Document:

Exhibit 10.11

                      EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made and entered into this 31st day of
March, 2000, to be effective as of the 2nd day of April, 2000, by
and between Roundy's, Inc., a Wisconsin  corporation (the
"Company") and Gary L. Fryda, an individual ("Employee").

                            RECITALS:

     WHEREAS, the Company is engaged in, among other things, the
business of owning and operating retail grocery stores (the
"Retail Business"); and

     WHEREAS, Employee has extensive experience and expertise in
the retail grocery business, including the management of a large
retail grocery store chain known as Mega Marts, Inc. ("Mega
Marts"); and

     WHEREAS, the Company desires to employ Employee and Employee
desires to be employed by the Company pursuant to the terms and
conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises set forth
above, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

     l.   Employment; Duties.  During the Employment Period (as
hereinafter defined):

          (a)  The Company will employ Employee and Employee will
perform services as the Company's Vice-President - Corporate
Retail.  Employee will have general responsibility for the
management, oversight and direction of the Retail Business of the
Company, under the direction, supervision and oversight of, and
reporting directly to, the President and Chief Executive Officer
of the Company.  In addition, Employee will have such other
duties and responsibilities as the Board of Directors or the
President of the Company reasonably assigns to Employee from time
to time, provided such other duties and responsibilities are
consistent with Employee's position as a senior member of the
Company's management.  In the performance of his duties hereunder
Employee will not be required to travel outside of the
metropolitan Milwaukee area (consisting of the Wisconsin counties
of Milwaukee, Ozaukee, Washington, Waukesha, Racine and Kenosha)
for a total of more than sixty days in any one-year period.

          (b)  Employee will perform his services hereunder
faithfully and to the best of his abilities, and will devote his
best efforts and all of his business time, attention and skill to
the business and affairs of the Company.  If Employee is elected
as an officer and/or director of the Company or any of its
subsidiaries or affiliates, or performs services for any
subsidiary or affiliate of the Company, during the term of this
Agreement, Employee will serve in such additional capacities and
perform such additional services without further compensation.

          (c)  Employee will not act in any manner, which,
directly or indirectly, could damage the Company's business or
adversely affect the good will, reputation or business
relationships of the Company with the public generally or with
any of its employees, customers, suppliers or other persons
having dealings with it.  Employee will conduct himself at all
times in accordance with the Company's code of business conduct
and ethics and all other policies in effect from time to time
governing the conduct of the Company's employees or officers.

          (d)  Nothing contained herein shall preclude Employee
from serving as a director or member of a committee of, or as a
consultant to, any business organization which does not conflict
with the Company or its business, and from engaging in charitable
and community activities, provided that such services and
activities do not materially interfere with the regular
performance of his duties and responsibilities under this
Agreement, and provided further that the Company is notified in
writing in advance of all such services and activities.

     2.   Compensation; Benefits.

          (a)  In consideration of the services to be performed
by Employee during the Employment Period pursuant to Section l
hereof and Employee's compliance with the other provisions of
this Agreement, the Company will pay Employee an annual salary in
the amount of $332,500.  Such salary will be payable in
accordance with the Company's normal payroll practices from time
to time in effect for its executive employees.

          (b)  Employee shall be entitled to participate in any
employee benefits and benefit programs which are made available
generally by the Company to its executives from time to time
during the Employment Period, including any life, health, dental,
accident, sickness and disability plans (whether or not insured),
and in any qualified pension or profit sharing plan, savings
plan, stock option plan, stock appreciation rights plan, deferred
compensation plan or any other fringe benefit plan or program
which the Company may from time to time make available to its
executives, in each case in accordance with and subject to the
terms of such plans as the same may be in effect from time to
time.  Employee will be entitled to vacations and perquisites in
accordance with the Company's policies as in effect from time to
time for its executives, including the use of a "Class A" vehicle
on the same terms as those on which such vehicles are made
available to other Company executives.

          (c)  The amounts payable to Employee pursuant to this
Section 2 are before any deductions therefrom for any taxes
required to be withheld by federal, state and local governments.

