuant to the D Acquisition  provided that such Borrowed
               Money  at no  time  exceeds  Korean  Won  16,900,000,000  (or its
               equivalent) in aggregate;

        (iii)  any Borrowed  Money of any person  (other than  pursuant to the D
               Acquisition or the Lighthouse Acquisition) acquired by any member
               of the  Group  after  the  date of  this  Agreement,  where  such
               Borrowed Money was existing at the time of such  acquisition  and
               was not incurred in contemplation of, or in connection with, that
               acquisition  and  where no member  of the  Group  other  than the
               person so acquired has any  obligation  (actual or contingent) in
               respect of such Borrowed  Money (and where such Borrowed Money is
               permitted  under  17.2(c)  below)  and  is  repaid  or  otherwise
               discharged within 30 days of such acquisition;

         (iv)  Borrowed  Money not exceeding  Australian  dollars  10,000,000 in
               aggregate in respect of working capital facilities made available
               in Australia to members of the Group;

          (v)  Borrowed  Money  in  respect  of  debit  balances  at any bank or
               financial  institution under the cash management  arrangements of
               the Group (net of the credit  balances  of the Group at such bank
               or financial  institution to the extent that such credit balances
               are subject to  contractual  set-off  against such debit balances
               (both  before and after  insolvency  under  such cash  management
               arrangements)  where the aggregate of all such net debit balances
               of  the  Group   does  not   exceed   (pound)5,000,000   (or  its
               equivalent);

         (vi)  Borrowed  Money in  respect  of (i) the  Facilities  and (ii) the
               Notes (under the terms of the Note Purchase  Agreements  (and the
               Amended and Restated  Note  Purchase  Agreement) or as such terms
               may be amended in accordance with the lntercreditor Agreement);

        (vii)  Indebtedness  in  respect  of Finance  Leases  provided  that the
               aggregate  amount of the  principal  element of the  Indebtedness
               under such Finance  Leases does not exceed  (pound)2,000,000  (or
               its equivalent) at any time;

       (viii)  performance bonds issued by a member of the Group in respect of
               the obligations  (other than any payment  obligations) of another
               member of the Group in the ordinary course of trading;

         (ix)  Derivatives Contracts entered into in accordance with the Hedging
               Strategy  (as  revised  and agreed with the Agent on or about the
               Restructuring Date);

          (x)  Borrowed  Money owed by one member of the Group to another member
               of the Group (but subject to 18(b));

         (xi)  Borrowed Money in respect of guarantees issued by banks on behalf
               of Group  members  to media  authorities  in Korea and the United
               Kingdom in each case in  connection  with bona fide  arrangements
               for maintenance of media  accreditation in accordance with normal
               industry practice; and

        (xii)  Borrowed  Money in addition to that  permitted by 13.1(i) to (xi)
               not exceeding  (pound)16,000,000 (or its equivalent) in aggregate
               at any given time;

                                     13
<PAGE>

13.2      The sale,  factoring or discounting  of  receivables  and the sale and
          leaseback/sale  and  repurchase of assets will not be permitted  other
          than  the  sale,   factoring  or   discounting  of  receivables  on  a
          non-recourse  basis where the aggregate amount of receivables so sold,
          factored  or  discounted  does  not  exceed   (pound)500,000  (or  its
          equivalent) in aggregate.

14        Permitted Encumbrances/Guarantees

14.1      The definition of Permitted  Encumbrances  at clause 1.2 of the Credit
          Agreement will be revised as set out below:

          "Permitted Encumbrances" means:

          (a)  any Encumbrance  created  pursuant to the terms of this Agreement
               and/or the Security Documents;

          (b)  any right of set-off  arising by operation of law in the ordinary
               course of trading;

          (c)  any  Encumbrance  created in favour of a bank in connection  with
               any bona fide cash management and/or netting arrangements for the
               Group (subject to 17.2(b) below);

          (d)  any lien arising with respect to Taxes of the Group;

          (e)  any  Encumbrance  which the Agent (acting on the  instructions of
               the Majority  Banks) has at any time in writing agreed shall be a
               Permitted Encumbrance;

          (f)  the  Encumbrances  to be  listed  in  schedule  7 to  the  Credit
               Agreement as amended and restated  pursuant to the  Restructuring
               (as agreed  between the Parent and the  Arrangers)  securing  the
               amount set opposite the relevant  Encumbrance in such schedule 7,
               but not any increase in such amount;

          (g)  any Encumbrance given by a member of the Group in connection with
               bona fide arrangements for the maintenance of media accreditation
               of any  member of the Group  provided  that such  members  of the
               Group  purchase  media  (and  give  such  Encumbrances)  only  in
               accordance with normal industry practice;

          (h)  any  Encumbrance  on  assets  acquired  after  the  date  of this
               Agreement  or on assets of a company  which  becomes a Subsidiary
               after  the date of this  Agreement  (which  Encumbrances  were in
               existence at the date of acquisition  or such company  becoming a
               Subsidiary, but were not created in contemplation thereof) but in
               each case only if the maximum amount thereby  permitted from time
               to time to be secured  has not been  increased  on account of, or
               since the date of, the  acquisition  of such asset or the date on
               which such  company  becomes a Subsidiary  and provided  that the
               same is  discharged  in full  within  30 days of the  date of the
               relevant acquisition or such company becoming a Subsidiary

          (i)  any  Encumbrance (a "New  Encumbrance")  created by any member of
               the Group in  substitution  for any  Encumbrance  referred  to in
               paragraph (f) above (an "Existing Encumbrance") provided that (i)
               such Existing  Encumbrance  is  irrevocably  and  unconditionally
               discharged  no  later  than  the  time  of  creation  of the  New
               Encumbrance,  (ii) the New  Encumbrance  relates only to the same
               assets as the  Existing  Encumbrance  and (iii) the  Indebtedness
               secured by the New Encumbrance  does not exceed the  Indebtedness
               secured by the Existing Encumbrance;

          (j)  any  Encumbrance  created in favour of a plaintiff or a defendant
               in any action,  or the court or tribunal before which such action
               is brought,  as security for costs for expenses  where any member
               of the Group is  prosecuting or defending such action in the bona
               fide interest of such member and/or any other member of the Group
               provided   that  the  total   amount   secured  does  not  exceed
               (pound)500,000;

                                       14
<PAGE>

          (k)  the trust established in accordance with the terms of the letters
               dated 21st August 1997 to beneficiaries of the support  agreement
               dated 1st  October  1987 and made  between the Parent (1) and Ted
               Bates Worldwide Inc. (2);

          (l)  liens  arising by  operation  of law or by way of contract in the
               ordinary  course of  business  to the extent  that the same would
               otherwise  arise  by  operation  of law and are not  incurred  in
               connection with the raising of finance;

          (m)  any  Encumbrance  constituted by a Finance Lease  permitted under
               13.1;

          (n)  any  pledge  of  documents  of  title  relevant  to the  asset as
               security for the  liabilities of a member of the Group in respect
               of a documentary credit facility taken out in the ordinary course
               of business;

          (o)  any  retention  of title to goods  supplied  to any member of the
               Group where that  retention  is  required by the  supplier in the
               ordinary course of its trading activities and on customary terms;

          (p)  any  Encumbrance  granted  by a member of the Group over any rent
               deposits  as  security  for  rental  payments  to be made by such
               member of the Group  under or  pursuant  to any lease of premises
               used for its business; and

          (q)  any  Encumbrance not otherwise  permitted  pursuant to paragraphs
               (a)  to  (p)  above  (inclusive)  and  securing  Indebtedness  in
               aggregate not exceeding (pound)2,000,000;

14.2      The  definition  of Permitted  Guarantees  at clause 1.2 of the Credit
          Agreement will be revised as set out below:

          "Permitted Guarantees" means:

          (a)  any guarantee which the Agent (acting on the  instructions of the
               Majority  Banks)  has at any time in  writing  agreed  shall be a
               Permitted Guarantee;

          (b)  any guarantee  given by a member of the Group of the  obligations
               of any  Guarantor,  any guarantee  given by a member of the Group
               which is not a Guarantor of the  obligations of another member of
               the Group which is also not a Guarantor and any  guarantee  which
               constitutes a Permitted Investment (as defined in 17.2 below);

          (c)  any  guarantee  given by any  member of the Group to be listed in
               schedule  9 to the  Credit  Agreement  as  amended  and  restated
               pursuant to the  Restructuring  (as agreed between the Parent and
               the Arrangers)  guaranteeing the amount set opposite the relevant
               guarantee  in such  schedule  9,  but not  any  increase  in such
               amount;

          (d)  any guarantee given by a company which becomes a Subsidiary after
               the date of this Agreement  (which  guarantee was in existence at
               the date such company becomes a Subsidiary and was not created in
               contemplation  thereof) but only if the maximum amount guaranteed
               has not been  increased  on account of or since the date on which
               such company  becomes a Subsidiary  and provided that the same is
               discharged  within 30 days of the  relevant  company  becoming  a
               Subsidiary;

          (e)  any guarantee given by a company in the Group in favour of a bank
               in connection with any bona fide cash  management  and/or netting
               arrangements for the Group (subject to 17.2(b) below);

          (f)  any guarantee  given by a member of the Group in connection  with
               bona fide arrangements for the maintenance of media accreditation
               of any  member of the Group  provided  that such  members  of the
               Group  purchase  media  (and  give  such   guarantees)   only  in
               accordance with normal industry practice;

                                       15

<PAGE>

          (g)  any indemnity  given by a member of the Group  required by a bank
               as  part of its  normal  terms  and  conditions  for  transacting
               business  indemnifying  such bank against costs and losses it may
               sustain as a  consequence  of  accepting  telephone  or facsimile
               instructions  from such member of the Group;  and

          (h)  any  counter  indemnity  given  by any  member  of the  Group  in
               connection with a Bid Bond;

15        Disposals

15.1      The mandatory  prepayment and cancellation of the facilities under the
          Credit  Agreement  will be required  from the proceeds of disposals as
          follows:

15.1.1    Subject to 15.1.2 below,  but without  prejudice to 15.2 below, if any
          member of the Group disposes of any assets (including shares and fixed
          assets) to any person which is not a member of the Group, of which:

          (a)  the  aggregate  Net Proceeds are at  least (pound)500,000 (or its
               equivalent  at  the  date  of the  disposal)  (each  a  "relevant
               disposal"); and

          (b)  the aggregate Net Proceeds of relevant disposals in any financial
               year are in excess of (pound)5,000,000  (or its equivalent at the
               date of disposal),

          the Parent  shall (or shall  procure  that it and the other  Borrowers
          shall),  apply an amount equal to the  aggregate  Net Proceeds of such
          relevant  disposals  which are in excess of  (pound)5,000,000  (or its
          equivalent) in mandatory prepayment and cancellation of the facilities
          under  the  Credit  Agreement  in  accordance  with  the  terms of the
          lntercreditor Agreement.

          "Net Proceeds"  means,  in respect of a disposal of an asset or any of
          the matters referred to in 16.6, the full amount of proceeds  received
          by a member of the Group in respect thereof less the reasonable  costs
          incurred by the relevant  member of the Group in relation  thereto for
          which purpose (a) such proceeds shall be taken to include, in addition
          to consideration  directly  attributable to the disposal of such asset
          or such  matter,  any  amount  owing to and  set-off  by the  relevant
          purchaser  or other  relevant  third party (b) any  proceeds  received
          otherwise  than in cash will be treated as Net Proceeds  only upon the
          subsequent  realisation of cash from such proceeds and (c) "reasonable
          costs  incurred  by  the  relevant   member  of  the  Group"  includes
          reasonable   legal  fees,   agents'   commissions,   auditors'   fees,
          registration   fees  and  Taxes  paid  or  properly  provided  for  in
          accordance with the Appropriate  Accounting Principles (where such Tax
          is likely to become payable within the following 18 months, or, in the
          case of any of the matters referred to in 16.6.1 or 16.6.4 only, where
          the Parent  demonstrates  to the reasonable  satisfaction of the Agent
          that such Tax will become payable after such period);

15.1.2    The  provisions  of 15.1.1  above  will not apply in  relation  to the
          disposals referred to in 15.2.1(a), (c), (d), (e), (f), and (g) below.

15.2      Clause 12.2(d) (Negative  undertaking:  disposals) shall be revised as
          follows:

15.2.1    Each Borrower will not and will procure that none of its  Subsidiaries
          will sell, transfer,  lease,  surrender,  lend or otherwise dispose of
          the whole or any part of its present or future undertakings, assets or
          revenues whether by one or a series of transactions related or not (or
          enter  into any  binding  commitment  to do any of the  same  (whether
          conditional or otherwise)) (each a "disposal") except for:

          (a)  the disposal of  stock-in-trade  in the ordinary course of day to
               day trading;

          (b)  any disposal  for cash on arm's length terms where the  aggregate
               of the greater of the  consideration  and the market value of all
               such  disposals  does  not  exceed   (pound)10,000,000   (or  its
               equivalent)  provided  that the  aggregate  Net  Proceeds of such
               disposal  are applied as (and to the  extent)  required by  1.1.1
               above; and

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<PAGE>

          (c)  any disposal by:

               (i)  a member of the Group to a Guarantor; and

              (ii)  a member of the Group  which is not a  Guarantor  to another
                    member of the Group which is not a Guarantor,

               but so that in each case where any such  asset is  shares,  other
               ownership  interests  in any person or entity,  real  property or
               real  estate  (or  related   insurance   policies),   receivables
               (including  intra-Group debts) or, in each case, rights or claims
               in respect of any such asset and is subject or is expressed to be
               subject to an Encumbrance  pursuant to any Security Document such
               disposal  shall  only be  permitted  either  where  the  Agent is
               satisfied  that  the  guarantee  given  by  the  disposee  of the
               obligations  of the Parent,  Borrowers,  Guarantors  and security
               providers under (inter alia) the Credit Agreement,  the Notes and
               the Security  Documents  is not limited to a greater  extent than
               that given by the disposer  and that either (A) such  Encumbrance
               is not  prejudiced  as a result of such disposal or (B) the asset
               concerned becomes subject to a fully enforceable, legally binding
               Encumbrance  in favour of the  Common  Security  Trustee  and the
               other Finance Parties and Noteholders substantially equivalent to
               or better than such other  Encumbrance or with the consent of the
               Agent (acting on the instructions of the Majority Banks);

          (d)  dealings  with trade  debtors  with  respect to book debts in the
               ordinary course of trading;

          (e)  disposals of cash on arm's length terms not otherwise  prohibited
               by the Credit Agreement and Security Documents;

          (f)  disposals which constitute  Permitted  Investments (as defined in
               17.2 below); and

          (g)  the  disposals  permitted by 16.5  provided  that the proceeds of
               such disposals are applied in accordance with 16.6;

          and so that  where the  asset or  assets  the  subject  of a  disposal
          permitted  by this  paragraph  (whether  pursuant to  15.2.1(a) to (g)
          above or with the prior  written  consent  of the Agent  acting on the
          instructions  of the Majority Banks (but excluding the assets referred
          to in the last  paragraph  of  15.2.1(c)  in the case of any  disposal
          under such clause)) is or are subject to an Encumbrance created by the
          Security Documents, the consent of the Agent (but without prejudice or
          responsibility to or in respect of any other requisite  consent) shall
          be granted  (and shall be deemed to be granted) for the release of the
          Encumbrance  created  by  the  Security  Documents  over  such  assets
          provided that no Default shall have occurred and be continuing neither
          remedied nor waived (and the Agent is  irrevocably  authorised  by the
          Finance Parties to grant such releases or, as appropriate, to instruct
          and/or  authorise the Common  Security  Trustee to grant such releases
          without  reference  to  the  Finance  Parties)  and  the  Agent  shall
          accordingly instruct the Common Security Trustee to grant the relevant
          releases.

16        Zenith

16.1      The Parent will undertake that no member of the Group will  terminate,
          amend or vary (or acquiesce in any termination, amendment or variation
          of) the terms of the Joint Venture  Agreement  dated 27 September 2001
          with Publicis  Group S.A. (the "JVA") in a way which might  reasonably
          be expected to adversely  affect the Group's rights or interests under
          or in respect of the put and call options  contained  therein relating
          to the Group's  shares in Zenith  Optimedia  Group Limited  ("Zenith")
          (except  as  required  by 16.2  below) or which  might  reasonably  be
          expected to  adversely  affect (or delay) the amount of receipt of any
          amount referred to in 16.6 below.

16.2      The Parent shall transfer its shares in Zenith Optimedia Group Limited
          to Sonic Sun  Limited,  an English  wholly-owned  non-trading  solvent
          subsidiary  of the Parent,  in  accordance  with the terms of the JVA.
          Sonic Sun  Limited  will be  subject  to the  guarantee  and  security
          requirements set

                                       17
<PAGE>

          out in  20.1(a) of this term sheet  (save that the  security  will not
          cover the shares in Zenith  while the consent of  Publicis  Group S.A.
          has not been obtained).

16.3      Sonic Sun Limited  will not carry out any  trading,  business or other
          activity or own any  material  assets other than holding the shares in
          Zenith,  acting in relation to the joint  venture  constituted  by the
          JVA, and complying with the call options or exercising the put options
          under  the JVA and will not  incur  any  material  liabilities  of any
          nature  whatsoever  (whether  actual  or  contingent)  other  than (i)
          liabilities for reasonable  professional  fees (ii) liabilities  under
          the JVA (iii) liabilities under the Security  Documents to which it is
          party and (iv) liabilities which will arise if it were wound up;

16.4      Any and all of the Group's right, interest and title in respect of the
          shares in Zenith will be held at all times by Sonic Sun Limited.

16.5      Sonic Sun  Limited  will not  transfer  or  otherwise  dispense of any
          interest  in any of the  shares  it holds  from time to time in Zenith
          other than (i)  pursuant  to the  exercise  of a call  option or a put
          option  under the JVA or (ii) a  disposal  to a person  which is not a
          member of the Group and where the net proceeds of such disposal are at
          least equal to the net  proceeds  which would be received by the Group
          following the exercise of such a put option at such time, in each case
          where the resulting  proceeds are applied in accordance  with 16.6 and
          will not create any Encumbrance over any interest in any of the shares
          it holds from time to time in Zenith except under a Security Document.

16.6      The mandatory  prepayment and cancellation of the facilities under the
          Credit Agreement will be required from the Net Proceeds of:

16.6.1    any  exercise  of the put or call  options  under the JVA or any other
          disposal of shares (or other interests) in Zenith;

16.6.2    any claims for  damages or other  remedies in respect of any breach of
          the put and call options in the JVA;

16.6.3    any   claim   in   respect   of  all   warranties,   indemnities   and
          representations  contained  in the JVA to the extent  connected to the
          put and call options; and

16.6.4    any  Flotation of, or sale or other  disposal of all or  substantially
          all  of  its  assets  and  undertakings  by,  Zenith  or  any  of  its
          Subsidiaries.

17        Acquisition/joint ventures/investments

17.1      Subject to further review by the Arrangers, the acquisitions listed in
          the Earnout  Projections  for 2002 to 2004  provided by the Parent and
          dated 4  February  2002  shall be the basis of the  revised  Permitted
          Acquisitions listed in schedule 12.

17.2      Save for  Permitted  Acquisitions,  each  Borrower  will not, and will
          procure  that  none of its  Subsidiaries  will,  acquire  or make  any
          investment in any companies,  joint ventures or  partnerships or other
          persons or acquire any businesses (or interests therein) (or commit to
          do any of the same (whether conditionally or otherwise)) except for:

          (a)  investments  in the then existing  Guarantors (or a member of the
               Group or a newly formed entity which in each case  simultaneously
               becomes a  Guarantor)  and  investments  by a member of the Group
               which is not a Guarantor in another  member of the Group which is
               not a Guarantor;

          (b)  Permitted Investments (as defined below); and

          (c)  the acquisition of related businesses  (including companies where
               the liability of its  shareholders is limited to their respective
               share  capital in such company but not other  entities)  provided
               that:

                                       18
<PAGE>

               (i)  the  consideration   (without  double  counting  within  the
                    Group),   including,   without   limitation,   any  deferred
                    consideration  (whenever  payable),  and the  obligations in
                    respect of Borrowed  Money of any such  company  immediately
                    following its  acquisition or repaid  directly or indirectly
                    by any member of the Group or otherwise assumed by the Group
                    and taking the value of any  non-cash  consideration  at the
                    higher of its stated  value under the  agreement(s)  for the
                    acquisition  in  question  and  the  market  value  of  such
                    consideration  on the date such  agreement(s)  were  entered
                    into by the Group,  in respect of all such  acquisitions  by
                    the Group (other than consideration  constituted by ordinary
                    shares in the Parent issued or  transferred  to the relevant
                    vendor (or as it may  direct))  shall not exceed  $2,000,000
                    (or its equivalent) in aggregate in any financial year; and

              (ii)  the  consideration  constituted  by  ordinary  shares in the
                    Parent issued or transferred  to the relevant  vendor (or as
                    it may direct)) in respect of any single  acquisition  shall
                    not exceed $20,000,000 (or its equivalent); and

             (iii)  the finance  director of the Parent  delivers a  certificate
                    to the Agent at least 5 Banking  Days  before  any member of
                    the  Group  enters  into  any  commitment   (conditional  or
                    otherwise) to make such an  acquisition in which the finance
                    director of the Parent  confirms  that in his  opinion  (but
                    without any  personal  liability on the part of such finance
                    director):

                    (A)  the  Parent  is  basing  such  certificate  on the most
                         recent financial  information relating to such business
                         which has been obtained by the Parent (acting prudently
                         and  reasonably)  and the Group's latest  forecasts and
                         projections  (which  are fair and  reasonable  and have
                         taken full and proper  account of the business to be so
                         acquired (including, without limitation, all contingent
                         liabilities   relating   to  the   business  to  be  so
                         acquired));

                    (B)  the business to be so acquired is not  insolvent and is
                         EBITDA  positive (as determined in accordance  with the
                         definition of Consolidated  EBITDA in 3.2, but adjusted
                         to exclude the effect of historic  non-recurring  costs
                         which  will no  longer  be  incurred  by that  business
                         following its acquisition);

                    (C)  such acquisition is not, and the Parent it is not aware
                         (after due  enquiry)  of any matter or event  which is,
                         reasonably  likely  to  result in a breach of clause 13
                         (Financial  Covenants) or an Event of Default under any
                         of clauses  14.1(a)  (Non  payment)  or 14.1(e)  (Cross
                         Default) to 14.1.(n) (Analogous  proceedings) inclusive
                         either  immediately  or  within  the  period  ending 12
                         months after the date of such acquisition;

                    (D)  the  Group  is  reasonably  likely  to have  sufficient
                         working  capital  during  the  period  ending 12 months
                         after the date of such acquisition;

                    (E)  after  taking  into  account  any  Capital  Expenditure
                         incurred by the Group in making such  acquisition,  the
                         Group  will  still  be  able,  in  compliance  with the
                         Financial  Covenant  in 3.3,  to  undertake  sufficient
                         Capital  Expenditure  so as to  properly  maintain  its
                         businesses during the period ending 12 months after the
                         date of such acquisition;

                    (F)  in the case of  acquisitions  by  members  of the Group
                         that are not Guarantors, such acquisition is not funded
                         directly or indirectly by any Guarantor,  other than to
                         the extent such funding is a Permitted Investment; and

                    (G)  no Default  has  occurred  which is  continuing  and no
                         Default will arise as a result of such acquisition; and

                                       19

<PAGE>

          (iv) no Default has occurred  which is continuing  and no Default will
               arise as a result of such acquisition, and

          for the  avoidance of doubt,  any such  acquired  businesses  shall be
          immediately subject to the provisions of 13.1 and 20.

          Subject  to the  proviso  below,  "Permitted  Investments"  means  (i)
          investments  in the shares of or other  ownership  interests  in, (ii)
          loans  or  credit  granted  to,  (iii)  disposals  to  (not  otherwise
          permitted under 15.2.1(a) to (e) inclusive or clause  15.2.1(g)),  and
          (iv) guarantees of the  Indebtedness of, any member of the Group which
          is not a Guarantor (or such  investments in  establishing a new entity
          which once formed is a member of the Group  which is not a  Guarantor)
          where the aggregate of such investments,  loans, credit, disposals and
          guarantees  made in the relevant  financial  year,  together  (without
          double  counting) with the Pooling Borrowed Money at any relevant time
          during such financial year, at no time exceeds:

          (a)  (pound)20,000,000  (or its equivalent)  during the financial year
               ending 31 December 2002; or

          (b)  (pound)15,000,000  (or its  equivalent)  during  each  subsequent
               financial year.

          Provided  that,  for the  purposes  of the  definition  of  "Permitted
          Investments":

               (i)  "Pooling  Borrowed  Money" means,  at any relevant time, the
                    aggregate of the Borrowed  Money of any members of the Group
                    which  are  not   Guarantors   under  any  cash   management
                    arrangements  in respect of which any  Guarantor  grants any
                    guarantee,  rights of  set-off or any other  Encumbrance  or
                    grants an intra-Group loan;

              (ii)  the value  attributable  to a disposal  of an asset shall be
                    the market value of the disposed asset; and

             (iii)  the relevant  aggregate limit applicable  during a financial
                    year shall be increased by the amount of (A) any  repayment,
                    release  or  cancellation  (whether  in whole or in part) of
                    loans, credits and guarantees  previously taken into account
                    for the purpose of determining  compliance  with  "Permitted
                    Investments"   during  such  financial  year  and  (B)  cash
                    proceeds  (to the extent  not  already  taken  into  account
                    pursuant to (A)),  (net of related costs and Taxes) received
                    by a  Guarantor  from a member of the  Group  which is not a
                    Guarantor in such  financial  year under a series of related
                    transactions  involving an investment in such  non-Guarantor
                    made by such Guarantor  within 13 months of such receipt and
                    previously taken into account for the purpose of determining
                    compliance with "Permitted  Investments" (to the extent that
                    such net cash  proceeds  do not  exceed  the  amount of such
                    investment so taken into account).

18        Loans and Guarantees

          Each Borrower will not, and will procure that none of its Subsidiaries
          will, make any loans, grant any credit (except for normal trade credit
          in the ordinary  course of  day-to-day  trading) or give any guarantee
          save for:

          (a)  Permitted Guarantees to or for the benefit of any person; and

          (b)  loans or credit to a Guarantor or loans or credit from one member
               of the Group which is not a Guarantor to another  member of Group
               which is not a  Guarantor  and loans or credit  which  constitute
               Permitted Investments.

19        Cash management undertakings

19.1      The Parent will use its best  endeavours  to procure that cash held by
          members  of the  Group  which  are not  Guarantors  and  which  is not
          required  to meet  working  capital  liabilities  will be  repatriated
          directly or indirectly  to the bank account of a Guarantor  located in
          England  and  Wales or the  United  States,  to the  extent  that such
          repatriation can be done in a legal and tax-

                                       20

<PAGE>

          efficient    manner   and   without    incurring   costs   which   are
          disproportionate to the benefit to the Finance Parties.