     3.   Term.

          (a)  The term of this Agreement pursuant to which
Employee will provide services to the Company hereunder and the
Company will employ Employee (the "Employment Period") will be
for a period of five (5) years commencing on the date hereof,
unless earlier terminated in any of the following ways:

               (i)  The Employment Period will terminate upon the
     written agreement of the parties;

               (ii) The Employment Period will terminate upon the
     death or permanent disability of Employee.  The term
     "permanent disability" of Employee means any mental or
     physical illness, disability or incapacity which renders
     Employee unable to perform his duties hereunder effectively
     for a continuous period of One Hundred Eighty (180) days, or
     Employee receiving or becoming entitled to receive permanent
     disability payments pursuant to the Company's group
     disability insurance policy covering Employee.  If there is
     any dispute as to whether Employee is permanently disabled
     within the meaning of this Section 3(a)(ii), such dispute
     shall be submitted to a licensed physician acceptable to the
     parties who shall conduct an examination of Employee for the
     purpose of resolving such dispute.  Employee shall submit to
     such examination and the determination of such physician as
     to whether Employee is permanently disabled within the
     meaning of this Section 3(a)(ii) will be binding and
     conclusive on the parties.

               (iii)     The Company may terminate the Employment
     Period at any time for "cause."  For purposes of this
     Agreement, the term "cause" means only (i) the wilful
     commission by Employee of a material act of dishonesty or
     moral turpitude involving the Company; (ii) Employee's
     commission of an act constituting a felony; (iii) Employee's
     gross negligence or gross incompetence in the performance of
     his duties and responsibilities hereunder or in any other
     capacity in which he may be serving the Company; (iv) the
     wilful failure of Employee to carry out his duties and
     responsibilities hereunder or to follow a specific and
     lawful directive of the Board of Directors or President of
     the Company (provided such directive is consistent with his
     position hereunder) but only if such failure continues for
     ten days after Employee has been provided with written
     notice of such failure (which notice includes a description
     of the nature of the failure); (v) Employee's wilful
     disclosure of material proprietary confidential information
     of the Company to or for the benefit of a competitor of the
     Company, to the extent such information was not available
     publicly; (vi) any intentional and material
     misrepresentation by Employee to the President, directors or
     shareholders of the Company; (vii) Employee's use of illegal
     drugs or chronic or habitual use abuse of alcohol; or (viii)
     any material breach of this Agreement by Employee, but only
     after Employee has been provided with written notice of such
     breach (which notice includes a description of the nature of
     the breach) and a period of five (5) days after such breach
     to cure the same.

          (b)  Upon termination of the Employment Period, the
Company will pay to Employee the full amount of any unpaid
compensation earned by Employee pursuant to Section 2 of this
Agreement through and including the termination date (and
prorated as appropriate), and the Company will not be obligated
to make any further payments to or for the benefit of Employee.

          (c)  Employee's obligations set forth in Sections 4
through 9 hereof shall survive the termination of the Employment
Period, regardless of the reason for such termination (including
termination other than as permitted under the preceding
subsection 3(a), whether or not either party is in breach of this
Agreement), except as provided in Sections 4(b) and 4(c) below.

     4.   Noncompetition.

          (a)  During the Employment Period and for two (2) years
(the "Restriction Period") after the Employee's employment
hereunder terminates (regardless of the reason for such
termination, except as provided in Sections 4(b) and 4(c) below)
Employee will not, directly or indirectly, as a principal, agent,
consultant, owner, employee, trustee, beneficiary, partner, co-
venturer, officer, director, stockholder (other than as a
stockholder of less than 5% of the stock of a publicly traded
corporation) or in any other capacity, engage in, have an
interest in, provide services or advice to, or become associated
with any entity, firm, business, activity or enterprise which is
engaged in the wholesale or retail distribution or sale of
groceries and which (either directly or through a subsidiary or
affiliate) has a grocery warehouse or distribution facility or a
retail grocery store in the "Proscribed Territory," as that term
is defined below.  The "Proscribed Territory" means (i) the area
consisting of the States of Wisconsin, Michigan, Illinois,
Indiana, and Ohio, plus (ii) to the extent not included within
(i), the area encompassed within a radius of four hundred (400)
miles of any warehouse or distribution facility operated by the
Company or any affiliate of the Company.