19.2      The members of the Group will conduct their Cash Pooling  Arrangements
          in the UK, the US and the  Euro-Zone  with a Bank or Banks,  excluding
          the Cash Pooling Arrangements in place as at the date of the execution
          of the Agreement in Principle  with non-Banks in Germany and Italy (to
          be  specifically  identified  in the Credit  Agreement  as amended and
          restated pursuant to the  Restructuring  Deed) and except as otherwise
          agreed in writing with the Agent.

19.3      The Parent  will not permit  any member of the Group  incorporated  or
          formed in the  United  States or in  England  and Wales  that is not a
          Guarantor  to be a party to any  Cash  Pooling  Arrangements  with any
          other  member or members  of the Group,  other than where the value of
          any loans, credit,  rights of set-off,  guarantee or other Encumbrance
          provided  to such  member  or  members  of the Group  does not  exceed
          (pound)500,000  and (for the  avoidance of doubt) such loans,  credit,
          rights of set-off,  guarantee or other  Encumbrance  is subject to the
          provisions of 17.2(b) of this term sheet.

          For these purposes:

          "Cash Pooling  Arrangements" means arrangements for the pooling of the
          balances of any two or more Group  member's bank accounts  pursuant to
          which  arrangements  any such member of the Group  grants a guarantee,
          rights of set-off or any other  Encumbrance  or transfers cash between
          the relevant bank accounts pursuant to an intra-Group loan.

          "Euro Zone" means each country that is a Participating Member State.

          "Participating  Member  State"  means a member  state of the  European
          Union that has  adopted or adopts the single  currency  in  accordance
          with the Treaty.

          "Treaty" means the Treaty establishing the European Economic Community
          being the  Treaty of Rome of 25 March  1957 as  amended  by the Single
          European  Act 1986 and the  Maastricht  Treaty  (which was signed on 7
          February  1992 and came into  force on 1  November  1993) as  amended,
          varied or supplemented from time to time.

20        Guarantees and security

20.1      A guarantee and security  package will be required.  This will include
          (subject to the  limitations  and issues  noted at the end of schedule
          1):

          (a)  guarantees  from,  and first ranking  fixed and floating  charges
               over, all the assets and  undertaking of the members of the Group
               incorporated  in England and Wales listed in Part 1 of schedule 1
               (and the issued share capital of each of these  companies  (other
               than the Parent)  will be the subject of a  pledge/charge  by its
               parent); and

          (b)  to the extent capable of being provided, guarantees from material
               members  of the  Group  incorporated  in  the  US,  Germany,  the
               Netherlands  and Australia as set out in Part 2 of schedule 1 and
               pledges/charges over the issued share capital of those companies.

20.2      All guarantees and security  documents  shall be in form and substance
          satisfactory to the Agent.

20.3      Clause  12.1(o)  will be revised to include an ongoing  obligation  to
          procure that Material Subsidiaries  incorporated in England and Wales,
          the US, Germany and the  Netherlands  provide  guarantees and security
          consistent  with  20.1,  to  the  extent  capable  of  being  provided
          (excluding  any   Subsidiaries   of  the  Parent  which  are  Material
          Subsidiaries as at the  Restructuring  Date but which are not required
          to provide guarantees or security as a condition to the Restructuring,
          so long as the reasons  for such  security  not being so required  are
          continuing). Materiality for this purpose will be based on the revised
          definition of "Material Subsidiary" set out in 23 below.

20.4      The terms and  principles  governing  the taking of security both as a
          condition to the Restructuring and as an ongoing  obligation after the
          Restructuring Date shall be agreed

                                       21

<PAGE>

          between the  Parent,  the Agent and the Common  Security  Trustee in a
          security  memorandum  dated on or about  the  Restructuring  Date (the
          "Security Memorandum").

20.5      The guarantee and security package will be held by the Common Security
          Trustee (or its agents) and will secure all amounts  outstanding under
          (inter  alia)  the  Credit  Agreement,  the  Notes  and  the  Security
          Documents on the basis set out in the Intercreditor Agreement.

21        Prepayments under the Credit Agreement

21.1      All  voluntary and mandatory  prepayments  under the Credit  Agreement
          shall  first be applied  firstly in  prepayment  of  Revolving  Credit
          Advances   outstanding   under  the  Credit  Agreement  prior  to  the
          Restructuring  Date (or any  rollover of such  Advances),  secondly in
          prepayment of all other  outstanding  Revolving Credit  Advances,  and
          thirdly  in pro rata  prepayment  of the  Swingline  Facility  and the
          Overdraft Facility.

21.2      All  prepayments  shall result in the  cancellation  of an  equivalent
          amount of the relevant Commitments.

21.3      Any  prepayment  under  the  Credit  Agreement  shall  be  made in the
          currency  in  which  the  relevant  Advance  or  Utilisation  is  then
          denominated  together  with:  (a)  accrued  interest  to the  date  of
          prepayment; (b) any additional amount payable under clauses 10.5, 16.2
          or 16.5 of the Credit  Agreement;  (c) all other  sums  payable by the
          Borrowers to the relevant  Finance Parties under the Credit  Agreement
          including,  without  limitation,  any  accrued  commitment  commission
          payable  under clause  9.1(c) of the Credit  Agreement and any amounts
          payable under clause 15.1 of the Credit  Agreement,  and (d) where the
          Facilities are prepaid and cancelled in full, the Deferred Fee and the
          P1K Management Fee and interest accrued  thereon.

22        Material Adverse Effect revisions

22.1      "Material  Adverse  Effect" to be  redefined as meaning a reference to
          any effect,  event or circumstance  (on its own or in combination with
          other effect, events or circumstances):

          (a)  which is, or is reasonably  likely to be,  materially  adverse to
               (i)  the  ability  of any  of  the  Parent,  the  Borrowers,  the
               Guarantors  or  the  security  providers  to  perform  any of its
               obligations   under  the  Bank  Finance  Documents  or  (ii)  the
               business,  assets or financial  condition of the Group taken as a
               whole; or

          (b)  results in, or is reasonably  likely to result in any of the Bank
               Finance  Documents  not being  legal,  valid and binding on, and,
               enforceable substantially in accordance with their terms, against
               any party thereto.

          "Bank Finance Documents" will be defined to mean the Credit Agreement,
          the Restructuring  Deed, the Substitution  Certificates,  the Borrower
          Accession Agreements, the Overdraft Borrower Accession Agreements, the
          fee letters, the Security Documents,  the Intercreditor Agreement, the
          Agreement in Principle and any documentation from time to time entered
          into between the Overdraft  Borrowers and the Overdraft  Bank relation
          to the Overdraft Facility,

22.2      Clause  14.1(t)  (Material  Adverse  Effect)  to be amended so that an
          Event  of  Default   arises  upon  the  occurrence  of  any  event  or
          circumstance   which,   in  opinion  of  the  Majority  Banks  (acting
          reasonably):

          (a)  is, or is reasonably likely to be, materially  adverse to (i) the
               ability of any of the Parent,  the  Borrowers,  the Guarantors or
               the  security  providers  to pay any sum due from it under any of
               the  Bank  Finance  Documents,  (ii)  the  ability  of any of the
               Parent,  the Borrowers,  the Guarantors or the security providers
               to comply with any of its obligations or  undertakings  expressed
               to be assumed by it under 1.1,  1.2,  1.4 and 1.5 at the time and
               in the manner  stipulated in those  paragraphs of this term sheet
               (or within the grace period  applicable  under 2 (Breach of other
               obligations)),  (iii)  the  ability  of any of  the  Parent,  the
               Borrowers,  the  Guarantors  or the security  providers to comply
               with any of its obligations

                                       22

<PAGE>

               or undertakings  expressed to be assumed by it under clauses 12.2
               (Negative  undertakings),  or 13  (Financial  covenants)  of  the
               Credit  Agreement,  (iv) the  ability of any of the  Parent,  the
               Borrowers,  the  Guarantors or the security  providers to perform
               any of its obligations under any of the Security Documents or (v)
               the business, assets or financial condition of the Group taken as
               a whole; or

          (b)  results in, or is reasonably  likely to result in any of the Bank
               Finance  Documents  not being  legal,  valid and binding on, and,
               enforceable substantially in accordance with their terms, against
               any party thereto.

23        Material Subsidiary revisions

23.1      "Material  Subsidiary" to be redefined to mean any member of the Group
          which is party to (inter  alia) the  Credit  Agreement  or a  Security
          Document or any other Subsidiary of the Parent:

          (a)  whose EBITDA, together with that of its Subsidiaries, is equal to
               or exceeds 3 per cent.  of the  Consolidated  EBITDA of the Group
               (where EBITDA shall be construed appropriately in respect of such
               member  of  the  Group  by   reference  to  the   definition   of
               Consolidated EBITDA); or

          (b)  whose gross revenues, together with those of its Subsidiaries, is
               equal  to or  exceeds  3 per  cent.  of  the  consolidated  gross
               revenues of the Group; or

          (c)  to which has been  transferred  (whether by one  transaction or a
               series of transactions,  related or not) all or substantially all
               of the assets of another  member of the Group which,  immediately
               prior  to that  transaction  or any of the  transactions  in that
               series, was a Material  Subsidiary as determined under paragraphs
               (a) or (b) above; or

          (d)  which is a holding  company of a Material  Subsidiary  determined
               under paragraphs (a) to (c) above,

          as  determined  by reference to the then latest  quarterly  management
          accounts  of  the  Group  delivered  under  1.2,  the  latest  audited
          consolidated  financial  statements  for the time  being of the  Group
          delivered  under  1.1  and  such  other  financial  statements  of the
          relevant  members  of the Group  (prepared  on the same  basis as such
          financial  statements delivered in accordance with 1 in respect of the
          same period to which such other  financial  statements  relate) as are
          necessary  for  the  relevant  Compliance   Certificate  or  Auditors'
          Financial  Covenants  report to be duly  completed  and  delivered  in
          accordance with 1.4 and 1.5, provided that (i) in the case of a member
          of the Group  acquired  after the end of the  period to which the then
          latest  financial  statements of the Group  delivered under 1.1 or 1.2
          relate,  the reference to such then latest financial  statements shall
          (until financial statements have been delivered under such clauses for
          the  period  in which  such  acquisition  is made) be  deemed  to be a
          reference  to  a  consolidation   (in  accordance  with  the  Original
          Accounting  Principles) of such then latest  financial  statements and
          the latest  financial  statements of such acquired member of the Group
          for such  period  and (ii) a report  of the  Auditors  to the  Finance
          Parties  that a  Subsidiary  of  the  Parent  is or is not a  Material
          Subsidiary (in  accordance  with this  definition)  when delivered (as
          part of the  Auditors'  report or otherwise)  shall be conclusive  and
          binding on the parties hereto.

24        Transferability

24.1      The  Banks  will  be  permitted  to  transfer  their  Commitments  and
          Contributions to any bank or financial  institution after consultation
          with the Parent but without requiring the consent of the Parent or the
          Borrowers, subject to the Borrowers being not obliged to gross up to a
          greater extent than they were in relation to the relevant transferor.

24.2      The definition of Qualifying Bank will be updated and will speak as at
          the Restructuring Date.

                                       23

<PAGE>

25        Other revisions to the Facilities Agreement

25.1      Representations and warranties appropriate to the secured transactions
          shall be made  including a  representation  and warranty in respect of
          all information and projections  provided to the Arrangers in relation
          to the Restructuring.

25.2      An  additional  Event of  Default  will occur  under  clause 14 of the
          Credit Agreement where there is an Event of Default (as defined in the
          Amended and Restated  Note Purchase  Agreement)  under the Amended and
          Restated  Note Purchase  Agreement  regardless of any waiver under the
          Amended and Restated Note Purchase Agreement.

25.3      The Parent  undertakes  to  promptly  provide  the Agent with  written
          notice of the occurrence of any Control Event.  For these purposes (1)
          "Control  Event"  means (A) the  announcement,  by or on behalf of any
          person or associate  person or persons,  in accordance with Rule 25 of
          the City Code on Takeovers and Mergers, of a firm intention to make an
          offer to the  holders  of the  ordinary  shares of the  Parent or of a
          proposal  for a scheme of  arrangement,  which offer or  proposal,  if
          accepted or approved (as the case may be) by the  requisite  number(s)
          of holders  and if the other  conditions  thereto  were  satisfied  or
          waived, would result in a Change of Control (but, for the avoidance of
          doubt,  "Control Event" shall not include any preliminary  approach or
          negotiations by any person or group of person to or with the Parent in
          respect of any such offer), (2) a "Change of Control" shall occur if a
          person  (whether  alone or  together  with any  associated  person  or
          persons)  becomes the  beneficial  owner of shares in the issued share
          capital of the Parent  carrying the right to exercise more than 50% of
          the votes  exercisable at a general meeting of the Parent,  and (3) an
          "associated  person" means, in relation to any person, a person who is
          (i) acting in concert  (as defined in the City Code on  Takeovers  and
          Mergers)  with that person or (ii) a  connected  person (as defined in
          section  839 of the  Income  and  Corporation  Taxes Act 1988) of that
          person.

26        Most favoured lender status

          None  of  the  Parent,  the  Borrowers,  the  Guarantors  or  security
          providers  will  enter  into  any  modification  or  amendment  to any
          existing credit facility or other  financing  document,  or enter into
          any new credit facility or financing document, that contains financial
          covenants,  definitions or default  provisions  more favourable to the
          lender or financier  thereunder  unless the Finance  Parties are given
          the option of receiving the benefit of such more favourable provisions
          at the same time and on the same terms.  No  additional  guarantees or
          security  will be provided to the  Noteholders  or any other  creditor
          unless  similar  guarantees  and  security  are given in favour of the
          Finance Parties.

          For the  avoidance of doubt and in addition to the  foregoing,  to the
          extent that the Group enters into any modification or amendment to the
          Note Purchase Agreements that contains definitions, covenants or other
          provisions more favourable to the Noteholders  thereunder or under the
          term sheet  entitled "Term Sheet - Indicative Key Terms and Conditions
          of the Proposed  Amendments"  attached to the  Agreement in Principle,
          the Finance Parties shall be given the option of receiving the benefit
          of such more  favourable  provisions  at the same time and on the same
          terms.

27        Conditions precedent to the Restructuring

          The  amendments  to be made to the Credit  Agreement  pursuant  to the
          Restructuring  shall  take  effect  on and from the date on which  the
          Agent  notifies the Parent and the Finance  Parties that the Agent has
          received the  documents  and evidence  specified  here in 27 , in each
          case,  in form and substance  satisfactory  to it, or, as the case may
          be, that the  requirement to provide any of such documents or evidence
          has been waived by the Majority Banks.

27.1      Corporate

          Directors certificates from each of the Parent, Borrowers,  Guarantors
          and  security  providers  annexing  (inter  alia)  (i)  copies  of the
          constitutional documents of each such company or entity,

                                       24

<PAGE>

          (ii) appropriate  supervisory and management board resolutions of each
          such  company  or entity  evidencing  approval  of the entry  into the
          Restructuring, and (iii) signatures of those persons authorised by the
          supervisory and management  board  resolutions of each such company or
          entity  referred  to  in  (ii)  to  sign  any  of  the   Restructuring
          documentation  and  to  execute  all  such  undertakings,  statements,
          certificates,  notices, acknowledgements and other documents as may be
          required to be done,  signed and executed by or on behalf of each such
          company or entity in connection with the  Restructuring  documentation
          and otherwise in relation to or ancillary to the same.

27.2      Credit Documents

27.2.1    The Restructuring Deed, duly executed by all parties to it.

27.2.2    The Agreement in Principle, duly executed by all parties to it.

27.2.3    A copy,  certified  as a true  copy by an  Authorised  Officer  of the
          Parent, of the Amended and Restated Note Purchase  Agreement in a form
          and substance  satisfactory  to the Agent  together with  confirmation
          that all  conditions to Amended and Restated  Note Purchase  Agreement
          becoming  effective  (other  than in respect of the  amendment  of the
          Credit  Agreement in  accordance  with the terms of the  Restructuring
          Deed) have been satisfied.

27.3      Security Documents

27.3.1    The Security Memorandum, duly executed.

27.3.2    All Security Documents and other documents required in accordance with
          the Security  Memorandum in each case in accordance with the basis set
          out in the Security Memorandum.

27.3.3    The Intercreditor Agreement, duly executed by all the parties thereto.

27.3.4    The Common  Security  Trust  Deed,  duly  executed  by all the parties
          thereto.

27.3.5    The Pledge Agreement to be executed by Cordiant  Communications  Group
          plc, Cordiant Holdings GmbH, Bates Deutschland  Holding GmbH and Bates
          Germany  Werbeagentur  GmbH  over the  shares in the  relevant  German
          Subsidiaries.

27.3.6    The  Abstract  Acknowledgement  of  Indebtedness  to  be  executed  by
          Cordiant Communications Group plc.

27.4      Opinions

27.4.1    An opinion of Norton Rose dated not more than 5 Banking  Days prior to
          the Restructuring Date.

27.4.2    Local law legal opinions in each  jurisdiction  in which any Borrower,
          Guarantor or security  provider is incorporated from legal advisers to
          the  Agent,  the Banks and the Common  Security  Trustee in respect of
          (inter alia) the Restructuring  Deed, the Credit Agreement (as amended
          in accordance with this term sheet) and the Security Documents.

27.4.3    US  law  legal  opinion  from  legal  advisers  to  the  Parent  where
          appropriate  in  respect  of (inter  alia) due  incorporation  of, and
          execution of the  relevant  documents  by, any  Borrower  Guarantor or
          security provider incorporated or formed in the US.

27.5      Financial

27.5.1    A report from KPMG addressed (among others) to the Finance Parties and
          the Parent  including  confirmation  that the Finance  Parties and the
          Parent may rely thereon.

                                       25

<PAGE>

27.5.2    A report from  PricewaterhouseCoopers  addressed (among others) to the
          Finance Parties  including  confirmation  that the Finance Parties may
          rely thereon.

27.5.3    A  letter  from the  Auditors  confirming  that  they  continue  to be
          appointed as the auditors of the Parent, and confirming that they will
          provide the Auditors report in 1.5.

27.5.4    A revised Hedging Strategy Letter, duly executed.

27.5.5    A  copy,  certified  as a true,  complete  and  up-to-date  copy by an
          Authorised  Officer of the Parent, of the Group structure book and the
          Group structure charts.

27.5.6    A  copy,  certified  as a true,  complete  and  up-to-date  copy by an
          Authorised Officer of the Parent of the agreed form financial model.

27.5.7    A list,  certified as true,  complete and  up-to-date  of the material
          inter-Group loans.

27.5.8    Copies,  certified  as a true,  complete and  up-to-date  copies by an
          Authorised  Officer  of  the  Parent,  of  the  audited   consolidated
          financial  statements  of the Group for the  financial  year  ended 31
          December  2001   (together  with  the  Group's   preliminary   audited
          consolidated  financial  statements  for  that  financial  year),  the
          quarterly  management  accounts of the Group for the quarter  ended 31
          December 2001, and the monthly management accounts for the month ended
          28 February  2002,  (and which shall be deemed to have been  delivered
          pursuant to 1.11.2, and 1.3).

27.6      Transaction Costs

27.6.1    The co-ordination fee letter referred to in 4.1, together with payment
          of the fees referred to therein.

27.6.2    Payment of the restructuring arrangement fee for the Banks referred to
          in 4.2.

27.6.3    The  agency fee  letter,  the  swingline  fee  letter,  and the Common
          Security Trustee fee letter referred to in 4.4,  together with payment
          of any fees referred to in such letters which are payable on or before
          the Restructuring Date.

27.6.4    Receipt by the Agent of the other fees,  expenses and Taxes payable by
          the Parent in accordance  with 4.5 and the terms of the  Restructuring
          Deed.

27.7      Miscellaneous

27.7.1    Either:

          (a)   a copy, certified as a true copy by an Authorised Officer of
                the Parent of all  consents,  authorisations,  licences  and
                approvals   required  by  the  Parent  and  each   Borrower,
                Guarantor and security provider to authorise, or required by
                the  Parent  and  each  Borrower,   Guarantor  and  security
                provider  in  connection  with,  the  execution,   delivery,
                validity,  enforceability  and  admissibility in evidence of
                the  Restructuring  documentation and the performance by the
                Parent and each Borrower, Guarantor and security provider of
                its   respective   obligations   under   the   Restructuring
                documentation, or

          (b)   a certificate  signed by an Authorised Officer of the Parent
                that no such  consent,  authorisation,  licence or  approval
                referred  to in (a) above is  required  by the Parent or any
                Borrower, Guarantor or security provider.

27.7.2    A certificate from an Authorised Officer of the Parent confirming that
          utilisation  in full of the  Facilities  (as  amended  pursuant to the
          Restructuring)  would not render the Parent or any  Borrower in breach
          of any  restriction  on  borrowings  applicable  to the  Parent or any
          Borrower in its respective constitutional documents or elsewhere.

27.7.3    Evidence of the repayment of the Korean debenture stock.

                                       26

<PAGE>

27.7.4    Evidence that Sonic Sun Limited has acceded to the JVA and that all of
          the Group's  right,  interest  and title to shares in Zenith have been
          transferred   to  Sonic  Sun  Limited  and  copies  of  the  documents
          evidencing  such  accession and transfer  certified by and  Authorised
          Officer of the Parent as true, complete and up-to-date.

27.7.5    Copies,  certified  as true  copies by an  Authorised  Officer  of the
          Parent of all other committed credit facilities of the Group which are
          assumed to be in place in the  financial  model  provided  pursuant to
          paragraph 27.5.6 above, and any necessary consents to the amendment of
          the Credit Agreement in accordance with this term sheet required under
          the  terms  of  those  facilities  or  written  confirmation  from  an
          Authorised Officer of the Parent that no such consents are required.

27.7.6    A certificate of an Authorised  Officer of the Parent confirming that,
          immediately  following the Restructuring  Date, the Group will have no
          Encumbrances other than Permitted Encumbrances.

27.7.7    A certificate of an Authorised  Officer of the Parent confirming that,
          immediately  following the Restructuring  Date, the Group will have no
          Borrowed  Money other than as  permitted  by the Credit  Agreement  as
          amended and restated in accordance with the Restructuring.

27.7.8    A certificate of a director of each Additional  Overdraft Borrower (as
          previously  agreed by the Banks to  accede  to the  Credit  Agreement)
          confirming  that  utilisation by it of the Overdraft  Facility in full
          would not cause any borrowing limit binding on it to be exceeded.

27.7.9    Evidence that each Additional Overdraft Borrower (as previously agreed
          by the Banks to accede to the  Credit  Agreement)  has  acceded to the
          Deed of Cross  Guarantee  dated 11  September  2000 in  favour  of the
          Overdraft Bank.

                                       27

<PAGE>

                                   Schedule 1
                                Security Package
PART 1

Companies  incorporated  in England  and Wales to provide  guarantees  and first
ranking fixed and floating charges over all of their assets and undertaking. The
issued  share   capital  of  each  of  these   companies   (excluding   Cordiant
Communications  Group plc.) is to be the  subject of a pledge / charge  given by
its shareholders,  which in the case of shareholders incorporated in England and
Wales will be contained in the relevant  shareholder's  first  ranking fixed and
floating charges.

1    Cordiant Communications Group plc;

2    Cordiant Group Limited;

3    Bates Overseas Holdings Limited;

4    Bates Europe Limited;

5    Cordiant (US) Holdings Limited;

6    Garrott Dorland Crawford Holdings Limited;

7    Atlas Advertising Limited;

8    Bates UK Limited;

9    Swotplus Limited;

10   Deckchair Studio Limited;

11   Ted Bates Holdings Limited;

12   The Decision Shop Limited;

13   Healthworld UK Holdings Limited;

14   Bates Healthworld Limited;

15   PSD Associates Limited

16   Bamber Forsyth Limited;

17   Fitch Limited;

18   Fitch International Limited;

19   Fitch Worldwide Limited;

20   Business Communications International Group Limited;

21   C&FD (Holdings) Limited;

22   Corporate & Financial Design Limited;

23   Financial Dynamics Holdings Limited;

                                       28

<PAGE>

24   Financial Dynamics Limited;

25   Bulletin lnt. Limited;

26   Bulletin lnt. (UK) Limited;

27   ICM International Limited;

28   PCI Livedesign Limited;

29   Cordiant Overseas Holdings Limited;

30   Cordiant Property Holdings Limited;

31   Healthworld Holdings Limited[1];

32   Milton Marketing Group Limited[1];

33   Headcount WW Field Marketing Limited[1];

34   Lighthouse Holdings (UK) Limited[1];

35   Clarion Communications PR Limited[1];

36   CCG.XM Holdings Limited[1];

37   CCG.XM[1];

38   XMSS Limited;

39   Colwood Healthworld Limited;

40   Fitch Design Consultants Limited;

41   Milton Marketing Limited[1];

42   Connect Five Limited[1];

43   Connect Six Limited[1];

44   Propose Two Limited[1];

45   Secure Two Limited[1];

46   Connect One Limited1;

47   N.A.S.A. 2.0 London Limited;

48   Scholz & Friends London Limited[6]; and

49   Sonic Sun Limited[2]

PART 2

Companies or other  entities  incorporated  in (or formed under the laws of) the
US, Germany,  the Netherlands and Australia to provide  guarantees and the share
capital  (or  equivalent)  of which  shall be the  subject of pledges / charges.

                                       29

<PAGE>

US companies

1    Cordiant US Holdings, Inc.;

2    Healthworld Corporation;

3    Bates Healthworld Inc.;

4    Healthworld International Holdings Inc.;

5    Bates Worldwide (Delaware) Inc.;

6    Bates Advertising USA Inc.;

7    Bates Churchill Public Relations Inc.;

8    Bates Churchill Advertising Inc.;

9    Interactive Edge Inc.;

10   Lighthouse Global Network Inc.;

11   Fitch Inc.;

12   The Leonhardt Group Inc.;

13   Morgen Walke Associates Inc.;

14   Primo Angeli Inc.;

15   CCG.XM Holdings Inc.;

16   CCG.XM Inc.;

17   Microarts Corporation;

18   FaIk Healthworld Inc.;

19   The Decision Shop Inc.;

20   S&S MCC AND MCC Inc.;

21   Channelex Inc.;

22   DWP Bates Technology LLC.;

23   Cordiant Finance Inc.;

24   Peclers Pavis North America, Inc.; and

25   Drummer Associates Inc.

German companies

1    Cordiant Holdings GmbH;

2    Bates Deutschland Holding GmbH;

3    Bates Germany Werbeagentur GmbH;

                                       30

<PAGE>

4    XCEED! Agentur Fur Medienberatung Und Innovative Kommunikation GmbH;

5    EMC Starke & Gerlach GmbH; and

6    N.A.S.A. 2.0 GmbH.

Dutch companies

1    Chafma BV;

2    Bates Nederland Holding BV[3]; and

3    Cordiant Finance B.V[4].

Australian companies

1    Cordiant Communications (Australia) Pty Limited; and

2    Cordiant Communications Group Australia Pty Limited[5]

Notes to Schedule 1:

1    The  share  pledges  over the  shares of  non-US  subsidiaries  owned by US
     companies and the guarantees and security given by non-US  subsidiaries  of
     US companies will be limited to the extent required to avoid adverse US tax
     implications.  Notwithstanding the foregoing,  to the extent that any share
     pledges,  guarantees  and/or  security  is  given  for the  benefit  of the
     Noteholders or to otherwise secure obligations  incurred in connection with
     the Amended and Restated Note Purchase  Agreement and are not given for the
     benefit of the  Finance  Parties  or to  otherwise  secure the  obligations
     incurred in connection  with the Credit  Agreement,  recoveries  under such
     share  pledges,   guarantees   and/or  security  shall  be  shared  by  the
     Noteholders  and  the  Finance  Parties   pursuant  to  the  terms  of  the
     Intercreditor Agreement.