          (b)  Notwithstanding the preceding Section 4(a), if the
Employment Period is terminated by the Employer in breach of this
Agreement and without "cause" as provided in Subsection 3(a)(iii)
above, then the duration of the Restriction Period shall be one
(1) year and not two (2) years after the termination of the
Employment Period (but shall not in any event extend beyond the
date on which the five-year period specified in Section 3 above
would have expired).

          (c)  Notwithstanding the preceding Sections 4(a) and
4(b), Section 4(a) shall not apply after the termination of the
Employment Period in the event the Employment Period terminates
by expiration of the five-year term specified in Section 3(a)
above (and not pursuant to Subsections 3(a)(i) through 3(a)(iii)
nor by Employee's voluntary termination or resignation).

          (d)  Employee acknowledges and agrees that the
restrictions set forth in this Section 4 are founded on valuable
consideration and are reasonable in duration and geographic area
in view of the circumstances under which this Agreement is
entered into, and that such restrictions are necessary to protect
the legitimate interests of the Company, including, without
limitation, to secure to the Company the full value of its
investment in Mega Marts, Inc., Employee's former employer.  In
the event that any provision of this Section 4 is determined to
be invalid by any court of competent jurisdiction, the provisions
of this Section 4 shall be deemed to have been amended and the
parties will execute any documents and take whatever action is
necessary to evidence such amendment, so as to eliminate or
modify any such invalid provision and to carry out the intent of
this Section 4 so to render the terms of this Section 4
enforceable in all respects as so modified.

          (e)  Employee acknowledges and agrees that irreparable
injury will result to the Company in the event Employee breaches
any covenant or obligation of Employee contained in this Section
4, and that the remedy at law for such breach will be inadequate.
Therefore, if Employee engages or threatens to engage in any act
in violation of the provisions of this Section 4, the Company
shall be entitled, in addition to such other remedies and damages
as may be available to it by law or under this Agreement, to
injunctive or other equitable relief to enforce the provisions of
this Section 4.

     5.   Confidential Information.  As used herein, the term
"Confidential Information" refers to all information and
materials belonging to, used by or in the possession of the
Company  relating to its business strategies, products, pricing,
purchasing, vendor relationships, customers, technology,
programs, costs, employee compensation, marketing plans,
developmental plans, computer programs, computer systems,
inventions, developments, formulae, processes, designs, drawings
and trade secrets of every kind and character.  "Confidential
Information" also includes confidential information belonging to
other companies and disclosed to Employee by the Company.
"Confidential Information" does not, however, include (a)
information which Employee can demonstrate was in the public
domain or known generally to the industry at the time of its
disclosure to Employee, or (b) information which is disclosed to
Employee after the termination of the Employment Period, without
restriction, by a third party not directly or indirectly
obligated to the Company to maintain the confidentiality of such
information, or (c) information which enters the public domain or
becomes known generally to the industry through no act or failure
to act on the part of Employee.  For purposes of this Section 5
and the following Sections 6 through 10, the term "Company"
includes all past, present or future subsidiaries and affiliates
of Roundy's, Inc., including Mega Marts, and "Confidential
Information" includes confidential information of Mega Marts.

     6.   Ownership.  Employee acknowledges that all of the
Confidential Information is and shall continue to be the
exclusive proprietary property of the Company, whether or not
prepared in whole or in part by Employee and whether or not
disclosed to or entrusted to the custody of Employee.

     7.   Nondisclosure and Nonuse.  Employee will not, either
during the Employment Period or at any time thereafter
(regardless of the reason for the termination of the Employment
Period), disclose any Confidential Information, in whole or in
part, to any person or entity (other than to employees of the
Company to whom such disclosure is necessary for the performance
of Employee's duties hereunder), for any reason or purpose,
unless the Company gives its prior written consent to such
disclosure.  Employee also will not use any Confidential
Information in any manner for Employee's own purposes or for the
benefit of any person or entity other than the Company, whether
such use consists of duplication, removal, oral communication,
disclosure, transfer or any other unauthorized use thereof,
unless the Company gives its prior written consent to such use.