2    Sonic Sun Limited will be subject to the guarantee and security  package as
     stated in  20.1(a) of this term sheet  (though  any charge  over the shares
     owned by Sonic Sun  Limited  in Zenith  shall be, as stated at 16.2 of this
     term sheet,  subject to the obtaining of the consent of the other  party(s)
     to the JVA). In addition,  a charge shall be taken over Sonic Sun Limited's
     rights (and over the Parent's rights remaining after the transfer of shares
     described  at 16.2 of this term  sheet),  under or in  connection  with the
     JVA,  including the put and call options,  and the proceeds resulting from
     completion  of the  exercise  of any of these  options as stated in 16.5 of
     this term sheet.

3    No  charge  will be  taken  over  the 35%  minority  shareholding  in Bates
     Nederland  Holding B.V. The shares owned by Chafma B.V. in Bates  Nederland
     Holding  B.V.  will be the  subject  of a Dutch  law  share  pledge.  Bates
     Nederland Holding B.V. will not be required to give a guarantee.

4    Cordiant  Finance  B.V. is the company to which the Euro cash pool is swept
     under the Euro cash pooling arrangements.  Accordingly it is required to be
     subject to the guarantee and security package  arrangements  outlined at 20
     of this term  sheet.  In  addition  it will be required to provide a charge
     over its bank accounts.

5    No  charge   will  be  taken  over  the   41.59%  of  shares  in   Cordiant
     Communications Group Australia Pty Limited owned by Cordiant Communications
     (Australia)  Pty  Limited.  The shares  owned by Chafma  B.V.  in  Cordiant
     Communications  Group  Australia Pty Limited will be the subject of a share
     charge.

6    No charge  will be  provided  over the  shares  in Scholz & Friends  London
     Limited  so long as it is a  direct  or  indirect  Subsidiary  of  Scholz &
     Friends  AG. The Parent  will use  reasonable  endeavours  to procure  that
     Scholz & Friends London Limited enter into a guarantee, if,

                                       31

<PAGE>

     however,  Scholz & Friends  London  Limited does not enter into a guarantee
     then it will not be  permitted  to accede  to the  Credit  Agreement  as an
     Overdraft Borrower.

                                       32

<PAGE>

                                   EXHIBIT B

                            Noteholders' Term Sheet

<PAGE>

                        CORDIANT COMMUNICATIONS GROUP PLC
                             CORDIANT FINANCE, INC.

            Term Sheet -- Indicative Key Terms and Conditions of the
                               Proposed Amendments

Issuer:                       Cordiant Finance, Inc. (the "Issuer").

Parent Guarantor:             Cordiant  Communications Group plc (the "Company")
                              and, together with its Subsidiaries, the "Group").

Existing Notes:               US$175,000,000  7.61% Guaranteed  Senior Notes due
                              2011 (the "Existing  Notes" and, as amended by the
                              amendments   contemplated  herein,  the  "Notes"),
                              issued   under   the   separate    Note   Purchase
                              Agreements,  dated as of April 5, 2001,  among the
                              Issuer,   the  Company  and,   respectively,   the
                              purchasers  identified therein (the "Existing Note
                              Purchase Agreements").

Amendment
and Restatement:              The  Existing  Note  Purchase  Agreements  will be
                              amended  and  restated  pursuant to an Amended and
                              Restated Note Purchase Agreement (the "Amended and
                              Restated  Note  Purchase  Agreement")  which  will
                              contain  waivers  of any  Defaults  or  Events  of
                              Default   under   the   Existing   Note   Purchase
                              Agreements   that  have  been  identified  to  the
                              holders  of the  Notes  prior to the date on which
                              the Amended and Restated Note  Purchase  Agreement
                              is executed.

Interest:                     The interest rate on the Notes will be permanently
                              increased to 9.25% per annum  (effective as of the
                              Effective  Date (as defined  below)).  The default
                              rate of interest  for the  existing  Notes will be
                              modified accordingly.

                              Prior  to the Put  Elimination  Date  (as  defined
                              below),  interest  on the  Notes  will be  payable
                              quarterly.  On and after the Put Elimination Date,
                              interest    on   the   Notes   will   be   payable
                              semi-annually.

Fees:                         A  participation  fee of 0.50% of the  outstanding
                              principal  of the Notes  shall be  payable  on the
                              Effective Date.

                              A  management  fee of  0.50%  of  the  outstanding
                              principal  of the Notes  shall be  payable  on the
                              Effective Date.

<PAGE>

PIK Management Fee:           The Company shall pay an additional management fee
                              (the "P1K Management Fee") to each holder of Notes
                              to  be  calculated  as a  percentage  fee  on  the
                              aggregate  outstanding  principal  amount  of  the
                              Notes  on the  date of  calculation  and  shall be
                              calculated   quarterly  in  accordance   with  the
                              following  table showing the ratio of Consolidated
                              Gross Borrowings to Consolidated EBITDA:

               Consolidated Gross Borrowings: Consolidated EBITDA
-------------------------------------------------------------------------------
03/2002  [] 4.60  >4.60 but []4.84  >4.84 but []5.08   >5.08 but []5.32  > 5.32
06/2002  [] 6.25  >6.25 but []6.81  >6.81 but []7.38   >7.38 but []7.94  > 7.94
09/2002  [] 3.56  >3.56 but []3.84  >3.84 but []4.13   >4.13 but []4.41  > 4.41
12/2002  [] 3.37  >3.37 but []3.71  >3.71 but []4.06   >4.06 but []4.40  > 4.40
03/2003  [] 3.40  >3.40 but []3.59  >3.59 but []3.77   >3.77 but []3.96  > 3.96
06/2003  [] 3.28  >3.28 but []3.40  >3.40 but []3.52   >3.52 but []3.63  > 3.63
09/2003  [] 3.22  >3.22 but []3.35  >3.35 but []3.49   >3.49 but []3.62  > 3.62
12/2003  [] 2.89  >2.89 but []3.02  >3.02 but []3.15   >3.15 but []3.27  > 3.27
03/2004  [] 2.89  >2.89 but []3.00         -                  -              -
06/2004  [] 2.70  >2.70 but []3.00         -                  -              -
09/2004  [] 2.70  >2.70 but []3.00         -                  -              -
---         -----       -----             -----             -----          -----
Fee         0.00%       0.50%             1.00%             1.50%          2.00%

                              The PIK Management  Fee shall be calculated  using
                              the Company's  quarterly  compliance  certificates
                              but shall not be payable by the Company  until the
                              earlier  of (i)  the  prepayment  in  full  of the
                              Notes,  (ii) the Bank Refinancing Date (as defined
                              below),  (iii)  any  enforcement  of the  security
                              referred    to    in    the    section    entitled
                              "Security/Guarantees"   below,  (iv)  any  of  the
                              Events of Default described in paragraph (h), (i),
                              (j) or  (k) of  Section  11 of the  Existing  Note
                              Purchase  Agreements,  or (v)  any  of  the  Notes
                              becoming due and payable, whether automatically or
                              by  declaration.  Any PIK  Management  Fee that is
                              payable  in respect of any  quarter  shall  accrue
                              interest at 9.25% per annum,  which interest shall
                              accrue  but  shall  not be  payable  until the PIK
                              Management Fee is payable. The accrual of interest
                              on the PIK  Management  Fee shall  begin as of the
                              quarter-end   date   shown   on   the   compliance
                              certificate.

                              To the  extent  that the "New  Money"  portion  of
                              outstandings and commitments  under the Syndicated
                              Loan  Agreement  (as defined  below) is repaid and
                              cancelled  in  full  at  any  time  or  banks  and
                              financial  institutions  party  to the  Syndicated
                              Loan  Agreement (the "Banks")  otherwise  agree to
                              eliminate  the  "priority"  treatment of such "New
                              Money" portion of the Syndicated Loan Agreement in
                              the Intercreditor  Agreement (as defined below) at
                              any time, any future

                                       2

<PAGE>

                              accretion of the PIK Management Fee shall cease at
                              the  later of any of those  times and  January  1,
                              2003 (it being  understood that any PIK Management
                              Fee that has been calculated for any quarter prior
                              to such time shall  continue  to be payable at the
                              relevant  time of  payment as  provided  above and
                              will  continue  to  accrue   interest  until  such
                              payment date).

Refinancing Put:              On the Bank  Refinancing  Date (as defined below),
                              each  holder of Notes will be  entitled to require
                              the Company to prepay its Notes,  at a price equal
                              to 100% of the  outstanding  principal  amount  of
                              such Notes plus accrued interest,  the accrued PIK
                              Management  Fee (if any)  (together  with  accrued
                              interest  thereon) and the  Make-Whole  Amount (if
                              any)  (including  all deferred  amounts in respect
                              thereof and accrued interest  thereon) at the time
                              of such  prepayment  (such right being referred to
                              as the "Refinancing  Put"). The Company shall give
                              at least 30 days (but not more than 45 days) prior
                              written  notice to each holder of the Notes of the
                              occurrence  of the  Bank  Refinancing  Date.  Each
                              holder may elect  whether to accept or reject such
                              prepayment.  If a  holder  does  not  reply to the
                              Company  prior to the first  time the  Refinancing
                              Put shall become exercisable, such holder shall be
                              deemed to have accepted such prepayment  unless it
                              has  specifically   rejected  such  prepayment  in
                              writing.   The   Company   will   make   all  such
                              prepayments to holders  exercising the Refinancing
                              Put at the same time as any  payments  are made in
                              connection  with the repayment or  refinancing  of
                              the   Syndicated   Loan   Agreement.   The   "Bank
                              Refinancing   Date"   means  the  earlier  of  (i)
                              November 8, 2004 or (ii) the date any  refinancing
                              or  repayment  in  full  of  the  Syndicated  Loan
                              Agreement is consummated.

Elimination of
Refinancing Put:              If all  of  the  Put  Elimination  Conditions  (as
                              defined   below)   are   satisfied   on  the  Bank
                              Refinancing  Date,  the  Refinancing  Put shall be
                              eliminated  and  shall no longer be in force or of
                              any effect.  The date on which the Refinancing Put
                              is so eliminated  is hereafter  referred to as the
                              "Put Elimination  Date". The following  conditions
                              shall  be   defined   as  the   "Put   Elimination
                              Conditions":

                              (i)    the ratio of Consolidated  Gross Borrowings
                                     to  Consolidated  EBITDA on each of the two
                                     most recent testing dates for such covenant
                                     shall not have been greater than 2.50:1;

                                       3

<PAGE>

                              (ii)   the   ratio  of   Consolidated   EBITDA  to
                                     Consolidated  Net Interest  Expenditure  on
                                     each of the two most recent  testing  dates
                                     for such covenant  shall have been not less
                                     than 6.00:1;

                              (iii)  no Default  or Event of Default  shall have
                                     occurred which is continuing;

                              (iv)   the    representations    and    warranties
                                     contained in the Amended and Restated  Note
                                     Purchase    Agreement    corresponding   to
                                     Sections 5.1, 5.4,  5.8, 5.9,  5.10,  5.11,
                                     5.12,  5.15 (as to no defaults  under other
                                     indebtedness  only),  5.18  and 5.19 of the
                                     Existing Note Purchase  Agreements shall be
                                     true and correct at such time as if made at
                                     such  time  and  the  Company   shall  have
                                     delivered an Officer's  Certificate to such
                                     effect;

                              (v)    the  Company   shall  have   delivered   an
                                     Officer's Certificate to the effect that it
                                     is not aware  (after  due  inquiry)  of any
                                     matter or event which is reasonably  likely
                                     to result in a breach  of the  Sections  in
                                     the  Amended  and  Restated  Note  Purchase
                                     Agreement   setting   forth  the  financial
                                     covenants  or an Event of Default  under of
                                     any of the  Sections  in  the  Amended  and
                                     Restated Note Purchase  Agreement  relating
                                     to  payment  defaults,   cross-defaults  or
                                     insolvency-related      defaults     either
                                     immediately  on  such  date or  within  the
                                     period  ending 12 months  after  such date;
                                     and

                              (vi)   after giving effect to any  refinancing  or
                                     repayment  in full of the  Syndicated  Loan
                                     Agreement,   the   Company   shall   be  in
                                     compliance with the requirement to maintain
                                     Committed   Medium-Term   Bank   Facilities
                                     referred to below.

                              The  ratios  referred  to in clause (i) and clause
                              (ii) above will be  adjusted  on a pro forma basis
                              to  take  into  account  any net  proceeds  of any
                              rights  issue or similar  equity  offering  by the
                              Company or the  disposal of the Group's  shares in
                              Zenith (as defined below) whether  pursuant to the
                              JVA  (as  defined   below)  or   otherwise.   Such
                              adjustments will be made by reducing the aggregate
                              amount of  Consolidated  Gross  Borrowings  by the
                              amount  of  any  such  net  proceeds   applied  in
                              permanent   prepayment   of   Consolidated   Gross
                              Borrowings as permitted under

                                       4

<PAGE>

                              the Amended and Restated Note Purchase  Agreement,
                              by adjusting Consolidated Net Interest Expenditure
                              by the greater of the average interest rate or the
                              interest rate of the actual debt paid down, and by
                              adjusting  Consolidated  EBITDA to account for the
                              disposal  of the  Group's  shares  in  Zenith  (as
                              defined below).

Required Prepayments:         The  Issuer  shall make the  required  prepayments
                              contemplated  by Section 8.1 in the Existing  Note
                              Purchase Agreements, without any Make-Whole Amount
                              or other premium.

                              Immediately  upon the  occurrence  of a Prepayment
                              Event,  the Issuer  shall be required to prepay in
                              full all of its Notes, at a price equal to 100% of
                              the outstanding principal amount of the Notes plus
                              accrued  interest,  the accrued PiK Management Fee
                              (if any) (together with accrued interest  thereon)
                              and the Make-Whole  Amount (if any) (including all
                              deferred  amounts in respect  thereof  and accrued
                              interest  thereon) at the time of such prepayment.
                              A  "Prepayment   Event"  means  (i)  an  "External
                              Refinancing"  (which  shall be defined to mean the
                              borrowing or raising of Borrowed Money  (including
                              without  limitation any public or private issue of
                              debt  securities)  by any member of the Group that
                              either is not intended to effect the  repayment in
                              full and  cancellation  of the  amount  facilities
                              under the Syndicated Loan  Agreement),  or in fact
                              is in an amount that is insufficient to effect the
                              repayment  in  full  and the  cancellation  of the
                              facilities under the Syndicated Loan Agreement and
                              (ii)  the  sale  or  other   disposal  of  all  or
                              substantially  all of the assets and  undertakings
                              of the Group.

Voluntary Prepayments:        The Issuer  will be  permitted  to prepay all or a
                              portion of the outstanding principal amount of the
                              Notes.  Any  such  prepayment  shall be at a price
                              equal to 100% of the outstanding  principal amount
                              of  the  Notes  being  so  prepaid   plus  accrued
                              interest on the amount of such  principal  and the
                              Make-Whole Amount (if any) (including all deferred
                              amounts in respect  thereof and  accrued  interest
                              thereon) in respect of such principal amount being
                              so prepaid. Any partial prepayments will be shared
                              among  all  holders  of the  Notes  on a pro  rata
                              basis.

Currency of Payments:         All  payments  described in this term sheet and in
                              the Amended and Restated Note  Purchase  Agreement
                              shall be made in US Dollars.

Rights Issues

                                       5

<PAGE>

Equity Raising, etc.:         Prior to the Put  Elimination  Date,  the  Company
                              will not issue any shares or otherwise acquire any
                              additional capital other than:

                              (a)   the  issue  of   ordinary   shares   (i)  as
                                    consideration for the acquisitions  referred
                                    to  in  clause  (a)  of  the  definition  of
                                    "Permitted  Acquisitions"  below pursuant to
                                    the   Company's   obligations   (actual   or
                                    contingent) as at the Effective Date or (ii)
                                    in consideration  for Permitted  Investments
                                    or acquisitions  permitted under clauses (b)
                                    and  (d) of  the  definition  of  "Permitted
                                    Acquisitions" below; and

                              (b)   the  issue  of  ordinary   shares  for  cash
                                    payable  in full on the  date of  issue  and
                                    which ordinary shares do not carry any right
                                    to a return or to  redemption  nor any right
                                    to be converted  into shares  carrying  such
                                    right before all amounts  (whether actual or
                                    contingent)  owing under the Notes have been
                                    paid in full,  or the  granting of an option
                                    to call on the Company to issue such shares,

                              and the Company will at all times  procure that no
                              other member of the Group will issue any shares or
                              otherwise acquire any additional capital (or grant
                              any rights to call for the issue or  allotment  of
                              any of the same) other than the issue of shares by
                              a member  of the  Group to  another  member of the
                              Group permitted under clause (b) of the definition
                              of "Permitted  Acquisitions" below or constituting
                              Permitted  Investments provided that (A) where the
                              existing  shares  in such  member of the Group are
                              subject  to  an  Encumbrance   under  any  of  the
                              security documentation, such additional shares are
                              also subject to such an Encumbrance  and (B) where
                              such existing  shares are subject to  Encumbrances
                              which are  structured  to avoid an  adverse US Tax
                              consequence to the Group,  such additional  shares
                              shall  only  be  issued  to the  existing  holding
                              company of the issuing member of the Group.

                              Prior to the Put  Elimination  Date,  the proceeds
                              (net of  reasonable  related  costs) of any rights
                              issue or other  equity  raising  (other than those
                              permitted under clause (a) above) shall be applied
                              in mandatory  prepayment of the Notes  (subject to
                              the  terms  and  provisions  of the  Intercreditor
                              Agreement).  For the avoidance of doubt,  a rights
                              issue   or   other   equity   raising    occurring
                              contemporaneously   with  a  refinancing   of  the
                              Syndicated Loan Agreement shall

                                       6

<PAGE>

                              be deemed to occur after the Put Elimination  Date
                              if the Put  Elimination  Conditions  in connection
                              with such  refinancing  have been  satisfied.  Any
                              such prepayment  shall be at a price equal to 100%
                              of the outstanding  principal  amount of the Notes
                              being so  prepaid  plus  accrued  interest  on the
                              amount  of  such   principal,   the   accrued  PIK
                              Management  Fee (if any)  (together  with  accrued
                              interest  thereon) and the  Make-Whole  Amount (if
                              any)  (including  all deferred  amounts in respect
                              thereof and accrued  interest  thereon) in respect
                              of such principal amount being so prepaid.

Prepayment on
Asset Disposals:              Prior to the Put  Elimination  Date, if any member
                              of the Group  disposes  of any  assets  (including
                              shares and fixed  assets)  to any person  which is
                              not a member of the Group, of which:

                              (a)   the    aggregate   Net   Proceeds   are   at
                                    least(pound)500,000  (or its  equivalent  at
                                    the date of the disposal)  (each a "Relevant
                                    Disposal"); and

                              (b)   the   aggregate  Net  Proceeds  of  Relevant
                                    Disposals  in any Fiscal  Year are in excess
                                    of(pound)5,000,000 (or its equivalent at the
                                    date of disposal),

                              the Company  shall (or shall  procure  that it and
                              its Subsidiaries  shall), apply an amount equal to
                              the   aggregate  Net  Proceeds  of  such  Relevant
                              Disposals which are in excess of  (pound)5,000,000
                              (or its equivalent) in mandatory prepayment of the
                              Notes  (subject to the terms and provisions of the
                              Intercreditor  Agreement).   Any  such  prepayment
                              shall  be  at  a  price   equal  to  100%  of  the
                              outstanding principal amount of the Notes being so
                              prepaid  plus  accrued  interest  on the amount of
                              such principal and the Make-Whole  Amount (if any)
                              (including all deferred amounts in respect thereof
                              and accrued  interest  thereon) in respect of such
                              principal amount being so prepaid.

                              The provisions above will not apply in relation to
                              the  disposals  referred to in clauses  (a),  (c),
                              (d),  (e),  (f) and  (g)  in  the   definition  of
                              "Permitted Disposals" below.

                              Following the Put Elimination  Date, to the extent
                              the  Company  applies  the  proceeds  of any Asset
                              Disposition to the  prepayment of the Notes,  such
                              prepayment  shall be made at a price equal to 100%
                              of the outstanding  principal  amount of the Notes
                              being so  prepaid  plus  accrued  interest  on the
                              amount of

                                       7

<PAGE>

                              such principal and the Make-Whole  Amount (if any)
                              (including all deferred amounts in respect thereof
                              and accrued  interest  thereon) in respect of such
                              principal amount being so prepaid.

Financial Covenants:          The financial  covenants contained in Section 10.3
                              of the Existing Note Purchase  Agreements shall be
                              modified such that the Company will be required to
                              comply with the following financial covenants:

                              Consolidated  EBITDA to Consolidated  Net Interest
                              Expenditure:  The Company  will  procure  that the
                              ratio of Consolidated  EBITDA to Consolidated  Net
                              Interest  Expenditure for each period date set out
                              in   column   A  shall   not  be  less   than  the
                              corresponding ratio set out in column B:

                                         A                         B
                              12 month period ending             Ratio
                              ----------------------             -----
                              March 31, 2002                     2.50:1
                              June 30, 2002                      1.75:1
                              September 30, 2002                 2.50:1
                              December 31, 2002                  2.50:1
                              March 31, 2003                     2.75:1
                              June 30, 2003                      4.00:1
                              September 30, 2003                 3.25:1
                              December 31, 2003                  3.75:1
                              March 31, 2004                     4.00:1
                              June 30, 2004                      4.50:1
                              September 30, 2004                 5.00:1
                              and each quarter date
                                   thereafter

                              Consolidated  Gross   Borrowings  to  Consolidated
                              EBITDA: The Company will procure that the ratio of
                              Consolidated Gross Borrowings as at the end of, to
                              Consolidated EBITDA in respect of, each period set
                              out in  column  A shall  not be  greater  than the
                              ratio set out in column B:

                                         A                         B
                              12 month period ending             Ratio
                              ----------------------             -----
                              March 31, 2002                     5.75:1
                              June 30, 2002                      8.50:1
                              September 30, 2002                 4.75:1
                              December 31, 2002                  4.75:1
                              March 31, 2003                     4.25:1
                              June 30, 2003                      3.75:1
                              September 30, 2003                 3.75:1
                              December 31, 2003                  3.50:1
                              March 31, 2004                     3.00:1
                              June 30, 2004                      3.00:1
                              September 30, 2004                 2.75:1
                              and each quarter date
                                   thereafter

                              Consolidated Net Worth:

                        (a)   Prior to September 30, 2004,  the Company will not
                              permit  Consolidated  Net Worth (as defined in the
                              Existing Note Purchase Agreements) at the any time
                              to be less than (pound)400,000,000.

                        (b)   On September 30, 2004 and thereafter,  the Company
                              will not permit Consolidated Net Worth at any time
                              to be less than the sum of (i) the  greater of (A)
                              (pound)400,000,000 and (B) 80% of Consolidated Net
                              Worth as at  September  30,  2004,  plus (ii) on a
                              cumulative   basis,   50%  of  positive   "profits
                              attributable to ordinary shareholders" (as defined
                              under GAAP) for each Fiscal Quarter beginning with
                              the Fiscal Quarter ended December 31, 2004.

                              Each of the  above  financial  covenants  is to be
                              tested   quarterly  on  the  basis  of  management
                              accounts  and  the  annual  audited   consolidated
                              financial  statements.   Consolidated  EBITDA  and
                              Consolidated  Net  Interest  Expenditure  shall be
                              calculated  on a rolling  twelve  months basis and
                              Consolidated  Gross Borrowings shall be calculated
                              on the  basis of the  average  daily  outstandings
                              during the most recent two Fiscal Quarters.

                              Maximum  Capital  Expenditure:  The total  Capital
                              Expenditure  of all  members  of the  Group in any
                              Fiscal  Year  prior  to the Put  Elimination  Date
                              shall not exceed the Budgeted Capital  Expenditure
                              for such Fiscal Year but so that in respect of any
                              Fiscal  Year  where the  relevant  actual  Capital
                              Expenditure  (less any  amount  which was  carried
                              forward  from the  previous  Fiscal  Year) is less
                              than the  Budgeted  Capital  Expenditure  for that
                              Fiscal Year, an amount

                                       9

<PAGE>

                              equal to such  deficit may be carried  over to the
                              following  Fiscal Year only (and not  otherwise or
                              further)  and shall be  deemed to be spent  before
                              Budgeted Capital Expenditure in that year.

                              Compliance Certificates shall be required from the
                              Finance  Director (or if he is unavailable for any
                              reason,  any other  Director)  of the  Company  in
                              respect of the  unaudited  accounts and  financial
                              covenants  reports  shall  be  required  from  the
                              Company's   auditors  in  respect  of  the  annual
                              audited preliminary  financial statements provided
                              that such reports from the Company's  auditors can
                              be addressed solely to the Company so long as such
                              reports can be, and are in fact,  disclosed to the
                              holders  of the Notes.  To the extent the  figures
                              used in these  calculations (due solely to changes
                              in GAAP) differ from those shown in the  published
                              financial   statements   of  the   Company,   each
                              compliance   certificate  shall  contain  a  clear
                              reconciliation   to   the   published    financial
                              statements  including  all  workings,  calculation
                              methodology  and  explanation  of  the  accounting
                              principles used.

                              The  definition  of  "Borrowed   Money"  shall  be
                              modified  as set  forth  in the  section  entitled
                              "Definitions" below.

Affirmative and Negative
Covenants (Pre-Put
Elimination Date):            Prior to the Put Elimination Date, the affirmative
                              covenants  contained  in Section 9 of the Existing
                              Note Purchase  Agreements  shall continue to apply
                              and shall  include any more  restrictive  relevant
                              affirmative  covenants contained in the Syndicated
                              Loan Agreement.  The negative covenants  contained
                              in  Section  10  (excluding  Section  10.3) of the
                              Existing   Note  Purchase   Agreements   shall  be
                              modified  to  incorporate   all  of  the  negative
                              covenants   contained  in  the   Syndicated   Loan
                              Agreement  (as amended) such that the Company will
                              be   required,   to  the   extent   that  the  Put
                              Elimination Date has not occurred,  to comply with
                              all of the  negative  covenants  contained  in the
                              Syndicated  Loan  Agreement,   including   without
                              limitation the following negative covenants:

                              (a)   negative    pledge   (save   for   Permitted
                                    Encumbrances);

                              (b)   restrictions  on  Borrowed  Money or finance
                                    transactions  (save for  Permitted  Borrowed
                                    Money);

                                       10

<PAGE>

                              (c)   restrictions  on  the  sale,  factoring  and
                                    discounting of receivables  and the sale and
                                    leaseback/sale   and  repurchase  of  assets
                                    (other   than   the   sale,   factoring   or
                                    discounting of receivables on a non-recourse
                                    basis   where   the   aggregate   amount  of
                                    receivables so sold,  factored or discounted
                                    does  not  exceed   (pound)500,000  (or  its
                                    equivalent in aggregate));

                              (d)   restrictions  on mergers  (save for  certain
                                    limited  exceptions  to be  agreed  with the
                                    Company and the Banks) and disposals  (other
                                    than Permitted Disposals (as defined below);

                              (e)   restrictions  on loans and the  granting  of
                                    any credit  (except for Permitted  Loans and
                                    normal trade  credit in the ordinary  course
                                    of day-today  trading) and  restrictions  on
                                    guarantees (save for Permitted Guarantees);

                              (f)   restrictions on acquisitions and investments
                                    (save for Permitted Acquisitions);

                              (g)   restrictions on changes of business;

                              (h)   restrictions  on the  issuance  of shares or
                                    otherwise   on   the   acquisition   of  any
                                    additional  capital other than (i) the issue
                                    of ordinary shares (A) as consideration  for
                                    the  acquisitions  referred to in clause (a)
                                    of    the     definition    of    "Permitted
                                    Acquisitions"    below   pursuant   to   the
                                    Company's obligations (actual or contingent)
                                    as  at  the   Effective   Date   or  (B)  in
                                    consideration  for Permitted  Investments or
                                    acquisitions  referred to in clauses (b) and
                                    (d)  of   the   definition   of   "Permitted
                                    Acquisitions" and (ii) the issue of ordinary
                                    shares for cash  payable in full on the date
                                    of issue  and which  ordinary  shares do not
                                    carry any right to a return or to redemption
                                    nor any right to be  converted  into  shares
                                    carrying   such  right  before  all  amounts
                                    (whether  actual or contingent)  owing under
                                    the Notes and the Amended and Restated  Note
                                    Purchase Agreement have been paid in full;

                              (i)   restrictions    on   dividends   and   other
                                    distributions as more particularly described
                                    in the section entitled "Dividends and Other
                                    Distributions" below;

                              (j)   restrictions on cash management

                                       11

<PAGE>

                                    arrangements for the Group; and

                              (k)   pan passu  ranking  of Notes and  Subsidiary
                                    Guarantees.

                              The definition of "Material  Adverse Effect" shall
                              be  modified to mean "a  reference  to any effect,
                              event   or   circumstance   (on   its  own  or  in
                              combination   with   other   effect,   events   or
                              circumstances):

                              (a)   which  is,  or is  reasonably  likely to be,
                                    materially adverse to (i) the ability of any
                                    of the Company,  the Issuer,  the Subsidiary
                                    Guarantors  or  the  security  providers  to
                                    perform  any of its  obligations  under  the
                                    Notes,   the  Amended  and   Restated   Note
                                    Purchase    Agreement,     the    Subsidiary
                                    Guarantees    or   any   of   the   security
                                    documentation,  or (ii) the business, assets
                                    or financial condition of the Group taken as
                                    a whole; or

                              (b)   results  in,  or  is  reasonably  likely  to
                                    result  in,  the  Notes,   the  Amended  and
                                    Restated Note Purchase Agreement, any of the
                                    Subsidiary Guarantees or any of the security
                                    documentation  not  being  legal,  valid and
                                    binding on, and,  enforceable  substantially
                                    in accordance with their terms,  against any
                                    party thereto.

Affirmative and Negative
Covenants (Post-Put
Elimination Date):            Following   the   Put   Elimination    Date,   the
                              affirmative  and negative  covenants  contained in
                              Section 9 and Section 10 (excluding  Section 10.3)
                              of the Existing  Note  Purchase  Agreements  shall
                              thereafter apply, in lieu of the covenants set out
                              in the immediately preceding section, but shall be
                              modified as follows:

                              (a)   Section 9.7 of the  Existing  Note  Purchase
                                    Agreements  shall be modified to (i) provide
                                    that,  in  connection  with  any  Subsidiary
                                    granting  a  Subsidiary   Guarantee  to  the
                                    holders of the Notes, other beneficiaries of
                                    a guarantee from such Subsidiary  granted in
                                    connection    with   the   Syndicated   Loan
                                    Agreement  or  any   Committed   Medium-Term
                                    Facilities  shall  provide  a letter  to the
                                    holders  of the Notes in form and  substance
                                    satisfactory to the Majority Holders whereby
                                    the   existence   and   validity   of   such
                                    Subsidiary  Guarantee  as  well  as the pari
                                    passu ranking of such

                                       12

<PAGE>

                                    Subsidiary  Guaranty and such  guarantee are
                                    acknowledged  and  confirmed and (ii) delete
                                    Section  9.7(b) (and any related  provisions
                                    providing for the release of any  Subsidiary
                                    Guarantee under any circumstances other than
                                    in connection  with a permitted  disposal of
                                    the Subsidiary in question);

                              (b)   Section  10.1 shall be modified to expressly
                                    prohibit  any  floating   charges  over  all
                                    assets and  undertakings  conferring  on the
                                    chargee    a   power    to    appoint    any
                                    administrative  receiver,   receiver  and/or
                                    manager or any other receiver (a "Receiver")
                                    (or similar  Encumbrances  under the laws of
                                    any jurisdiction  conferring  similar powers
                                    on the chargee to appoint a Receiver) or any
                                    Encumbrances on book debts,  receivables and
                                    any other current assets of the Group (other
                                    than the sale,  factoring or  discounting of
                                    receivables  on a  non-recourse  basis where
                                    the aggregate amount of receivables so sold,
                                    factored    or    discounted     does    not
                                    exceed(pound)500,000  (or its  equivalent in
                                    aggregate),  in each case  regardless of the
                                    Encumbrances   otherwise   permitted   under
                                    Section 10.1;

                              (c)   the  definition of "Permitted  Encumbrances"
                                    in the  Existing  Note  Purchase  Agreements
                                    shall apply provided that clause (j) of such
                                    definition of "Permitted Encumbrances" shall
                                    be modified to reduce the "basket" contained
                                    therein to 10% of Consolidated Net Worth;

                              (d)   Section 10.2 shall be modified to (i) modify
                                    clause (a) thereof to apply only to Borrowed
                                    Money  owing to either  the  Company  or any
                                    Subsidiary Guarantor, (ii) modify clause (d)
                                    thereof  to  conform  to  clause  (b) of the
                                    definition  of  "Permitted  Borrowed  Money"
                                    below,   (iii)   eliminate  the   exceptions
                                    contained   in  clauses  (b),  (c)  and  (1)
                                    through  (g)  thereof  and (iv)  reduce  the
                                    "basket"  contained in clause (h) thereof to
                                    10% of Consolidated Net Worth;

                              (e)   Section   10.4  shall  be  modified  to  (i)
                                    restrict  intra-group Asset  Dispositions as
                                    provided   in   Section   10.4(a)  to  Asset
                                    Dispositions  between  the  Company  and the
                                    Subsidiary Guarantors, (ii) modify the limit
                                    contained  in  subclause   (ii)  of  Section
                                    10.4(c) to "10% of Consolidated

                                       13

<PAGE>

                                    EBITDA for the  preceding  Fiscal Year" (and
                                    eliminate  the  definition  and  concept  of
                                    "Adjusted  EBITDA"),  (iii) modify the limit
                                    contained  in  subclause  (iii)  of  Section
                                    10.4(c)  for  all  Asset  Dispositions  made
                                    since  the Put  Elimination  Date to "30% of
                                    Consolidated  EBITDA for the then  preceding
                                    Fiscal Year" (and  eliminate the  definition
                                    and concept of "Adjusted EBITDA"),  and (iv)
                                    modify  Section  10.4(c) to provide that any
                                    reinvestments  or debt  repayments  from the
                                    proceeds  of  Asset   Dispositions  be  made
                                    within 180 days of the effective date of the
                                    relevant  Asset  Disposition   (rather  than
                                    within   one  year)  to   qualify   for  the
                                    exclusion  specified  therein  and that,  in
                                    connection    with   any    prepayment    of
                                    unsubordinated  Borrowed  Money and  related
                                    offer to  repurchase  a pro rata  portion of
                                    the  Notes  in  connection  therewith,   the
                                    Make-Whole  Amount  will be  payable  by the
                                    Company connection therewith; and

                              (f)   an  additional   covenant   shall  be  added
                                    prohibiting sale and leaseback transactions,
                                    factoring,  asset  securitizations and other
                                    similar   "off-balance  sheet"  transactions
                                    other   than   the   sale,    factoring   or
                                    discounting of receivables on a non-recourse
                                    basis   where   the   aggregate   amount  of
                                    receivables so sold,  factored or discounted
                                    does  not  exceed   (pound)500,000  (or  its
                                    equivalent) in aggregate.

Dividends and Other
Distributions:                Prior to the Put  Elimination  Date,  the  Company
                              will not:

                              (a)   and will procure that no other member of the
                                    Group will redeem or  purchase or  otherwise
                                    reduce any of the Company's share capital or
                                    any uncalled  capital or unpaid liability in
                                    respect  thereof  or reduce  the  amount (if
                                    any)  for the  time  being  standing  to the
                                    credit  of  the   Company's   share  premium
                                    account  or  capital   redemption  or  other
                                    undistributable reserve in any manner (other
                                    than a  partial  capital  reorganization  in
                                    order to create distributable reserves where
                                    no  amount  is  paid  or   becomes   payable
                                    (including,  without  limitation,  by way of
                                    set-off,    combination   of   accounts   or
                                    otherwise) to any shareholder of the Company
                                    as part of such capital reorganization); or

                                       14

<PAGE>

                              (b)   declare, pay (including, without limitation,
                                    by way of set-off,  combination  of accounts
                                    or   otherwise)  or  permit  to  accrue  any
                                    dividend or make any other  distribution  or
                                    payment  (whether  in  cash  or in  specie),
                                    including   any   interest   and/or   unpaid
                                    dividends,  in  respect of its equity or any
                                    other  share  capital  for the time being in
                                    issue  except  that it may declare and pay a
                                    final dividend (but not an interim dividend)
                                    in respect of any Fiscal Year after December
                                    31, 2001, provided that:

                                    (i)    the  financial  covenants  have  been
                                           tested  and  passed as at the June 30
                                           financial  covenants test date in the
                                           following Fiscal Year;

                                    (ii)   no  breach  of any  of the  financial
                                           covenants   has   occurred   and   is
                                           continuing  and no other  Default  or
                                           Event of Default has  occurred  which
                                           is continuing;

                                    (iii)  the  ratio  of   Consolidated   Gross
                                           Borrowings to Consolidated EBITDA was
                                           not  greater  than  3.50:1 on each of
                                           the  two  most   recent   consecutive
                                           financial covenant test dates;

                                    (iv)   the  dividend  does not exceed 25% of
                                           Consolidated  Excess Cash Flow if the
                                           ratio    of    Consolidated     Gross
                                           Borrowings to Consolidated EBITDA was
                                           not less  than  3.25:1 on each of two
                                           most  recent  consecutive   financial
                                           covenant test dates;

                                    (v)    the  dividend  does not exceed 50% of
                                           Consolidated Excess Cash Flow;

                                    (vi)   not later  than 5 and no more than 15
                                           Business  Days prior to the  proposed
                                           date for the payment of that dividend
                                           the  finance  director  (or, if he is
                                           unavailable for any reason, any other
                                           director   in   each   case  in  such
                                           directors'    opinion   but   without
                                           personal  liability)  of the  Company
                                           delivers  to the holders of the Notes
                                           a  certificate  in which the  Company
                                           certifies   (without   qualification)
                                           that:

                                                 15

<PAGE>

                                           (A)   it  proposes  to pay a dividend
                                                 and states the amount of it;

                                           (B)   no   breach   of   any  of  the
                                                 financial     covenants     has
                                                 occurred and is continuing  and
                                                 no  other  Default  or Event of
                                                 Default has  occurred  which is
                                                 continuing;

                                           (C)   in the  opinion of the board of
                                                 directors    of   the   Company
                                                 (acting in good faith and after
                                                 having  regard  (inter alia) to
                                                 the   current   and   projected
                                                 trading and cash flow  position
                                                 of the Group (such  projections
                                                 being   based   on   reasonable
                                                 assumptions),  and assuming the
                                                 making of such dividend):

                                                 (1)   no  breach  of any of the
                                                       financial   covenants  or
                                                       any Event of  Default  is
                                                       reasonably    likely   to
                                                       occur either  immediately
                                                       or  within   the   period
                                                       ending  12  months  after
                                                       the date of the dividend;
                                                       and

                                                 (2)   the  Group is  reasonably
                                                       likely to have sufficient
                                                       working   capital  during
                                                       such 12 month period,

                                                 and such  certificate  shall be
                                                 accompanied  by (a) a  forecast
                                                 for the period of 6 full months
                                                 following the proposed  payment
                                                 date   showing  the   projected
                                                 respective      amounts      of
                                                 Consolidated            EBITDA,
                                                 Consolidated  Gross Borrowings,
                                                 Consolidated    Net    Interest
                                                 Expenditure,            Capital
                                                 Expenditure  and   Consolidated
                                                 Net Worth and their application
                                                 to the  financial  covenants in
                                                 respect   of   each   financial
                                                 covenant  test date within such
                                                 period,  such  forecast  to  be
                                                 based on the  knowledge  of the
                                                 Company and the circumstances

                                       16

<PAGE>

                                                 then   existing  at  such  time
                                                 together    with     reasonable
                                                 assumptions,    and    (b)    a
                                                 calculation  by the  Company of
                                                 Consolidated  Excess  Cash Flow
                                                 for the  relevant  Fiscal  Year
                                                 (showing  the  calculations  on
                                                 which  it  is  based)  together
                                                 with  a   statement   from  the
                                                 Company's  auditors  as to  the
                                                 amount   of  the   Consolidated
                                                 Excess  Cash  Flow   confirming
                                                 that in all  material  respects
                                                 the  calculation  has been made
                                                 in accordance  with the audited
                                                 consolidated          financial
                                                 statements of the Group for the
                                                 relevant  Fiscal  Year  and the
                                                 definition   of    Consolidated
                                                 Excess Cash Flow.

Maintenance of
Committed  Medium-
Term Bank Facilities:         At all times after the Put  Elimination  Date, the
                              Company shall maintain Committed  Medium-Term Bank
                              Facilities  having committed  availability  levels
                              which,   in  the   aggregate,   on  any   date  of
                              determination,  are  greater  than or equal to the
                              aggregate    principal   amount   of   the   Notes
                              outstanding  (provided  that the Company shall not
                              be in  violation  of this  covenant if any bank or
                              other   financial   institution   providing   such
                              facilities   shall  be  required,   by  reason  of
                              illegality,    increased   costs   or   regulatory
                              restriction  as set  forth  in  customary  banking
                              documentation,   to  withdraw  such   facilities).
                              "Committed Medium-Term Bank Facilities" shall mean
                              loan or other credit facilities (other than letter
                              of  credit  or  documentary   credit   facilities)
                              providing for revolving or term loans  pursuant to
                              a written  commitment by a bank or other financial
                              institution for which the period until maturity or
                              termination of such  commitment and the borrowings
                              thereunder have, at the date of determination,  at
                              least 364 days remaining and which are not capable
                              of being  demanded or withdrawn at any time during
                              such  period  (other  than  following  an event of
                              default thereunder).

Change of Control:            In the event of a Change of  Control,  the Company
                              will  offer to prepay  the  outstanding  principal
                              amount  of  the  Notes,   together   with  accrued
                              interest,  accrued P1K  Management  Fees (together
                              with accrued interest  thereon) and the Make-Whole
                              Amount  (including all deferred amounts in respect
                              thereof and accrued interest thereon)  (calculated
                              as provided

                                       17

<PAGE>

                              below).  Within 30 days after receipt of the offer
                              of prepayment from the Company, each holder of the
                              Notes shall elect whether to accept or reject such
                              prepayment.  If a  holder  does  not  reply to the
                              Company within such 30 days,  such holder shall be
                              deemed   to   have   accepted   such   prepayment.
                              Notwithstanding  the foregoing,  the prepayment of
                              any Notes held by any holder  accepting such offer
                              (or not having  responded to the Company) shall be
                              made at the  same  time any  payments  are made in
                              connection  with the repayment or  refinancing  of
                              the Syndicated  Loan Agreement as a result of such
                              Change of Control  regardless  of whether  such 30
                              day period has passed.

                              The Company will  promptly  provide the holders of
                              the Notes with written notice of the occurrence of
                              any Control Event.

                              For  these  purposes,  (1) a "Change  of  Control"
                              shall occur if a person (whether alone or together
                              with any associated person or persons) becomes the
                              beneficial  owner of  shares in the  issued  share
                              capital  of the  Company  carrying  the  right  to
                              exercise more than 50% of the votes exercisable at
                              a general  meeting of the Company,  (2) a "Control
                              Event" means (A) the announcement, by or on behalf
                              of any person or associate  person or persons,  in
                              accordance  with  Rule  2.5 of the  City  Code  on
                              Takeovers and Mergers, of a firm intention to make
                              an offer to the holders of the ordinary  shares of
                              the  Company  or of a  proposal  for a  scheme  of
                              arrangement,  which offer or proposal, if accepted
                              or approved (as the case may be) by the  requisite
                              number(s)  of holders and if the other  conditions
                              thereto were satisfied or waived,  would result in
                              a Change of  Control or (B) the making of an offer
                              to the  holders  of  the  ordinary  shares  of the
                              Company   or  the   proposing   of  a  scheme   of
                              arrangement,  which offer or proposal, if accepted
                              or approved (as the case may be) by the  requisite
                              number(s)  of holders and if the other  conditions
                              thereto were satisfied or waived,  would result in
                              a Change of Control  (but,  for the  avoidance  of
                              doubt,  "Control  Event"  shall  not  include  any
                              preliminary approach or negotiations by any person
                              or group of  persons  to or with  the  Company  in
                              respect of any such offer), and (2) an "associated
                              person" means, in relation to any person, a person
                              who is (i)  acting in concert  (as  defined in the
                              City  Code on  Takeovers  and  Mergers)  with that
                              person or (ii) a  connected  person (as defined in
                              section  839 of the Income and  Corporation  Taxes
                              Act 1988) of that person.

                                       18

<PAGE>

                              In the event of a prepayment  of the Notes and the
                              occurrence  of a Change  of  Control  or a Control
                              Event within six months following such prepayment,
                              the Company will be  obligated,  as a separate and
                              continuing obligation, to pay, on the date of such
                              Change of Control or Control Event, to each holder
                              of Notes  (as of the date of such  prepayment)  an
                              amount  equal to the  difference  between  (x) the
                              Make-Whole  Amount  calculated  on the basis  that
                              such prepayment was in connection with a Change of
                              Control or Control Event and (y) the amount of the
                              Make-Whole Amount actually paid on such prepayment
                              date.

Accrued Interest and
Make-Whole Amount, etc.:      All  mandatory  and  optional  prepayments  on the
                              Notes will be made together with accrued  interest
                              to the date of payment  and,  with respect to such
                              mandatory  and optional  prepayments  other than a
                              required  prepayment  contemplated  by  the  first
                              paragraph  of  the  section   entitled   "Required
                              Prepayments"   above,  the  Make-Whole  Amount  in
                              respect of the principal amount of the Notes being
                              prepaid or repaid,  provided  that any  Make-Whole
                              Amount  which is  payable in  connection  with any
                              partial  prepayment of the Notes prior to the Bank
                              Refinancing  Date shall be  deferred  and shall be
                              payable  on the  date  the P1K  Management  Fee is
                              payable.  Any Make-Whole  Amount so deferred shall
                              accrue interest at 9.25% per annum, which interest
                              shall  accrue but shall not be  payable  until the
                              deferred   Make-Whole   Amount  is  payable.   The
                              "Make-Whole  Amount"  shall be defined as provided
                              in  the  Existing  Note  Purchase  Agreements  and
                              shall, except as provided below, be calculated for
                              any  prepayment or repayment of the Notes based on
                              the  original  interest  rate (7.6  1%),  interest
                              payment  and  mandatory  prepayment  schedule  and
                              maturity  date of the  Notes  as set  forth in the
                              Existing  Notes  and the  Existing  Note  Purchase
                              Agreements,  provided that, in connection with any
                              prepayment of the Notes as a result of a Change of
                              Control, the Make-Whole Amount shall be calculated
                              based on the  modified  interest  rate and payment
                              schedule on the Notes (9.25%).

Financial Information
(Pre-Put Elimination Date):   Prior to the Put Elimination  Date, in addition to
                              the information  required to be delivered pursuant
                              to  Section  7.1 of  the  Existing  Note  Purchase
                              Agreements, the Company will:

                                       19

<PAGE>

                              (a)   prepare  consolidated  financial  statements
                                    for the Group in respect of each Fiscal Year
                                    and cause the same to be  reported on by the
                                    Company's    auditors   and   provide   such
                                    financial  statements  to the holders of the
                                    Notes   together  with  the  report  of  the
                                    Company's   auditors   thereon,   the  notes
                                    thereto,  the directors'  report thereon and
                                    the   report  of  the   Company's   auditors
                                    required in clause (e) below,  together with
                                    the Group's preliminary audited consolidated
                                    financial  statements,   at  the  time  such
                                    preliminary audited  consolidated  financial
                                    statements   are  issued  to  the  Company's
                                    shareholders but in any event within 90 days
                                    of the end of each Fiscal Year.

                              (b)   prepare  unaudited   consolidated  quarterly
                                    management accounts for the Group in respect
                                    of each  Fiscal  Quarter in the agreed  form
                                    and provide such  accounts to the holders of
                                    the Notes  within  45 days  after the end of
                                    each  Fiscal  Quarter,   together  with  the
                                    compliance  certificate  required  in clause
                                    (d) below. The quarterly management accounts
                                    shall include:

                                    (i)    a    cashflow    statement    and   a
                                           consolidated  profit and loss account
                                           in  respect  of the  relevant  Fiscal
                                           Quarter,  the  Fiscal  Year  to  that
                                           date, and whatever periods or rolling
                                           12 month  periods are relevant to the
                                           calculations  required  to  test  the
                                           financial covenants;

                                    (ii)   a comparison of all relevant  results
                                           with  the  relevant   annual   budget
                                           required to be provided in clause (f)
                                           below;

                                    (iii)  a  comparison  of actual  performance
                                           for  that  Fiscal  Quarter  with  the
                                           performance   during  the  equivalent
                                           Fiscal Quarter during the immediately
                                           preceding   Fiscal   Year;

                                    (iv)   a  consolidated  balance  sheet as at
                                           the end of that Fiscal Quarter;

                                    (v)    a management  discussion and analysis
                                           in  a   form   satisfactory   to  the
                                           Majority Holders;

                                       20

<PAGE>

                                    (vi)   a  statement  of  the  aggregate  net
                                           proceeds of relevant  disposals  made
                                           during   such  period  to  which  the
                                           mandatory   prepayment   requirements
                                           described  in  the  section  entitled
                                           "Prepayment on Asset Disposals" above
                                           apply;

                                    (vii)  (for the  purposes  relevant  for the
                                           Maximum Capital Expenditure financial
                                           covenant) a statement  of the Capital
                                           Expenditure   (as   defined   herein)
                                           during such period;

                                    (viii) an  analysis  of the  profit and loss
                                           account by profit centers; and

                                    (ix)   a statement of the consideration paid
                                           by the  Group  (and  broken  down  by
                                           Group    members)   in   respect   of
                                           Permitted  Acquisitions  during  such
                                           period.

                              (c)   prepare   unaudited   consolidated   monthly
                                    management  accounts in respect of the Group
                                    in respect of each  month and  provide  such
                                    accounts to the holders of the Notes  within
                                    30 days  after  the end of each  month.  The
                                    monthly management accounts shall include:

                                    (i)    a  consolidated   cashflow  statement
                                           (including a 4 week rolling  forecast
                                           of  central  liquidity  in the agreed
                                           form);

                                    (ii)   a   consolidated   profit   and  loss
                                           account  for the  relevant  month and
                                           the Fiscal Year to that date;

                                    (iii)  a comparison of all relevant  results
                                           with  the  relevant   annual   budget
                                           required to be provided in clause (f)
                                           below;

                                    (iv)   a  comparison  of actual  performance
                                           for that month  with the  performance
                                           during the  equivalent  month  during
                                           the  immediately   preceding   Fiscal
                                           Year;

                                    (v)    a management  discussion and analysis
                                           in  a   form   satisfactory   to  the
                                           Majority Holders;

                                       21

<PAGE>

                                    (vi)   a  statement  of  the  aggregate  net
                                           proceeds of relevant  disposals  made
                                           during   such  period  to  which  the
                                           mandatory   prepayment   requirements
                                           described  in  the  section  entitled
                                           "Prepayment on Asset Disposals" above
                                           apply;

                                    (vii)  (for the  purposes  relevant  for the
                                           Maximum Capital Expenditure financial
                                           covenant) a statement  of the Capital
                                           Expenditure   (as   defined   herein)
                                           during such period; and

                                    (viii) astatement  of  the  investments  and
                                           other   transactions   entered   into
                                           pursuant    to    the    ring-fencing
                                           arrangements  constituting  Permitted
                                           Investments.

                              (d)   prepare   a   certificate    verifying   the
                                    compliance  or otherwise  with all financial
                                    covenants,  confirming  that no  Default  or
                                    Event  of  Default  has  occurred  which  is
                                    continuing  unrexnedied  and  unwaived,  and
                                    attaching  a list of  Material  Subsidiaries
                                    (determined  on the  basis  of the  relevant
                                    financial  statements in accordance with the
                                    revised definition stated below) and have it
                                    signed by its  finance  director,  or if the
                                    finance  director  is  unavailable  for  any
                                    reason,  any other  director of the Company,
                                    and provide such  certificate to the holders
                                    of the Notes at the time of the  delivery of
                                    the quarterly  management  accounts for each
                                    Fiscal Quarter.

                              (e)   at the  time  of  delivery  of  the  audited
                                    consolidated financial statements, deliver a
                                    report  from the  Company's  auditors  (in a
                                    format  acceptable  to the Majority  Holders
                                    and which can be relied  upon by  holders of
                                    the Notes) stating:

                                    (i)    the   amounts   of   the   respective
                                           financial  definitions  in respect of
                                           or, as the case may be, as at the end
                                           of the relevant  period  specified in
                                           the financial  covenants as extracted
                                           from   such   audited    consolidated
                                           financial  statements  and indicating
                                           the manner in which such amounts have
                                           been calculated;

                                       22

<PAGE>

                                    (ii)   the  application  of  the  respective
                                           amounts of such financial definitions
                                           to the financial covenants; and

                                    (iii)  a list of the  Group  companies  that
                                           are Material Subsidiaries  determined
                                           on  the   basis   of   the   relevant
                                           financial  statements  in  accordance
                                           with the  revised  definition  stated
                                           below,

                                    and each such  report  shall (in the absence
                                    of  manifest  error)  be  conclusive  as  to
                                    matters contained in it.