     8.   New Developments.  Employee will promptly (and in any
event upon the request of the Company) disclose to the Company
any and all improvements, inventions, developments, discoveries,
innovations, systems, techniques, ideas, processes, programs and
other things which may be of assistance or benefit to the
Company, whether or not patentable or otherwise legally
protectable, relating to or arising out of any developments,
services or products of, or pertaining in any manner to, any
aspect of the business of the Company, and made or conceived of
by Employee, alone or with others, during the Employment Period
(collectively the "New Developments").  All New Developments
shall be and remain the sole and exclusive property of the
Company and upon the request of the Company, and without further
compensation, Employee will do all lawful things reasonably
necessary to ensure the Company's ownership of such New
Developments, including, without limitation, the execution of
documents assigning and transferring to the Company or its
assigns all of Employee's right, title and interest in and to
such New Developments, and the rendering of assistance and the
execution of all documents required to enable the Company to file
and obtain patents, trademark or trade name registrations in the
United States and foreign countries on any of such New
Developments and otherwise to register or legally protect its
rights thereto.

     9.   Surrender of Material Upon Termination.  Upon
termination of the Employment Period, for whatever reason,
Employee will immediately surrender to the Company all of the
property and other things of value in his possession, or in the
possession of any person or entity under his control, relating
directly or indirectly to the business of the Company, including,
without limitation, all personal notes, drawings, manuals,
documents, photographs or the like, including copies thereof,
relating directly or indirectly to any Confidential Information
or New Developments.

     10.  Common Law of Torts or Trade Secrets.  Nothing in this
Agreement shall be construed to limit or negate the common law of
torts or trade secrets where such common law provides the Company
with broader protection than the protection provided by this
Agreement.

     l1.  Expense Reimbursement.  The Company will reimburse
Employee for his out-of-pocket expenses reasonably incurred in
connection with the performance of his services hereunder,
subject to the submission of documentation substantiating such
expenses and other compliance with the Company's policies
regarding expense reimbursement.

     12.  Employee's Representation.  Employee hereby represents
and warrants that he is not a party to any agreement (whether
written or oral) with, and he does not have any obligations to,
any person or entity other than the Company that are inconsistent
with or would be breached or violated by the Employee's entering
into this Agreement or providing services to the Company as
contemplated hereby, including, without limitation, obligations
and restrictions relating to noncompetition, nonsolicitation,
confidentiality, intellectual property, or the like.

     13.  Severability.  The invalidity or unenforceability of
any provision of this Agreement shall not affect or impair the
validity or enforceability of any other provision, and this
Agreement shall be construed as if such invalid or unenforceable
provision were not contained herein.  Notwithstanding the
preceding sentence, if any arbitrator or court of competent
jurisdiction shall determine that any geographic or time
restraint provided in this Agreement is too broad as to the area
or time covered, such restraint may be reduced to whatever extent
the court deems reasonable and such restraint may be enforced as
reduced.

     14.  Notice.  All notices under this Agreement shall be in
writing and any notice shall be considered to be given and
received in all respects on the day it is personally delivered or
deposited in the United States mail, first class, postage
prepaid, addressed as follows (or to such other address as may be
designated by one party to the other by notice duly given);
provided that written notice given in any other manner will
nonetheless be effective upon its actual receipt by the person or
entity entitled to receive it hereunder:

          If to the Company:

          Roundy's, Inc.
          23000 Roundy Drive
          Pewaukee, WI 53072
          Attn:  President

               with a copy to:

               Whyte Hirschboeck Dudek S.C.
               111 East Wisconsin Avenue
               Milwaukee, WI 53202
               Attn: John F. Emanuel

          If to Employee:

                    at the then current address for Employee as
                    contained in the Company's employment records

     15.  Exclusive Jurisdiction; Attorneys' Fees.

          (a)  Each of the parties hereby (i) irrevocably
consents and agrees that any action or proceeding arising under,
or in connection with, this Agreement shall be brought
exclusively in any federal or state court within Milwaukee
County, State of Wisconsin, and any court to which an appeal may
be taken in any such litigation, and (ii) by execution and
delivery of this Agreement, irrevocably submits to, and accepts,
with respect to any such action or proceeding, the jurisdiction
of the aforesaid courts, and irrevocably waives any and all
rights such party may now or hereafter have to object to such
jurisdiction under the constitution or laws of the State of
Wisconsin or the Constitution or laws of the United States of
America or otherwise.

          (b)  In any action hereunder or to enforce any
provision of this Agreement, the prevailing party shall be
reimbursed by the other party for all reasonable legal fees and
expenses, if any, reasonably incurred by such party in the
enforcement of its or his rights under any provisions of this
Agreement.