                              (f)   prepare  an annual  budget  for each  Fiscal
                                    Year  (broken  down on a  monthly  basis and
                                    updated  on a  quarterly  basis)  in a  form
                                    satisfactory  to the Majority  Holders,  and
                                    (i) provide  each such annual  budget to the
                                    holders  of the Notes as soon as it  becomes
                                    available,  and in any event not later  than
                                    45 days after the commencement of the Fiscal
                                    Year the subject  thereof,  (ii)  provide an
                                    update  of each  such  annual  budget to the
                                    holders  of the Notes as soon as it  becomes
                                    available,  and in any event not later  than
                                    20  days  after  the  commencement  of  each
                                    Fiscal   Quarter  in  the  Fiscal  Year  the
                                    subject thereof,  and (iii) immediately upon
                                    being  approved  by the  Company's  board of
                                    directors,  provide  to the  holders  of the
                                    Notes any  amendments  or  revisions to each
                                    such annual budget.

                              (g)   provide  to the  holders of the Notes at the
                                    time  of   issue   thereof   every   report,
                                    circular,  notice or like document issued by
                                    the  Company or any of its  Subsidiaries  to
                                    its  creditors  (or any class of  creditors)
                                    generally or to the Banks (as defined below)
                                    and every notice  convening a meeting of the
                                    shareholders    or   any    class   of   the
                                    shareholders of the Company.

                              (h)   provide  to the  holders  of the  Notes  all
                                    information (including,  without limitation,
                                    all    financial     information    reports,
                                    projections, forecasts, budgets and business
                                    information   (but   excluding  any  routine
                                    administrative  notices  and  certificates))
                                    provided by the Company or any Subsidiary to
                                    any Bank (as defined in the Syndicated  Loan
                                    Agreement),  other  bank  lender or  similar
                                    provider of credit or finance to the Company
                                    or such Subsidiary.

                                       23

<PAGE>

                              (i)   the  Issuer   will,   and  each   Subsidiary
                                    Guarantor  will,  provide to the  holders of
                                    the Notes such further  financial  and other
                                    information  concerning  the  Group  (or any
                                    member of it) and its  affairs as any holder
                                    of Notes  may from  time to time  reasonably
                                    request.

                              (j)   notify the holders of the Notes  immediately
                                    upon it  becoming  aware  that a breach of a
                                    financial  covenant,  or an Event of Default
                                    as a result of non payment, cross-default or
                                    an insolvency event, is reasonably likely to
                                    occur  either   immediately  or  within  the
                                    following  12 months.  Upon  receiving  such
                                    notification from the Company,  the Majority
                                    Holders  shall have the right to require the
                                    preparation of an  independent  accountants'
                                    report  on  the   financial   and   business
                                    condition  and prospects of the Group and]or
                                    such other  reports as the Majority  Holders
                                    shall  require  (the cost in each case to be
                                    borne by the  Company)  and the Company will
                                    (and will  procure that each other member of
                                    the  Group   will)   provide   the   persons
                                    preparing   each   such   report   with  all
                                    assistance  and  information   requested  by
                                    them.

                              Prior  to the  Put  Elimination  Date,  the  grace
                              period for an Event of Default shall be reduced to
                              5  Business  Days  in so  far as it  relates  to a
                              breach  of  the  obligations  or  undertakings  to
                              deliver    financial    statements,     compliance
                              certificates and reports of the Company's auditors
                              required to test the financial  covenants  testing
                              at the time and in the  manner  stipulated  in the
                              relevant  clauses of the Amended and Restated Note
                              Purchase Agreement.

Financial Information
(Post-Put Elimination Date):  Following the Put  Elimination  Date,  the Company
                              shall provide the information described in Section
                              7.1 of the Existing  Note  Purchase  Agreements to
                              the  holders  of  the  Notes,  together  with  the
                              following  additional  information:

                              (a)   within  45 days  of the  end of each  Fiscal
                                    Quarter, an unaudited  consolidated  balance
                                    sheet of the Company and its Subsidiaries as
                                    at the end of  such  Fiscal  Quarter  and an
                                    unaudited   consolidated   profit  and  loss
                                    account of the Company and its  Subsidiaries
                                    for such Fiscal  Quarter,  setting  forth in
                                    comparative   form  the   figures   for  the
                                    corresponding Fiscal

                                       24

<PAGE>

                                    Quarter  in the  previous  Fiscal  Year  and
                                    certified by a Senior Financial Officer; and

                              (b)   all    information    (including,    without
                                    limitation,    all   financial   information
                                    reports, projections, forecasts, budgets and
                                    business   information  (but  excluding  any
                                    routine     administrative    notices    and
                                    certificates))  provided  by the  Company or
                                    any Subsidiary to any bank lender or similar
                                    provider of credit or finance to the Company
                                    or such Subsidiary.

                              In addition, the Company will provide the covenant
                              compliance   certificates   required  pursuant  to
                              Section  7.2  of  the   Existing   Note   Purchase
                              Agreements  to the  holders  of the Notes with the
                              quarterly  financial  statements  referred  to  in
                              clause  (a)  above,  and in  connection  with each
                              compliance certificate, the Company will provide a
                              list of Material Subsidiaries.

Most Favored Lender
Status:                       None of the Company or the Subsidiaries  providing
                              guarantees  will  enter into any  modification  or
                              amendment to any existing credit facility or other
                              financing  document,  or enter into any new credit
                              facility  or  financing  document,  that  contains
                              financial   covenants,   definitions   or  default
                              provisions   more   favorable  to  the  lender  or
                              financier  thereunder  unless  the  holders of the
                              Notes  are  given  the  option  of  receiving  the
                              benefit of such more  favorable  provisions at the
                              same  time and on the same  terms.  No  additional
                              guarantees  will be  provided  to the Banks or any
                              other  creditor of the Company,  the Issuer or any
                              Subsidiary Guarantor unless similar guarantees are
                              given in favor of the  holders of the  Notes.

                              For the  avoidance of doubt and in addition to the
                              foregoing,  to the  extent  that the Group  enters
                              into  any   modification   or   amendment  to  the
                              Syndicated    Loan    Agreement    that   contains
                              definitions,  covenants or other  provisions  more
                              favorable  to the  Banks  thereunder  or under the
                              Indicative Key Restructuring  Terms and Conditions
                              attached as Schedule 2 hereto,  the holders of the
                              Notes shall be given the option of  receiving  the
                              benefit of such more  favorable  provisions at the
                              same time and on the same terms.

Events of Default:            The Amended and Restated Note  Purchase  Agreement
                              shall  contain  Events  of  Default  substantially
                              identical  to those in Section 11 of the  Existing
                              Note Purchase Agreements (amended to

                                       25

<PAGE>

                              ensure  that  they  are no less  restrictive  than
                              those in the Syndicated  Loan Agreement) and shall
                              contain  the   following   additional   Events  of
                              Default:

                              (a)   a  cross-default   to  the  Syndicated  Loan
                                    Agreement  providing for an Event of Default
                                    under the Amended and Restated Note Purchase
                                    Agreement regardless of any waiver under the
                                    Syndicated Loan Agreement.

                              (b)   a  refusal  for a  period  of  more  than  7
                                    Business   Days  by  the  Banks   under  the
                                    Syndicated  Loan  Agreement  or the relevant
                                    banks or  financial  institutions  under any
                                    Committed  Medium-Term  Bank  Facilities  to
                                    fund any advance requested by the Company or
                                    any other borrower under the Syndicated Loan
                                    Agreement or such Committed Medium-Term Bank
                                    Facilities (as the case may be).

Representations
And warranties:               Appropriate  to  this  secured   transaction   and
                              including the  representations  and  warranties in
                              the  Existing  Note  Purchase  Agreements  and the
                              representations  and  warranties in the Syndicated
                              Loan  Agreement.

                              A  representation  and  warranty  shall be made in
                              respect  of  all   information   and   projections
                              provided  to the  holders of the Notes in relation
                              to the proposed amendments.

Intercreditor Agreement:      The  holders  of the Notes and the Banks  party to
                              the Syndicated  Loan Agreement shall enter into an
                              intercreditor   agreement  satisfactory  in  form,
                              scope and  substance  to the holders of the Notes,
                              which  shall  give  effect to the terms set out in
                              the term sheet  attached as Schedule 3 hereto (the
                              "Intercreditor Agreement"). The provisions of this
                              term sheet are subject to the terms and conditions
                              of the Intercreditor Agreement.

Guarantees/Security:          The Company's  obligations under the Notes and the
                              Amended and Restated Note Purchase  Agreement will
                              be secured by the following guarantee and security
                              package  (subject  to the  limitations  and issues
                              noted at the end of Schedule 1 hereto):

                              (i)    the  existing   Subsidiary   Guarantees  in
                                     favour of the holders of the Notes given by
                                     certain  Subsidiaries  of the Company prior
                                     to the date hereof (as set out in Part 1 of
                                     Schedule 1 hereto);

                                       26

<PAGE>

                              (ii)   additional   guarantees   from,  and  first
                                     ranking  fixed and floating  charges  over,
                                     all of the  assets and  undertaking  of the
                                     members  of  the  Group   incorporated   in
                                     England  and  Wales  listed  in  Part  2 of
                                     Schedule  1 hereto  (and the  issued  share
                                     capital of each of these  companies  (other
                                     than the Company)  will be the subject of a
                                     pledge/charge by its parent); and

                              (iii)  to the extent  capable  of being  provided,
                                     guarantees  from  material  members  of the
                                     Group incorporated in the US, Germany,  the
                                     Netherlands  and  Australia  as set  out in
                                     Part   3   of   Schedule   1   hereto   and
                                     pledges/charges   over  the  issued   share
                                     capital of those companies.

                              All guarantees and security  documents shall be in
                              form and substance  satisfactory to the holders of
                              the Notes.

                              Prior to the Put  Elimination  Date,  the  Company
                              shall   procure   that    Material    Subsidiaries
                              incorporated in England and Wales, the US, Germany
                              and  the   Netherlands   provide   guarantees  and
                              security  consistent with the terms set out above,
                              to the extent capable of being provided (excluding
                              any Subsidiaries of the Company which are Material
                              Subsidiaries  as at the Effective Date (as defined
                              below)  but  which  are not  required  to  provide
                              guarantees  or  security  as a  condition  to  the
                              effectiveness of the proposed amendments,  so long
                              as the  reasons  for such  security  not  being so
                              required  are  continuing).   For  these  purposes
                              "Material Subsidiary" shall mean any member of the
                              Group   which  is  party  to   (inter   alia)  the
                              Syndicated Loan Agreement or any other  Subsidiary
                              of the Company:

                              (i)    whose  EBITDA,  together  with  that of its
                                     Subsidiaries, is equal to or exceeds 3 % of
                                     the Consolidated EBITDA of the Group (where
                                     EBITDA shall be construed  appropriately in
                                     respect  of such  member  of the  Group  by
                                     reference to the definition of EBITDA); or

                              (ii)   whose gross  revenues,  together with those
                                     of its Subsidiaries, is equal to or exceeds
                                     3 % of the  consolidated  gross revenues of
                                     the Group; or

                              (iii)  to which has been  transferred  (whether by
                                     one    transaction    or   a   series    of
                                     transactions,   related   or  not)  all  or
                                     substantially  all of the assets of another
                                     member of the Group which,

                                       27

                                     immediately  prior to that  transaction  or
                                     any of the transactions in that series, was
                                     a Material  Subsidiary as determined  under
                                     paragraphs (i) or (ii) above; or

                              (iv)   which is a holding  company  of a  Material
                                     Subsidiary  determined under paragraphs (i)
                                     through (iii) above,

                              as  determined  by  reference  to the then  latest
                              quarterly management accounts,  the latest audited
                              consolidated  financial  statements  for the  time
                              being of the Group delivered under the Amended and
                              Restated  Note  Purchase  Agreement and such other
                              financial  statements  of the relevant  members of
                              the  Group  (prepared  on the  same  basis as such
                              financial  statements delivered in accordance with
                              the Amended and Restated Note  Purchase  Agreement
                              in respect of the same  period to which such other
                              financial  statements relate) as are necessary for
                              the  relevant  Compliance  Certificate  to be duly
                              completed  and  delivered in  accordance  with the
                              Amended  and  Restated  Note  Purchase  Agreement,
                              provided  that (i) in the case of a member  of the
                              Group  acquired  after  the end of the  period  to
                              which the then latest financial  statements of the
                              Group  delivered   pursuant  to  the  Amended  and
                              Restated  Note  Purchase   Agreement  relate,  the
                              reference to such then latest financial statements
                              shall  (until   financial   statements  have  been
                              delivered  under  such  clauses  for the period in
                              which such  acquisition is made) be deemed to be a
                              reference to a  consolidation  (in accordance with
                              Fixed   GAAP)  of  such  then   latest   financial
                              statements and the latest financial  statements of
                              such acquired  member of the Group for such period
                              and (ii) a report of the Company's auditors to the
                              holders  of the  Notes  that a  Subsidiary  of the
                              Company  is or is not a  Material  Subsidiary  (in
                              accordance  with this  definition)  when delivered
                              (as part of the report of the  Company's  auditors
                              or otherwise)  shall be conclusive  and binding on
                              the parties hereto.

                              Notwithstanding the foregoing, for the purposes of
                              Sections 5 and 11,  the  definition  of  "Material
                              Subsidiary" shall also include (in addition to the
                              Subsidiaries  referred  to  above)  the  companies
                              listed as Material Subsidiaries in Schedule 5.4.

                              The existing  Subsidiary  Guarantees will continue
                              to be held by the holders of the Notes.

                                       28

<PAGE>

                              The additional  guarantees and other security will
                              be held by the Common Security Trustee (as defined
                              in the  Intercreditor  Term Sheet) (or its agents)
                              pursuant to the  Intercreditor  Agreement and will
                              secure   all   amounts   outstanding   under   the
                              Syndicated   Loan   Agreement,   the  Amended  and
                              Restated  Note Purchase  Agreement,  the Notes and
                              the security documentation on the basis set out in
                              the Intercreditor Term Sheet.

                              The terms and  principles  governing the taking of
                              security both as a condition to the  effectiveness
                              of  the  proposed  amendments  and  as an  ongoing
                              obligation  after  the  Effective  Date  shall  be
                              agreed  between  the  Company,  the holders of the
                              Note and the Common Security Trustee in a security
                              memorandum  dated on or about the  Effective  Date
                              (the "Security Memorandum").

                              For the avoidance of doubt, the refinancing of the
                              Syndicated  Loan Agreement  shall not give rise to
                              any   obligation   to  release  any  guarantee  or
                              security  unless  the Put  Elimination  Date shall
                              have occurred and such refinancing is not secured.
                              On the Put  Elimination  Date, all security (other
                              than the Subsidiary  Guarantees and the additional
                              guarantees)  shall  be  released,  so  long as any
                              refinancing of the Syndicated  Loan Agreement does
                              not  require  such  security.   The  lntercreditor
                              Agreement  shall not terminate and the Refinancing
                              Put shall not be  eliminated  unless  the new bank
                              facility does not require priority or security.

Cash  Management
Undertakings:                 Prior to the Put  Elimination  Date,  the  Company
                              will use its best  endeavours to procure that cash
                              held  by  members  of  the  Group  which  are  not
                              Subsidiary Guarantors and which is not required to
                              meet   working   capital   liabilities   will   be
                              repatriated  directly  or  indirectly  to the bank
                              account  of  a  Subsidiary  Guarantor  located  in
                              England  and Wales or the  United  States,  to the
                              extent  that  such  repatriation  can be done in a
                              legal  and   tax-efficient   manner  and   without
                              incurring costs which are  disproportionate to the
                              benefit to the Finance Parties.

                              The members of the Group will  conduct  their Cash
                              Pooling  Arrangements  in the  UK,  the US and the
                              Euro-Zone with a Bank or Banks, excluding the Cash
                              Pooling  Arrangements  in  place as at the date of
                              the execution of the  Agreement in Principle  with
                              non-Banks in Germany and Italy (to be specifically
                              identified in the Amended and Restated Note

                                       29

<PAGE>

                              Purchase Agreement, and except as otherwise agreed
                              in writing with the Majority Holders.

                              The  Company  will not  permit  any  member of the
                              Group  incorporated or formed in the United States
                              or in England  and Wales that is not a  Subsidiary
                              Guarantor  to  be a  party  to  any  cash  pooling
                              arrangements  with any other  member or members of
                              the  Group,  other  than  where  the  value of any
                              loans,  credit,  rights of set-off,  guarantee  or
                              other  Encumbrance  provided  to  such  member  or
                              members    of   the   Group    does   not   exceed
                              (pound)500,000  and (for the  avoidance  of doubt)
                              such loans, credit,  rights of set-off,  guarantee
                              or   other   Encumbrance    constitute   Permitted
                              Investments.

                              For these purposes:

                              "Cash Pooling Arrangements" means arrangements for
                              the  pooling  of the  balances  of any two or more
                              Group  member's  bank  accounts  pursuant to which
                              arrangements any such member of the Group grants a
                              guarantee,   rights  of   set-off   or  any  other
                              Encumbrance or transfers cash between the relevant
                              bank accounts pursuant to an intra-Group loan.

                              "Euro   Zone"  means  each   country   that  is  a
                              Participating Member State.

                              "Participating  Member State" means a member state
                              of the  European  Union that has adopted or adopts
                              the single currency in accordance with the Treaty.

                              "Treaty"   means  the  Treaty   establishing   the
                              European  Economic  Community  being the Treaty of
                              Rome of 25 March  1957 as  amended  by the  Single
                              European Act 1986 and the Maastricht Treaty (which
                              was signed on 7 February  1992 and came into force
                              on  1  November   1993)  as  amended,   varied  or
                              supplemented from time to time.

Zenith Put
and Call Options:             The Company will  undertake  that no member of the
                              Group will terminate,  amend or vary (or acquiesce
                              in any termination, amendment or variation of) the
                              terms  of the  Joint  Venture  Agreement  dated 27
                              September  2001 (the  "JVA") with  Publicis  Group
                              S.A.  ("Publicis") in a way which might reasonably
                              be expected to adversely affect the Group's rights
                              or  interests  under or in  respect of the put and
                              call

                                       30

<PAGE>

                              options  contained therein relating to the Group's
                              shares   in   Zenith   Optimedia   Group   Limited
                              ("Zenith")  (except  as  required  below) or which
                              might  reasonably be expected to adversely  affect
                              (or  delay)  the  amount of  receipt of any amount
                              referred to in the mandatory prepayment provisions
                              below.

                              The Company shall transfer its shares in Zenith to
                              Sonic  Sun   Limited,   an  English   wholly-owned
                              non-trading solvent Subsidiary of the Company (the
                              "JVA  Subsidiary") in accordance with the terms of
                              the JVA. The JVA Subsidiary will be subject to the
                              guarantee  and  security  requirements  set out in
                              this term sheet (save that the  security  will not
                              cover the  shares in Zenith  while the  consent of
                              Publicis has not been obtained).

                              The JVA Subsidiary will not carry out any trading,
                              business  or other  activity  or own any  material
                              assets  other than  holding  the shares in Zenith,
                              acting   in   relation   to  the   joint   venture
                              constituted  by the JVA,  and  complying  with the
                              call options or  exercising  the put options under
                              the  JVA  and  will   not   incur   any   material
                              liabilities  of  any  nature  whatsoever  (whether
                              actual or contingent)  other than (i)  liabilities
                              for reasonable professional fees, (ii) liabilities
                              under  the  JVA,  (iii)   liabilities   under  the
                              security documentation to which it is a party, and
                              (iv) liabilities which will arise if it were wound
                              up.

                              Any and all of the Group's  right,  interest,  and
                              title in respect  of the shares in Zenith  will be
                              held at all times by the JVA Subsidiary.

                              The JVA Subsidiary  will not transfer or otherwise
                              dispense  of any  interest in any of the shares it
                              holds  from time to time in Zenith  other than (i)
                              pursuant to the exercise of a call option or a put
                              option  under  the  JVA or  (ii) a  disposal  to a
                              person  which is not a  member  of the  Group  and
                              where the net  proceeds  of such  disposal  are at
                              least  equal to the net  proceeds  which  would be
                              received by the Group  following  the  exercise of
                              such a put option at such time, in each case where
                              the  resulting  proceeds are applied in accordance
                              with the mandatory prepayment provisions below and
                              will not create any Encumbrance  over any interest
                              in any of the shares it holds from time to time in
                              Zenith except under any security documentation.

                              Prior to the Put  Elimination  Date, the mandatory
                              prepayment  of the Notes  (subject to the terms of
                              the

                                       31

<PAGE>

                              Intercreditor Agreement) will be required from the
                              Net Proceeds of:

                              (i)    any  exercise  of the put or  call  options
                                     under  the  JVA or any  other  disposal  of
                                     shares (or other interests) in Zenith;

                              (ii)   any claims for damages or other remedies in
                                     respect  of any  breach of the put and call
                                     options in the JVA;

                              (iii)  any  claim in  respect  of all  warranties,
                                     indemnities and  representations  contained
                                     in the JVA to the extent  connected  to the
                                     put and call options; and

                              (iv)   any flotation of, or sale or other disposal
                                     of all or  substantially  all of its assets
                                     and  undertakings  by, Zenith or any of its
                                     Subsidiaries.

Documentation:                Amended and Restated Note Purchase Agreement.

                              Intercreditor Agreement.

                              Guarantee  Agreements and security  documentation,
                              as set out above.

                              All  documentation  will be  satisfactory in form,
                              scope and  substance  to the  holders of the Notes
                              and their special counsel.

Conditions Precedent:         The effectiveness of the Amended and Restated Note
                              Purchase    Agreement    and   the    arrangements
                              contemplated   hereby  shall  be  subject  to  the
                              satisfaction of the following conditions precedent
                              (the date of such  satisfaction  being referred to
                              herein as the "Effective Date"):

                              (a)   the  effectiveness  of the amendments to the
                                    Syndicated  Loan Agreement  specified in the
                                    Indicative  Key   Restructuring   Terms  and
                                    Conditions  attached as Schedule 2 hereto on
                                    a basis  satisfactory  to the holders of the
                                    Notes;

                              (b)   the    execution    and   delivery   of   an
                                    Intercreditor    Agreement   in   form   and
                                    substance  consistent with the Intercreditor
                                    Term Sheet and a Common  Security Trust Deed
                                    in form and  substance  satisfactory  to the
                                    Majority Holders;

                              (c)   the Security Memorandum, duly executed.

                                       32

<PAGE>

                              (d)   the  execution and delivery of the Guarantee
                                    Agreements   and  the   security   documents
                                    described    in   the    section    entitled
                                    "Guarantees/Security"  above  (including the
                                    Pledge  Agreement  to  be  executed  by  the
                                    Company,   Cordiant   Holdings  GmbH,  Bates
                                    Deutschland    GmbH   and   Bates    Germany
                                    Werbeagentur  GmbH  over the  shares  in the
                                    relevant   German   Subsidiaries   and   the
                                    Abstract  Acknowledgement of Indebtedness to
                                    be    executed   by   the    Company)    and
                                    acknowledgements and confirmations from each
                                    existing   guarantor   that   all   existing
                                    guarantees are in full force and effect;

                              (e)   the  payment  by the  Company of the fees to
                                    the  holders of the Notes  described  in the
                                    section entitled "Fees" above;

                              (f)   the payment by the  Company of all  expenses
                                    described    in   the   Section    captioned
                                    "Expenses" below;

                              (g)   the delivery of satisfactory  legal opinions
                                    from US and English counsel to the Obligors,
                                    and the delivery of customary directors' and
                                    secretaries' closing certificates;

                              (h)   the receipt of all requisite board approvals
                                    and corporate authorisations by the Company,
                                    the Issuer,  the  Subsidiary  Guarantors and
                                    the security providers;

                              (i)   the delivery of directors  certificates from
                                    each  of  the  Company,   the  Issuer,   the
                                    Subsidiary Guarantors and security providers
                                    annexing  (inter  alia)  (i)  copies  of the
                                    constitutional   documents   of  each   such
                                    company   or   entity,    (ii)   appropriate
                                    supervisory and management board resolutions
                                    of each such  company  or entity  evidencing
                                    approval  of the entry into the  Amended and
                                    Restated   Note  Purchase   Agreement,   the
                                    security   documentation   and   all   other
                                    documentation   contemplated   thereby  (the
                                    "Documentation"),  and (iii)  signatures  of
                                    those persons  authorised by the supervisory
                                    and  management  board  resolutions  of each
                                    such  company or entity  referred to in (ii)
                                    to  sign  any  of the  Documentation  and to
                                    execute all such  undertakings,  statements,
                                    certificates,  notices, acknowledgements and
                                    other  documents  as may be  required  to be
                                    done,

                                       33

<PAGE>

                                    signed and  executed by or on behalf of each
                                    such  company or entity in  connection  with
                                    the  Documentation and otherwise in relation
                                    to or ancillary to the same;

                              (j)   a   report    from    PricewaterhouseCoopers
                                    addressed  (among  others) to the holders of
                                    the   Notes   and  the   Company   including
                                    confirmation  that the  holders of the Notes
                                    may rely thereon;

                              (k)   the delivery of a letter from the  Company's
                                    auditors confirming that they continue to be
                                    appointed  as the  auditors of the  Company,
                                    and  confirming  that they will  provide the
                                    auditors  report  referred to in the section
                                    entitled  "Financial   Information  (Pre-Put
                                    Elimination Date) above;

                              (l)   the  delivery  by the Company of a certified
                                    true,  complete  and  up-to-date   financial
                                    model  (the  "Financial  Model")  and annual
                                    operating budget for the 2002 Fiscal year;

                              (m)   the  delivery  by the Company of a certified
                                    true,   complete  and  up-to-date   list  of
                                    material   intercompany   loans   and  group
                                    structure   chart  in  form  and   substance
                                    satisfactory to the Majority Holders;

                              (n)   the  delivery  by the  Company  of a revised
                                    hedging   strategy   letter   in  form   and
                                    substance   satisfactory   to  the  Majority
                                    Holders;

                              (o)   copies,  certified  as a true,  complete and
                                    up-to-date  copies  by  a  Senior  Financial
                                    Officer,   of   the   audited   consolidated
                                    financial  statements  of the  Group for the
                                    Fiscal   Year  ended   December   31,   2001
                                    (together   with  the  Group's   preliminary
                                    audited  consolidated  financial  statements
                                    for  that  Fiscal   Year),   the   quarterly
                                    management  accounts  of the  Group  for the
                                    Fiscal  Quarter ended December 31, 2001, and
                                    the  monthly  management  accounts  for  the
                                    month ended  February 28,  2002,  (and which
                                    shall  be  deemed  to  have  been  delivered
                                    pursuant to the section entitled  "Financial
                                    Information   (Pre-Put   Elimination  Date)"
                                    above;

                              (p)   either:

                                       34

<PAGE>

                                    (i)    a copy, certified as a true copy by a
                                           Senior   Financial   Officer  of  all
                                           consents,  authorisations,   licences
                                           and   approvals   required   by   the
                                           Company,    the   Issuer   and   each
                                           Subsidiary   Guarantor  and  security
                                           provider to authorise, or required by
                                           the  Company,  the  Issuer  and  each
                                           Subsidiary   Guarantor  and  security
                                           provider  in  connection   with,  the
                                           execution,     delivery,    validity,
                                           enforceability  and  admissibility in
                                           evidence of the Documentation and the
                                           performance   by  the  Company,   the
                                           Issuer and each Subsidiary  Guarantor
                                           and   security    provider   of   its
                                           respective   obligations   under  the
                                           Documentation, or

                                    (ii)   a  certificate  signed  by  a  Senior
                                           Financial Officer of the Company that
                                           no   such   consent,   authorisation,
                                           licence or  approval  referred  to in
                                           clause  (~p)(i)  above is required by
                                           the   Company,   the  Issuer  or  any
                                           Subsidiary   Guarantor   or  security
                                           provider;

                              (q)   a  certificate   from  a  Senior   Financial
                                    Officer  of  the  Company   confirming  that
                                    utilisation in full of the facilities  under
                                    the  Syndicated  Loan Agreement (as amended)
                                    would not  render the Group in breach of any
                                    restriction on borrowings  applicable to the
                                    Group  in  its   respective   constitutional
                                    documents or elsewhere.