     16.  Waiver of Jury Trial.  THE PARTIES HERETO HEREBY
VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE
(WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG
ANY OF THE PARTIES ARISING OUT OF OR IN ANY WAY RELATED TO THIS
AGREEMENT OR THE EMPLOYMENT RELATIONSHIP CONTEMPLATED HEREBY.

     17.  Waiver.  A waiver by a party of any breach by the other
party of any provision of this Agreement shall not be deemed to
be a waiver by such first party of any subsequent breach.

     18.  Assignment.  Employee may not assign, pledge or
encumber this Agreement or any interest herein.

     19.  Binding Effect.  This Agreement shall be binding upon
and inure to the benefit of the parties hereto, the Company's
successors and permitted assigns and Employee's heirs and legal
representatives.

     20.  Amendment.  This Agreement may be amended only by a
written instrument executed by the parties hereto or their
respective successors, assigns, heirs or legal representatives,
as applicable.

     21.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of
Wisconsin.

     IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the date first above written.

                              ROUNDY'S, INC.

                              By:  GERALD F. LESTINA
                                   ---------------------------
                                   Gerald F. Lestina, President
                                   and Chief Executive Officer

                                   GARY L. FRYDA
                                   --------------
                                   Gary L. Fryda ("Employee")Amendment Seven and Consent and Waiver
                                       To
                                Credit Agreement

         THIS AMENDMENT  SEVEN AND CONSENT AND WAIVER is dated as of October 13,
1999 and is made in respect of the Credit Agreement dated as of July 12, 1996 as
amended  and in  effect  immediately  prior  to the  date  hereof  (the  "Credit
Agreement")  by and among PSC SCANNING,  INC., a Delaware  corporation  formerly
known as SpectraScan, Inc., which is the successor by merger to PSC Acquisition,
Inc., (the "Borrower"),  PSC INC. ("PSC"),  the financial  institutions party to
the Credit Agreement (the "Lender Parties"), FLEET NATIONAL BANK (formerly known
as Fleet Bank) as the  "Initial  Issuing  Bank",  and FLEET  NATIONAL  BANK,  as
administrative agent (the "Administrative Agent") under the Credit Agreement.

                            Statement of the Premises

         The Borrower, PSC, the Lender Parties, the Initial Issuing Bank and the
Administrative  Agent have  previously  entered  into the Credit  Agreement  and
various  amendments  thereto from time to time.  The Borrower has requested that
the Lender Parties  consent to the  acquisition of the assets of GEO Labs,  Inc.
and GAP  Technologies,  Inc.  (collectively,  the  "GEO/GAP  Acquisition")  and,
further, that the Lender Parties waive and amend certain covenants in the Credit
Agreement as applied to the GEO/GAP Acquisition and certain elements thereof.

                           Statement of Consideration

         Accordingly,  in consideration of the premises, and under the authority
of Section  5-1103 of the New York General  Obligations  Law, the parties hereto
agree as follows.

                                    Agreement

1. Defined Terms. The terms "this Agreement", "hereunder" and similar references
in the  Credit  Agreement  shall be deemed to refer to the Credit  Agreement  as
amended hereby.  Capitalized  terms used and not otherwise  defined herein shall
have the meanings ascribed to such terms in the Credit Agreement.

2. Amendment.  Effective as of October 13, 1999, the Credit  Agreement is hereby
amended as follows:

         2.1  Section  1.01 of the  Credit  Agreement  is  amended by adding the
definitions  of "GEO/GAP  Acquisition"  and  "GEO/GAP  Term Sheet"  thereto,  as
follows:

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<PAGE>

          "GEO/GAP  Acquisition" means the Transaction  described in the GEO/GAP
     Term Sheet.

          "GEO/GAP Term Sheet" means the Term Sheet annexed as Exhibit A hereto.

         2.2 Section  1.01 of the Credit  Agreement  is amended by changing  the
definitions  of "Capital  Expenditures"  and "Debt" to read in their entirety as
follows (new, additional language being in bold type):

                           "Capital  Expenditures" means, for any Person for any
                  period,  the  sum  of  all  expenditures  made,   directly  or
                  indirectly,  by such Person or any of its Subsidiaries  during
                  such period for  equipment,  fixed  assets,  real  property or
                  improvements, or for replacements or substitutions therefor or
                  additions thereto,  that have been or should be, in accordance
                  with  GAAP,  reflected  as  additions  to  property,  plant or
                  equipment  on a  Consolidated  balance  sheet of such  Person;
                  provided however that for the purposes of computing compliance
                  with Section 5.04(a) of this Agreement,  Capital  Expenditures
                  shall not be deemed to include  those  expenditures  which are
                  funded by Debt and which are made to  accomplish  the  GEO/GAP
                  Acquisition.

                           "Debt" of any Person means, without duplication,  (a)
                  all  indebtedness of such Person for borrowed  money,  (b) all
                  Obligations of such Person for the deferred  purchase price of
                  property or services (other than trade payables not overdue by
                  more  than 60 days  incurred  in the  ordinary  course of such
                  Person's  business and trade payables that are being contested
                  in good faith),  (c) all Obligations of such Person  evidenced
                  by notes, bonds, debentures or other similar instruments,  (d)
                  all  Obligations  of such Person  created or arising under any
                  conditional  sale or  other  title  retention  agreement  with
                  respect to property  acquired by such Person  (even though the
                  rights  and  remedies  of the  seller  or  lender  under  such
                  agreement in the event of default are limited to  repossession
                  or sale of such property),  (e) all Obligations of such Person
                  as  lessee  under  Capitalized  Leases,  (f) all  Obligations,
                  contingent  or  otherwise,  of such Person  under  acceptance,
                  letter of credit or similar facilities, (g) all Obligations of

                                      -77-
<PAGE>

                  such Person to purchase,  redeem, retire, defease or otherwise
                  make any payment in respect of any  capital  stock of or other
                  ownership  or  profit  interest  in such  Person  or any other
                  Person or any  warrants,  rights or options  to  acquire  such
                  capital  stock,  valued,  in the case of Redeemable  Preferred
                  Stock,   at  the  greater  of  its  voluntary  or  involuntary
                  liquidation preference plus accrued and unpaid dividends,  (h)
                  all Obligations of such Person in respect of Hedge Agreements,
                  (i) all Debt of others  referred to in clauses (a) through (h)
                  above or clause (j) below guaranteed directly or indirectly in
                  any manner by such Person, or in effect guaranteed directly or
                  indirectly  by such Person  through an agreement (i) to pay or
                  purchase  such  Debt or to  advance  or  supply  funds for the
                  payment or purchase of such Debt,  (ii) to  purchase,  sell or
                  lease (as lessee or lessor)  property,  or to purchase or sell
                  services,  primarily for the purpose of enabling the debtor to
                  make payment of such Debt or to assure the holder of such Debt
                  against loss,  (iii) to supply funds to or in any other manner
                  invest  in the  debtor  (including  any  agreement  to pay for
                  property or services  irrespective of whether such property is
                  received or such services are  rendered) or (iv)  otherwise to
                  assure a creditor  against loss,  and (j) all Debt referred to
                  in clauses (a) through (i) above of another  Person secured by
                  (or for which the holder of such Debt has an  existing  right,
                  contingent  or  otherwise,  to be  secured  by)  any  Lien  on
                  property (including, without limitation, accounts and contract
                  rights) owned by such Person,  even though such Person has not
                  assumed  or  become  liable  for the  payment  of  such  Debt;
                  provided  however that for the purposes of Section  5.02(b) of
                  the  Agreement,  Debt shall not be deemed to  include  amounts
                  payable to George A. Plesko pursuant to and in accordance with
                  the GEO/GAP Term Sheet.

         2.3 Section  5.02(d) of the Credit  Agreement  is amended by making the
following correction in clause (v) thereof: the reference to "Section 5.01(f)(i)
and (vii)" is changed to "Section 5.02(f)(i) and (vii)".