                              (r)   evidence that the JVA Subsidiary has acceded
                                    to the  JVA  and  that  all  of the  Group's
                                    right,  interest  and  title  to  shares  in
                                    Zenith  have  been  transferred  to the  JVA
                                    Subsidiary   and  copies  of  the  documents
                                    evidencing   such   accession  and  transfer
                                    certified by a Senior  Financial  Officer as
                                    true, complete and up-to-date;

                              (s)   the  delivery of copies,  certified  as true
                                    copies by a Senior Financial  Officer of the
                                    Company,   of  all  other  committed  credit
                                    facilities of the Group which are assumed to
                                    be in place in the Financial  Model, and any
                                    necessary  consents to the  amendment of the
                                    Existing   Note   Purchase   Agreements   in
                                    accordance  with  this term  sheet  required
                                    under  the  terms  of those  facilities  (or
                                    written confirmation from a

                                       35

<PAGE>

                                    Senior   Financial   Officer  that  no  such
                                    consents are required);

                              (t)   the delivery of a certificate  from a Senior
                                    Financial    Officer     confirming    that,
                                    immediately  following the  Effective  Date,
                                    the Group  will have no  Encumbrances  other
                                    than  Permitted   Encumbrances   (including,
                                    without limitation, duly certified copies of
                                    any release  documentation in respect of any
                                    such  Encumbrances  that  are not  Permitted
                                    Encumbrances);

                              (u)   the delivery of a certificate  from a Senior
                                    Financial    Officer     confirming    that,
                                    immediately  following the  Effective  Date,
                                    the Group will have no Borrowed  Money other
                                    than  as   permitted   by  the  Amended  and
                                    Restated Note Purchase Agreement;

                              (v)   information in respect of Zenith,  including
                                    the put option,  and copies of the  relevant
                                    documentation;

                              (w)   a report from KPMG,  together  with a letter
                                    from  KPMG,  addressed  to,  and  capable of
                                    being  relied  upon by,  the  holders of the
                                    Notes in respect of the KPMG report;

                              (x)   local legal  opinions from legal advisors to
                                    the  holders  of the  Notes  and the  Common
                                    Security  Trustee  in each  jurisdiction  in
                                    which a guarantor  or  security  provider is
                                    incorporated; and

                              (y)   evidence  of the  repayment  of  the  Korean
                                    debenture stock.

Expenses:                     The Company  will pay all  expenses of the holders
                              of the  Notes  in  connection  with  the  proposed
                              amendments,  including,  without  limitation,  the
                              fees and  expenses of Bingham Dana LLP and Willkie
                              Farr & Gallagher,  special  counsel to the holders
                              of  the  Notes,   the  other   local  law  counsel
                              instructed  by  Bingham  Dana LLP on behalf of the
                              holders  of the Notes  and  PricewaterhouseCoopers
                              reporting  accountants to the holders of the Notes
                              and the Banks,  regardless of whether the proposed
                              amendments are consummated.

Governing  law:               New York law (Amended and Restated  Note  Purchase
                              Agreement and Guarantee Agreements)

                                       36

<PAGE>

                              English law (Intercreditor Agreement)

Definitions:                  "Borrowed Money" means  Indebtedness in respect of
                              (i) money borrowed or raised and debit balances at
                              banks, (ii) any amount raised pursuant to any note
                              purchase  facility  or the issue of bonds,  notes,
                              debentures,  loan stock or any similar instrument,
                              (iii) any counter-indemnity  obligation in respect
                              of  a  guarantee,   indemnity,  bond,  standby  or
                              documentary   letter   of   credit  or  any  other
                              instrument   issued   by  a  bank   or   financial
                              institution, (iv) acceptance or documentary credit
                              facilities,  (v)  receivables  sold or  discounted
                              (otherwise  than on a  non-recourse  basis),  (vi)
                              deferred  payments for assets or services acquired
                              where the deferred  payment is arranged  primarily
                              as a method of raising  finance or  financing  the
                              acquisition  of the  asset  or  services  acquired
                              (excluding  credit granted in the ordinary  course
                              of trading for a period not exceeding 120 days (or
                              in the  case  of  Greece,  Spain  and  Italy,  not
                              exceeding  180  days) and  deferred  consideration
                              payments in respect of Permitted  Acquisitions  or
                              Permitted   Investments   and   certain   deferred
                              consideration obligations be set out in a schedule
                              to  the   Amended  and   Redated   Note   Purchase
                              Agreement,  (vii) the  capital  element of Finance
                              Leases and hire purchase contracts, (viii) (except
                              for   the   purposes   of   the    definition   of
                              "Consolidated   Gross   Borrowings")   Derivatives
                              Contracts,  (ix) any  preference  or other  shares
                              which are mandatorily  redeemable or redeemable at
                              the  option  of the  holder  thereof  (other  than
                              certain  preference shares be listed on a schedule
                              to  the   Amended  and   Redated   Note   Purchase
                              Agreement),  (x) any other transaction  (including
                              without   limitation   forward  sale  or  purchase
                              agreements  where the deferred payment is arranged
                              primarily  as  a  method  of  raising  finance  or
                              financing the acquisition of the asset or services
                              acquired)  having  the  commercial   effect  of  a
                              borrowing or raising of money or of any of (ii) to
                              (ix)  above  and  (x)  guarantees  in  respect  of
                              Indebtedness  of any person  falling within any of
                              (i) to (x) above.

                              "Budgeted  Capital   Expenditure"   means  Capital
                              Expenditure incurred or to be incurred in a Fiscal
                              Year up to a maximum of:

                                 Fiscal Year ended             Amounts
                                 December 31, 2002             (pound)10,000,000
                                 December 31, 2003             (pound)17,500,000

                                       37

<PAGE>

                                 December 31, 2004             (pound)20,000,000

                              "Capital  Expenditure" means any expenditure which
                              should be treated as  capital  expenditure  in the
                              audited  consolidated  financial statements of the
                              Group in accordance with Fixed GAAP.

                              "Consolidated  EBITDA"  means,  in  respect of any
                              period,  the  consolidated  trading  profits,  but
                              before:

                              (i)    exceptional items and  extraordinary  items
                                     (each  as  separately   identified  in  the
                                     relevant profit and loss account);

                              (ii)   profits and losses on  disposals of capital
                                     assets;

                              (iii)  amortisation    of   goodwill   and   other
                                     intangible  assets;

                              (iv)   depreciation and impairment;

                              (v)    Consolidated Gross Interest Expenditure and
                                     interest  received or receivable;  and

                              (vi)   Taxes;

                              of the Group for such period and after taking into
                              account the applicable share of any profit or loss
                              of any joint  venture or other person which is not
                              a  Subsidiary  of the Company and after  deducting
                              (to the extent  otherwise  included)  profits  (or
                              adding  back  losses)   attributable  to  minority
                              interests  in  members  of  the  Group  and  after
                              deducting (to the extent not  otherwise  deducted)
                              Property Payments.

                              "Consolidated  Excess Cash Flow" means, in respect
                              of any Fiscal Year the Consolidated  EBITDA of the
                              Group for such period:

                              after the addition of (if not already added):

                              (a)   cash dividends  received from investments in
                                    joint  ventures and other  persons which are
                                    not   Subsidiaries  of  the  Company  (after
                                    Taxes);

                              (b)   Tax rebates received in cash which the Group
                                    is entitled to retain; and

                              (c)   any  other   non-cash   items   expensed  in
                                    arriving at Consolidated EBITDA,

                                       38

<PAGE>

                                    after  the  deduction  of  (if  not  already
                                    deducted):

                                    (i)    payments   in   respect   of  Capital
                                           Expenditure;

                                    (ii)   payments  of  cash   exceptional  and
                                           extraordinary items;

                                    (iii)  Group Taxes paid;

                                    (iv)   any other  non-cash items credited in
                                           arriving at Consolidated EBITDA,

                                    (v)    Consolidated       Net       Interest
                                           Expenditure;

                                    (vi)   all  cash   dividends   paid  by  the
                                           Company and all cash  dividends  paid
                                           in respect of minority  interests  in
                                           other members of the Group;

                                    (vii)  all repayments and prepayments of the
                                           Notes  and  all  amounts  applied  in
                                           repayment  and  cancellation  of  the
                                           facilities  under the Syndicated Loan
                                           Agreement  (where crediting cash to a
                                           cash collateral  account pending such
                                           application  is  deemed to be such an
                                           actual    prepayment)    except   for
                                           mandatory  repayments or  prepayments
                                           of the Notes or the facilities  under
                                           the  Syndicated   Loan  Agreement  in
                                           accordance  with  the  terms  of  the
                                           Syndicated Loan Agreement  and/or the
                                           Amended and Restated  Loan  Agreement
                                           (as  applicable)  to the extent  that
                                           the   proceeds   from  the   relevant
                                           transaction  which  give rise to such
                                           repayments   or    prepayments    are
                                           excluded in determining  Consolidated
                                           EBITDA for the period;

                                    (viii) the   principal   amount   of  rental
                                           payments   in   respect   of  Finance
                                           Leases;

                                    (ix)   all  cash   consideration   paid  for
                                           acquisitions  constituting  Permitted
                                           Acquisitions   (including,    without
                                           limitation,  by  way of  earnouts  or
                                           deferred consideration); and

                                    (x)    all amounts paid in  connection  with
                                           employee share option schemes,

                                    and  excluding the  applicable  share of any
                                    loss or profit of any joint venture or other
                                    person  which  is  not a  Subsidiary  of the
                                    Company included in arriving at Consolidated
                                    EBITDA,

                                       39

<PAGE>

                                    in  each  case  for,  or paid  during,  such
                                    Fiscal   Year  and  all   calculated   on  a
                                    consolidated basis.

                                    "Consolidated  Gross  Borrowings"  means the
                                    aggregate principal or capital amount of all
                                    Borrowed   Money   incurred   by  the  Group
                                    (including  any  fixed  or  minimum  premium
                                    payable   on  final   repayment)   plus  the
                                    aggregate   principal  element  of  Borrowed
                                    Money secured by any Encumbrance over all or
                                    any  part  of  the  undertaking,   property,
                                    assets,  rights or revenues of any member of
                                    the Group except that:

                                    (i)    moneys  owing  by one  member  of the
                                           Group to another  member of the Group
                                           shall not be taken into account;

                                    (ii)   to   avoid   double   counting,    no
                                           guarantee  of a  liability  which  is
                                           already   taken  into  account  shall
                                           itself be taken into account;

                                    (iii)  no  liability  shall  be  taken  into
                                           account   more   than   once  in  any
                                           computation;

                                    (iv)   Consolidated     Gross     Borrowings
                                           expressed   in   or   calculated   by
                                           reference  to a  currency  other than
                                           Sterling   shall  be  converted  into
                                           Sterling by  reference to the rate of
                                           exchange  used by the Company for the
                                           conversion   of  such   currency   in
                                           accordance with the management policy
                                           of converting such amounts on a daily
                                           basis  or, if the  relevant  currency
                                           was   not   thereby   involved,    by
                                           reference  to the rate of exchange or
                                           approximate  rate of exchange  ruling
                                           on such date and  determined  on such
                                           basis  as the  Majority  Holders  may
                                           determine or approve;

                                    (v)    the principal  amount of Consolidated
                                           Gross   Borrowings   deemed   to   be
                                           outstanding  in  relation  to Finance
                                           Leases  or hire  purchase  agreements
                                           shall  be the  present  value  of the
                                           minimum   lease   or  hire   payments
                                           discounted   at  the  interest   rate
                                           implicit  in the  relevant  lease  or
                                           hire purchase agreement;

                                    (vi)   Indebtedness   in   respect  of  cash
                                           collateralised guarantees issued by a
                                           Bank or any of its  associates or any
                                           bank under any  replacement  facility
                                           in  respect  thereof on behalf of the
                                           Group to media  authorities shall not
                                           be taken into account;

                                       40

<PAGE>

                                    (vii)  Indebtedness  of the Group in respect
                                           of the guarantees  issued by banks on
                                           behalf   of  the   Group   to   media
                                           authorities  in Korea and the  United
                                           Kingdom   shall  not  be  taken  into
                                           account; and

                                    (viii) without  duplication,  debit balances
                                           at any bank or financial institutions
                                           under     the     cash     management
                                           arrangements  of the  Group  shall be
                                           taken into  account net of the credit
                                           balances of the Group at such bank or
                                           financial  institution  to the extent
                                           that such credit balances are subject
                                           to contractual  set-off  against such
                                           debt balances  (both before and after
                                           insolvency)     under    such    cash
                                           management arrangements.

                                    "Consolidated  Gross  Interest  Expenditure"
                                    means, in respect of a period, the aggregate
                                    amount (calculated on a consolidated  basis)
                                    of  all  continuing,   regular  or  periodic
                                    costs,  charges and expenses  accrued during
                                    that period in respect of Consolidated Gross
                                    Borrowings, including:

                                    (a)   any  acceptance   commission  paid  or
                                          payable  in  respect  of any  bills of
                                          exchange    or    other     negotiable
                                          instruments;

                                    (b)   any initial issue discount  allowed on
                                          the issue of debentures (to the extent
                                          relating to that period when amortised
                                          over the term of such debentures); and

                                    (c)   the  interest   component  of  rentals
                                          under Finance Leases,

                                    but   excluding:

                                    (i)   arrangement  and  other  one-off  fees
                                          (including  the  "restructuring  fees"
                                          and   "P1K   management   fees"   (and
                                          interest  thereon) referred to in, and
                                          pursuant to the terms of, the proposed
                                          amendments  to  the  Syndicated   Loan
                                          Agreement and the P1K Management  Fees
                                          (as  defined  below)),  to the  extent
                                          relating to that period when amortised
                                          over   the   term   of  the   relevant
                                          Consolidated Gross Borrowings); and

                                    (ii)  amounts discounted for FRS12 or SSAP24
                                          purposes   to  the  extent   they  are
                                          non-cash items.

                                       41

<PAGE>

                                    "Consolidated   Net  Interest   Expenditure"
                                    means,   in   respect   of  a  period,   the
                                    Consolidated   Gross  Interest   Expenditure
                                    accrued   for  that  period  net  of  credit
                                    interest  accrued by the Group  during  such
                                    period.

                                    "Finance  Lease" means a lease  treated as a
                                    finance   lease   pursuant   to  Fixed  GAAP
                                    (including, for the avoidance of doubt, SSAP
                                    21).

                                    "Net  Proceeds"   means,  in  respect  of  a
                                    disposal  of an asset or any of the  matters
                                    referred  to  in  the  mandatory  prepayment
                                    provisions contained in the section entitled
                                    "Zenith  Put and Call  Options"  above,  the
                                    full amount of proceeds received by a member
                                    of the  Group in  respect  thereof  less the
                                    reasonable  costs  incurred by the  relevant
                                    member of the Group in relation  thereto for
                                    which  purpose  (a) such  proceeds  shall be
                                    taken   to    include,    in   addition   to
                                    consideration  directly  attributable to the
                                    disposal of such asset or such  matter,  any
                                    amount  owing to and set-off by the relevant
                                    purchaser or other relevant third party, (b)
                                    any proceeds received otherwise than in cash
                                    will be  treated as Net  Proceeds  only upon
                                    the subsequent realization of cash from such
                                    proceeds and (c) "reasonable  costs incurred
                                    by  the   relevant   member  of  the  Group"
                                    includes   reasonable  legal  fees,  agents'
                                    commissions,  auditors'  fees,  registration
                                    fees and Taxes paid or properly provided for
                                    in  accordance  with GAAP (where such Tax is
                                    likely  to   become   payable   within   the
                                    following 18 months, or, only in the case of
                                    (i) any  exercise of the put or call options
                                    under  the  JVA or  any  other  disposal  of
                                    shares  (or  other  interests)  in Zenith or
                                    (ii)  any  flotation  of,  or sale or  other
                                    disposal of all or substantially  all of its
                                    assets and undertakings by, Zenith or any of
                                    its   Subsidiaries,    where   the   Company
                                    demonstrates to the reasonable  satisfaction
                                    of the  Majority  Holders that such Tax will
                                    become payable after such period).

                                    "Permitted Acquisitions" means:

                                    (a)   the acquisitions listed in the Earnout
                                          Projections  for 2002 to 2004 provided
                                          by the  Company to the  holders of the
                                          Notes and dated February 4, 2002;

                                    (b)   investments   in  the  then   existing
                                          Subsidiary  Guarantors (or a member of
                                          the  Group  or a newly  formed  entity
                                          which  in  each  case   simultaneously
                                          becomes a  Subsidiary  Guarantor)  and
                                          investments  by a member  of the Group
                                          which is not a Subsidiary

                                       42

<PAGE>

                                          Guarantor  in  another  member  of the
                                          Group   which  is  not  a   Subsidiary
                                          Guarantor;

                                    (c)   Permitted   Investments   (as  defined
                                          below); and

                                    (d)   the acquisition of related  businesses
                                          (including    companies    where   the
                                          liability  of  its   shareholders   is
                                          limited  to  their   respective  share
                                          capital in such  company but not other
                                          entities) provided that:

                                          (i)   the    consideration    (without
                                                double   counting   within   the
                                                Group),    including,    without
                                                limitation,     any     deferred
                                                consideration          (whenever
                                                payable), and the obligations in
                                                respect of Borrowed Money of any
                                                such     company     immediately
                                                following  its   acquisition  or
                                                repaid directly or indirectly by
                                                any   member  of  the  Group  or
                                                otherwise  assumed  by the Group
                                                and  taking  the  value  of  any
                                                non-cash  consideration  at  the
                                                higher of its stated value under
                                                the    agreement(s)    for   the
                                                acquisition  in question and the
                                                market     value     of     such
                                                consideration  on the date  such
                                                agreement(s)  were  entered into
                                                by the Group,  in respect of all
                                                such  acquisitions  by the Group
                                                (other    than     consideration
                                                constituted  by ordinary  shares
                                                in   the   Parent    issued   or
                                                transferred   to  the   relevant
                                                vendor  (or as it  may  direct))
                                                shall not exceed  $2,000,000 (or
                                                its   equivalent  in  any  other
                                                currency)  in  aggregate  in any
                                                Fiscal Year; and

                                          (ii)  the consideration constituted by
                                                ordinary  shares in the  Company
                                                issued  or  transferred  to  the
                                                relevant  vendor  (or  as it may
                                                direct))   in   respect  of  any
                                                single   acquisition  shall  not
                                                exceed   $20,000,000   (or   its
                                                equivalent); and

                                          (iii) the  finance   director  of  the
                                                Company  delivers a  certificate
                                                to the holders of Notes at least
                                                5  Business   Days   before  any
                                                member of the Group  enters into
                                                any commitment  (conditional  or
                                                otherwise)   to  make   such  an
                                                acquisition in which the finance
                                                director of the Company confirms
                                                that in his opinion

                                       43

<PAGE>

                                                (but    without   any   personal
                                                liability  on the  part  of such
                                                finance director):

                                                (A)   the Company is basing such
                                                      certificate  on  the  most
                                                      recent           financial
                                                      information   relating  to
                                                      such  business  which  has
                                                      been   obtained   by   the
                                                      Company (acting  prudently
                                                      and  reasonably)  and  the
                                                      Group's  latest  forecasts
                                                      and projections (which are
                                                      fair  and  reasonable  and
                                                      have taken full and proper
                                                      account of the business to
                                                      be so acquired (including,
                                                      without  limitation,   all
                                                      contingent     liabilities
                                                      relating  to the  business
                                                      to be so acquired);

                                                (B)   the   business  to  be  so
                                                      acquired is not  insolvent
                                                      and is EBITDA positive (as
                                                      determined  in  accordance
                                                      with  the   definition  of
                                                      Consolidated EBITDA above,
                                                      but  adjusted  to  exclude
                                                      the  effect  of   historic
                                                      non-recurring  costs which
                                                      will no longer be incurred
                                                      by that business following
                                                      its acquisition);

                                                (C)   such  acquisition  is not,
                                                      and  the  Company  is  not
                                                      aware  (after due enquiry)
                                                      of  any  matter  or  event
                                                      which    is,    reasonably
                                                      likely   to  result  in  a
                                                      breach  of  Section   10.3
                                                      (Financial  Covenants)  of
                                                      the Amended  and  Restated
                                                      Note Purchase Agreement or
                                                      an Event of Default  under
                                                      Sections   11(a),   11(b),
                                                      11(0, 11(g), 11(h), 11(i),
                                                      11(j),  11(k) and 11(1) of
                                                      the Amended  and  Restated
                                                      Note  Purchase   Agreement
                                                      either    immediately   or
                                                      within the  period  ending
                                                      12  months  after the date
                                                      of such acquisition;

                                                (D)   the  Group  is  reasonably
                                                      likely to have  sufficient
                                                      working capital during the
                                                      period  ending  12  months
                                                      after  the  date  of  such
                                                      acquisition;

                                       44

                                                (E)   after  taking into account
                                                      any  Capital   Expenditure
                                                      incurred  by the  Group in
                                                      making  such  acquisition,
                                                      the  Group  will  still be
                                                      able, in  compliance  with
                                                      the financial  covenant in
                                                      the Amended  and  Restated
                                                      Note  Purchase   Agreement
                                                      relating     to    maximum
                                                      capital   expenditure   as
                                                      described  in the  section
                                                      entitled        "Financial
                                                      Covenants"    above,    to
                                                      undertake       sufficient
                                                      Capital  Expenditure so as
                                                      to properly  maintain  its
                                                      businesses    during   the
                                                      period  ending  12  months
                                                      after  the  date  of  such
                                                      acquisition;

                                                (F)   in     the     case     of
                                                      acquisitions by members of
                                                      the  Group  that  are  not
                                                      Subsidiary     Guarantors,
                                                      such  acquisition  is  not
                                                      funded     directly     or
                                                      indirectly      by     any
                                                      Subsidiary      Guarantor,
                                                      other  than to the  extent
                                                      such    funding    is    a
                                                      Permitted Investment; and

                                                (G)   no  Default  or  Event  of
                                                      Default has occurred which
                                                      is   continuing   and   no
                                                      Default    or   Event   of
                                                      Default  will  arise  as a
                                                      result       of       such
                                                      acquisition; and

                                          (iv)  no  Default  or Event of Default
                                                has occurred which is continuing
                                                and  no   Default  or  Event  of
                                                Default  will  arise as a result
                                                of such acquisition,

                                          and for the  avoidance  of doubt,  any
                                          such  acquired   businesses  shall  be
                                          immediately  subject  to the  negative
                                          covenants  described  in clause (b) of
                                          the section entitled  "Affirmative and
                                          Negative       Covenants      (Pre-Put
                                          Elimination   Date)"   above  and  the
                                          provisions    of   section    entitled
                                          "Guarantees/Security" above.

                                    "Permitted Borrowed Money" means:

                                    (a)   Borrowed  Money  arising  from  normal
                                          trade credit;

                                       45

                                    (b)   the  Borrowed  Money  of  any  persons
                                          acquired  by any  member  of the Group
                                          pursuant  to  the  D  Acquisition  (as
                                          defined   in   the   Syndicated   Loan
                                          Agreement) provided that such Borrowed
                                          Money at no time  exceeds  Korean  Won
                                          16,900,000,000  (or its equivalent) in
                                          aggregate;

                                    (c)   any  Borrowed   Money  of  any  person
                                          (other   than   pursuant   to   the  D
                                          Acquisition    or    the    Lighthouse
                                          Acquisition  (as  each  such  term  is
                                          defined   in   the   Syndicated   Loan
                                          Agreement))  acquired by any member of
                                          the  Group   after  the  date  of  the
                                          Syndicated Loan Agreement,  where such
                                          Borrowed  Money  was  existing  at the
                                          time of such  acquisition  and was not
                                          incurred  in  contemplation  of, or in
                                          connection  with, that acquisition and
                                          where no  member  of the  Group  other
                                          than the  person so  acquired  has any
                                          obligation  (actual or  contingent) in
                                          respect  of such  Borrowed  Money (and
                                          where such Borrowed Money is permitted
                                          under clause (d) of the  definition of
                                          "Permitted Acquisitions" above) and is
                                          repaid or otherwise  discharged within
                                          30 days of such acquisition;

                                    (d)   Borrowed     Money    not    exceeding
                                          Australian   Dollars   10,000,000   in
                                          aggregate   in   respect   of  working
                                          capital  facilities  made available in
                                          Australia to members of the Group;

                                    (e)   without duplication, Borrowed Money in
                                          respect of debit  balances at any bank
                                          or  financial  institution  under  the
                                          cash  management  arrangements  of the
                                          Group (net of the credit  balances  of
                                          the  Group at such  bank or  financial
                                          institution  to the  extent  that such
                                          credit   balances   are   subject   to
                                          contractual set-off against such debit
                                          balances   (both   before   and  after
                                          insolvency  under such cash management
                                          arrangements)  where the  aggregate of
                                          all such  net  debit  balances  of the
                                          Group does not exceed (pound)5,000,000
                                          (or its equivalent);

                                    (f)   Borrowed   Money  in  respect  of  the
                                          Syndicated  Loan  Agreement  (as  such
                                          terms  may be  amended  in  accordance
                                          with the Indicative Key  Restructuring
                                          Terms  and   Conditions   attached  as
                                          Schedule     2    hereto    and    the
                                          Intercreditor   Term  Sheet)  and  the
                                          Notes;

                                    (g)   Indebtedness  in  respect  of  Finance
                                          Leases

                                       46

<PAGE>

                                          provided that the aggregate  amount of
                                          the    principal    element   of   the
                                          Indebtedness under such Finance Leases
                                          does not exceed  (pound)2,000,000  (or
                                          its equivalent) at any time;

                                    (h)   performance  bonds  issued by a member
                                          of  the  Group  in   respect   of  the
                                          obligations  (other  than any  payment
                                          obligations)  of another member of the
                                          Group  in  the   ordinary   course  of
                                          trading;

                                    (i)   derivatives  contracts entered into in
                                          accordance  with the hedging  strategy
                                          agreed with the Majority Holders on or
                                          about the Effective Date;

                                    (j)   Borrowed  Money  owed by one member of
                                          the  Group to  another  member  of the
                                          Group   (to   the   extent   otherwise
                                          permitted   under  the   Amended   and
                                          Restated Note Purchase Agreement);

                                    (k)   Borrowed   Money  of  in   respect  of
                                          guarantees  issued  by banks on behalf
                                          of  members  of  the  Group  to  media
                                          authorities  in Korea  and the  United
                                          Kingdom  in each  case  in  connection
                                          with   bona  tide   arrangements   for
                                          maintenance of media  accreditation in
                                          accordance    with   normal   industry
                                          practice; and

                                    (1)   Borrowed  Money  in  addition  to that
                                          permitted  by clauses  (a) through (k)
                                          above not exceeding  (pound)16,000,000
                                          (or its  equivalent)  in  aggregate at
                                          any given time.

                                    "Permitted Disposals" means:

                                    (a)   the disposal of  stock-in-trade in the
                                          ordinary course of day to day trading;

                                    (b)   any  disposal for cash on arm's length
                                          terms  where  the   aggregate  of  the
                                          greater of the  consideration  and the
                                          market  value  of all  such  disposals
                                          does not exceed  (pound)10,000,000 (or
                                          its  equivalent)   provided  that  the
                                          aggregate   Net   Proceeds   of   such
                                          disposal  are  applied  as (and to the
                                          extent)   required   by  the   section
                                          entitled    "Prepayment    on    Asset
                                          Disposals" above; and

                                    (c)   any disposal by:

                                          (i)   a  member  of  the  Group  to  a
                                                Subsidiary Guarantor; and

                                       47

<PAGE>

                                          (ii)  a member of the  Group  which is
                                                not a  Subsidiary  Guarantor  to
                                                another   member  of  the  Group
                                                which   is   not  a   Subsidiary
                                                Guarantor,

                                          but so  that in each  case  where  any
                                          such asset is shares,  other ownership
                                          interests  in any  person  or  entity,
                                          real   property  or  real  estate  (or
                                          related      insurance      policies),
                                          receivables  (including   intra--Group
                                          debts)  or,  in each  case,  rights or
                                          claims in  respect  of any such  asset
                                          and is subject or is  expressed  to be
                                          subject to an Encumbrance  pursuant to
                                          any   security    documentation   such
                                          disposal   shall  only  be   permitted
                                          either where the Majority  Holders are
                                          satisfied    that    the    Subsidiary
                                          Guarantee given by the disposee of the
                                          obligations  of the  Company,  Issuer,
                                          Subsidiary   Guarantors  and  security
                                          providers   under   (inter  alia)  the
                                          Syndicated Loan  Agreement,  the Notes
                                          and the security  documentation is not
                                          limited to a greater  extent than that
                                          given by the  disposer and that either
                                          (1) such Encumbrance is not prejudiced
                                          as a result  of such  disposal  or (2)
                                          the asset concerned becomes subject to
                                          a fully  enforceable,  legally binding
                                          Encumbrance  in favour  of the  Common
                                          Security  Trustee  (as  defined in the
                                          Intercreditor  Term  Sheet)  the Banks
                                          and the  holders of the Notes on terms
                                          substantially  equivalent to or better
                                          than such  other  Encumbrance  or with
                                          the consent of the Majority Holders;

                                    (d)   dealings   with  trade   debtors  with
                                          respect to book debts in the  ordinary
                                          course of trading;

                                    (e)   disposals  of  cash  on  arm's  length
                                          terms not otherwise  prohibited by the
                                          Amended  and  Restated  Note  Purchase
                                          Agreement     and     the     security
                                          documentation;

                                    (f)   disposals which  constitute  Permitted
                                          Investments (as defined below); and

                                    (g)   disposals  by Sonic Sun  Limited  with
                                          respect  to any of the shares it holds
                                          Zenith    Optimedia    Group   Limited
                                          permitted  under the section  entitled
                                          "Zenith  Put and Call  Options"  above
                                          provided  that  the  proceeds  of such
                                          disposals  are  applied in  accordance
                                          with    the    mandatory    prepayment
                                          provisions described in the section

                                       48

                                          entitled    "Zenith   Put   and   Call
                                          Options",

                                    and so that  where the  asset or assets  the
                                    subject of a disposal  permitted  under this
                                    definition  (whether  pursuant to clause (a)
                                    to (g)  above  or  with  the  prior  written
                                    consent  of  the   Majority   Holders   (but
                                    excluding the assets referred to in the last
                                    paragraph of clause (c) above in the case of
                                    any disposal  under such  clause)) is or are
                                    subject  to an  Encumbrance  created  by the
                                    security  documentation,  the consent of the
                                    Majority  Holders (but without  prejudice or
                                    responsibility to or in respect of any other
                                    requisite  consent)  shall be  granted  (and
                                    shall  be  deemed  to be  granted)  for  the
                                    release  of the  Encumbrance  created by the
                                    security   documentation  over  such  assets
                                    provided that no Default or Event of Default
                                    shall  have   occurred  and  be   continuing
                                    neither remedied nor waived and the Majority
                                    Holders  shall   accordingly   instruct  the
                                    Common   Security   Trustee   to  grant  the
                                    relevant releases.

                                    "Permitted Encumbrances" means:

                                    (a)   any Encumbrance  constituting Security
                                          in   favor  of  the   Banks   and  the
                                          Noteholders  as described in this term
                                          sheet;

                                    (b)   any  right  of   set-off   arising  by
                                          operation   of  law  in  the  ordinary
                                          course of trading;

                                    (c)   any Encumbrance created in favour of a
                                          Bank in connection  with any bona fide
                                          cash    management    and/or   netting
                                          arrangements   for  the  Group   which
                                          constitute Permitted Investments;

                                    (d)   any lien arising with respect to Taxes
                                          of the Group;

                                    (e)   any  Encumbrance  which  the  Majority
                                          Holders  has at any  time  in  writing
                                          agreed    shall    be   a    Permitted
                                          Encumbrance;

                                    (f)   certain Encumbrances to be listed on a
                                          Schedule to the  Amended and  Restated
                                          Note Purchase  Agreement  securing the
                                          amount  set   opposite   the  relevant
                                          Encumbrance in such schedule,  but not
                                          any increase in such amount;

                                    (g)   any  Encumbrance  given by a member of
                                          the Group in connection with bona fide
                                          arrangements  for the  maintenance  of
                                          media

                                       49

<PAGE>

                                          accreditation  of  any  member  of the
                                          Group  provided  that such  members of
                                          the  Group  purchase  media  (and give
                                          such  Encumbrances) only in accordance
                                          with normal industry practice;

                                    (h)   any  Encumbrance  on  assets  acquired
                                          after the date of the  Effective  Date
                                          or  on  assets  of  a  company   which
                                          becomes   a   Subsidiary   after   the
                                          Effective  Date  (which   Encumbrances
                                          were  in  existence  at  the  date  of
                                          acquisition or such company becoming a
                                          Subsidiary,  but were not  created  in
                                          contemplation  thereof)  but  in  each
                                          case  only  if  the   maximum   amount
                                          thereby permitted from time to time to
                                          be secured has not been  increased  on
                                          account  of, or since the date of, the
                                          acquisition  of such asset or the date
                                          on  which  such   company   becomes  a
                                          Subsidiary  and provided that the same
                                          is  discharged  in full within 30 days
                                          of   the   date   of   the    relevant
                                          acquisition or such company becoming a
                                          Subsidiary;

                                    (i)   any Encumbrance (a "New  Encumbrance")
                                          created  by any member of the Group in
                                          substitution   for   any   Encumbrance
                                          referred to in paragraph (f) above (an
                                          "Existing  Encumbrance") provided that
                                          (i)  such  Existing   Encumbrance   is
                                          irrevocably    and     unconditionally
                                          discharged  no later  than the time of
                                          creation of the New Encumbrance,  (ii)
                                          the New  Encumbrance  relates  only to
                                          the  same   assets  as  the   Existing
                                          Encumbrance and (iii) the Indebtedness
                                          secured  by the New  Encumbrance  does
                                          not exceed the Indebtedness secured by
                                          the Existing Encumbrance;

                                    (j)   any Encumbrance created in favour of a
                                          plaintiff   or  a  defendant   in  any
                                          action,   or  the  court  or  tribunal
                                          before  which such  action is brought,
                                          as  security  for costs  for  expenses
                                          where  any  member  of  the  Group  is
                                          prosecuting  or defending  such action
                                          in the  bona  fide  interest  of  such
                                          member  and/or any other member of the
                                          Group  provided  that the total amount
                                          secured      does      not      exceed
                                          (pound)500,000;

                                    (k)   the trust  established  in  accordance
                                          with the  terms of the  letters  dated
                                          August 21,  1997 to  beneficiaries  of
                                          the   support   agreement   dated  1st
                                          October 1, 1987 and made  between  the
                                          Company and Ted Bates Worldwide Inc.;

                                       50

                                    (l)   liens  arising by  operation of law or
                                          by way  of  contract  in the  ordinary
                                          course of  business to the extent that
                                          the  same  would  otherwise  arise  by
                                          operation  of law, and not incurred in
                                          connection   with   the   raising   of
                                          finance;

                                    (m)   any   Encumbrance   constituted  by  a
                                          permitted Finance Lease;

                                    (n)   any  pledge  of   documents  of  title
                                          relevant to the asset as security  for
                                          the  liabilities  of a  member  of the
                                          Group  in  respect  of  a  documentary
                                          credit   facility  taken  out  in  the
                                          ordinary course of business;

                                    (o)   any   retention   of  title  to  goods
                                          supplied  to any  member  of the Group
                                          where that  retention  is  required by
                                          the supplier in the ordinary course of
                                          its   trading    activities   and   on
                                          customary terms;

                                    (p)   any Encumbrance granted by a member of
                                          the Group  over any rent  deposits  as
                                          security  for  rental  payments  to be
                                          made by such member of the Group under
                                          or  pursuant  to any lease of premises
                                          used for its business; and

                                    (q)   any    Encumbrance    not    otherwise
                                          permitted  pursuant to paragraphs  (a)
                                          to (p) above  (inclusive) and securing
                                          Indebtedness    in    aggregate    not
                                          exceeding(pound)2,000,000.

                                    "Permitted Guarantees" means:

                                    (a)   any   Guaranty   which  the   Majority
                                          Holders  have at any  time in  writing
                                          agreed shall be a Permitted Guarantee;

                                    (b)   any Guaranty  given by a member of the
                                          Group  of  the   obligations   of  any
                                          Subsidiary  Guarantor,   any  Guaranty
                                          given by a member of the  Group  which
                                          is not a  Subsidiary  Guarantor of the
                                          obligations  of another  member of the
                                          Group  which is also not a  Subsidiary
                                          Guarantor  and  any  Guarantees  which
                                          constitutes a Permitted Investment (as
                                          defined below);

                                    (c)   certain Guarantees given by members of
                                          the Group to be  listed on a  schedule
                                          to  the  Amended  and  Restated   Note
                                          Purchase  Agreement  guaranteeing  the
                                          amount  set   opposite   the  relevant
                                          guarantee on such

                                       51

<PAGE>

                                          schedule, but not any increase in such
                                          amount;

                                    (d)   any Guaranty  given by a company which
                                          becomes   a   Subsidiary   after   the
                                          Effective Date (which  Guaranty was in
                                          existence  at the  date  such  company
                                          becomes  a  Subsidiary   and  was  not
                                          created in contemplation  thereof) but
                                          only if the maximum amount  guaranteed
                                          has not been  increased  on account of
                                          or  since  the  date  on  which   such
                                          company   becomes  a  Subsidiary   and
                                          provided  that the same is  discharged
                                          within 30 days of the relevant company
                                          becoming a Subsidiary;

                                    (e)   any Guaranty given by a company in the
                                          Group in favor of a bank in connection
                                          with any  bona  fide  cash  management
                                          and/or  netting  arrangements  for the
                                          Group   which   constitute   Permitted
                                          Investments;

                                    (f)   any Guaranty  given by a member of the
                                          Group in  connection  with  bona  fide
                                          arrangements  for the  maintenance  of
                                          media  accreditation  of any member of
                                          the Group  provided  that such members
                                          of the Group  purchase media (and give
                                          such  Guarantees)  only in  accordance
                                          with normal industry practice;

                                    (g)   any indemnity given by a member of the
                                          Group  required  by a bank  as part of
                                          its normal  terms and  conditions  for
                                          transacting business indemnifying such
                                          bank  against  costs and losses it may
                                          sustain as a consequence  of accepting
                                          telephone  or  facsimile  instructions
                                          from such member of the Group;

                                    (h)   any  counter  indemnity  given  by any
                                          member of the Group in connection with
                                          a  Bid   Bond  (as   defined   in  the
                                          Syndicated Loan Agreement).

                                    "Permitted     Investments"     means    (i)
                                    investments  in  the  shares  of  (or  other
                                    ownership   interests  in),  (ii)  loans  or
                                    credit  granted to, (iii)  disposals to (not
                                    otherwise permitted under clauses (a) to (e)
                                    inclusive of the  definition  of  "Permitted
                                    Disposals"   below  or  clause  (g)  of  the
                                    definition of "Permitted  Disposals"  above,
                                    and (iv) guarantees of the  Indebtedness of,
                                    any  member  of  the  Group  which  is not a
                                    Subsidiary Guarantor (or such investments in
                                    establishing  a new entity which once formed
                                    is a  member  of the  Group  which  is not a
                                    Subsidiary Guarantor) where the aggregate of
                                    such investments, loans, credit,

                                       52

<PAGE>

                                    disposals,   and  guarantees   made  in  the
                                    relevant  Fiscal  Year,   together  (without
                                    double  counting) with the Pooling  Borrowed
                                    Money (as  defined  below)  at any  relevant
                                    time  during such  Fiscal  Year,  at no time
                                    exceeds:

                                    (a)   (pound)20,000,000  (or its equivalent)
                                          during the Fiscal Year ending December
                                          31, 2002; or

                                    (b)   (pound)15,000,000  (or its equivalent)
                                          during each subsequent Fiscal Year.

                                    provided  that,  for  the  purposes  of this
                                    definition:

                                    (i)   "Pooling Borrowed Money" means, at any
                                          relevant  time,  the  aggregate of the
                                          Borrowed  Money of any  members of the
                                          Group   which   are   not   Subsidiary
                                          Guarantors  under any cash  management
                                          arrangements  in  respect of which any
                                          Subsidiary    Guarantor   grants   any
                                          guarantee,  rights of  set-off  or any
                                          other   Encumbrance   or   grants   an
                                          intra-Group loan;

                                    (ii)  the value  attributable  to a disposal
                                          of an asset shall be the market  value
                                          of the disposed asset; and

                                    (iii) the    relevant     aggregate    limit
                                          applicable  during  a  financial  year
                                          shall be  increased  by the  amount of
                                          (A)   any   repayment,    release   or
                                          cancellation  (whether  in whole or in
                                          part) of loans, credits and guarantees
                                          previously  taken into account for the
                                          purpose of determining compliance with
                                          "Permitted  Investments"  during  such
                                          financial  year and (B) cash  proceeds
                                          (to the extent not already  taken into
                                          account  pursuant  to  sub-clause  (A)
                                          above),  (net  of  related  costs  and
                                          Taxes)  received by a Guarantor from a
                                          member  of the  Group  which  is not a
                                          Guarantor in such financial year under
                                          a  series  of   related   transactions
                                          involving   an   investment   in  such
                                          non-Guarantor  made by such  Guarantor
                                          within 13 months of such  receipt  and
                                          previously  taken into account for the
                                          purpose of determining compliance with
                                          "Permitted Investments" (to the extent
                                          that  such  net cash  proceeds  do not
                                          exceed the  amount of such  investment
                                          so taken into account).

                                    "Permitted Loans" means loans or credit to a
                                    Subsidiary Guarantor or loans or credit from
                                    one

                                       53

                                    member   of  the   Group   which  is  not  a
                                    Subsidiary  Guarantor  to another  member of
                                    the   Group   which  is  not  a   Subsidiary
                                    Guarantor  and loans or credit  constituting
                                    Permitted Investments.

                                    "Property   Payments"  means  the  aggregate
                                    amount  of  (i)  the  payments  made  by any
                                    member  of the Group  pursuant  to leases of
                                    unoccupied  land or  buildings of which such
                                    member of the Group is a lessor and (ii) the
                                    amount  by which  payments  under a lease of
                                    land or  buildings  of which a member of the
                                    Group  is a lessee  exceeds  the  amount  of
                                    rental  received by such member of the Group
                                    in  respect of such land or  buildings  from
                                    any other person.

                                    "Syndicated  Loan Agreement"  means the Loan
                                    Agreement  dated 4 July 2000 (as amended and
                                    restated on the Effective Date in accordance
                                    with the term  sheet set out in  Schedule  2
                                    hereto and as further  amended and in effect
                                    from  time to  time)  and made  between  the
                                    Company,  certain of Company's Subsidiaries,
                                    The Bank of New York  and  HS]3C  Investment
                                    Bank  plc  as   Arrangers,   the  banks  and
                                    financial  institutions  party  thereto from
                                    time to time,  HSBC  Investment  Bank plc as
                                    Agent and Security Trustee,  The Bank of New
                                    York as Swingline Bank and HS]3C Bank plc as
                                    Overdraft Bank.

                                    "Tax" and collectively  "Taxes" includes all
                                    present and future taxes,  levies,  imposts,
                                    duties,  fees or charges of whatever  nature
                                    together with interest thereon and penalties
                                    in respect thereof.

                                       54

<PAGE>

                                                                      Schedule 1

                                Security Package

PART 1

1.   The Communications Group Pty Limited
2.   Atlas Advertising Limited
3.   Bates Europe Limited
4.   Bates UK Limited
5.   ICM International Limited
6.   The Decision Shop Limited
7.   Bates Deutschland Holding GmbH
8.   Bates Advertising USA, Inc.
9.   Bates Churchill Advertising, Inc.
10.  Bates Churchill Public Relations, Inc.
11.  Bates Healthworld, Inc.
12.  Bates Travel and Tourism, Inc.
13.  Bates Worldwide (Delaware), Inc.
14.  CCG.XM, Inc.
15.  Cordiant US Holdings, Inc.
16.  Falk Healthworld Inc.
17.  Fitch, Inc.
18.  GHBM Inc.
19.  Healthworld Corporation
20.  Lighthouse Global Network Inc.
21.  Morgen-Walke Associates, Inc.

PART 2

Companies  incorporated  in England  and Wales to provide  guarantees  and first
ranking fixed and floating charges over all of their assets and undertaking. The
issued  share   capital  of  each  of  these   companies   (excluding   Cordiant
Communications  Group plc.) is to be the  subject of a pledge / charge  given by
its shareholders,  which in the case of shareholders incorporated in England and
Wales will be contained in the relevant  shareholder's  first  ranking fixed and
floating charges.

1.   Cordiant Communications Group plc;

2.   Cordiant Group Limited;

3.   Bates Overseas Holdings Limited;

4.   Bates Europe Limited;

5.   Cordiant (US) Holdings Limited;

6.   Garrott Dorland Crawford Holdings Limited;

7.   Atlas Advertising Limited;

8.   Bates UK Limited;

9.   Swotplus Limited;

10.  Deckchair Studio Limited;

11.  Ted Bates Holdings Limited;

12.  The Decision Shop Limited;

                                  Schedule 1-1

<PAGE>

13.  Healthworld UK Holdings Limited;
14.  Bates Healthworld Limited;
15.  PSD Associates Limited
16.  Bamber Forsyth Limited;
17.  Fitch Limited;
18.  Fitch International Limited;
19.  Fitch Worldwide Limited;
20.  Business Communications International Group Limited;
21.  C&FD (Holdings) Limited;
22.  Corporate & Financial Design Limited;
23.  Financial Dynamics Holdings Limited;
24.  Financial Dynamics Limited;
25.  Bulletin Tnt. Limited;
26.  Bulletin mt. (UK) Limited;
27.  1CM International Limited;
28.  PCI Livedesign Limited;
29.  Cordiant Overseas Holdings Limited;
30.  Cordiant Property Holdings Limited;
31.  Healthworld Holdings Limited[1];
32.  Milton Marketing Group Limited[1];
33.  Headcount WW Field Marketing Limited[1];
34.  Lighthouse Holdings (UK) Limited[1];
35.  Clarion Communications PR Limited[1];
36.  CCG.XM Holdings Limited[1];
37.  CCG.XM1;
38.  XMSS Limited;
39.  Colwood Healthworld Limited;
40.  Fitch Design Consultants Limited;
41.  Milton Marketing Limited[1];
42.  Connect Five Limited[1];
43.  Connect Six Limited[1];
44.  Propose Two Limited[1];
45.  Secure Two Limited[1];
46.  Connect One Limited[1];
47.  N.A.S.A. 2.0 London Limited;
48.  Scholz & Friends London Limited[6]
49.  Sonic Sun Limited[2].

PART 3

Companies or other  entities  incorporated  in (or formed under the laws of) the
US, Germany,  the Netherlands and Australia to provide  guarantees and the share
capital (or equivalent) of which shall be the subject of pledges I charges.

US companies

1.   Cordiant US Holdings, Inc.;
2.   Healthworld Corporation Inc.;
3.   Bates Healthworld Inc.;
4.   Healthworld International Holdings Inc.;
5.   Bates Worldwide (Delaware) Inc.;

                                  Schedule 1-2

<PAGE>

6.   Bates Advertising USA Inc.;
7.   Bates Churchill Public Relations Inc.;
8.   Bates Churchill Advertising Inc.;
9.   Interactive Edge Inc.;
10.  Lighthouse Global Network Inc.;
11.  Fitch Inc.;
12.  The Leonhardt Group Inc.;
13.  Morgen Walke Associates Inc.;
14.  Primo Angeli Inc.;
15.  CCG.XM Holdings Inc.;
16.  CCG.XM Inc.;
17.  Microarts Corporation US;
18.  Falk Healthworld Inc.;
19.  The Decision Shop Inc.;
20.  S&S MCC AND MCC Inc.;
21.  Channelex Inc.;
22.  DWP Bates Technology Inc.;
23.  Cordiant Finance Inc.;
24.  Peclers Pavis North America, Inc.; and
25.  Drummer Associates Inc.

German companies

1.   Cordiant Holdings GmbH;
2.   Bates Deutschland Holding GmbH;
3.   Bates Germany Werbeagentur GmbH;
4.   XCEED! Agentur Fur Medienberatung Und Innovative Kommunikation GmbH;
5.   EMC Starke & Gerlach GmbH; and
6.   N.A.S.A. 2.0 GmbH.

Dutch companies

1.   Chafma BY;
2.   Bates Nederland Holding BY3; and
3.   Cordiant Finance B.V4.

Australian companies

1.   Cordiant Communications (Australia) Pty Limited; and
2.   Cordiant Communications Group Australia Pty Limited[5]

Notes to Schedule 1:

1.   The  share  pledges  over the  shares of  non-US  Subsidiaries  owned by US
     companies and the guarantees and security given by non-US  Subsidiaries  of
     US companies will be limited to the extent required to avoid adverse US tax
     implications.  Notwithstanding the foregoing,  to the extent that any share
     pledges,  guarantees  and/or security is given for the benefit of the Banks
     or  to  otherwise  secure  obligations  incurred  in  connection  with  the
     Syndicated  Loan Agreement and are not given for the benefit of the holders
     of the Notes or to otherwise secure obligations incurred in connection with
     the Notes  and the  Amended  and  Restated  Note  Purchase  Agreement,  any
     recoveries  under such share  pledges,  guarantees  and/or  security  shall
     shared by the Banks and the holders of the Notes pursuant to the

                                  Schedule 1-3

<PAGE>

     terms of the Intercreditor Agreement.

2.   The JVA Subsidiary will be subject to the guarantee and security package as
     in this term  sheet  (though  any charge  over the shares  owned by the JVA
     Subsidiary in Zenith shall be, as stated in this term sheet, subject to the
     obtaining of the consent of the other party(s) to the JVA). In addition,  a
     charge  shall  be  taken  over  the  JVA  Subsidiary's  rights  (and of the
     Company's  rights  remaining after the transfer of shares described in this
     term sheet),  under or in  connection  with the JVA,  including the put and
     call options, and the proceeds resulting from completion of the exercise of
     any of these options as stated in this term sheet.

3.   No  charge  will be  taken  over  the 35%  minority  shareholding  in Bates
     Nederland  Holding B.V. The shares owned by Chafma B.V. in Bates  Nederland
     Holding  B.V.  will be the  subject  of a Dutch  law  share  pledge.  Bates
     Nederland Holding B.V. will not be required to give a guarantee.

4.   Cordiant  Finance  B.V. is the company to which the Euro cash pool is swept
     under the Euro cash pooling arrangements.  Accordingly it is required to be
     subject to the guarantee and security package arrangements outlined in this
     term  sheet.  In  addition it will be required to provide a charge over its
     bank accounts.

5.   No  charge   will  be  taken  over  the   41.59%  of  shares  in   Cordiant
     Communications Group Australia Pty Limited owned by Cordiant Communications
     (Australia)  Pty  Limited.  The shares  owned by Chafma  B.V.  in  Cordiant
     Communications  Group  Australia Pty Limited will be the subject of a share
     charge.

6.   No charge  will be  provided  over the  shares  in Scholz & Friends  London
     Limited ("SFLL") so long as it is a direct or indirect Subsidiary of Scholz
     & Friends AG. The Company will use  reasonable  endeavours  to procure that
     SFLL enters into a guarantee in accordance with the provisions of this term
     sheet.  To the extent that SFLL does not enter into such a guarantee,  SFLL
     shall be excluded from the UK cash management pool.

                                  Schedule 1-4

<PAGE>

                                                                      Schedule 2

                               [Bank term sheet]

                                  Schedule 2-1

<PAGE>

                                                                      Schedule 3

                           [Intercreditor term sheet]

                                  Schedule 3-1

<PAGE>

                                   EXHIBIT C

                            Intercreditor Term Sheet

<PAGE>

                       CORDIANT COMMUNICATIONS GROUP PLC

                            US$400M CREDIT AGREEMENT

                                      AND

                        US$175M GUARANTEED SENIOR NOTES

                            Intercreditor Term Sheet

              Key Intercreditor Restructuring Terms and Conditions

This term sheet contains the key terms of the intercreditor  arrangements agreed
between the Arrangers of the US$400m Loan Agreement dated 4 July 2000 as amended
(the "Original  Credit  Agreement")  and the holders of Cordiant  Finance Inc.'s
7.61%  Guaranteed  Notes due 2011  (the  "Notes")  issued  under  separate  Note
Purchase Agreements dated as of 5 April 2001  (collectively,  the "Original Note
Agreement") in connection with the restructuring  (the  "Restructuring")  of the
facilities made available thereunder.