3. Consent and Waiver.  The  undersigned  Lender  Parties  hereby consent to the
GEO/GAP  Acquisition and waive the right to deem the GEO/GAP Acquisition to be a
violation  of Section  5.02(b) of the Credit  Agreement or a Default or Event of
Default  under  the  Credit  Agreement  by  reason  of the  GEO/GAP  Acquisition
resulting in  noncompliance  with such Sections;  provided and on the conditions
that:  (1) the  GEO/GAP  Acquisition  is made  within the terms set forth on the
GEO/GAP  Term  Sheet,  (2)  Borrower  shall be in  compliance  with  all  terms,
conditions and covenants of the Credit Agreement, as amended hereby, immediately
after giving effect to the GEO/GAP  Acquisition,  and (3)  immediately  upon the
consummation  of the GEO/GAP  Acquisition,  the chief  financial  officer of the
Borrower shall deliver to the  Administrative  Agent a certificate  stating that
the  Borrower  has complied  with and remains in  compliance  with each of these
conditions.

4. Effect on the Credit  Agreement.  Except as specifically  amended above,  the
Credit  Agreement  shall remain in full force and effect and is hereby  ratified
and confirmed.  The Borrower and PSC each  acknowledge and agree that the Credit
Agreement (as amended by this  Amendment)  and each other Loan Document to which
each is a party is in full force and effect, that its Obligations thereunder and
under this Amendment are its legal,  valid and binding  obligations  enforceable
against  it in  accordance  with the terms  thereof  and  hereof,  and it has no
defense,  whether legal or equitable,  setoff or counterclaim to the payment and
performance of such Obligations.

                                      -78-
<PAGE>

5.  Expenses.  The  Borrower  shall pay  promptly  when  billed  all  reasonable
out-of-pocket  expenses of each of the Lender Parties and the Agent  (including,
but not limited to,  reasonable  fees,  charges and  disbursements of counsel to
each  of the  Lender  Parties  and  the  Agent)  incident  to  the  preparation,
negotiation,  execution,  administration  and  enforcement of the this Amendment
Seven and  Consent and Waiver and all  documents  and  transactions  required in
connection with this Amendment Seven and Consent and Waiver.

6. Execution in Counterparts and Effectiveness. This Amendment Seven and Consent
and Waiver may be executed in any number of  counterparts  and by the  different
parties hereto on separate counterparts,  each of which shall be deemed to be an
original,  and all of which taken  together  shall  constitute  one and the same
Amendment  Seven and  Consent  and  Waiver,  regardless  of  whether  or not the
execution by all parties shall appear on any single counterpart.  Delivery of an
executed counterpart of a signature page to this Amendment Seven and Consent and
Waiver by  telecopier  shall be  effective  as delivery  of a manually  executed
counterpart of this Amendment Seven and Consent and Waiver. This Amendment Seven
and Consent and Waiver will become effective (subject to the terms of Sections 3
and 4 above) when the Administrative  Agent shall have received  counterparts of
this Amendment Seven and Consent and Waiver which, when taken together, bear the
signatures  of the  Borrower,  PSC,  the  Administrative  Agent  and  all of the
Required Lenders.

7.  Applicable  Law.  Pursuant  to  Section  5-1401  of  the  New  York  General
Obligations  Law, the laws of the State of New York shall  govern the  validity,
construction, enforcement and interpretation of this Amendment Seven and Consent
and Waiver in whole without regard to any rules of conflicts-of-laws  that would
require the application of the laws of any jurisdiction  other than the State of
New York.

8. Headings. The headings of this Amendment Seven and Consent and Waiver are for
the  purposes  of  reference  only and shall not limit or  otherwise  affect the
meanings hereof.

         IN WITNESS  WHEREOF,  the parties  hereto have caused a counterpart  of
this  Amendment  Seven and Consent and Waiver to be executed  and  delivered  by
their respective representatives thereunto duly authorized, as of the date first
above written.

PSC INC.                                    PSC SCANNING, INC.

By:                                         By:
Title:   Vice President, Chief Financial    Title:   Vice President and Chief
         Officer & Treasurer                         Financial Officer

                                      -79-
<PAGE>

FLEET NATIONAL BANK, as Initial             FLEET NATIONAL BANK, as
Issuing Bank                                Administrative Agent

By:                                         By:
Title:                                      Title:

FLEET NATIONAL BANK                         FIRST UNION NATIONAL BANK

By:                                         By:
Title:                                      Title:

MANUFACTURERS & TRADERS                     KEY BANK NATIONAL
TRUST COMPANY                               ASSOCIATION

By:                                         By:
Title:                                      Title:

THE CHASE MANHATTAN BANK

By:

Title:

                                      -80-

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