In this term sheet:

"Agreement in Principle"  means the agreement made between the Finance  Parties,
the holders of Notes, the Company,  Cordiant Finance,  Inc. and others and dated
27 March 2002 to which this term sheet is scheduled as Exhibit C;

"Bank  Term  Sheet"  means the bank term  sheet  scheduled  as  Exhibit A to the
Agreement in Principle; "Company" means Cordiant Communications Group plc;

"Credit  Agreement"  means the Original Credit Agreement as amended and restated
in accordance with the terms and conditions set out in the Bank Term Sheet;

"Creditors"  means the  holders of the Notes and the Finance  Parties  under the
Original Credit Agreement;

"Enforcement  Date" means the date on which the Common Security  Trustee demands
payment or  discharge  of all or any part of the secured  obligations  under the
Credit  Agreement or the Note Agreement,  or takes any action to enforce the New
Security it holds on behalf of the Creditors or, if earlier, the date on which a
petition  for an  administration  order,  or any other  petition is presented or
similar  action taken under any  insolvency or bankruptcy law in relation to any
Obligor

"Note  Agreement"  means the Original Note  Agreement as amended and restated in
accordance  with the terms and conditions set out in the Noteholder  Term Sheet;
and

"Noteholder  Term Sheet" means the noteholder  term sheet scheduled as Exhibit B
to the Agreement in Principle.

Capitalised  terms  used in this term  sheet  have the  meanings  defined in the
Original Credit  Agreement,  unless  indicated  otherwise and "Term Sheet" means
this term sheet.

To the extent that either the Bank Term Sheet or the  Noteholder  Term Sheet (as
the case may be) is inconsistent  with this Term Sheet, the terms and conditions
of this Term Sheet shall prevail.

1    Basic security structure

1.1  The new  guarantees  and  security set out in the Bank Term Sheet (the "New
     Security") will be held by a common security  trustee (the "Common Security
     Trustee") for the benefit of all Creditors.

1.2  The existing  guarantees of the Original Credit  Agreement will continue to
     be held by the security  trustee under the Original Credit  Agreement.  The
     existing guarantees of the Notes will continue

                                        1

<PAGE>

     to be held by the existing  holders of the Notes (the "Existing  Holders").
     Each Existing  Noteholder  undertakes that if all or any of their Notes are
     transferred  to any other person  (other than an affiliate of such Existing
     Holder)  they  will  procure  that  the  transferee   will  accede  to  the
     lntercreditor  Agreement  and be bound by its  terms.  In this term  sheet,
     "Existing  Guarantees" means the existing  guarantees of the Notes together
     with the existing guarantees of the Original Credit Agreement.

2    New Money Priority

2.1  The New Security will secure the New Money and the Old Money from the Banks
     and the Notes.

2.2  The New Money from the Banks will rank in  priority  over the Notes and the
     Old Money.

2.3  Until the New Money has been repaid or cash collateralised in full, the New
     Money  Commitments have been cancelled in full and the New Money commitment
     commission paid in full, no principal,  Make-Whole  Amounts,  break funding
     costs  or  other  amounts  may be  paid  (by  way of  payment,  set  off or
     otherwise)  in  respect  of the Old  Money or the Notes as the case may be,
     except for interest in accordance with the terms of the Credit Agreement or
     the Note  Agreement.  Nothing in this  paragraph will affect the continuing
     operation of the Revolving Credit Facility in relation to the Old Money.

2.4  "Old Money" is, at any relevant  time, the first  (pound)111,163,898.43  of
     principal  outstanding  under  the  various  facilities  under  the  Credit
     Agreement  at  that  time  (such  amount  being  the  sum of  the  sterling
     equivalent  of the  US$236,833.24  of principal  drawn under the  swingline
     facility  under the  Original  Credit  Agreement  on 1 January  2002 at the
     exchange rate then  prevailing and the  (pound)111,000,000.00  of principal
     drawn  under  the  revolving  credit  facility  under the  Original  Credit
     Agreement on such date). To the extent that the sterling  equivalent of the
     principal  outstanding  under  the  various  facilities  under  the  Credit
     Agreement  at any  relevant  time is less than  (pound)111,163,898.43,  Old
     Money will  include  undrawn  commitments  for the  purposes of sharing any
     pre-enforcement  payments  in  respect  of the Old  Money  (subject  to the
     loss-sharing and equalisation provisions in paragraph 7).

2.5  "New Money" is, at any relevant  time,  all principal  amounts from time to
     time outstanding under the various facilities under the Credit Agreement at
     that time in excess of the Old Money.  The maximum  amount of the New Money
     will be the  difference  between the  (pound)111,163,893.43  of outstanding
     principal referred to above and the sterling equivalent of $225M which will
     be  calculated  at the spot rate of exchange  used under the  Restructuring
     Deed on the date of the Restructuring.

2.6  "New Money  Commitments" are all commitments  under the various  facilities
     under   the   Credit   Agreement   from   time  to  time   in   excess   of
     (pound)111,163,898.43  in  aggregate,  subject  to the  limit  provided  in
     paragraph 2.5.

2.7  The New Money will include all related  interest  thereon and other amounts
     in respect thereof payable under the Credit Agreement.

2.8  Neither  the New Money nor the Old Money  amounts  will be  affected by the
     rolling and reborrowing of the facilities under the Credit Agreement.

2.9  Prior to the enforcement of the New Security:

     (a)  accrued interest will be paid when due;

     (b)  any Make-Whole  Amount (as defined in the Note Agreement) and interest
          thereon  will be deferred and will be payable in  accordance  with the
          terms set out in the Noteholder Term Sheet.

     (c)  All P1K Management  Fees (as defined in the Noteholder  Term Sheet and
          the Bank Term Sheet) and interest thereon will be deferred and will be
          payable in accordance

                                        2

<PAGE>
          with the terms set out in the Noteholder  Term Sheet and the Bank Term
          Sheet respectively.

3    Priority between the Notes and the Old Money

3.1  The Notes and the Old Money will rank pan passu  after the New Money on the
     terms set out in this paragraph.

3.2  Subject to paragraph  5.2 and paragraph 7, the Notes and the Old Money will
     share mandatory and voluntary  prepayments made prior to the enforcement of
     the New  Security  pro rata to the sum of the drawn  principal  amounts and
     undrawn commitments at the relevant time.

3.3  The amounts to be applied in mandatory and voluntary prepayments of the Old
     Money and the  Notes in  accordance  with  paragraph  3.2 shall be  applied
     against   principal  (and  in  cancellation  of  an  equivalent  amount  of
     commitments).  In addition, the Company will, subject to paragraph 2.9, pay
     from other  sources  interest,  break costs and any other  amounts  payable
     under the terms of the Credit Agreement and the Note Agreement.

3.4  Repayments  and  recoveries in respect of the Notes and the Old Money after
     the Enforcement Date shall be applied (subject to paragraphs 3.5 and 6):

     (a)  first, against principal pro rata;

     (b)  second, against all interest, commitment commission, the Deferred Fee,
          Make-Whole  Amounts and all other amounts  (other than P1K  Management
          Fees and accrued interest thereon) payable under or in connection with
          the Credit Agreement and the Notes pro rata; and

     (c)  third,  against the P1K Management Fees and accrued  interest  thereon
          pro rata.

3.5  If, prior to  enforcement  of the New  Security,  amounts are credited to a
     cash collateral  account with the Common Security Trustee (if, for example,
     a Bank sets cash aside  pending the  termination  of an Interest  Period to
     avoid broken funding costs) pending their  application in prepayment of the
     New Money,  the Old Money or, as the case may be,  the Notes in  accordance
     with  paragraph  3.3,  and the  New  Security  is  enforced  prior  to such
     application,  then such  amounts  will  still be  applied in respect of the
     prepayments  for which they were deposited in accordance with paragraph 3.3
     notwithstanding such enforcement.

3.6  For the  purposes of sharing  under  paragraph  3, the amount of any claims
     denominated  in a currency  other than  Sterling  shall be  converted  into
     Sterling  by  applying  the spot rate of  exchange  of the Common  Security
     Trustee as at the date of distribution.

4    Application of mandatory prepayments

4.1  Subject to paragraph 5.1 and paragraph 7, prior to the  enforcement  of the
     New Security, mandatory prepayments will be applied:

     (a)  first,  against the New Money drawn at such time (and in  cancellation
          of an equivalent amount of New Money Commitments);

     (b)  second,  (once no New  Money is  outstanding),  to pay all  commitment
          commission  in respect of the New Money and the New Money  Commitments
          shall be cancelled in like amount;

     (c)  third,  after  payment  in  full  of  New  Money  and  all  commitment
          commission in respect of the New Money,  to pay Old Money drawings and
          New  Money  commitments  (to  the  extent  then  remaining)  shall  be
          cancelled in like amount; and

                                        3

<PAGE>

     (d)  fourth,  (once all the New Money  has been  prepaid  and the New Money
          Commitments  cancelled in full and all New Money commitment commission
          paid in full) against the Old Money and the Notes on the basis set out
          in paragraph 3.

5    Application of voluntary prepayments

5.1  Subject to paragraph 5.2 and paragraph 7, voluntary partial prepayments and
     cancellations of the principal  outstanding in respect of the Old Money and
     the Notes may only be made (a) once the New Money has been  prepaid or cash
     collateralised  in full, the New Money  Commitments  have been cancelled in
     full and the New Money commitment  commission repaid in full and (b) on the
     basis set out in paragraph 3.

5.2  The Company will be permitted to refinance the Facilities  under the Credit
     Agreement in full (but not in part only),  without  prepaying  the Notes on
     the  terms set out in the  Noteholder  Term  Sheet if the "Put  Elimination
     Conditions"  (as defined in the Noteholder Term Sheet) have been satisfied.
     The Company and the  Creditors  agree that in all other  circumstances  any
     proceeds  of any  refinancing  shall be shared on the basis set out in this
     Term Sheet.

6    Application of recoveries of enforcement

6.1  All proceeds of enforcement of the New Security and the Existing Guarantees
     (and other  recoveries  after the  enforcement of the New Security) will be
     applied:

     (a)  first, against the Common Security Trustee's costs and expenses;

     (b)  second, against the New Money and New Money commitment commission;

     (c)  third, (subject to paragraph 7) once all the New Money has been repaid
          and all New Money commitment  commission paid in full) against the Old
          Money and the Notes on the basis set out in paragraph 3.4.

6.2  Upon such  enforcement,  all the  Funders'  commitments  under  the  Credit
     Agreement shall be cancelled (to the extent not previously cancelled).

6.3  On or after the Enforcement Date, any distributions or recoveries  received
     by the  Creditors  from  whatever  source will be turned over to the Common
     Security Trustee for application in accordance with this paragraph.

7    Loss sharing and equalisation

7.1  Promptly  after the  Enforcement  Date,  each Creditor  shall  exercise any
     available  rights of set-off,  consolidation  or combination of accounts in
     accordance with paragraph 10.2.

7.2  Promptly  thereafter,  and following the repayment in full of the New Money
     and the payment in full of the New Money commitment  commission (but in any
     event no later than three months after the  Enforcement  Date or, if later,
     the date on which the New Money is repaid in full), the Creditors will make
     such  equalisation  payments to each other as are necessary to ensure that,
     after such payments have been made, the ratio of each  Creditor's  Exposure
     (as defined below) to the aggregate  Exposure of all the Creditors is equal
     to the ratio that its  Initial  Exposure  (as  defined  below)  bore to the
     aggregate  Initial  Exposure of all the  Creditors  (with all amounts being
     converted  into a common  currency for the purpose of such  calculation  in
     accordance  with  paragraph  7.8).  The  liability of each Creditor will be
     several.  Such  payments will not be required if, before they are due to be
     made, the Common Security  Trustee makes payments under paragraph 7.6 which
     have the same effect.

7.3  For the purpose of this paragraph,  "Exposure"  means the principal  amount
     owing to each  Creditor  (whether  actually or  contingently)  and "Initial
     Exposure"  means the Exposure of each  Creditor  under the Notes or the Old
     Money portion of outstandings  under the Credit Agreement as of the date of
     the  Agreement  in  Principle.   The  aggregate  Initial  Exposure  of  the
     Noteholders is $175,000,000 and the aggregate Initial Exposure of the Banks
     is (pound)111,163,898.43.

                                        4
<PAGE>

7.4  Further equalisation payments may be necessary to account for the expiry of
     ancillary  facilities  (such as  letters  of  credit) in a manner to be set
     forth in the lntercreditor  Agreement.  No other equalisation payments will
     be made.

7.5  No  equalisation  will be required by the Overdraft Bank to the extent that
     it exercises its right of set-off as permitted by clause 10.1.

7.6  Any payments or distributions to the Creditors after equalisation has taken
     place will be made by the Security  Trustee  pursuant to paragraphs 3.4 and
     3.6 but will be adjusted to ensure  that  immediately  after they have been
     made the ratio of each Creditor's Exposure to the aggregate Exposure of all
     the  Creditors is equal to the ratio that its Initial  Exposure (as defined
     below) bore to the aggregate  Initial  Exposure of all the Creditors  (with
     all amounts being  converted into a common currency for the purpose of such
     calculation in accordance with paragraph 7.8).

7.7  If,  following the Enforcement  Date, any Creditor  receives any payment in
     discharge of the principal  amount of any Old Money or Notes otherwise than
     from the Common  Security  Trustee,  it will pay the amount received to the
     Common Security Trustee, for distribution pursuant to paragraph 7.6.

7.8  Any  currency  conversions  required  for the purpose of a  calculation  or
     payment  to be made  under  this  paragraph  7 shall be made by the  Common
     Security Trustee at its spot rate of exchange for the currencies  concerned
     2 days before the calculation or payment concerned is due to be made.

8    Application  of  voluntary  and  mandatory  prepayments  under  the  Credit
     Agreement

8.1  In order to maximise the value of the English law floating  charge security
     for the benefit of all the Creditors,  as between the parties to the Credit
     Agreement,  all  voluntary  and  mandatory  prepayments  under  the  Credit
     Agreement will be applied first in prepayment of Revolving  Credit Advances
     outstanding under the Credit Agreement prior to the Restructuring  Date (or
     any  rollover  of such  Advances),  secondly  in  prepayment  of all  other
     outstanding  Revolving Credit Advances,  and thirdly in pro rata prepayment
     of  outstanding  Swingline  Advances  and  Utilisations  of  the  Overdraft
     Facility.  It is understood that this arrangement shall in no way affect or
     impair the priority  arrangements  among the Creditors set out in this Term
     Sheet.

9    Additional guarantees and security

9.1  All additional guarantees (the "Additional Guarantees"), security and other
     financial  support in respect  of the New Money,  the Old Money  and/or the
     Notes must be granted to the Common Security Trustee for the benefit of the
     Creditors.

10   Operation of the facilities under the Credit Agreement

10.1 Pending  enforcement  of the New  Security  (but  without  prejudice to the
     Banks' rights under the Credit Agreement to prevent drawings and cancel the
     facilities),  the overdraft  facility under the Credit Agreement  (having a
     net limit of  (pound)6,000,000)  will  continue to operate on a rolling net
     basis. Prior to and on enforcement of the New Security,  the Overdraft Bank
     will be free to set off (and retain without the arrangements in paragraph 3
     applying) cash against their gross exposure in order to determine their net
     exposure (it being  understood  that such  set-off  shall be limited to the
     minimum amount required to reduce such gross exposure to such net limit and
     such set-off right shall be limited to such overdraft facility).

10.2 Subject to clause 10.1, on the  enforcement of the New Security or upon any
     other set-off or exercise of rights of  consolidation  and  combination  of
     accounts, the Banks will pay all amounts otherwise available for set-off to
     the Common Security  Trustee for  distribution in accordance with paragraph
     6.

                                       5

<PAGE>

11   Common Security Trustee/Relevant Majority Creditors

11.1 The Common  Security  Trustee  will hold the New Security  and,  subject to
     paragraph  11.3,  will  act in  accordance  with  the  instructions  of the
     Relevant Majority Creditors.

11.2 The Common  Security  Trustee  will  refrain  from  enforcing  the security
     conferred by the New Security and the Security  Trustee and the Noteholders
     will  refrain  from  enforcing  the  Existing  Guarantees  unless and until
     instructed by the Relevant  Majority  Creditors save that if a petition for
     an  administration  order has been presented in respect of any Obligor (and
     not  struck  out)  then  (unless  the  Relevant  Majority   Creditors  have
     instructed the Common  Security  Trustee not to enforce the New Security or
     any  Creditor  has not taken any action  required  by the  Common  Security
     Trustee so that it may so act) the Common Security Trustee will enforce the
     New  Security by  appointing  an  administrative  receiver to the  relevant
     Obligor.

11.3 Where an asset is subject to a charge or pledge created by the New Security
     and such asset is the subject of a disposal  which is (to the  satisfaction
     of the  Common  Security  Trustee)  expressly  permitted  under the  Credit
     Agreement and the Note Agreement,  then, if (a) the Common Security Trustee
     has not  received  notice of any  Default  or Event of  Default  (howsoever
     described)  under  the  Credit  Agreement  or the Note  Agreement  which is
     continuing  unremedied and unwaived and (b) the Common Security  Trustee is
     satisfied  that the proceeds of that disposal will be applied in accordance
     with the Credit  Agreement,  the Note  Agreement  and this term sheet,  the
     Common  Security  Trustee shall grant a release of the relevant  asset from
     the charge or pledge concerned.

11.4 Relevant  Majority  Creditors will be defined as meaning the Majority Banks
     under  the  Credit  Agreement  and the  holders  of a  majority  in  unpaid
     principal amount of the Notes at the time outstanding (excluding Notes then
     owned by the Issuer or any of its Affiliates).

11.5 The Common Security Trustee will initially be HSBC Investment Bank plc.

11.6 The Relevant  Majority  Creditors will have the right to replace the Common
     Security  Trustee with another  reputable and experienced  bank,  financial
     institution or trustee.  HSBC Investment Bank plc will automatically resign
     as Common  Security  Trustee at the same time as the  Facilities are repaid
     and the  commitments  cancelled in full, and (subject to paragraph  14.7) a
     new Common Security Trustee will be appointed.

11.7 The  Creditors  will give a mutual  obligation  to  consult  each other and
     provide information to the Common Security Trustee.

11.8 There will not be any override, so a waiver of a breach of the terms of the
     Notes will not constitute a waiver of the Credit  Agreement and a waiver of
     a breach of the terms of the Credit  Agreement will not constitute a waiver
     of any term of the Notes or the Note Agreements.

11.9 All the Creditors will give  indemnities to the Common Security Trustee and
     underwrite the payment of the Common Security Trustee's costs, in each case
     to the extent (and only to the extent) that the proceeds of any enforcement
     or the New  Security  are  insufficient  to cover such costs in full,  such
     indemnities  to operate pro rata to the sum of the relevant  drawn  amounts
     and undrawn commitments at the time concerned.

12   Enforcement action

12.1 All enforcement  action will be taken through the Common Security  Trustee,
     so that the  Creditors  will give each other (but not the Company or any of
     its Subsidiaries)  mutual  undertakings  that, unless the Relevant Majority
     Creditors have previously consented in writing, none of the Creditors will:

     (a)  enforce  any  of the  New  Money,  the  Old  Money  or  the  Notes  by
          attachment, execution or otherwise; or

                                       6

<PAGE>

     (b)  have any right to crystallise,  or require the Common Security Trustee
          to crystallise, any floating charge in the New Security; or

     (c)  have any right to enforce,  or require the Common Security  Trustee to
          enforce,   any  security  conferred  by  the  New  Security  by  sale,
          possession, appointment of a receiver or otherwise; or

     (d)  have any right to  enforce,  or require  the  Security  Trustee or the
          Common  Security  Trustee to enforce,  any of the Existing  Guarantees
          other than the enforcement of the Existing Guarantee of the Company by
          a holder of Notes; or

     (e)  petition for (or vote in favour of any resolution  for) or initiate or
          support or take any steps with a view to any winding  up.  bankruptcy,
          insolvency, liquidation,  reorganisation,  moratorium, administration,
          dissolution or any analogous  proceedings or any voluntary arrangement
          or assignment for the benefit of creditors or any similar  proceedings
          involving  an  Obligor  (or  any  of  its  Subsidiaries),  whether  by
          petition,  convening a meeting,  voting for a resolution or otherwise;
          or

     (f)  bring or support any other legal  proceedings  against any Obligor (or
          any of its Subsidiaries) except that nothing in this paragraph 12 will
          restrict  the  bringing  of  proceedings  by any  Creditor  solely for
          injunctive relief (or analogous  proceedings in jurisdictions  outside
          England  and  Wales) to  restrain  any  actual  breach  of the  Credit
          Agreement  or the  Note  Agreement  or for  specific  performance  not
          claiming  damages,  in either case where  doing so would not  conflict
          with any other provision of this term sheet.

12.2 For the avoidance of doubt  nothing in this  paragraph 12 will restrict the
     relevant Creditors from:

     (a)  exercising  their  respective   rights  to  refuse  to  make  drawings
          available or cancel undrawn commitments; or

     (b)  accelerating  any of the New Money or the Old Money  under the  Credit
          Agreement or the Notes or otherwise  declaring any of them prematurely
          due or payable; or

     (c)  enforcing the guarantee of the Company; or

     (d)  taking action to the extent required by the Common Security Trustee in
          order that it may  appoint a receiver  in  accordance  with  paragraph
          11.2; or

     (e)  setting-off  in  accordance  with  paragraph  10.1 to ensure  that the
          exposure of the Overdraft Bank is reduced to the net amount; or

     (f)  proving in the insolvency of an Obligor.

12.3 The  Creditors  will give each  other  (but not the  Company  or any of its
     Subsidiaries)   a  mutual   prohibition   on  taking  action  to  frustrate
     enforcement by the Common Security Trustee.

12.4 The Creditors  will also give each other (but not the Company or any of its
     Subsidiaries)  a mutual  undertaking to enforce the Existing  Guarantees to
     the  extent  required  by  the  Common  Security  Trustee  (acting  on  the
     instructions of the Relevant Majority Creditors).

12.5 The Creditors will acknowledge  that pursuant to any enforcement  action by
     the Common Security Trustee carried out on the instructions of the Relevant
     Majority  Creditors it may be desirable for the purpose of such enforcement
     and/or  maximising the  realisation of the security being enforced that any
     rights or claims of or by the Common  Security  Trustee against any Obligor
     and/or  any  security  over any  assets of any  Obligor  (in each  case) as
     contained  in or created  by any New  Security,  other than such  rights or
     claims or security  being  enforced,  and/or other claims by the  Creditors
     (including the Existing  Guarantees) be released and each Creditor will (a)
     to the  extent  required  by the  Common  Security  Trustee  (acting on the
     instructions  of the Relevant  Majority  Creditors)  grant such releases to
     fully effect such  enforcement  action and realisation  including,  without
     limitation, to the extent necessary for such purposes, to execute

                                       7

<PAGE>

     release documents and (b) irrevocably authorise the Common Security Trustee
     (acting on the  instructions of the Relevant  Majority  Creditors) to grant
     any such releases to the extent  necessary to fully effect such enforcement
     action  and  realisation  including,  without  limitation,  to  the  extent
     necessary for such purposes,  to execute  release  documents in the name of
     and on behalf of all the Creditors.

12.6 Recoveries under the Existing  Guarantees and, after the enforcement of the
     New Security,  other  recoveries  outside the New Security and the Existing
     Guarantees  will (to the  extent  necessary)  be turned  over to the Common
     Security  Trustee  and  shared as if they  were  recoveries  by the  Common
     Security Trustee under the New Security.

13   Limits on amending the Notes and the Credit Agreement

13.1 The Company and the  holders of the Notes will  undertake  to the Banks and
     the Banks and the  Company  will  undertake  to the  holders of Notes that,
     other  than as agreed by the Banks and the  holders of Notes as part of the
     Restructuring, they will prevent any:

     (a)  increase in the interest  payable on the Notes or the Facilities under
          the Credit Agreement (as the case may be), or

     (b)  change  in the  timing or the basis of  calculation  of such  interest
          payments; or

     (c)  reduction in the maturity of the Notes (other than,  for the avoidance
          of doubt, in connection with the exercise of the Refinancing Put or on
          the  occurrence  of a Prepayment  Event (as defined in the  Noteholder
          Term Sheet) or the Facilities  under the Credit Agreement or change in
          the timing and  amounts of the  scheduled  repayment  installments  or
          final  maturity  in respect of the Notes or the  Facilities  under the
          Credit Agreement (as the case may be); or

     (d)  amendment of the mandatory  prepayment  provisions of the Notes or the
          Facilities under the Credit Agreement (as the case may be); or

     (e)  change in the  definition  of  Make-Whole  Amount which would have the
          effect of increasing any  Make-Whole  Amount payable in respect of the
          Notes  or  extension  of  the  application  of the  Make-Whole  Amount
          mechanism; or

     (f)  amendment  of the  financial  covenants  set out in the  Notes  or the
          Credit Agreement (as the case may be);

     (g)  other change to the Notes or the Facilities under the Credit Agreement
          (as the case may be) which will increase any amount payable thereunder
          or which might adversely effect the ranking arrangements  contemplated
          by this term sheet; or

     (h)  increase or  decrease  the  commitments  of the Banks under the Credit
          Agreement otherwise than in accordance with this Term Sheet.

13.2 The Agent and the  holders of the Notes will each  undertake  to notify the
     other  party of any  amendments  made to the  terms and  conditions  of the
     Credit  Agreement and the Notes  respectively,  within a reasonable  period
     after such amendments have been made.

14   Miscellaneous provisions

14.1 Any amounts  received by any  Creditor  contrary to this term sheet will be
     turned over to the Common Security Trustee for redistribution in accordance
     with this term sheet.

14.2 No Creditor will  challenge the Existing  Guarantees or any other  security
     granted to any other Creditor.

14.3 The Creditors may not transfer their interest under the Notes or the Credit
     Agreement without the transferees  acceding to the intercreditor  agreement
     which implements this term sheet.

                                       8

<PAGE>

14.4 None of the Notes nor the commitments, outstanding amounts or contributions
     under the  Facilities  will be sold to the Company (or its  affiliates)  or
     anyone acting on their behalf.

14.5 No consent of the holders of the Notes will be required to the  utilisation
     of the facilities  under the Credit  Agreement in full or in part up to the
     limit of those facilities set out in clause 2.

14.6 Hedging liabilities will continue to be unsecured.

14.7 The  provisions  of  the  lntercreditor  Agreement  will  terminate  if the
     Facilities under the Credit  Agreement are refinanced in full.  Immediately
     prior  to  the  termination  of the  lntercreditor  Agreement,  the  Common
     Security Trustee will, at the expense of the Company,  transfer the benefit
     of the Additional Guarantees to the holders of the Notes at that time.

                                       9

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